1900.18 REV-1

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CHAPTER 1. REQUISITIONING PROCEDURES FOR GRANTS AND

COOPERATIVE AGREEMENTS - HUD PROCESSING

1-1. PURPOSE. The purpose of this handbook is to prescribe guidance to

be followed by HUD officials responsible for implementing, reviewing

and approving the Standard Form 270, Request for Advance or

Reimbursement, as well as processing instructions to accounting

office personnel. This handbook is to supplement the provisions of

HUD Handbook 1900.6, Processing of Requisitions and Analysis of

Reports Submitted by HUD Grantees.

1-2. POLICY. The
[SF-270](http://contacts.gsa.gov/webforms.nsf/0/A2728A279E35054E85256AA10042F275/$file/sf270.PDF),
Request for Advance or

Reimbursement, shall be

the only requisition form used by recipients not qualifying for

letter of credit funding or direct disbursement electronic funds

transfers to obtain funds from HUD grant programs or cooperative

agreements. HUD will process the SF-270 and request the U.S.

Department of Treasury to mail a check directly to the depositary

designated for credit to the recipient\'s account. Checks will not

be mailed directly to the recipients\' office. The policy contained

in this paragraph is effective for all grants or cooperative

agreements entered into on or after October 1, 1986

1-3. DEFINITION OF GRANT AND COOPERATIVE AGREEMENT. The definition of

the terms \"grant\" and \"cooperative agreement\" as used in this

handbook is as follows:

a\. Grant. A \"grant\" is the legal instrument used reflecting a

relationship between HUD and a state and local government or

other recipient whenever the principal purpose of the

relationship is the transfer of money, property, services, or

anything of value to a recipient in order to accomplish a

public purpose of support or stimulation authorized by Federal

statute, and substantial Federal involvement is not

anticipated.

b\. Cooperative Agreement. A \"cooperative agreement\" serves the

same purpose as a grant; however, substantial Federal

involvement is anticipated.

1-4. DISTRIBUTION OF HANDBOOK,
[SF-270](http://contacts.gsa.gov/webforms.nsf/0/A2728A279E35054E85256AA10042F275/$file/sf270.PDF)
AND HUD-274. At the time that a

grant or cooperative agreement is approve the recipient will be

furnished the following:

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1900.18 REV-1

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a\. A copy of Handbook, HUD 1900.17 REV-1, Requisitioning Procedures

for Grants and Cooperative Agreements - Recipient Organizations.

b\. A HUD-274, Designation of Depositary for Direct Deposit of Loan

and/or Grant Funds.

c\. A supply of the SF-270, Request For Advance or Reimbursement.

1-5. DESIGNATION OF DEPOSITARY. U.S. Treasury checks will be mailed

directly to the depositary designated and authorized by the

recipient organization for credit to the recipient organization\'s

bank account. The recipient organization shall complete Section I

of Form HUD-274, Designation of Depositary for Direct Deposit of

Loan and/or Grant Funds, and forward it to the HUD office which

serves it in accordance with instructions received from that office.

An illustration of this form is shown in Appendix 1. Preparation

instructions are provided in HUD Handbook 1900.17. A recipient

organization will execute a power of attorney only where the

depositary requires such an authorization in order to receive checks

directly from the U.S. Treasury Department for credit to the

recipient organization\'s bank account. Recipient organizations

shall execute a new Form HUD-274 whenever changes in the depositary

are necessary.

1-6. REVIEW AND APPROVAL OF SF-270 FOR PAYMENT. The program participant

will transmit SF-270 as Instructed In HUD Handbook 1900.17 REV-1

depending on the payment method being used. Guidance for review

and approval of the HUD-270 for payment under the various payment

methods is as follows:

a\. All payments. The GTR or other reviewing officer must determine

that the SF-270 is prepared correctly as prescribed in Appendix

2, HUD Handbook 1900.17. Special attention must be given to the

review of block (11) of the requisition. If the review is

satisfactory, the requisition should be signed and dated in the

spaces indicated on the form.

b\. Reimbursement method - \"fast pay\". Because the costs have

already been incurred by the recipient, it is imperative that

requests for reimbursement be handled expeditiously. As with

many HUD cost-reimbursement contracts, most assistance

agreements are placed under the \"fast-pay\" method. Under this

payment method, the recipient mails the original and two copies

of the SF-270, except the final request, directly to the Office

of Finance and Accounting (OFA) with copies to the Grant

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1900.18 REV-1

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Officer and GTR. The recipient must mail the original and

two copies of the final SF-270 to the grant officer for

payment approval. The GTR and grant officer must review the

vouchers promptly to assure that costs claimed for reimbursement

are reasonable and allocable. If OFA receives no notification

from the grant officer to the contrary, OFA will pay the

voucher after 30 days, assuming that the voucher is

mathematically correct and that undisbursed funds are available

The \"fast-pay\" payment system applies only to assistance

agreements administered by HUD Headquarters in Washington.

c\. Advance payment by Treasury check. Under this payment method,

the recipient mails the original and all copies of the SF-270 to

the grant officer in the HUD office responsible for administering

the grant or cooperative agreement. The GTR and grant

officer will review the SF-270 to determine whether payment

should be made. The review guidance provided in Chapter 3 of

HUD Handbook 1900.6 REV-1, Processing of Requisitions and

Analysis of Reports Submitted by HUD Grantees, shall be adhered

to. If the SF-270 is approved for payment it will be sent to

the servicing accounting office to be processed for payment.

1-7. PROCESSING OF SF-270 BY ACCOUNTING OFFICE. The SF-270 that is

received by the Office of Finance and Accounting or Regional

Accounting Division as appropriate, will be processed for payment,

depending on the payment method, as follows:

a\. Reimbursement method - \"fast-pay\". Under the \"fast-pay\"

system, the recipient mails the original and two copies of the

SF-270, except the final request, directly to the Office of

Finance and Accounting (OFA) with copies to the Grant Officer

and GTR. The final SF-270 is mailed to the grant officer and

must be approved by the GTR and grant officer prior to

processing for payment. If OFA receives no notification from

the Grant Officer to the contrary, OFA will pay the voucher

after 30 days, if the voucher is mathematically correct and that

undisbursed funds are sufficient, The Office of Finance and

Accounting will request Treasury to mail a check to the

depositary shown in block 10 of the SF-270. The \"fast-pay\"

payment system applies only to assistance agreements

administered by HUD Headquarters in Washington.

b\. Advance payment by Treasury check. Under the advance payment

system, after the GTR and grant officer have reviewed and

approved a SF-270 the original and one copy will be transmitted

to the appropriate accounting office. The appropriate

accounting office will process the SF-270 and request Treasury

to mail a check to the depositary shown in block 10 of the

SF-270.

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1900.18 REV-1

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c\. Accounting Information. The coding strip at the bottom of

SF-270 may be used to transcribe information from the

requisition for input to the Program Accounting System (see

HUD Handbook 1970.33 REV-1).

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