##  **CHAPTER 3 - COMMITMENTS AND OBLIGATIONS** {#chapter-3---commitments-and-obligations .unnumbered}

**3-1. [Commitments.]{.underline}**

A.  **[Definition.]{.underline}** The "commitment" of funds is a concept
    that sets aside funds for anticipated needs, to assure the
    availability of funds before entering into a legally binding
    obligation that will require an expenditure of funds. Essentially, a
    commitment is the earmarking of funds that will be used in the
    future for the purchase of goods or services, the award of grants or
    subsidies, or other authorized purposes. As pre-obligations,
    commitments are internal actions that are not legally binding.
    However, for administrative control of funds purposes commitments
    are treated as reductions of budget availability. Except as noted
    below, the term "commitment" is used to describe the pre-obligation
    of funds and includes, and replaces, the term "reservation"
    previously used some HUD programs.

> [NOTE:]{.underline} "The term "commitment" is also used with reference
> to a loan guarantee commitment and a mortgage-backed securities
> commitment, which differ from an administrative control of funds
> commitment. A loan guarantee commitment is a legally binding agreement
> to make a loan guarantee when the borrower, the lender, or any other
> party to the guarantee agreement fulfills specified conditions.

B.  **[Authority.]{.underline}** *[The Administrative Control of Funds:
    Policies and Procedures Handbook, Appendix 2 -- Summary Listing of
    Authorities Applicable to HUD Fund Control Directives]{.underline}*

C.  **[Policy.]{.underline}** HUD's administrative control of funds
    policy requires: processing and recording of commitments for all HUD
    funding activity; use of the HUD 718, Funds Commitment Form, to
    approve the commitment of program funds; and the HUD Form No. 720,
    Request for Contract Services, to approve funds commitment for
    procurement actions unless otherwise approved by the CFO. Each HUD
    718, Funds Commitment Form must contain the authorized approval
    signatures as stipulated in the Allotment Holder's Funds Control
    Plan; must cite the source of funds, budget fiscal year, budget
    organization code, cost organization code, budget object code, and a
    sequentially numbered identifier before the requested funds can be
    committed. When a machine-readable file is used to request funds
    commitment for multiple actions at a time, a signed paper copy of
    the HUD 718, Funds Commitment Form along with summary level
    information associated with the automated file, must be converted to
    electronic form and forwarded with the machine-readable file. Fund
    commitments shall be recorded in a timely manner coincident with the
    occurrence of the events from which they originate. Commitments must
    be recorded against an approved budget using the required
    classification and dimensions of the applicable budget structure,
    and also using a specific vendor code, if applicable and known at
    the time of issuance. Commitments that are recorded and remain
    unobligated at fiscal year-end are automatically reversed prior to
    the fiscal year-end closing process and become part of the carryover
    balance that needs to be brought forward to the apportionment
    request for the new fiscal year. Valid commitments for unexpired
    multi-year and no-year funds must be reestablished against the new
    fiscal year apportionment. OCFO will notify allotment holders of
    commitment levels reversed at year-end for inclusion inn their
    apportionment request. OCFO will automatically reestablish the
    commitments and notify the applicable allotment holder(s).
    Commitment amounts that are not obligated at fiscal year-end for
    expired annual and multi-year funds are no longer valid commitments,
    but remain part of the un-obligated balance. This unobligated
    balance is available only for upward adjustments of previously
    recorded obligations of the respective expired accounts for a period
    of five years after the year of expiration.

D.  **[Roles and Responsibilities.]{.underline}** This section describes
    the roles and responsibilities for key personnel involved in the
    Department's disbursement process.

    1.  **The Chief Financial Officer (CFO)** monitors the overall
        budget process; requires and approves funds control plans;
        notifies allotment holders of commitment levels reversed at
        year-end for inclusion inn their apportionment request; and
        automatically reestablishes commitments based on the new fiscal
        year's approved apportionment.

-   The Assistant CFO for Accounting reviews commitment documents for
    compliances with the ACF Handbook requirements; assures the
    availability of funds before certifying and posting to the
    appropriate funds control system; and provides budgetary status of
    funds reports to allotment holders.

-   The Assistant CFO for Systems provides financial management systems
    in support of funds control and training for system users; reverses
    commitments at year-end and notifies allotment holder for inclusion
    in their apportionment request; and automatically reestablishes
    commitments based on the new fiscal years approved apportionment and
    notifies the applicable allotment holder(s).

    1.  **The Allotment Holder** bears overall responsibility for all
        funds allotted to them; designates the Funds Control Officer and
        Operating Budget Holder; plans and structures new programs or
        activities to provide for the administrative control of funds;
        develops and implements procedures to be followed by
        Headquarters and Field personnel in support of funds control;
        and develops and provides funds control plans; and a current
        listing of officials authorized to process and to approve
        commitments.

    2.  **The Funds Control Officer** supports the allotment holder and
        the CFO in the development, maintenance, implementation and
        enforcement of funds controls plans and underlying systems and
        processes; maintains complete, accurate and current records of
        request processed for commitments funds; serves as or designates
        a Funds Verification Officer to accurately certify the
        availability of funds in accordance with the ACF Handbook;
        manages and controls spending in accordance with the
        administrative operating budget plan. Require timely submission
        of commitment documents to the CFO Accounting Center for
        processing in the funds control subsystems.

    3.  **The Chief Procurement Officer** is responsible for assuring
        the availability of funds in HUDCAPS or by a hard copy HUD 718,
        Reservation of Funds, prior to entering into procurement
        obligations.

    4.  **Program Managers** are responsible for regularly reviewing
        status of funds reports that provide financial information on
        funds availability (committed and uncommitted) for their
        respective program areas.

E.  **[Document ID and Numbering.]{.underline}** A unique document ID is
    assigned to all commitment documents and is referenced when
    recording an associated obligation. Unless exempted by the Chief
    Financial Officer, the commitment document coding structure should
    conform to the structure established for recording commitments in
    HUDCAPS, to provide consistency across the Department and foster
    future systems integration efforts.

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1.  The Document ID is identified by: a transaction code (*RQ* for a
    Requisition Document, or *RV* for a Service Requisition for Section
    8); a SEC1 code (the division code of the office authorized to enter
    the transaction); and a document number. Refer to instructions
    issued annually at fiscal year-end, by the Systems Development and
    Maintenance Division, which prescribe current HUDCAPS Document
    Processing requirements. Commitment documents interfaced from other
    systems into HUDCAPS have their own unique identifier.

2.  The document number consist of the following 3 fields:

-   The transaction code of the document being processed;

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-   A four position alphanumeric field for the division code of the
    [office]{.underline} authorized to enter the transaction, which is
    also referred to as the SEC1 code (Security Level 1); and

-   An eleven position alphanumeric (automatically assigned for RQ
    documents, but manually entered for RV documents).

3.  Examples of the complete Document ID structure are as follows:

**Administrative Fund Commitment (RQ document):**

> Document Number
>
> [RQ]{.underline} [ADMN]{.underline} [ARS]{.underline} [0]{.underline}
> [0000001]{.underline}
>
> Transaction Sec1 Organization Last Digit Sequential
>
> Code Code Code Fiscal Yr Number
>
> Document Number Prefix
>
> The Document ID will appear as: RQ ADMN ARS00000001.
>
> **Section 8 Program Commitment** (RV document):
>
> Document Number
>
> [RV]{.underline} [7APH]{.underline} [MO901]{.underline}
> [VO0035]{.underline}
>
> Transaction Sec1 HA Number Sequential
>
> Code Code Number

The Document ID will appear as: RV 7APH MO901VO0035.

4.  When creating a new Document ID for an administrative fund
    commitment, an automatic document sequence number is applied by
    entering the SEC1 code and document number [prefix]{.underline}
    followed by the pound sign (#). As shown above, enter ADMN ARS0#,
    and press the enter key. The system will automatically replace
    the (#) sign with the next sequential number.

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F.  **[Data Entry.]{.underline}**

> 1\. **Data Entry for Commitments Posted Directly to HUDCAPS**
>
> a\. The source documents used for recording Administrative Fund
> commitments directly into HUDCAPS are:

-   Form HUD 10.4, Requisition for Supplies, Equipment, Forms,
    Publications and Procurement Services.

-   Form HUD 718, Funds Reservation & Contract Authority

> These transactions require the use of a Requisition Document (*RQ*
> document). The *RQ* document is used to enter the commitment amount by
> the applicable budget and accounting code data and citing the
> following transaction type:

  --------------------------------------------- -------------------------
  Transaction                                   Trans Type

  RQ                                            01
  --------------------------------------------- -------------------------

b.  The source documents used for recording Section 8 Program
    commitments directly into HUDCAPS are:

-   Notification/Award Letter.

-   Approved Application (form HUD-52515).

-   Reservation Pricing Function spreadsheet.

-   List of Funds or Assignment of Funds from Headquarters.

> These transactions require the use of a Service Requisition (*RV*
> document). The *RV* document is used to enter the commitment amount by
> the applicable Funding Increment Number, Program Type, Funding Action,
> Housing Authority Number, the required accounting code data, and the
> following transaction type.

  --------------------------------------------- -------------------------
  Transaction                                   Trans Type

  RV                                            01
  --------------------------------------------- -------------------------

> A FMC authorizing official must approve the *RV* document on-line in
> HUDCAPS before it can be processed.
>
> 2\. **Data Entry for Commitments Posted Directly to HPS and SPS**
> Refer to the HPS or SPS Users Manual on the HUDweb for data entry
> instructions for processing commitments in HPS and SPS. Commitment
> transactions are automatically interfaced with HUDCAPS by the on-line
> HPS and SPS Interface Programs and processed into HUDCAPS as *RH*
> documents (HPS Requisitions) or *RS* documents (SPS Requisitions). See
> additional information about HPS and SPS obligations on page 3-18.
>
> 3\. **Data Entry for Commitments Posted Directly to PAS** Refer to the
> PAS User       Manual for data entry instructions for processing
> commitments in PAS.       Commitment transactions are automatically
> interfaced with HUDCAPS by the       nightly PAS to HUDCAPS Interface
> Program and processed in HUDCAPS as *IP*       documents (PAS to
> HUDCAPS standard voucher transactions).

**3-2. [Obligations.]{.underline}**

A.  **[Definition.]{.underline}** An obligation is a legally binding
    agreement that will require an expenditure of funds. Examples of HUD
    obligations generally include purchase orders, contract and grant
    awards, loan guarantees, interagency agreements, and other
    agreements that will require an expenditure of funds during the
    current or future period.

B.  **[Authority.]{.underline}** *[The Administrative Control of Funds:
    Policies and Procedures Handbook Appendix No.]{.underline} 2 [--
    Summary Listing of Authorities Applicable to HUD Fund Control
    Directives.]{.underline}*

C.  **[Policy.]{.underline}** All obligations of budgetary resources
    shall be for the purpose authorized by law, within amounts
    authorized, executed before the end of the period of availability of
    the appropriation, and supported by documentary evidence that is in
    writing and approved by a duly authorized official. All obligations
    must be recorded: in the funds control systems in a timely manner
    coincident with the occurrence of the events from which they
    originate; against an approved budget with the required
    classification and dimensions of the applicable budget structure;
    with a specific vendor code; and must reference any previously
    recorded funds Commitment for the obligation. The process for
    recording obligations should be documented in the applicable funds
    control plan. If this process includes using a machine readable
    file, submitted to the CFO/Financial Systems Maintenance to record
    obligation of funds for multiple actions at a time, a signed paper
    copy of a certification for obligations letter, signed by the
    allotment holder or designee, as described in the funds control plan
    must be attached to the file of obligations to process before that
    file is processed. The CFO will maintain a listing of the allotment
    holders, with the point(s) of obligation of each HUD funded activity
    and post this list at [**hud@work**](mailto:hud@work.s) on the OCFO
    web site. The program areas and the CFO will maintain current funds
    control plans. Any processing requests that deviate from the points
    of obligation and funds control plan must be approved through
    written authorization from both the allotment holder and the issuer
    of the allotment. *[See the ACF Handbook: Chapter 3, Processing
    Commitments, Obligations and Expenditures]{.underline}* for
    additional requirements.

D.  **[Roles and Responsibilities.]{.underline}** This section describes
    the roles and responsibilities for key personnel involved in the
    Department's obligation process:

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1.  **The Chief Financial Officer (CFO)** coordinates the review and
    confirmation of unliquidated obligations; promptly records all
    properly authorized obligation documents in the appropriate budget
    execution subsystem; and provides management reports on the status
    of budgetary resources and unexpended balances.

2.  **Allotment Holder** designates the Funds Control Officer and
    Operating Budget Holder; plans and structures new programs or
    activities to provide for administrative control of funds; develops
    and implements procedures to be followed by Headquarters and Field
    personnel in support of funds control; and provides a current
    listing of officials authorized to process and to approve
    obligations.

3.  **The Funds Control Officer** develops, maintains, implements and
    enforces the funds controls plans and underlying systems and
    processes; maintains complete, accurate and current records of
    request processed for funds Commitment; serves as or designates a
    Funds Verification Officer to accurately certify the availability of
    funds; manages and controls spending in accordance with the
    administrative operating budget plan. Requires timely submission of
    obligation documents to the CFO Accounting Center for processing in
    the funds control subsystems.

4.  **The Chief Procurement Officer** assures the availability of
    funding in HUDCAPS prior to entering into procurement obligations by
    reviewing the HUDCAPS/HPS interface. Requires an approved HUD 718,
    Funds Commitment Form for programs not managed in HUDCAPS; and
    timely transmits hard copy of all obligation documents to the OCFO
    Accounting Center for recording in the appropriate financial
    subsystems.

5.  **Program Manager** reviews unliquidated obligation reports;
    certifies the validity of all outstanding obligations to the
    Allotment Holder; takes appropriate actions to deobligate all
    invalid obligations; and timely transmits deobligation documents to
    the OCFO Accounting Center for processing in the funds control
    subsystems.

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E.  **[Document ID and Numbering.]{.underline}**

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1.  A unique document ID is assigned to all obligating documents for
    HUDCAPS processing. Documents are identified by: a transaction code
    (example, M1 for Miscellaneous Order Without Reference Document); a
    SEC1 code (the division code of the office authorized to enter the
    transaction); and a document number.

2.  The Document number consist of the following three fields:

-   The transaction code for the document being processed;

-   A four position alphanumeric field for the division code of the
    [office]{.underline} authorized to enter the transaction, which is
    referred to as the SEC1 code (Security Level 1); and

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-   An eleven position alphanumeric

3.  An example of the complete Document ID is structured as follows:

###  Document Number

[M1]{.underline} [ADMN]{.underline} [AMT]{.underline} [05]{.underline}
[B]{.underline} [000001]{.underline}

Transaction Sec1 Organization Last Two Digits Doc Sequential or Pre-

Code Code Code of Fiscal Yr Type Printed Number

Document Number Prefix

The Document ID will appear as: M1 ADMN AMTB000001.

4.  When creating a new Document ID, the automatic document sequence
    number is applied by entering the SEC1 code and document number
    [prefix]{.underline} followed by the pound sign (#), for example:
    AMT0B#, and press enter. A pre-printed number (PPN) from printing
    and visual arts obligating documents must be entered manually, for
    example, a Printing Order (non-GPO) - Field, from Form HUD-50, would
    be: 4EA0P + pre-printed number.

5.  [Document Type Codes]{.underline} for the 11-position document
    number are as follows:

> [Obligating Document]{.underline} [Document Type Code]{.underline}
>
> Bankcard B
>
> Fedstrip GSA Supply F
>
> Graphic Arts - HQ G
>
> GSA Supplies/Customer Service Center SUP
>
> Motorpool MP
>
> Printing Order (non-GPO) - Field P
>
> Printing Order (GPO) - Field P
>
> Printing Order - HQ P
>
> Purchase Order - Field Obligation P
>
> Purchase Order - Hq Obligation P
>
> Reimbursable Work Order - HQ WA

Reimbursable Work Order - Field WA

Reimb Order - Info Technology R

Telephone IPAC TEL

Training Order T

6.  Example document numbering structure for selected obligating
    documents are as follows:

> Trans SEC1

[Obligating Documents]{.underline} [Code]{.underline} [Code]{.underline}
[Document Number]{.underline}

Bankcard M1 [1/]{.underline} Org code + 05 + B + \#

Fedstrip GSA Supply M1 [1/]{.underline} Org code + 05 + F + Ticket No.

Graphic Arts - HQ PN [1/]{.underline} ZZ + 05 + G + HUD-20A

GSA Supplies/Customer M1 [1/]{.underline} Org code + 05 + SUP +

Service Center Customer Service BOAC No.

Motorpool M1 [1/]{.underline} Org code + 05 + MP + \#

> Printing Order (non-GPO)- PN [1/]{.underline} Org code + 05 + P +

Field Form HUD-50

Printing Order (GPO) - PN [1/]{.underline} Org code + 05 + P +

Field Form HUD-2511

Printing Order - HQ PN [1/]{.underline} ZZ + 05 + P +

Form HUD-20

Purchase Order/Contract MO [1/]{.underline} OIG (Truncated BPD#)

Reservation

Purchase Order/Contract RQ [1/]{.underline} OIG use only

Obligation

> Reimbursable Work Order- WA [1/]{.underline} Org code + 05 + WA +

Field Work Order

Reimbursable Work Order- WA [1/]{.underline} H + 05 + WA +

> Headquarters Work Order

Reimbursable Order - M1 [1/]{.underline} Org code + 05 + R + \#

Information Technology

Telephone IPAC M1 [1/]{.underline} Org code + 05 + TEL + \#

> Training Order RT [1/]{.underline} Org code + 05 + T + \#
>
> Travel Order TX [1]{.underline}/ Org Code + 05 + \#
>
> Relocation
>
> [1/]{.underline} The SEC1 Code for the respective organization.

F.  **[Obligation Recorded Directly to HUDCAPS.]{.underline}**

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1.  **[Personal Services and Benefits.]{.underline}**

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a.  **[Definition]{.underline}.** Obligations for personal services and
    benefits include: 1) charges based on salaries and wages, such as
    living and quarters allowances, equalization allowances, employer's
    share of contributions to the retirement fund, thrift savings plan,
    premiums for health and life insurance, FICA taxes, and severance
    pay; 2) relocation benefits in the form of authorized reimbursable
    expenses to employees for real estate, temporary subsistence, and
    other expenses incident to dislocation at the request of the Federal
    Government; 3) other allowances, such as uniform allowances and
    incentive awards; 4) annual leave; and 5) unemployment compensation
    payments to the Department of Labor for former Federal employees.

b.  **[Process.]{.underline}** The process for making and recording
    obligations is described in the applicable funds control plan, which
    can be obtained from applicable funds control officer (for a list of
    such officers, see http://hudweb.hud.gov/po/f/obligation.pdf)."

c.  **[Roles and Responsibilities.]{.underline}**

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1)  The Office of Systems Development and Maintenance Division (OSDM) is
    responsible for coordinating the timely receipt and processing of
    biweekly payroll data from the National Finance Center and related
    monthly payroll accruals and reversals through the Payroll Interface
    Program.

2)  The CFO Accounting Center (Fort Worth) is responsible for processing
    and recording all automated interagency bills received from the
    Treasury Intra-governmental Payment and Collection (IPAC) System
    which includes unemployment compensation payments to the Department
    of Labor; and for ensuring that all IPAC billings are properly
    approved by officially designated authorizing officials.

3)  CFO Accounting Center (Fort Worth)/National Relocation Center is
    responsible for recording obligations for relocation benefits
    incident to dislocation of employees at the request of the Federal
    Government; and for ensuring that all relocation benefits are
    properly approved by officially designated authorizing officials.

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d.  **[Data Entry.]{.underline}**

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1)  **Data Entry for Personal Services and Benefits.** Obligation
    transactions for personal services and benefits are automatically
    generated by the Payroll Interface Program and processed as *PY*
    documents in HUDCAPS, except for unemployment compensation payments
    to the Department of Labor for former Federal employees, and
    relocation benefits.

> 2\) **Data Entry for Unemployment Compensation.** The source document
> for recording obligations for unemployment compensation payments to
> the Department of Labor is the automated interagency bill from the
> Treasury Intra-governmental Payment and Collection (IPAC) System.

2.  **[Travel and Transportation.]{.underline}**

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a.  **[Definition.]{.underline}** Obligations for travel and
    transportation include amounts for expenses incurred for official
    temporary duty travel, local travel, and travel incident to
    relocation of an employee. Specifics of travel and relocation
    allowances are promulgated in the Federal Travel Regulation (FTR).
    Pending publication of a separate Handbook Volume for HUD Travel
    Regulations, an internet link to the FTR is accessible through the
    HUDweb.

b.  [**Process**.]{.underline} The process for making and recording
    obligations is described in the applicable funds control plan, which
    can be obtained from applicable funds control officer (for a list of
    such officers, see http://hudweb.hud.gov/po/f/obligation.pdf).

#  {#section .unnumbered}

# **Roles and Responsibilities.**

1)  The [Chief Financial Officer]{.underline} is responsible for
    establishing and implementing Departmental travel policies within
    the guidelines promulgated by the Federal Travel Regulations (FTR).

2)  Pending department-wide implementation of the HUD Travel Management
    System (HTMS), the [(Operating Budget Holder]{.underline}**)** is
    responsible for processing and recording, in HUDCAPS, obligations
    for all authorized travel within HUD including, temporary duty
    travel, local travel, and relocation travel; and for ensuring that
    all travel orders and travel vouchers are properly approved by
    officially designated authorizing officials. Authorized users of
    HTMS are responsible for processing and recording obligations and
    payments for their own temporary duty travel and local travel
    through HTMS.

# d. **Data Entry.** Detail data entry guidance will be provided in a separate Volume of this Handbook entitled HUD Travel Regulations. In summary, obligations for authorized travel are processed and recorded as follows: {#d.-data-entry.-detail-data-entry-guidance-will-be-provided-in-a-separate-volume-of-this-handbook-entitled-hud-travel-regulations.-in-summary-obligations-for-authorized-travel-are-processed-and-recorded-as-follows .unnumbered}

1)  Obligation documents for temporary duty travel (TDY) and local
    travel expenses (except fares for common carriers) are entered
    manually into HUDCAPS as Travel Orders (TO document for TDY travel)
    and Local Travel Vouchers (LV document for local travel expenses).

2)  HTMS real time interface records obligation documents for temporary
    duty travel (TDY) and local travel expenses are automatically
    generated by the HUD Travel Management System as a HTMS Travel
    Order/Advance (EA document), and HTMS Local Travel Voucher (EL
    document) for processing in HUDCAPS.

3)  Obligations for relocation travel are entered manually into HUDCAPS
    as PCS Travel Orders (TX document). Refer to the National Relocation
    Center on the HUDweb for guidance related to relocation benefits.
    The source documents for recording obligations for relocation
    benefits are the Form HUD-25, Travel Order Request and
    Authorization, and Form HUD-21005, Supplement to Official Travel
    Order, Request and Authorization for Permanent Change of Station.
    The recording of obligations for relocation benefits are requires
    the use of a PCS Travel Orders (TX document).

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3.  **[Rent, Communications and Utilities, Printing and Reproduction,
    Other Contractual Services, Supplies and Materials, and
    Equipment.]{.underline}**

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a.  **[Rent, Communications, and Utilities.]{.underline}**

#  {#section-1 .unnumbered}

# **Definition.** Obligations for rent, communications, and utilities include amounts owed for the use of property and amounts for services received for communications and utilities.

# **Roles and Responsibilities.** Authorized HUDCAPS users for administrative and program offices in headquarters and field locations are responsible for processing and recording all obligating documents for rent, communication and utilities, printing and reproduction, other contractual services, supplies and materials, and equipment, and for ensuring that all obligating documents are properly approved by officially designated authorizing officials.

# **Data Entry.** So as to preclude duplication of procedures, only the required transaction and the related transaction type codes are identified in the following paragraphs.

b.  **[Printing and Reproduction, Other Contractual Services, Supplies
    and Materials, and Equipment.]{.underline}**

# **Definitions.** Obligations include orders placed and contracts awarded for these objects. The long standing rule for obligating an annual appropriation is that the supplies or services ordered are intended to meet a bona fide need of the fiscal year in which the need arises. This rule has been modified. Agencies may enter into a contract for severable services for a period that begins in one fiscal year and ends in the next fiscal year if the contract period does not exceed one year. Severable services are services that are performed on a regular basis over a period of time, such as housekeeping and guard services.

1)  **[Process.]{.underline}** The process for making and recording
    obligations is described in the applicable funds control plan, which
    can be obtained from applicable funds control officer (for a list of
    such officers, see http://hudweb.hud.gov/po/f/obligation.pdf).

# **Roles and Responsibilities.** Authorized HUDCAPS users for administrative and program offices in headquarters and field locations are responsible for processing and recording all obligating documents for rent, communication and utilities, printing and reproduction, other contractual services, supplies and materials, and equipment, and for ensuring that all obligating documents are properly approved by officially designated authorizing officials.

#  {#section-2 .unnumbered}

# **Data Entry.**

a)  [Small Purchases**.**]{.underline} The source document for recording
    small purchases is an approved Optional Form 347, Order for Supplies
    or Services. The recording of small purchase requires the use of a
    Miscellaneous Order Document (MO document). The MO document must
    reference the RQ document used to record the commitment and cite the
    following transaction type:

  --------------------------------------------- -------------------------
  Transaction                                   Trans Type

  Miscellaneous Order (MO)                      01
  --------------------------------------------- -------------------------

b)  [Bankcard Charges, Fedstrip GSA Supplies, GSA Supplies/Customer
    Service Center, Motorpool, Reimbursable Order for Information
    Technology, Telephone Services.]{.underline} The source document for
    recording Bankcard Charges is the monthly account statement with
    authorizing signatures. The recording of these transactions requires
    the use of a Miscellaneous Order Without Reference Document (M1
    document). The M1 document must cite the following transaction type:

  ------------------------------------------------- ---------------------
  Transaction                                       Trans Type

  Miscellaneous Order Without Reference (M1)        01
  ------------------------------------------------- ---------------------

c)  [Graphic Arts and Printing Orders for Headquarters, Printing Orders
    for Field Locations (GPO and non-GPO).]{.underline} The source
    document for recording graphic and printing orders is an approved
    form HUD-20 (Printing Requisition), or HUD-20A (Requisition for
    Visual Arts Service). The recording of these transactions requires
    the use of a Print Order (PN document). The PN document must cite
    the following transaction type:

  ----------------------------------------------- -----------------------
  Transaction                                     Trans Type

  Print Order (PN)                                01
  ----------------------------------------------- -----------------------

d)  [Training Orders.]{.underline} The source document for recording
    training requests is an approved SF-182 (Request, Authorization,
    Agreement, and Certification of Training). The recording of training
    requests requires the use of a Request for Training (RT document).
    The RT document must cite the following transaction type:

  ------------------------------------------------- ---------------------
  Transaction                                       Trans Type

  Request for Training (RT)                         01
  ------------------------------------------------- ---------------------

e)  [Reimbursable Work Orders.]{.underline} The source document for
    recording reimbursable [work orders is an approved documented
    request for reimbursable work. The]{.underline} recording of
    reimbursable work orders requires the use of a Work Order (WA
    document). The WA document must cite the following transaction type:

  -------------------------------------------- --------------------------
  Transaction                                  Trans Type

  Work Order (WA)                              01
  -------------------------------------------- --------------------------

G.  **[Contracts and Interagency Agreements.]{.underline}**

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1.  **Definition.** A legally enforceable written agreement between two
    or more competent parties, whereby goods and/or services are to be
    exchanged for consideration. The contract identifies the goods and
    /or services; the terms of performance; the provider and recipient;
    the time frame of performance; the date of completion; the method of
    payment, and other provisions. An Interagency Agreement is a
    contract between Federal agencies.

2.  **Process.** Procurement actions for administrative Contracts and
    Interagency Agreements will be processed and recorded through the
    HUD Procurement System (HPS). Procurement actions for purchase
    orders and orders against Federal Supply Schedules will be processed
    and recorded in the Small Purchase System (SPS). Reciprocal
    obligation transactions will be automatically generated and entered
    into HUDCAPS as HPS Miscellaneous Order (MH document) or SPS
    Miscellaneous Orders (MS documents) through the HPS and SPS
    interface program with HUDCAPS. Additonal information about making
    and recording obligations can be found in the applicable funds
    control plan, which can be obtained from applicable funds control
    officer (for a list of such officers, see
    http://hudweb.hud.gov/po/f/obligation.pdf)."

3.  **Roles and Responsibilities.** Authorized HUDCAPS users for
    administrative and program offices in headquarters and field
    locations are responsible for processing and recording all
    obligating documents for rent, communication and utilities, printing
    and reproduction, other contractual services, supplies and
    materials, and equipment, and for ensuring that all obligating
    documents are properly approved by officially designated authorizing
    officials.

4.  **Data Entry.** Obligations are recorded in HUDCAPS by on line
    interface with HPS and SPS.

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H.  **[Grants and Subsidies]{.underline}.**

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1.  **Definition.** Federal grants and subsidies are federal assistance
    awards under which payments in cash are made to provide assistance
    for specified purposes. Amounts may be automatically fixed by a
    statutory formula or specified by law, involve an administrative
    determination, or based upon a contract or an agreement.

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2.  **Process.** The process for making and recording obligations is
    described in the applicable funds control plan, which can be
    obtained from applicable funds control officer (for a list of such
    officers, see http://hudweb.hud.gov/po/f/obligation.pdf)."

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2.  **Roles and Responsibilities.** Pending completion of plans to
    integrate the Program Accounting System (PAS) with the core
    financial system (HUDCAPS), the recording of grants and subsidies
    will be divided between PAS and HUDCAPS.

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a.  Obligations for Section 8 subsidies for PIH, Housing, CPD, and
    Homeless programs will be recorded into HUDCAPS. For Housing, there
    are Section 8 obligations that are recorded in both HUDCAPS and PAS.
    Obligations for all other grant and subsidy programs will be
    recorded into PAS with an automated interface between PAS and
    HUDCAPS.

b.  The staff of the Financial Management Center (FMC) is responsible
    for recording Section 8 contract transactions directly into HUDCAPS,
    and FMC Team Leaders, who are Authorizing Officials for PIH Section
    8 programs, are responsible for the timely on-line review, approval,
    and processing of contract documents.

c.  Authorized PAS users at headquarters and the CFO Accounting Center
    (Fort Worth) will be responsible for the timely processing and
    recording of all obligating documents for all other grant and
    subsidy programs into PAS.

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3.  **[Data Entry]{.underline}.** Grants and subsidies are recorded in
    HUDCAPS by the FMC online update and by the PAS to HUDCAPS
    interface.

##### Section 8 FMC Subsidies {#section-8-fmc-subsidies .unnumbered}

-   The source documents used for recording obligations for Section 8
    grants and subsidies directly into HUDCAPS are:

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-   Form HUD-52520-XX, Annual Contributions Contract (ACC), and

-   A Funding Exhibit

> These transactions require the use of a Contract Document (CO
> document). To enter a CO document in HUDCAPS, the "Create New
> Contract" window must be accessed and the Funding Increment Number
> entered. Information on the CO document is automatically brought
> forward from the corresponding Service Requisition (RV document)
> identified by the Funding Increment Number, and cannot be altered. The
> CO document requires no additional data entry. A FMC authorizing
> official must approve the CO document on-line in HUDCAPS before it can
> be processed.

I.  **[Obligations Recorded Directly in Other Systems]{.underline}**
    update the HUDCAPS Budget Subsystem and the General Ledger through
    system interfaces. Grants, Subsidies, Contracts, Interagency
    Agreements, Travel Authorizations and Travel Vouchers Payment
    requests are recorded in these systems.

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1.  **Program Accounting System (PAS).** Program Grants and Subsidies
    are recorded in PAS in accordance with the Program Accounting System
    Handbook, 1970.33-Rev-2. PAS updates HUDCAPS nightly through the PAS
    to HUDCAPS interface.

2.  **HUD Procurement System (HPS), Small Purchase System (SPS).**
    Contracts, Interagency Agreements, and Small purchases are recorded
    in HPS and SPS and interface to update HUDCAPS in real time.

3.  **HUD Travel Management System (HTMS).** Travel Authorizations and
    Travel Voucher Payments are recorded in HTMS and interface to update
    HUDCAPS in real time.