United States Department of the Interior 

BUREAU OF RECLAMATION 

Mid·Pacific Regional Office 

2800 COll age Way 

Sacramento. CA 95825· 1898 

!' RE!'l.\' K~fI:R 10 

MP-3400 

WTR-1.00 YUN 04 lll14 

Subject: Historical Reconciliation and Billing for Cenlral Va lley Project (CV P) Water 

Contractors wilh an Abnormal Advance Account Balance 

Dear Water Contractor: 

Through previolls correspondence. lhe Bureau of Reclamation (Reclamation) has 1100 ifi ed evp 

water contractors crlllc status crlhe on-going historical reconc ili ation process for contractor 

monthly advance accou nts. as well as, the intended treatment of contractor accounts wit h 

abnormal balances. 

Reclamation has 1WO linancia l systems Ihm int erface (0 record contractor water and evp 

mitigation and restoration fund charges. The Bureau of' Reclamatio n Water Operations and 

Record Keeping System (BO RWORKS) collects water delivery informat ion, and the Federa l 

Business Management System (FBMS) tracks financial infornlation, incl uding customer advance 

payments. Atthe end of each month, the two systems interface to post contractor water charges 

and eyp mitigation and restoration fund charges. 

As part of this process, individual contractor monthl y advance accounts are checked for sufficient 

funding to pay the monthly charges tha! are to be posted. In Reclamation's legacy Federal 

Financial System (FFS), if suflicielll funds were not available in a cOlllractor's advance accou nt. 

an abnormal balance was created. An abnorma l ba lance indicates that there is either an error in 

the recordi ng of a contrnctor's water charges, or an underpayment of water charges. 

In November 201 3, Reclamation transitioned from its old FFS system to the new FBtvlS system. 

The new FBivlS system will not allow contractor Illolllhly advance accounts to create an abnormal 

balance. As a rcsul!, all contractor monthl y ad vance accounts with abnormal balances have to be 

reconciled to idelllify the cause for the abnormal balance. This reconciliation is necessary to 

ensure that contractor charges arc correct and that Reclamation has received payment for all 

appropriate charges. 

The purpose of'this lette r is to provide info rmation regarding: 

• The number oreyp water contractors with abnorma l balances, 

• Reclamation's process for recovering any underpaid monthly charges, and 

• Treatment or abno rma l balances in FBMS. 
Subject: Historical Reconciliation and Billing for Central Valley Project (CVP) Water 2 

Contractors with an Abnormal Advance Account Balance 

CVP Water Contractors with Abnormal Balances 

Currently, there are 100 long-term CVP water contractors with abnormal balances in their 

advance account. Ofthe 100 contractors, 25% have abnormal balances less than $1,000; 64% 

have abnormal balances between $1000 and $100,000; and 11 % have abnormal balances greater 

than $100,000. 

Reclamation's Process for Recovering any Underpaid Charges 

If you are among the 100 CVP water contractors with an abnormal balance in your advance 

account, you will be receiving a historical reconciliation package in the mail within the next 60 

days that will identify: 

• The month and year that water charges may have been underpaid, 

• The total amount due to Reclamation, and 

• Remittance instructions for payment. 

Each contractor who receives a historical reconciliation package will be allowed 60 days to 

review and verify any amounts identified as underpaid. Reclamation is committed to helping 

contractors through this process, and we will make ourselves available to answer any questions 

that you may have. Additionally, we are willing to meet one-on-one with individual contractors if 

requested. 

Only those contractors with an abnormal balance in their monthly advance account will receive a 

historical reconciliation package. If you do not receive a historical reconciliation package, this 

means that your monthly advance account currently has sufficient funding to pay for your 

monthly water charges. Any other concerns regarding contractor account balances will be 

addressed separately from the abnormal balance reconciliation effort. 

Treatment of Abnormal Balances in FBMS 

As previously mentioned, the new FBMS system has embedded internal controls to prevent 

abnormal monthly advance account balances from occurring. Therefore, receivables will be 

created in FBMS for those contractors who have abnormal balances per their historical 

reconciliation. Receivables will not be created until after contractors have had a full 60 day 

period to review and verify any amounts due. If no response is received from a contractor after a 

60 day period, a receivable will be created in FBMS and a bill will be sent. Contractors will have 

30 days from the date of the bill to pay the amount due. If not paid within 30 days, interest and 

penalties will be applied as appropriate until the bill is paid in full. 
Subject: Historical Reconciliation and Billing for Central Valley Project (CVP) Water 3 

Contractors with an Abnormal Advance Account Balance 

In the future, for each month that a contractor's monthly advance account does not have sufficient 

funding to pay current charges, a receivable will be created and a bill will be sent. The 

Reclamation Project Act of 1939, Section 9 (c), requires CVP water contractors to pay two 

months in advance for anticipated water deliveries. This legislation, as well as the terms of the 

water service contract, authorizes Reclamation to ensure proper collection of water charges. 

If you have any questions regarding historical reconciliations, abnormal advance accounts, or the 

billing process, please contact Ms. Anne Brafford at 916-978-5368, abrafford@usbr.gov, or by 

TTY utilizing the Federal Relay System 800-877-8339. 

Autumn Wolfe 

Acting Regional Financial Manager