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NPR 9630.1
Effective Date: July 10, 2017
Expiration Date: March 30, 2024
Printable Format (PDF)

Subject: Accounts Payable and Disbursements

Responsible Office: Office of the Chief Financial Officer

| TOC | Preface | Chapter1 | Chapter2 | Chapter3 | Chapter4 | Chapter5 | Chapter6 | Chapter7 | Chapter8 | Chapter9 | Chapter10 | Chapter11 | Chapter12 | Chapter13 | AppendixA | AppendixB | AppendixC | ALL |

Chapter 2 Accounts Payable

2.1 Identification

2.1.1 Accounts Payable are amounts owed by NASA for goods and services received from, progress in contract performance made by, and rents due to other entities.

2.1.2 Accounts Payable include the following:

a. Amounts owed for goods and other property purchased and received.

b. Amounts owed to vendors, contractors, grantees, and lessors for services performed and accepted.

c. Amounts owed at the end of the accounting period under programs for which no further performance of service by payees is required (such as annuities, insurance premiums, and some cash grants).

d. Interest incurred on late payments and refunds due but not paid.

2.2 Recognition

2.2.1 When NASA accepts title to goods, whether the goods are delivered or in transit, the NASA Center shall recognize a liability for the unpaid amount of the goods. If invoices for those goods are not available when financial statements are prepared, the amounts owed will be estimated.

2.2.2 When NASA receives services performed by others that conform to the requirements of the contract or agreement, the NASA Center shall recognize a liability for the unpaid value of the services received.

2.2.3 NASA adheres to accrual-based accounting and Centers shall therefore not delay the recognition of a liability based on the availability of funds and disclose the accounts payable not covered by budgetary resources.

2.3 Recording Accounts Payable

2.3.1 NASA records all accounting transactions in the core financial system using the appropriate United States Standard General Ledger (USSGL) accounts. Pro forma entries can be found on the Treasury BFS Web site.

2.3.2 The required documentation for recording accounts payable is the following:

a. For Goods. Documentation showing the quantities and a receiving document with the dates goods were received and accepted by NASA. Such quantities will be based on actual counts of the items delivered by the vendor.

b. For Service Performed. A confirmation that NASA has received the services and they were satisfactorily performed.

2.3.3 Documentation. Amounts recorded as payables will be supported by documentation showing the basis for the amount recorded and the terms of payment.

2.3.4 Intragovernmental Payables. Accounts Payable resulting from transactions with other Federal agencies are intragovernmental transactions and are recorded separately from amounts owed to the public.

2.3.5 Accrued Cost. In accordance with 31 U.S.C. § 3512(e), NASA uses accrual-based accounting and therefore records cost in relation to accounts payable. Refer to NPR 9060.1A for specific guidance on documenting and recording accrued cost by category of cost incurred. Depending on the nature of that transaction, cost may be charged to operations immediately, i.e., recognized as an expense of the period, or to an asset account for recognition as an expense of subsequent periods.

2.4 Reconciliations and Verifications of Accounts Payable

2.4.1 Continuous verification and reconciliation of accounts payable balances are required to ensure the integrity of the accounts payable transaction data and the general ledger account balances in the core financial system.

2.4.2 NASA Headquarters has identified relationships and reconciliations used to validate proper general ledger account postings in the CMP. Refer to the CMP for detailed information on the account relationships, reconciliations, and other accounts payable control activities that are to be executed on a monthly, quarterly, and yearly basis.

2.5 Accounts Payable in Closed Appropriation Accounts

2.5.1 Pursuant to 31 U.S.C. §1552, an appropriation account available for a definite period is closed and any remaining balances in the account are to be canceled on September 30th of the fifth fiscal year after the period of availability for obligation of the appropriation. Canceled balances are not available for obligation or expenditure for any purpose. An appropriation account may also be closed and balances canceled, whole or in part, by legislative action.

2.5.2 The NASA Centers are required to identify the accounts payable balance remaining on a legitimate obligation at the time the appropriation account is closed. NASA will adhere to OMB Circular A-11 and TFM Volume I, Part 2, Chapter 4200, when canceling accounts payable in closing appropriation accounts.

2.5.3 After an appropriation account is closed, valid canceled accounts payable may be paid from an unexpired account available for the same purpose as the closed account. Center CFO's shall ensure the amount of funds in each unexpired account used to pay obligations against canceled appropriation accounts is limited to one percent of the appropriation, as required by 31 U.S. Code §1553. The authority to pay canceled payables from one percent of an unexpired account cannot exceed the original appropriation.

2.5.4 Prior to the closing of the appropriation account, the NASA Centers will identify and validate accounts payable balances in the closing appropriation account.

2.5.5 Center CFO Offices in collaboration with Procurement Offices shall make every effort to solicit a payment request from vendors or other Government agencies, so as to avoid unnecessary cancelled payables.

2.5.6 When an appropriation account is closed and a valid accounts payable transaction arises from that account, NASA will:

a. Identify unexpired accounts from which it is permissible, both as to the purpose and amount, to make payments that would have been chargeable to the closed appropriation account.

b. Determine the total amount of payments that may be made consistent with OMB Circular A-11, the Anti-Deficiency Act, and Section 2.5.3 above.

| TOC | Preface | Chapter1 | Chapter2 | Chapter3 | Chapter4 | Chapter5 | Chapter6 | Chapter7 | Chapter8 | Chapter9 | Chapter10 | Chapter11 | Chapter12 | Chapter13 | AppendixA | AppendixB | AppendixC | ALL |
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