Conservation Programs Manual, Part 512, Conservation Program Contracting Conservation Programs Staff...

Conservation Programs Manual, Conservation Programs Manual, Part 512, Part 512,

Conservation Program Conservation Program ContractingContracting

Conservation Programs StaffSalina, Kansas

[email protected]@ks.usda.gov

[email protected]@[email protected]

USDA is an equal opportunity provider and employer.

mailto:[email protected]





CPM 512, Subpart ACPM 512, Subpart A

General Information

3

512.00 General512.00 GeneralPolicy for programs administered thru

ProTracts

ProTracts is the official contracting software for Conservation Program Contracts (CPC) for: AMA, CSP, EQIP, WHIP

For specific conservation program guidance, see the appropriate Part of the CPM

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512.00 General512.00 General

CPC’s are LEGAL, BINDING documents Define terms and conditions Participant, NRCS, and TSP responsibilities Consequences for violating or terminating a

contract

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512.00 General512.00 General NRCS employees MUST provide

Copies of all signed and dated documents following CPC approval CCC-1200 CCC-1200 Appendix AD-1155

Recommended references Job sheets, standards & specifications Program regulations Fact sheets

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Payments made to CPC participants are reported to the IRS on Form 1099-G by NFC

NRCS employees are not authorized to advise CPC participants on the tax implications of conservation payments

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State amendments must be submitted to the Deputy Chief for Programs for review.

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512.03 NRCS Responsibilities512.03 NRCS Responsibilities

Separation of duties for certifying installation and payment

STC is responsible for training and quality assurance for all aspects of contract administration

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512.03 NRCS Responsibilities512.03 NRCS ResponsibilitiesSTC Responsibilities

Establish practice cost-share and incentive payment rates

Provide technical assistance Planning, design, installation, checkout Maintain contract records

Pay participant when Practices are certified Participant furnishes required information Participant meets eligibility requirements

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Role Permissions are the same for all Programs (CSP,EQIP, WHIP)

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512.04 FSA Responsibilities512.04 FSA Responsibilities Maintain USDA customer records relating to:

HEL/WC (AD-1026) AGI (CCC-526) Member information for entities and joint operations

(CCC-501A)

Use of FSA forms CCC-36 Assignment of Payment (CPM 512.62) FSA-211 Power of Attorney (FY 2005 and prior EQIP

contracts ONLY) FSA-237 Fax Signature Authority (CPM 512.46) -

OBSOLETE

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512.04 FSA Responsibilities512.04 FSA Responsibilities

FSA COC may receive appeals or participants may appeal directly to NAD

CPM 512, Subpart BCPM 512, Subpart B

Conservation Plan Schedule of Operation

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512.10 General512.10 GeneralBasis for CPC is up-to-date conservation

plan documented in Customer Service Toolkit

Participant is responsible for obtaining all permits to perform the planned work

Contract must meet all program requirements before it is accepted and approved

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512.13 Conservation Treatment 512.13 Conservation Treatment Already on the LandAlready on the LandMaintenance of existing practices, necessary

to meet the objectives of the program, will be included in the conservation plan

CPM 512, Subpart CCPM 512, Subpart C

Application for Assistance

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512.20 General512.20 General Application forms (CCC-1200) are available to the

public in NRCS field offices, conservation districts, and on the internet

Applicants must submit a signed and dated CCC-1200 and CCC-1200 Appendix to the appropriate NRCS field office

Applicants are to receive: CCC-1200 CCC-1200 Appendix Fact Sheets or other materials that emphasize key

terms and conditions of the contract

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Designated Conservationist is responsible for reviewing applications for completeness Individual/business information is maintained

in SCIMS

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512.21 Signature Authority for 512.21 Signature Authority for BusinessesBusinessesEach joint operation or entity must authorize

someone to act on it’s behalf Trusts Corporations LLC’s Joint Ventures

FSA will provide NRCS a copy of documents on file for EXISTING entities CURRENTLY ON FILE (8/2005)

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512.21 Signature Authority for 512.21 Signature Authority for BusinessesBusinesses NRCS will accept the following to verify authorized

signatures: Corporate charter or bylaws Court orders of appointment Trust agreements Last will and testaments Articles of partnership Notarized POA on NRCS-CPA-9 FSA-211 can be used for contracts prior to FY 2006

ONLY

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Signature AuthoritySignature Authority

Husbands and wives signing for each other MUST have a legal POA or notarized NRCS-CPA-9

Name of person giving POA

He/She/TheyHis/Her/Their

NRCS-CPA-09 – Power of Attorney

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512.22 Eligibility512.22 Eligibility

Participants must have control of the land

Control is by: Ownership Written lease Other legal agreement

See specific program requirements

Example – Verifying Ownership – FSA 156EZ

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512.22 Eligibility512.22 Eligibility

Land and applicant eligibility, specific to the program, is verified manually and identified on the ProTract Participant Information screen as “Other Eligibility”

Basic eligibility requirements HEL/WC compliant AGI compliant Tenant/sharecropper provisions met

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Program AGIHELC/

WCPayment

Limitations Other Eligibility

CSP Yes Yes N/A Yes

EQIP Yes Yes Yes Yes

WHIP Yes Yes N/A Yes

Eligibility Requirements for NRCS Administered Programs

CSP

EQIP

WHIP

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““Other Eligibility” - EQIPOther Eligibility” - EQIP CPM 515.61 – Producer Eligibility

Agricultural Producer Interest in farming operation on associated land Control of land for contract period Tenant/sharecropper interests protected

CPM 515.62 – Eligibility of Land Eligible land (cropland, rangeland, etc.) Irrigation history Land ownership and control Enrolled in other conservation programs

State ranking requirements

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““Other Eligibility” - EQIPOther Eligibility” - EQIP

Definition of the Agricultural operation.CPM KS515.90 – General Information

EQIP – GSWC: The Agricultural operation is defined as: (1) the well(s) designated in the unit of concern and the land unit(s) attached to those water right(s) and/or (2) for ditch irrigation, the fields currently irrigated with the irrigated district allocation or share.

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““Other Eligibility” - WHIPOther Eligibility” - WHIP

CPM 517.10 – Land Eligibility Land enrolled in other programs

CPM 517.11 – Participant Eligibility Control of the land

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““Other Eligibility” – CSPOther Eligibility” – CSP

CPM 518.41 – Applicant EligibilityCPM 518.42 – Land EligibilityCPM 518.43 – Conservation Standards –

Minimum Tier Eligibility RequirementsCPM 518.44 – Conservation Standards –

Minimum Level of Treatment

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““Other Eligibility” - CSPOther Eligibility” - CSP

CPM 518.60c – Delineation of the agricultural operation

The applicant will delineate the agricultural operation to include all:

Agricultural lands, Incidental forest lands, Incidental parcels, and Other lands as defined in CPM 518.42a

Ineligible lands as defined in CPM 518.42b

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““Other Eligibility” - CSPOther Eligibility” - CSPCPM 518.60c – Continued:

All land under control of the applicant whether contiguous or non-contiguous and constituting a cohesive management unit and operated with equipment, labor, accounting system, and management that are substantially separate from any other land

The applicant is required to obtain certification for control of all land included in the operation

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512.22 Eligibility512.22 EligibilityEligibility relationships among programs:

EQIP – land is ineligible to receive EQIP cost-share payments for the same practice on the same land

WHIP – land in WBP, EWP, CRP, WRP, and GRP is ineligible for WHIP

CSP – land in CRP, WRP, and GRP is ineligible for CSP

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EligibilityEligibility

Eligibility is determined at time of application NOT time of contract approval

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512.23 Submitting Applications512.23 Submitting Applications

Submitted by CCC-1200, signed and dated by applicant(s)

If received by fax, e-mail, or letter, NRCS will manually prepare CCC-1200 by entering: Name of applicant Date received

Attach a copy of the request from the applicant

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512.23 Submitting Applications512.23 Submitting Applications

NRCS will request that applicant come to the office or make arrangements to sign and date the application

Faxed signatures may be accepted on all forms EXCEPT CCC-36, Assignment of Payment

Practices started or completed prior to contract approval are not eligible for cost-share or incentive.

Waiver for meritorious reasons may be requested to the STC

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512.23 Submitting Applications512.23 Submitting Applications Participant must submit an application for waiver to be

considered

Applicant can not start the practice until the waiver is approved

Expiration date of the waiver is determined by the STC, not to exceed the end of the current fiscal year

Waiver does NOT guarantee contract approval

Practice must meet NRCS standards and specifications to be eligible for cost-share

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Waiver to Start Practice Prior to Waiver to Start Practice Prior to Contract ApprovalContract Approval

Format for EQIP located at CPM KS515.142 – Exhibit K

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512.23 Submitting Applications512.23 Submitting Applications Minimum area for an application is a field

NPPH – “a field is normally the smallest increment for planning resource management systems or practices. However, in rare instances a subfield (a field within a field – for example, the drainage area into a waterway and the outlet area below the waterway) …”

CPM 502 – “a part of a farm that is separated from the balance of the farm by permanent boundaries such as fences, roads, permanent waterways, woodlands, other similar features, or croplines (in cases where farming practices make it possible that such croplines are not subject to change), or other similar features.”

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512.24 Processing Applications512.24 Processing Applications Enter required information into ProTracts

Confirm “other eligibility”

ProTracts will use SCIMS to confirm HEL/WC and AGI

Applicant’s without current eligibility determinations with FSA will be asked to file the appropriate forms

ProTracts will use web service link to FSA to provide member information

If land or applicant is ineligible, notify and provide appeal rights

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512.27 Servicing Unfunded 512.27 Servicing Unfunded ApplicationsApplicationsUnfunded eligible applications will be

deferred to the next funding period

Notify applicant of options As is Modify Cancel

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512.28 Public Access to Data512.28 Public Access to Data

All requests for information will be forwarded to the state FOIA officer

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Area Checklists for ApplicationsArea Checklists for Applications

Eligibility from FSA Subsidiary Eligibility from FSA Subsidiary Site and Web ServiceSite and Web Service

Review Eligibility Matrix

CPM 512, Subpart DCPM 512, Subpart D

Cost-Sharing and Incentive Payments

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512.30 Methods of Making Cost-512.30 Methods of Making Cost-Sharing and Incentive PaymentsSharing and Incentive PaymentsMethods

Average Cost (AC) Actual cost, not to exceed the average cost (AA) Actual cost, not to exceed a specified maximum

(AM) Flat rate (FR)

If participant has reached his $50,000 EQIP incentive limit, then the last payment should be capped at the amount where $50,000 is reached.

Cost share cap would also be used in cases where a cap has been set for a certain practice (i.e. Pond, Subsurface Irrigation, etc.) using AM.

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512.34 Use of Other Funds512.34 Use of Other Funds

Participant’s share of the cost may come from other public or private sources, as long as the total financial assistance received does not exceed 100 percent of the cost Place copy of agreement in folder or document in

NRCS-CPA-6 notes

CPM 512, Subpart ECPM 512, Subpart E

Contracting

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512.40 Participant Responsibilities512.40 Participant Responsibilities Follow CPC

Submit CCC-1245 and “bills” when work is completed

Permit free access for NRCS or it’s agents to provide technical assistance

Forfeit right to payments, refund payments with interest, and pay liquidated damages upon contract termination or cancellation

Maintain practices installed for the lifespan of the practice

CCC-1245, Application for Payment

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512.42 Establishing Conservation 512.42 Establishing Conservation Program Contracts in ProTractsProgram Contracts in ProTractsIf an application is selected for funding:

CO will promote to “Pre-approved” status

DC will notify applicant of preapproval. Copy of CPC Appendix Specify response date for applicant to provide any

needed additional information SF-1199A Distribution of contract shares Determination of decisionmaker

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512.42 Establishing Conservation 512.42 Establishing Conservation Program Contracts in ProTractsProgram Contracts in ProTracts If an application is selected for funding (cont):

Finalize CPO Establish vendor records in ProTracts Make sure that all signatures have been obtained for

contract and appendix CO will obligate funds Eligibility should not be a problem at this point, as it

should be checked at time of application

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Applicant signature box is marked when the participant signs Section 10 of the CCC-1200.

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512.43 Components and Assembly 512.43 Components and Assembly of Contract Fileof Contract FileRequired materials (see manual)

Location of official file – FIELD OFFICE

Exhibit 512.93 – Assembling of Six Part Folder

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Exhibit 512.93 - Six-Part FolderExhibit 512.93 - Six-Part Folder

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Exhibit 512.93 - Six-Part FolderExhibit 512.93 - Six-Part Folder

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512.45 Contract Period and 512.45 Contract Period and LimitationsLimitationsEQIP

Contract period – 12 months after the last practice is installed, not to exceed 10 years No practices in 10th year Must start a cost-shared practice within the first 12

months

Limitation - $450,000 per individual or entity over the period of the 2002 Farm Bill

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512.45 Contract Period and 512.45 Contract Period and LimitationsLimitationsWHIP

Contract period – 5 to 10 years All essential practices must be implemented at

least 2 years before contract expires Must start an essential practice within the first 12

months “Essential habitat agreements” are a minimum

length of 15 years

Limitation – No national limit; state limit of $10,000 unless waiver granted by STC

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512.45 Contract Period and 512.45 Contract Period and LimitationsLimitationsCSP

Contract period Tier I – 5 years Tiers II and III – 5 to 10 years

Limitation Tier I - $20,000 per contract/year Tier II - $35,000 per contract/year Tier III - $45,000 per contract/year

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512.45 Contract Period and 512.45 Contract Period and LimitationsLimitations

Separate contracts (folders) will be used if more than one NRCS program is providing financial assistance

Waiver to the requirement of starting a practice in the first 12 months has been delegated to the ASTC-FO

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512.46 Signing and Approving 512.46 Signing and Approving Contract DocumentsContract Documents All participants receiving cost-share will sign the

contract and appendix See appropriate program guidance for additional

requirements

Faxed signatures will be accepted EXCEPTION: CCC-36, Assignment of Payment FSA-237 is obsolete Participants are responsible for successful

transmission and confirmation of receipt Date printed on fax will be used for determining if program

guidelines/filing requirements are met

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Required SignaturesRequired SignaturesIf husband and wife are listed as owners,

then both must be party to the contract

CPM 515.111(b) – EQIP Signature Requirements Landowners must sign if:

Operator can not verify control of land for contract period {CPM 515.62(c) – Land Eligibility}, and/or

Structural practice to be implemented Letter of authorization or control of land form can be

substituted

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Required SignaturesRequired Signatures

CPM KS515.111(b) – EQIP Signature Requirements Operator must sign if he/she will apply

management practices that earn incentive payments

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512.46 Signing and Approving 512.46 Signing and Approving Contract DocumentsContract DocumentsDC will sign conservation plan and

modifications certifying technical adequacy

ASTC will approve, by electronic signature, obligation of funds

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512.47 Numbering and Distributing 512.47 Numbering and Distributing of Contractsof ContractsOriginal case file is kept in field office

Copy to decisionmaker and contract participants

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512.48 Servicing Multi-State 512.48 Servicing Multi-State ContractsContractsKansas dollars are spent on Kansas land!

Servicing field office (SFO) – county where the contract is serviced

Geographic field office (GFO) – county where the land is located

Ensure that SFO and GFO are entered in ProTracts correctly

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512.48 Servicing Multi-State 512.48 Servicing Multi-State ContractsContractsSFO

Receive program applications Confirm/establish SCIMS record Establish application in ProTracts Determine eligibility Collect data to rank application Provide technical assistance

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512.48 Servicing Multi-State 512.48 Servicing Multi-State ContractsContractsGFO

Rank application/funding decisions made by contracting officer of GFO

Manage contract obligation Submit payment applications

SFO and GFO must work together!

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512.48 Servicing Multi-State 512.48 Servicing Multi-State ContractsContracts

SFO & GFO need to ensure they have the correct ProTracts permissions

Application approval, contract approval, and payment approval are based from the GFO (where the land is located)

Ensure that this is the PHYSICAL LOCATION county. If it is not contact your Area Office for update to your permissions.

ProTracts allows pin to be set in other counties, but reports county as whatever is chosen here.

Utah ColoradoSFO

Vernal FO

GFOGrand Junction FO

•Offered acres are in Colorado•Applicant prefers to conduct business with Vernal, UT FO.

•The Utah ProTracts coordinator adds Mesa County, CO to the permissions for Vernal office employees.

•This gives Vernal access to applications/contracts that are located in Mesa, Colorado, but serviced by Vernal.

• This allows Vernal to set a map pin for the application in Mesa County, CO.

• Vernal enters the application in ProTracts.

• Vernal sets the map pin in Mesa County, CO

•Setting the map pin in Mesa County, Colorado allows the FO to access Mesa County cost lists and fund codes.

• The contract number is assigned to Colorado.

• Vernal determines eligibility.

• If the application is eligible, Vernal consults with Grand Junction to select the correct fund code and cost list.

•Mesa County, CO cost list includes the practices eligible for cost share in Colorado.

• Vernal FO develops the conservation plan and contract according to the eligible practices and cost list at the GFO.

• Vernal obtains the applicant’s signature on the CCC-1200.

• Vernal FO sends the signed contract to Colorado for approval by the designated conservationist.

•The Colorado ProTracts Coordinator adds Vernal FO to office permissions for Grand Junction FO employees:

• This gives Grand Junction access to applications and contracts serviced by Vernal, but located in Mesa County.

• Grand Junction ranks the application and enters the score in ProTracts.•Colorado approves, defers or disapproves the application.•Colorado designated conservationist approves the contract.

Application Processing

Utah Colorado

SFOVernal FO

GFOGrand Junction FO

•Acres under contract are in Colorado.•Participant prefers to conduct business with Vernal FO.

• Vernal accepts the payment application from the participant.

• Vernal certifies the practice and calculates the payment.

• Vernal sends payment documentation to Grand Junction/Lakewood, CO.

• Vernal processes contract modifications.

• Vernal obtains participant signatures for contract modifications. • Grand Junction approves the payment.

• Colorado performs 2nd level review of the payment request.• Colorado approves contract modifications.

Contract Management

CPM 512, Subpart FCPM 512, Subpart F

Contract Administration

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512.50 Modifications512.50 Modifications

Generated through ProTracts Pen and ink changes are no longer

acceptableAD-1156 will be generated for documentation

of the modification If the change is to participant’s, participant’s

percentages, or expiration date; then a new CCC-1200 must be signed

Basis must be clearly stated

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If there is an obligation increase, the modification must be identified as: Change in scope – processed with current

year funds (allowed in WHIP, but not EQIP) Cost overrun – processed with the original

fund code

85


“Cost overrun” MUST meet BOTH of the following requirements: New or additional amount of practice carries out the

original intent of the contract on the same land, AND Original resource concern(s) are treated according to

the ranking criteria for which contract approval was based.

DOCUMENT IN “BASIS FOR MODIFICATION”

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ModificationsModifications

Change in scope example: Participant would like to terrace another field

that was not part of the original application with dollars remaining in contract

Cost overrun example: NRCS underestimated terrace footage

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ModificationsModifications National Bulletin 440-6-1 issues guidance that cost

overrun modifications require program manager approval if they are: In excess of 20% of the current contract obligation,

OR In excess of $10,000

Procedure DC sends request to ASTC ASTC sends with concurrence to program manager Program manager responds in writing – copy to case

file Verbal approval may be given but followup in writing

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Modifications where NO signatures are required Change in schedule within the original length

of the contract Increase in cost less than $1000, due to cost

overrun

89


Modifications where signatures are required EVERYTHING ELSE Adding land Loosing control of land Extending or reducing the contract period Substituting contract items Deleting contract items Increasing cost over $1000, due to cost overrun Changing participant or adjusting contract shares Reapplying a conservation treatment Adding TSP

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512.51 Modification Procedures512.51 Modification Procedures

All participants that sign the contract (CCC-1200) must sign the AD-1156

Must be approved by COEffective date is date signed by CO (in

ProTracts)

91


No cost-share payments will be made for new practices if the project is started BEFORE the modification is signed

If obtaining CO approval will delay application, CO may give verbal approval Documented in case file AND Documented in ProTracts “basis for

modification”

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Funds scheduled for cost-sharing a practice may be deleted by modification IF the participant elects to carry out the

practice under another program or at their own expense

BEFORE installation is started IF practice is started, all of that practice must

be carried out under that program

Practices WILL NOT be deleted to avoid contract non-compliance

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512.52 Destruction of Practices512.52 Destruction of Practices

Participants may destroy and replace an established practice with equivalent conservation treatment

Participant must file a written request and receive approval BEFORE altering. Request should include:

Substantiate that practice will achieve the conservation objectives of the CPC

Provide for the most practical operation of the land Indicate that action will be done without NRCS financial

assistance

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512.53 Reapplication of 512.53 Reapplication of Conservation TreatmentConservation TreatmentContract may be modified to provide for

reapplication of a cost-shared practice if: The practice met all its original installation

requirements Failure was caused by circumstances beyond

the participants control Carried out within the contract period Cost-share rate and fund source is the same

as the original contract

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512.54 Transfer of Land512.54 Transfer of Land

Land is considered “transferred” if the participant looses control of the land for any reason Transferor – participant who looses control Transferee – person who acquires control of

the land

98


Transferor is responsible for contacting transferee about assuming contract

Transferee may assume obligations of the contract

If transferee does not assume obligations, transferor is considered in violation and subject to recovery of costs

Refer to applicable part of CPM for program specific guidance on land transfer

99


Entire contract assumption Prepare modification to add new participant Original contract terms apply

Removal of contract acreage Modify out applicable practices and acres

Partial contract assumption New contract number will be assigned Original contract terms apply NOT APPLICABLE TO CSP

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Contract TransferContract Transfer

See ProTracts Task Guide #2

Handling Partial Transfers (Contract Splits) “Add New Application” from Applications

Menu

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512.55 Contract Reviews512.55 Contract Reviews

Contract FOLLOW-UP is a part of the conservation planning process

Contract reviews are required if: Schedule is not being followed Contract provisions are not being met

103


The DC will review all contracts ANNUALLY If contract is on schedule and contract

provisions are being followed, document in contract folder No field review is necessary

104


The DC will review all contracts ANNUALLY If schedule and/or contract provisions are not

being followed, document on NRCS-CPA-13 Signed by NRCS representative and District

Conservationist Provide copy to participant, original in case file DC will work with participant to resolve all issues.

DOCUMENT!!! If participant does not complete obligations,

terminate (see CPM 512.57)

105


Elements to be reviewed Practices completed Operation and maintenance Location and condition of portable equipment cost-

shared (if applicable) Status of practices not completed Need for revision of contract Description of potential violations Practices to be implemented next fiscal year Confirm participants still in control of land

106

Rescheduling PracticesRescheduling Practices

If practices need to be rescheduled (e.g. extended to next year), modify in ProTracts Pen and ink changes in case file are NOT

acceptable

See “Practices Planned Prior to 2006” Task Guide to determine practice schedules not up to date

Practices Planned for 1997, but not reported as Applied

108


Beginning and Limited Resource Farmers SO selects five percent per area each year for

spot check

109

BF/LRF CertificationBF/LRF Certification

110


Limited Resource Farmers Participant must provide one of the following:

Gross Farm Sales = Gross Farm Income on Form IRS 1040, Schedule F

Total Household Income = Adjusted Gross Income on Form IRS 1040, AGI Section

Letter from CPA or attorney certifying the participant meets eligibility requirements

113


Beginning Farmers Participants must provide:

One IRS Form 1040 from the last ten years that shows that the participant did not file a Schedule F

115


Failure to provide documentation for LRF/BF will result in ineligibility

If information provided fails to support eligibility, the DC will notify the STC (thru the ASTC)

STC will terminate all approved contracts with participants who falsely certify as LRF or BF

116


All other reviews performed according to Quality Assurance Review

Erroneous Representation, Scheme, or Device Terminate all current contracts Deny payments Request cost recovery

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512.56 Practice Documentation, 512.56 Practice Documentation, Certification, and Quality AssuranceCertification, and Quality AssuranceFollow procedures set forth in General

Manual

118

512.57 Canceling and Terminating 512.57 Canceling and Terminating ContractsContracts Cancellation – equitable remedy that allows both

parties to terminate the contract. Recovery of costs may or may not be assessed (natural disasters, death, bankruptcy, major illness,

etc.)

Termination – result of material breach of terms and conditions. Usually results in assessment of liquidated damages (transfers ownership or looses control of land, violates

terms, misrepresentation, becomes ineligible, etc.)

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512.57 Canceling and Terminating 512.57 Canceling and Terminating ContractsContractsCancellation

Must be requested in writing Provide reasons

Participant(s) forfeit all rights to payments and may be required to refund payments as described in Appendix

DC will (AFTER STC ACTION) Enter “Canceled” and date on contract documents Reason must be fully documented Update status in ProTracts (ASTC responsibility)

120

512.57 Canceling and Terminating 512.57 Canceling and Terminating ContractsContractsTermination

DC will (AFTER STC ACTION) Enter “Terminated” and date on contract

documents Reason must be fully documented Update status in ProTracts (ASTC responsibility)

121

512.57 Canceling and Terminating 512.57 Canceling and Terminating ContractsContractsCancellation & Termination

STC will inform participant of action and repayment requirements

122

512.58 Recovery of Costs512.58 Recovery of Costs

NRCS generally seeks a recovery of costs when a CPC is terminated or cancelled

Refer to the CPC Appendix to determine if recovery of costs apply

Recovery of costs include: Value of technical assistance (liquidated

damages), and Refund of financial assistance (cost-share

obligations)

124


NRCS considers the following in determining recovery of cost: Good faith effort of participant Economic or personal hardship

125


Liquidated damages is not a penalty, but a recovery of NRCS administrative and technical service costs

Liquidated damages may be charged where: Fraud, scheme or device Voluntary cancellation Loss of control of all or part of the land under

contract and no successor-in-interest Non-compliance

126


NRCS will not assess liquidated damages for termination of a WHIP contract

127


With JUSTIFICATION the STC has the option to waive all or part of the liquidated damages. STC may consider: Involuntary loss of control Hardship beyond the participant’s control Good faith effort

128


Year of Contract Maximum Liquidated Damages Assessment (%)

1 7.5

2 15

3 18

4 20

5+ 20

129


Chart is used for: FY 2006 contract termination/cancellation Any situations where the STC has determined

that there will be a reduction in recovery costs

130


Financial assistance (cost-share) is refunded based on the CPC Appendix

Determination that a refund can be reduced will consider the following: Good faith effort Hardship beyond the participant’s control

131


If refund can be reduced, reduction is based on: Failure to perform remaining practices will not

impair those performed Performed practices will continue to provide

conservation/environmental benefits consistent with program goals

Performed practices are operated and maintained for the lifespan of the practice

132


NRCS assesses late payment interest on the full amount of delinquent debts Calculated from date disbursed Shall not include liquidated damages

Interest (for FY2003 and future contracts) found at http://www.fms.treas.gov/cvfr

http://www.fms.treas.gov/cvfr

133


STC is responsible for notifying CPC participant of recovery of cost Amount of recovery of cost is determined at

the state office If participant fails to make timely payment,

receivables account is transferred to claims status

Amount of cost recovery is an appealable item

134

Cancellation/TerminationCancellation/TerminationSummary

Participant makes request to DC, or NRCS begins to terminate

DC sends request with concurrence/nonconcurrence and documentation to ASTC

ASTC sends request with concurrence/nonconcurrence to STC

STC proceeds with cancellation/termination and determination of recovery costs

135

Cancellation/TerminationCancellation/TerminationSummary (cont)

Once recovery costs are received or contract is terminated/cancelled without recovery costs, DC and ASTC may proceed with action in ProTracts

CPM 512, Subpart GCPM 512, Subpart G

Conservation Program Payments

137

512.60 Applying for Cost-Share or 512.60 Applying for Cost-Share or Incentive PaymentsIncentive PaymentsDirect Deposit is required by federal

regulation, except in the following cases: Imposes a hardship Participant does not have an account with a

financial institution

Participant’s must apply for payment on CCC-1245

138

512.60 Applying for Cost-Share or 512.60 Applying for Cost-Share or Incentive PaymentsIncentive PaymentsAll payments are to be processed as

“immediate pay” In Kansas:

FO should submit payment with two weeks of receiving all documentation from the participant

SO FNM should process the payment within two weeks of receipt, if all documentation is received and correct

Expect one week for payment to be processed by NFC

139

512.60 Applying for Cost-Share or 512.60 Applying for Cost-Share or Incentive PaymentsIncentive PaymentsReceipts are not required for payment of AC

or FR practices Kansas NRCS can and does request receipts

to determine average costs

Itemized receipts are required for AA or AM practices

140

512.60 Applying for Cost-Share or 512.60 Applying for Cost-Share or Incentive PaymentsIncentive PaymentsAll payment applications are initiated in

ProTracts

Payment application is to be signed and dated by one contract participant

If additional funds are needed to make payment, the CCC-1245 can serve as the modification

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512.60 Applying for Cost-Share or 512.60 Applying for Cost-Share or Incentive PaymentsIncentive Payments Transfer all documents to the second-level reviewer

immediately (same day) following approval of payment Copy of CCC-1200 signature page (section 10) CCC-1245 signed and dated by participant CCC-36, if there is an assignment of payment POA, or other documents substantiating signature

authority SF-1199A or NRCS-FNM-60(waiver) Copy of invoices, if appropriate

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512.60 Applying for Cost-Share or 512.60 Applying for Cost-Share or Incentive PaymentsIncentive Payments

Kansas Bulletin KS300-5-39 and KS300-5-52

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Attachment 3 to KS300-5-39Attachment 3 to KS300-5-39

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512.60 Applying for Cost-Share or 512.60 Applying for Cost-Share or Incentive PaymentsIncentive Payments Second level reviewer checks:

Shares match CCC-1200 & CCC-1200 matches ProTracts

Sufficient funds are available Receipts support payment request, if appropriate Participant signature matches contract Participant signature date is no later than the date of

payment approval Payment is calculated correctly Payment is directed to the correct account or address

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CCC-1200CCC-1200CCC-1200 must match ProTracts

Percentage Shares Participants

If “obligating vendor” is no longer involved with contract, write “OBLIGATING VENDOR” in signature space

If signature is not required and new CCC-1200 is not needed, note in signature space (e.g. contract is structural practices only, operator signature not required)

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Checking Payment StatusChecking Payment Status

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12

157

Date approved by DC

NOT approved by FNM or paid by NFC

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Date approved by DC

Date approved by FNM Date paid by NFC

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512.61 Applying for Recurring 512.61 Applying for Recurring PaymentsPaymentsRecurring payments are items that the

participant is currently doing and agrees to continue for the duration of the contract (CSP)

Based on self-certification Letter sent 60 days before payment Upon receipt of letter back from participant,

DC will certify and approve practice

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512.62 Payment Assignments512.62 Payment Assignments

Form CCC-36 Assignor (participant) Assignee (person/entity receiving payment) Participant is responsible for providing the

information for an assignee (including an SF-1199A)

Assignor receives 1099

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512.62 Payment Assignments512.62 Payment Assignments

Assignments are authorized for a fixed amount and remain in effect until revoked

ProTracts requires that a separate assignment be established for each contract

See ProTracts Task Guide #1 – Contract Payments

Click on Participant Line to Highlight

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512.63 TSP Payments512.63 TSP Payments

Program participant may elect to use a TSP

TSP must be certified, for participant to receive cost-share

Contract must be modified and signed by the CO before the participant is authorized to use the TSP Receipts dated prior to this date are NOT

eligible for cost-share

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512.63 TSP Payments512.63 TSP Payments

When TSP completes work: Participant provides required supporting

documentation Participant initiates CCC-1245

All work performed by TSP must be “substantially completed” during the same fiscal year funds are obligated

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512.64 Disapproval of Payments 512.64 Disapproval of Payments ApplicationsApplicationsPayment applications that are incomplete or

contain incorrect calculations will be rejected by the second-level reviewer

Second-level reviewer Notify DC of deficiencies Delay action in FFIS Cancel payment application if changes are

needed in ProTracts

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512.64 Disapproval of Payments 512.64 Disapproval of Payments ApplicationsApplicationsDC will:

Submit documentation needed by second-level reviewer

Have ASTC unapprove payment application, if needed

Correct deficiences Reapprove payment Promptly notify participant, if additional

documentation is needed to process payment application

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512.65 Payment Not Authorized512.65 Payment Not Authorized

Participants will be notified in writing and payments will not be authorized for: Materials or services that have not been used

yet in a partially completed practice Practice or component that depends on the

performance of another practice that did not meet NRCS standards and specifications (Inform participant of actions required to correct deficiencies)

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512.65 Payment Not Authorized512.65 Payment Not Authorized

Participants will be notified in writing and payments will not be authorized for (cont): Work performed before modification or

contract (unless approved by waiver) is approved

Used materials were used Application results in duplicate payment Cost-share will result in payments exceeding

the program limitation or the 100 percent financial assistance limit

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512.66 Designating Payment 512.66 Designating Payment SharesSharesPayment shares are established when the

contract is approved and apply to all practices

If participant requests a different share for a specific practice, a modification MAY be done. The new shares will apply to all subsequent payments.

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512.66 Designating Payment 512.66 Designating Payment SharesSharesIf contract is with an entity, payment is made

to that entity

For payment limitation purposes, NRCS credits payments to eligible entity members according to their share of the entity (from Form CCC-501A)

Entity is responsible for distributing payments to members

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512.67 Partial Payments512.67 Partial Payments

Practices with a single component can be modified to enable a partial payment

Practices with multiple components can be processed for one or more completed components

ProTracts does not support a partial payment of a component

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512.67 Partial Payments512.67 Partial Payments Not generally encouraged

All the following conditions should be met to make a partial payment: Application made on CCC-1245 DC determines that a completed extent reflects a

significant portion of the planned practice Completed extent is clearly identified on CCC-1245 Purpose is not to evade payment limitation Participant signs contract modification agreeing to

finish the remaining amount by a mutually agreed upon date

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512.68 Claims, Collections, and 512.68 Claims, Collections, and OffsetsOffsetsFollows Debt Collection Improvement Act

(DCIA) of 1996 Participants are notified in writing

Contract number Amount owed Reason for collecting the funds

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512.68 Claims, Collections, and 512.68 Claims, Collections, and OffsetsOffsets If payment is not received in 30 days, receivable is

entered in NFC Internet Billing System (IBIL) This system continues to send demand letters until

participant pays or offset is received from other Federal payments

Check must be made payable to “CCC” or “NRCS” Participant should reference contract number on

check NRCS can not process a cash or EFT transaction

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512.68 Claims, Collections, and 512.68 Claims, Collections, and OffsetsOffsets If an offset is made against a CPC payment, FFIS and

ProTract records will reflect a full payment

FNM can inquire to NFC to determine if an offset was applied to a payment

Participant will not be notified by NRCS or Treasury when a payment offset occurs

Collections and claims are not recorded in ProTracts Only the EQIP Payment Limitation Database is

updated.

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512.69 Erroneous Payments512.69 Erroneous Payments

Payment does not conform to NRCS administrative policies

See Kansas Bulletin KS300-6-33 for handling erroneous underpayments outside of ProTracts

CPM 512, Subpart HCPM 512, Subpart H

Violations

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512.70 Handling Contract Violations512.70 Handling Contract Violations

Use guidance from applicable program manual and CPM Part 510

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512.71 Filing of False Payment 512.71 Filing of False Payment ApplicationsApplicationsApplications for cost-share on practices or

components not carried out or do not meet required specifications constitutes false application.

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Equal OpportunityEqual OpportunityThe U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, sex, religion, age, disability, political beliefs, sexual orientation, or marital or family status. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD).

To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 1400 Independence Ave. Avenue SW, Washington D.C. 20250-9410 or call (202) 720-5964 (voice and TDD). USDA is an equal opportunity provider and employer.

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