# Presentation: 473464

## Letters of CreditGrants/Cooperative Agreement/Contracts

- Reengineered Process
- NSSC Transition
- Sept 23, 2008

## Agenda

- Grant Processes
- DPM Notice
- FAQ
- Costing
- Schedule – Grantee Community
- Schedule – Resource Community
- Key messages
- Q & A

## Division of Payment Management Notice to Grantees

##  Grant Process

| Step | Current Process |   | Re-engineered Process |
| --- | --- | --- | --- |
| 1 | NASA uses Department of Health & Human Services Payment Management System (DHHS/PMS) to administer Letter of Credit for advanced payments to educational institutions, public and private organizations, and state and local governments |  | No change |
| 2 | DHHS/PMS is updated w/ the latest authority available for drawdown at the Grantee level (eg SJSU, Stanford U, etc.) |  | On a daily basis, an authority file is uploaded to DHHS/PMS  at the Grant award level (ie. Purchase order) |
| 3 | Grantees make periodic drawdowns at Grantee level for their estimated needs and cost is recorded  |  | Grantees will make drawdowns against individual grants  |
| 4 | Drawdowns are posted in the NASA financial system by Financial Management Division (FMD) |  | No change |
| 5 | Interface distributes drawdown amounts to individual grants based on a standard algorithm since SF272 disbursement reports are only available quarterly |  | Process no longer needed |
| 6 | When quarterly SF272 is received, FMD reverses all transactions and reposts actual costs/disbursements according to individual grants |  | Process no longer needed |

## FAQ 

|   | Question | Answer |
| --- | --- | --- |
| 1 | Will the system automatically post disbursements to
oldest funds first? | Yes |
| 2 | How does the system allocate funds? sequentially, 
prorated, or by percentage?  | Oldest funds first |
| 3 | Can the center or the grantee select the fund? (what is
the lowest level?) | System selects by oldest funds at the fund level |
| 4 | Is there a way to predestinate amounts to specific WBS
elements? | No |
| 5 | Will it effect posting if material group is not corrected | No |
| 6 | Consequences if material group not corrected? | Agency audit issue |
| 7
 | We have a contract at ARC that is a hybrid. It is a
NASA Contract in which the vendor is paid by letter of
Credit drawdown. Since the payments for this contract are processed in the same fashion as
grants through the PMS system, are they also
generally prohibited from recording
obligations from Oct 1 thru Nov 2?  | All LOC’s whether they are grants or contracts will be
prohibited from recording obligations from Oct 1 thru Nov2. |
| 8
 | Are Grantees going to be penalized for excess
drawdowns? | Ledetria is in process of obtaining a waiver from OMB.
Needs Terry Bowie’s signature. |

## Costing

##  Grants Re-engineering &  NSSC Transition Schedules 2008-Grantee Community

_**August **_
- Aug. 31- Account set up cut-off date for new awards **(Done)**
_**September **_
- Sept. 15 - Last day to submit Purchase Requisitions (PRs) for incrementally funded grants to be obligated by the NSSC before fiscal year end
- Sept. 26 - Last day for Grantee drawdown/costs for activities through Sept. 30
- Sept. 30- Last day for NSSC to obligate funds on Grants (funding through Nov. 2)
_**October **_
- Oct. 1 - First day for Grantee drawdown/costs for October (It is important for technical organizations to assist in the communication of this drawdown/costs cut off date to Grantees)
- Oct. 3 - Last day for Grantee drawdown/costs for October
- Oct. 8 – Early submission of 4th Quarter (July-September) SF 272 disbursement report from Grantees to NASA (normally due October 22)
- Oct. 31 - The Financial Management Division will post 4th Quarter (July-September) SF 272 reports and all drawdown/costs from October 3 in the financial system
_**November **_
- Nov. 3 - DHHS/PMS system re-opens for new obligations, new accounts and drawdowns/costs

##  Grants Re-engineering &  NSSC Transition Schedules 2008-Resource Community

_**August **_
- Aug. 31- Account set up cut-off date for new awards **(Done)**
_**September **_
- Sept. 15 - Last day to submit Purchase Requisitions (PRs) for incrementally funded grants to be obligated by the NSSC before fiscal year end
- Sept. 26 - Last day for Grantee drawdown/costs for activities through Sept. 30
- Sept. 30- Last day for NSSC to obligate funds on Grants (funding through Nov. 2)** **
_**October **_
- Oct. 1 - First day for Grantee drawdown/costs for October (It is important for technical organizations to assist in the communication of this drawdown/costs cut off date to Grantees)
- Oct. 3 - Last day for Grantee drawdown/costs for October
**Oct. 8** - Early submission of 4th Quarter (July-September) SF 272 disbursement report from Grantees to NASA (normally due October 22), including a spreadsheet w/distribution of one month (October) drawdown by individual grant.
**Oct. 15-**** **FMD will email to specific resource personnel with amount of drawdown by individual grant for specific WBS distribution
**Oct. 21-**** **Selected resource personnel return spreadsheet w/ WBS distribution to FMD for posting in SAP
- Oct. 31 – Last day for FMD to post 4th Quarter (July-September) SF 272 reports and all October drawdown/costs in the financial system
_**November **_
- Nov. 3- DHHS/PMS system re-opens for new obligations, new accounts and drawdowns/costs

## Key Messages

_**For Grantee Community**_
- New grants must be set up by August 31 (Done)
- Purchase requests must be submitted by September 15
- Grantees must drawdown October cost during October 1-3 timeframe to _ensure no work stoppage_
- No Grantee drawdowns from October 4 thru November 2
_**For Resource Community**_
- Purchase requests must be submitted by September 15
- Costs for drawdowns thru October will be in SAP after October 31
- Strongly encourage grantees to drawdown October cost during October 1-3 timeframe to _ensure no work stoppage_
- No Grantee drawdowns from October 4 thru November 2

## Q & A