Attachment C.doc

ATTACHMENT C

ADVANCE PAYMENT GUIDELINES

In accordance with FAR 32.404(a)(9) and 32.404(b), Part 32 does not apply to advance payments authorized by law for “transactions excluded by agency procedures under statutory authority”, and “agencies may issue their own instructions to deal with advance payment items.”

Section 305 of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 255) is the statutory authority for Part 32 of the FAR concerning contract financing for small, or disadvantaged businesses. It contains an exemption for all functions of the U.S. Government authorized by the Foreign Assistance Act of 1961 (22 U.S.C. 2393), as amended. The Inter-American Foundation was chartered under the Foreign Assistance Act, as amended in 1969 and is therefore exempt from Part 32 of the FAR regarding contract financing.

In accordance with the above statutory authority the following guidelines are established to provide advance payments as necessary to contractors under contract with the IAF:

The Contractor may request an advance payment, for a period no longer than three months, by submitting the attached form. The Contractor shall submit the request to the IAF Contracting Officer’s Technical Representative (COTR) for approval. The Contractor shall be responsible for forwarding a copy of the advanced payment form to the Administrative Resource Center, Accounting Services Division, Accounting Operations Branch, so that payment can be processed. Documents may be submitted via e-mail, FedEx, or regular mail.

After payment is received, the Contractor is responsible for accounting for the use of the advanced funds. The Contractor shall submit documentation on the use of the funds and the amount of the advance remaining to the IAF COTR designated in the contract. Prior to the last payment on the task order, the IAF COTR will determine whether there is any outstanding balance on the advance payment. If there is a balance, it will be deducted from the final invoice of the task order and receipts shall be submitted at that time.

The advance payment is restricted to certain items:

Travel expenses and other costs related to workshops, conferences, seminars, or other grantee assistance or verification visits planned by the Contractor, or required as part of the performance of the contract, are examples of items that are permissible for advance payment. Operating expenses and administrative overhead costs such as equipment, office rental, furniture, and phone lines may be considered but are not encouraged. Honoraria may not be included in the advance payment.