Subject Number: 

FIN- 7 [U·S· DEPARTMENT OF THE INTERIOR 

OFFICE OF SURFACE MINING~rranmu--=.--:ttal:-:-:-Num-be:-r-: --i 

RECLAMATION AND ENFORCEMENT 69o 

DIRECTIVES SYSTEM .. .; 1 1 a -~~~ 1 

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, -I Title: Director 

OSM/103 

1. Purpose. This directive establishes policies and procedures for 

the administration of Office- of Surface Mining Reclamation and 

Enforcement (OSM) reimbursable agreements where OSM is the supplier 

of goods and/or services to a non-federal entity. These 

reimbursements currently include: 

a. Interagency Personnel Act Agreements. 

b. Sale of Mine Maps. 

c. Sale of vehicles. 

d. Copy fees. 

2. Summary. 

a. The administration of OSM Programs includes providing support 

through goods and services to non-Federal entities. Some of this 

support is provided on a reimbursable basis such that the customer 

reimburses OSM through a billing procedure after the goods or 

services have been received. Consequently, the reimbursement program 

has no impact on OSM appropriated funds. 

b. Reimbursable orders (agreements) should only be written when 

such orders are in the best interest of the Government and within 

OSM's authority to cooperate with such agencies or individuals. 

There are two types of reimbursements (self-generating and formal 

agreements) . 

c. To the extent possible, reimbursable funds are budgeted, 

controlled, and accounted for at the same level as appropriated funds 

(e.g., signature authority, document flow through procurement and 

budget channels, etc.). 

3. Definitions and Acronyms. 

a. Inter-Agency Agreement. A written agreement with another 

Federal agency to establish a reimbursable order for goods and/or 

services (See OSM Directive PRC 7-1, "Interagency Acquisitions 

(Agreements)"). 

7/22/86 
b. Supplier. The agency providing the required goods or 

services for which reimbursement will be received. (OSM is the 

supplier as it pertains to this directive.) 

c. Receiver. The agency requesting the goods and/or serVices 

for which reimbursement will be made from its appropriated funds. 

d. Interagency Personnel Act Agreements (!PAs). An agreement 

for the loan or detail of personnel by a Federal agency to a nonFederal entity (as defined in Title 5, U.S.C. 3371-3376) for which 

partial or full reimbursement will be made to the furnishing agency. 

e. Direct Account Number. This account number represents an 

accounting cost center used in the Advanced Budget and Accounting 

Information System (ABACIS) to record obligations, accrued 

expenditures, and disbursements which uses authority granted directly 

to OSM by Congress. Funds for this account are provided directly to 

OSM by Treasury. 

f. Reimbursable Account Number. This account number also 

represents an accounting cost center in ABACIS within which 

obligations, accrued expenditures, disbursements, bills, and 

collections are recorded. Authority to expend money out of this 

account has been established by virtue of a reimbursable agreement. 

Funds for this account are provided by the ''receiving 11 activity. 

Cash is recorded in ABACIS after the service or goods have been 

provided and billed, and payment received. This account number is 

differentiated from direct account numbers by the letter "R" in the 

third to the last digit. 

g. Activitv. An organizational entity which has the authority 

to enter into an agreement or obligate budget authority. 

h. Budget Authoritv. Passed by Congress in appropriation acts 

and apportioned by the Office of Management and Budget (OMB), direct 

and reimbursable budget authority is made available for obligation 

through the budget process. Availability to an activity is provided 

by means of a financial plan issued by the Budget Staff and entered 

into ABACIS by the Division of Financial Management (DFM). The 

combination of the direct and reimbursable authority determines the 

total authority available in the respective activity's budget. 

However, reimbursable authority can not be used for any other purpose 

than that authorized by the receiving agency. Thus, direct costs can 

not be charged against a reimbursable authority. 

i. Anticipated Reimbursement Authority. Current year budgetary 

estimate of funds to be collected from states or other Governmental 

agencies in exchange for goods and/or services to be provided. They 

are identified with the appropriation under which the goods and/or 

services are to be provided. DFM enters OSM's anticipated 

reimbursement authority by appropriation into ABACIS from the 

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"Activity Allotment Program Reports" (DI520) or the "Apportionment 

and Reapportionment Schedule" (SF132) prepared by the Budget Staff. 

These reimbursable funds are not immediately available for 

obligation. Only after a financial plan has been prepared and 

entered into ABACIS do these funds become available for obligation. 

j. Formal Reimbursable Agreements. These agreements are used to 

provide goods and/or services to other Federal agencies and nonFederal entities. They are initiated and monitored by the 

negotiating activities in close coordination with appropriate OSM 

procurement, personnel, budgeting, and accounting offices. Such 

agreements include IPA agreements with state agencies and Memorandum 

of Understanding with other federal agencies (PRC 7-1). 

k. Self-Generating Reimbursements. These reimbursements are 

based on appropriation language which provides for the use of 

specific receipts from sales or services (e.g., the sale of mine maps 

and copy fees authorized under the Title 43 U.S.C. Part 1460 and the 

sale of vehicles authorized under the Federal Property Management 

Regulations Part 101-46.304 "Availability of proceeds of sale."). 

These reimbursements are also initiated by the supplying activities 

in coordination with appropriate OSM budgeting and accounting 

offices. Budget authority becomes available for obligation of these 

receipts after a financial plan has been entered into ABACIS. 

1. Reimbursable Order. An 11 order 11 is any firm authorized formal 

agreement to furnish goods or services on a reimbursable basis. This 

order must be reduced to a written agreement and must be accompanied 

with a "Request Form for Reimbursable Services" (Appendix l); and can 

only be recorded in the financial system through the issuance of a 

financial plan by the Budget Staff. The financial plan will increase 

the funds available to OSM (in the respective reimbursable account) 

for obligation. 

m. ABACIS. Advanced Budget and Accounting Information System 

used in OSM for recording all accounting transactions and budgetary 

authority. 

n. DI-1040 Bill for Collection. This document is used to bill 

non-Federal entities. 

o. ATDR. Accounting Transaction Detail Report is a monthly 

report distributed to activities showing obligations, expenditures, 

disbursements, and collections. 

4. Policy/Procedure. 

a. Concept. 

(1) Policy. It is the policy of OSM to enter into formal 

reimbursable agreements with State agencies whenever the object 

represents a problem of common interest; the solution will directly 

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aid OSM in carrying out its responsibilities and programs; and/or the 

economy of the agreement will benefit the Government, but will not 

increase OSM's cost of operation. The determination to enter into 

such an agreement must take into consideration the following factors: 

(a) The work must be encompassed within OSM's normal 

and legal authority; 

(b) The agreement is to provide some unique or special 

skill, service, or facility that is not available elsewhere; 

(c) The work is not something that can be done, or is 

being done satisfactorily by privately-owned establishments, or more 

appropriately by another agency; and 

(d) The work will not deter, delay, duplicate, or 

preclude activities or programs authorized under appropriations made 

directly to OSM by Congress. 

(2) Authority. Agreements with other Federal agencies are 

covered in OSM Directive PRC 7-1 in "Interagency Acquisitions 

(Agreements)" authorized under the Economy Act of 1932 (31 U.S.C. 

1535). Interagency Personnel Act agreements are authorized under 

Title 5, U.S.C. 3371-3376. Officials authorized to approve 

interagency agreements are designated in the OSM Directive OPM-5 11 Delegation of Authority 11 • Self-generating reimbursements are 

authorized under the Title 43, U.S.C. Part 1460 for mine map sales 

and copy fees and under Federal Property Management Regulations Part 

101-46.304 "Availability of Proceeds of Sale" for vehicle sales. 

(3) Preliminary Arrangement. OSM officials authorized to 

enter into reimbursable agreements, or their designated 

representatives, may enter into preliminary written or oral 

communications pursuing the possibilities of undertaking work by 

means of a reimbursable agreement. These discussions must not be 

binding on OSM but should determine the capability and willingness to 

cooperate, the cost, method of financing, reporting requirements, and 

any other information deemed necessary to successfully execute an 

agreement. 

(4) Negotiation. Following preliminary discussions the 

agreement will be prepared for negotiation by an official authorized 

to sign reimbursable agreements under OPM-5-1 11 Delegation of 

Authority11 • Assistance in the preparation of agreements should be 

sought from the appropriate office channels and DFM for financial 

language. Final review of all proposed agreements will be conducted 

by the responsible office prior to signature by the approving· · 

official. The purpose of this review is to insure that the agreement 

adequately addresses the contractual aspects including: 

(a) Statement of purpose and description of the work to 

be accomplished clearly identifying the product and the performance 

standards. 

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(b) Funding arrangement. Provisions for billing, 

description of the method for transferring funds between the agencies 

(e.g., frequency and required approvals) an estimate of the total 

funding anticipated for the agreement. 

(c) Period of the agreement. Beginning and ending 

dates of the effort encompassed by the agreement. 

(d) Identification of the principal contacts delegated 

responsibility for administration of the agreement. 

(e) Indirect cost. Regulations allow bureaus to 

recover indirect costs/overhead according to Departmental Manual Part 

346, Cost Recovery to perform reimbursable work. The decision to 

charge indirect costs should be coordinated when developing the 

agreement. If indirect costs are determined appropriate, procedures 

for charging and computation of such costs should be coordinated with 

DFM. 

(5) Format of Agreements. Formal agreements should be kept 

simple and concise and may be in any format acceptable to both 

parties, for example, correspondence letters or memorandums of 

agreements as long as all of the above information is included. 

b. Stages of Reimbursements. 

(1) Receipt of Reimbursable Authoritv. Reimbursement 

authority must be apportioned to OSM by OMB as provided by Congress 

under appropriation authority. This is based on the anticipated 

reimbursements included in the Fiscal Year Budget Submission prepared 

by the Budget Staff. 

(2) Orders Received. 

(a) A formal reimbursable 11 order 11 must include a copy 

of the formal agreement and the "Request Form for Reimbursable 

Services" with the estimated dollar amounts of supplies or services 

to be delivered. Self-generating reimbursables are projected 

annually on a "Request Form for Reimbursable Services 11 based on 

anticipated receipts. 

(b) The receipt of reimbursable orders from activities 

must be recorded to increase the activity(s) budgetary authority by 

the anticipated cost of the reimbursable good and/or services 

requested by the receiving agency. The subsequent accounting 

transactions under the reimbursable account number can be monitored 

on the Accounting Transaction Detail Report (ATDR) which is 

distributed to the activities monthly. 

(c) Any change in the reimbursable estimated amount, 

when identified, must be submitted to preclude an overobligation of 

available budget authority. If an order is reduced without proper 

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notice and obligations are greater than the estimated amount at the 

end of the fiscal year, an overobligation of funds could result. 

This would constitute a violation of 31 U.S.C. 130l(a) &134l(a). If 

it becomes apparent that the costs are going to exceed the order, an 

amended order should be negotiated. 

(3) Earned Reimbursements. Reimbursements are earned based 

on the actual delivery of goods and/or services to the receiver. 

After the terms of the agreement have been met, an adjusted 

reimbursable order or a final completion notice must be submitted to 

deobligate any remaining balances and close out the account. A 

clause in a personnel agreement allowing adjustments to the estimate 

for possible fluctuations (e.g., step increases, fringe benefit 

coverage, or period covered) will permit automatic coverage of 

increases and the deobligation of the unearned balance. When a 

reimbursement is earned, an accounts receivable is posted for which 

DFM will issue a bill to the receiver. If billing amount is unclear, 

the supplying office is required to furnish sufficient information to 

DFM for issuance of a bill (Appendix 2). 

(4) Collection Stage. Collections which can be monitored on 

the ATDR under the reimbursable account number are recorded after the 

receiving agency has been billed and payment received. The amount 

recorded as a collection for each completed reimbursable order must 

equal the reimbursement earned. Collections cannot exceed 

reimbursements earned. 

c. Responsibilities. 

(1) The negotiator(s) for an agreement will insure that: 

(a) the agreement is within the purview of the 

regulatory guidance specified herein; 

(b) procurement, budgeting, and accounting offices are 

kept informed; 

(c) procedures for processing agreements have been 

followed; 

(d) goods and/or services are provided with respect to 

the terms of the agreement; 

(e) sufficient information (Appendix 2), as necessary, 

is made available in a timely manner for recovery and billing for 

goods and services provided; and 

(f) accounting data in their reports reflect accurate 

costs for the goods and/or services rendered. 

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(2) The Bud~et Staff will insure that: 

(a) The effective and efficient operation of the OSM 

Reimbursement Program. 

(b) the agreement is within the purview of the 

budgetary regulatory guidance specified herein; 

(c) budgetary authority is properly requested, 

distributed, and reported as required to cover all reimbursable goods 

and/or services provided. 

(d) reimbursable costs are charged to the correct 

program under the appropriation law; and 

(e) allocations do not exceed budgetary authority. 

(3) The Division of Financial Management will insure that: 

(a) the agreement is within the purview of the 

accounting regulatory guidance specified herein; 

(b) proper accounting procedures are used in recording 

reimbursable transactions (i.e., budgetary authority, obligations, 

expenditures, disbursements, bills, and collections) into the 

automated accounting system; and 

(c) bills are prepared and issued for goods and 

services provided under reimbursable agreements. 

(d) reports prepared with reimbursable accounting and 

budgetary data are accurate and timely. 

(e) obligations do not exceed the budgetary authority 

for any one reimbursable account. 

d. Procedures. 

(1) Negotiator. 

(a) The negotiators of the agreement must submit 

through their proper approving channels an annual "Request Form For 

Reimbursable Services" with the original signed agreement to the 

Budget Staff for issuance of a financial plan. For those agreements 

which cross fiscal years, a new request form must be submitted 

annually at the beginning of each fiscal year. Also, each year the 

negotiating activity will submit to their respective operations 

office budget section an estimate of anticipated reimbursements with 

their fiscal year budget submissions. During the fiscal year, any 

changes to any anticipated reimbursable projects must be forwarded 

immediately through budget channels to the Budget Staff with a copy 

to DFM, Attention: Chief, Programmatic Accounting Section. 

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Pertinent data from the agreement will be listed on the request form 

including: 

1. Requesting Office 

z. Type of Agreement (IPA, other) 

}. Name and SSN of personnel, if applicable. 

~. Effective dates of the agreement (Beginning 

and ending dates) 

2. Brief description of services to be 

provided. 

£. Payment provisions for billing (frequency, 

conditions, billing address, etc.) 

1. Name and telephone number of the OSM 

official who will approve payments. 

~- Name and telephone number of the receiver's 

billing official. 

2. Name and telephone number of the receiving 

and supplying technical representatives. 

10. Amount of funds to be obligated for current 

fiscal year (see C. Availability of Funds). 

11. Estimated fiscal year amount by object 

class except where appropriation law permits an agreement to cross 

fiscal years and where all the funds are anticipated to be obligated 

by the end of the current fiscal year. IPAs are not subject to this 

exception. 

12. Other information required to establish a 

financial plan will also be provided such as the activity or federal 

program supplying the goods or services. This will aid in developing 

a reimbursable account number to incur the costs and collect the 

reimbursement. 

NOTE: The DFM cannot begin collection activity on a reimbursable 

agreement until all the information listed above is received. 

(b) The activity offices will also be responsible for 

tracking reimbursable costs separately from direct costs to insure 

obligations and expenditures are applied correctly. They should 

notify the Budget Staff and DFM with any observed discrepancies. 

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(2) Budget Staff 

(a) The Budget Staff will establish, monitor and 

control the funding of the overall OSM Reimbursable Program to 

include projections and budget authority. 

(b) All anticipated fiscal year reimbursements by 

appropriation will be included in the fiscal year DI520s and SF132s 

forwarded to DFM. Any changes will be updated quarterly by 

appropriation to DFM using the DI52ls. This information is based on 

activity(s) fiscal and mid-year budget submissions and any changes 

received during the fiscal year. 

(c) The Budget Staff will forward the original 

agreement and request form annotated with the account number, to DFM 

for establishment of the reimbursable account and institution of the 

billing process. The billing address for the paying agency should be 

furnished with the forwarded agreement copy. 

(d) For self-generating reimbursements as defined 

above, the Budget Staff will establish reimbursable program controls 

and reimbursable accounts to be credited with the receipts. 

Financial plans will be prepared and issued at the beginning of each 

fiscal year and during the fiscal year as changes occur. 

(e) The Budget Staff will review the ATDR to ensure 

internal control throughout the fiscal year. 

(3) Division of Financial Management. 

(a) DFM will record budget allocations (the financial 

plans) into ABACIS within the earlier of 15 days or the end of the 

month to insure availability to the user. 

(b) DFM will maintain copies of all formal and selfgenerating reimbursable agreements and/or authority. DFM will record 

reimbursable budget authority, obligations, expenditures, 

disbursements, bills, and collections in ABACIS. On a quarterly 

basis for the first three quarters and monthly for the last quarter 

of the fiscal year, DFM will transfer to reimbursable accounts any 

expenditures charged to direct accounts which were funded under 

reimbursable agreements (e.g., !PAs). (Note- the transferring of 

expenditures from a direct account to a reimbursable account will 

make available funds in the direct accounts in the amount of the 

transfer to spend on OSM mission objectives.) 

(c) DFM will bill for goods and services provided in 

accordance with the terms of the written reimbursable agreement and 

information from the supplying office (See Appendix 2). 

(d) DFM will report reimbursable accounting information 

to the Department of the Treasury, the Office of Management and 

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Budget, and the Department of the Interior in the monthly, quarterly, 

and annual reports required by these agencies. 

(e) DFM will monitor and coordinate with the Budget 

Staff and the supplying activities all reimbursable accounting 

transactions and controls. 

5. Reporting Requirements. 

a. Internal Reporting. Accounting reimbursable data will be 

included in the monthly operating reports furnished to the field and 

will be recorded in the Advanced Budget Accounting Control 

information System (ABACIS). 

b. External Reporting. DFM will report reimbursable accounting 

data to the Department of the Treasury, the Office of Management and 

Budget, and the Department of the Interior in the monthly, quarterly, 

and annual reports required by these agencies. 

6. Effect on Other Directives. None. 

7. References. 

a. Principles of Federal Appropriation Law, Chapter 6, pages 

6-17 through 22, and 6-25 through 27. 

b. United States Code, Title 43, Part 1460, "Copy Statutes" 

c. United States Code, Title 5, Parts 3371-3376, "Assignments to 

and from States." 

d. Federal Property Management Regulations, Part 101-46.304 

"Availability of proceeds of sale." 

e. OSM Directive, OPM-5, "Delegations of Authority". 

f. OSM Directive, PRC-7-l, "Interagency Acquisitions 

(Agreements)". 

g. United States Code, Title 31, Part 1535, "Agency Agreements". 

8. Effective Date. Upon issuance. 

9. Contacts. 

Chief, Branch of Accounting, Division of Financial Management 

(303) 236-0334, FTS 776-0334. 

Chief, Budget Staff, FTS 268-2829 

10. Keywords. Reimbursements, Supplier. 

11. List of Appendices. 

Appendix l "Request Form for Reimbursable Agreements 11 

Appendix 2 ''Bill of Collection Request Form'' 

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Instructions: Use this form to 

Authority and the establishment 

for which OSM is the supplier. 

Washington, D.C. with a copy to 

Accounting Section. 

Fiscal Year 

Requesting Office 

Office Code (Supplying Office) 

REQUEST FORM FOR 

REIMBURSABLE SERVICES 

APPENDIX 1 

request current Fiscal Year Reimbursable Obligation 

of a reimbursable account number for any service agreement 

Fill out the form and send to the Budget Staff, 

Division of Financial Management, ATTN: Programmatic 

Type of Agreement (IPA, detail. MOU, etc.) 

Name of Employee (if applicable) _____________________________ SSN ________________ ___ 

Begin/End Dates ---------------------------------------------------------------------

Object Class (Current FY Estimate) 

Personnel 

Benefits 

Travel 

Trans 

Rent 

Print 

Other 

Supplies 

Equipment 

Grants 

Total Estimated Amount 

Purpose of Service Agreement ~(~B~r~i~e~f~d~e~s~c~r~i~p~t~i~o~n~) ____________________ _ 

Assistant Director or 

Chief, Division of Administrative Services 

Budget Officer 

Reimbursable Account Number