Cooperative Agreement Training STATE – FEDERAL PERSPECTIVES
COMMUNICATION COORDINATION COOPERATION
NGR 5-1 NGR = NATIONAL GUARD REGULATION MASTER COOPERATIVE AGREEMENT (MCA) References
MASTER COOPERATIVE AGREEMENT MCA Challenge / Star Base Army / Air Construction Appendix Appendix Army Facilities Programs Air FOMA Operations Staff Training Army Environmental Programs RM Air Environmental Programs Mgmt Army Security CA Air Security CA Air Fire Program Activities Army ESS IO&M Army C4IM Service 15 Army Sustainable Range Programs Army Anti-Terrorism Coordinator Learning Army Distributed Learning Program
APPENDIX COMPONENTS • Administration: Provides guidance for any administrative requirements required by the Appendix • State Military Department (SMD) Operating Budget: Provides guidance to the Federal Program Managers/Resource Advisors on how to receive funding for the program.
APPENDIX COMPONENTS (CONT) • Authorized Charges: Provides guidance as to the authorized charges allowed under the appendix • UnAuthorized Charges: Provides guidance as to those items that are not allowed to be purchased under the appendix
AUTHORITYNGB’s specific Statutory Authority to enter into Cooperative Agreements begins with the United States Constitution.
AUTHORITYU.S.CONSTITUTION, ARTICLE I, SECTION 8, CLAUSE 16:“TO PROVIDE FOR THE ORGANIZING, ARMING, AND DISCIPLINING THE MILITIA, AND FOR GOVERNING SUCH PART OF THEM AS MAY BE EMPLOYED IN THE SERVICE OF THE UNITED STATES, RESERVING TO THE STATES RESPECTIVELY, THE APPOINTMENT OF OFFICERS, AND THE AUTHORITY OF TRAINING THE MILITIA ACCORDING TO DISCIPLINES PRESCRIBED BY CONGRESS.”NOTE: CONGRESS HAS DELEGATED THIS AUTHORITY TO THE ARMED SERVICES.
THE CONCEPT OF THE NATIONAL GUARD COOPERATIVE AGREEMENT PROGRAM “STATE PAYS” “FEDERAL REIMBURSES”
COOPERATIVE AGREEMENTS ARE BIG BUSINESS
MDNG FY10 MCA FundingArmy Appendices $5,581,879.00ChalleNGe Program $1,700,000.00Military Construction Cooperative Agreement $9,088,000.00Special Master Cooperative Agreement $1,641, 000.00Air Appendices $4,505,600.00 $22,516,479.00
Organization Players Relationships FEDERALSTATE • National Guard Bureau Governors Office • USPFO TAG • Financial Mgr (Comp) Resource Mgr • Grants Officer Rep (GOR) Agreement Coord • Program Mgr/Resource Advisors Program Mgr • Facilities Management Off Dir of Installations (FMO) • Judge Advocates Gen Attorney Gen • Director of Info Mgt Dir of Info Tech (DOIM) • Asst USPFOs (Property/Finance)
ASSISTANT USPFOs • Appointed in writing by the USPFO • The USPFO may place conditions upon the appointment, i.e., training • Army National Guard • Real Property (Facility Management Officer) • Air National Guard • Fiscal (Base/Wing Comptroller) • Property (Base/Wing Readiness Management Officer) • Real Property (Base Civil Engineer)
ASSISTANT USPFOs • Appointed IAW NGR 130-6, Chapter 2, para 2-3, in writing with the TAG/Commander’s concurrence • Responsible technically and militarily to their Commander or TAG (Title 32) • There is a FIDUCIARY LINK between the USPFO and Assistant USPFOs for statutory and regulatory management of their programs
COOPERATIVE AGREEMENT • PROGRAM MANAGERS • (ARNG) • Appointed in writing by the USPFO • Must be Federal employee • Obligates Federal funds IAW Federal laws, regulations • and directives • Coordinates with State finance personnel • State link to NGB-OPR-PMs • Provides financial reports • Prepares input to annual Federal budget • They also have a FIDUCIARY LINK to the USPFO
AIR NATIONAL GUARD RESOURCE ADVISORS (ANG) • Appointed by the respective Group/Squadron Commander at the WING • Place orders against the program funds • Responsible for the proper expenditure of funds within laws and regulations • Coordinates with NGB OPMs, GOR, SMD Resource Manager and Wing Financial Manager • They do not obligate funds – No FIDUCIARY LINK to the USPFO
FISCAL LAW CONCERNS (Three Elements) (Purpose, Time, Amount) The basis analysis applicable to obligating Federal funds is applicable to Cooperative Agreements
FUNDING APPROVAL FISCAL YEAR
Funding • Master Cooperative Agreement > < 5yr Life • Initial Funding Arrives With Document • Each Appendix Has Own Funding • Needs To Be Approved/Signed By: JAG States Attorneys General Office TAG USPFO Copies Forwarded To NGB
Following Years • Federal Program Managers Submit Funding Requirements to NGB (USPFO Coord) • Upon Approval – An Agreement Modification Is Prepared (GOR) • Forwarded to SMD and Federal Program Managers
Formal Subdivision of Appropriated Funds Congress Office of Management and Budget Office of Secretary of Defense Chief, National Guard Bureau Army Guard Comptroller Air Guard Comptroller USPFO Program Manager Asst USPFO, Fiscal
Obligations of Cooperative Agreements Program Manager/Air ComptrollerSubmits request to setup initial or modify CA GORReviews request/Prepares CA or modification USPFO and TAG Signature GOR makes distribution Federal PM/RA sets up informal ledger, Army PM enters reservation in AFCOS Federal Accounting ensures obligation is posted in accounting system SMD Resource Mgr sets up data in State Accounting System
SMD Should Have Knowledge Of Funds During The Year. Federal Program Manager Must Have Knowledge Of Status Of Funds. GOR Should Be Maintaining Complete File On All Appendices. Accounting and Tracking of Funds
Process Agreements Are Based On Reimbursement To The SMD For Expenses Incurred In Maintaining the Guard • Methods Of Reimbursement: • Advance Payment - Known Amount Forwarded To SMD On A Designated Schedule • Reimbursement - Monthly Request For Reimbursement For Expenses Which Occurred During The Month
STEPS FOR REIMBURSEMENT • Step 1: SMD funds expended • Step 2: SMD submits for reimbursement • Step 3: Federal Program Manager/Resource Advisor must: • Verify documentation for accuracy • Certify charges are valid and are authorized for payment • Step 4: Forward to ARNG (Pay/Exam)/ANG-FM for State Reimbursement
Process • Identify Expense As Non-Reimbursable Or Reimbursable (From Appendix Or NGR 5-1 Chapters) • Determine Percentage Of Reimbursement (Appendix,NGR 5-1 Chapters, FISP (Army O&M), Air Facilities 7115 Report • Prepare Request For Reimbursement (SF 270) - Must Be Signed By Federal Program Manager • Forward To USPFO / Or Air Comptroller By AMSCO / Or EEIC • Copy Forwarded To GOR
FISP : Facilities Inventory And Support Plan Air Facilities 7115 Report AMSCO : Army Management Structure Code EEIC : Element Of Expense Code
Reimbursement Flowchart State Military Department Contracts with VendorPays VendorPrepares request forReimbursement and submits toFederal PM/RA Federal PM/RA request supplies, etc. Federal PM/RA reviews request and certifiesForward request to Federal comptroller Federalcomptroller ensures funds are obligated to cover reimbursementReimbursement processed through CAPS as EFT Payment DFAS processes EFT payment to State Military Department
RISK ASSESSMENT • Conducted by the Program Manager • Assistance may be available from: • Internal Control Program Administrator • Internal Review • Supervisors, past Program Manager • Must identify vulnerabilities to determine the extent of controls • The risk assessment is not static – it needs continual review
DEFINITION OF INTERNAL CONTROLSSAME AS MANAGEMENT CONTROLS Internal controls are the process that helps ensure mission objectives are met: • Helps ensure accountability • Does not guarantee success or ensure against waste, fraud or mismanagement, but helps mitigate RISK • Three objectives of internal controls: • Effective and efficient operations • Reliable financial reporting • Compliance with applicable laws and regulations
FUNDING APPROVAL FISCAL YEAR
MANAGEMENT CONTROLS • Determine which programs within your state may generate Program Income. • Validate whether the programs are generating Program Income • Is the Income being submitted to the State Resource Manager? • Has the State Resource Manager used the Income to support the appropriate program that generated the Income? • Has the GOR modified the appropriate Cooperative Agreement and reported the Income in DAADS?
MANAGEMENT CONTROLS • Is In-Kind Assistance (IKA) approved by the USPFO as an exception? • Has the CA been modified converting cash contribution to IKA with no change in total value? Validate that any State share is applied on future reimbursement.
MANAGEMENT CONTROLS • Has advance been collected in a timely manner? • Do requests for reimbursement meet the cost reimbursement rules of allowable, allocable, reasonable and availability of funds? • Has the Federal Program Manager or Assistant USPFO’s certified requests for reimbursement prior to submitting to the Finance Office for payment?
Operations & Maintenance Army - % varies w/FISP Air – 100% (Real Property) 75%
Environmental Army – 100% Air – 75%
Security Guard Army - 100% Air – 100%
Telecommunications & Distance Learning 100%
AntiTerrorism Program Management 100%