FY18_SPP_Accounting_Instructions_Final_(2)_Small_Projects.pdf

FY18 Air Force Funded Small Projects Program - Accounting Instructions

Revised Dec 2017

Introduction:

The following instructions identify the responsibilities and provide accounting procedures for the FY18 Air Force Services Small Projects Program (SPP). Execution of these project funds will be through an Automated Reimbursement Account (ARA) established for each individual approved project. These instructions assist installation personnel with various responsibilities to track and account for an SPP over the life of the project. Several individuals within the FSS have a role in the SPP process; the installation Resource Manager (RM) certifies funds on the funding document, the NAF Contracting Officer or Servicing Contracting Office (SCO) procures items or services approved for the specified SPP projects, and the design or construction agent (DA/CA) ensures the NAFI receives the proper services per the contract.

SPP project funds are monitored and controlled by AFSVA/FMA, and AFSVA/SVXF. AFSVA will only reimburse centrally funded costs for projects approved by AFSVA/CC. These instructions apply to all FY18 projects funded through the AF Morale, Welfare, and Recreation Fund (AFMWRF).

Purchase Card (P-Card): The ARA process does not have the capability to reimburse P-Card payments; your installation will not be reimbursed for any P-Card purchases related to this program. Do Not use the P-Card or a disbursement request for purchases related to these projects. Do use the authorized reimbursement process as described in these instructions.

Project Number: FY18 SPP projects are identified by project number. The project number sequence is 186XXX. The last three digits of this sequence are unique to each project. All correspondence, invoices, and documents must reference this number.

Cost Share: The centrally funded cost share for approved projects is made available through an ARA established for each project. The installation cost share for approved projects is not tracked through an ARA; monitoring these costs is a base responsibility. Cost overruns beyond the total approved cost of the project are the responsibility of the installation. Installations must notify AFSVA/SVXF if the installation provides additional funding over the approved cost share amount.

GLACS for SPP: This program requires the use of the mandatory General Ledger Account Codes (GLACs) listed in Attachment 1.

A. Base-level Responsibilities:

1. Obligate and expend funds according to NAF construction and contract procedures. The NAF AO, working with the Shared Service Center (SSC), follows the general procedures outlined in Program Training Aid (TA) NA-36, Accounting Instructions for Automated Reimbursement Account (ARA) & Reconciliation of GLAC 185, Construction in Progress, along with these instructions to process and track centrally funded SPP construction expenditures.

2. Use AFSFMS GLAC 1850010, Construction in Progress - SPP. Do not use any other

185XXXX GLAC.

FY18 Air Force Funded Small Projects Program - Accounting Instructions

3. The NAF AO is required to maintain a separate detailed “financial project folder” for each SPP project (See TA NA-36, paragraphs 3.d. and 3.e). Use this folder to closely track all expenditures, document all payments, and identify line-item purchases and/or services. This folder is your subsidiary record for GLAC 1850010, and must be reconciled to your general ledger monthly. The “financial project folder” should always agree with your Quarterly Status Report (paragraph 9, below).

4. Immediately upon receipt of funds authorization, credit the project amounts to the appropriate Reserved Equity account(s): GLAC 2760001, Current FY Capital Requirements and/or GLAC 2800000, Expendable Purchases – Total – Current Fiscal Year. Debit the centrally funded SPP cost share to GLAC 2790010, Capital Requirements – AF Funded Reserve - SPP.

5. Follow normal monthly posting/reversing procedures for the amounts in the Capital Requirements, Retained Earnings, and Outstanding Orders accounts. Record the appropriate amount in GLAC 2750010, Outstanding Orders – AF Funded – SPP. The offsetting GLAC for “adjusting” base & AF Funded Reserved Equity is GLAC 2900000, Retained Earnings.

(Reference AFMAN 34-214, Procedures for Nonappropriated Funds Financial Management and Accounting)

6. Follow the SSC vendor payment and reimbursement procedures in Section C, NAF SPP CONSTRUCTION CONTRACTS – Payment and Reimbursement Procedures. The SSC Cash Reconciliation Section will process a GLAF to record the CMIP reimbursement as a debit to GLAC 1010000, Cash-in-Bank, and a credit to GLAC 2810010, Grants Non-Operating - SPP.

SSC Cash Reconciliation Section will request the base specific accounting strings from the NAF AO. The NAF AO may choose to record the non-operating grant in the applicable activity cost center of the project or in the balance sheet cost center (0000).

7. Upon contract award the RM sends an Email request to AFSVA/SVXF to allocate funds to the installation’s ARA along with a copy of the awarded contract. The Email should reference the SPP project number (186XXX), outline the reason (i.e., design phase is complete, “Design and Build” contract is awarded, actual construction contracts have been awarded, etc.), and include the specific amount required. Email addresses are in Section E. AFSVA/SVXF will reply with an Email notification once funds are approved and allocated.

8. Status Report: The NAF AO will use myPers to submit a scanned RM-certified SPP Status Report (Attachment 2). Submit a separate spreadsheet for each project. Update the spreadsheet with each new contract award, receiving report, and payment with the corresponding ARA reimbursement. Also provide the contract along with the status report, send to AFSVA.SVXF.InvoicePayments@us.af.mil. For end-of-project reporting requirements, see Project Closeout Report in paragraph D.5 below.

9. The NAF AO is the office of record and must maintain documentation (contracts, invoices, receiving documents, and proof of payment) to support all expenditures for all SPP

Commented [FMSGUAA1]: What type of contract is this?

FY18 Air Force Funded Small Projects Program - Accounting Instructions purchases. The NAF AO must be able to produce a complete record of cost should AFSVA/SV or AFSVA/FMA request one.

10.Submit a Project Closeout Report when the project is completed (paragraph D.5. and Attachment 3).

C. NAF SPP CONSTRUCTION CONTRACTS – Payment and Reimbursement Procedures (See paragraph B.8.): This section is an excerpt from the Construction-in-Progress instructions available on the Agency’s NAF-T (SSC) website, TA-AFSFMS-23, updated for the SPP-specific processing and reporting requirements. DO NOT USE A P-CARD OR A DISBURSEMENT REQUEST FOR PURCHASES RELATED TO THESE PROJECTS as the ARA process does not have the capability to reimburse these type payments.

1. Installations must enter all awards into IBPS in order for the SSC to process timely and accurate payments and reimbursements. This includes awards generated within IBPS, non-distributed vendor awards, and awards issued by the Servicing Contract Office (SCO).

Note: These procedures are the normal SSC construction payment and reimbursement procedures, updated with SPP-specific exceptions and/or requirements

a. Use the “by proxy” function in IBPS to input awards generated outside IBPS (e.g., by the Base SCO). In the line description(s), begin the description with either DESIGN, CONSTR, or EQUIP, as appropriate. (Each of these must be capitalized and spelled exactly as shown.)

(1) For initial input of a new award, where payment has not been requested or made, perform separate input for the primary award and for each modification issued.

a) Never accomplish a modification (under any circumstances) without prior approval from AFSVA/SVXF. An unapproved modification may result in a disapproval of the reimbursement for the associated costs.

b) The added cost becomes a base responsibility if a modification results in the project amount exceeding approved project funding and/or original project scope.

(2) For initial input of awards where receiving has been performed or payments have been made, input the data and contract balances, by line item, to reflect the basic award and any modifications.

a) Scan the award and modifications and attach them in the “History Links” area “Memo for Record” tab to facilitate any future research/review required.

b) Input any new modifications “by proxy” thereafter and make changes to the appropriate tabs.

(3) Input all modifications in the same manner for the duration of the project.

FY18 Air Force Funded Small Projects Program - Accounting Instructions

a) Receive invoices at the installation.

b) Obtain certification from either Base Civil Engineer, Base CONS, that the work on the invoice was accomplished. Ensure invoice includes the award number and SPP Project # 186XXX.

c) Perform receiving in IBPS.

b. Scan and Email certified invoices and receiving reports to AFSVA/SVXF Capital Improvement Division using the following address:

(1) AFSVA/SVXF Invoice Payments email group, AFSVA.SVXF.InvoicePayments@us.af.mil.

(2) The subject line of the email must read: “Installation Name, Project Title, Invoice #, SPP Project # 186XXX, ARA #, CMIP #, and one of the following - DESIGN, CONSTR, or EQUIP.”

a) If the award was not established with a line description(s) beginning with either DESIGN, CONSTR, or EQUIP (as appropriate), the ARA will not be processed without manual intervention. Example: Anywhere AFB, Repair/Renovate Running Track, Invoice X, SPP # 186XXX, ARA #

57491XXXXX, CMIP #XXXXXXXXXX, CONSTR

2. SVXF will forward the invoice(s) to the SSC for processing. The SSC will enter the invoice data into the AFSFMS for matching to award and receipt data interfaced from IBPS and verify line descriptions begin with DESIGN, CONSTR, or EQUIP, or will update the lines with this information. The AFSFMS Accounts Payable function will then process the payment, which will automatically produce the cash transfer to reimburse the installation CMIP account. SSC Cash Reconciliation Section will process a manual GLAF to record the installation ARA/SPP reimbursement to debit (increase cash) GLAC 1010000, Cash-in-Bank, and credit GLAC 2810010, Grants Non-Operating - SPP. (See paragraph B.7.)

D. Beneficial Occupancy:

1. When the NAF AO is notified of beneficial occupancy, begin transferring items from AFSFMS GLAC 1850010, Construction-in-Progress – SPP, to the appropriate activity asset account. The “New Asset Template Jan 2014 Version 8” is processed in NAFDIS to ensure all items are properly classified and transferred to the Master Fixed Asset Listing (MFAL) using the asset designations/types in Attachment 1.

NOTE: Beneficial occupancy occurs when Base Civil Engineer accepts the facility/renovation from the contactor. Beneficial occupancy is not dependent on having received a final invoice.

Follow-on payments for minor adjustments or additional work can still be added to the “parent” asset after the project is closed. (See AFMAN 34-214, paragraph 7.2.5.)

FY18 Air Force Funded Small Projects Program - Accounting Instructions

2. Capital Assets: Follow AFI 34-204, Property Management, and AFMAN 34-214, Chapter 7, to determine which purchases qualify for capitalization.

a. Establish depreciation periods according to AFMAN 34-214 Table 7.2. Use the asset midpoint life expectancy for Furniture and Equipment, and the Lower Limit for Facility and Renovations.

b. Use the appropriate asset types and GLACs when transferring the project(s) to your

MFAL.

3. Expense Items: Purchases that do not qualify for capitalization must be recorded as a direct expense. These items will be posted to the applicable expense GLAC in the benefiting cost center. Do not use GLAC 1300001, Prepaid Expense, to prorate expenses for any items.

(This supersedes TA NA-36, paragraph 4f.) Include pilferable items on the MFAL.

4. Once beneficial occupancy is attained and the Construction in Progress account is cleared, no additional items may be posted into GLAC 1850010. Post any additional, authorized SPP purchases or services associated with the project [received after beneficial occupancy] directly to the appropriate asset or expense account.

a. Continue to process your ARA reimbursements until all purchases/services are paid and you notify AFSVA/FMAA, SVXF, via Email, the project is complete.

b. Continue to submit the mandatory quarterly status reports until you are certain that all SPP payments [and reimbursements] have been processed and the SPP project is complete.

5. Project Closeout Report (MANDATORY): Submit the Project Closeout Report within 30 days of project completion and certification of beneficial occupancy is received.

(Attachment 3)

a. The NAF AO is responsible for completing the Project Closeout Report. The RM will certify and submit a scanned certified memo stating the project is complete and the attached report details the final distribution of all items and services procured as part of this SPP construction project. Include the project number, total and final project costs in the certification.

b. The Project Closeout Report lists each individual asset, facility, equipment item, bulk purchase, pilferable item, and expenses recorded to the G/L for the specific SPP project. Submit a separate report for each project.

c. RM must submit a Project Closeout Report to AFSVA/FMAA via email, with a courtesy copy to AFSVA/SVXF. Addresses listed in Section E.

d. The RM must submit an updated Project Closeout Report and certification if any lingering, late SPP purchased items/services are processed (received and paid/reimbursed) after the Project Closeout Report is sumbitted; changes should be highlighted on the new submission.

FY18 Air Force Funded Small Projects Program - Accounting Instructions

e. The final closeout report must reconcile 100% to the SPP reimbursements processed under the SPP ARA; including all additional “late” purchases/payments.

E. Email Addresses for Funds Allocation and Reports Submission:

1. Email all requests to load or transfer funds to your SPP ARA account from “Approved” to “Allocated” to AFSVA/SVXF Invoice Payments email group, AFSVA.SVXF.InvoicePayments@us.af.mil.

2. Submit Project Closeout Reports to Ms. Jeri Cumming, jeri.cummings.1@us.af.mil and Ms. Rhonda Drummonds, rhonda.drummonds@us.af.mil and courtesy copy AFSVA/SVXF email group at AFSVA.SVXF.InvoicePayments@us.af.mil.

POCs for questions concerning these instructions are Ms. Jeri Cummings, AFSVA/FMAA, DSN 969-7411; Ms. Rhonda Drummonds, AFSVA/FMAA, DSN 969-7142.

Attachments:

1. Accounting Codes – Small Projects Program

2. SPP Construction Status Report

3. SPP Project Closeout Report

4. Monthly Adjusting Entries

SPP Accounting Codes.docx

SPP Project Closeout

Report.xlsx Monthly Adjusting

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