# Presentation: 216732

## Managing Contract Assignments

- Mary Grande

## Assignments

- An ***Assignment of Payment*** occurs when a participant on a contract designates in writing via form CCC-36 that the money from the contact that will be paid to the participant should be sent to an alternate recipient.  The alternate recipient usually is not a participant on the contract itself.  An example would be when the participant designates that the payments due to him should be redirected to a feed store, or grain elevator, or to repay a bank loan.

## Assignments

- An FFIS Vendor Code on the payment that is different from the Vendor Code on the original obligation is necessary to initiate a payment assignment and consists of the participant tax id _and a sequentially added additional alpha character_.
- The 1099G is sent to the participant not the assignee.

## Assignments

- More than one assignment may be recorded against a contract—there is no limit.
- The assignments are given an order of precedence, for the contract and for the participant (vendor) and is determined by the effective date of the assignment.
- The highest precedence assignment will be fully paid before payments are made to the next highest assignment.
- Assignments are both against a contract balance and against the participant shares when multiple participants with multiple assignees are present.

## Assignments

- Assignments are paid first, before money is paid to the contract participant.
- The entire amount of the payment will be paid to the assignee, unless the balance remaining in the assignment is less than the amount of the payment.
- If the first priority assignment is fulfilled, the remainder of the payment  will go to the second priority assignment or, if none, to the contract participant (principal vendor) who requested the assignment.

## Assignments

- The assignments don't differentiate between TA and FA.  They are at the participant/contract level.  So any payment made to a vendor that has an active assignment, gets made to the assignee, regardless of where the funding comes from.
- Critical business process to get implemented correctly since it is nearly impossible to recover over-payment to an assignee.
- When in doubt about doing an assignment correct: ask!

## Assignments: Step 1

**ONLY** use this assignment window from Participant Info when setting up **new** assignees, creating new assignment **balance** records with an existing assignee, or **revoking **existing assignments.

**NOTE YELLOW TO ACTIVATE**

## Step 2: New Assignee

## Assignments: Multiple Assignees

**ONLY** use this assignment window from Participant Info when setting up **new** assignees, creating new assignment **balance** records with an existing assignee, or **revoking **existing assignments

**No limit on number of assignees**

## Assignments: Payment Shares

- Do NOT set up assignments for participants with zero shares, no payments will occur.

## Assignments: Review Existing Status

- Information available from Participant Info and from Payment Instructions.

## Assignments: Proposed Changes

## Step 3: Payment of Existing Assignee(s)

## Step 4: Changing Assignee at Payment

- If you determine this is the wrong assignee at payment instructions, enter a “ Revoke Assignment Date” to prevent the assignment, and “Save Assign Payment”. Select  “Assign Payment” to select existing assignee to create a new assignment balance record or to create a new (non-duplicate) assignee.

## Assignments: Monitor in Fund Manager

## Assignments: Training Material

- Slides have been distributed and posted on my.nrcs/programs/ ProTracts Training Materials.
- Document has been distributed with language familiar to Vendor Coordinators.