NASA Procedures and Guidelines
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NPR 9680.1B Eff. Date: August 13, 2015 Cancellation Date: December 14, 2020	NASA's Grants and Cooperative Agreements Advance Payments
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Chapter 1. Financial Management of Advance Payments

1.1 Overview

This chapter provides requirements for NASA's financial management of grants and cooperative agreements with regard to advance payments. As directed in OMB's uniform guidance, the default payment method will be an advance payment for recipients except where they have demonstrated an inability or unwillingness to maintain written procedures or a financial management system; or have shown to pose a risk during Agency review, and reimbursement rather than advance payment is imposed as a specific condition to the award.

1.2 Advance Payment Requirements

1.2.1 In accordance with 2 CFR §200.305 Payment, NASA uses an advance payment method of financing to aid in minimizing the time elapsing between the transfer of funds from Treasury and the disbursement by the non-Federal entity, whether the payment is made by electronic funds transfer or issuance or redemption of checks, warrants, or payment by other means. The advance payment allows the recipient to withdraw cash concurrently with disbursements. Advance payment mechanisms include, but are not limited to, Treasury check and electronic funds transfer and should comply with applicable guidance in 31 CFR Part 208.

a. NASA uses the advance payment method unless the awarding organization has determined that the recipient has not met the minimum criteria for advance payment. The recipient will demonstrate a willingness to maintain:

(1) Written procedures that will minimize the time elapsing between the drawdown of funds and their disbursement.

(2) Financial management systems that meet the standards as established in 2 CFR §200.302 Financial Management.

(3) When applicable, specific conditions as set by the awarding organization. (See 2 CFR §200.207).

1.2.2 If the recipient is unable to meet these criteria and has been determined to not have enough working capital when the reimbursement method is designated, NASA may provide cash as a working capital advance with subsequent reimbursement payments. Under this modified advance payment method, NASA would advance a cash payment to the recipient to cover estimated disbursement needs for an initial period, which is generally based on the recipient's disbursing cycle. Refer to 2 CFR §200.305 (b)(4) for additional information on the use of this method.

1.3 Advance Payment Administration

1.3.1 NASA uses a servicing provider, currently the Department of Health and Human Services/Payment Management Services (DHHS/PMS), to provide Federal funds to recipients, to include educational institutions, other public or private organizations, and state and local governments. DHHS/PMS will provide instructions to the recipients for requesting funds through the payment management system (PMS).

1.3.2 NASA pays states in accordance with 31 CFR Part 205 and I TFM 4A-2000.

1.3.3 Recipients will submit requests for funds electronically through the PMS that (a) are the minimum amount of funds needed; and (b) are scheduled so that cash drawdowns coincide with actual, immediate cash requirements.

1.3.4 Recipients will promptly refund any balances of undisbursed cash that NASA has provided to them that are not authorized to be retained by the recipient for use in other projects. The only exceptions to the requirement for promptly refunding undisbursed cash balances are when:

a. The funds will be disbursed by the recipient within seven calendar days.

b. The funds are less than $10,000 and will be disbursed within 30 calendar days.

1.3.5 If the request for funds was made erroneously, the recipient shall contact its financial institution and request that the payment be returned. The recipient is responsible for promptly remitting funds to DHHS/PMS and noting the reason, e.g., excess funds, funds not spent, or interest. Instructions for returning funds are on the DHHS/PMS Web site under funding requests, http://www.dpm.psc.gov/grant_recipient/funding_requests/returning_funds.aspx?explorer.event=true. DHHS/PMS reports any interest collected on excess Federal funds to the designated grant officer at the NASA Shared Services Center (NSSC) Finance Office or Goddard Space Flight Center Finance Office (GSFC CFO) and to the Treasury.

1.3.6 Records created in the process of financial management of Federal awards will be maintained and disposed of in accordance with NASA Records Retention Schedules (NRRS) 1441.1, as provided in National Archives and Administration Records (NARA) general record schedules requirements, http://www.archives.gov/records-mgmt/grs.html.

1.4 Advance Payment Account Closure.

1.4.1 Upon completion of the grant or cooperative agreement, the NSSC/GSFC CFO will reconcile the final Federal Financial Report (FFR) to DHHS/PMS and, when appropriate, initiate subaccount closure in DHHS/PMS. The reconciliation is forwarded to the NSSC/Center Closeout Department to complete the close-out process. For grant or cooperative agreement closeout, refer to the NASA GCAM.

1.4.2 If during closeout, a determination is made that the recipient has undisbursed cash that is not authorized for use in other projects, the recipient is required to promptly refund those balances. In accordance with 2 CFR §200.345, NASA will take measures to collect the undisbursed cash when a refund has not been processed within the identified timeframe.

1.5 Roles and Responsibilities

1.5.1 The Agency CFO/Deputy CFO (Finance) shall:

a. Review, update, and approve the annual service-level agreement between NASA and the grant payment service provider.

b. Maintain policy on NASA's grants and cooperative agreements advance payment requirements.

c. Ensure the Continuous Monitoring Program (CMP) control activities are maintained and completed and the results are evaluated.

1.5.2 The Grant Officer shall:

a. Comply with NASA financial management and grants and cooperative agreement policies, as well as the TFM and OMB regulations and guidance.

b. Administer the award in accordance with 2 CFR Part 200, this NPR, and the terms set forth in the grant or cooperative agreement.

1.5.3 The NSSC/GSFC CFO shall:

a. Comply with NASA financial management and grants and cooperative agreement policies, as well as the TFM and OMB regulations and guidance.

b. Serve as liaison between the recipient, DHHS/PMS personnel, and grant offices, as required by:

(1) Receiving the recipient's payment packages and forwarding to DHHS/PMS for processing.

(2) Assisting DHHS with the establishment of accounts for the new recipient.

(3) Monitoring and reconciling drawdowns.

(4) Preparing the quarterly FFR status report and forwarding to designated grant officers.

(5) Reconciling the final FFR and forwarding the reconciliation to the NSSC close-out team.

(6) Receiving and processing DHHS/PMS refunds (through Intragovernmental Payment and Collection (IPAC)) into appropriate U.S. Standard General Ledger (USSGL accounts).

1.5.4 Center CFOs shall monitor grants in accordance with the CMP.

1.5.5 Recipients shall comply with NASA and DHHS/PMS requirements for advance payment (2 CFR §200.305) and the terms set forth in the Federal award to ensure a continuation of advance payments.

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