RD Instruction 2024-A

PART 2024 - PROPERTY AND SUPPLY

SUBPART A - ACQUISITION, SALES, LEASING AUTHORITY AND PROGRAM LOAN COSTS

## [Table of Contents]{.underline}

[Section]{.underline} [Page]{.underline}

2024.1 Purpose. 1

2024.2 Definitions. 1

2024.3 Acquisition Regulations, Policies and Procedures. 2

2024.4 Officials Authorized to Request a Contracting Officer's

Warrant. 2

2024.5 Appointment Official for the Contracting Officer's

Warrant Authority. 3

2024.6 Appointment Officials and Responsibilities for the

Leasing Program. 3

2024.7 Lease Authorities and Acquisition Regulations. 3

2024.8 Delegation Authority for Government-owned Property. 3

2024.9 Program Loan Cost Expenses Authority. 4

2024.10 Sales - Personal and Real Property. 4

2024.11 - 2024.26 \[Reserved\]. 4

2024.27 Type 60 Transactions - Stop Payment, Substitute,

Replacement and Check Cancellation. 4

2024.28 Type 60 Transactions - Emergency Payments. 6

2024.29 Administrative Expense Payments. 8

Exhibit A -- \[Reserved\]

Exhibit B -- \[Reserved\]

Exhibit C -- \[Reserved\]

Exhibit D - Program Loan Cost Expenses

Exhibit E -- \[Reserved\]

Exhibit F - Noncontractual Charges to the Revolving Fund.

Exhibit G -- \[Reserved\]

Exhibit H -- \[Reserved\]

Exhibit I - \[Reserved\]

Exhibit J -- \[Reserved\]

Exhibit K - Request for Emergency Payment

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(04-20-05) PN 385

RD Instruction 2024-A

PART 2024 - PROPERTY AND SUPPLY

SUBPART A -- ACQUISITION, SALES AND LEASING AUTHORITY AND PROGRAM COSTS

§ 2024.1 [Purpose]{.underline}.

This subpart describes the delegations of authority for sales, space
acquisitions and assignments authority for payment of noncontractual
charges and expenses.

§ 2024.2 [Definitions]{.underline}.

The following definitions apply to this subpart:

> \(a\) [Administrative Expense]{.underline} is an expense incurred in
> the normal operation of any Agency office, e.g., office supplies,
> janitorial services, advertising office hours, etc. An administrative
> expense is charged to the Agency\'s Salaries and Expenses (S&E)
> Appropriation.
>
> \(b\) [Contract Program Loan Cost Expense]{.underline} is an expense
> associated with a contractual liability, e.g., repair to a
> single-family house, appraisals, payment assistance reviews, etc. A
> contractual program loan cost expense is charged as recoverable or
> non-recoverable to one of the program accounts.
>
> \(c\) [Interest Credit and Interest Credit Assistance]{.underline}
> terms, as they relate to Single Family Housing (SFH), are
> interchangeable with the term \"Payment assistance.\" Payment
> assistance is the generic term for the subsidy provided to eligible
> SFH borrowers to reduce mortgage payments.
>
> \(d\) [Noncontractual Program Loan Cost Expense]{.underline} is an
> expense charged as recoverable or non-recoverable to one of the
> Agency\'s program accounts, e.g., property taxes, filing fees, etc.
>
> \(e\) [Nonrecoverable Expense]{.underline} is a contractual or
> non-contractual program loan cost expense [not]{.underline} chargeable
> to a borrower, property account or subsidy funds.
>
> \(f\) [Proper Invoice]{.underline} contains the appropriate
> information for the services rendered and contractual reference data
> for a contractor's request for payment. A proper invoice must include:

DISTRIBUTION: WSAL Administrative Services

Property and Supply

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## (04-20-05) PN 385 

RD Instruction 2024-A

§ 2024.2(f) (Con.)

\(1\) Name and address of contractor,

\(2\) Invoice date,

\(3\) Contract number/task/delivery order number (when applicable), (4)
Description of supplies or services rendered (including contract line
item number, price and quantity of goods and services rendered),

\(5\) Delivery and payment terms,

\(6\) The remittance name and address, and

\(7\) Individual to contact if the information listed on the invoice is
not accurate or complete.

\(g\) [Recoverable Expense]{.underline} is a contractual or
noncontractual program loan cost expense, which can be chargeable to the
borrower, property account or subsidy funds.

§ 2024.3 [Acquisition Regulations, Policies and Procedures]{.underline}.

The Federal Acquisition Regulation (FAR) establishes policies for all
executive agencies. The FAR is located at www.arnet.gov. The Agriculture
Acquisition Regulation (AGAR) provides policies for the Department of
Agriculture. The AGAR is located at
http://www.usda.gov/procurement/policy/ agar.html. The Rural Development
Procurement Operating Procedures (POPs) establish internal agency
procedures and guidance. The Rural Development POPs are located at
http://teamrd.usda.gov/rd/pmd/pop.htm. The AGAR and Rural Development
POPs are supplements to the FAR and the contracting activities must use
these regulations and procedures in conjunction with the FAR.

§ 2024.4 [Officials Authorized to Request a Contracting Officer's
Warrant]{.underline}.

The Director for Property and Supply Management Division (PSMD),
Director for Support Services Division, and Chief, Contract Operations
Branch in the Procurement Management Division of the Procurement and
Administrative Services Staff (PAS); and the State Director, or the
person acting in that official's position is:

> \(a\) The "nominating officer" that must sign the Contracting
> Officer's Warrant request form located in Departmental Regulation (DR)
> 5001-1, "Acquisition Workforce Training, Delegation, and Tracking
> System," Appendix M.

\(b\) Responsible for maintaining the quality of contracting support for
Rural Development programs by providing the Contracting Officers with
the required maintenance training as prescribed in DR 5001-1. The
maintenance training will enable the contracting officer to retain the
Certificate of Appointment.

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RD Instruction 2024-A

§ 2024.4 (Con.)

\(c\) Responsible to ensure that the request package for the Contracting
Officer's Warrant contains the appropriate information as prescribed in
DR 5001-1 prior to submitting the information to the Head of the
Contracting Activity, Designee (HCAD), for approval.

§ 2024.5 [Appointment Official for the Contracting Officer's Warrant
Authority]{.underline}.

The Director for Procurement Management Division in PAS is designated as
the HCAD to manage Rural Development's Acquisition Workforce Training,
Delegation and Tracking System. The HCAD is the appointment official
with the authority to approve contracting officer's warrant authority
for an individual. This authority may not be redelegated.

§ 2024.6 [Appointment Officials and Responsibilities for the Leasing
Program]{.underline}.

The responsibilities for the leasing program are as follows:

\(a\) The Chief for Space Management Branch under the PSMD in PAS is
designated as the Head of the Real Property Leasing Activity to issue
Rural Development's Real Property leasing warrants. This authority may
not be redelegated.

\(b\) The Director for PSMD will conduct management reviews, functional
assistance, training, etc. for the Leasing Program.

\(c\) The State Directors are responsible for the administration of the
State Leasing Program within their delegated lease authorities.

§ 2024.7 [Lease Authorities and Acquisition Regulations]{.underline}.

The authority to lease Rural Development office space is issued based on
the level of training that the individual has obtained. The Federal
Property Management Regulation (FPMR), AGAR, General Services
Administration (GSA) Regulation, FAR, and RD Instruction 2021-A are used
for the acquisition of lease requirements.

§ 2024.8 [Delegation Authority for Government-owned
Property]{.underline}.

Under the GSA and USDA Departmental authorities, sale of surplus
Government-owned personal property such as furniture and office
equipment is delegated to the Director for PSMD in PAS. The Director for
PSMD may not

redelegate the authority.

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RD Instruction 2024-A

§ 2024.9 [Program Loan Cost Expenses Authority]{.underline}.

Reference the tables in Exhibit D of this instruction for the
appropriate program authority to request contract services and to make
noncontractual payments for goods and services to meet the program needs
for the Type 60 transactions.

§ 2024.10 [Sales -- Personal and Real Property]{.underline}.

The responsibilities for personal and real property are as follows:

\(a\) [Personal Property]{.underline}. GSA is responsible for the
disposal of surplus personal property. The GSA Regional Office may
authorize the Agency to sell the surplus personal property. The sale
must be made by the official listed in § 2024.8. Reference the FPMR,
Agriculture Property Management Regulations and RD Instruction 2045-BB.
Foreclosure auctions are not included in this instruction.

\(b\) [Real Property]{.underline}. There is no dollar limitation for
disposal of inventory real property to be sold under program
instructions by Community Development Managers, Area and Local Managers,
Rural Development Managers, and State Directors authorized to execute
sales documents.

§§ 2024.11 - 2024.26 \[Reserved\].

§ 2024.27 [Type 60 Transactions - Stop Payment, Substitute, Replacement
and]{.underline}

[Check Cancellation]{.underline}.

The processes required to change payment actions are as follows:

\(a\) [Stop Payment (Check not issued)]{.underline}.

\(1\) To stop an incoming receipt or invoice from being processed
against an established purchase order, contact the National Finance
Center (NFC), Purchase Order Section Inquiry Unit in New Orleans,
Louisiana at (504) 255-4724. The contract number and the reason for
requesting stop payment actions are required. The Purchase Order Section
Inquiry Unit will flag the master file resulting in any requests for
payments rejecting in the system. The Purchase Order Section Inquiry
Unit will contact the appropriate individual(s) to inquire about the
documents release. The individual requesting the stop payment should
annotate the date and name of the person in the Purchase Order Section
Inquiry Unit that processed the request.

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RD Instruction 2024-A

§ 2024.27(a) (Con.)

\(2\) To stop a scheduled payment from being released by Treasury,
contact the Purchase Order Section Inquiry Unit at least 3 days prior to
the payment release date; and provide the contract number, invoice
number, dollar amount, and the reason why the payment should

be stopped. The individual requesting the stop payment should annotate
the date and name of the person in the Purchase Order Section Inquiry
Unit that processed the request. If the system shows that the payment
will be released within 3 days, the check cannot be stopped. The payment
release date is contained in the Treasury schedule number. The schedule
number is located on the NFC Online Inquiry System, under "SCHEDULE
NUMBER" in the upper right corner of the screen. The release date can be
identified as follows:

3rd position - Calendar Year

4th - 6th position - Julian Date Example: T21169

\(b\) [Substitute and Replacement Payments]{.underline}.

\(1\) Before requesting a replacement check, make sure the contractor's
"Remit To" address is correct and time is allowed for mailing or
electronic transfer of the payment. Contact the Purchase Order
Section\'s Inquiry Unit and provide the contract number, vendor invoice
number, and dollar amount.

\(2\) If the allowable time has passed and the contractor has no record
of receiving the payment, the appropriate Rural Development office must
reissue the payment by completing the Form AD-663, "Request for Issuance
of Substitute or Replacement Check." The

form can be prepared by the appropriate Rural Development office to
expedite the process. Also, NFC personnel can prepare the form and
forward it to the contractor for signature to certify non-receipt of the
payment. The Form AD-663 can be obtained from the Purchase Order Section
Inquiry Unit. Departmental forms are located at
http://www.ocio.usda.gov/forms/ocio forms.html. If the check was
originally issued in accordance with § 2024.28(b) of this subpart, the
individual in the field office must notify the Research and Reentry Unit
in St. Louis, Missouri at (314) 457-4031.

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(04-20-05) PN 385

RD Instruction 2024-A

§ 2024.27 (Con.)

\(c\) [Cancellation of Payment]{.underline}.

Do not return the check previously issued to the NFC. The individual
must:

\(1\) For offices that use a concentration bank to deposit their daily
receipts, payment should be deposited to the Treasury Limited Depository
Account. Complete and send the appropriate documentation including the
Form RD 1940-10, "Cancellation of U.S. Treasury Check and/or Obligation"
and a copy of the Form RD 838-B, "Invoice-Receipt Certification" to the
St. Louis, Missouri Office. Rural Development forms are located at
http://rdinit.usda.gov/regs/formstoc.html.

\(2\) For offices that do not have access to a concentration bank,
complete and send the Form RD 1940-10, a copy of the Form RD 838-B and
the payment to their whole sale lockbox.

\(3\) After the St. Louis, Missouri Office receives the cancellation
documentation, the payment cancellation transaction (e.g., L1/1L, 1K,
1X) will be processed to the Agency\'s accounting records. The St.
Louis, Missouri Office will inform NFC personnel to process the
cancellation of the payment to the system records.

\(4\) After the cancellation payment is posted to the system records,
approximately within 5 working days the payment reversal will appear on
the weekly paid activity report as a negative action.

§ 2024.28 [Type 60 Transactions - Emergency Payments]{.underline}.

Requests for emergency payments can be used for Contractual and
Noncontractual Program Loan Cost Expenses. The State Directors must
approve the issuance of emergency payments.

\(a\) [Emergency Payment by Check]{.underline}. If a payment request
Form RD 838-B was submitted to NFC and was pending an "On Hold" status
subject to the "Prompt Payment Act," the State Director may authorize
the immediate issuance of payment. A letter stating the reason for the
emergency issuance of the payment, date the funds should be paid and an
approval by the State Director must be submitted to the NFC
Certification and Disbursement Section.

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RD Instruction 2024-A

§ 2024.28 (Con.)

\(b\) [Emergency Payment by Electronic Funds Transfer]{.underline}.

\(1\) The Automated Clearing House/Electronic Funds Transfer System is
also used to process emergency checks. The State Office must complete
the Forms AD-838, "Purchase Order" and RD 838-B along with the invoice.

\(2\) Prior to processing the action to transfer the funds, send the
documents listed below via express mail to the Director for the Fiscal
and Accounting Division, Cash Management Branch, Mail Code FC-363, 1520
Market Street, St. Louis, Missouri 63103 or by facsimile to the Director
for the Fiscal and Accounting Division, Cash Management Branch at (314)
457-4374. You may call

\(314\) 457-4143 to confirm receipt of the documents.

\(i\) Form AD-838,

\(ii\) Form RD 838-B,

\(iii\) Invoice, and

\(iv\) A letter approved by the State Director that contains:

\(A\) The reason for the emergency payment,

\(B\) Date funds must be received,

\(C\) Type of payment (Loan Cost Payment),

\(D\) 9-digit routing number from the receipt bank,

\(E\) Depositor account number from the receipt bank,

\(F\) Amount of the payment, and

\(G\) Payee's name.

\(3\) The Fiscal and Accounting Division will make the payment within 24
hours after receipt of the request, provided that the established
cut-off times have been met. Discretion must be exercised in determining
whether emergency handling is necessary. If the number of requests for
emergency handling reaches an unacceptable level, restrictions on the
service may be imposed.

\(4\) If a receipt bank is not available to the field office in the
states, a check will be issued by the Fiscal and Accounting Division and
will be mailed from the Treasury Department within 2 working days after
receipt of the request. The Fiscal and Accounting Division will notify
NFC personnel when the funds or payment has been issued for proper
reporting purposes.

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(04-20-05) PN 385

RD Instruction 2024-A

§ 2024.29 [Administrative Expense Payments]{.underline}.

Expenses are classified as administrative when the reason for incurring
the expense [cannot]{.underline} be identified to a specific borrower,
acquired/inventory property account, or program fund code.
Administrative expenses are charged to the S&E appropriation.

\(a\) [Examples of Administrative Expenses are]{.underline}:

\(1\) Billing for telephone services.

\(2\) Rent and utilities for field offices.

\(3\) Janitor/janitorial supplies.

\(4\) Office equipment.

\(5\) Office supplies purchased over the counter or obtained from the
warehouse.

\(6\) Post office box rentals.

\(7\) Safety deposit/night depository rentals.

\(8\) Repairs and maintenance of office space and equipment.

\(9\) Notary fees.

\(10\) Room rentals.

\(11\) Advertising for office space, notice of office hours, or Rural
Development program services.

\(b\) [Responsibilities]{.underline}.

\(1\) [Acquisitions of Administrative Supplies and
Services]{.underline}. Individuals must use their contracting officer's
warrant or the Governmentwide commercial purchase card authority to
purchase supplies and services in accordance with policies and
procedures pursuant to the FAR, AGAR, DR or Agency-specific
instructions.

\(2\) [Area and Local Offices]{.underline}. Designated individuals in
the Area and Local Offices are responsible for expenses incurred by
their offices. Responsibilities include submitting appropriate
documentation, e.g., billings, invoices, receipts, or other evidence of
Government liability or expenses to the State Office for payment action,
unless otherwise instructed through State Office issued procedures.

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RD Instruction 2024-A

§ 2024.29(b) (Con.)

\(3\) [State Offices]{.underline}. State Directors, through their
designated administrative officers, are responsible for processing and
approving all administrative expenses incurred within their state\'s
jurisdiction.

Exhibit A -- \[Reserved\]

Exhibit B -- \[Reserved\]

Exhibit C -- \[Reserved\]

Exhibit D - Program Loan Cost Expenses

Exhibit E -- \[Reserved\]

Exhibit F - Noncontractual Charges to the Revolving Fund

Exhibit G -- \[Reserved\]

Exhibit H -- \[Reserved\]

Exhibit I - \[Reserved\]

Exhibit J -- \[Reserved\]

Exhibit K - Request for Emergency Payment

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(04-20-05) PN 385

RD Instruction 2024-A

Exhibit D

Page 1

## PROGRAM LOAN COST EXPENSES

## 

This Exhibit describes procedures for obtaining goods and services to be
paid from program loan cost funds and guidelines for non-contractual
payments to meet program needs in Rural Development. Procurement
personnel will issue contracts with commercial sources when the need is
fully supported and documented. Contracts may not be utilized; however,
to procure services where discretion is involved for decision-making
functions, which are inherently governmental.

I. [Definitions]{.underline}.

[Contractual program loan cost expense]{.underline} is an expense
associated with a contractual liability, e.g., repair to a single-family
house, appraisals, payment assistance reviews, etc. A contractual
program loan cost expense is charged as recoverable or non-recoverable
to one of the Agency\'s program loan cost accounts.

[Non-contractual program loan cost expense]{.underline} is an expense
charged as recoverable or non-recoverable to one of the Agency\'s
program loan cost accounts, e.g., property taxes, filing fees, etc.

[Non-recoverable expense]{.underline} is a contractual or
non-contractual program loan cost expense [not]{.underline} chargeable
to a borrower, property account, or subsidy funds.

[Recoverable expense]{.underline} is a contractual or non-contractual
program loan cost expense chargeable to a borrower, property account, or
subsidy funds.

[Proper invoice]{.underline} is a request for payment, which is
submitted, to the designated billing office. (See Exhibit F for invoice
requirements.)

II\. [Program Loan Cost Funding]{.underline}.

A. [Accounts]{.underline}.

Under the requirements of the Credit Reform Act of 1990, as outlined in
the Office of Management and Budget (OMB) Circular A-11 Part 5, funding
for program loan costs is divided into the following accounts for each
program area.

(12-05-07) PN 415

RD Instruction 2024-A

Exhibit D

Page 2

1\. [Salaries and Expense Account (Non-recoverable)]{.underline}: The
account used to fund all program loan cost expenses that are not
chargeable to a borrower, property account, or subsidy funds. The
National Office Budget Division allots funds for this account from the
Agency's Salaries and Expenses appropriation (Action Code "A").

2\. [Direct Loan Financing Account (Recoverable)]{.underline}: The
account used to fund all program loan cost expenses that are chargeable
to a direct/insured borrower or property account in which the loan was
obligated in Fiscal Year (FY) 1992 or subsequent years. This account
also includes expenses paid by an applicant, borrower (e.g., credit
reports), or out of subsidy funds, not chargeable to a borrower or
property account. Funding for this account is apportioned from OMB;
additional monies can only be obtained by OMB approving a
reapportionment (Action Code "R").

3\. [Liquidating Account (Recoverable)]{.underline}: The account used to
fund all program loan cost expenses that are chargeable to a
direct/insured borrower, guaranteed borrower or property account in
which the loan or primary loan was obligated prior to FY 1992. Funding
for this account is apportioned from OMB; additional monies can only be
obtained by OMB approving a reapportionment (Action Code "L")

4\. [Guaranteed Account (Recoverable)]{.underline}: The account used to
fund all program loan cost expenses that are chargeable to a guaranteed
loan or property account obligated in FY 1992 or subsequent years.
Funding for this account is apportioned from OMB; additional monies can
only be obtained by OMB approving a reapportionment.

B. [Processing]{.underline}.

Expenses to be paid from the accounts described in paragraphs II.A.1,
II.A.2, and II.A.3 will be processed through NFC's Foundation Financial
Information System (FFIS). Expenses to be paid from the Guaranteed
Account will be processed on a case by case basis through the Rural
Development Finance Office. For borrowers with multiple loans, expenses
are to be charged to the oldest outstanding like loan.

C. [Housing Program Loan Cost Funds]{.underline}.

The National Office Program Support Staff will establish annual program
loan cost (contractual and non-contractual) funding allocations for each
State Office consisting of specific dollar limits by account for Single
Family Direct and Multi-Family Housing programs. The State Director is
responsible for determining and documenting how all funds are used to

RD Instruction 2024-A

Exhibit D

Page 3

meet the needs of the State and is accountable for the use of funds.
This includes monitoring the funds to insure that the allocation is
appropriately utilized. If the State allocation is not sufficient to
meet State requirements (e.g., due to disaster designations), the State
Office may request an allocation increase. This request must be directed
to the Deputy Director, Program Support Staff, Housing and Community
Facilities Programs.

D. [Community Facilities and Water and Waste Program Loan Cost
Funds]{.underline}.

The National Office will hold all program loan cost funds for Community
Facilities and Water and Waste expenses. Field offices needing to
process a program loan cost expense must submit a request to the
appropriate Rural Development Administrator to obtain funding authority
prior to obligation. The request should be submitted to the National
Office on Attachment 2 of this Exhibit. The request can be faxed to the
appropriate Administrator to expedite processing.

III\. [Program Authority]{.underline}.

A. Program authority to obtain goods and services by contract and make
non-contractual payments is granted only as specified in this Exhibit
and must be in accordance with appropriate program regulations. However,
the State Director may submit a written request to the appropriate Rural
Development Administrator, to the attention of the appropriate Program
area for authority to contract for purposes not specifically authorized.
The request must support and document the program need.

B. Obtaining program authority to utilize contracts does not allow an
employee to award a contract. A contract can be awarded only by a duly
authorized Contracting Officer who is appointed by the Head of the
Contracting Activity in accordance with Departmental Regulation 5001-1,
\"Acquisition Workforce, Training, Delegation and Tracking System.\"

The appropriate Rural Development Administrator may make written
restrictions or revocations of any of the program authorities listed in
this Exhibit at any time.

C. Tables D-1 through D-6 of this Exhibit specify for each program area
both the program authority to utilize contracts and make non-contractual
payments and the recoverability for each category of expense. Guaranteed
Rural Housing program loan costs are not included in the Single Family
Housing Table (D-5) since they are processed manually through the Rural
Development Finance Office per paragraph II.B.

(12-05-07) PN 415

RD Instruction 2024-A

Exhibit D

Page 4

D. Redelegation of Authority.

1\. The State Director may redelegate through a State Supplement any
program authority delegated to the State Director in this Exhibit to:

a\. State Office employees within the applicable loan programs.

b\. Rural Development Managers (or other Area Office position equivalent
to the District Director position)

c\. Rural Development Specialists (or other Area Office position
equivalent to the District Loan Specialist or Assistant District
Director position)

d\. Rural Development Managers (or other Local Office position
equivalent to the County Supervisor position)

2\. If program authority is redelegated to a position at a level below
the State Office, those employees may redelegate their authority in
writing to a qualified staff member with written concurrence of the
State Director.

3\. Program Authority for contractual loan expenses may not be
redelegated to procurement personnel.

IV\. [Program Authority Code (PAC)]{.underline}.

To control funds, track expenses, and determine program authority, each
type of expense must be identified by a unique PAC. The PAC consists of
four consecutive alphanumeric characters, \[A-Z and 1-9\].

First character: Identifies the [Loan Program]{.underline} affected by
the contractual/non-contractual payment action.

Second character: Identifies the [Program Activity Phase]{.underline}.

Third character: Identifies the [General Purpose]{.underline}.

Fourth character: Provides a [Detail Description]{.underline} of the
General Payment Purpose.

RD Instruction 2024-A

Exhibit D

Page 5

All four characters of the PAC must be specified on contractual and
non-contractual documents as appropriate prior to entry in FFIS. The
State\'s procurement office should include the PAC in the FFIS at the
time of obligation, in the case of contractual obligations.

In addition to entering PAC information on the appropriate forms, the
State Office Program Director requesting program loan cost funds for
Community Facility and Water and Waste expenses must also enter this
same PAC information on Attachment 2 of this Exhibit.

Program personnel must use Tables D-1 through D-6 of this Exhibit to
identify the appropriate PAC, the program authority for the item, and
the recoverability of the item. (See Tables D-1 through D-6 for further
clarification).

First Character: Loan Program

  -- -------------------- --------------------------------------------------------------
     [CODE]{.underline}   [LOAN PROGRAM]{.underline}

                          

     B                    Business & Industry

     C                    Community Facilities

     M                    Multi-Family Housing

     S                    Single Family Housing

     W                    Water and Waste
  -- -------------------- --------------------------------------------------------------

Second Character: Program Activity Phase

  -- -------------------- --------------------------------------------------------------
     [CODE]{.underline}   [PROGRAM ACTIVITY PHASE]{.underline}

                          

     1                    [Loan Processing]{.underline} - all costs associated with
                          applying for a loan/grant. Costs in this category include loan
                          application reviews, appraisals of potential collateral,
                          credit history checks (credit bureau reports), etc. This code
                          is appropriate to use until a loan is actually closed.

                          

     2                    [Loan Servicing]{.underline} - all costs associated with
                          normal servicing of a loan. Costs in this category include
                          protective advances, payment assistance reviews, year-end
                          analysis, taxes (Taxes cannot be paid if the borrower has
                          escrowed funds), etc. This code is [not]{.underline}
                          applicable when custodial responsibility has shifted to the
                          Agency or acquisition/liquidation process has begun, i.e.,
                          after the date of acceleration.
  -- -------------------- --------------------------------------------------------------

(12-05-07) PN 415

RD Instruction 2024-A

Exhibit D

Page 6

  -- ----- --------------------------------------------------------------
     3     [Custodial Property Management]{.underline} - all costs
           associated with managing and maintaining property when the
           Agency has custodial responsibility. Costs in this category
           include utilities, lawn mowing, changing locks, etc. Custodial
           responsibility begins when a borrower has abandoned collateral
           property and the Agency is maintaining it to protect the
           Government's security interest.

           

     4     [Property Acquisition/Liquidation]{.underline} - all costs
           associated with voluntary or involuntary
           acquisition/liquidation of security property. Costs in this
           category include appraisals, foreclosure expenses, etc. For
           housing, this code would be applicable when the Agency has
           accelerated the loan(s) and should be used until the date of
           foreclosure/date title is transferred to the Government
           (acquired) or sold to a third party at the foreclosure sale.

           

     5     [Inventory Property Management]{.underline} - all costs
           associated with managing acquired/inventory property. Costs in
           this category include sales commissions, appraisals, repairs,
           improvements, taxes, lawn mowing, and utilities.
  -- ----- --------------------------------------------------------------

Third Character: General Purpose

  -- -------------------- --------------------------------------------------------------
     [CODE]{.underline}   [GENERAL CONTRACT/NON-CONTRACTUAL PURPOSE]{.underline}

                          

     A                    Inspections

     B                    Appraisals

     C                    Analysis and Audits

     D                    Information Services

     E                    Other Services

     F                    Maintenance/Management

     G                    Repairs/Improvements

     H                    Real Estate Broker (Exclusive Listing)

     I                    Real Estate Broker (Open Listing)

     J                    Environmental

     K                    Asset Investigation

     L-M                  Reserved

     N                    Non-contractual Payments

     O-X                  Reserved

     Y                    Managerial

     Z                    Other
  -- -------------------- --------------------------------------------------------------

RD Instruction 2024-A

Exhibit D

Page 7

Fourth Character: Detail Description

The detail description codes are subcategories under each general
purpose code. They are the same for each program area; however, the
program authority to contract or make non-contractual payments may vary
between program areas.

V. [Non-contractual Charges to the Program Loan Cost
Accounts]{.underline}.

A. [General]{.underline}.

This section establishes and prescribes the policies and procedures
related to paying non-contractual charges from the program loan cost
expense funds by NFC. An employee does not need a contracting officer
warrant to process non-contractual charges. The procedures in this
section (Section V.) apply only to payments for the following:

> 1\. Taxes on behalf of the borrower, or the Agency if it has acquired
> the property. If the borrower has funds escrowed with the Centralized
> Servicing Center (CSC), taxes must be paid from those funds.

2\. Insurance by the Agency on behalf of the borrower where an unusual
and severe hazard exists and/or insurance is necessary to protect the
Government\'s lien or interest in the borrower\'s property (e.g., flood
insurance). If the borrower has funds escrowed with the CSC, insurance
must be paid from those funds.

3\. Prior liens and junior liens under special circumstances.

4\. Utilities on acquired or custodial properties.

5\. Other miscellaneous expenses such as judgments, satisfaction of
mortgage (out-of-pocket), and financing statements, etc.

Obligation and payment of non-contractual items will be processed
utilizing Form RD 2024-30 "Non-Contractual Program Loan Cost Expense
(PLCE) Certification". Detailed instructions are found in the Form RD
2024-30 Forms Manual Insert (FMI). In order to expedite the processing
of the obligations and disbursements, the NFC's FFIS software will be
used.

(12-05-07) PN 415

RD Instruction 2024-A

Exhibit D

Page 8

B. [Proper invoice requirements]{.underline}.

1\. Invoices shall be submitted to the office specified in the
contractual document. (See Exhibit F for invoice requirements)

2\. When a vendor's invoice is not available, Rural Development requires
a substitute invoice be prepared.

3\. A Rural Development prepared invoice must be signed and dated by the
payee. Attachment 1 to this Exhibit is an example of a Rural Development
substitute invoice.

NOTE: The invoice number should be prefixed with \"RD\" followed by a
sequentially assigned number, e.g., RD1, RD2, etc.

A receipt must support all Rural Development prepared invoices or
billing retained with the office file copy of the Form RD 2024-30.

C. [Agency required forms]{.underline}.

Form RD 2024-30 will be submitted for obligations and payment requests,
with the original vendor\'s invoice or a substitute invoice. A copy of
the vendor\'s/payee\'s invoice or bill shall be attached to the
Agency\'s copy of the Form RD 2024-30 and retained in the preparing
office to support the requested payment. In situations where no invoice
was submitted, complete Attachment 1 of this Exhibit and attach it to
the Form RD 2024-30. In addition, for Community Facilities Programs and
Rural Utilities Programs requests, all applicable invoices should be
submitted to the National Office with Attachment 2 of this Exhibit.

Recoverable charges to the subsidy account (e.g., mediation, Single
Family Housing property appraisals) require use of the Direct Loan
Financing Account funding. To disburse funds to pay these charges,
Action Code "R" is used on Form RD 2024-30 and the borrower's ID is left
blank.

D. [Filing requirements]{.underline}.

In accordance with RD Instruction 2033-A, all related documentation
(e.g., copies of invoices, justification, funding documents, etc.)
required in support of Forms RD 2024-30 shall be attached to a copy of
the form for retention in the preparing office. For recoverable costs

RD Instruction 2024-A

Exhibit D

Page 9

charged to a borrower or property account, duplicate copies of invoices
and Form RD 2024-30 shall be placed in position two of the applicable
borrower or Real Estate Owned (REO) property case file.

Title 48 of the Code of Federal Regulations, Section 4.8, prescribes the
requirements for establishing, maintaining and disposing of contract
files.

E. [Approving Officials]{.underline}.

The approving official for non-contractual charges is identified in
Tables D-1, D-2, D-3, D-4 \[RESERVED\], D-5 and D-6 of this Exhibit.

## o0o

(12-05-07) PN 415

RD Instruction 2024-A

Exhibit D

Attachment 1

## Rural Development Invoice

Invoice Number: [RD]{.underline} Date:

FFIS MY Document Number:
[\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_]{.underline}

FFIS TY Document Number:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Remit to Name and Address:

Brief description of goods or services as appropriate:

Payment Terms:

Invoice Amount: [\$]{.underline}

Payee\'s Signature Date:

## o0o

(12-05-07) PN 415

RD Instruction 2024-A

Exhibit D

Attachment 2

## FISCAL YEAR PROGRAM LOAN COST EXPENSE

## HOUSING & COMMUNITY FACILITIES PROGRAMS -- COMMUNITY PROGRAMS 

## RURAL UTILITIES PROGRAMS - WATER AND WASTE

## RURAL BUSINESS-COOPERATIVE PROGRAMS -- BUSINESS PROGRAMS

State: Account:

Contact Person: Fax No.:

Telephone Number:

Program Authority Code (PAC):

(Loan Program) (Program Activity)

(General Purpose) (Detail Description)

Program Authority Required: (Indicate Yes/No)

Recoverable Non-recoverable

Description of Request:

**[CONTRACTUAL]{.underline}** **[NON-CONTRACTUAL]{.underline}**

Inspections

Appraisals Real Estate Taxes

Analysis and Audits Insurance

Information Services (including flood)

Other Services Other (Explain)

Maintenance & Management Utilities\*

Repair/Improvement **TOTAL**

Exclusive Broker

Open Listing Broker \* Attach copies of

Environmental vouchers and/or documents.

Other Field Contracting

Credit Bureau Reports

**TOTAL**

State Director

Concurrence: Date:

Associate Administrator/Deputy Administrator

**TO BE COMPLETED BY NATIONAL OFFICE:**

Account Balance after this obligation:

Initials:

Date:

o0o

(12-05-07) PN 415

Exhibit D, Table D-1 through D-6 are located at
(http://teamrd.usda.gov/rd/rhs/index.htm) under Program Support Staff,
then select Rural Development Program Authority Code (PAC) Codes.

RD Instruction 2024-A

Exhibit F

Page 1

[Noncontractual Program Loan Costs]{.underline}

This exhibit establishes and prescribes the policies and procedures
relating to the payment of noncontractual program loan cost expenses. A
program official does not need a contracting officer warrant to process
noncontractual charges.

[Noncontractual payments]{.underline}

The procedures in this exhibit apply only to those expenses that meet
the following criteria:

1\. Payment of real estate taxes on behalf of a borrower or after the
Agency has acquired the property.

2\. Payment of insurance by the Agency on behalf of a borrower, where an
unusual and severe hazard exists and/or insurance is necessary to
protect the Government\'s lien or interest in the borrower\'s property
(e.g., property insurance, flood insurance, or title insurance).

3\. Payment of prior liens and junior liens under special circumstances.

4\. Utilities on acquired or custodial properties.

5\. Protective Advances.

6\. Legal fees, recording and release fees.

7\. Services (including noncontractual legal services) incurred in
connection with foreclosures or voluntary conveyance.

8\. Other non-contractual program loan cost expenses as authorized by RD
Instruction 2024-A, Exhibit D.

Payment of noncontractual items will be processed utilizing Form RD
2024-30, "Non-contractual Program Loan Cost Expense (PLCE)
Certification," and an applicable invoice.

(05-16-07) PN 409

RD Instruction 2024-A

Exhibit F

Page 2

[Proper invoice requirements]{.underline}

1\. Invoices shall be submitted to the Rural Development issuing office
authorizing the payment. The invoice must include the following
information and/or attached documentation in order to constitute a
proper invoice:

a\. The complete MY and TY document numbers assigned in the Foundation
Financial Information System (FFIS).

b\. The complete \"Remit To\" name and address of the vendor/payee to
whom the check will be made payable and mailed.

c\. Invoice amount, number, and date.

d\. Description, price, and quantity, as appropriate.

2\. When a vendor\'s invoice is not available, e.g., reimbursing
employees for out-of-pocket expenses, etc., it will be necessary for
Rural Development to prepare an invoice. A Rural Development prepared
invoice must be signed and dated by the payee. Attachment 1 to this
exhibit is an example of a Rural Development invoice.

[NOTE]{.underline}: The invoice number should be prefixed with \"RD\"
followed by a sequentially assigned number, e.g., RD1, RD2, etc.

All Rural Development prepared invoices must be supported by a receipt
or billing retained with the office file copies of Form RD 2024-30.

[Agency required forms]{.underline}.

Form RD 2024-30 will be submitted for noncontractual obligations as well
as payment requests. A copy of the vendor\'s/payee\'s invoice or bill
shall be attached to the Agency\'s copy of Form RD 2024-30 and retained
in the preparing office to support the requested payment. In those
situations where no invoice was submitted, complete Attachment 1 to this
exhibit and attach it to the Form RD 2024-30. For many of these
transactions, Form RD 2024-30 can include both obligation and payment
information for processing.

RD Instruction 2024-A

Exhibit F

Page 3

[Filing requirements]{.underline}.

In accordance with RD Instruction 2033-A, all related documentation\
(e.g., copies of invoices, justification, etc.), required in support of\
Form RD 2024-30 shall be attached to it for retention in the preparing
office.

[Approving Officials]{.underline}.

The approving official for noncontractual charges is identified in
Exhibit D of this instruction.

oOo

(05-16-07) PN 409

RD Instruction 2024-A

Exhibit F

Attachment 1

## Rural Development INVOICE

Invoice
Number:RD\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_

MY Document Number: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Remit to Name and Address:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Brief description of goods or services as appropriate:

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Payment Terms: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Invoice Amount:\$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Payee\'s Signature:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

oOo

(05-16-07) PN 409

RD Instruction 2024-A

Exhibit K

## REQUEST FOR EMERGENCY PAYMENT

TO: Fiscal Control Branch

ATTN: Team 3

FAX: (314) 457-4374

email: dcfo-fcb2@stl.usda.gov

[EMERGENCY CHECKS]{.underline}:

I am requesting an emergency check be issued and mailed as indicated
below:

Payment amount
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Payee name \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Payee address
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date funds must be received
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

[FINANCE OFFICE ELECTRONIC FUNDS TRANSFER]{.underline}:

I am requesting an electronic funds transfer be made as indicated below:

Payment amount
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date funds must be received
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

9-digit bank routing number [(Obtained from receiving bank)]{.underline}

Bank Name, City, and State
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Depositor\'s/payee\'s

account number [(Obtained from receiving bank)]{.underline}

Payee name \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

(04-26-06) PN 397

RD Instruction 2024-A

Exhibit K

Page 2

For **Contractual** Obligations I certify to the following:

-This request is an emergency and must be received by the date\
indicated above.

-The State\'s allocation is sufficient to cover this payment request.

> -The type 60 obligation has been established and sent to the Finance
>
> Office.

-Copies of the Form AD-838, \"Purchase Order,\" Form RD 838-B,\
\"Invoice-Receipt Certification,\" and Invoice are attached.

For **Non-Contractual** Obligations I certify to the following:

-This request is an emergency and must be received by the date\
indicated above.

-The State\'s allocation is sufficient to cover this payment request.

-The type 60 obligation has been established and sent to the Finance

Office.

-Copy of the Form RD 2024-30, \"Non-Contractual Program Loan Cost
Expense

(PLCE) Certification\" and Invoice are attached.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

STATE DIRECTOR OR

DESIGNATED OFFICIAL

oOo