[Code of Federal Regulations]

[Title 7, Volume 15]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR3015.102]



[Page 119-120]

 

                          TITLE 7--AGRICULTURE

 

                         CHAPTER XXX--OFFICE OF

                      THE CHIEF FINANCIAL OFFICER,

                        DEPARTMENT OF AGRICULTURE

 

PART 3015_UNIFORM FEDERAL ASSISTANCE REGULATIONS--Table of Contents

 

                     Subpart L_Payment Requirements

 

Sec. 3015.102  Payment methods.



    (a) Non-construction. (1) Letters of credit will be used to pay USDA 

recipients when all the following conditions exist:

    (i) There is or will be a continuing relationship between the 

recipient and the USDA awarding agency for at least a 12 month period 

and the total amount of advances to be received within that period from 

the awarding agency is $120,000 or more per year.

    (ii) The recipient has established or demonstrated to the USDA 

awarding agency the willingness and ability to establish procedures that 

will minimize the time elapsing between the transfer of funds from the 

Treasury and their disbursement by the recipient.

    (iii) The recipient's financial management system meets the 

standards for fund control and accountability prescribed in Subpart H of 

this part.

    (2) Advances by Treasury check will be used, in accordance with 

Treasury Circular No. 1075, when the recipient does not meet the 

requirements in paragraph (a)(1)(i) of this section but does meet the 

requirements in paragraphs (a)(1) (ii) and (iii) of this section.

    (3) Reimbursement by Treasury check shall be the preferred method 

when the recipient does not meet the requirements specified in either 

paragraph (a)(1)(ii) or paragraph (a)(1)(iii) of this section. This 

method may also be used when USDA financial assistance makes up only a 

minor portion of the program and where the major portion of the program 

is accomplished through private financing or Federal loans.

    (b) Construction. (1) Reimbursement by Treasury check shall be the 

preferred method when the recipient does not meet the requirements 

specified in Sec. 3015.102(a)(1) (ii) or (iii), and may be used for any 

USDA construction grant unless USDA has entered into an agreement with 

the recipient to use a letter of credit for all USDA grants, including 

construction grants.



[[Page 120]]



    (2) When the reimbursement by Treasury check method is not used, 

Sec. 3015.102(a) (1) and (2) shall apply to the construction grants. 

Implementing procedures under Sec. 3015.102(a) (1) and (2) will be the 

same for construction grants as for nonconstruction grants awarded to 

the same recipient, insofar as possible.

    (3) USDA awarding agencies will not use the percentage-of-completion 

method to pay its construction grants. The recipient may use that method 

to pay its construction contractor, but if it does, USDA payments to the 

recipient will nevertheless be based on the recipient's actual rate of 

disbursements.