4310.5 REV-2

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CHAPTER 16. DISBURSEMENTS

SECTION I - POLICY

16-1 General. Following acquisition, action is taken to protect the

property and maintain the property until its sale or transfer to

another owner. Unless the function is retained by the Field Office,

HUD uses one of two commercial sources to manage single family

acquired properties from acquisition to sales closing. The

commercial sources are Real Estate Asset Managers (REAMs) and

Exclusive Listing Brokers (ELBs), commonly referred to as property

managers.

16-2 Property management functions typically include duties such as

performing periodic inspections of single family acquired property

to determine its condition and ensuring that any required

maintenance is performed to maximize profits or to minimize losses

when final disposition action is taken. Disbursement transactions

made in support of these functions are monitored, reviewed, and

authorized by the Field Office in accordance with stringent fiscal

and internal controls. The exhibit at the end of the chapter

summarizes the types of disbursements and corresponding post codes

for single family properties.

SECTION II - INTERNAL CONTROL OBJECTIVES

16-3 Each Form SAMS-1106, Invoice Transmittal, is accompanied by a
proper

invoice and any other approved documentation that supports the

disbursement.

16-4 Necessary, Original Signatures. The Form SAMS-1106 contains the

necessary signatures and the signatures are original and not

facsimile.

16-5 Forms SAMS-1106 and attached invoices are reviewed to verify the

quantity of items and unit price and to ensure the mathematical

accuracy of computations.

16-6 A copy of each Form SAMS-1106 sent to HUD\'s contractor for SAMS is

retained by the Field Office.

16-7 Segregation of duties is established and maintained. Within each

Field Office, the Field Office Manager and the CPO or designee are

responsible for ensuring that a segregation of duties is maintained

as required by this chapter. The following functions must be

assigned to and accomplished by different individuals:

A. Initiation of purchase orders or formal contracts.

B. Approval and acceptance of goods or services.

C. Certification to the accuracy of the prepared disbursement

request. The authorized Certifying Officer does not have data

entry access to SAMS and is not organizationally assigned as a

member of the Field Office Property Disposition Branch.

See paragraph 1-12 for a discussion of internal controls in small

offices.

16-8 A system is in place for an independent review of each Form

SAMS-1106 to ensure that each related disbursement is fully

supported, and the disbursement is verified in the Single Family

Accounting Management System (SAMS).

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16-1 5/94

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4310.5 REV-2

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16-9 All SFPD disbursements are valid, reasonable, appropriately

documented and authorized, and comply with procurement and program

guidelines. Only authorized vendors are used. Upon authorization,

disbursements are processed promptly. Appropriate segregation of

duties is maintained between authorization and processing of

disbursements.

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5/94 16-2

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4310.5 REV-2

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SECTION III - PROCEDURES FOR PROCESSING DISBURSEMENTS

16-10. General Disbursement transactions processed by Field Offices

originate from single family acquired property transactions (i)

initiated in the Field Office or (ii) submitted by property managers

or closing agents. SAMS is used to track and authorize disbursement

transactions related to all single family acquired property

disposition actions. Real estate property tax disbursements are

addressed in Chapter 5. Refer to the SAMS User Handbook for

instructions for using SAMS to process disbursement transactions and

for completing various SAMS forms. While using SAMS, however, it is

important that Field Offices exercise sound internal controls over

transactions processed and over related payment authorizations.

16-11. Complying with Procurement Regulations.

A. Field Office Compliance. It is HUD\'s policy to comply with all

applicable procurement regulations while purchasing single

family goods and services. Departmental policy regarding Field

contracting is contained in Handbook 2210.16, Regional

Contracting.

B. Property Manager Compliance. Property managers are responsible

for complying with provisions of their contracts, including

requirements related to disbursement transactions that they

process. Field Offices shall employ local procedures for

monitoring disbursement actions to ensure contract compliance.

These actions are outlined in this chapter.

C. Closing Agent Compliance. Closing agents are responsible for

complying with provisions of their contracts, including payment

of allowable closing expenses from sales proceeds. HUD is

responsible for reimbursing the closing agent for any allowable

closing expenses paid by the closing agent due to insufficient

sales proceeds. Payment is made using a Form SAMS-1106 that is

processed through the Field Office.

16-12 Complying with the Prompt Payment Act (Public Law 97-177). It is

HUD\'s policy to comply with all requirements set forth in Handbook

1900.29, Prompt-Payment Policy, which establishes HUD\'s policy with

regard to paying for goods and services procured under HUD

contracts.

A. Prompt Payment Invoices. Invoices failing under the provisions

of the Prompt Payment Act must be paid within 30 days from

final inspection or invoice receipt date, whichever is later.

Payments to property managers for contract fees authorized

under their contracting authority are in this category.

B. Non-prompt Payment Invoices. Invoices not covered by

provisions of the Prompt Payment Act will be paid within 5

working days from date of receipt by HUD\'s contractor for SAMS.

Payments to subcontractors hired by property managers are in

this category.

C. Prompt Payment Penalties. HUD\'s contractor for SAMS may reject

invoice transmittals which are not prepared in compliance with

existing requirements. Rejected invoice transmittals are

discussed at paragraph 16-23. When a rejected invoice

transmittal is subject to the provisions of the Prompt Payment

Act and the payment is made after the prescribed due date,

HUD\'s contractor for SAMS will include the appropriate prompt

payment

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16-3 5/94

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4310.5 REV-2

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penalty with the payment. SAMS provides a monthly summary of

prompt payment penalty amounts and also details the entity

(HUD, the SAMS contractor, property manager, or mortgagee)

responsible for the late payment. Headquarters monitors this

report and provides guidance to correct problems so that

payment of such penalties does not become chronic.

16-13 Authorized Signatures.

A. Form SF 210, Signature/Designation Card. An authorized

Certifying Officer must certify that the disbursement requested

through the Form SAMS-1106, Invoice Transmittal, and its

attachments is correct and proper for payment. To ensure that

only an authorized Certifying Officer approves the disbursement

request, Forms SF 210, Signature/Designation Card for

Certifying Officer (Appendix 12), for Field Office Certifying

Officers must be on file with HUD\'s contractor for SAMS. If

the authorized Certifying Officer\'s signature on the Form

SAMS-1106 does not match that on the SF 210, the SAMS

contractor shall reject the disbursement request and return it

to the Field Office. The authorized Certifying Officer may not

be assigned to the Property Disposition Branch. The contractor

is also responsible for verifying that a signature appears on

line 17.b., Reviewer\'s Signature (Chief Property Officer or

designee).

B. Form SAMS-1204, Authorized Signature(s) for Vendor File

Maintenance. The Form SAMS-1204, Authorized Signature(s) for

Vendor File Maintenance, is used to authorize the signature(s)

of the Field Office Manager or designee who will approve the

establishment and maintenance of payees, e.g., tradesmen,

service vendors, and selling brokers, in SAMS. For internal

control purposes, the designee may not be assigned to the

Property Disposition Branch. It is expected that the Field

Office Manager will designate a person to perform SAMS vendor

file maintenance duties. However, should the Field Office

Manager elect to fulfill this responsibility as either the

primary or alternate reviewer, the authorized signature on the

Form SAMS-1204 must be the signature of the Regional

Administrator. HUD\'s contractor for SAMS uses the Form

SAMS-1204 to verify the signature of the reviewer on SAMS forms

for vendor file maintenance. If the signature on the form does

not match, the contractor shall reject the form and return it

to the originating Field Office.

1\. The line titled Reviewer\'s Signature (Field Office Manager

or designee) on each Form SAMS-1111, Trade/Service

Vendor\'s Information; SAMS-1115, Property Manager/Closing

Agent Information (REAM, Exclusive Listing Broker, Closing

Agent), SAMS-1116, Selling Broker Information and

Certification, and SAMS-1117, Information for Vendor

Deactivation, must be signed by the Field Office Manager,

designee, or alternate whose signature is on file. HUD\'s

contractor for SAMS is responsible for verifying the

authenticity of the reviewer\'s signature on the vendor

file maintenance forms.

2\. The line titled Reviewer\'s Signature (Chief Property

Officer or designee) on Form SAMS-1112, Non-Vendor Payment

Information, must be signed by the Chief Property Officer

or designee. The contractor is responsible for verifying

that a signature appears on that line. However, the Chief

Property Officer\'s or designee\'s signature is not required

to be on file with HUD\'s contractor for SAMS.

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5/94 16-4

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4310.5 REV-2

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C. Cancellation of Forms SF 210 and SAMS-1204. Forms SF 210 and

SAMS-1204 shall immediately be canceled any time the person is

no longer associated with HUD or is no longer authorized to

sign the applicable forms.

1\. The Field Office Manager shall revoke signature authority

for Forms SAMS-1106 and cancel Form SF 210 by submitting

signed memoranda to the Office of Finance and Accounting

and to HUD\'s contractor for SAMS.

2\. The Field Office Manager (or Regional Administrator, as

appropriate) shall revoke signature authority for Forms

SAMS-1111, SAMS-1115, SAMS-1116, and SAMS-1117 by

completing a Form SAMS-1204 and submitting it to HUD\'s

contractor for SAMS.

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16-5 5/94

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4310.5 REV-2

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16-14 Establishing the Payee (Vendor) in SAMS.

A. Vendor Information Forms.

1\. The Chief Property Officer or designee will be responsible

for supplying the vendor with appropriate SAMS forms. The

term \"vendor\" is intended to include any person or

organization receiving a payment from HUD in exchange for

goods or services. (See paragraph 16-14 B.4. for

non-vendor payment information.) Vendors will be

responsible for completing the forms, attaching the

required documentation as set forth below, and returning

the package to the Field Office for processing. Required

forms are:

SAMS-1111 Trade/Service Vendor\'s Information

SAMS-1115 Property Manager/Closing Agent

Information

SAMS-1116/1116A Selling Broker Information

and Certification

2\. Instructions for completion of Forms SAMS-1111, 1115, and

1116 are printed on the reverse of each form and also

contained in the SAMS User Handbook. In all cases, the

Field Office shall ensure that each vendor is informed of

HUD\'s need for accurate and complete information so that

payments for goods and services will be forwarded to the

proper vendor. Items in the boxes marked \"For HUD use

only\" on these forms must be completed by the Field

Office. However, it may be necessary for the Field Office

to complete the entire form. The Field Office shall

ensure that such instances are confined to situations when

it is imperative that transactions related to the Form

SAMS-1111, 1115, or 1116/1116A be processed without delay.

3\. While these SAMS forms do not authorize payment of vendor

invoices, they do provide important controls, including

controls to help ensure that only invoices from

authorized vendors are paid and that payment is directed

to the proper name and address.

4\. Vendors in SAMS are specific to the entity which

established them. A Field Office can do business with

those vendors it deems appropriate and which comply with

Departmental requirements. Field Office employees have

access to information about only those vendors established

by and for their entities and can request payments only

for those vendors.

B. Documentation to Verify Authenticity of Vendor. Documentation

to be attached to the SAMS form will vary depending upon the

type of vendor to be approved and the vendor\'s relationship to

HUD. Vendors under formal contract to HUD have already been

through a review and verification process. Therefore,

documentation to be attached to the SAMS form is different than

for non-contracted vendors. However, other vendors not under

direct contract to HUD (even if they are third parties paid by

HUD) will be required to supplement their SAMS form with

additional documentation. Refer below to the applicable vendor

type for a description of required attachments to the SAMS

forms.

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5/94 16-6

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4310.5 REV-2

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1\. NONCONTRACT VENDORS (excluding Selling Brokers). These

vendors can be either repair or miscellaneous service

vendors using the Form SAMS-1111 or closing agents or

property managers not yet under contract using the Form

SAMS-1115. Request copies of verification documentation

as follows:

a\. Federal tax identification certificate OR

b\. Driver\'s license AND Social Security Card;

c\. If the vendor is a company (including a partnership),

a Federal tax identification number should be

provided. If the vendor is a sole proprietorship,

i.e., a company owned or operated by a single

individual, the Federal tax identification number

will be the Social Security Number of the owner.

d\. Cover sheet of a recent telephone bill or other

alternate documentation, i.e., utility bill or bank

statement, showing vendor\'s name, address, and phone

number; and

e\. A copy of local or state business license for

vendor\'s trade, if available.

EXCEPTIONS to these documentation requirements may be

made when establishing Federal, state, or local

government agencies, utility companies, and

homeowners associations as HUD vendors.

f\. Field Offices are not required to obtain support

documentation when establishing any Federal, state,

or local government agency as a HUD vendor. Also,

support documentation is not required to approve

public utility companies as authorized vendors.

However, the Field Office reviewer must contact

government agencies and utility companies by

telephone to confirm key information provided on the

SAMS vendor form. It is especially important to

confirm the remittance address if the agency is using

a post office box number.

g\. Documentation requirements will vary for homeowners\'

associations (HOAs) depending if the HOA is

administered under a professional management

contract.

\(1\) If an HOA is administered by a management

company, Field Offices will define the HOA in

SAMS as a HUD vendor in care of the management

company\'s name and address. Checks will be

payable to the HOA. Required documentation to

the Form SAMS-1111 is:

o A Letter of Agreement verifying that the

company is authorized to act as the

collection agency for the HOA; OR

o A copy of that section of the contract

between the HOA and the management company

that authorizes the management company to

collect receipts on behalf of the HOA; AND

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16-7 5/94

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4310.5 REV-2

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o The Federal tax identification certificate

issued to the HOA.

\(2\) If the HOA is not under contract management,

Field Offices must obtain a copy of the first

page of the HOA\'s bank statement and a copy of

the Federal tax identification certificate when

establishing the HOA as a HUD vendor in SAMS.

2\. CONTRACT VENDORS (excluding Selling Brokers). Vendors who

are under formal contract to HUD have already been through

a verification process during the contracting process.

These vendors include service vendors using the Form

SAMS-1111 and property managers/closing agents using the

Form SAMS-1115. These vendors will complete their own

Form SAMS-1111/1115, as applicable, and submit this form

with the required attachments to the Field Office.

Required attachments are:

a\. Copy of Page 1 of the formal HUD contract evidencing

authorization by the appropriate contracting

official; and

b\. Cover sheet of a recent telephone bill or other

alternate documentation, i.e., utility bill or bank

statement, showing vendor\'s name, address, and phone

number.

3\. SELLING BROKERS. Selling brokers are required to complete

Form SAMS-1116/1116A and attach the following for

verification purposes:

a\. Federal tax identification certificate OR

b\. Driver\'s license AND Social Security Card;

c\. Copy of broker\'s state license;

d\. Signed Selling Broker Information and Certification,

Form SAMS-1116A, appended to Form SAMS-1116; and

e\. COVER SHEET of a recent telephone bill or other

alternate documentation, i.e., utility bill or

bank statement, showing vendor\'s name, address,

and phone number.

4\. NON-VENDOR PAYMENT INFORMATION. The Form SAMS-1112 is

used in those instances where HUD must either refund or

reimburse funds to payees who are NOT vendors. This form

is used in all instances where payments or refunds to

purchasers or tenants must be made. It will also apply to

any other disbursement to a non-vendor as approved by the

Chief Property Officer.

a\. Establishing a non-vendor in SAMS involves different

processing procedures from those discussed above for

HUD vendors. Procedures applicable to the Form

SAMS-1112 only are:

\(1\) The form must be completed by the property

manager, Field Office staff, or the closing

agent;

\(2\) It is approved or rejected by the Chief Property

Officer (not Field Office Manager);

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5/94 16-8

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4310.5 REV-2

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\(3\) There is no supporting documentation required

with this form. However, the Form SAMS-1112

cannot be submitted to HUD\'s contractor for SAMS

unless it is attached to a properly prepared

Form SAMS-1106, Invoice Transmittal.

b\. The Form SAMS-1106 must include acceptable supporting

documentation to substantiate the payment to the

non-vendor. Copies of sales contracts and/or

addenda, the HUD-1 Settlement Statement,

repair/deposit agreements, lease agreements are

examples of acceptable documentation.

c\. Anyone performing a service or supplying materials to

HUD, even if paid on a one-time basis, is classified

as a \"vendor\" and must be established in SAMS using

the Form SAMS-1111, 1115, or 1116 and applicable

procedures discussed in paragraphs (1) through (3)

above.

16-15 Review and Approval of Vendor Information. The Field Office
Manager

or designee shall review, perform all data verification, and approve

all Forms SAMS-1111, SAMS-1115, and SAMS-1116, whether prepared by

the Field Office or by the contracted HUD agent or vendor.

Processing and authorization decisions must be made by the Field

Office Manager or designee within three (3) business days of receipt

of the documentation package from the vendor. Prior to signing

the vendor information form, the Field Office Manager or designee

must complete the following steps:

A. Ensure that the vendor does not already exist in SAMS for the

indicated vendor type/category by reviewing SAMS report GB RP

EO or, alternately, searching screen GB SR EO.

B. For all noncontracted vendors, including Selling Brokers,

perform a check against the GSA Debarred, Suspended or

Ineligible Vendors and the Limited Denial of Participation

Lists.

C. Perform a review of the Form SAMS-1111, 1115, or 1116, as

appropriate, to ensure the following:

1\. All sections of the form have been completed. Note:

Certain items on each of these forms must be completed by

the Field Office.

2\. All required documentation has been attached.

3\. All representations made by the vendor are complete and

accurate, as detailed below.

Compare the vendor\'s name and tax identification number

on the form with the corresponding information on:

a\. The Federal and State tax identification certificates

and

b\. The state broker\'s license, if applicable. If the

vendor is a company (including a partnership), a

Federal tax identification number should be provided.

If the vendor is a sole proprietorship, i.e., a

company owned or operated by a single individual,

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16-9 5/94

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4310.5 REV-2

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the Federal tax identification number will be the

Social Security Number of the owner.

c\. The telephone bill or other alternate documentation

specified above.

When conducting a documentation review for small

businesses, Field Offices must be aware of the extent

to which documentation for the principal owner may

overlap with documentation for the owner\'s business.

For this reason, information on the support

documentation may not be identical in all respects to

that declared on the SAMS vendor application form.

For instance, a business name may be used on the

vendor application form while the telephone bill will

reflect only the principal\'s personal name. When

reviewing documentation for selling brokers, the

state license may reflect the broker\'s name rather

than the business name. To compensate for minor

dissimilarities in information reflected on the

support documentation, Field Office reviewers should

look for consistency in the majority of the

information provided. For instance, identical

address information and license or tax identification

data may suffice to confirm the vendor\'s

authenticity. Reviewers may also cross-check vendor

information with the local telephone directory or

place a call to the business for further

clarification. In most instances, minor

discrepancies are not cause for rejection of the

vendor application unless the reviewer can find no

reasonable correlation to the application information

or cannot obtain a reasonable explanation for the

discrepancy.

4\. If any contracts or agreements are provided, compare the

vendor\'s name, address, phone number, and names of the

vendor\'s principal(s), as noted on the document(s), with

those on the form.

Review the response regarding whether the vendor has any

relationships with local property disposition staff.

Unallowed relationships are discussed at 24 CFR 0.735-203

(\"Outside Employment and Other Activities\") and 24 CFR

0.735-204 (\"Financial Interests\").

16-16 Distribution of Approved Forms. Upon verifying all relevant

documentation, the Field Office Manager or designee shall sign the

form and send the original to HUD\'s contractor for SAMS for

processing.

A. Facsimile (FAX) copies are not acceptable.

B. Supporting documentation is for Field Office use only and

should be retained in Field Office files. Do not forward

supporting documents to HUD\'s contractor for SAMS.

C. Forward a copy of all approved forms to the Chief Property

Officer.

16-17 Rejected Forms. Return rejected forms to the vendor accompanied by

a reason for the rejection.

A. The Field Office Manager or designee, at his or her option, may

work with the vendor to cure the deficiency, provided the

rejection may be overcome. However, problems relative to

inability to present required documentation

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5/94 16-10

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4310.5 REV-2

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and/or adverse opinions of Field Counsel generally cannot be

resolved in the vendor\'s favor.

B. Forward a copy of all rejected forms to the Chief Property

Officer.

16-18 Changing Vendor Information. Request changes to information for

established vendors by submitting a Form SAMS-1111, 1115, or 1116,

as appropriate, and relevant documentation indicating the

information to be changed, e.g., phone number, address, etc.

A. Verify, by telephone confirmation with the vendor\'s principal

owner, the information which is being revised.

B. Upon verifying all relevant documentation, the Field Office

Manager or designee shall sign the form and send the approved

original to HUD\'s contractor for SAMS for processing. FAX

copies are not acceptable.

16-19 Deactivating Vendors. All requests for vendor deactivations must
be

initiated (or approved, if vendor initiated) by the Chief Property

Officer or designee on a Form SAMS-1117, Vendor Information for

Deactivation, and forwarded to the Field Office Manager or designee

for signature. Provide a brief explanation for the deactivation,

e.g., discontinuation of service, duplicate entry in SAMS,

unsatisfactory performance, etc. Forward the form with original

signature of the Field Office Manager or designee to HUD\'s

contractor for SAMS.

16-20 Monthly Review of Vendor Files. Each month HUD\'s contractor for

SAMS provides a SAMS vendor file report, List of Vendors (GB RP EO),

to the Chief Property Officer for distribution to the Field Office

Manager or designee.

A. Review Report. The Field Office Manager or designee is

responsible for ensuring the accuracy of the data on the

monthly report. Compare the report to copies of the forms

submitted to the contractor since the last report was reviewed.

B. Discrepancies. If discrepancies are noted, this individual

must notify HUD\'s contractor for SAMS by referring to the form

in question and must ensure that corrections are made.

16-21 Annual Review and Certification of Vendor Files.

A. Report Provided Annually. In early October each year, HUD\'s

contractor for SAMS will send the SAMS vendor file report (GB

RP EO) to the Chief Property Officer to forward to the Field

Office Manager or designee to verify the accuracy of the vendor

file. The Field Office Manager or designee is responsible for

ensuring the accuracy of the data on the report.

B. Review Report. Compare currently authorized vendors identified

on retained Forms SAMS-1111, 1115, and 1116 with vendors shown

on the SAMS report.

C. Additions, Changes, or Deactivations. As necessary, the

appropriate SAMS vendor forms shall be completed by the Field

Office Manager or designee and confirmed by telephone, as

described above.

D. Certification and Document Retention. The Field Office Manager

or designee shall receive notification annually of the need to

review and certify to the accuracy of the report. The

certification form provided with the notification

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16-11 5/94

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4310.5 REV-2

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must be completed by the Field Office Manager or designee and

forwarded to the Systems Management Branch, Single Family

Property Disposition Division, no later than November 30 of

each year.

E. Performance of Monthly Verification. Performance of monthly

verification procedures ensures that minimal effort is required

for the annual review and certification of the vendor files.

16-22 Disbursement (Payment) Processing.

A. Use Form SAMS-1106.

1\. Requests for disbursement from property managers, closing

agents, and all other vendors and non-vendors (purchasers

and tenants) must be submitted on a Form SAMS-1106,

Invoice Transmittal. No other form of disbursement

request is acceptable. Instructions for completing the

Form SAMS-1106 are printed on the reverse of the form.

Additional instructions for disbursement processing are

provided in the paragraphs below.

2\. Upon receipt of invoices or purchase orders which are

ready for payment, Field Offices shall assemble and

process them in accordance with applicable instructions.

Forms SAMS-1106, with supporting documentation and

prescribed signatures, shall be forwarded daily to HUD\'s

contractor for SAMS for payment processing.

3\. Property managers and closing agents shall prepare Forms

SAMS-1106 for related disbursement transactions in

accordance with applicable instructions. The completed

Forms SAMS-1106 with appropriate documentation attached

shall be forwarded to the Field Office for review and

approval. If approved, the Field Office shall forward the

payment packages to HUD\'s contractor for SAMS.

B. Required signatures for Form SAMS-1106. Required signatures

for the Form SAMS-1106 are as specified below.

1\. Property managers and closing agents, as appropriate,

shall prepare a Form SAMS-1106 for disbursement requests

and sign item 17.a.

2\. For disbursements initiated by the Field Office, the Field

Office shall complete the Form SAMS-1106. Item 17.a.

shall be completed by the person who is familiar with the

transaction and who has positive knowledge that the

related goods or services have been received by HUD.

3\. The person who signs item 17.a, however, shall not be the

same person who (i) authorized processing of the related

purchase order or contract, (ii) approved initial or

modified information to be entered into the SAMS data base

regarding the purchase order or contract, or (iii)

completes item 18 of the Form SAMS-1106 as the authorized

Certifying Officer.

4\. The Chief Property Officer or designee must sign (not

initial) all Forms SAMS-1106 on line 17.b., attesting that

the invoice is proper for payment.

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5/94 16-12

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4310.5 REV-2

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5\. The authorized Certifying Officer shall complete item 18

of all Forms SAMS-1106. In addition, the authorized

Certifying Officer shall imprint his or her authorization

stamp while completing item 18. The authorized Certifying

Officer\'s authorization stamp shall be retained in the

possession of the authorized Certifying Officer and shall

not be released to any other individual for any purpose.

C. Review of Form SAMS-1106 and Attachments. Before signing item

17.b., the Chief Property Officer or designee must carefully

review the Form SAMS-1106, Form SAMS-1106-C Continuation Form,

and any attachments to verify the information contained

therein. As an alternative to the Form SAMS-1106-C,

Continuation Form, it is acceptable to specify the required

information on a separate listing. The listing shall include

all information shown in paragraph C.12. for each item. If the

review reveals errors, discrepancies, or inconsistencies, the

Form SAMS-1106 must be returned to the preparer for correction,

including, if appropriate, the attachment of appropriate

documentation to validate the payment request and be

resubmitted for review.

1\. The property manager\'s non-system generated transmittal

number must conform to the required format of: \"EONXXX\"

\"FY\" \"4 digit number\".

a\. Retrieve the List of Transmittal Prefixes Report (GB

RP TP) from SAMS to determine the correct prefix

(composed of 3 alphanumeric characters and the three

digit Field Office number) for the property manager.

Substitute this prefix for \"EONXXX.\"

b\. Identify the fiscal year for \"FY.\"

c\. Enter a 4 digit sequential number.

d\. For example, the 21st transmittal prepared in FY 1993

by a Birmingham property manager whose transmittal

prefix is LWR409 would be assigned the following

transmittal number: LWR409930-021.

2\. The vendor\'s EO-NA identifier and name must appear on

lines 5 and 6, respectively, of the Form SAMS 1106.

Confirmation of the EO-NA may be made by referring to

existing vendor listings and comparing such information to

the supporting invoices and other documentation attached

to the Form SAMS-1106. The name must be consistent with

the name and address found on the attached invoice(s).

Alternately, a properly completed and authorized Form

SAMS-1111, Trade/Service Vendor\'s Information; Form

SAMS-1112, Non-Vendor Payment Information; Form SAMS-1115,

Property Manager/Closing Agent Information (REAM,

Exclusive Listing Broker, Closing Agent); or Form

SAMS-1116, Selling Broker Information and Certification

may be attached to the Form SAMS-1106. Field Offices

should remind property managers of possible delays in

processing Forms SAMS-1106 for new vendors not yet

established in SAMS. Vendor verification procedures

require HUD confirmation of the vendor information

submitted on Forms SAMS-1111, 1115, or 1116.

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16-13 5/94

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4310.5 REV-2

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3\. The payment type must be correctly designated, i.e.,

\"PROMPT PAYMENT,\" including the start date; \"NON-PROMPT

PAYMENT;\" or \"DISCOUNT,\" including the due date and

percentage. Payment requests for property managers\'

subcontractors are always designated \"NON-PROMPT PAYMENT.\"

Payments to property managers for contract fees authorized

under their contracting authority are \"PROMPT PAYMENT.\"

4\. The \"INVOICE NO.\" must be included and correctly

transferred from the original invoice, if the invoice

contained such a number. SAMS automatically checks for

duplicate invoice numbers.

5\. The \"PO/CO\" (purchase order/contract number), if

applicable, must be associated with the vendor\'s EO-NA

identifier. Note: For the disbursement of earnest money,

a contract number is not required and should not be

included. This includes earnest money refunds, negative

sales proceeds, or refund of excess wire transfers.

6\. The \"PC\" (post code) must be correct. Regular, frequent

monitoring of original disbursement documentation is

carried out by Headquarters to ensure, among other things,

use of appropriate post codes. Failure to use appropriate

post codes causes incorrect reporting of expenses.

NOTE: Allocate post code PA (Pre-acquisition) is used

for expenditures such as (1) habitability and/or

defective paint inspections following the receipt

of a request for occupied conveyance or (2)

inspections to verify the estimate of damage to a

property which the mortgagee has requested to

convey in damaged condition. DO NOT USE THIS

POST CODE FOR SECRETARY-HELD PROPERTIES

(CUSTODIALS) WHICH HAVE BEEN TURNED OVER TO PD

FOR CUSTODIAL CARE.

7\. The \"FHA CASE NUMBER\" must be correct and, if a case

specific post code is used, established in SAMS.

8\. The \"AMT. PER PC\" must equal the sum of all items charged

to the post code.

9\. The \"INVOICE TOTAL\" must equal the sum of all items listed

on the invoice.

10\. The \"TRANSMITTAL TOTAL\" must equal the sum of all invoices

referenced in and attached to the transmittal.

11\. The preparer must sign and date the transmittal.

12\. Original invoices (or certified copies) and/or other

appropriate documents must be attached. Invoices or

attachments must state:

a\. Name and correct business address of vendor

b\. Invoice number (correctly noted on Form SAMS-1106,

if the invoice contained such a number)

c\. Date invoice was issued/prepared and/or date of

service/delivery of merchandise or goods

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5/94 16-14

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4310.5 REV-2

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d\. Specific case numbers or property addresses

(when applicable)

e\. Amount per type of service, goods or merchandise,

per case number/address

f\. Description of goods or services provided

g\. Applicable purchase order or contract number

h\. Appropriate documentation for disbursements described

below shall consist of the following:

\(1\) Lead-based paint.

\(a\) Formal Contract. When a formal contract

for services to treat lead-based paint is

used, the original invoice shall be

attached to the Form SAMS-1106.

\(b\) Purchase Order. When a purchase order is

used, the purchase order shall be attached

to the Form SAMS-1106.

\(c\) Repair Escrow. In the rare instances that

the purchaser has been required to submit

an escrow deposit for the treatment of

immediate lead-based paint health hazards,

the Field Office shall request a refund of

the escrow deposit to the purchaser by

submitting properly completed Forms

SAMS-1106 and SAMS-1112.

\(2\) Upgrade allowances and sales incentives.

\(a\) Upgrade allowances and sales incentives are

authorized through the disposition program

to pay for authorized repairs within

specified limits.

\(b\) Repair Allowance. The Form SAMS-1106 shall

\(i\) be annotated with the Repair Allowance

repair program type, (ii) include paid

receipts conforming to invoice requirements

specified above, and (iii) have a properly

completed Form SAMS-1112 attached.

\(c\) Spruce Up Incentive. A disbursement in

payment of a spruce up incentive shall be

so identified on the Form SAMS-1106.

Appropriate supporting documentation shall

be (i) an original invoice if a formal

contract was used to initiate the work;

\(ii\) an original or certified true copy of

the completed purchase order and/or invoice

shall be attached for small purchases.

\(3\) Reimbursement for taxes subsequent to

settlement. Refer to paragraph 16-25 D. for

situations in which the Form SAMS-1106 may be

used to pay real estate taxes.

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16-15 5/94

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4310.5 REV-2

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\(4\) Repurchase of a property. Forms SAMS-1106 for

the cost of repurchasing a previously HUD-owned

property must include authorization in the form

of a memorandum to the Field Office signed by

the Director of the Office of Insured Single

Family Housing, HUD Headquarters. Such

repurchases are made by a single payment-in-full

of the mortgage. The Department does not make

monthly mortgage payments.

\(5\) Cases not in SAMS. On rare occasions, Field

Offices may be required to make disbursements

for cases that are no longer active in SAMS,

e.g., archived cases or HUD-owned properties

that were never in SAMS. Such disbursements

shall include appropriate supporting

documentation (original invoices, etc.); use the

appropriate allocate post code; and be

accompanied by a memorandum, signed by the Chief

Property Officer, explaining and authorizing the

disbursement.

\(6\) Key deposit refunds. Acceptable documentation

for the disbursement of a key deposit refund

shall be a copy of the receipt for the key

deposit.

\(7\) Fees paid by the Field Office. Acceptable

supporting documentation for fees, such as

filing fees, paid by the Field Office shall be

original invoices, billing statements or

purchase orders.

\(8\) Legal judgments. Legal judgments requiring

payment by the Department must include a copy of

the court decree or judgment and a signed

memorandum of authorization from the Office of

Insured Single Family Housing.

\(9\) Other situations. Contact the Chief, Systems

Management Branch, Single Family Property

Disposition Division, for guidance regarding

disbursement requests for other single family

property disposition activities, i.e., those not

covered in this Handbook, not covered by an

existing post code, etc.

12\. Repairs must be inspected and found acceptable by the

appropriate party, e.g., property manager, HUD Fee

Inspector.

13\. If applicable, Form HUD-9519, Acquired Property Inspection

Report, must be completed and included with the payment

package for the Field Office\'s review.

NOTE: The use of Form HUD-9519 may be optional under

REAM contracts. Unless an appropriate Service Item

was included in the executed REAM contract, it may be

necessary to contact the contracting officer to take

appropriate action to require a REAM to furnish Form

HUD-9519. Inspection reports are for Field Office

use only. Do not forward them to HUD\'s contractor

for SAMS.

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5/94 16-16

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4310.5 REV-2

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14\. The REAM must include a certification that the work was

necessary, the price was reasonable, there was sufficient

competition, and the work was completed satisfactorily.

REAMs are expected to inspect subcontracted repairs within

24 hours of completion and prior to submitting the Form

SAMS-1106 for payment. This certification is for Field

Office review only. Do not include it with the payment

package to HUD\'s contractor for SAMS. A sample format is

included as Appendix 46. (Note: The REAM contract

requires completion of a certification statement; there is

no such requirement in the ELB contract.)

D. Authorization by the Certifying Officer. The approved Form

SAMS-1106 with all related supporting documentation shall be

submitted to the authorized Certifying Officer for signature at

item 18.

E. Recording the Approved Form SAMS-1106 in SAMS. Except for

Forms SAMS-1106 prepared by property managers, the Field Office

shall use the SAMS Enter Invoice Transmittal Screen (AP DS TB)

to record the approved Form SAMS-1106 in SAMS. The transmittal

number generated by SAMS shall be written on line 2 of the

approved Form SAMS-1106.

F. Submission of the Approved Form SAMS-1106. After completion of

item 18, the approved Form SAMS-1106 shall be forwarded to

HUD\'s contractor for SAMS at the following address:

Department of Housing & Urban Development

Single Family Accounts Payable

P. O. Box 3579

Silver Spring, Maryland 20918-3579

G. If the Form SAMS-1106 is not Approved. If the disbursement is

not approved by the Chief Property Officer or designee or by

the authorized Certifying Officer, the Chief Property Officer

is responsible for taking corrective action.

H. Post Disbursement Review. A Headquarters accountant from the

Single Family Post Insurance Division performs a post

disbursement review of disbursement documentation submitted by

the Field for 100 written checks selected at random. Each

disbursement request package is reviewed for the presence of

case number(s), correctly totaled amounts, voucher approval by

the CPO, voucher certification by the authorized certifying

officer, including the presence of the date signed and the

certifying officer\'s stamp. The review also confirms that

there was no alteration to the original amount and/or that any

changes are appropriately initialed.

16-23 Payment Requests Returned by the SAMS Contractor. Some payment

requests may not be accepted for processing. HUD\'s contractor for

SAMS may decline to process Forms SAMS-1106 for a variety of

reasons. In such cases, the contractor shall return the entire

payment request package to the Field Office.

A. Reasons the Payment Request will not be Processed. Reasons

that the payment request will not be processed include (i) lack

of authorized signatures, (ii) altered invoices, (iii) a payee

name on an invoice which is different from the vendor name on

the Form SAMS-1106, (iv) lack of an original valid invoice or

certified copy thereof, packing slips and statements, (v) an

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16-17 5/94

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4310.5 REV-2

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invalid case number on the Form SAMS-1106, (vi) disbursements

that exceed limits established in the approved Disposition

Program, and (vii) vendor data on the invoice is not consistent

with SAMS data as recorded from Forms SAMS-1111, 1115, or 1116.

B. Identifying Payment Requests not Accepted for Processing. The

Field Office can determine which payment requests are being

returned by reviewing SAMS reports Return Invoice File Report

(AP RP RI) and Returned Transmittal Report (AP RP RT). The

Field Office shall obtain these reports daily and promptly

follow-up on payment requests that have not been processed.

Follow-up procedures are outlined in the following paragraphs.

Proper documentation shall be returned to HUD\'s contractor for

SAMS so that additional delay is avoided.

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5/94 16-18

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4310.5 REV-2

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C. Field Office Action on Payment Requests not Accepted for

Processing. Field Office action on returned Forms SAMS-1106

will vary depending on the problems detected by HUD\'s

contractor for SAMS.

1\. The Field Office may find that a Form SAMS-1106 is

returned due to apparent problems which are fully

explainable and can be quickly remedied by the Field

Office staff. Examples are incorrect name identifiers or

the omission of authorized signatures. In such instances,

the Form SAMS-1106 shall be corrected, annotated as being

approved, and resubmitted to HUD\'s contractor for SAMS.

2\. In other cases, however, the reason for the returned Form

SAMS-1106 may not be easily explained. In all such cases,

the Field Office shall identify local procedures that

permit inaccurate or incomplete payment requests and shall

take action to prevent recurrence, especially if

persistent trends of identical problems are noted. The

paragraphs which follow outline required processing for

such returned Forms SAMS-1106.

D. Chief Property Office Responsibility. Observe the following

procedures for reviewing returned payment requests for reasons

that are not readily explained. While the list is not

all-inclusive, the procedures shall be used as a guide for

other processing deficiencies that may occur. All of the

procedures, such as those that follow, shall be directed by the

Chief Property Officer. The Chief Property Officer shall also

review investigation results and ensure that proper corrective

action is taken. In no situation shall a returned Form

SAMS-1106 or supporting documentation be subsequently approved

unless the proposed disbursement is found to be proper, fully

supported and properly authorized. In all situations, the

Field Office files shall be fully documented to explain the

investigation that was performed and the basis for subsequent

approvals. If apparently fraudulent documents are noted during

the review, the condition shall be reported to the Field Office

Manager.

1\. Lack of Authorized Signatures. Obtain the authorizing

signatures and resubmit the payment request to HUD\'s

contractor for SAMS.

2\. Altered Invoice. Thoroughly investigate the reason(s) the

invoice was altered. If it is found that the alteration

was not made for the purpose of processing unauthorized

disbursements, prepare a memorandum, to be signed by the

Chief Property Officer, that both explains the reason for

the alteration and gives approval for the correct amount

of the disbursement. Attach the signed memorandum to the

payment documentation, and resubmit the disbursement

request to HUD\'s contractor for SAMS. Place a note on the

Form SAMS-1106 stating that justification for the altered

invoice is attached.

3\. Payee Name on an Invoice Different from Vendor Name on

Form SAMS-1106. Obtain the applicable retained copy of

Form SAMS-1111, 1115, or 1116 on file at the Field Office.

Compare the vendor name with the name on the Form

SAMS-1106 and note any differences. If necessary, obtain

corrected name and address information from the vendor and

prepare a new Form SAMS-1111, 1115, or 1116, as

appropriate, to update

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16-19 5/94

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4310.5 REV-2

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information in SAMS. New or revised Forms SAMS-1111,

1115, or 1116 may be forwarded concurrently with the Form

SAMS-1106. (If feasible, after considering processing

time and the possibility of paying prompt payment

penalties, consider obtaining updated name and address

information directly from the vendor, in writing.) If the

vendor name and address information is correct on the Form

SAMS-1111, 1115, or 1116 but incorrect on the Form

SAMS-1106, correct Form SAMS-1106. Place a note on the

Form SAMS-1106 stating that the payee information has been

corrected. Resubmit the corrected Form SAMS-1106 and

supporting documentation to HUD\'s contractor for SAMS.

4\. Invalid Invoice, Packing Slips, and Statements. Action to

be taken will vary depending on conditions found. If

investigation shows that the invoice is proper for

payment, prepare a memorandum, to be signed by the Chief

Property Officer, that explains the reason for the invalid

invoice, packing slips, or statements and that gives

approval for the correct amount of the disbursement.

Attach the signed memorandum to the payment documentation,

and resubmit the disbursement request to HUD\'s contractor

for SAMS. Place a note on the Form SAMS-1106 stating that

justification for the invoice is attached.

5\. Invalid Case Number on the Form SAMS-1106. To determine

the case number, use screen CM SR IQ and enter the

address, or refer to the case files if they are maintained

by address. If the case number cannot be found,

investigate the cause of the incorrect case number and

take necessary action. After the invalid case number is

resolved and the appropriate case is identified, correct

the case number on the Form SAMS-1106. Place a note on

the Form SAMS-1106 stating that the case number has been

corrected. Resubmit the payment documentation, along with

the corrected Form SAMS-1106, to HUD\'s contractor for

SAMS.

6\. Disbursements that Exceed Limits Established in the

Approved Disposition Program. The approved Disposition

Program shall be analyzed and modified, if appropriate.

Following this action, a new Form SAMS-1106 shall be

prepared, approved, and submitted to HUD\'s contractor for

SAMS.

16-24 Canceled Checks.

A. Reasons For Canceled Checks. HUD\'s contractor for SAMS will

cancel a previously issued check if:

1\. The Field Office requests cancellation of the check.

2\. It is returned, such as a check undeliverable by the U.S.

Postal Service because of an incorrect address.

3\. It remains outstanding for over six months.

Each of these conditions is discussed below.

B. Field Office cancellation Requests. If the Field Office

requests cancellation of a check, HUD\'s contractor for SAMS

follows procedures directed by the Field Office. The Chief

Property Officer shall approve all requests sent to HUD\'s

contractor for SAMS regarding check cancellations. The

approval shall be in the form of a formal memorandum signed by

the Chief

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5/94 16-20

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4310.5 REV-2

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Property Officer. The memorandum shall identify the related

Form SAMS-1106 transmittal number and the name of the vendor

and shall be attached to a photocopy of the respective Form

SAMS-1106. Internal Field Office documentation shall explain

the reason for the check cancellation.

C. Checks Returned and Checks Outstanding for Over 6 Months.

1\. In these instances, HUD\'s contractor for SAMS shall void

the check in SAMS and notify the Field Office by

memorandum to the Chief Property Officer that the check

has been voided.

2\. The memorandum from HUD\'s contractor for SAMS shall

include a copy of the voided check, shall identify the

applicable transmittal number used to process the original

check, and shall request Field Office action if a

replacement check is to be issued. The Field Office shall

file a copy of the memorandum with the respective

documentation, such as the Form SAMS-1106, that originally

authorized the disbursement.

3\. Upon receipt of a memorandum stating that a check has been

voided, the Field Office shall take action to determine if

a replacement check should be issued by HUD\'s contractor

for SAMS. If a replacement check should be processed, the

Field Office shall notify HUD\'s contractor for SAMS in a

separate memorandum signed by the Chief Property Officer.

This memorandum shall include as attachments the related

documentation, such as the Form SAMS-1106, that originally

authorized the disbursement. New or updated vendor file

maintenance forms may also be required.

D. New Forms SAMS-1111, 1115 or 1116 May Be Required. If

required, the Field Office shall forward a new or updated Form

SAMS-1111, 1115, or 1116, together with a copy of the returned

check notification, to HUD\'s contractor for SAMS. Forms

SAMS-1111, 1115, or 1116 must be verified and signed by the

Field Office Manager or designee prior to submission.

E. Retained Documentation. The Field Office shall retain copies

of the new or updated Forms SAMS-1111, 1115, and 1116, as well

as copies of all documentation related to follow-up on the

canceled check. Before filing, the returned check notification

shall be documented to show (i) the date that the new or

updated Form SAMS-1111, 1115, or 1116 was forwarded to HUD\'s

contractor for SAMS and (ii) the initials of the person taking

the action.

16-25 Real Estate Taxes, Special Assessments and the SAMS Tax Subsystem.

HUD pays real estate taxes and special assessments on acquired

single family properties. It is the responsibility of each Field

Office to provide HUD\'s contractor for SAMS with accurate taxing

authority profile data. This data is needed for anticipating and

forecasting tax payment obligations. HUD\'s contractor will

establish the profile data in SAMS at which time a unique

identifier for each taxing authority will be defined. Once the

taxing authority has been defined in SAMS, the Field Office must

establish a tax account for each acquired property by using the SAMS

Screen, Update Tax Account (TX DS TA). The status of tax account

payments for each property will be tracked and monitored through

SAMS. It is each Field Office\'s responsibility to ensure that

duplicate tax payments are avoided and that penalty and interest

charges are properly charged to either the conveyiug mortgagee or

HUD by immediately defining tax accounts in SAMS upon

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16-21 5/94

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4310.5 REV-2

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acquisition of each case. The SAMS User Handbook contains a chapter

with instructions on the use of the Tax Subsystem. Also refer to

Chapter 5, Real Estate Taxes, in this Handbook for information

regarding HUD\'s tax processing policy and procedures.

Tax payments are disbursements to vendors and, as such, are subject

to the same disbursement controls applicable to Form SAMS-1106

procedures. Certifying Officers must authorize each tax transmittal

for payment; Field Office Managers (or designees) must approve the

Form SAMS-1110, Taxing Authority Profile, before the data can be

input to SAMS by HUD\'s contractor.

A. Taxing Authorities Must Be Defined In SAMS As Legitimate

Vendors Before Tax Payments Can Be Disbursed. A separate Form

SAMS-1110, Taxing Authority Profile, is completed by either the

taxing authority or the Field Office for each tax type (i.e.,

Real Estate, City, County, etc.). Field Offices are

responsible for ensuring that tax profile data is accurate and

consistent. The Form SAMS-1110 must be signed by the Field

Office Manager or designee whose signature(s) on Form SAMS-1204

must be on file with the contractor for SAMS. (The Field

Office Manager\'s (or designee\'s) signature authorizes HUD\'s

contractor for SAMS to establish the taxing authority as a HUD

vendor in SAMS.) The approved Form SAMS-1110 is then forwarded

to HUD\'s contractor for SAMS for tax profile data to be entered

into SAMS. The Form SAMS-1110 requires no support

documentation.

B. Field Offices Create Tax Transmittal Forms Through SAMS. The

Tax Transmittal form is retrieved from SAMS after data is input

to the TX DS TB, Tax Transmittal, screen. Procedures by which

Field Offices authorize payment of the Tax Transmittal conform

to those required for approval of the Form SAMS-1106. The

Chief Property Officer (or designee) must sign as \"reviewer\",

and the Certifying Officer must sign to evidence final

authorization to pay. The Certifying Officer must also affix

his or her stamp to each Tax Transmittal. Authorized signature

forms for each Certifying Officer must be on file with HUD\'s

contractor for SAMS.

1\. Certifying Officers must check the transmittal to ensure

that appropriate tax bills are attached, that the tax

amounts equal the amount of the transmittal, that penalty

and interest charges are separately itemized, that

discounts, if applicable, are properly reflected on the

transmittal, and that the CPO or designee has initialed

each case in DM Step 8, 9, and 10 to verify that tax

payments should be disbursed for those cases by HUD\'s

contractor for SAMS.

2\. Certifying Officer authorization is not required to

reverify approval or initiate deletion of a case that has

moved from unsold to sold status (DM Steps 8, 9, and/or

10\) during the time period between preparation of the tax

transmittal and actual disbursement. HUD\'s contractor for

SAMS will continue to seek verbal instruction from the

CPO or designee regarding whether the contractor or the

closing agent will pay the tax on sold cases.

3\. Original tax bills or copies annotated with \"accept as

Original\" and signed by the tax clerk must be securely

attached to each tax transmittal form.

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5/94 16-22

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4310.5 REV-2

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C. Field Offices Must Process Returned Checks And Tax Refunds In

Accordance With Procedures Set Forth Below:

1\. Refund checks issued by the taxing authority payable to

HUD\'s contractor for SAMS will be forwarded by the Field

Office directly to HUD\'s contractor immediately upon

receipt.

2\. Refund checks issued by the taxing authority payable to

HUD are itemized on Form SAMS-1100 and deposited by the

Field Office directly to the SAMS lockbox. Each case

number applicable to the refund must be itemized on the

Form SAMS-1100. Field Offices must also mail copies of

the refund checks and other remittance information to

HUD\'s contractor for SAMS so that the contractor can

maintain an audit trail of all refunds.

3\. Checks issued by HUD\'s contractor for SAMS but returned by

the taxing authority to Field Offices require an

explanation. Field Offices must first contact the taxing

authority to ascertain the reason for the return. If the

reason is acceptable, the Field Office will mail the

check to HUD\'s contractor along with a brief memorandum

explaining why the taxing authority would not accept the

check. However, if it is determined the check was

returned in error, the Field Office will mail the check

back to the taxing authority. Field Offices are required

to retain a copy of all returned checks on file for future

reference.

D. In Certain Situations, Real Estate Taxes May Be Paid Using The

Form SAMS-1106. However, whenever a taxing authority will be

paid via accounts payable Form SAMS-1106 procedures, the taxing

authority must first be defined in the vendor data base. The

Field Office will prepare the Form SAMS-1111, Trade/Service

Vendor\'s Information, to request that HUD\'s contractor

establish the vendor identifier in SAMS. Support documentation

verifying the taxing authority\'s identity is not required.

Situations in which taxes may be paid using the Form SAMS-1106

are as follows:

1\. When paying delinquent taxes on cases closed and

reconciled prior to system conversion to SAMS, the Field

Office prepares a Form SAMS-1106 in accordance with

disbursement procedures set forth in this chapter. The

allocate post code, AO, is used. The Form SAMS-1106 is

annotated across the top of the form with \"CASE NOT IN

SAMS.\" Support documentation in the form of a tax bill,

invoice, or memorandum of explanation from the CPO must be

attached to the Form SAMS-1106.

2\. When paying delinquent taxes on reconciled cases which

have been archived in SAMS, the Field Office prepares a

Form SAMS-1106 using the allocate post code, AA. The Form

SAMS-1106 is annotated across the top of the form with

\"CASE ARCHIVED.\" Support documentation in the form of a

tax bill, invoice, or memorandum of explanation from the

CPO must be attached to the Form SAMS-1106.

3\. When reimbursing buyers for tax liabilities incurred

during HUD\'s period of ownership but not paid at

settlement, the Field Office prepares a Form SAMS-1106

using the case specific post code, TY-Tax Expense/Refund.

If the case was closed prior to conversion to SAMS or

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16-23 5/94

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4310.5 REV-2

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the case has been archived in SAMS, the allocate post

codes, AO or AA, are used as appropriate. The Office must

also prepare a Form SAMS-1112, Non-Vendor Payment

Information, so that HUD\'s contractor for SAMS can

establish a temporary non-vendor identifier for the buyer

in SAMS. Required support documentation includes either

the tax bill (original or copy) stamped \"PAID\" by the

taxing authority, the buyer\'s cancelled check evidencing

payment to the taxing authority for the tax period in

question, or a memorandum from the CPO explaining the

reason for the payment request.

NOTE: Reimbursements to purchasers for tax payments

should be the exception and occur rarely. Payment of

taxes after closing should be made directly to the taxing

authority following established procedures for processing

tax bills through the SAMS Tax Subsystem.

4\. When reimbursing closing agents for taxes paid

out-of-pocket prior to settlement to facilitate deed

recordation, the Field Office prepares a Form SAMS-1106

using the case specific post code, Ty-Tax Expense/Refund.

The closing agent\'s contract number is not included on the

Form SAMS-1106. Support documentation, including copies

of tax bills, tax certificates, title evidence, or such

other explanation as provided by the CPO, is required.

5\. When there are insufficient sales proceeds at settlement

(negative balance closings) for the closing agent to

disburse tax payments owed by HUD, the Field Office will

prepare a Form SAMS-1106 payable to the closing agent.

The case specific post code EM is used to ensure case

reconciliation. The Form SAMS-1106 is mailed to HUD\'s

contractor for SAMS immediately after settlement. A copy

or facsimile (FAX) of the HUD-1 Settlement Statement

signed by the closing agent must be attached to the Form

SAMS-1106.

16-26 Retaining Documentation. The Field Office shall retain copies of

all disbursement documentation forwarded to HUD\'s contractor for

SAMS for a period of one year.

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5/94 16-24

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4310.5 REV-2

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Chapter 16 - Exhibit

Page 1 of 2

Disbursements for Single Family Acquired Properties

Processed by

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Post Field Property Closing

Type of Disbursement Code Office Manager Agent

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Allocated Post Codes:

Archived Case Expenses AA X

Allocate Expenses AC X

Advertising AD X

Pre-Acquisition PA X X

Pre-SAMS HUD Property AO X X X

Lock Boxes & Keys LC X X

Printing PT X X

Sales Signs SG X X

Case Specific Post Codes:

Appliances AL X X

AMB Fees AM X

Appraisal Fees AP X

Building Supplies BL X X

Board-Up BR X X

Cleaning-Up & Debris Removal CD X X

Condo/HOA Fees CF X X X

Closing Agent Fees CL X X

Carpeting CR X X X

Liability Claims CS X

Defective Paint/LBP Removal DF X X X

Demolition DM X X

Exclusive Listing Broker Fee EB X X

Earnest Money Forfeiture (Return of

Previously Forfeited Funds) EF X

Electrical Work EL X X

Earnest Money Refund EM X

Evictions EV X X

Refund of Extension Fee EX X

Fuel Oil FL X X

Glass/Windows GL X X

General Repair GN X X

Heating/Air Conditioning HT X X

Lead Based Paint Escrow LN X X

Lock Changes LK X X

Masonry MA X X

Miscellaneous Other Expenses MB X X

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16-25 5/94

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4310.5 REV-2

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Chapter 16 - Exhibit

Page 2 of 2

Disbursements for Single Family Acquired Properties

Processed by

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Post Field Property Closing

Type of Disbursement Code Office Manager Agent

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Case Specific Post Codes:

Miscellaneous Sales Expenses MC X X

Miscellaneous Income-Refunds MI X X

Multiple Listing Service ML X X

Miscellaneous Major Repairs MR X X

REAM/AMB Fee - Reconveyed Cases OA X

Packaging Agent PK X X

Plumbing PL X X X

Painting PN X X X

Roofing RF X X

REAM Fee RM X

Rent Refund RT X X

Sales Incentives/Allowance SI X X X

Selling Broker Fee/Bonus SL X X

System Checks SS X X

Snow Removal SW X X

Surveying SY X X

Title Evidence Review TL X X X

Termite Treatment TM X X X

Tenant Landlord Officer TN X X

Tax Penalty TP X X

Termite Inspection TR X X X

Title Policy TT X X

Tax Expense/Refund TY X X

Utilities UT X X X

Winterizing WN X X

Water Testing WT X X X

Water/Well Drilling WW X X X

Yard Maintenance YR X X

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5/94 16-26