[Code of Federal Regulations]

[Title 32, Volume 1]

[Revised as of July 1, 2006]

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

[CITE: 32CFR22.810]



[Page 89-90]

 

                       TITLE 32--NATIONAL DEFENSE

 

              CHAPTER I--OFFICE OF THE SECRETARY OF DEFENSE

 

PART 22_DoD GRANTS AND AGREEMENTS_AWARD AND ADMINISTRATION--Table of 

Contents

 

                   Subpart H_Post-Award Administration

 

Sec.  22.810  Payments.



    (a) Purpose. This section prescribes policies and grants officers' 

post-award responsibilities, with respect to payments to recipients of 

grants and cooperative agreements.

    (b) Policy. (1) It is Governmentwide policy to minimize the time 

elapsing between any payment of funds to a recipient and the recipient's 

disbursement of the funds for program purposes (see 32 CFR 32.22(a) and 

33.21(b), and the implementation of the Cash Management Improvement Act 

at 31 CFR part 205).

    (2) It also is a Governmentwide requirement to use electronic funds 

transfer (EFT) in the payment of any grant for which an application or 

proposal was submitted or renewed on or after July 26, 1996, unless the 

recipient has obtained a waiver by submitting to the head of the 

pertinent Federal agency a certification that it has neither an account 

with a financial institution nor an authorized payment agent. This 

requirement is in 31 U.S.C. 3332, as amended by the Debt Collection 

Improvement Act of 1996 (section 31001(x)(1)(A), Pub. L. 104-134), and 

as implemented by Department of Treasury regulations at 31 CFR part 208. 

As a matter of DoD policy, this requirement applies to cooperative 

agreements, as well as grants. Within the Department of Defense, the 

Defense Finance and Accounting Service implements this EFT requirement, 

and grants officers have collateral responsibilities at the time of 

award, as described in Sec.  22.605(c), and in postaward administration, 

as described in Sec.  22.810(c)(3)(iv).

    (3) Expanding on these Governmentwide policies, DoD policy is for 

DoD Components to use electronic commerce, to the maximum extent 

practicable, in the portions of the payment process for grants and 

cooperative agreements for which grants officers are responsible. In 

cases where recipients submit each payment request to the grants 

officer, this includes using electronic methods to receive recipients' 

requests for payment and to transmit authorizations for payment



[[Page 90]]



to the DoD payment office. Using electronic methods will improve 

timeliness and accuracy of payments and reduce administrative burdens 

associated with paper-based payments.

    (c) Post-award responsibilities. In cases where the recipient 

submits each payment request to the grants officer, the administrative 

grants officer designated to handle payments for a grant or cooperative 

agreement is responsible for:

    (1) Handling the recipient's requests for payments in accordance 

with DoD implementation of Governmentwide guidance (see 32 CFR 32.22, 

33.21, or 34.12, as applicable).

    (2) Reviewing each payment request to ensure that:

    (i) The request complies with the award terms.

    (ii) Available funds are adequate to pay the request.

    (iii) The recipient will not have excess cash on hand, based on 

expenditure patterns.

    (3) Maintaining a close working relationship with the personnel in 

the finance and accounting office responsible for making the payments. A 

good working relationship is necessary, to ensure timely and accurate 

handling of financial transactions for grants and cooperative 

agreements. Administrative grants officers:

    (i) Should be generally familiar with policies and procedures for 

disbursing offices that are contained in Chapter 19 of Volume 10 of the 

DoD Financial Management Regulation (the FMR, DoD 7000.14-R\15\).

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    \15\ See footnote 13 to Sec.  22.715(a)(4).

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    (ii) Shall forward authorizations to the designated payment office 

expeditiously, so that payments may be made in accordance with the 

timely payment guidelines in Chapter 19 of Volume 10 of the FMR. Unless 

alternative arrangements are made with the payment office, 

authorizations should be forwarded to the payment office at least 3 

working days before the end of the period specified in the FMR. The 

period specified in the FMR is:

    (A) No more than seven calendar days after receipt of the 

recipient's request by the administrative grants officer, whenever 

electronic commerce is used (i.e., EDI to request and authorize payments 

and electronic funds transfer (EFT) to make payments).

    (B) No more than thirty calendar days after receipt of the 

recipient's request by the administrative grants officer, when it is not 

possible to use electronic commerce and paper transactions are used.

    (C) No more than seven calendar days after each date specified, when 

payments are authorized in advance based on a predetermined payment 

schedule, provided that the payment schedule was received in the 

disbursing office at least 30 calendar days in advance of the date of 

the scheduled payment.

    (iii) Shall ensure that the recipients' Taxpayer Identification 

Number (TIN) is included with each payment authorization forwarded to 

the payment office. This is a statutory requirement of 31 U.S.C. 3325, 

as amended by the Debt Collection Improvement Act of 1996 (section 

31001(y), Pub. L. 104-134).

    (iv) For each award that is required to be paid by EFT (see Sec.  

22.605(c) and (Sec.  22.810(b)(2)), shall prominently indicate that fact 

in the payment authorization.



[63 FR 12164, Mar. 12, 1998, as amended at 70 FR 49467, Aug. 23, 2005]