# Presentation: 167765

## eLOCCS Training: Operating Fund Payments  

**Public Housing Financial Management Division****Office of Public and Indian Housing**
- US Department of Housing and Urban DevelopmentJanuary 7, 2002

## Introduction 

- PHAs must use *e*LOCCS (electronic Line of Credit Control System) to drawdown operating subsidy
*e*LOCCS replaces the paper form HUD-52721 and is a quicker and more accurate way to request funds

## Previous Method: Establishing Obligation

- FO approves form HUD-52723, *Operating Fund Calculation of Operating Subsidy*, and sends to Fort Worth Accounting Center
- Fort Worth Accounting Center enters obligation from form into the Program Accounting System (PAS)
- LOCCS will automatically retrieve information from PAS

## Previous Method: Requesting Payments 

- PHA submitted form HUD-52721, *Direct Disbursement Payment Schedule Data*, as part of operating subsidy eligibility package
- FO reviewed paper form, approved predetermined payment schedule, sent to Fort Worth Accounting Center
- Subsequent revisions followed same procedures

## Previous Method: Program Area

- A67P, the original LOCCS Operating Subsidy program area code, was query only for FOs and PHAs

## New Method: Establishing Obligation

- Same as Previous Method:
- FO approves form HUD-52723
- Fort Worth Accounting Center enters obligation into PAS
- LOCCS retrieves information from PAS

## New Method: Requesting Payments 

- PHAs will use internet to access *e*LOCCS for query and drawdown purposes
- FOs will review request only if it exceeds threshold edits
- Payments requested as needed so no need for revisions

## New Method: Program Areas

**OFND**, the LOCCS program area code for Operating Fund Program, allows query and drawdown capabilities for PHAs and query and review for FOs
- A67P, the previous code, is still valid but only has historic data

## New Method:  Budget Line Items (BLIs)

- Two BLIs were established for OFND:
- BLI 1000 – Operating Subsidy
- BLI 2000 – Retained Disbursement

## New Method:  Budget Line Items (BLIs)

- BLI 1000 – Operating Subsidy:
-  PHAs can only drawdown funds from      BLI 1000
- Obligation amount from PAS will automatically populate this BLI

## New Method:  Budget Line Items (BLIs) 

- BLI 2000 – Retained Disbursement
- PHAs can not drawdown funds from BLI 2000
- If necessary to retain portion of obligation, FO can move amount to BLI 2000

## New Method:  Deobligation 

- If funds are deobligated, amount first taken from BLI 2000
- If amount retained in BLI 2000 not enough, funds then withdrawn from    BLI 1000

## New Method: Budget Period 

- Previously, LOCCS A67P automatically assumed PHA had 12-month budget
- OFND will now calculate budget periods using fiscal year beginning (FYB) and fiscal year end (FYE) dates

## New Method: Drawdown

- PHA may drawdown funds as frequently as once per day
- FOs should encourage PHAs to drawdown multiple times per month as funds are needed

## Advantages of eLOCCS 

- Most PHAs already use *e*LOCCS for other PIH program areas which eases transition
- Eliminates form HUD-52721 (other forms in operating subsidy eligibility package remain same)
- Provides flexibility in requesting funds

## Payment Transition

- Payments scheduled for disbursement through 12/31/02 were picked up by LOCCS on 12/27/02 and disbursed as scheduled
- Payments scheduled for disbursement after 12/31/02 were moved into the undisbursed balance category in *e*LOCCS for PHAs to drawdown

## Payment Transition (continued)

- As of 12/30/02, all PHAs must use *e*LOCCS to drawdown operating subsidy funds

## Accessing eLOCCS

- Only accessible to PHAs (FOs can monitor activity through LOCCS)
- Accessed through Real Estate Assessment Center’s (REACs) firewall at www.hud.gov/offices/reac/index.cfm

## Accessing eLOCCS (continued)

- “Getting Started Guide” available at www.hud.gov/offices/cfo/finsys.cfm
- Each PHA should have Secure System Coordinator who can assign LOCCS link to Secure Systems ID

## Vouchers 

- PHAs will request funds using **OFND** Voucher      HUD-50080
- Voucher on HUD forms at www.hudclips.org/sub_nonhud/html/forms.htm
- PHA must have hard copy signed by Executive Director and retained for PHA’s records before requesting funds

## Threshold Edits

- Two threshold edits regulate maximum drawdown amounts:
*Per month calculated threshold*
*Cumulative calculated threshold*
- If funds requested in given month exceed **both** edits, subject to FO review

## Per Month Calculated Threshold (Threshold edit 1) 

- To calculate, must identify:
- Subsidy amount.  Same as obligation in LOCCS
- # months **in** budget period.  Calculated using FYB and FYE
- Calculation:
- (Subsidy amount)  (# months **in** budget period)
- Example:
- PHA has 12-month budget
- Threshold = subsidy amount  12

## Request Compared to Per Month Calculated Threshold

- Total amount that would be disbursed during the given month (including current request) is compared to the *per month calculated threshold*

## Cumulative Calculated Threshold (Threshold edit 2)

- To calculate, must identify:
*Per month calculated threshold*.  Threshold edit 1
- # months **into** budget period.  Calculated using FYB and date disbursement will be made
- Calculation:
- (*Per month calculated threshold*)  (# months **into** budget period)
- Example:
- PHA is 4-months into its budget period
- Threshold = *per month calculated threshold*  4

## Request Compared to Cumulative Calculated Threshold

- Total amount that would be disbursed to date during the PHA’s current budget period (including current request) is compared to the *cumulative calculated threshold*

## Threshold Example 

- PHA has $120,000 subsidy amount and      12-month budget
*Per month calculated threshold* = $10,000 ($120,000  12)
- PHA requests following amounts...

## Threshold Example (continued) 

- Month 1:  $10,000		No Review
- Does not exceed *per month calculated threshold* of $10,000 so system does not consider *cumulative calculated threshold*
- Month 2:  $8,000		No Review
- Same reason as Month 1
- Month 3:  $10,000		No Review
- Same reason as Months 1 & 2

## Threshold Example (continued)

- Month 4:  $12,000		No Review
- Failed threshold edit 1:
- 		$12,000 request exceeds *per month **	**calculated threshold* of $10,000
- Passed threshold edit 2:
- 		Total amount disbursed of $40,000                          	($10,000 + 8,000 + 10,000 + 12,000) **will ****	****not** exceed *cumulative calculated threshold* 	of $40,000 ($10,000  4)

## Threshold Example (continued) 

- Month 5:  $14,000		**FO review ****	****	****Request exceeds both edits**
- Failed threshold edit 1:
- 		$14,000 request exceeds *per month **	**calculated threshold* of $10,000
- Failed threshold edit 2:
- 		Total amount disbursed of $54,000** ****	**($10,000 + 8,000 + 10,000 + 12,000 + 	14,000) **will** exceed *cumulative calculated **	**threshold* of $50,000** **($10,000  5)

## Threshold Example (continued) 

- Month 6:  $10,000		No review
- Passed threshold edit 1:
- 		$10,000 request does not exceed *per month **	**calculated threshold* of $10,000
- No need to consider *cumulative calculated threshold* since threshold edit 1 was not exceeded

## Threshold Example (continued)

| Month | Request | Review ? | Total to date |
| --- | --- | --- | --- |
| Month 1 | $10,000 | No review
Passed edit 1 | $10,000 |
| Month 2 | $8,000 | No review
Passed edit 1 | $18,000 |
| Month 3 | $10,000 | No review
Passed edit 1 | $28,000 |
| Month 4 | $12,000 | No review
Failed edit 1
Passed edit 2 | $40,000 |
| Month 5 | $14,000 | Review
Failed edit 1
Failed edit 2 | $54,000 |
| Month 6 | $10,000 | No review
Passed edit 1 | $64,000 |

## Notification of Review 

- If request requires FO review, *e*LOCCS will indicate to PHA when voucher has been sent for FO review
- PHA should call and/or email FO
- FO should monitor Q10 screen in LOCCS, *Outstanding Vouchers for Review*

## Automatic Review 

- Automatic review is a function that requires every request submitted by a PHA to go for FO review
- When can automatic review be used?
- FOs should only flag troubled PHAs under detailed review

## Approval or Rejection of Requests 

**Guideline:**
- Refer to payment schedule from previous year

## OFND Access for FO

- All Financial Analysts must have “Field Office Administration” access to OFND and “Query” access to A67P

## OFND Access for FO 

**Financial Analysts who already have “Field Office Administration” access to programs in LOCCS:**
**Amend Form HUD-27054-A**.  Request “Field Office Administration” access to OFND and “Query” access to A67P
- Existing users may fax forms to (202) 708-4350, attention CFO security

## OFND Access for FO

**New financial analysts and financial analysts with query access only:**
**Prepare form HUD-27054-A**.  Request “Field Office Administration” access to OFND   and “Query” access to A67P
- Complete and submit a Limited Background Investigation (LBI) package if have not had LBI in past 15-years
- Mail form to CFO Security Office

## OFND Access for FO 

**Limited Background Investigation (LBI)** package contains:
**SF-85P** (95 edition only), *Questionnaire for Public Trust Positions*
**SF-87**, *Fingerprint Chart*
**OF-306**, *Declaration of Federal Employment* (only needed if never had NACI)
*Fair Credit Reporting Authorization*

## OFND Access for FO

- New financial analysts and financial analysts with query access only must mail forms to:
- HUD Headquarters
- CFO Security Office
- Attn:  LOCCS Security Officer—Rm 3114
- PO Box 23774, SW
- Washington, DC  20026-3774

## Interim Coverage for FO

- FO staff members with “Field Office Administration” access can submit an amended form HUD-27054-A adding OFND.  These are:
- Staff with “FO Administration” access to the Capital Fund Program (CFP) in LOCCS
*e*LOCCS coaches with “FO Administration” access to any program

## OFND Access for PHAs 

- PHA staff members who already have Capital Fund Program (CFP) access in *e*LOCCS will automatically have OFND access with same rights

## OFND Access for PHAs 

**If the PHA staff member needs eLOCCS access:**
**Submit form HUD-27054**. Request OFND access and forward to the local FO.  The form can be downloaded through www.hudclips.org/sub_nonhud/html/forms.htm
- FO should then mail form to CFO Security Office

## Questions 

- You will have opportunity for questions following demonstration
- If further questions arise, email Funding_&_Financial_Management_Division@hud.gov