DOE O 2200.6A Chg 2, Financial Accounting

DOE 2200.6A 1-7-93a THIS PAGE HUST BE KEPT WITH ME 2200.6A, FINANCIAL ACCOUNTING. DOE 2200.6A, FINANCIAL ACCOUNTING, HAS REVISED DOE 2200.6 TO REFLECT ORGANIZATIONAL TITLE, ROUTING SYMBOL, AND OTHER EDITORIAL REVISIONS REQUIRED BY SEN-6. IN ADDITION: (1) CHAPTER III, PARAGRAPH 5b(6) HAS BEEN REVISED TO REFLECT THE NEW REFERENCE OF THE EHERGENCY UNEMPLOYMENT COMPENSATION ACT (IF 1991 WICH REPLACES THE FANILY SUPPORT ACT OF 1988; (2) CHAPTER VII, PARAGRAPH 2i (l)(b) HAS BEEN REVISED TO INCLUDE GUIDANCE FOR THE DISCLOSURE OF LOSS CONTINGENCY ACCRUALS BASED ON MATERIALITY AND POSSIBLE IMPACT ON THE AGENCY’S FINANCIAL STATEMENTS AND OPERATIONS IN ACCORDANCE WITH TITLE II, GENERAL ACCOUNTING OFFICE POLICY AND PROCEDURES MANUAL FOR GUIDANCE OF FEDERAL AGENCIES; AND (3) CHAPTER IX, HAS BEEN REVISED TO REFLECT THE RESCINDING OF PREVIOUS PARAGRAPH 2g(2)(d), WHICH PROVIDED THAT A CUSTONER’S CASH DEPOSITED INTO AN ESCROH ACCOUNT AT A FINANCIAL INSTITUTION CONSTITUTED A VALID BUDGETARY RESOURCE. PARAGRAPH 5b HAS BEEN REVISED TO INCLUDE A REFERENCE TO DOE 2200.5B FOR DETAILED POLICY AND GUIDANCE FOR DETERMINING AVAILABILITY OF APPROPRIATIONS AND FUND BALANCES. PARAGRAPH 7b HAS BEEN REVISED TO INDICATE THAT THE SECRETARY HAS DELEGATED AUTHORITY, ON A NONEXCLUSIVE BASIS, TO THE CFO TO ACCEPT PUBLIC DONATIONS. DUE TO THE NUMBER OF PAGES AFFECTED BY THE REVISIONS, THE ORDER HAS BEEN ISSUED AS A REVISION. U.S. Department of Energy e Washington, D.C. ORDER I DOE 2200.6A 1-7-93 SUBJECT: FINANCIAL ACCOUNTING 1. 2. 3. 5. 6. 7. RJRPOSE. To provide Department of Energy (DOE) policy and general procedures for the financial management of cash, advances. receivables, inventories. and Investment of funds; accountability for plant and capital equipment; current and long-term liabilities; and accounting for equity, reimbursable work, revenues, collections, and expenses. wFILATIQff. DOE 2200.6, FINANCIAL ACCOUNTING, of 10-24-88. X.QK. The provisionsof this Order apply to all Departmental elements and integrated contractors performing work for the Departmental provided bylaw and/or contract andas implementedby the appropriate contracting officer. ~. The Bonneville Power Administrationis governed by the provisions of the Government Corporation Control Act and, as such, operates in accordance with generally accepted accounting principles issued by the Financial Accounting Standards Board. In following the generally accepted accounting principl esand meeting legislative requirements, the Bonneville Power Administration will, from time to time, deviate from the provisions of this Order. ~. DOE 2200.4, ACCOUNTING OVERVIEW, Attachment, “References,” provides a consolidated listing of authoritative reference sources for all subject matter contained in the accounting directives (DOE 2200 series). (lIl. To ensure that all assets, liabilities, equity. revenue. and expense accounts are properly maintained and are consistent with public law, the Office of Management and Budget, the Department of the Treasury, and the General Accounting Office. -TIONS. DOE 2200.4, Attachment. “Definitions,” provides a consolidated glossary of financial terms used in the accounting directives. In some instances a term may be defined within the textof an Order where its useis limited to the immediate text. I DISTRIBUTION: INITIATED BY: All Departmental Elements Office of Chief Financial Officer DOE 2200.6A 1-7-93

8. ~IBIm. DOE 2200.4, Chapter III, ”Responslbilitles,” contains the ● responsibilities for accounting directives. In some instances. responsibil- itiesmay be contained within the text ofan Order where their useis limitedto the immediate text. BY ORDER OF THE SECRETARY OF ENERGY: @ DOLORES L. ROZZI A*t “ Director of Administration and Management DOE 2200.6A 1-7-93 RI -CASH 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . ● ● ● ● ● ● ● “ ● ● “ Purpose . . . . . . . . . . . . . . . . . . . . . . ● . ● . ● “ ● “ ● “ ● “ ● K Background . . . . . . . . . . . . . . . . . . . ● . ● ● ● ● ● ● ● ● ● ● ● ● c. Applicability . . . . . . . . . . . . . . . . . . . . ● ● ● ● ● ● ● ● ● ● ● d. Requirements . . . . . . . . . . . . . . . . . . . . . . ● ● ● ● ● ● ● ● ● ● e. Review and Monitoring ofCash Management . . . . . . . . . . . . . . . 2. CollectlonsandDeposits . . . . . . . . . . . . . . . . ... ... =.*oo a. Collection Mechanisms . . . . . . . . . . . . . . . . . .=.....=. (1) Electronic Funds Transfers . . . . . . . . . . . . . . . . . ● ● . (2) Lockboxes .. ... ... ... O...O ... O= OOOOOOOOO (3) Deposits with Financial Institutions . . . . . . . . . . . . . . (4) CreditCards . ...........==.” ... =.== =”=*o= b. Electronic Funds Transfer Collections . . . . . . . . . . . . . . . . . c. Federal Automated Lockbox Services . . . . . . . . . . . . . . . . . . . (1) General . . . . . . . . . . . . . . . . . .......=..=.=== (2) TypesofLockboxes ... ... ~...=o. . . .= . . . . ..*o (3) Implementation . ..........***** ... ... ==*oo d. Department of the TreasurY General Account . . . . . . . . . . . . . . e. Preparation ofDeposits . . . . . . . . ........= .. ..=... (1) General . . . . . . . . . . . . . . . . .. ... ..000 =oooo= a (2) Examination of Remittances . . . . . . . . . . . . . . . . . . . . (3) Preparing Checks for Deposft . . . . . . . . . . . . . . . . . . . (4) Deposits with a Federal Reserve Bank or Branch . . . . . . . . . (5) Deposits with Commercial Financial Institutions . . . . . . . (6) Processing Checks PaYable in Foreign Currency . . . . . . . . . (7) Uncollectible Items+ebit Voucher . . . . . . . . . . . . . . . . f. Payroll Deductions . . . . . . . . . . . . . . . . . . . ● = .= ● “ ● = ● 9. Reporting and Reconciling Collections and Deposits . . . . . . . . . (1) LargeDeposits . . . . . . . .. ... . .=.=000000 ● . . .= (2) StatementofTransactions . ..........====. . . . . . (3) Reconciliation of Receipt Account Ledgers . . . . . . . . . . . 3. Disbursements . . . . . . . . . . . . . . . . . . . . . . . . . c ● ● ● ● ● ● ● ● Introduction . . . . . . . . . . . . . . . . . . . . . . . . ● . ● ● ● ● ● ● ;: Methods ofMaking Disbursements . . . . . . . . . . . . . . . . . . . . . (1) Department of the TreaWrY Disbursement and General Services Administration Forms . . . . . . . . . . . . . . . . . . (2) Department of the Treasury Payments on Standard Form 1166 OCR, “Voucher and Schedule of Payments” . . . . . . . . . . . . . (3) Electronic Funds Transfer PaYments ... ... ... ..= o.= c. Reporting and Reconci 1 ing Disbursements with the Department of the Treasury . . . . . . . . . . . . . . . . . . ● . . . ● ● ● . ~ “ “ “ ● ● (1) Reportin9 ... ... ... .. .00=0 ● ... CO OOOOOOOO (2) Reconciling ... ... ..*o. =cooo ... O. O . OQOOOQ d. Intragovernmental Billin!i! and Collection Systems . . . . . . . . . . (1) Online Payment and Collection SYstem . . . . . . . . . . . . . . (2) Simplified Intra90vernmental Billing and Collection SYstem (3) Standard FOrm1080. ”VOucher for Transfers Between

Appropriations andlor Funds” . . . . . . . . . . . . . ● “ “ ● ● “ I-1 I-1 I-1 I-1 I-1 I-2 I-2 I-2 I-2 I-2 I-3 I-3 I-3 I-4 I-4 I-4 I-4 I-5 I-7 I-7 I-7 I-8 I-8 I-8 I-8 I - l o I - l o 1-10 1-10 1-10 1-10 1-11 1-11 1-11 1-11 1-12 1-16 1-20 1-20 1-21 1-21 1-21 I-22 I-22 DOE 2200.6A 1-7-93 (4) Standard Form 1081. “Voucher and Schedule of Withdrawals andCredft” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) Reconcflfatfon to the Department of theTreasury . . . . . . . e. Llmfted Payabillty and Clafmabflfty . . . . . . . . . . . . . . . . . . (1) Payabil ity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Claimability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Reclamation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Llmlted Payability Cancellation . . . . . . . . . . . . . . . . . (5) Reversals of Lfmfted Payabilfty Cancellations . . . . . . . . . (6) Accounting for Checks Canceled Under Title XProvfsfons . . . (7) Copyand RecordStorageCosts . . . . . . . . . . . . . . . . . . . (8) Recertfffcatlon of Payment . . . . . . . . . . . . . . . . . . . . 4. Contract Financing Payments . . . . . . . . . . . . . . . . . . . . . . . . . . Deffnitfon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :: Due Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Nonrecurring Contract Financing Requests . . . . . . . . . . . . . . . ;: Proper Contract Ffnancfng Request . . . . . . . . . . . . . . . . . . . e. Annotation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . f. Interest Penalty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. Payments Under Ffnancfal Assistance Instruments . . . . . . . . . . . . . General :: Not Subje~~~o~~e”&dm~~ ;a~~e;~~c~ ; : : : : : : : : : : : : : : : : : 6. Review and Certfficatfon of Invof ces, Vouchers, and Cl afms Introduction . . . . . . . . . . . . . . . . . . . . . , . . . : : : : : : : ;: Terms . . . . . . . . . . . . . . . . . . . ....O. .0 . . . . . . ..O (1) Invofces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) InvoicePayments . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Day . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;: Requfred Payment Documentation . . . . . . . . . . . . . . . . . . . . . (1) Contract . . . . . . . . . . . . . . . . .. ... ... ..O.... (2) Invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) RecefvingReport . . . . . . . . . . . . . . . . . . . . . . . . . . e. Processing Invofces for Payment . . . . . . . . . . . . . . . . . . . . . (1) Actions Required Prior copayment . . . . . . . . . . . . . . . . (2) Prepayment Examinatfonby Statistical Samplfng . . . . . . . . (3) Request for Progress Payments Under Construction Contracts . f. TfmfngofPayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) PaymentDueDate . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) RecefptofInvoice . . . . . . . . . . . . . . . . . . . . . . . . . (3) Recefpt and Acceptance of Property and Servfces . . . . . . . . (4) PaymentfnAdvanceofRecefpt . . . . . . . . . . . . . . . . . . . 9= Dfscounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) WhenToTakeDfscounts . . . . . . . . . . . . . . . . . . . . . . . (2) Calculation of Dfscount Perfod . . . . . . . . . . . . . . . . . . (3) Determination of Cost-Effectiveness . . . . . . . . . . . . . . (4) Accounting for Lost Discounts . . . . . . . . . . . . . . . . . .

h. Penaltfes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Payment of Interest Penalties (2) Payment of Interest Penalties U;d&”C~;s~;u~~i&”C&t~~c~~ : (3) Payment of Interest Penalties UnderArchftect Engineer Contracts (4) Additional ~n;e;&~b&;{t;&” : : : : : : : : : : : : : : : : : : (5) Payments Not Subject to Penalties . . . . . . . . . . . . . . . . I-23 ● I-23 I-23 I-24 I-24 I-24 I-24 I-25 I-25 I-26 I-26 I-26 I-26 I-26 I-26 I-27 I-27 I-27 I-27 I-27 I-27 I-27 I-27 I-27 I-27 I-28 I-28 ● I-28 1-30 1-30 1-30 1-31 1-31 1-31 I-32 I-32 I-33 I-33 I-34 I-35 I-35 I-36 I-36 I-36 I-36 I-37 I-37 I-37 I-39 1-41 1-41 1-41 ● i i DOE 2200.6A 1-7-93 i. Departmental Qual~ty Control Program . . . . . . . . . . . . . . . . . I-42 (1) Standards I-42 (2) Procedures {o; ;e&ri;e;;ai tiuiif~j ~o;;r~l” ;r;g;;m” : : : : : I-43 J. Prompt Payment Report . . . . . . . . . . . . . . . . . . . . . . . . . . . I-44 k. Offsets Against Debtors I-44 (1) General . . . . . . . : : : : : : : : : : : ~ : : : : : ~ : : : : : : : I-44 (2) Withholding by Other Agencies on Behalf of DOE . . . . . . . . . I-44 (3) Offsets Against Employees . . 6 . . . . . . . . . . . . . . . . . . I-44 (4) Davis-Bacon Act and Contract Work Hours and Safety Standards Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-44 7. LettersofCredit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-45 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-45 ;: Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-45 c. Letter ofCreditMethods . . . . . . . . . . . . . . . . . . . . . . . . . I-46 (1) Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-46 (2) CashManagement . . . . . . . . . . . . . . . . . . . . . . . . . . . I-47 (3) Letters of Credit-Treasury Financial Communications System . . . . . . . . . . . . . . . . . . . . . . . I-48 (4) Letter of Credit-Federal Reserve Bank System I-52 (5) Preparation and Distribution of Forms . . . . . : : : : : : : : : I-58 (6) Closeout of aLetter of Credit . . . . . . . . . . . . . . . . . . I-58 (7) Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . I-59 8. Imprest Funds I-59 Introducti&” : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : I-59 K Authorization and Designation . . . . . . . . . . . . . . . . . . . . . . I-GO Increasing or Decreasing Authorized Balances . . . . . . . . . . . . . 1-60 ;: Securing and Disbursing Cash 1-61 (1) Replenishment of Principa”l ”A~v\;c~” :~:::::::::::~ : 1-61 (2) Managing Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-61 e. Safekeeping Facilities for Cash . . . . . . . . . . . . . . . . . . . . . I-62 f. Responsibi lities for Cashiers* Funds . . . . . . . . . . . . . . . . . I-62 (1) Personal Liability . . . . . . . . . . . . . . . . . . . . . . . . . I-62 (2) Duration of Liability I-62 (3) Responsibilities . ..::::::::::::: :::::::::: I-62 9. Transfer of Cash Between Cashl ers and Between Employees and Cashiers I-63 (1) Chang~; {n ”P;{n;i~;l ”C~~h\&~ “::::::::::::::: ::: I-63 (2) Transfer of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . I-64 (3) Advances to Alternates. . . . . . . . . . . . . . . . . . . . . . . I-64 (4) Advances for Subfunds . . . . . . . . . . . . . . . . . . . . . . . I-64 (5) Advances to Employees ● . . 0 . . 0 0 . I-64

h. Purchases, Hi scel 1 aneous Cask ;a~;e;&: &p’o; ~w;;d;, and Advances I-64 1. Accountabi lity Reports and Veriflcati on of Funds . . . . . . . . . . I-65 (1) Accountabi lity Reports . . . . . . . . . . . . . . . . . . . . . . I-65 (2) Evaluation of Accountabil ity Reports . . . . . . . . . . . . . . I-65 (3) Verifications ... ... ... ... .O. . . . . . . . . . . . . . 1-66 (4) Reporting Irregul arities and Missing or Lost Funds . . . . . . I-66 9. Special Deposit Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-66 Attachment I-l-Annual Certification Document . . . . . . . . . I-67 Attachment I-2+etermination of Cost-Effective Discounts. . I-73 Attachment I-3-Interest Penal tyAssessment Memorandum . . . I-75 Attachment I-4-Determination of Interest Penalty on a Proper Invoice Paid Late . . . . . . . . . . . . . . . . . . . . . . I-77 i i i DOE 2200.6A 1-7-93 Attachment I-5-Determination of Improper Discount Has Been Taken Attachment I-6-Determination of Interest Penalty Whenan . I-79 I;~e&~~~n;l;~&”a~ “ “ “ Improper Invoice Returned Late to Vendor . . . . . . . . . . . . Attachment I-7-Schedule of Financial Institution Processing Charges . . . . . . . . . . . . . . . . . . . . . . . . ● Attachment I-8-Calculation of Time Account Balance Required . . . . . . . . . . . . . . . . . . . . . . . . . . ● . . . . Attachment I-9-Sample Solicitation Letter . . . . . . . . . . . Attachment I-lO-Technical Representations and Certifications Attachment I-11-~p;;i;i~c~o’uAt”A;~e~~e~~ {o;&;;t~~~e” “ Checks-Paid Method of Letter-of-Credit Financing . . . . . . . Attachment I-12-Financial Institution’s Information onthe Checks-Paid LetterofCredit . . . . . . . . . . . . . . . . . . . Attachment I-13-Determining the Sample Size for Quality Control Reviews . . . . . . . . . . . . . . . . . . . . . . Attachment I-14-Checklist for Performing Quality Control Reviews . . . . . . . . . . . . . . . . . . . . . . PTERII -ADVANCES. PREPA.ULFXPFNSFS. ANDoTHERMs~TS 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ● Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :: Applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Advances (2) Prepayment’s”::::::: ::::::::::::::: ::::::: (3) Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Collateral Funds . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Advances . . . . . . ● . a. Advance;;;&i&~;d&ai ~~e~;i;~ : : : ; : ~ : : : ~ : . . . . . . . . (1) AdvancePaymentMethods . . . . . . . . . . . . . . . . . . . . . . (2) Monitoring and Control~in9 Advances . . . . . . . . . . . . . . . b. Advances to Contractors and Financial Assistance Recipients . . . (1) Amounts ofAdvances. . . . . . . . . . . . . . . . . . . . . . . . . (2) AdvancePaymentMethods . . . . . . . . . . . . . . . . . . . . . . (3) Monitoring and Controlling Advances . . . . . . . . . . . . . . . c. Advances toEmployees . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Procedures . . . . . . . . . . . . . . . . ..*. ..000000oo (2) Accounting forAdvances . . . . . . . . . . . . . . . . . . . . . . 3. Prepaid Expenses . . . . . . . . . . . . . . . . . . . . . ...... ● * .. ● Prepayments . . . . . . . . . . . . . . . . . . . . . . . ● . ● ● . . . . . s ;: Suspense Debits . . . . . . . . . . . . . . . . . . . . . . . . . . . ● ● ●

c. Accountingfor Prepaid Expenses . . . . . . . . . . . . . . . . . . . . . 4. Deposits . . . . . . . . . . . . . . 5. AcquiredColi&~ai “ : : : : : : : : : : : : : : : : . . . . . . . . . . . . . . a. InsuranceCollateral Funds . . . . . . . . . . . . . . . . . . . . . . . b. Employee Benefit Funds . . . . . . . . . . . . . . . . . . . . . . ● . . ● Annuity Funds . . . . . . . . . . . . . . . . . . . . . ● . . ● ● ● ● ● ● ● “ :: Accumulated Allowance for Purchase of Annuities . . . . . . . . . . . Attachment II-l-Thirty-Day Delinquency Notice . . . . . . . . Attachment 11-2-Sixty-Day Delinquency Notice . . . . . . . . . 1-81 I-83 I-85 I-87 I-89 I-93 I-99 1-105 1-107 11-1 II-1 11-1 II-1 11-1 II-2 II-2 II-2 II-2 II-2 II-2 II-3 II-3 II-3 11-4 II-5 II-6 11-6 II-7 II-7 II-7 II-7 II-7 II-7 II-8 II-8 II-8 II-8 II-8 II-9 11-11 iv DOE 2200.6A 1-7-93 LWTFR III - RUIYAEUS 1. Introduction . . . . Purpose . . . . :: Background . . Appl 1 cabil ity :: Policy . . ● . ● 2. Recording . . . . . . a. Timeliness . . ● . o . . e . . . . e * O . . . e * . . * * * * * * * * * * * ,.. O . . . . . .O. . . O . . . 0 0 . . . * * * * * * * * . . . . 0 . . . 0 . . . . . 0 . . 00 . . . ...===.== . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b. General Ledger and Subsidiary Records . . . . . . . . . . . . . . . . . Appropr~ation or Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . :: Partial Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . e. Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . f. Effective Management and Internal Control 9. Debts Originating Under Acquisition or Finan”ciai “ “ “ “ “ “ “ “ “ “ “ Assistance Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Debt Determination . . . . . . . . . . . . . . . . . . . . . . . . . (2) Recording (3) Demand for P~y~~n\” ::: ~::: :: ~:::::::: ::::::: (4) Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . h. Foreign Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Receivables That Prepayable inlJ. S. Dollars . . . . . . . . . . (2) Receivables That Are Payable in Forei9n Currency . . . . . . . e i. Long -Term Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Bi 11 i ng . . a. General” : : : : : : : : : ; : : : : : : : : : : : ~ : : : : : : : 1 : : : . . (1) Initial ”and Subsequent Demands for payment . . . . . . . . . . . (2) Amounts Due from Other Federal A9encies . . . . . . . . . . . . . b. Types of Invoices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Actual Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Estimated Value . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Timeliness of Invoices . . . . . . . . . . . . . . . . . . . . . . . . . . d. Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Basis and Amount . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Right To Review . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Payment Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Aging . . . . . . Aging S;h;~uie” : : : : : ; : : : : : : : : : : : : : 1 : : : ; : . . . . . . ;: System Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . Department of the Treasury Reporting Requirements . . . . . . . . . . :: DOE Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . 5. Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :: Standards for Administrative Collection of Claims . . . . . . . . . . (1) Demand for Payment . . . . . . . . . . . . . . . . . . . . . . . . . (2) Personal Interview with the Debtor. . . . . . . . . . . . . . . . (3) Claims Due from Employees . . . . . . . . . . . . . . . . . . . . . (4) Administrative Review of the Debt . . . . . . . . . . . . . . . . (5) Administrative Of fset Under Title 31. Section 3716, Of the II I-1 II 1-1 II I-1 II I-1 II I-1 II I-2 11 I-2 II I-2 II I-3 II I-3 II I-3 11 I-4 II I-4 II I-4 II I-4 11 I-4 II I-5 II I-6 11 I-6 II I-6 II I-7 II I-7 11 I-7 11 I-7 11 I-7 II I-8 II I-8 II I-8 II I-8 II I-8 11 I-8 II I-8 11 I-8 II I-9 II I-9 II 1-10 II 1-10 111-10 II 1-10 111-10 II 1-11 II 1-11 II 1-15 II 1-15 II 1-15 . - . Q United -States Code . . . . . . . . . .: . . . . . . . . . . . . . . III-17 (6) Federal Tax Refund Of fset Program . . . . . . . . . . . . . . . . 111-21 (7) Useof Credit Reportin9A9encies (8) Use of CollectIon Agenctes . . . . 0 0 . 0 0 . . . 0 0 0 0 . II I-25“a” “ ***************** II I-28 v DOE 2200.6A 1-7-93 6. 7. c. d. e. All :: (9) Use of and Reporting tothe Internal Revenue Service . (10) Suspension or Revocation of License or Eligibility . . (11) Liquidation of Collateral . . . . . . . . . . (12) Collection in Installments . . . . . . . . . : : : : : : : (13) Interest. Administrative Chargeso and Penalties . . . Standards for Compromise of claims . . . . . . . . . . . . . . . (1) Factors for Consideration in Compromising aClaim. . . (2) InstallmentPayments. . .. ... o.oeeoo, ee .OO (3) Joint and Several Liability . . . . . . . . . . . . . . (4) Further Review of Compromise Offers . . . . . . . . . : : (5) Restrictions .....,. .Oeooeoceo. o.ee . . . Standards for Suspending or Terminating Collection Action . (1) Suspension of Collection Activity . . . . . . . . . . . . (2) Termination of Collection Activity . . . . . . . . . . . (3) Transfer of Claims Referral of Claims to the tie~~r~~e~t”o} ~&~{c~b~~h6 “ “ “ “ General Accounting Office for Review or Litigation . . . . . (1) Determination of Referral Point . . . . . . . . . . (2) Timing of Referrals for Litigation . . . . . . . . . : : : (3) Subsequent Debtor Contact . . . . . . . . (4) Claims Referral Methods . . . . . . , . . : ~ : ~ : ~ : : : (5) Preservation of Evidence . . . . . . . . , . . . . . . . . (6) FOllOwup .. ... ... eooooe, o .0 owancefor Uncollectibl e Receivables . . . . . : 1 : : : 1 : ~ : General Estimatio”n~~~h~d~ “ : : ~ : : : : : : : : : : : ~ : : : : : : : : : (1) Specific Identification Method . . . . . . (2) General Allowance Method . . . . . , . . . : : : : : : : : collectible Receivables . . . . , . , . . . . . . . . . . . . . . . . General . . . . . . . . . . . . Authority . . . . . . . . . . . ~ ~ ~ ~ ~ ; ~ ~ ~ ~ ~ ~ ~ ~ ~ “ “ “ “ Timeliness . . . . . . . . . . . . . . . . . . . . . . . . . : : : : Documentation . . . . . . . . . . . . . . . . . , . . . . . . , . . Writeoff Reportofl#~{t~e~~O~~ ~ek~i~~bie~” : : : : : : : : : : : : : : : Reinstatements and Collections . . . . . . . . . . . . . . . . . Attachment III-l-Format for promissory Note Containing Agreement for Judgment . . . . . . . . . . . . . . . , . . . 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . Purpose . . . . . . . . . . . . . . . . , . . . . . . .

& Applicability . . . . . . . . . . . . . . . . . . . . c. Exceptions . . . . . . . . . . . . . . . . . . . . . . Requirements . . . . . . . . . . . . . . . . . . . . . . . . :: Investment Procedures . . . . . . . . . . . . . . . . . . General . . . . . . . . . . . . . . . . . . . . . . :: Investment Procedures with the Department of~h~ (1) Responsibility for Selection of Securities (2) Investments .. .eo. o.e. e..OOO . . (3) Redemptions .. ... .e. oeeoeee . (4) Confirmation Letters . . . . . . . . . . . : : . . . . ...0 . . . 0 . 0 . . . . . . . . . . . . . . . . . . ● 0 . . . . . . . . . 0 . 0 . . . . . . . . . . . 0 . . . . . . . . . . . . 0 . . . . 0 . . . . . . . . . . . . . . * O . . . . . . . . ● . . . . . 0 . ● . . . ● . . . . 0 0 . .0.. . . 0 . . 0 . . ● . . . ..0. .0.. ● . . , . 0 . . . . . . . . . . . . . . . . . . ● . . 0 . . ● . . , 0 . . . . . . . Treasury . . . . . . . . . . ● ● ✎ ✎ ✎ ✎ ✎ . . . . . . . . . . . . . . . . .*.*. . . . . . .00.. . . . . . . . . . . . . . . . . . . . . . 0 . . 0 . . . . . . . . . . III-29 III-29 111-30 111-30 III-32 III-35 III-35 III-37 III-37 III-37 111-37 III-37 III-38 111-40 111-41 111-41 III-42 III-44 III-44 III-44 III-45 III-45 III-46 III-46 III-46 III-46 III-46 111-47 III-47 III-47 III-47 III-48 III-48 III-48 III-48 III-49 Iv-1 IV-1 Iv-1 IV-1 IV-1 IV-2 Iv-2 IV-3 IV-3 IV-4 IV-4 IV-5 vi DOE 2200.6A 1-7-93 (5) Portfolio Management Practices . . . . . . . . . . . . . . . . . . IV-5 4. Recording Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-5 Acquisition of Investments . . . . . . . . . . . . . . . . . . . . . . . IV-5 ;: Interest Accruals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-5 co Amortization of Premiums and Discounts . . . . . . . . . . . . . . . . IV-5 d. Redemption of Investments . . . . . . . . . . . . . . . . . . . . . . . . IV-6 5. Department of the Treasury Reporting Requirements . . . . . . . . . . . . IV-6 PTFR V . IN~ (Reserved ) 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-1 K ;: e. f. 9. h. i. 2. Real a. b. ;: e. f. 9. h. ;: !/: Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pol i Cy Capital iz”a~ii; &i;e;~a” : : : : : : : : : : : : : : : : : : : : : : : : : Property Record Unit Concept . . . . . . . . . . . . . . . . . . . . . . Guidelines for Distinguishing PI ant and Capital Equipment Expenditures from Operating Expenditures . . . . . . . . . . . . . . . Accounting for Maintenance. Repairs, Betterments, and Replacements . . . . . . . . . . . . . . . . . . . . . . (1) Repair (2) Maintena;c~” ::::::: :::::::::::::: :::::::: (3) preventive Maintenance . 0 . . . . . . . . . . . . . . . . . . . . (4) Betterments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Plant and Equipment Changes . . . . . . . . . . . . . . . . . . . . . . . (1) Construction Work in Progress (2) M~l; [~ion, Dismantling, and Re;o;;l ”C~;t; ;n~~;l;~g~” ““”

(3) Abandone~b;oie&”:;:; :;:;:;::::::::: ;:;:;: Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Real Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Related Personal Property . . . . . . . . . . . . . . . . . . . . . Real Property Type Accounts . . . . . . . . . . . . . . . . . . . . . . . Financial Controls Over Real Property . . . . . . . . . . . . . . . . . Purchase of Real Property . . . . . . . . . . . . . . . . . . . . . . . . Leasing of Real Property . . . . . . . . . . . . . . . . . . . . . . . . . Distinguishing Construct on and Fabrication Activities from Research and Development . . . . . . . . . . . . . . . . . . . . . . . . . (1) Research and Development Activities (Expense Type) . . . . . . (2) Construction and Fabrication Activities (Capital Type) . . . Experimental and Demonstration Projects General Plant Projects . . . . . . . . . . . : : : : : : : : : ~ : : : : : Existing Facilities Moved Because of Construction Activities . . . Closeout of Construction Projects . . . . . . . . . . . . . . . . . . . Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . Reconcillatlon of Real Property . . . . . . . . . . . . . . . . . . . . . VI-1 VI-1 VI-1 VI-2 VI-3 VI-5 VI-10 VI-10 VI-11 VI-11 VI-11 VI-12 VI-12 VI-12 VI-12 VI-13 VI-14 VI-14 VI-14 VI-14 VI-14 VI-15 VI-15 VI-15 VI-17 VI-17 VI-18 VI-18 VI-19 VI-20 V1-20 VI-21 VI-21 vii DOE 2200.6A 1-7-93 Definition . . . . . . . . . . ~. . . . . . . . . . . . . . . . . . . . . . Capital Equipment Type Accounts . . . . . . . . . . . . . . . . . . . . . Flnanclal Control s Over Capital Equipment . . . . . . . . . . . . . . Equipment Acqui red by Purchase . . . . . . . . . . . . . . . . . . . . . Equipment Acquired by Lease . . . . . . . . . . . . . . . . . . . . . . . Equipment Acquired by Construction . . . . . . . . . . . . . . . . . . . Equipment Fabricated . . . . . . . . . . . . . . . . . . . . . . . . . . . Equipment Acquired by Transfer . . . . . . . . . . . . . . . . . . . . . PI ant and Equipment Acqui red by Foreclosure Processes Property Acquired by Other Means . . . . . . . . . . . . . : : : : : ~ : Equipment Acquired for Research . . . . . . . . . . . . . . . . . . . . . Capital Equipment Acquired Through an Interagency Agreement . . . Property Belonging to Others Special Tool ing and Test Equip~e;~ : : : : : : : : : : : : : : : : : : : Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . Reconcil 1 ation Requirements . . . . . . . . . . . . . . . . . . . . . . . 3. Personal Property and Capital Equipment . . . . . . . . . . . . . . . . . . ;: c. d. !: 9. h. ;: K m. n. o. P* 4. Government-Owned, Contractor-Held Property . . . . . . . . . . . . . . . . Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :: Integrated Contractors . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Financial Controls . . . . . . . . . . . . . . . . . . . . . . . . . (3) Reporting Requirements (4) Reconciliation Requireme;&” : : : : : ~ : : : : : : : : : ~ : ~ :

c. Of fslte Nonintegrated Contractors . . . . . . . . . . . . . . . . . . . (1) Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Financial Controls . . . . . . . . . . . . . . . . . . . . . . . . . (3) Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . (4) Reconciliation Requirements . . . . . . . . . . . . . . . . . . . 5. Conduct of Physical Inventories Introduction . . . . . . . . . : : : ~ : : : : : : : : : 1 : : : 1 : : : 1 : :: Frequency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Reporting of Inventories . . . . . . . . . . . . . . . . . . . . . . . . . 6. Property Acquired Under Grants, Cooperative Agreements, and Special Research Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;: Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . d. Reconciliation Requirements . . . . . . . . . . . . . . . . . . . . . . . 7. Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :: Depreciation Base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Depreciation Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Unit Procedure for Computing Depreciation Expense . . . . . . (2) Group Procedure for Computing Depreciation Expense . . . . . . (3) Composite Depreciation Rates . . . . . . . . . . . . . . . . . . . d. Standard Service Lives and Field Element Depreciation Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) List of Standard Service Lives . . . . . . . . . . . . . . . . . . (2) Revision to Standard Service Lives . . . . . . . . . . . . . . . . (3) Adjustment to Accumul ated Depreciation . . . . . . . . . . . . . (4) Field Element Depreciation Committees e. Recording Depreciation . . . . . . . . . . . . . : : : ~ : : ~ : : 1 : : : (1) In Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ● VI-22 VI-22 VI-22 VI-22 VI-23 VI-23 VI-26 VI-26 VI-26 VI-26 VI-26 VI-26 VI-26 VI-27 VI-28 VI-28 VI-28 VI-29 VI-29 VI-29 VI-29 VI-29 VI-30 VI-30 VI-30 VI-30 VI-31 ● VI-31 VI-31 VI-32 VI-32 VI-32 VI-32 VI-33 VI-33 VI-33 VI-33 VI-33 VI-33 VI-33 VI-34 VI-34 VI-34 VI-34 VI-35 VI-35 VI-35 VI-35 VI-36 VI-36 ● VI-36 VI-36 vii i DOE 2200.6A 1-7-93 (2) In standby . . . . . . . ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● (3) Equipment Held fOr Future projects . . . . . . . .....=.”= (4) Excess .. ... .o=o=o ”oo=o “~= =OOOOO*Ooo OOo f. Exceptions . . . . . . . . . ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● (1) Extraordinary Obsolescence . . . . . . . . . . . . . . . . . . . . (2) Casualties .e. ..oeoooe OOOOO “OCOOOOOOOOOOO (3) DepreclatiOn Of Improvements to Property of Others . . . . . . (4) CalculationofDePletion .. ..0000 OOOOOOOO ● 0 0 0 0 (5) Oil andGasproducers. = .. ...0000 ocoooo= ● “OCO= Attachment VI-l-Standard Service Lives . . . . . . . ● ● . c ● ● Attachment VI-2-Standard Property Record Unit Catalo9 . . . . VI-36 VI-37 VI-37 VI-37 VI-37 VI-37 VI-37 VI-37 VI-37 VI-39 VI-51 PTFRVII . 11~ PTERVIII . F(IW (Reserved) IX . K. w!EMFS-AMOT~ I ix DOE 2200.6A 1-7-93 (2) Advances . ........=.=”=” ● +. ””0000=000”0 ● IX-? ● c. d. e. f. 9. h. i.

(3) Budgetary Resources ......=.~*-.000” .= ”==.”= (4) Field Element Chief Financial Officer . . . . . . . . . . . . . . (5) Cognizant Secretarial Officer . . . . . . . . . . . . . . . . . . (6) Emergency . . . . . . . . . . . . . . . . . . . = . ”=”===.=” (7) Integrated Contractor . . . . . . . . . . . . . . . . . . . . . . . (8) Management and Operatin9(MhO) Contractors . . . . . . . . . . (9) Memorandum of Understanding . 0 . . . . 0 . . 0 . (10) Miscellaneous Receipts ... :::: :::: ooooo .. .==. (11) Non-Federal . . . . . . . . . . . . . . . . .....=• OOOOOO (12) Reimbursabl e Agreement ... ... ... ..0= S-. .. ==.. (13) Reimbursable Authority . . . . . . . . . . . . . . ● . . ● ● . . “ (14) Reimbursable Work . . . . . . . . . . . . . . . . . . . . . . . . . . Responsibilities . . . . . . . . . . . . . . . . . . . . . ● . ● -O= “. (1) Cognizant Secretarial Officers . . . . . . . . . . . . . . . . . ● (2) Chief Financial Officer (CR-1) . . . . . . . . . . . . . . . . . . (3) Director of Procurement, Assistance and Program Management (PR-1) . . . . . . . . . . . . . . . . . . . (4) Director of Administrate On and Management (AD-1) . . . . . . . . . . . . . . . . . . . . . . ● . ● c (5) General Counsel /Field Counsel . . . . . . . . . . . . . . . . . . (6) Heads of Field Elements ... ... ... .. .=.0. .. ..== (7) Field Element Chief Financial Of fiber . . . . . . . . . . . . . . Policy . . . . . . . . . . . . . ● . . . . . . ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Description and Nature of Reimbursable WOrk . . . . . . . . . . . . . Authority for Accepting and Criteria for Establ ~ shing Reimbursabl e Agreements . . . . . . . . . . . . . . . . . . . . . ● . . . (1) Economy Act . . . . . . . (2) Atomic EnergyeA~~ ::::::::::::::: ::::~.e===c (3) Intergovernmental Cooperation Act of 1968 . . . . . . . . . . . (4) Project Order Law . . . . . . . . . . . . . . . . . ........= (5) Department of Ener9y Organization Act . . . . . . . . . . . . . . (6) Intergovernmental personnel Act . . . . . . . . . . . . . . . . . Flnan.clng of Work . . . . . . . . . . . . . . . . . . . . . . . . . ● ● ● ● (1) Financing Work for Other Federal A9encies . . . . . . . . . . . (2) Advances from Non-Federal Customers . . . . . . .......== Reimbursable Budgetary Resources and Obligational Authority . . . (1) Reimbursabl e8ud9etarY Resources . . . . . . .......== . (2) Reimbursabl eObli9ational Authority ... ... ... ... *o Accounting for Reimbursabl eA9reements . . . . . . . . . . . . . . . . (1) Execution and Control of Reimbursabl eA9reements . . . . . . . (2) Recording ... ... .. **.=0000 •...==~~=~”=.” (3) Billing and Collecting.. ... ... ... .o. cc. o . . . . . (4) Closeout of Reimbursabl eA9reements . . . . . . . . . . . . . . . 3. Revenue Programs . . . . . . . ● . . . . . . ● ● . ● . . ● ● ● ● ● ● ● Q ● ● ● ● General . . . . . . . . . . . . . . ● ● . ● . ● ● s ● ● “ ● ● ● s ● s ● c ● ● ;: Policy . . . . . . . . ● . . ● . ● . ● ● ● ● ● “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ “ Description and Nature of Revenue Producing Uork . . . . . . . . . . . ;: Authorfty To Produce and Sell Products and Servfces . . . . . . . . . e. Order Requirements . . . . . . . . . . . . . .- co ● ● ● ● ● ● “. ● ● ● (1) Criteria for Development. Review, and Acceptanceof Orders (Except Power Marketin9Admfni stratfons) . . . . . . . (2) Power Marketing Contracts ... ... ... .. ”ooo= ● **** (3) Pricing of Products, Services, or Work (Cost Recovery) . . . .

Ix-z Ix-2 Ix-2 IX-2 IX-3 IX-3 Ix-3 IX-3 IX-3 Ix-3 Ix-4 Ix-4 IX-4 IX-4 Ix-5 Ix-6 IX-6 IX-6 Ix-6 IX-7 Ix-8 Ix-9 IX-10 ● Ix-lo IX-10 Ix-lo 1X-11 IX-11 1X-11 1X-11 IX-11 IX-12 IX-13 IX-13 IX-13 IX-15 IX-15 IX-16 IX-18 IX-18 IX-18 IX-18 IX-19 IX-19 IX-19 IX-20 IX-20 IX-20 ● IX-20 x DOE 2200.6A 1-7-93 f. Basis of Budgetary Resource . . . . . . . . . . . . . . . ● ● ● ● . ● “ ● (1) General ... ... ..o*oooooo ● ooocooooooooooo (2) Advances .......~...””””” .“””””””””””””” (3) Exceptions to AdvanCespOllcY . . . . . . . . . . . . . . . . . . ~. Authority Contaln@d in Allotments . . . . . . . . . . . . ● . c . ● c ● ( 1 ) General . . . . . . . * * ..*oooo .“OOOO” OOOOOOOOO (2) Budgetary Considerations . . . . . . . . . . . . . ● ● ● . ● ● ● ● h. Accounting for Revenues .. ... ... ..cooo= cooooooooo (1) Current Period Sale Of Products and Services . . . . . . . . . . (2) Long-Term Contracts fOrSale of Products or Services . . . . . 4. Advances from Non-Federal Customers for Cosponsored Uork . . . . . . . . Policy . . . . ● . ● . . ● . ● ● ● ● ● ● ● ● ● ● ● ● “ ● “ “ “ “ “ “ “ “ “ “ “ K Description andNatureofUork . . . . . . . .....0... ● 0000 co AuthorityTo PerformWork . . . . . . . . . . . . . .= . ● . ● ● - ● . ● d. CosponsoredWorkAgreements . . . . . . . . . . . . . . . . . . . . ● ● ● (1) Requirements......*. .....*• OOOOOOOOO ● = ” ” = ( 2 ) Pricin9eo. . . . ...oo . . . . . OCOOOOOOOC= ..”OO e. Basis ofBudgetary Resources . . . . . . ........= ...=.=. (1) DOE ● .00. ..00.0 .0000. ● * * (2) Cospoiioi ”:::::::: ::.....*******” ● ****** (3) Advances . ............*.= .=..*.• S= OOOOOO f. Authority Contained in Allotments . . . . . . . . . . . . . . . . . ● . 9. Accounting for Cosponsored Work . . . . . . . . . . . . . . . . . . . . . (1) Execution and Control of Agreements . . . . . . . . . . . . . . . (2) Accounting for Advances Received for Cosponsored liork . . . . 5. Appropriation Refunds . . . . . . . . . . . . . . . . . . . . . ● . ● ● ● ● ● ● a. Description . . . . . . . . . . . . . . . . . . . . . . ● ● ● ● ● ● ● ● ● “ ● b. Accounting for Refunds . . . . . . . . . . . . . . . . . ● ● . ● ● ● ● s “ IX-20 IX-20 IX-20 IX-21 IX-21 IX-21 IX-22 IX-22 IX-22 Ix-22 IX-23 IX-23 IX-23 IX-23 IX-24 IX-24 IX-24 IX-24 IX-24 IX-24 IX-25 IX-25 IX-25 IX-25 IX-25 IX-26 IX-26 IX-26 6. ‘“Integrated Con~ractor Collections . . . . . . . . . . . . . . . . . . . ● ● ● Appropriation Reimbursements . . . . . . . . . . . . . . . . . . ● ● ● ● L ReductionsofCost . . . . . . . . . . . . . . . ● . . . ● ● ● ● ● ● ● ● ● ● (1) BudgetedCollections. . .. ... ... .o. ==000 ..0000 (2) OtherCollection s.... . . . . . . . . . . . . . . . . ● .0=00 c. General Fund Miscellaneous ReceiPts . . . . . . . . . . . . . . . . . . 7. Donatfons,Gffts. and Bequests . . . . . . . . . . . . . . . . . . . . . ● ● . a. Description . . . . . . . . . . . . . . . . . . . . . . . . ● . . ● ● ● ● ● . b. Authority . . . . . . . . . . . . . . . . . . . . ● . . ● ● . ● . ● ● ● ● ● ● c. Accounting Considerations . . . . . . . . . . . . . . . . . . . ● ● ● ● ● (1) Execution and Control ofWork . . . . . . . . . . . . . . . . . . . (2) Accountfn9 Treatment . . . .. ... .~=o *.00000 •~*0. 8. Deposit Funds . . . . . . . . . . . . . . ● cc . ● ● ● .S ● ● w ● ● ● co co ● a. Disposition . . . . . . . . . . . . . . . . . ● . ● ● . . ● . . . “ . “ ● ● “ b. Revfew . . . . . . . . . . . . . . . . ● ● . ● ● ● ● ● ● ● “ “ ● “ ● “ ● ● ● “

9. Miscellaneous Receipts .. ... ... ....o.o ● .o.OOOOO” ”00 a. Policy ● . ● ● . ● . . ● ● ● ● ● ● ● . ● ● ● ● ● ● “ S ● ● “ “ “ “ “ “ “ “ “ “ b. Exceptions . . . . . . . . ● . ● ● ● ● ● . ● ● “ ● ● “ “ ● “ “ “ ● ● ● ● “ “ (1) General .. ... ..0000 o”ooo ● 000 ”OO”OOOO” 000 K2) Proceeds of Personal Property Sales . . . . . . . . . . . . . . . c. Type of Collections . . . . . . . ● . . . . ● ● ● . s c . ● ● c ● ● ● ● ● “ d. Accounting Considerations . . . . . . . . . . . . . . . ● . ● ● . ● w “ ● 10• Reimbursable Personnel Details . . . . . . . ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● IX-26 IX-26 IX-26 IX-27 IX-27 IX-27 IX-28 IX-28 IX-28 IX-28 IX-28 IX-28 IX-29 IX-29 IX-29 IX-29 IX-29 IX-29 IX-29 IX-29 IX-30 IX-30 IX-31 xi DOE 2200.6A 1-7-93 11. Other Collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Attachment IX-1-Guidelines for Development. Review, and Acceptance of Agreements for Reimbursable Hork or Services byDOEOfficials . . . . . . . . . . . . . . . . . . . . . . . . . . . Attachment IX-Z-Department of the Treasury Accounts to Which Collections Are Deposited: Reimbursable Work . . . . . AttachmentIX-3-Department of the Treasury Accounts to Which Collections Are Deposited: Revenues . . . . . . . . . . . Attachment IX-4-Department of the Treasury Accounts to Wh~ch Collections Are Deposited: Cosponsored Work . . . . . . Attachment IX-5-Department of the Treasury Accounts to Which Collections Are Deposited: Donations, Gifts. and Bequests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Attachment IX-6-Department of the Treasury Accounts to Which Collections Are Deposited: Deposit Accounts . . . . . . Attachment IX-7-Department of the Treasury Accounts to Which Collections Are Deposited: Miscellaneous Funds to DepartmentoftheTreasury . . . . . . . . . . . . . . . . . . . . IX-31 ● IX-33 Ix-35 Ix-37 IX-41 Ix-43 Ix-45 Ix-49 xii DOE 2200.6A 1-7-93 CHAPTFR L purpose. To prescribe the policies and general procedures for handling cash and for transactions in which cashis involved. Background. Cash is actual money and instruments and claims generally used and accepted as money. The use of contractor-issued credit cards to purchase travel and related expenses is coveredin DOE 1500.4A, TRAVEL CHARGE CARD PROGRAM, of4-22-91. Public moneyis all specie, currency, or instruments having monetary value received on behalfof the United States from sales, refunds, discounts, fees. pledged deposits, collections, or other transactions. ~ilitv. The applicabilityof this chapter is specified in DOE 2200.4, ACCOUNTING OVERVIEW, Chapter I. “Introduction.’’p aragraph 1. ~. (1) Accounting forcash from its receipt tofinal disposition must include the safeguards necessary to ensure proper control as outlined in DOE 1000.3B, INTERNAL CONTROL SYSTEMS, of 7-5-88. Personnel handling cash or involved in making accounting transactions affecting cash are responsible for receiving, safeguarding. recording, depositing, and disbursing cashon a timely basis and for keeping the required records and accounts. (See18 U.S.C. 643, 652, 653.648, 1901, 2073: 31 U.S.C. 490, 521, 525.) (2) Employees handling public money must account for its receipt anddisposi- tionand are personally liable for such funds. Failure to account for public money is a violation of the Federal Criminal Code. (3) No employee shall convert to personal use, loan (with orwithout inter- est), depositin any bank, or exchange for other funds any public money, except as specifically allowed bylaw.

(4) No employee shall use public funds for the purpose of cashing checks ofany kind, whether public or private. (5) No employee shall use the funds or propertyof the United States tocarry on any trade or business nonspecifically authorized bylaw. (6) No employee shall withhold publ icfunds or any portion thereof without specific legislative authorization. 1-1 DOE 2200.6A 1-7-93 Paragraphed ● (7) Field Element Chief Financial Officers (Field CFO’s) shall followthe principles of cash management contained herein and described in detail in volume I, part6, chapter 8000, of the Treasury Financial Manual (ITFM 6-8000) . (8) Collections and’all other funds held within the finance organization, including negotiable instruments, traveler’s checks, airline tickets, and other cash instruments, whether pending regular deposit orin Imprest funds, shall be handled as cash, kept under complete control and under proper physical safeguards. At aminimum, they shall bekeptinaflre- resistant combination safeor safe-cabinet. (9) Field CFO’s shall continuously review the operations under their supervi- sion. Deficiencies shall be corrected promptly and, where required, reported to higher levels of management. e. ~. Effective cash management includes the timely collectionof receipts, prompt deposit of collections, useof appropriate disbursement methods. and the elimination of idle cash balances. The purpose of cash management isto make the most effective use of the Govern- ment’s cash resources atall times. Each Field CFO shall maintain written internal procedures for cash management and shall monitor theoffice’s cash management practices. Themonitoring shall include an annual cash management review, using the TFM supplement “Cash Management Review Guide.” If there have been significant changes to the cash flows original lydocumented for afiscal ● year, anew Cash Flow Report shall recompleted, in accordance with ITFM 6-8000. In all other instanceso the certification document appearingas Attachment I-l shall be prepared annually and sent to the Chief Financial Officer (CFO; CR-l) for review. a. Collection Me~. The most cost-effectivecol lection mechanism orcom- bination ofmechanisms shall be selected for each type of receipt that results in the earliest deposit ofcash into the Department of the Treasury. The following are specific collection and deposit mechanisms and general descrlp- tionsof when their use is appropriate: (1) ~. Electronic funds transfers (EFT’s) are methods of transferring funds by electronically exchanging information. (2) ~. Alockbox is a collection system that promptly converts checks into funds availableto the Department of the Treasury. The Federal Automated Lockbox Network consists of financial institutions selectedby the Departmentof the Treasury based on nationwide bids and located throughout the United States to provide for optional mail deliveryto accept deposits. Generally, lockboxes are used for low-dollar, high- volume receipts–for example, fees and loan repayments. I-2 1-7-93 DOE 2200.6A Paragraph 2b(2)(b) (3) Institutions. osits with Financial are cash and checks received directly by DOE that are deposited, either bymail or over the counter, with financial institutions (banks, savings and loans, or credit unions) that have been designated by Department of the Treasury as approved depositories. Deposits received by those institutions are credited tothe Department of the Treasury’s account in the Federal Reserve System for immediate creditif they are received during normal business hours.

(4) ~redit Carti. As aresult of a Government-wide initiative jointly spon- sored by the Office of Management and Budget and the Department of the Treasury’s Financial Management Service (FMS), Federal agencies may accept credit cards (VISA and Mastercard) for collection of debt. FMShas entered intoa contract with several banks to provide credit card ser- vices. Additionally, FMSwill pay for all basic costs ofimplementin9 a standard credit card services package. Site support costs and costs for any incremental services will be the responsibil ity of each DOE user. Site support costs, however, are minimal. Field offices interested in this collection mechanism must usean FMS-approved bank and should contact the Office of Financial Policy (CR-20) at Headquarters for additional information. b. Electronic Fu ds Transfer CollectionSn . (1) The Department of the TreasurY uses thefo” (FRB) EFTnetworks forcollectin9 funds. (a) ~fundstransfers are effected lowing Federal Reserve bank through an FRBtelecommunica- tions network that provides immediate (same-day) credit to the receiving party. (b) ~Clearingh.u&e (ACH) funds transfers are effected through this FRBnetwork via variOus electronic information exchanges, such as magnetic tapes or disks, computer printouts, or data transmis- sions. It generally takes20r 3daysto receive afunds transfer through ACH. (2) General procedures foruse OfEFT areas follows: (a) (b) EFT(ACHor FEDWIRE) shall be used whenever itis advantageous to the Government. Written approval to use EFTmust reobtained from the Department of the Treasury in advance for each class or typeof deposit before advising depositors onuseof EFT. Approval is also required whenever the average deposit volume ofan approved deposit activity is expected to increase substantially. These requeststo authorize EFTuse shall resubmitted tothe CFO, in accordance with ITFM 5-4500, for transmittal to the Departmentof the Treasury. Upon receiptof Department of the Treasury approval and specific instructions for EFT system use, depositors shall be notifiedby the cognizant finance office regarding procedures for EFT deposits. I-3 DOE 2200.6A Paragraph2c 1-7-93 ● (1) ~. Lockboxes should only be used when cost-effective, asthere isa charge for their use. Features of alockbox collection system include the foll~wing: (a) Remittances are sent directly toa the lockbox financial institution DOE. (b) The lockbox financial institution times throughout theday and night remittance data. (c) The lockbox financial institution post office box reserved for DOEby ~nstead ofbeing sent directlyto picks up and opens themail several and processes the funds and deDositsthe fundsto the Det)art- mentofthe Treasury’s General Account at the FRBbywiring the”funds tothe FRB either on the business dayof or the business day following receipt of the funds. (d) Remittance data are usually received by DOE onthe same day orthe next business day after receiptof remittance by the lockbox financial institution. (z) ~. (3) (a) (b) (c) ~eLo-. Awholesale lockbox service is designed to processa relatively small number of transactions representing large dollar amounts and involves themanual processing of traditional invoice documents. ~tail Lo-. Aretail lockbox service is designed to process a large number of transactions and low dollar amounts and uses machine- readable documents for automated processing through optical charac- ter recognition (OCR). Specific remittance data are captured and stored on magnetic tapes or disks and transmitted to DOE for posting accounting entries.

~lecuoniclocw. An electronic lockbox service can process both paper remittances and electronic transactions. Remitters can make payments through the ACH network, by wire transfers, or by direct check mailing. There are no specific criteri a concerning volume and dollar amount of transactions for an electronic lockbox. ~tatiou. Detailed specifications and terms of financial insti- tution compensation shall be based on Department of the Treasury guide- lines and incorporated into amemorandum of understanding that the Field CFO, the representative of the Department of the Treasury, andtherepre- tentative of the selected institutional must sign. The memorandum will be executed in accordance with DOE 1280.lA, MEMORANDI.JMS OF uNDERSTANDING, ● ofll-15-91. Prior to implementation, all details of the lockbox service I-4 1-7-93 9’ DOE 2200.6A Paragraphed shall be tested and proven. The Departmentof the Treasury and the Field CFO shall review the lockbox service after implementation to ensure that It is operatingas anticipated and within acceptable costs. d. ~. Specific regulations and criteria have been established by the Department of the Treasury (I TFM6-8000) govern- ingdeposits by Government agencies; they shall be followed. Direct collec- tlons consistof cash (currency and coins) and checks received directly by DOE for deposit into the Departmentof the Treasury. Each Field CFO shall establish procedures consistent with effective internal controls to manage and expedite the deposit of all receipts. Procedures shall incorporate the following requirements: (1) Cash and check collecti~ns shall decentralized. personnel collecting cash and checks should not reinvolved in any way with certifying vouchers, functioningas cashiers, preparing deposits, or keeping accounts, nor shall they have access to the accounting records. Special controls mustbe developed and in place ifthesize ofan organization’s staff prohibits separation of duties. (2) Independent accounting control sovercash and check collections shall be established. At a minimum, records that adequately describe the nature and amount of each cash or check receipt shall be maintained. (3) All cash items shall be listed in duplicate immedi atelyupon receipt as the envelopes are opened. Acopyof the listing shall be delivered tothe person responsible for reconciling of collections and deposits. (4) Over-the-counter cash coil ections shall be acknowledged byprenumbered receipts. A sufficient number of copies of the receipts shall be prepared to meet local needs. (5) Checks, money orders, and other cash instruments received shouldbe payable tothe U.S. Department of Energy, or so endorsed. Remittances received shall be inspected to ensure that they are properly completed and are, in fact, payments to DOE. Checks received that arepayabl etothe Department of the Treasury or bearing similar inscription shall bedepos- ited immediately. If it is subsequently determined that a deposited check was not for payment ofa DOE account, a Department of the Treasury checkin the amount of the deposited check shall be schedul ed for payment tothe remitter, and the remitter shall be notified of the action taken. (6) Negotiable instruments, such as checks, must be endorsed as prescribedin paragraph 2e(3) on receipt. (7) An erroneously prepared check that has been rejectedby DOEorthe finan- cial institution shall be returned to the payer with a letter requesting that the check be reissued correctly. Followup shall bemade to ensure that paymentis recefved.

I-5 DOE 2200.6A 1-7-93 Paragraphed (8) (9) (lo) Aremittance received that is for an amount less than the amount owed shall be deposited. Aletter or new billing shal 1 be sent to the remitter requesting paymentof the unpafd balance of the bill oran appropriate explanation of thedffference. A remittance received that isforan amount greater than the actual amount owed shall bedeposlted. The remitter shall receive credit for the over- payment on the next invoice, ora refund shall be paid. The remftter shall be promptly notifledof the action taken. Thetime valueof cash gained by prompt billfng to, and prompt payment by, non-Government entiti es is lost when the recefpts are not deposited promptly. Set forth below are DOE processing procedures that shall be followed in conjunction with Department of the Treasury and General Accounting Office (GAO) Policy and Procedures Manual for Guidanceof Federal Agencies. Modifications in these procedures maybe necessary at some finance offices due to such factors as size of staff, organization, physical arrangements, physical proximity to financial institutions, and routing of documents. Each organization should periodically review its collection options to ensure that the most cost-effective procedures are used. The frequency of deposits shall bedetermfnedby the cumulative daily dollar volume of cash received by the depositing office. The basic deposit requirements areas follows: (a) (b) (c) Receipts totalfng $1,000 or more shall be deposfteddafly withan authorized depository, except for checks and money orders received as bfddeposfts, whfch shall beheld and returned uncashed to the unsuccessful bfdders. Receipts of less than $1,000 maybe accumulated and deposited when the total reaches $1,000 or by Friday of each week, regardless of the amount collected. Department of the Treasury checks shall redepos- ited, either over the counter or bymail in the FRB or branch wftha properly completed Standard Form 215 (SF-215), “Deposit Ticket. ” Although same-day mafling or deposit fs preferred, weekly maflingis acceptable. Over-the-counter deposits withan FRBor a Federal Reserve branch, excludfng Department of the Treasury checks, shall be made as soon as practfcal, but not later than noonon the next business day after receiptor accumulation of $1,000 or more. Only offices with immedi- ateaccess toan FRBora Federal Reserve branch shall useitsfacili- ties. Ffnance offfces thatdo not have access toan FRBora Federal Reserve branch shall make arrangements to use alocal financial institution that is authorized by the Department of the Treasuryto accept deposits to Departmentof the Treasury accounts. These arrangements must be approved by the Department of the Treasury and coordinated through theCFO. If the Department of the Treasury determines that ftis notin the best interest of the Governmentto usea local financial institution, the deposits shall be mailedto I-6 1-7-93 (d) (e) (f) DOE 2200.6A Paragraph 2e(2) the appropriate FRB or Federal Reserve branch. The mailing ofdepos- its to a financial Institution must be specifically authorized by the Department of the Treasury through the CFO. For over-the-counter deposits with financial institutions, the depositing organization shall establish a cutoff time forthe prepa- ration of deposits and schedule processing of receipts to maximize funds deposited each day. DeDosits should delimited to one each da~ and timed to meet the cutoff timeto reincluded in the transactions posted for the day of the deposit.

A deposit receipt shall be retained e. ~. (1) Ml!2JW1. shall be obtained promptly from the depository and as an accounting record. (a) Cash collections shall be deposited to the proper agency location code (ALC) and shown onthe SF-215. Collections that cannot beallo- cated to any specific appropriation, fund, or receipt account at the time of receipt shall be recorded by DOE field elements in Suspense 89X6875 and by integrated contractors in the account Cash with Integrated Contractors until the correct account is determined. (b) Persons who prepare deposits shall be other than those who receive cash. They shall not record entries to accounts receivable, certify vouchers, or have access to any cashier funds or other cash records unless the conditions of paragraph 2d(l) aremet. (z) ~b Each remittance shall be examined to deter- mine whether itis acceptable. If currently datedor undated and otherwise negotiable. it shouldbe accepted: if postdated. it shall notbe accepted unless there is a preexisting agreement todoso. If postdated checks are accepted. the payments they represent shall not be posted until the dateon the check orthe date the check is clearedby a financial institution, whichever is earlier. Sound judgement mustbe usedin returning postdated checks to the sender to ensure that returning the check will not resultin receiving payment later than the date shown on the check in hand. The amount expressed in writing and the amount expressed in figures shouldbe in agreement. Ifthey are not in agreement, then the written amount deter- mlnes the monetary valueof the check. Examination shall also be madeto determine whether the remittance improperly signed and, when required, countersigned. These procedures apply to checks payable in U.S. dollars through U.S. banks. Checks payablein foreign currency preprocessed as described in paragraph 2e(6). I-7 DOE 2200.6A 1-7-93 Paragraph 2e(3) @ (3) Preparinu Ws fo r iX?DOSi t . SF-215, “Deposit Ticket, ” should be used for depositing remittances. Instructions for completing the SF-215 arein ITFM 5-2000. All Federal program agencies depositing checks with Federal Reserve banksor commercial depositories must use the payee endorsement area located 1.5 inches beginning at the trailing edge of the check. Refer to TFMBulletin 88-10. All checks deposited shall include the following: (a) The name and the address of the depositing organization. (b) The depositing office agency location code. (c) The statement ’’Pay to the order of any Federal Reserve Bank or Branch or General Depository for credit to the United States Treasury.” (d) The date of the endorsement. (4) .posits with a Federal Reserve Bank or Branti Separate cash from checks and preparea separate SF-215, “DepositTicket;” for each. Checks depos- ited withan FRBneednot be sorted but must be accompaniedby an adding machine tape or other listing showing the amount of each item and the total amountof the deposit. (5) J?eposits with Com~rcial Financial Instltutlon~. . . . Financial institu- tions’ sorting requirements are nonstandardized; therefore, the require- ments of the individual depositories shall be observed. Any checks drawn ● on the Department of the Treasury shall not redeposited in a general depository. (6) FJ?fs Pavabl e in Foreim Currency . (a) Each DOE Field CFOmay make arrangements with the regular depository for the deposit of checks drawnin a foreign currency. The Mellon Bank has been designated the depository for checks payable in foreign cur- rency ifa local de~ository is not used. Themailinu address at the Mellon Bank for checks drawn ina foreign currencyi~:

Mellon Bank U.S. Treasury Foreign P.O. Box371782M Pittsburgh, PA 15251 Collection Operations The Mellon Bank hasestabl ishedminimum values for checks thatit will accept for deposit. Those minimums, expressed inU.S. dollar equivalents, are $4.00 for checks drawn on Canadian banks and $10.00 for checks drawn on other foreign banks. However, DOE organizations I-8 1-7-93 DOE 2200.6A Paragraph 2e(6)(d) may set minimum check limitations higher in consideration of the following charges that may be incurredby the depositor: Checks less than the above minimums . . . . . $2.00 per item Returned Items . . . . . . . . . . . . . . . . . $20.00 per item Tracers . . . . . . . . . . . . . . . . . . . . . . $5.00 per item Minimum check deposit return fee . . . . . . . $2.00 per item Exchangefees . . . . . . . . . . . . . . . . . . . . . .Unknown Subsequent collecting bank charge . . . . . . . . . . Unknown (b) It is the responsibility of the depositin90r9anizati onto transmit foreign checks, accompanied byan original SF-215, “DepositTicket,” to the Mellon Bankin accordance with the following procedure: 1 J*S. -Dollar Foreiu nChec_ks Asingle SF-215 shall accompany all U.S. -dollar foreign checks;ot payable through banks in the United States that are forwarded to the depository ona single day. Com- pletethe SF-215 as prescribed in ITFM 5-3020. including the insertion of theU.S. dollar amount. Upon receipt at Mellon Bank, the SF-215 will be dated, and the confirmed copy will be returned immediatelyto the depositing organization. 2 -Foreian Currencv Foreian checks . Aseparate SF-215 must accompany each foreign currency foreign check forwarded to the depository. Complete the SF-215as prescribedin ITFM 5-3000, but leave the amount blank. Upon collection of the item, the Mellon Bank will enter the U.S. dollar valueon the corresponding SF-215 and return the dated. confirmed copyto the depositing organization. (c) In accordance with ITFM 5-2030. aphotostatic copy ofeach check must be maintained, to permit duplication if the check is lost, destroyed, or mutilated. (d) Checks returned dueto ”insuffi cientfunds’’ will be processeda second timeby the Mellon Bank before being returned to the deposi- tor. “Othern onpayment” checks (checks returned unpaid for reasons other than insufficient funds) are charged against the Department of the Treasury’s General Account after the first presentation. Mellon Bank mails a tracer each month to the collection bank ifthecollec- tionprocess is not complete within 30days. Any check that proves uncollectible after 120days is charged back tothedeposi torby Mellon Bank. The total amount of returned uncoil ectible checks. returned item fees, exchange fees, tracers, and any other charges incident to the collection of the foreign checks, assessed after the dollar credit has been posted in the Department of the Treasury’s accounts, is charged back to the depositor through Mellon Bank’s execution of SF-5515. “Debit Voucher.” Copies of the SF-5515 are forwarded tothe depositor as prescribed in ITFM 5-5000. The fees are chargedto the fundor appropriation generating the revenue. I-9 DOE 2200.6A Paragraph 2e(7) 1-7-93 (7) L!ncol Iectible Ite s-Oebit VOUche.r . Upon receipt of an unpaid check or copies of the SF-5! 15, “DebitVoucher,” from the depository, depositors shall adjust their accounts and proceed at once to collect the amount as though no check had been received.

f. Payroll Deductions. Deposits of savings bonds, taxes, and other payroll deduc- tions are made in special deposit accounts. For additional informationon payroll deductions. see DOE2200.9B. MISCELLANEOUS ACCOUNTING, Chapter I, “Payroll Accounting.” 9. portinu amcwcilina Collections and-tkposits . (1) ~posits. Large transactions affecting Department of the Treasury balances must be reported promptly. Deposits total ing$10 millionor more in one transaction, other than Department of the Treasury checks, OPAC payments, or 1081 payments, shall be reported tothe RFConthe dayof deposit. The name of the agency, the amount deposited, andthe name and location of the depository will be reported. It is not necessaryto report EFTwire deposit of$10 million to$50 million, because this informationis availableto the Department of the Treasury. However, Field CFO’s who have advance knowledge of extraordinary deposits through EFTin excess of $50 million should advise the Departmentof the Treasury ofsuch deposits. The large deposit report shall besent bywire (commercial facilities, TWX 7108229201, 02, 03, or04) to: Funds Control Branch ● Accounting Group Financial Management Service Department of the Treasury Treasury Annex No. 1, GAO Building, Room 2817 Washington, DC20226 (a) For instructions on content, preparation, and submission of SF-224, “Statemento fTransactions ,“ see ITFM 2-3300 and DOE2200.8B, ACCOUNTING SYSTEMS, ORGANIZATIONS, AND REPORTING, Chapter III, “External Reporting.” (b) Deposit tickets shall be reconciled to records maintained bythe person receiving.cash and checks. This reconciliation shall bemade frequently, anda daily proof of cash shall be prepared where large volumes ofcasharehandl ed daily. (3) onc il i ation of Receir)t Acc~ ● (a) The Department of the Treasury consolidates all accounting data received into the Government On-Line Accounting Link System (GOALS) and each month furnishes DOEwith TFS Form 6652. “Statementof Differences.” ● I - l o DOE 2200.6A Paragraph 3b(l)(b) (b) Each organization that PrePares an SF-224, ’’Statement of Transac- tions,” shall compare records of deposits that weremailedorpre- sented tothe bank and reported onthe SF-224 with records of deposits that were reported back to DOE Field CFO’s by the banking system. Any discrepancies between the SF-224 and deposits reported through the banking system shall be adjusted by the DOE Field CFOor the Depart- mentof the Treasury, as appropriate. Correction of Department of the Treasury errors shall be coordinated with the originating Department of the Treasury office. (c) Deposit differences that have aged 6months are subjectto an adjust- mentto the Budget Clearing (Deposits) account by the Departmentof the Treasury (I_TFM 2-1500). Adjustmentsto (Deposits) account are discussedin further and 2-3300. the Budget Clearing detai 1 in I TFM 2-3100 a. ~tro~. The principal objectives of controls over disbursements areto ensure that all disbursements are legal, proper. correct. and timely and that all disbursements are recorded accurately and reported promptly. Specific detail son accounting entries for disbursements are contained in DOE 2200.10A, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES .

b. dsof Makina Disbu SWr . All disbursements, except those authorized to be madein cash. shall bemade by checks drawn on the Department of the Trea- sury orby Department of the Treasury Funds Transfer Systems. Title7. chapter 7, of the GAO Policy and Procedures Manual for Guidance of Federal Agencies (7 GA07) contains guidance relating to disbursements. As provided intitle 31. section 3321, of the United States Code, DOE funds other than payments made through the imprest fund are disbursed by the Department of the Treasury. Disbursements through letters of credit are covered in paragraph 7. (1) tofthe Trei&urv Di~eral ServlcesAlminls- . . (a) The Department of the TreasurY has the responsibility for all dis- bursement forms, except that the General Services Administration (GSA) has responsibility for forms dealing with transportation and travel expenses. Department of the Treasury disbursement forms are describedin ITFM 4-2000. (Refer to 41 CFRpart 101-141 for policies and procedures covering payment for domestic and foreign transportation services.) (b) All disbursements. whether in cash, by EFT. or by checks drawn on the the Department of the Treasury, for authorized and lawful payments shall be processedon voucher schedules prescribed by the Department of the Treasury orGSAas appropriate. 1-11 DOE 2200.6A Paragraph 3b(2) (2) tofthe Treasurv Pavrnf!.nts on Standard Form l1660CR. *6 ouCJlfX Schedule of Pavments #,. (a) ~. DOE shall use SF-l1660CR, “Voucher and Scheduleof Pay- 1-7-93 ments,” and SF-l1670CR, “Continuation Sheet,”to schedule payments through the Department of the Treasury Regional Financial Centers (RFC’S). Each basic voucher (invoice) shall be 1 isted on an SF-1166 OCRwlth all Information required for check issuance purposes. Invofces supporting each completed SF-1166 OCR shall be retainedin accordance with DOE 1324.2A, RECORDS DISPOSITION, of 9-13-88. (b) ~.Accountability records must bemain- tainedfor the purpose of control ling the stock of SF-l1660CR’s on hand and for fixing accountabil ityand responsibility for their issuance and use. To facilitate such control, each SF-11660CR and SF-11670CR is imprinted in sequence withan alphanumeric code atthe time of printing. SF-11660CR’s donot have to be submittedto Department of the Treasury RFC’S in strict alphanumeric sequence. However, each certifying officer shall be assigneda range ofpre- numbered SF-1166 OCR’s, and the range should retransmitted to the Department of the Treasury RFCon SF-210. “Signature/Designation Card for Certifying Officer.” (c) preparati~. The SF-11660CR is prepared in aboriginal and one copy. Where applicable, payment information that designates amalling address must include the ZIP Code. The original SF-l1660CRis sent to the Department of the Treasury RFC for payment processing, andone copy is retained by the originator. Submit SF-l1660CR’s to allow payments to be issuedas close to the payment due date as possible. The time required for mail to reach the RFCmustbe considered in the due date scheduling process to ensure payment by the due date. The payment date is the date of the check. The Department of the Treasury prepares check payments from SF-l1660CR’s by an optical character reading process or from computer magneti ctapes. On an exception basis, checks for individual payments of $lmillion ormore, foreign currency payments, and cashier advances are prepared manually by the Department of the Treasury.

1 _ter Maanetic T~. Computer magnetic tape is the preferred medium for submission of payment data tothe RFC. Each tape should contain a minimumof 100 separate payments. If the Field CFOis unable to meet this minimum, it is at the discretion of the Depart- mentof the Treasury RFCto accepta tape with fewer than 100 records. Each Field CFOshouldsubmi tonlyone magnetic tape per day for a particular class of payments, as noted in paragraph 3b(2)(c)~; separate SF-1166-EDP’s must be prepared forcertifl- cation of transportation and foreach ALCon a tape. Computer- generated SF-l166-EDP’s are the supporting documentation for check-issue media submitted on magnetic tape. The provisions of ITFM4-2000 generally apply to the SF-l166-EDP. However, the 1-12 1-7-93 DOE 2200.6A Paragraph 3(b)(2)(c)4hlu 2 3 . 4 SF-1166-EDP is limited to such data as tape reel number, check volume, amount. and certification. Individual payment data for check inscription are not requiredon the SF-l166-EDP. flCRForma~. Field CFO’s unableto produce computer magnetic tape and SF-1166-EDP’s must certify payments on an SF-1166 in anOCR format so that payments can reprocessed automatically onOCR equipment. foreian Currency Vouchers. Foreign currency vouchers require that an additional copy of the SF-l1660CR be prepared and sub- mitted to the RFC. The Department of the Treasury must give prior approval before the Field CFOcanmake useof the foreign disburs- ing facilities. For specific details for foreign currency payments, refer to ITFM 4-2000. Rgtailed Instructions. Guidelines for entering informationon the SF-l1660CR are foundin ITFM 4-2000. Typing requirements and guidelines for SF-l166 OCR’sto be processedby OCR equipment are contained in the OCR Voucher Preparation Manual, available from Department of the Treasury RFC’s. a JWmberina Invoices and Othe Supporting Vouc er~h Each invoice or voucher must be cross-referenced toth~ SF-11660CR bya DOE contract number, a purchase order number. or some other identification. to enable positive association between the invoice andthe SF-1166 OCR. Depending on the system used for numbering basic vouchers, invoices, or bills. the first column of the SF-1166 OCRmayormay notbe used. This column must be used on SF-11660CR’S covering transportation services. b arate Sch~ulina Of TranSDOrtiltiOt’I Vou- . Field CFO’s are required to schedule transportation charges, including certificates of settlement for transportation vouchers, sepa- rate from other payments on SF-l1660CR’s. The office autho- rizing the payment may prefix the SF-1166 OCR serial number with the letter ’’T’’ for transportation payments. Vouchers should desegregated into the following general classifications for processingon separate SF-1166 OCR’S. i ~ include the following: da Vouchers for freight and passenger transportation charges payablein U.S. dollars: ~ Vouchers for freight and passenger transportation charges payablein foreign currency; and cc “No-check’’v ouchers, requiring no action bythe RFC. 1-13 DOE 2200.6A 1-7-93 Paragraph 3b(2)(c)Ahfi H ~ include the following: ● u Payroll vouchers; M Travel vouchers; K Vouchers payable in foreign currency; M “No-check” vouchers, requiring no action by the RFC: M EFT payment vouchers; ff Vendor payment vouchers: and gg All others. c bininu Invoices into a Consol idat.ed PavW . To minimize the number of schedules prepared and checks issued bydisburs- ing officers, payments for multiple invoi cesor bills for supplies furnished or services rendered may beconsolldated intoa single paymento provided that:

i Payment is to a single office or pl ace of business of the vendor; ji Payment is for a single Government establishment; jJj The consolidated payment is agreeable to the vendor; U No loss of discount will result; or Y Payment ismade when due, in accordance with the Prompt Payment Act. 5 artment ofthe TreasurYTurnar~ . Department of the Treasury RFC’s will make every effortto adhere toa 24-hour (in today, out tomorrow) processing schedule for payments submitted on computer magnetic tapes or in an OCRformat that do not include manual enclosures. Payments that require manual enclosures may take upto72 hours for processing and mailing. (d) cellatlon of Pay- . Described below is DOE policy for pro- cessing canceled checks certified for disbursement by the Depart- ment, processing checks that are not avail able forcancellati on, and processing claimsby payeesresulting from nonreceipt, loss, theft, destruction, mutilation, or forgery of Department of the Treasury checks. 1-14 1-7-93 DOE 2200.6A Paragraph 3b(2)(d)~ A Checks drawn for cashor for advances to cashiers that are subsequently found not required shall not be processed for cancellation. The checks shall be endorsed anddeposlted as cash collections for credit to the appropriate account(s). b When a Field CFO comes into possession of a check on which an SF-1184, “UnavailableC heck Cancel lation, ’’has previously been submittedto the Departmentof the Treasuryo the check shall be annotated ’’NOT NEGOTIABLE, PREVIOUSLY TREATEDAS CANCELED, SF-1184 DATED —.” The Field CFO shall then forward the check to the Department of the TreasuryOs Division ofCheck Claims, in accordance with ITFM 7000. Checks on whichan SF-1184 has been issued shall not be releasedto the payee, canceled, or otherwise redeposited. An available check is acheckthatis in the possession ofDOE or the Department of the Treasury RFCand for which cancella- tion will bemadeby useof SF-1098, “Schedule ofCanceled or Undelivered Checks.” The Department of the Treasury will createa computer- generated SF-1098 for checks in its possession and forward the list to DOE, together with a support listing for cancellations of miscellaneous and salary payments that DOE has certified. DOE will be provided payment identification information on the support listing from information obtained from the faces of paper checks. DOE will also be provided with a facsimileof each canceled check by the Department of the Treasury. For control purposes, SF-1098 schedule numbers must increase byone for each schedule generated for aparticul arDOEloca- tion. For internal control, Field CFO’s shall maintain alog for these numbers. Transmittals of erroneously issued checks must include the name and address of the returning DOE field element; itsALC; the amount. the payee, and the date of the check: and the number of the SF-l1660CR used to generate the original disbursement. The Departmentof the Treasury will then furnish DOE witha computer-generated SF-1098 canceling these checks. ~ Upon receipt of notification of cancellation from the Depart- mentof the Treasury, the Field CFO shall credit theappropria- tionor fund originally charged for the disbursement and, if 1-15 1-7-93DOE 2200.6A Paragraph 3b(2)(d)fi necessary, certifya new disbursement. Payables shall be establishedas necessary. g Undeliverable checks shall be returned to the Department of the Treasury RFC. 3 ~.

d Acheckthat is not in the possession of aField CFO orthe Department of the Treasury RFC is considered unavailable for cancellation. ~ Field CFO*S shall prepare SF-1184, “Unavailable Check Cancel - lation,” to cancel unavailable Department of the Treasury checks, including instances where: i ji U Ii The payee initiatesa claim for the proceeds ofa check that has not been received or that has been lost, stolen, mutilated, or destroyed; AField CFO determines that the payee is not entitled tothe proceeds ofa check not in the possessionof either DOEor theRFC; The payee claims the checkwas stolen; or ● AField CFO requires aphotocopy of the check for administrative purposes. L The SF-1184must betyped and signed by unauthorized certify- ing officer. After detaching the DOE copy, the Field CFO shall forward the remaining copies of the SF-l184to the Department of the Treasury RFC. The Departmentof the Treasury will credit 89F3880, Unavail able Check Cancel lations and Overpayments–Suspense, when the checkis canceled. Whenan accomplished copy of the SF-1184 is returned from the Depart- mentof the Treasury, the actions indicated will be taken to clear the entry. ~ Detailed instructions for the preparation and use of the SF-1184are foundin TFMBulletin 83-28 andare includedin ITFM 4-7000. These instructions also contain procedures for the issuanceof checks replacing lost, stolen, destroyed, mutilated, or forged checks. (3) ~.The Departmentof the Treasury uses the Federal Reserve System’s ACHand FEDWIRE funds transfer networkto effect EFT payments. Adescription ofeach system and instructionson its use follow. ● 1-16 1-7-93 DOE 2200.6A Paragraph 3b(3)(a)~ (a) ~. FEDWIREis an FRB telecommunications network that provides foran Immediate transfer of funds. The system that pre- ceded FEDWIRE was the Standard Payment Subsystem of the Treasury Financial Communications System (TFCS), which was a computer-to- computer link between the Department of the Treasury and the Federal Reserve Communications System. FEDWIRE is only for payments over $5,000. The receiving party’s account is always credited the same day the funds transfer is processed by the Department of the Trea- sury. The requirements for processing FEDWIRE payments are provided below. 1 2 3 !4 &proval. Field CFO’s must request advance written approval from the Department of the Treasury through theCFO foreach classor type of payment activity. Because specific approval is required foreach classor type of payment activity, the Department must submitan additional request for each new class or type of payment activity thatis substantially different from those approved previously. Arequest for approval is also required at anytime that the average payment volume ofan approved payment activity is expected to increase substantially. Field CFO’s desiringto use FEDWIRE should submit alettertothe CFO requesting approval. The CFO’S staff will complete the questionnaire contained in appendix lof ITFM4-2500 and forward the questionnai re and letter request- ing approval to the Department of the Treasury Financial Manage- merit Service. FEDWIRE payment requests that are not coveredby a formal written approval will not reprocessed by the Departmentof the Treasury. Verbal approval maybe given in emergency cases by the Assistant Commissioner for Field Operations of the Financial Management Service. However. awritten request and formal approval must follow each such action.

DavPavw . EFT payment requests must be received bythe RFC in time to accomplish funds transfers before Federal Reserve Communications System closing time. To ensure same-day payment, SF-11660CR’s must be received by the RFCnot later than 1:00 p.m., eastern time. FEOWIRE will not be available tomake payments during any period oftime that the FRBof New York or the RFCis closed. Holidays. RFC’sauthorized to issue EFT payments will notify Field CFOOs of holidays observed by the RFCandthe FRB of New York. Field CFO’sareresponsibl efornotifying the RFCof holidays observed by banks that will bereceiving EFT payments. MaxiwuodJhWmum Dol 1 ar Amou . ntS. Under FEDWIRE, the maximum dollar amount that can be sent in a single payment transaction messageis $999,999,999.99. No single paymentin excess of this amount will be accepted for processingby the Department of the Treasury. The Oepartmentof the Treasury has the authorityto establish and revise the minimum doll aramount fora single payment transaction message within a particular class or typeof 1-17 DOE 2200.6A 1-7-93 Paragraph 3b(3)(a)~ payment activity. The minimum limitation is establishedby the ● Assistant Commissioner for Field Operations and ls includedin the Ietter of approval . J@ortinq. FEDWIRE payments shall be included with other DOE disbursements and reported infections Iand IIof SF224, “Statement of Transactions ,“asrequiredin ITFM 2-3000. Dan YCash Posltio~. The Departmentof the Treasury isrespon- slblefor the management of the Government’s daily cash position, and must renotified of large transactions affecting the Govern- ment’s cash position in advance of the timeof actual disburse- ment. Field CFO’s and others certifying payments of$50 millionor morein a single transaction or in multiple transactions ofa common nature that will be disbursed via FEDWIRE must report to the Department of the Treasury at least 2daysbefore the date of payment. The report will contain the nameof the Department, the intended dateof issuance, the name of the intended recipient, and theamount tobe disbursed. The information shall betransmltted by wire (commercial facilities, TWX 7108229201, 02, 03, or04) to: Funds Control Branch Accounting Group Financial Management Service Department of the Treasury Treasury Annex No. 1 ATTN: GAO Bldg., Room lOIO Washington, DC20226 Field CFO’s shall also notify the Department of Treasury Funds Control Branch if FEDWIRE disbursements of$50 millionor more will be madeon a repetitive basis or if such payments are known in advance. .Ewmi. The forms prescribed for use in scheduling payments via FEDWIRE arein ITFM 4-2500, appendix4. .Preparation and Distribution of SF-1166 OCR . A An SF-11660CR, ’’Voucher and Schedule of Payments, “isprepared in aboriginal and two copies to support and authorize payments madeby FEDWIRE. The original SF-l1660CRis forwarded to the cognizant Department of the Treasury RFC for payment process- ing, andone copyis retained. Appropriate documentation shall be retained by the preparing field elemental a site audit document in support of the SF-224, “Statementof Transactions.” b Information on individual FEDWIRE payments listed on SF-1166 OCR’smust be sufficient to permit identification of the ● 1-18 1-7-93 DOE 2200 .6A Paragraph 3b(3) (b) transaction by the receiving financial institution or final recipient. To the extent possible, multiple FEDWIRE payments shall belisted on each SF-11660CR submitted for processing. However, under no circumstances shall FEDWIRE payments be scheduled on the same SF-l1660CRas non-FEDWIRE payments. For information on completing the SF-l1660CR. see ITFM 4-2500.

9 ntsRetu rned Via FFOWIRE . jI Field CFO’s will be notified of FEDWIREpaYments that cannotbe made by the Department of the Treasury or cannot be identified by the receiving financial Institution or recipient. Field CFO’s will receive amodified SF-1098. “Scheduleo fCanceled Checks,” from the Department of the Treasury(I TFM4-2500, appendix), for the return of creditto its eight-digit ALC. Information is included in the ’’payee’’ column of the SF-1098to aid Field CFO’s in identifying the payment returned. This informationis as follows: 1 Date of payment: thedate that the original FEDWIRE payment was transmitted; jJ ALC: field element’s ALC: ti Schedule number: thenumber of the original SF-11660CR, “Vouchera ndSchedule of Payments .’’ requesting FEDWIRE payment; jy Deposit ticket number: the document control number, used by the RFC for internal purposes; and y Amount: the dollar amount of the FEDWIRE payment message returned. h Field CFO’s receivingan SF-1098 shall treat itasaminusdis- bursement document. FEDWIRE payments. less returned items. shall be reported as a net figureon the monthly SF-224, “Statemento fTransactions ,“ to the Department of the Treasury. c Anew SF-l1660CRmustbe submitted for a returned FEDWIRE payment that issent asecond time. (b) ted Clearlnu House Vendora. nd Miscellaneous Pavments . The Department of the Treasury’ sACH payment system is also called Direct Deposit EFT(DD/EFT) or Vendor Express. ACHdata are transmitted through theFRB network to the participating financial institution in the form of magnetic tapes or disks, computer printouts. orelec- tronic data transmissions. It normally takes 20r3 workdays fora 1-19 DOE 2200.6A Paragraph 3b(3)(b) financial institution to receive funds transferredby theACH system. 1-7-93 1 2 3 4 5 The following DD/EFT procedures have been condensed from Federal Agency Procedures for Vendor and Miscellaneous Payments (DD/EFT). prepared bythe Department of the Treasury Financial Manage- merit Service, Product Implementation Branch, ACH Conversion Section (10-86). That publication should be consulted for detail ed procedures concerning the establishment and operation of DDIEFT. Direct any inquiries concerning the use of DD/EFT to the CFO. To maximize DD/EFT use, the Departmentof the Treasury Financial Management Service has expanded the systemto include vendor and miscellaneous payments. Vendor payments are prepared on magnetic tape in the prescribed DD/EFT miscellaneous payments format. Administrative recovery by the Government of overpayments made under DD/EFT rests with the Department of the Treasury. To allow the Department of the Treasury RFCand the FRB sufficient processing time. payment data must be delivered tothe RFC 3work- days before the established payment date. The RFCwill document processing procedures and timeframes inan interface agreement ● between the RFCand the local FRB Reserve bank. Field CFO’s shall monitor invoice due dates and try to avoid frequent submission of low-volume tapes. c. J3eportlna a~l lina III sbursemnts with ~t of the Treiur.y . . . . . (1) Ee.portinq. SF-224, “Statemento fTransactions ,“ispreparedm onthly by each Field CFOwho has been assigned anALCto report net disbursements to the Department of the Treasury. The SF-224 shouldbe prepared by each Field CFOandtelecommuni catedto the Department of the Treasuryby the close of the5th working day after theclose of the calendar month. Power marketing administrations (PMA’s) do not report entries or records in a Financial Information System (FIS) format, but they do submit hard-copy documents (including the SF-224). which are recordedby the Departmental Accounting and Analysis Division ona summarized basis into FIS. The Bonneville Power Administration (BPA) reports directlyto the Department of the Treasury.

(a) chers-Paid BasQ . Disbursements normally shall be reportedon the SF-2240n the basis of schedules paid by Departmentof the Trea- sury RFC’s. Field CFO’s are authorized to include schedules with fixed payment dates–for example, payroll–in their monthly reports even though the paid schedule has not been received from the Depart- mentof the Treasury RFC before preparation of the SF-224. Ifa paid ● 1-20 1-7-93 L)OE 2200.6A P a r a g r a p h e d (2) SF-11660CR, “Vouchera ndSchedule of Payments,”is received too late for~nclusionin the report for the month in whichit was paidor accomplished, except as noted above for fixed payment dates, the transaction shall be reported infection Iofthe SF-224 for the sub- sequent month. The month in which the paid or accomplished document was received shall be identified in section II of the SF-224. (b) Vouchers-S@ltted Basis. . . Field CFO’s may record payments that have not been paid by the Department of the Treasury. To relieve complica- tions of reversing entries at month end caused by Departmentof the Treasury late notification of payment, Field CFO’smay report SF-224 payments on the basis of schedules submitted for disbursement. The SF-224 shouldbe prepared directly from information in the account- ing system. The SF-224 must contain the same disbursement informa- tion asis submitted toFIS, except forBPA, which does not report through FIS. f@mncilinq. The Departmentof the Treasury reports disbursement trans- actions by ALCand the month disbursement was made. Differences are sent bythe RFC toeach ALCon TFSForm 6652. “Statemento fDifferences Disburs- lng Office Transactions,” through GOALS access or on microfiche, for resolution. Each Field CFO shall work with the appropriate Departmentof the Treasury RFC to resolve differences between DOE and Department of the Treasury reports. Discrepanciesin ALC reporting shall be correctedby the reporting ALC on the SF-224 for the current month. For a comprehensive treatment of SF-224 reporting requirements, see DOE 2200.8B. ACCOUNTING SYSTEMS, ORGANIZATIONS, AND REPORTING, Chapter III, “External Reporting.” and ITFM 2-3300. d. ~tra~vern.mental Bill lna ~ . m~. (a) ~. With GOALS. Field CFO’s can transmit and receive accounting data through a commercial time-sharing service via atelecommunica- tions network. The Departmentof the Treasury RFC-DOE link ofGOALS provides timely access by DOE to paid disbursement data. Thedis- bursement data arein acentral data base and available for online inquiries for60 days. Reconciliations can be accomplished through direct access to detailed data bveach ALC. All field CFO’s, includ- ingthose choosing not to access the RFC-DOE link, will receive microfiches as permanent records of detailed disbursement data. One component ofGOALS is the Online Payment and Collection (OPAC) System. The OPAC System establishes a standardized interagency billing and adjustment procedure via a telecommunications network. OPACisa menu-driven system that provides for both the billing and the adjustment aspects of the systemon one menu. As withall GOALS components, DOE bears the costsof online access. Field CFO’s using OPACwill no longer generate bill ingsby SF-1081, “VoucherandSched- ule of Withdrawals and Credit,’’ described in paragraph 3d(4). OPAC cannot be used to make payments to agencies for which the Department 1-21 DOE 2200.6A 1-7-93 P a r a g r a p h e d of the Treasury does notdlsburse funds (for example. the Department ● (b)

(c) (d) (e) of Defense). Mlllnas Be~ . . OPAC allows one Federal agency to charge anotherby entering the necessary billing data (for example, the amount, the customer ALC, and the description) into its onsiteterml- nals. The customer agency can then print bills charged toits ALCon the next day. The system _is updated overnight. Up-front edits elimi- nate the need for time-consuming adjustments to bflling information by rejecting incorrect submissions. ~. Upon consultation with the billing agency, thecus- tomer agency can access the OPAC System and enter an adjustment into the system. Computer-generated edits will be performed on several items, for example, the document reference number and the original billing ALC, to ensure that the adjustment is valid. Once the adjust- menthas been entered, the billing agency can access the systemon the next day to print the adjustment at its site. Jh?porting. New bills and adjustments must be entered by their respective cutoff dates: the24th of the month fornewbllls and the 28th of the month for adjustments. Unlike the SF-1081 system, the OPAC System requires billing agencies and customer agencies tobe responsible for reporting only their respective sides of the inter- agency transfers on SF-224 ”Statement of Transactions.” OPAC billing and adjustment data are retrievable online for the current ● month and the previous month. All reports are avail able onlinevla GOALS. TFSForm 6652, “Undisbursed/Receipt Account, Statementof Differences”; OPACand RFC/Agency Link are on microfiche. Waesfor Useof GOAIS. Each ALCusing GOALS shoul druna copyof its monthly billing statement ,whichis available around the18th workday of the followi ng month. This bill is not enteredon the SF-224, because the Department of the Treasury has already reduced DOE’s appropriation for the charge. (2) Simpljfiedmtraaoverwtal Bil 1 fna and Col 1 ection Svst em(SIBAC) was establishedby the Department of the Treasury to accomplish intragovern- mental purchases, sales, and payments in amore efficient manner. The Online Payment and Collection System was subsequently developed andis replacing SIBAC except for billings by the General Services Administration. (3) 66 oucher forTra nsfers BeWeen ADp roDriations W (a) fieneral. SF-108O, “Voucherf orTransfers Between Appropriations and/or Funds, “ is used when DOE does business with an”agency that does ● I-22 1-7-93 DOE 2200.6A Paragraph3e (4) (5) not submit an SF-224, “Statement of Transactions.” to the Department of the Treasury and requires payment or collection by check. (b) _Procedures. The SF-10801s only usedas abilling document byDOEto receive funds from agencies not using Department of the Treasury RFC’S. When billing onan SF-1080, complete the form through the “Certificateof the Office Charged” section. Send the original and two copies to the agency billed. Keep acopyofthe SF-1080 pending collection by check. When billed on an SF-108O, process the payment through the Department of the Treasury according to established disbursement procedures. For payment identification, place billing agency information on the check. As the billing agency, Field CFO’s deposit checks received according toestabl ishedcollection proce- dures. Detail ed instructions for use of the SF-1080 are foundin ITFM 2-2000. dard Form 1081. 4* oucher and Schedu leof Witlxlrawals and Credit m,.

(a) General. SF-1081, “Vouchera ndScheduleo fWithdrawal sand Credit,” is a combined billing and payment document for interagency payment transactions when both agenci es report on SF-224, “Statementof Transactions.” When an SF-1081 is used for a disbursement, the paying agency must reflect both the disbursement and the other agency ’s collection in section Iofthe SF-224. SF-11660CR, “Vouchera ndScheduleof Payments,’’ shall not beused withan SF-1081 . (b) proce@. The billing office must ensure the completeness and accuracy of billing documents to avoid disputes and errors. nciliation to the Dt2DW211fYIt of the TreasurY . After submission by Department of Energyof the monthly SF-224, “Statemento fTransactions ,“ the Department of the Treasury will furnish to DOE either TFSForm 6653, “UndisbursedA ppropriation Account,’’ orTFS Form 6655, “Unavailable Receipt Account Ledger.” The Field CFO shall use these reports to verify that customer reporting to the particular appropri ation, fund, or receipt symbol has been completed. If the reports show a discrepancy between amounts reportedby a customer ALC and the amount confirmed, the billing office shall immediately contact the customer office to determine the reason for the discrepancy. If it is determinedly the agencies that the Department of the Treasury has made the error, the billing office shall contact the Department of the Treasury. Disputed and erroneous transactions are discussed in ITFM 2-2000. e. ~.Public Law 100-86, The Competitive Equality Banking Actof 1987, was signed into law on 8-10-87. Title Xofthis law limits the time period for cashing Department of the Treasury checks, sig- nificantly reduces the time period for initiating reclamation actions and check claims, and establishes requirements for cancellations and distribution of proceedsof checks. Although the timein which to cash the checkis affected, a person or entity does not lose entitlementto the payment. Title X provisions I-23 DOE 2200 .6A 1-7-93 Paragraph 3e do not apply to DD/EFT payments or processing. The effective date for impl e- ● meriting provisionsof the law was Octoberl, 1989. Refer to TFM bulletin 90-03 and31 CFR parts 235, 240, 245, and 248 for more information on this topic. (1) .EQyabilitv is the length of time acheckcanbenegoti atedto a financial institution. Department of the Treasury checks dated on or before 9-30-89 must be cashedby 9-30-90. Treasury checks dated on or after 10-1-89 must be cashed within lyearfrom the date of issuance. (2) cl aimabl 1 ltv . . is the length of time during which a payee can present a claim of nonreceipt, loss, ortheft ofa check toan agency. (a) Before 10 1 89.- Apayee must present aclaimon a Departmentof the Treasury check;ssued before 10-1-89to the cognizant field office before 10-1-90. The Departmentof the Treasury must receivean SF-1184, “UnavailableC heck Cancellation,”or magnetic tapeof unavailable check cancellations prepared by DOE before 10-31-90. (b) Apayee must present aclaimon a Departmentof the Treasury chec~ issued on or after 10-1-89to the cognizant field office within lyear from the dateof issuance. The Department of the Treasury must receive an SF-11840r magnetic tape of unavailable check cancellations prepared by DOE within 13 months from the dateof issuance.

(3) ~tionis ademand by the Department of the Treasury forrefund of the ● amount of a check payment from the presenting bank or other endorser. Title Xreduces the period during which the Departmentof the Treasury may reclaim the amountof a check that has been paid over a forgedor unautho- rized endorsement. The Department of the Treasury considers the date of payment to be the date on which the Federal Reserve bank gives provisional credit for the item to the clearing bank. (a) Before 10 1 09- - . Asof 10-1-89, the Departmentof the Treasury cannot reclaimant checks paid by the Department of the Treasury before 4-1-88. For checks paid on or after 4-1-88, the Department of the Treasury has 18 months from the paid date to reclaim for payee claims and 12 months from the paid dateto reclaim for agency claims. (b) After 930 89- - . Asof 10-1-89, the Department of the Treasury has 12 months from the paid date to reclaim for agency nonentitlement claims and 18 months from thepaid dateto reclaim for payee nonreceipt claims. (4) L“m”1 lted PaYabilitYCance Qllatio . (a) Before 10 189- - . Not later than 4-1-91, the Departmentof the Trea- sury shall identify and cancel all checks issued before 10-1-89 that are still outstanding. No moneys shall be avail able to agencies from this cancellation. The Departmentof the Treasury will apply the ● I-24 DOE 2200.6A Paragraph 3e(6)(c) 1-7-93 a proceeds from these cancel edchecks to eliminate the balancesin accounts that represent uncollectible accounts receivable and other costs associated with the payment of checks and check claims by the Department of the Treasury on behalf of all payment-certifying agencies. Any remaining proceedswil 1 be deposited to the miscellaneous receipt accounts at the Department of the Treasury. (b) After 9 30 89- - . The Department of the Treasury will cancel all checks issued on orafter 10-l-89 that remain outstanding 12 months from the issue date. The Department of the Treasury will identify and cancel these outstanding checks during the 14th month after the issue date. The Department of the Treasury will forward the check proceeds to DOE through OPACand will provide as detail any identifying information provided by DOE in the original issue submission. The detail is also avail able monthlyon microfiche. Field CFO’s shall report the credits in section II of SF-224, “Statementof Transactions,” and shall classify the credits to the appropriation account from which the canceled check was issued or to its successor account. (5) Beve rsals of Limited Pavabil itv Cancellat ions. In some cases, the payee will negotiate the check toa financial institution within lyear from the date of issuance, but processing in the Federal Reserve System orin the Department of the Treasury’ s Check Reconciliation Branch will prevent the Department of the Treasury from applying the payment to the Check Payment and Reconciliation System before the limited playability cancellation has occurred. In these cases, the Department of the Treasury will reverse the limited payability cancellation credit previously provided to DOE and will providea copy of the paid item. This transaction will be separate from the monthly cancellation credit. (6) Accountlna for Chti Canu?led Under Titl e X . Provisions.

(a) The Field CFO shall return the proceeds from cancel edchecks tothe accounts from which the checks were issued originally or the succes- sor accounts. For annual, multiyear, and no-year appropriation accounts, the Field CFO shall treat the canceled checks as accounts payable. Ifthe Field CFO determines that the liability isnot valid, the funds then are available to the account or returned to surplus under normal yearend procedures. (b) In cases where the liability is valid, but no claim has been presented within 3years from the dateof the check. DOE shall return the funds to the Department of the Treasury through SF-2108, “Yearend Closing Statement,” for annual, multiyear, and no-year appropriation accounts. If the payee presents aclaimafter the funds have been returned, DOE shall restore the funds through the normal restoration process. I-25 (c) For deposit fund accounts and uninvested trust funds, DOE shall follow the procedures containedin ITFM 6-3000, “Paymentsof DOE 2200.6A Paragraph 3e(6)(c) 1-7-93 ● ( 7 ) (8) Unclaimed Monies and Refund of Monies Erroneously Received andCov- ered.” DOE shall retain funds from canceled checks from invested accounts. (d) The Field CFO shall keep any records necessary to recertify payments on obligations represented by the cancel ed checks. Funds from the canceled checks shall not beused to create newobligatlons exceptfn cases where the liability is determined not to be valid. ~.The Department of the Treasury will retain records of checks dated on or after 11-07-86 for 6%years, but will charge for copy or status requests made 18 months ormore after the issue date. As of 4-1-91, the Department of the Treasury will levy an annual charge for record storageon agencies. The Departmentof the Treasury expects the charge toDOEto be minimal and will allocate the charge byALC. .~j. An agency may certify anew payment upon receipt ofa claim concerning the nonreceipt, destruction, loss, mutila- tion, or defacement ofa check or upon the cancellation of acheckafter14 months. 4. CONTRACT FINAW PAYMENTS. a. Definition. “Contractf inancingpayment” means a Departmental disbursementof ● moneys to a contractor under a contract clauseor other authorization priorto acceptanceof supplies or services by the Department. Contract financing payments include advance payments: progress payments based on cost under the clause at title 48, section 52.232-16, of the Codeof Federal Regulations: progress payments based on a percentageor stage of completion (48CFR 32.102(e)(l)) other than those made under the clauseat title 48, section 52.232-5 (“Payments Under Fixed-Price Construction Contracts”), or the clause at title 48, section 52.232-10 (“Payments Under Fixed-Pri ce Architect-Engineer Contracts”), of the Code of Federal Regulations; and interim payments on cost-type contracts. Contract financing payments do not include invoice payments. b. .Due Date. The due date forsaking contract financing payments by the designated payment office will be the 30th day after the designated billing offi cehas received a proper request unless the terms of the contract specify another time period. In the event that an audit or other review ofa specific financing requestis required to ensure compliance with the terms and conditions of the contract, the designated payment officeis not compelled to make payment by the due date specifiedor to pay interestas specified in the Prompt payment Act.

c . Nonrecurring Contract Flnanclna Rew. . For advance payments, loans, or other arrangements that do not involve recurrent submission of contract financing requests, payment shall be made in accordance with theappllcable contract financing terms oras directed by the contracting officer. ● I-26 1-7-93 DOE 2200.6A Paragraph 6b(l) d. Proper contract Ffnawlng MuwW . . A proper contract financing request must comply with the terms and conditions specifiedby contract financing clauses or other authorizing terms. The contractor shall correct any defectsin requests submitted in the manner specified in the contractor as directed by the contracting officer. e. . The designated billing office and designated payment office shall annotate each contract financing request with the dates that a proper request was received in their respective offices. f. UestPW. Contract financing payments shall not be assessedan interest penalty for payment delays. 5. TSUNDFRFIWIALA~ . a. ~. The Department shall select the payment method under a grantor sub- grant with the objective ofminimizing the time elapsing between the transfer of funds from the Department of the Treasury and their disbursementby the grantee or subgrantee for grant or subgrant purposes. If the grantee or sub- grantee meets the requirements for advance payments, DOE shall make advancesby a Ietterof credit orby a Department of the Treasury check. Seeparagraph7 for information on letters of credit; Chapter II for information on advances: DOE 2200.9B, MISCELLANEOUS ACCOUNTING, Chapter IV, “Grants and Cooperative Agreements,” for informationon grants: and title lO, sections 600and 605, of the Code of Federal Regulations for information on assistance regulations, b. tit Stict to the Prompt Pavment Act . . Financial assistance instruments are not subjectto the Prompt Payment Act. Recipients of Federal assistance may pay interest penalties if so specified in their contracts with contractors. However, obligations to pay such interest penalties will not be obligations of DOE. DOE funds may not be used for this purpose. 6. AND CERTIFICATION OF INVOICFS. VOU~S. AND Cl~ . a. ~. Field CFOssandother offi cialsconcerned with the examination and paymentof invoices shall establish adequate procedures to safeguard against illegal or erroneous certifications and payments and shall implement any such measures as maybe necessary to effect recovery of amounts illegallyor erroneously paid. Refer to TFM4-2040 for informationon procedures for appointing certifying officers andtotitle 31, section 3528, of the United States Code, as amended, for the legal responsibilitiesof a certifying officer. b. -. (1) invoices are documents requesting payment for work performed. property and services delivered, or costs incurred. The terms “invoice,” “voucher,” and “bill” areused interchangeably in this chapter. I-27 DOE 2200.6A Paragraph 6b(2) 1-7-93 ● (2) Jnvoice Payments . “Invoice payment” means a Departmental disbursement of moneys toa contractor under a contractor other authorization for prop- erty or services accepted by the Department. Thfs tncludes payments of partial deliveries that have been accepted by the Government and final cost or fee payment where amounts owed have been settled between the Department and the contractor. Invoice payments also include all payments made under title 48. section 52.232-5 (“Payments Under Fixed-Price Con- struction Contracts”), andtitle 48, section 52.232-10 (“Payments Under Fixed-Price Architect-Engineer Contracts”). of the Code of Federal Regulations. Invoice payments do not include contract ffnancing payments.

(3) Lla.y. For purpose of paragraph 6, the term ”day’’ refersto a calendar day unless specffied otherwise. c. ~. The Prompt Payment Actof 1982 (Public Law 97-177) and the Prompt Payment Act Amendmentsof 1988 (Publfc Law 100-496), as implementedby OMBCir- cular No. A-125. ’’Prompt Payment,” require Federal agencies, t-o pay bills on time, pay interest penalties when payments are made late, and to take discounts only when payments aremadewithfn the discount period. Payments madeby prime con- tractors totheir suppliers are not subject to the Prompt Payment Act. However, prime contractors under construction contracts must extend prompt payment provisions to their subcontractors. The following policy statements applyto the examination and payment of invoices by DOE. ● (i) (2) (3) (4) (5) Pay all invoices as closeas possible to, but not later than. the contract specified due date or, if appropriate, the discount date. Thedate ofa Treasury checkis considered the payment date. For payments by electronic funds transfer, the date the contractor’s financial institution receives payment is considered the payment date. Refer to paragraph 6f(l) for determinationof the due date when the due date is not specifiedin the contract or purchase order. If the duedate fall son a nonworking day, then thedue dateis the next working day. Payment mustbe basedon recefpt of proper invoices and DOE acceptance of complete delivered property or services or approvals evidencing satisfac- tory performance of required work, for example, contractfngofffcer provisional payment approvals subject to later audit. Field CFO’s shall take discounts only when payments aremade within the discount period and only when economically justified, consistent with Department of the Treasury regulations (I TFM 6-8000). Under acquisition contracts, DOE must pay penaltiesin accordance with paragraph 6g when discounts are taken after the discount period has expired or payments are late. Payment shall be made onthebasis ofan original invoice. If the original invoiceis lost or destroyed, a duplicate shall be obtained from the ● contractor. I-28 DOE 2200.6A Paragraph 6c(15) (6) (7) (8) (9) (lo) (11) (12) (13) (14) (15) Vouchers must reexamined and approved for payment before they arecerti- fied for payment. Approved statistical sampling procedures may besubsti- tutedfor the examination of each individual voucher (see paragraph 6e(2)). Disbursements from theimprest fund are not subject to examination and approval priorto certification and payment unless the Field CFOso desires. Fast payment procedures, whereby paymentis made to a contractor based upon assurance that property has been shipped, rather than awaiting noti- fication that property has been received, shall be approved in advance by the CFOor Field CFOon an individual basis. See paragraph 6f(4) for details. Vouchers; SF-11660CR. “Vouchera ndScheduleof Payments”: and supporting documents shall be marked or canceledso as to prevent their bein9 pro- cessed for payment fora second time. Documents sub.ject to subsequent use unmechanical or computer systems, such as card transaction requests, shall be markedin such away as to avoid mutilation. Designated officials shall promptly inspect property or services to ensure that prompt payment schedules aremet. Progress payments shall be made on the contract-speci fied due dates: if none are specified, make payments as close as possible to. but not later than, the30th day (14th day for fixed-price construction contracts) after receipt of the contractor’s request for payment by the contract- designated billing office.

Priority shall be given copayments to minority and small businesses only to the extent that it ensures timely processing ofinvoi ceson or before payment due dates. Payments for meat, meat food products. poultry, eggs, and egg products shall be madeas closeas possible to, but not later than, the7th day after the date of delivery, unless another dateis specified in the contract. Payments for perishable agricultural commodities shall be madeas closeas possible to, but not later than, the IOth day after the date of delivery unless another dateis specified in the contract. Payments for dairy products (including, at aminimum. liquid milk, cheese. certain processed cheese products. butter, yogurt, and ice cream), edible fats oroils, and food products prepared from edible fatsor oils (includ- ing mayonnaise, salad dressings. and other similar products), shall be madeas close as possible to, but not later than, the IOthday after the date onwhich aproper invoice is received. I-29 DOE 2200.6A Paragraph 6c(16) 1-7-93 ● (16) Payment for transportation of persons or property foror on behalf of the United Statesby acarrier or forwarder shal 1 be made within 30days after receipt of bills by the designated billing office (the office designated in the contract or purchase order to receive invoices). Transportation bills may be paid before GSA performs the rate audit. (17) Certifying officers have the right toapply for and obtain decisions from the Comptroller General before certifying a payment when aquestion of law is involved on apayment or a voucher presented for certification. The contracting officer must be promptly notified of such actions. d. ~. In order to ensure that payments are properly authorized and correct the following documents are usually required: a contract, an invoice, and a receiving report or equivalent. (1) Contract. Each payment must be based on a valid contract, purchase order, or similar contractual document. To make payments to a public utility, it is not necessary tohavea contract, regardless of the amount or the number of payments to be made, when the utilities rates have been fixed or adjusted by Federal, State, or other regulatory bodies, unless a contract is in the best interest ofDOE. Apublic utility service is not requiredto furnish rate schedules if it supplies unit rates orif the invoicesor bills from the utility show the total amount of the services furnished, the unit rates charged for the services. and the total amount charged. This does not preclude the use of aDOE contract when the utility company ● requires an agreement or contract for the furnishing of services. (2) -LnYrdm. (a) J@.uired Info~. Invoices sent to DOEshoul dbe preparedin accordance with the terms and conditions of the contract or purchase order. Aproper invoice must include the following: 1 2 3 4 5 6 The name and mailing address of the contractor and the invoice date: The contract numberor other authorization for deliveryof property or services; The description, price, and quantity of property or services actually delivered or rendered, as stated in the contract; Shipping and payment terms, inapplicable; Other substantiating documentation, as required bythe contract; and The name, (where practicable), title, telephone number, and complete mailing address of the responsible offi cial to whom the payment istobe sent. 1-30 DOE 2200.6A Paragraph 6e(l)(b)

(b) ~. payment shall be made on the basis of an original invoice. Should the original invoice belost or destroyed, aduplicate should reobtained from the contractor. A full explanation of the circumstances of the loss or destruction of the original invoice and a statement that steps have been takento prevent duplication of the payment mustbe added or attached tothe duplicate invoice before it can be processed for payment. Adequate systems of internal controls shall be provided to ensure thatno duplicate payments can occur under this procedure. (3) J/eceivlna_. Receiving reports or other notifications of acceptance received by the payment office must include the following: (a) The contract orother authori zation number: (b) Description of property or services received: (c) (Mantities received and accepted, inapplicable; (d) The date(s) that property or services were delivered; (e) The date(s) that property or services were accepted: and (f) The signature, printed name, title, telephone number and mailing address of the receiving official. e. ~. (1) Actions Required Prior to Paymti . The prepayment actions specified below must take place withas little delay as possible. Proper procedures will ensure that payment officials have a valid contract that contains the required accounting data; all applicable amendments, with appropriate accounting data: and evidence that property or services have been received. inspected, and accepted or that the contracting officer or designee has approved the invoiced amount for payment. (a) The invoice shall be stamped with the dateit is received in the designated billing office, and recordedas received. DOEmaydesig- nate another agency or cognizant audit agency to receive contract invoices and may delegate to that agency the authority to approve for payment some invoices for cost reimbursement contracts. Such agen- cies must date the invoices or public vouchers to show when they were received. The date represents constructive receipt by DOE andis the date that should beused in timing payments. (b) DOE officials authorized to approve receiving reports must forward the approved documents to the appropriate DOE Field CFO for payment processing sufficiently in advance of the payment deadline to allow the documentation to be reviewed and to notify contractors of any 1-31 l— DOE 2200.6A Paragraph 6e(l)(b) (c) (d) (e) 1-7-93 ● problems detected before penalties mustbe added to the amounts payable. Invoices offering discounts should be identified early in the payment process soasto schedule the payment to meet the discount date if cost-effective. All invoices shall be examined for accuracy and completeness and con- sistency with the terms, conditions, and deliverables specifiedln the ordering document. If, on examination, the invoice is foundto be incomplete orimprop- erly prepared, the contractor mustbe notified within 7 days of its receipt (3days for meat, meat food products, poultry, eggs. and egg products and5 days for perishable agricultural commodities ordairy products, etc.). The notice maybe given orally and confirmedin writing. Local procedures shall stipulate whois responsible for providing this notification. (z) ~. Accomplishment of the above steps constitutes unofficial basis for making payment. Statistical sampling procedures may be used in the prepayment examination of disburse- merit vouchers for amounts notin excess of $2,500. Specific instructions on how to use statistical sampling procedures to examine vouchers are found in 7GA0, Appendix III, “Use of Statistical Sampling Procedures in

● Examinationof Vouchers for Payment.” Title 31 U.S.C.. SectiOn 3521(C) allows that any disbursing or certifying official relying in good faithon a statistical sampling procedureto disburse funds will not be liable for losses to theGovernment resulting from payment or certification Ofa voucher not audited specifically because of the useof a sampllng proce- dure. provided that collection actions prescribed by the Comptroller General have been diligently carried out. Field CFO’s have the primary responsibility for establishing a sampling plan consistent with theGAO instructions. The CFO has this responsibility for Headquarters. (3) . estfor Prouress Pav~tl on (lmtracts . The follow- ing information must be included in each request for a progress payment under a construction contract: (a) Substantiation of amounts requested including: 1 An itemizationof the amounts requested related to the various elements of work required by the contract covered by the payment request; Z Alisting of the amount included for work performed byeach subcon- tractor under the contract: ● I-32 1-7-93 DOE 2200.6A Paragraph 6f(l)(c) 2 Alistingof the total amount of each subcontract under the contract: 4 Alfsting of the amounts previously paid to each such subcontrac- torunder the contract: 5 Additional supporting data In a form and detail required by the contracting officer. (b) Certification by the prime contractor, tothebest of the contractor’s knowledge and belief, that: 1 The amounts requested are only for performance ln accordance with the specifications, terms, and conditions of the contract; Z Payments to subcontractors and suppliers have been made from ‘“ previous payments received under the contract, and timely pay- merits will be made from the proceeds of the payment covered by the certification, in accordance with their subcontract agreements and the requirements of Chapter 39. title 31 U.S.C.; and a The application doesnot include any amounts which theprime con- tractor intends towithhol dorretain froma subcontractoror supplierin accordance with the terms and conditions of their subcontract. f. ~. (1) ~. (a) Payments should rescheduled so that they aremade as close aspossi- bleto, but not later than, the date specified in the contract. Also, payment maybe made no more than 7 days prior to the payment due date, unless the CFOor Head of Field Element or designee has determined, on a caseby<ase basis for specific paymentso that earlier payment is necessary. Ifno dateis specified in the contract. payment shall be scheduled to bemade onthe30th day after receipt of invoice. See paragraph f(2) below for further clarification. (b) When adiscount is taken, the payment shall bemadeas closeas possible to, but not later than, the discount date. (c) Payments formeator meat food products, including edible freshor frozen poultry meat, any perishable poultry meat food product, fresh eggs, and any perishable egg product shall be madeas close aspossi- bleto, but not later than, the7th day after the date of delivery, unless otherwise specified in the contract. I-33 DOE 2200.6A 1-7-93 ●Paragraph 6f(l)(d) (d) Payments for perishable agricul tural commodities shall be madeas close as possible to, but not later than, the IOth day after the date of delivery. unless another date is specified In the contract.

(e) Payments for dairy products (including, at aminimum, liquid milk. cheese, certain processed cheese products, butter, yogurt, and ice cream), edible fatsor oils, and food products prepared from edfble fats oroils, (including. at aminimum. mayonnaise, salad dressings, and other sfmilar products), shall be madeas closeas possible to, but not later than thelOth day after the date onwhich aproper invoice for the amount due has been received. (f) For construction contracts ,progress payments mustbe paid as close as possible to, but not later than, the14th day after receiptof payment request from the contractor, unless the contract specifies otherwise. (g) When an invoice is received which contains items with different payment periods, finance offices: 1 Should pay in accordance with the contractual payment provisions (which may not exceed the statutorily mandated periods specified in paragraph 6f(l)(c),(d), and (e)); 2 Must pay interest if payment is made so that some items are paid for after their due dates; 3 May spl It payments, making payment by the due date applicable to each category: q May not require contractors to submit multiple invoices for payment of individual orders by the agency; and 5 May encourage but may not require contractors to submit separate invoices for categories of products with different payment periods. (2) B.ec.eiptof Invoiu. For the purpose of determining payment due date and thedate on which interest will begin to accrue, an invoice shall be deemed to be received: (a) Onthe later of: 1 The date a proper invoice is actually received by the designated bi 11 ing office, if the bil 1 ing office annotates the invoice wfth date of receipt at the time of receipt; or 2 The 7th day after the date on which the property is actually deliv- ered or performance of the services is actually completed; unless: I-34 DOE 2200.6A Paragraph 6f(4)(c)L 1-7-93 e ~ The property orservfces are actually accepted before the7th day (in which case the acceptance date shall substitute for the 7th day after thedelfvery date), or h Alonger acceptance period is specified in thesolicitati on and included inthe contract to afford the Department apracticabl e opportunityto inspect, test, and accept the property orevalu- atetheservfces (in which case the date of actual acceptance or thedate onwhich such longer acceptance period ends shall substitute for the7th day after the delivery date); or (b) On the date placed on the invoice by the contractor, fnany casein which DOE fails to annotate theinvotce with the dateof receiptat the time of receipt (such invofce mustbe a proper invoice). (3) ~. when a receiving report is used, it mustbe recefved by the paying offfce from the approving offi- cial within 5workfng daysof acceptance of the property or services unless other arrangements are made. If a contract does not specify aperiod to accept property or services. the acceptance period shall be7 working days after delfvery of propertyor services, unless acceptance occurs sooner. Receiving reports and invofces will be stamped or otherwise annotated with the date upon recefpt in the payment office. The approving official must ensure that the invofce contains the data necessary for prompt payment processing, for example. the contractor other identffyfng number anda breakdown of bflled costs by budget and reporting code. If propertyor services have not been received orff the terms of the contract have not been met. the designated approving official shall notffy the procurement and payment offices fmmedfatelyof the problems and the corrective actfons that have been fnftiated.

(4) ~. In some situations, paymentmay bemade wfthout evfdence that property has been recefved. A contractor’s certifi- cation that property has been shipped may be used to authorize payment. This procedure may be used only when all the following condftfons exist: (a) Individual orders do not exceed $25.000. unless permfttedbythe CFO on a case-by-case basfs. (b) Property is to redelivered where there are both ageographt cal separation and a lackof adequate facilities for communications between DOEreceivfng and finance offices, making it fmpractfcable tomaketfmely payments basedon evfdence of DOE acceptance. (c) Title to the property vests in the Government: 1 Upon delivery toa post office or common carrier formailingor shipment; or I-35 I I DOE 2200.6A Paragraph 6f(4)(c)z 1-7-93 ● 2 Upon receipt by the Government, if the shlpmentls bymeans other than theU.S. Postal Service ora common carrier. (d) The contractor agreesto replace, repair, or correct property that was not received at destination, that was damaged in transit, or that does not conform to purchase requirements. 9 . J2kcmmA. (a) Take discounts only when it is cost-effective, as specifiedin paragraph 6g(3), and only after propertyor services have been accepted. (b) When discounts are offered for early payment ofinvoi ces, the invoice shall be ’’aged’’ for discount purposes from the date placedon the proper invoice by the contractor tothe discount date. To compute the discount earned, payment shall be considered to have been made on the date of the payment. All payments containing discounts shall be scheduled for issuance as close as possible to, but not later than, the last day of the discount ~eriod. (c) Adiscount must not betaken when payment is made after the discount ●period has expired. Take discounts under bids or written agreements covering purchases of property only when contractors offer such dis- counts. Discounts statedon pro forma invoices shall be takenon pur- chases madeon the open-market without special authorization from the contractors. For a trade-in-allowance, compute the discounton the total contract price, not on the trade-in-allowance. If payment is made in the gross amount, explain on the voucher why the discount offered was not taken. (d) Payment systems shall incorporate procedures that automatically take advantage of cost-effective cash discounts and, to the extent possible, eliminate the need for special handling. (2) Cdl CU1 atl on of Di s~d . . Calculate the discount period from the date placed on the invoice by t~e contractor to the discount date. (3) mination of Cost-Ffff?ctivew . Take discounts only when thedis- count rate offered is equal toor greater than the current value of funds rate in the Department of the Treasury. The Department of the Treasury issues a quarterly bulletin inthe~ral Rem and bulletins to the TFMtohelp agencies determine the discounts that should be taken. Each field element may develop itsown look-up table to help determine cost- effective discounts. Interest costs should redetermined by each Field CFO and factored into the calculation to determine the cost-effectiveness of taking a discount. (See Attachment I-2. ) ● I-36 1-7-93 0 DOE 2200.6A Paragraph 6h(l)(d)Z

(4) ~.Economically advantageous purchase dis- counts lost shall be charged to the same object class and budget and reporting classification as the original contractor purchase order. Discounts lost for contracts or purchase orders funded by multiple budget and reporting classifications or appropriations should be prorated in proportion tothe costs of goods and services acquired. Discounts lost related to plant and equipment acquisitions shall immediately be written offas anon-fund charge to cost of operations. h. J&u_alties. The following requirements for penalties areapplicabl etoall Field CFO’s. (1) ~. Interest penalties shall bepaid as required by the contract’ sspecified payment terms and conditions. Ifno payment terms are specified in the contract, penalties shall be paidas required by the Prompt Payment Act Amendments of 1988, regardless of date of contract award or modification. The previously available 15-day grace period in whichto make payments without incurring penalties was eliminated by the 1988 amendments. (a) Payments shall be considered late if not paid by thedue date and interest penalties shall bepaid. (b) Pay interest penaltiesof $1.00 ormore automatically tothe partyto which the contract, purchase order, or other contractual arrangement has been awarded. (c) Pay interest penalties outof funds made available for the procure- mentof propertyor services delivered. Penalties shall be charged to the same object class and budget and reporting classification as the original contract or purchase order. Prorate penalties for con- tracts or purchase orders fundedby more than one budget and report- ing classificationor appropriation. Penalties related to plant and equipment acquisitions shall immediately be written off as a non-fund charge to cost of operations. Interest penalties are subject to fund limitation, and fund avail ability mustbe assured. See Attachment I-3 for sample notificationof a program official that a penalty has been charged to the program. (d) Payments shall accrue interest if they meet the provisions ofpara- graph 6h(l) and ifall the following conditions have been met: 1 Avalid contractor purchase order exists for the acquisitionof property or services: Z Inaccurate, complete invoice from the contractor or specific contract authority, such as some periodic lease payments, has been received; and I-37 DOE 2200.6A Paragraph 6h(l)(d)~ 1-7-93 (e) (f) (g) a Acceptance of property or services has occurred and there is no disagreement over quantity, quality, or other contractual provisions. If timely payments are preventedby the temporary unavailability of funds, when funds become available, the contractor is entitled to payment with late payment interest penalties. If adiscount is taken after the discount period hasexpi red and the Field CFO fails to correct the underpayment by the payment due date, the underpayment and interest penaltieson the underpayment shall be paid. Interest penalty calculations shall be based ona 360day peryear in accordance with the following guidelines: Apply the appropriate interest rateas established bythe Secre- taryof the Treasury under section 120f the Contract Disputes Act of 1978 (41 U.S.C. 611). Whenevera payment is made late, include interest with the payment at the rate in effect onthe day after the due date. The rate established by the Contract Disputes Actis referred toas the “Renegotiation Board Interest Rate” and is published in the Federal-Regi ster semiannually on or about Januaryl and Julyl.

Compute interest from the day after the due date through the payment date, and state the amount separately onthe checker accompanying remittance advice. Make estimates for the timelag between the date payment is scheduled and the date of the check. Adjust time estimates as required. When an interest penalty isnot paid, accrue intereston the unpaid amount forl year or until paid. whichever occurs first. Add interest penalties remaining unpaid forany 30-day period to the principal . Interest penalties will accrue monthlyon the total of the principal and previously accrued interest. (See Attachment I-4.) When adiscount is taken after the discount period has expired and corrective action is not takenby the payment due date, calculate the interest on the amount of the improper discount taken for the period beginning theday after the end of the discount period through the expected payment date. (See Attachment I-5.) Whena contractor submits an invoice thatis deemed improper, notify the contractor within 7days (3days for meat, meat food products, poultry, and eggs and5 days for perishable agricultural commodities and dairy products) from the date the invoiceis received in the office designated in the contract to receive invoices. If the contractor isnot notified bythe Field CFO within the appropriate time period, reduce the number of days ● allowed for payment of the corrected invoiceby the number of days I-38 @ 1-7-93 (h) (1) (j) DOE 2200.6A Paragraph 6h(2)(a)Z between the7th day (3rd day for meat and meat food products. and 5th day forperfshable agricultural commodities and dairy prod- ucts) after receipt of the invoice and the day thenotificati on was transmittedto the contractor. Calculate interest penalties on the adjusted due date, reflecting the reduced number of days allowed for payment. (See Attachment I-6. ) Interest penalties are due on payments made after the payment due date for amounts retained during contract performance and released after completion of the contract. This applies to all types ofcon- tracts not excluded by paragraph 6h(5) when complete delivery and acceptance have occurred. Interest not paid within 30 days shall be compounded every30 days. Contractors shall be notified in writingof the amount of interest penalty, the interest rate used to calculate the penalty, and the period oftime towhich the penalty applies. The contract number and any invoice number should be included to assist the contractor in reconcil ing the payment. (2) tof Interest PwltlPs Under Construction Contracts. . . Interest penalties shall be paid as requiredby the contract’s specified payment terms and conditions. If no payment terms are specified in the contract, penalties shall be paid as required by the Prompt Payment Act Amendmentsof 1988, regardless of date of contract award or modification. (a) For construction contracts pay interest on: 1 A progress payment request (including a monthly percentage of completion progress payment or milestone payments for completed phases, increments, or segments of any project) that is approved aspayable by the Department pursuant to paragraph 6e(3) and remains unpaid for: A Aperiod of more than 14days after receipt of the payment request by the designated billing office or h A longer period, specified in the sol I citation, if required to afford the Government apracticable opportune ty to adequately inspect thework andto determine the adequacy of the contractor’s performance under the contract.

Z Any amounts that DOE has retained pursuant toaprtme contract clause providing for retaining a percentage of progress payments otherwise due toa contractor and that preapproved for releaseto the contractor. if such retained amounts are not paid to the con- tractor byadate specified in the contract, or, inthe absenceof such a specified date, bythe30th day after final acceptance. I-39 DOE 2200.6A Paragraph 6h(2)(a)a 1-7-93 ● a Final payments based incompletion and acceptance of all work Including any retained amounts, and payment for partial perfor- mances that have been acceptedly the Department if such payments are made after the later of: a The 30th day from the date on which the designated billing office receives a proper invoice; or D The 30th day after DOE acceptance of the completed workor services. Acceptance shall be deemed to have occurred on the effective date of contract settlement on a final invoice where the payment amountis subject to contract settlement actions. For the purposeof computing interest penalties, acceptance shall be deemed to have occurred on the7th day after workor services are complete in accordance with theterms of the contract. (b) Certification by the prime contractor is not to be construedas final acceptanceof the subcontractor’s performance. (c) DOE shall return any such payment request which is defective tothe contractor within 7days after receipt, with a statement fdentifylng the defects. (d) Acontractor isobllgatedto pay interest to the Government on ● unearned amounts in Its possession from: 1 The 8th day after receipt of funds from DOE until the date the contractor notifies DOE that the performance deficiency has been corrected orthe date the contractor reduces the amount of any subsequent payment requestby an amount equal to the unearned amountin its possession. when the contractor discovers that all or aportion ofa payment received from DOE constitutes a payment for the contractor’s performance that fails to conform to the specifications, terms. and conditions or its contract wfththe agency, under31 U.S.C. 3905(a); or Z The 8th day after the receipt of funds from DOE untfl the date the performance deficiency of a subcontractor is corrected or the date the contractor reduces the amountof any subsequent payment requestby an amount equal to the unearned amount in its posses- sion, when the contractor discovers that all ora portion ofa payment recefved from the agency would constitute apayment for the subcontractor’s performance that fafls toconform to the subcontract agreement and maybe withheld, under 31 U.S.C. 3905(e). 1-40 DOE 2200.6A Paragraph 6h(5)(b) (e) Whenacontractori so bligated to pay interest on unearned amountsto DOE under 3905(a) or 3905(e), as described in paragraph (d) above, the interest shall : 1 Be computed at the rate of average bond equivalent rates of 91-day Treasury bills auctioned at the most recent auction of such bills prior to the date the contractor received the unearned amount: z Be deducted from the next available payment tothe contractor; and 3 Revert to the Treasury. (3) Enaineer C o n _ . Interest penalties shall be paid under Architect Engineer contracts when the provisions of the contract specify that penalties apply. If no penal- ties for late payment of afinal invoice are specified, penalties shall be paid as requiredby the current provisionsof the Prompt Payment Act, as amended. Penalties for late progress payments must bespecifi edinthe contract andas such preestablished as amatter of policy in applicable procurement regulations.

(4) ~.An additional interest penalty equal to IOO%of the original late payment interest penaltyis required to bepaid to contractors under certai n conditions. The additional penalty shall not be greater than $2,500 for twoyears from 1-21-90. after which the addi- tional penalty shall not be greater than $5.000. Regardl essof the amount of the late payment interest penalty, the additional interest penalty paid shall not be less than $25. These additional penalty provisions do not apply to the payment of utility bills. A contractor is entitled to an additional interest penalty when the contractor: (a) Is owed alate payment interest penalty; (b) Receives apayment after the payment due date which does not include the interest penalty due to the contractor: (c) Is not paid the interest penalty by DOEwithin10 days after the date on which the payment is made; (d) Makes awritten requestto DOE for regular interest penal ties aswell as additional interest penalties nolaterthan40 days after the date on which the late payment is made. (5) Not S@ctto Penalti~. . The following payments are not subject to penalties: (a) Interim payments undercoat reimbursement contracts. (b) Progress payments basedon apercentage orstageofcompl etion (other than construction or architect-engineer contracts ). 1-41 DOE 2200.6A Paragraph 6h(5)(c) 1-7-93 (c) (d) (e) (f) (g) (h) (i) (j) (k) Advance payments. Payments made solely for financing purposes. Contracts for utilities (gas, watero electricity) or informal con- tracts for the purchase of utilities that include provisions for late-payment charges establ ishedby tariff or State regulatory commissions. Payments onwhich the interest penalty would belessthan$l. Payments madeto recipients of grants oriFederal assistance. Payments to Federal employees. Payments to Federal agencies. Payments of amounts withheld or deducted from invoicesby the con- tracting officer, approving official, or Field CFO’s, in accordance with contract terms. (Penalties are not applicablebefore the amounts are released. Once the contractis completed and these payments are released, interest penal ties apply. ) Payments delayed because of disagreement over the amountof payment or other issues concerning compliance with the contract. ● i. ~. OMBCircular No. A-125 requi resthat Federal agencies establish aquality control (QC) program to ensure that pay- ments are madein accordance with OMB Circular No. A-125, to providea reliable way to estimate payment performance, andto ensure the integrity of prompt payment reporting. As such, the following guidelines have been establ~shedas standards for the quality control program. (1) WUIWdii. (a) QCmustbe a systematic performance measurement system in place at each Field CFO which will provide managers information about problems and assist in targeting corrective action. (b) QCdatamust be accuratewithin the confidence level of90%witha precision of+or- 10%, (c) Data should be gatheredas frequently asneeded bythe cognizant Field CFO to identify and correct errors, but not less frequently than annually, and if only annually, at the end of each fiscal year. The annual review shall cover the entire preceding fiscal year. Frequent staff turnover, significant increasesor changes in the nature of procurement actions, changing prompt payment requirements, and prior deficiencies are situations requiring more frequent gath- ering of data. If data are gathered more frequently than annually, a

I-42 DOE 2200.6A Paragraph 6i(2)(b)~ for example, quarterly, the data shouldbe gathered basedon avalid statistical sample drawn following each quarter of the fiscal year. (d) QCreviewers must use original documents and repeat original calculations. (e) When atotal review is not possible, data should be gathered on the basis ofa statistically valid sampl esufficient to assure reliabilityof QC reviews without unduly burdening finance office resources. (f) Collection of data must be performed by persons independent from the original payment decision. (g) Analysis of QCdatamustresul tin remedial action targetedto correct objectively determined error causes. (2) Procedures for DepdMaemtal (lual ity Control Proara.m . Field CFO’s shall use the following procedures to performa quality control review. (a) Reviewers shall: Selecta statistically valid random sampleof sufficient sizeto provide a90% confidence level o+or- 10%, that sample data are representative of the overall population. See Attachment I-13for determination of sample size and Attachment I-14 for checklist of items to verify. Gather sample data generated from original documents and repeat original calculations to assess prompt payment performance. Compare data generated from sample to system generated datato determined the accuracy of system generated data. Report findingsto the Field CFO. (b) Field CFO’s shall: 1 Select persons independent of the original payment decisionto perform QC reviews. 2 Determine thecause of any deficiency in payment performance or error in the system generated data. a Implement appropriate action to correct any deficiency or any error causes. A When a significant deficiency or error is discovered (e. g., that payment due date is routinely based on receipt of invoice only), conducta follow-up review of data for the quarter following corrective actionsto ensure deficiency orerror has been I-43 DOE 2200.6A 1-7-93 Paragraph 6i(2)(b)~ eliminated. The follow-up review shall also be performed on the ● basis of avalid statistical sample. S Maintain appropriate documentation related totheforegolng activities. Such documentation shal 1 be made available upon request to the CFO or designee. (1) Field CFO’s shall submit prompt payment reports In the format and atthe frequency determined bythe CFO. At aminimum, the reports shall resub- mitted to the CFO annually to satisfy the reporting requirements contained in OMBCircular A-1250 Prompt Payment, or other requirements that may be imposed byOMB. The reason for significant changes in level of activityor performance from the prior period must be explained in the reports. Refer to DOE2200.8B, Chapter III, “External Reporting,’’ for additional information. (2) Field CFO’sshould use actual data in the reports. However, to minimize the cost of reporting. valid statistical sampling methods maybe usedto derive the required information for reports. The use of statistical sampling methods must be disclosed in the Quality Control Section of the reports. (1) Qwzal. Collection of claims owed the United States by offset is covered in 10 CFRpart1015 and in DOE 2200.6A, FINANCIAL ACCOUNTING, Chapter III, “Receivables.” (2) ies on Behalf of DOE . DOE may request another agency to withhold a payment to a contractor when that contractor owes money to DOE. The other agency will make the payment directly to DOE for credit to the proper DOE field element.

(s) ~. Offsets against employees are covered in DOE 2200.2B, COLLECTION FROM CURRENT AND FORMER EMPLOYEES FOR INDEBTEDNESSTO THE UNITED STATES. (4) Davis-Bacon Act and Contract Work Hours and Safetv St~rds Act . Under the Davis-Bacon Act (40 U.S.C. 276a), the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-332(3)) DOE may withhold amounts otherwise due a contractoras amatter of ensuring that full wages will be paid its employees. Amounts withheld shall be sent to GAO Claims Division witha completed SF-1093, “Scheduleo fWithholdings Under the Davis-Bacon Act and/or the Contract Work Hours and Safety Standards Act,” in duplicate. A schedule of the underpayments withheld, showing names of employees, current addresses, social security numbers, dates and hours ofworko and classifications and rates at which paid, together with any claims received from the employees, shall be attached to SF-1093. GAOis responsible for m I-44 1-7-93 DOE 2200.6A Paragraph 7b(6) paying aggrieved employees amounts towhich they are entitled and for settling claims by contractors based upon amounts withheld. See4GA0. Claims, for additional information. 7. LmmMuwm. a. &neral. Letters of credit areused for cash advances to recipients of finan- cial assistance awards, contractors, and other organizations. A checks-paid letter of credit is used to reimburse contractors for work already performed. Before a letter of credit can be established, authority for advance payments mustbe contained in the financial assistance award, contract, orotherinstru- merit obligating DOE funds. If advance payments are authorized, lettersof credit shall be used whenever the criteria for their use aremet, as determined by the Field CFO. Letters of credit are not generally applicable to loan programs: however, they should reconsidered for applications to loans carry- Ing interest rates that are lower than Department of the Treasury borrowing rates. For additional information, refer to DOE Assistance Regul ations (1OCFR 600), Federal Acquisition Regulations (48 CFRet seq.), ITFM6-2000 and 6-2500, and OMB Circulars A-102 and A-110. (1) (2) (3) (4) (5) (6) The letter of credit shall be the financing method used whenever there is a continuing relationship with a recipient or contractor for at least lyear, involving annual advances aggregatingat least $120,000. Advances shall be limited to the minimum amounts needed and shall betimed to be in accordance with actual and immediate cash disbursement requirements to carry out the approved programor project. The timing and amountof the cash advances shall beas closeas is adminis- tratively feasibleto actual disbursements for direct program costs and for the proportionate share of any allowable indirect costs. Advances may bemade for accrued expenditures, but only to the extent that they represent immediate disbursement needs of theholder of the letterof credit. Each Field CFO shall try to consolidate all advance funding to the same recipient organization under one letter of credit. To achieve this objec- tive. all advance funding to the recipient organization shall be considered. When a contractor receiving cash advances has demonstrated an unwilling- ness or inability to establish procedures that will minimize the time elapsing between cash advances and the disbursement thereof, the DOE Field CFO shall advise the contracting offi certo terminate advance financing unless termination is prohibited by the statutes governing the pro- gram(s). Aletter of credit also may be revoked for other material finan- cial management or administrative deficiencies. Before revokinga letter of credit, the Field CFO, in consultation with the contracting official,

I-45 DOE 2200.6A 1-7-93 Paragraph 7b(6) may reject specific requests for fundsor request the Department of the e Treasury RFCto suspend the letterof credit for aspecific period of time. If these steps do not obtain compliance from the recipient or contractor, then the letter of credit maybe revoked. The recipientor contractor will then be paidon a reimbursement basis. (7) Aletter of credit is a commitment, certified by unauthorized certifying officer, specifying a dollar limit available to a designated payee. Payment on a letter of credit is by delegation of the Departmentof the Treasury at the request of DOE. Aletter of credit is irrevocable (the equivalentof cash available to the recipient or contractor organization) to the extent that the recipient or contractor organization has committed funds in good faith thereunderin accordance with the contractor other agreement. (8) Use of letters of credit shall be covered bya clausein the grant. contract. or other financing agreement. (1) ~-. The Department uses two methods offending organizationsby letters of credit. The first method is the checks-paid letter of credit, which is used to finance major contractors. Contracts authorizing the use of checks-paid letters of credit contain the contract clauses of DOE Acquisition Regulations (DEAR) Subpart 970.32, “ContractF inancing.” Cash withdrawals by this method are determined by the total of checks a issued by the contractor and presented for paymentto the financial insti- tution holding the letter of credit. This type of letterof credit requires a special contract arrangement with DOE, the contractor, and the financial institution. No new checks-paid letters of credit can be issued without the prior approval of the Department of the Treasury. Requests for such approval shall be submitted through the CFO. If the purpose of the checks-paid letterof credit remains the same but DOE changes the finan- cial institution or the contractor, DOE does not need approval from the Department of the Treasury. However, Field CFO’s should coordinate with the Cash Management and Funds Control Branch when there isa changeof contractoror financial institution. More information on this typeof letter of credit is contained in paragraph 7c(4). The second methodof letter-of-credit funding used by the Department enabl es the recipient organization to obtain cash from the Department of the Treasury concur- rently with cash disbursement needs. This is the letter of credit- Treasury Financial Communications System (LOC-TFCS) method. Financial assistance awards or contracts authorizing advance funding that may use LOC-TFCS methods must contain the provisions prescribed at title lO, section 600.112 (“Payment”), of the Codeof Federal Regulations or Federal Acquisition Regulations (FAR) subpart 32.4 (’’Advance Payments”) as amended by48CFR 932.4, “Advance Payments.” Under this methodof funding, the recipient or contractor selects a financial institution to receive SF-5805, “PaymentVoucheron Letter of Credit,” to meet current cash ● I-46 1 - 7 - 9 3 DOE 2200 .6A Paragraph 7c( 2) (c) (2) needs. Detailed instructions for this Ietterof credit type are contained in ITFM6-2000 and 6-2500.

~. The Field CFO issuing letters of creditis responsible for monitoring the cash drawdowns to ensure compliance with Federal cash management principles. This responsibilityis shared with the cognizant procurement and program officials. Funds advancedto others must be kept to the minimum amount necessary tomeet the cash-flow needsof DOE’s portion of the organization ‘liabilities. Cash advances to others should not exceed 3 workdays’ requirements or$l0,000, whicheveris greater. However, to avoid frequent requests, advances should normally be not less than $5,000. Cash needs shall be determinedly the contractor’s orreci- pient’s cash outlay requirements and shall not be based on costs incurred. Documents used to monitor thecash positi onofa recipient of a financial assistance award include SF-269, “Financial Status Report”: SF-272 and SF-272A, “Federal Cash Transactions Report”; SF-271, “Outlay Report and Request for Reimbursement for Construction Programs”: and any other reportof a recipient’s financial activity that may be required for effective cash management. (a) mitorinq. Financial reports required by the terms and conditions of a contract shall be used to monitor advances to the contractor’s cash position. The contractor’s cost reports shall be comparedto the letter-of-credit activity and balanceof Federal cash on hand periodically, but not less frequently than each quarter. This review is to provide assurance that the contract.oris drawing advances in accordance with the terms of the contract and that the contractor is making drawdowns as close as is administratively feasible to the actual disbursements by the recipient organization. Ifthecontrac- torfail s to demonstrate adequate procedures to time letter-of- credit drawdowns with actual cash needs, then the letter of credit shall be revoked. (b) Refunding. If funds are erroneously drawn in excess of a recipient organization’s immediate disbursement needs, the funds should be promptly refunded andrei ssued when needed. The only exceptionsto the requirement for prompt refunding are when the funds involved will be disbursed by the recipient organization within 7calendar daysor when they are less than $10,000 and will be disbursed within 30 calen- dar days. These exceptions to the requirement for prompt refunding should notbe construed by the recipient as approval by the Depart- mentof the Treasury or DOEfora recipient organization to maintain excessive funds. These exceptions are applicable onlyto excessive amounts of funds that are drawn erroneously. (c) interest Income. Any interest income earned by arecipient organize- tionon Federal funds must be promptly refunded unless the recipient is authorized bylaw to keep the interest earned. State governments and instrumentalities of States and their subgrantees are exempted from this policy by the Intergovernmental Cooperation Actof 1968 I-47 DOE 2200.6A 1-7-93 Paragraph 7c(2)(c) (Public Law90-577). Additionally, OMB Circular A-lIO, ’’Grants and ● Agreements with Institutionsof Higher Education,” specifies that recipients shall maintain advances of Federal funds in interest- bearing accounts. Interest earned on these accounts shall be remit- ted at least quarterly to DOE. Up to $lOOof the interest earned per year may be retainedby the recipientto cover administrative expenses.

(d) ~. The letter of credit shall be revoked, and any unused advance shall be returned, when either the contract expires or the workis completed. If additional monies are due after the letterof credit has been revoked, the final payment will be by SF-l1660CR, “Vouchera ndSchedule of Payments.” (3) letter of Credit-Tr~cial Communications Svstem . (a) The LOC-TFCS improves the control of Federal advances made under the letter-of-credit method of financing by providing both preauditsof requests for funds and fixed payment times. The LOC-TFCS also pro- vides timely and accurate accounting and reporting information on Ietter-of-credit transactions. Requirements for establishing and administering aletter of credit are containedin ITFM 6-2000 and 6-2500. (b) Each DOE field element issuing letters of credit hasthefol lowing functions: ● 1 2 3 4 5 Designate certifying offi cers forgetters of credit; Issue the necessary LOC-TFCS documents and procedures to the con- tractor or recipient organization, and forward the completed document to the Department of the Treasury servicing RFC; Ensure examination of requests for funds submitted by the con- tractor or recipient organizations for completeness and correctness; Monitor cash advances to ensure that the recipient or contractor does not maintain excessive balances; and Fulfill accounting and reporting requirements. (c) The Field CFO shall advise the recipient or contractor of the following: 1 That financial institution participation in LOC-TFCS is voluntary, Z The correct preparation and distribution of the various prescribed forms, I-48 1-7-93 DOE 2200.6A Paragraph 7c(3)(e)2d a The requirement that advances of Federal funds be limited to the minimum amounts necessary for the immediate disbursement needsof the recipientor contractor organization, and 4 That a financial institution causin9 the Department of the Trea- sury tomake an erroneous paymentto a recipient or contractor organization’s account shall be liableto the Department of the Treasury for the amount of the erroneous payment and for any interest earned to the extent allowed bylaw. (d) Information regarding parti cipation in the LOC-TFCSPro9ram maybe obtained from the CFO. (e) Review and Processlnu of ReWts for. Funds. 1 meral. When acontractor orrecipi ent requires funds, it submits an SF-5805, “Requestfor Funds,’’ to its financial institu- tion. The financial institution transmits (via the Federal Reserve Communications System) a“Requestf orFunds” (type 1031) message to the Department of the Treasury. Request for Funds roes- sages that pass the Department of the Treasury edits are routedto the DOE office responsibl efor the payment through the Office of Departmental Accounting and Financial Systems Development (CR-40). The Field CFO advises DOE Headquarters of its decision to either payer reject the “Requestfor Funds.” DOE Headquarters shall advise the Department of Treasury, via EFT terminal . of the decision topay or reject. 2 DOE Rwonsibil it ies. Upon receiptof the ’’Request for Funds” message, the Field CFO shall reviewit and ensure the following: A Correct recipient or9anizati0n name. D Payment is not inexcess of the recipient zation’s total available balance for all letter of credit. or contractor organi- awards covered by the

G Third-party information provided is acceptable andinaccor- dance with the requirements ofDOE. If a”llequest for Funds” messageis received containing a minor error in the third party information block. the DOE Field CFO shall make every effort to resolve the error directly with the contractoror recipient and therefore avoid rejecting the ’’Request for Funds’’ message. This will eliminate the administrative burden of requiring the contractor or recipient to complete another SF-5805. “Request for Funds,” and requiring the sending financial institutionto transmit another “Requestfor Funds’’ message. ~ All requi red expenditure reports are properly prepared and received from each organization funded by a letter of credit. I-49 DOE 2200.6A 1-7-93 Paragraph 7c(3)(e)fi e The Federal funds on hand with the organization funded bya ● letter of credit arenot in excess of immediate needs, and payment of the pending request will not result in excess Federal funds on hand. f Any other criteria or measurement that the Field CFO considers applicable in reviewing a “Request for Funds’’ message, provided that the requester has been notified ofthese criteria. A If the ’’Request for Funds” message is to be rejected, the DOE Field CFO should advise the Office of Departmental Accounting and Financial Systems Developmental soon as possible after the decision ismade to reject the request so that the office can enter the rejection into the Department of the Treasury system. Rejections preprocessed by the LOC-TFCS immediately, and prompt responses will avoid making recipients wait additional time for funds. The Field CFO should ensure that responses are processed as soon as possible, but not later than the Depart- mentof the Treasury established cutoff time, whichis 2:00 p.m., eastern time, on the workday following the dateof receipt of the “Request for Funds-message by DOE Headquarters. To ensure timely and proper processing, Field CFO’s should tim their responses tobe received by the Office of Departmental * Accounting and Financial Systems Developmentby noon, eastern time, of the workday after the date of the ”Request for Funds” message. If the Departmentof the Treasury isnot notifiedof DOE’s decision, the ’’Request for Funds’’ will bepaid bythe LOC-TFCS automatic pay function. Ifthe ’’Request for Funds’’ message is rejected by the Depart- mentof the Treasury due to the transmission of incorrect information by the sending financial institution but the information has been provided correctly by the requesting organizationon the SF-5805. “Requestfor Funds, ’’the sending financial institution shall be notified by the cognizant DOE Field CFOto obtain the proper information and transmita correct ’’Request for Funds’’ messageas soon as possible. G The contractor’s or recipient’ s financial institutionis responsible for notifying the contractor or recipient of the rejection and the reason(s) for the rejection. Al r)roval of Me=. If the ’’Request for Funds’’ messageis approved for payment by DOE, atype/subtype 1032 message, “Funds Transfer Honoring aRequest for Funds,”is generated onthe workday following receipt of the original message unless itisto be paid on the same day (see paragraph 7c(3) (h)). ● 1-50 1-7-93 OOE 2200.6A Paragraph 7c(3)(i)l (f) (g) (h) (i)

Automatic Pav Function. If DOE does not entera pay orrejectdeci- sion into LOC-TFCS prior tothe2:O0 p.m., eastern time. cutoff, the Department of the Treasury’s LOC-TFCS systemis programmed to pay all outstanding “Request for Funds’’ messages that were received on the prior business day. If the Field CFO wants this automatic function delayed inorder tomake abetter decision on aparticular ’’Request for Funds,” there are two actions that must be taken. First, the Office of Departmental Accounting and Financial Systems Development must renotified of the desireto delay the automatic payment func- tion. The Office will contact the Department of the Treasury and request accomplishment of the Field CFO’s request. The Field CFO, with approval of the RFC, may telecopy the request for the delay and mail the original to the RFCon the same day. The request mustbe signed by an authorized certifying officer. The automatic pay func- tioncan only be delayed for short periods of time by the Department of the Treasury. Field CFO’s are not encouraged to request delaysof the automatic pay function except in emergencies. Ifa paymentis made by the automatic pay function and the Field CFO realizes thatit should have been rejected, the Field CFO authorizing the payment is responsible for recovery of the funds. Any resulting excess balances shall be recoveredby the cognizant Field CFO. ncv Pavme nt. Ifthe Field CFO determines that an organization has an emergency need for funds, the Field CFO shall advise theser- vicing RFC accordingly. Depending on the circumstances, the RFCmay initiate emergency procedures to expedite processing ofa ”Request for Funds’’ message, or payment maybe made outside the LOC-TFCS. Payment outside the LOC-TFCS is accomplished by the submission ofan SF-11660CR, “Vouchera ndSchedule of Payments,’’ for FEDWIRE payment completed in accordance with ITFM 4-2500. Either the letterof credit mustbe amended to decrease the authorized balance by the amount of the SF-l166 OCR payment or the amount of the SF-l1660CR payment may beoffsetagai nsta pending increase in the authorized balance of the letter of credit. - Dav Pavment . Same-day payment, such as checks-paid withdrawals of cash from the Department of the Treasury. is an exception tostan- dard procedures for the LOC-TFCS. Same-day payment shall be limited to activity where itwill provide clear benefits to the requesting organization ortothe Federal Government. The Departmentof the Treasury must give its prior approval for same-day-payment requests. s Federal Funds Held bvLf&ter of Credit Recipients or Contrac- m. 1 Each Field CFO shall instruct organizations funded by letters of creditto return excess Federal funds, in accordance with DOE instructions, and redraw funds when needed. Federal cash heldby recipients should not exceed $10,000 or the amount required for the next 3 workdays’ disbursements. whichever is greater. 1-51 DOE 2200.6A 1-7-93 Paragraph 7c(3)(i)~ 2 In addition to refunding excess funds, any interest income earned ● by an organization on Federal funds shall be promptly refunded to DOE as provided by the terms of the award instrument. Field CFO’s shall deposit the portion of the amount refunded that represents the initial advance to the appropriation or fund account charged with the advance. The portion that represents interest income should redeposited into the Departmentof the Treasuryss receipt account 89X1435 General Fund, Propriety Interest, Not Otherwise Classified, or such other accountas specifically authorized by law. These transactions shall be reported on the regular SF-224, “Statement of Transactions .“

(j) If a financial institution causes the Department of the Treasuryto make an erroneous payment toan account ofan organization funded bya letter of credit, the financial institution shall beliable tothe Department of the Treasury for the amount of the erroneous payment andfora penalty. The penalty shall be calculated at the applicable Federal Funds Rate and shall be due for the entire period that the erroneous payment remains outstanding. (4) terof Credit-Federal Reserve Bati Svsw . (a) ~ral. The LOC-FRB system is limited to the checks-paid method, under which a financial institution is selected to drawon the letter of credit. The drawdowns are delayed until the checks issued by the contractor organization are presented to the selected financial ● institution for payment. Theamount of the drawdown shouldbe suffi- cient to maintain the contractor’s account balance as close to zero as administratively possi ble. Subsidiary checking accounts, such as payroll, will not be prefunded but will be included in the drawdownto cover checks cleared against the main account. The DOE Field CFO shall record drawdowns as of the dates paid. Payment vouchers shall be accumulated and used for monthly reconcile ationwith the Depart- mentof the Treasury. Restoration of the financi al institution’s reserve account is accomplishedon thesame dayby drawing on the account of the FRBthat services the letter of credit. Under the checks-paid letterof credit method, the financial institution is compensated for services performed by the most cost-effective method available as determinedly DOE and the contractor. (b) tsand Procwres for Mwina LOC-FR13 . 1 ~. Detailed requirements for establishing aletterof credit under the LOC-FRB system are contained in ITFM 6-2000. The following paragraphs summarize the principal steps followedto setup and manage checks-paid LOC-FRB’S. 2 Proc_. When the contracting officer has determined that the recipient organization is eligible for advance financing and the Field CFO has determined that a checks-paid Ietterof creditis o I-52 1-7-93 DOE 2200 .6A Paragraph 7c(4) (b)& appropriate, the Field CFO shal 1 work with the cognizant procure- merit official and the contractor to establish the letterof credit. The Field CFOwill provide the contractor with the infer- mation required to survey eligible financial institutions for interest in supporting the contractor’s letter of credit. DOE requires that financial institutions be within the same banker branch territory of a given Federal Reserve district as the con- tractor, recovered by the appropriate deposit insurance, and post collateral in accordance with Department of the Treasury regula- tions governing securing of Government accounts. On completionof the survey, the contractor shall be asked to provide alistofsug- gested bidders to the procurement officer. The procurement officer shall solicit bids from eligible institutions and, with theadvice of the Field CFO and the contractor, competitively selecta financial institution to support the contractor’s letter of credit. Acopyof the special bank account agreement signedby all parties shall be delivered to the Field CFO sothata letterof credit maybe established. Refer to Attachment 1-11 fora sample ofa special bank account agreement. A Prior to soliciting bids from financial institutions for their services, the following actions must recompleted:

i The contractor, with the Field CFO’s assistance, shall complete the “Scheduleof Financial Institution Processing Charges’’ form (Attachment I-7) by typing inthecontrac- tor’s name and the projected monthly quantities forser- vices that the institution will be required to provide. Use of this form will standardize the basis on which the institutions will bid. U When the time deposit method is selected, the Treasury Tax and Loan (TT&L) Rate shall be used for calculating the amount of the non-interest-bearing time deposit tobe placed with the financial institution (Attachment I-8). h The procurement officer shal 1 determine themethod tobe used in soliciting bids. Soliciting forbids shall bedone by the cognizant procurement officein accord with acquisition regulations. c Samples ofmaterials tobe included in thesolicitati on are Attachments I-7 through 1-12. The information containedin Attachments I-9 through I-llmay not be comprehensive and can be modified to include applicable cash management provisions contained in paragraph 7c(2) and any other warranted provi- sions. Generally, if specific requirements are not spelled out inthecontracto then the financial institution cannot be required to perform. However, there is one clear exception to this rule. Under checks-paid letters of credit the funds and I-53 DOE 2200.6A 1-7-93 Paragraph 7c(4)(b)Z the accounts held under theac!reements belong to the Government ● and will be collateralized in-accord with Department of the Treasury regulations, specifically, Department of the Trea- sury Circular 176and ITFM 6-9000. Field CFO and procurement offices shall revise current agreements as they are completed or renewed to include applicable cash management provisions contained in paragraph 7c(4)(h). (c) ~. Most financial institutions require compensation for services provided under checks-paid letters of credit. The financial institution will be compensated for its services based on the fees charged for those services. Itmaybecom- pensatedby adirect payment of the amount of the fees and those costs would rechargeable as program costs, or it maybe compensated by the placement of anon-interest-bearing time deposit, which ltcan invest. The earnings on that investment would be the financial institution’s compensation. The financial institution will notbe allowed to hold balances in the checks-paid letter of credit accounts (often referred teas ‘%hecontractor’sb ank accounts”). If DOE finds that the institution is holding balances in these accounts. the Institution will be required tofully collateral ize those balances. Prior approval bythe CFOis required for the useof any other formof compensation. 1 The compensation method selected shall always be themost cost- ● effective, taking into consideration thecost ofmoney to the Department of the Treasury and the administrative costs of monitoring the method selected. 2 Under the direct payment method, the financial institution submits amonthly invoice to the contractor’s office. The invoice will show amounts duein accordance with the per item costs specl- fiedonthe ”Scheduleof Financial Institution Processing Charges” (Attachment I-7), and for any interest charges on account overdrafts. The financial institution is compensated by a check drawn on therecipient’s account in the financial institution.

3 Under the time deposit method, the financial institution receives a non-interest-bearing time deposit sufficientto generate income for the financial institution equal to its annual service charges. These service charges are based upon annual volumes of account activity and the per item costas stated on the “Scheduleof Finan- cial Institution Processing Charges” (Attachment I-7). Specific Instructions for determining the proper time deposit balance can be found in the ”Calculation of Time Account Balance Required” form (Attachment I-8). The time account shal 1 be established before the first drawdown on the letter of credit. All Government funds in a financial institution must be protected against loss. This includes time deposi tsplaced with theinstituti onascompen- sation for services and positive balances that occur in the demand ● I-54 1-7-93 DOE 2200 .6A Paragraph 7c(4) (e)lg accounts from time to time. For each relationship that exists, the total balance held by the institution wil 1 be the amount that is to be collateralized, less the amountof the approved insurance. Deposits in approved financi al institutions are coveredby Federal or federally approved insurance uptoa set limit. Amounts Inexcess of the insurance limits must be securedby collateral pledged with an FRB. The Treasury Financial Manual ( I TFM 6-9000) describes the collateralizati on procedure. (d) Use of Financial Institutions Tha . tDo Not Maintain anAcco@ atthe mral Reserve. If the selected financial institution doesnot maintain an account at the Federal Reserve, the funds drawn are deposited to the recipient’s financial institution througha corre- spondent that maintains an account at the FRB. As funds are required under the checks-paid method, the financial institution or the FRB will prepare and process the TFS-5401. (e) Tel@onicor Wire Met~. The telephonicor wire method maybe used in those cases where afin~ncial institution operating a checks-paid letter of credit is located outsidea Federal Reserve city and cannot forward the TFS-5401 to the FRB before the FRBcutoff time for same-day payment. Ifdrawdownson the letter of credit will bemade through either thetelephoni corthe wire method, the letterof credit mustbe sent to the Department of the Treasury undera separate cover. rather than as a regular letter of credit. The steps inpara- graphs 7c(4)(b)l and zmustbe followedto ensure that thetelephoni c or wire method is properly approved and established. 1 When it is determined that the telephonic or wire method will be used, the DOE Field CFO shall submit awritten request to the Department of the Treasury approximately lmonth before the desired implementation date. The request should include the following: A Name and address of the recipient organization. b Name and address of the financial institution selectedto provide the services, G Name and telephone number of acontact at the selected financial institution, ~ Letter of credit number, R Proposed date ofimplementati on, f Proposed method of notification (wire or telephonic), and g Name of the appropriate FRB or Federal Reserve branch. 1-55 DOE 2200.6A 1-7-93 Paragraph 7c(4)(e)Z z The Department of the Treasury will obtain the Federal Reserve ● approval and notify the DOE Element of the following: d That approval has been granted, h The date on which the letter of credit can be implemented ,and c The name and address of the person at theapproprlate FRBor Federal Reserve branch who is designatedto receive the blank TFS-5401’s from DOE.

(f) Monitoring Chwks paid I etters of Cred. it. The Field CFO shall estab- Iish procedures that will result ina review of each checks-paid letter of credit account at least quarterly. Minimally, the review shall entail an analysis of the account statements to determine whether the accounts are being operated by the financial Institution correctly, whether the financial institution is being properly and adequately compensated in accord with the agreement, and whether the financial institution is maintaining the level of collateral commen- surate with the account balances. Overdrafts and excess balances shall bedealt withas detailed below; however, the primary consider- ation inthls process is to ensure that the financi al institution is paid for the services performed; that account balances aremi ni- mized; and thatif account balances are over the prescribed insurance limit, they are properly collateral ized. ● (9) ~. Although drawdowns under achecks- paid letter of credit are made with the intent of maintaining the cash balance in the hands of the recipient as close to zeroas administra- tively feasible, overdrafts andexcessbal ances may occur. In such cases, the procedures below shouldbe followed. 1 mpected Overdrafts. On the first business day followingan overdraft, the financial institution will draw down an amount equal tothenet sumof the overdraft, offsetby any receipts. 2 ~. If overdrafts frequently occur in an account or are expected to occur due to checks clearing after the established cutoff time for clearing checks. the DOE Field CFO. with the approval of theCFO, shall consider prefunding the account. Under the prefunding concept, the Field CFO requires the financial institution to estimate the average dollar valueof checks presented each day that the financial institution cannot clear in time tomakea letterof credit drawdown. The financial institution is allowed to adjust each drawdownby thepredeter- mined estimated amount plus any negative account balance or minus any positive account balance from the previous day. 3 &ess Balm. An excess balance inan account results whena financial institution makes adrawdown from the letter of credit ● I-56 DOE 2200.6A Paragraph 7c(4)(h).Z for more money than is needed to cover the netof the receipts and disbursements for the day against the contractor’ saccount. Gen- erally, this excess balanceis netted against the next business day’sactivity in the account, and the long-term effect is that the account remains atoras closeas administratively possible toa zero balance. Excess balances are generally considered when the Fteld CFO performs the monthly or quarterly account analyses to determine whether the financial institution is being properly compensated for the services performed. If the institutionis being paid ona fee basis, the excess account balances shouldbe refunded to the Department. The refund shall be made to the Field CFObycheck made payable to the Department of Energy. The finan- cial institution also shall pay a penal ty to compensate the Federal Government for the loss of availabilityof funds. Ifthe institution caused the positi veaccount balance and appears notto have made an effort to clear the balance out, the Federal Funds Rate shall be used to determine the amount of the penalty. Ifthe balances are generally routine in nature, then the TT&L Rate shall beused. In either instance, the refund shall be credited to the appropriation or fund account from which the funds originally came. The penalty amount shall be credited to account 89X1435, General Fund, Proprietary Interest. Not Otherwise Classified. or to another account specifi callyauthorized by the Departmentof the Treasury. The Field CFO shall amend the letter of credit to make the refund, but not the interest, available for future program disbursements.

(h) ~. Monthly, the financial institution calcu- latesthe average daily balance for the account netof the time deposit. This calculation shall be used as the basis for determining recovery on excess balances and, inapplicable, interest charges on account overdrafts. 1 Overdrafts. The financial institution may wantto be compensated for overdrafts that occur aspart of the normal operation ofa checks-paid letterof credit. When interest on overdrafts is paid, it is computed monthly, using the average TT&L Rate for the period of occurrence. If the calculated average daily balance for the month is negative. the financial institution, under the direct payment method, bills the recipient organization for an amount equal to the average daily balance times the applicable TT&L Rate divided by12. Under the time deposit method, the financial insti- tution provides this computation to the recipient organization, but no adjustment is made until the quarterly reviewof the time deposit. Z Wess Balances. Whenever the average daily balance for the month, as calculated in paragraph 7c(4)(g)3, results in a positive balance, the financial institution compensates DOE forthe lossof availabilityof funds. The amount calculatedis remitted to the I-57 DOE 2200.6A Paragraph 7c(4)(h)~ 1-7-93 ● I-58 Field CFOmonthly and deposited into the Department of the Trea- – sury’s receipt account 89X1435, General Fund, Proprietary Inter- est, Not Otherwise Classified, or such other account specifically authorizedby statute. All letter of credit agreements shall contain a provision for compensation resulting from loss ofavall - ability of funds to the Government because of excess balances held by the financial institution. Ifthefinanclal institution hadno control over the positive balance. the financial Institution will compensate DOE for theloss of the availabilityof funds by multi- plying the average daily balance for the month bythe TT&L Rate divided by12. If the financial institution caused the positive account balanceo it shall pay a penalty determined by multiplying the excess fund balance by the Federal Funds Rate adjusted for the proper period oftime. (5) ~. Standard forms prescribed for use under the Federal Reserve Bank System are available fromGSA stores. The TFS forms are available from the Departmentof the Treasury. Instructions for completing the required forms are containedin ITFM6-2000 and 6-2500. In accordance with ITFM6-2000 and 6-2500, forms shall be manually signed, as required, by authorized individuals. (a) QL!s. Overprinting of the DOEservi cingoffice’s name, ALC, and other recurring information on the prescribed forms is permitted. Other changesor modifications to the prescribed forms ● require prior approval of theCFO and the Department of the Treasury. (b) tofthe Treasurv Mailina Address~ Refer to ITFM 6-2500, appendix7. for the address of the Department”of the Treasury RFC processing letters of credit under the LOC-TFCS system for the region. All forms used in the LOC-FRB system shall bemailed to the following address: Letter of Credit Section Washington Regional Financial Center U.S. Treasury-FMS P.O. Box 37214 Washington, DC 20013 The street address for messenger pickup and deliveryof letter-of-credit documents is: 441 GStreet, NW Receiving 3251A General Accounting Office (GAO) Bldg. Washington, DC 20013 (6) Closeout of a Letter ofCredi~. When the balanceof the letter of credit has been completely withdrawn, the DOE Field CFO shall request the ●

1-7-93 DOE 2200.6A Paragraph 8a(4) Department of the Treasury to revoke the letter of credit. The request should be by memorandumor a letter signedby a certifying officer and forwarded tothe Department of the Treasury. (7) ~ortinu ~irem~ Each Field CFO shall record expenditures from the third copy ofeach TFSF~rm 5401, “PaymentVoucheron Letter of Credit,” received from the Department of the Treasury as of the date paid and from the copy of the type/subtype 1031 Message, “Request for Funds,’’ faxed from the Office of Departmental Accounting and Financial Systems Development based upon each SF-5805, “Requestf orFunds.” (Note that TFSform !5401is used to initiate withdrawals for an LOC-FRB.) These documents are used for reporting monthly letter of credit activityon the SF-224, “Statementof Transactions.” Aseparate SF-224 is required forgetter of credit activity of each ALC. 8. MMXIMRS. a. .MmduWn. (1) Accountability and control of cashier advances and imprest fund opera- tions were transferred from the Department of the Treasuryto Federal agencies pursuant to the Department of the Treasury Bulletin 84-21, dated 9-10-84. The transfer from the Department of the Treasury did not include authority to delegate cash disbursement authority to individual cashiers. Therefore, DOE-recommended cashier and alternate appointments and changes still must be approved by the Department of the Treasury. (2) As aresult of this transfer, DOE has direct responsibil ity for ensuring the proper use of cashier advances and establishing procedures to govern imprest fund activities. DOE must continue to effectively manage imprest funds because: (a) Cashier advances are now charged to DOE’s appropriated funds and thereby bring such advances under DOE and OMB guidelines that control appropriations. (b) DOE now has authorityto approve changes in imprest fund amounts and the numbers of funds being operated. (3) All DOE imprest funds operate under 31 U.S.C. section 3321 (formerly Executive Order 6166) and the policies and procedures contained in the Department of the Treasury Manual of Procedures and Instructions for Cashiers, dated 7-85. (4) Each imprestfundis acash fund in the form of currency. coin, or Govern- merit check. The amount of each fund has been charged toa DOEappropria- tion account. The fund is advancedby an authorized DOE official toa properly designated cashier forsaking cash disbursementsas specifically authorized. The fund may beofa revolving nature and replenished to the fixed amountas spent or used, oritmaybe ofa statutory natureo suchasa I-59 DOE 2200.6A Paragraph 8a(4) 1-7-93 ● change-making fund. The use ofmoney orders. designated charge cards, traveler’s checks. and third-party drafts must have prior approval from theCFO. (5) There are several categories ofcashfers. Each is fully descrlbed’fn Department of the Treasury Manual of Procedures and Instructions for Cashiers. b. Authorization ~. the (1) As stated above, the Department of the Treasury retains delegation author- ity for individual cashiers. All appointments and changes of principal and alternate cashiers mustbe approved by the Department of the Treasury. (2) Departmental offic~als delegated the authority to recommend cashiers must be so designated on a properly executed TFS 2958, “Delegationof Authority.”

(3) Departmental officials will recommend principal and alternate cashier designations, revocations, class changes, and other changes tothecogni- zant Department of the Treasury disbursing officers on a properly executed SF-211, “Requestf orChange or Establishmentof Imprest Fund.” Department of the Treasury disbursing officers will take action on the request and return appropriate copies of the form to DOE. Departmental officials will then submita copy of the accomplished SF-211 to the Cash Management and ● Funds Control Branch (CR-433). c. ln~ina Authorized Bal w . Each Field CFO must review the size of each imprest fund under his or her control at least once every 6 months. Based on reviews and analyses of monthly reporting and related operating data, Field CFO’s shall approve or disapprove requests to change imprest fund balances. (1) When imprest funds are increased. decreased, established, or abolished. the following procedures apply: (a) Acopyof the completed SF-211, “Requestf orChange or Establishment of Imprest Fund,” shall be sent to the Cash Management and Funds Control Branch toadvise itof the change in the fund. (b) If the change is to increase or establish anadvance, an SF-11660CR, “Voucher and Schedule of Payments,’’ shall be submitted tothe servicing RFC. (c) If the change is to decrease or abolish theadvance, the amount of the reduction may be deposited into the Department of the Treasury and credited to the appropriate accountor the reduction maybe effected by not replenishing the fund by that amount. ● 1-60 DOE 2200.6A P a r a g r a p h e d (2) The accountinci entries refl ectinqa change or establishment ofan imprest.—. fund shal 1 be ;ade in accordance ~ith DOE- 2200. lOA, ILLUSTRATIVE ENTRIES. d. ~. (1) ~. To maintain an ACCOUNTS, CODES, AND imprestfund atan authorized amount, replenishments must be madeon a periodic basis. The principal cashier may submitan SF-1129, “ReimbursementV oucher,” tothe designated certifying offici al, who shall prepare an SF-l166 or another appropriate voucher for submission to the RFCto replenish the fund. Reimbursements accomplished by magnetic tape shall proceed as directed by the Department of the Treasury. (2) Maaina Cati. Cashiers shall monitor the use of the fund to ensure that cash balances are maintained at the minimum levels needed tomeetoperat- ing requirements. Cashiers shall request replenishments in accordance with these demands. (a) Size of Re?l enl shmMQux&i . . Replenishment checks shouldbe requested for the smallest amounts practical to minimize the amount of cashon hand needed to meet normal requirements. (b) flu?ck-b.s-bina Fees . Before paying afeetoa local financial insti- tution for cashing a Department of the Treasury check. the cashier shall make every effort tohave the check cashed without a fee. Long-term arrangements to cash replenishment checks fee free should be made whenever possible. If paying check-cashing fees cannotbe avoided, they maybe paid from imprest funds. These funds mustbe reasonable and customary for the cashier’s geographical area. Fees paid should be supported as follows: 1 Prepare an SF-1165, “Receiptf orCash–Subvoucher, “oranequiva- Ient receiptin duplicate, describing the official check and its purpose. Z Have unofficial of the financial institution sign the original receipt and affix the bank’s “paid’’s tamp at the time of payment of the fee. 3 Retain the original receipt with the other imprest fund recefpts.

4 Include the feeln the next routine replenishment transaction. (c) ~. Replenishment checks should not beheld formorethan90 days without an assessment by the finance officeras to the continued need for the imprest funds represented bythe unnegotiated checks. Uncashed checks returned to thellepartment of the Treasury shall be endorsed tothe order of ’’Department of Energy, ’’not Department of the Treasury, since such funds have been 1-61 DOE 2200.6A 1-7-93 P a r a g r a p h e d e. f. chargedto a DOE appropriation. These checks shall be deposited with an SF-215, “DepositTicket.” to the appropriate eight-digit ALC. ina Facilities for Cm . Imprest fund assets, especially cash, require absolute security. Field CFO’sor designees shall ensure that adequate physical facilities and internal controls are provided for safekeepingof imprest fund assets. The cashier must maintain exclusive control of the fund, regardless of the safekeeping facilities provided. The Department of the Treasury Manual of Procedures and Instructions for Cashiers provides additional guidanceon safekeeping facilities for imprest funds. . (1) (2) (3) Perscmd L1 abil Itv . . Each cashieris personally liable (legally respon- sible) for all Government money coming into his or her possession and is obligated to faithful ly perform his or her duties. Ruration of Liabilitv . The cashier’s liability for the funds advanced continues from the time the cashier receives the funds until proper and acceptable accounting thereforis made, eitherto the officer who advanced the funds or to another officer directed to receive the accounting for the advance. ibllities. . (a) Each cashier is required by public lawtodothefol lowing: 1 Keep all imprest funds inhis or her possession safe and separate from all other funds (commingling of personal or other money with imprest funds is prohibited): 2 Respond faithfully and promptly to official orders to transferor payout funds; 3 Perform all other duties as afiscal agent of the Governmental specified bylaw, DOE guidelines. or overall guidance fssued by the Department of the Treasury: and 4 Report all facts immediately tohis or her supervisor in the event of a loss, shortage, or theft of imprest or other official funds. (b) For cash payments under the On-the-Spot Monetary Recognition Awards program (Spot Awards), the cashier irresponsible for the following: 1 Confirming that the individual presenting the utility copy of the SF50, “Notification of Personnel Action,” is the individual pictured onthe DOE badge: I-62 1-7-93 Z Recording the DOE badge ture, and verifying the badge; DOE 2200 .6A Paragraph 8g( 1) number. obtaining the individuals si gna - signature against the signatureon the DOE a Ensuring that payment is based upon the utility copy ofan approved SF 50 which includes the following code in block 5-E: “91F.” In addition, the following le9end must be included in block 5-F: “DOE 3450. 1A ON THE SPOT TO BE PAID FROM IMPREST FUND;” A Ensuring that payment isnot made prior to the effective date shown in block 40fthe SF50; s Paying spot awards in the gross amount. but ensuring that an award in excess of the maximum amount payable isnot paid; and Q Retaining the utility copyof the SF 50 as documentation of payment. (c) Cashiers are not permittedto do the following: 1 Loan official funds; Z Use funds for their own purposes; 3 Deposit public moneyin financial institutions. except where authorizedto do so;

A Exchange personal or other money with other funds unless authorized todo so: s Place subcashier funds and the principal fund inthe same safe without appropriate safeguards; or Q Allow unauthorized access to the key or combination of the safe(s) containing imprest funds. 9. Transfer of Cash Betww Cashiers and&Jaieen Fmplovees and Gjishiers . (1) ~.When a principal cashier leaves theposi- tion, the official designated to appoint cashiers shall request the Department of the Treasury to designatea new principal cashier. using SF-211. “Requestf orChange or Establishment of Imprest Fund.” Funds then must retransferred to the new principal cashier. The change may take place withouta response from the Department of the Treasury. If anew principal is not available immediately, the advance maybe transferredto an alternate until a principal cashieris designated by the Departmentof the Treasury. However, if there is no alternate, the funds mustbe returned, bymeans of SF-215, “Deposit Ticket,” to the appropriation from which they were advanced. Subcashiers are not authorizedto act as cashiers or their alternates. I-63 DOE 2200.6A 1-7-93 Paragraph 8g(2) (2) Transfer ofFuW. Atransfer offunds is achieved bythe outgoing princ~- pal cashier transferring the uncashed advances, replenishment checks, and cash to the incoming principal cashier. The ongoing principal cashier shall use SF-11290 “Reimbursement Vouchero” or another appropriate voucher for this purpose, typing “TRANSFEROF FUNDS” across the topof the form. An audit of the imprest fund must reconducted whenever therels a change from one cashier to another. This audit must include advances to alternates or subcashiers. If a discrepancy is found while accounting for the funds of the alternate or subcashier, the discrepancy shall be notedon the SF-11290r other appropriate voucher, to record the transfer pending clearance action. (3) ~. (a) Aprinclpal cashiermay make an advance to an alternate cashier. The purpose of this advance Is to permit uninterrupted disbursing service during short absences of the cashier or when the volumeof work requires the services of the alternate. The advance shall be limited to cover only the estimated absence of the cashier. The alternate shall sign an SF-1165. “Receipt for Cash-Subvoucher,” or equivalent receipt for the amount of the advance. The principal cashier shall retain this receipt to account for the full amountof the fund. (b) In instances of unforeseen absence of the principal cashierwhen ● funds cannot be advanced to the alternate, a committee of three persons, oneofwhom is the alternate cashier and the others desig- natedby the individual authorizedto appoint cashiers or the Field CFOoradesigneeo shall accompl ish the advance, using the procedures prescribed in paragraph 8g(3)(a). Each committee member shall sign the transfer. (4) A.Wa.nces for SuM3inds. Class Bor Dcashiers may make advances to sub- cashiers for disbursing purposes (class B) or change-making purposes (class D). The cashier shall ensure that the subcashier towhom the advance is made signs a receipt (SF-1165). (5) AdamfLsJxLEIIDloveEs. Funds may be advancedto an employee foran approved purpose upon execution ofa properly prepared SF-11650r other suitable receipt form. h. ts. Spot Wds. and AdvanceS . (1) Payments from imprest funds can be made for select types ofsmall purchases (including travel advances).

(2) Small purchases must be in accordance with the principles, standards, and related requirements containedin the Federal Acquisition Regulations and any supplemental DOE regulations. The Departmentof the Treasury Manual a 1-64 1-7-93 DOE 2200.6A Paragraph 8i(2)(e) -i. (3) (4) (5) (6) of Procedures and Instructions for Cashiers provides guidance for purchases that maybe paid through imprest funds. Each payment made shall besupported bya receipt. Cashiers mustbe able to account for the full amount of funds being held at any given time. Funds may consistof cash, uncashed Government checks, sales slips, invoices, or other receipts for cash entrusted to other Individual s for specific purposes. Routine cash disbursements cannot exceed $500 for each transaction. Written requests for waivers ofthls limit must resubmitted in advanceto theCFO. Field CFO’s may approve an emergency one-time exception fora single transaction. For limitations on cash disbursements for the Spot Awards program refer to DOE3450.lA, INCENTIVE AWARDS. Unless specific authorization has been obtained from the Departmentof the Treasury, imprest funds cannot be used to make cash payments for personal services. salary, or benefit purposes. If such authorization has been granted, disbursements must be in accordance with the conditions establishedby the Department of the Treasury. The Department of the Treasury has granted DOE specific authority tomake cash payments from imprest funds for the Department’s Spot Award Program. No other performance award may be paid from imprest funds. Acawntabilitv Reports and Verification of Funds . (1) ~. Each principal cashier must submitan account- ability report as prescribed by the Department of the Treasury Manual of Procedures and Instructions for Cashiers. (2) ~. The office of DePartMental Accounting and Financial Systems Development. for Headquarters, and Field CFO’S, for field elements, shall analyze each accountability report received. The results of the analysis should be used to determine whether changes in the size or managementof the fund are necessary. The analysis shall examine the following: (a) Average weekly disbursements: (b) Average weekly cash on hand. first excluding and then including uncashed checks; (c) Ratio of avera9e weekly disbursements to cash on hand (and uncashed checks, where appropriate); (d) Peak disbursement periods (if any); and (e) Frequency of replenishments. I-65 DOE 2200.6A 1-7-93 Paragraph 8i(3) 9. (3) l!erlfl~. F~nanc~al verifications are necessary to ensure compli- ance with appropriate regulations and to maintain propriety and integrity In lmprest fund operations. (a) In addftfon to the independent review by the Office of Departmental Accounting and Financial Systems Development orthe Field CFOo the individual authorized to appoint cashiers or the Field CFOora designee shall monitor imprest fund operations to ensure that funds advanced are notexcesslve and are commensurate with operating needs. This assurance should be reestablished at least every 6 months. If the Field CFOordesi gneefinds that an excessive amount of cash is being maintained orthat the need for the fund no longer exists. heor she shall take action to have the fund reduced toa level equal to operating needs or tohave the fund abolished. (b) At least once each fiscal quarter, unannounced verifi cations of the cash balances in all respective imprest funds, including amounts held by subcashiers, shall be conducted by qualified persons appointed by the Field CFO.

(c) At least once ayear, unannounced audits offund operations shall be conducted (records or reports generated from the audits shall be retained inthe imprest fund files and made available, if requested, tothe CFO orthe Office of the Inspector General (IG-1)), toverlfy that: a 1 2 3 4 5 All funds are properly accounted for. The amount of the fund isnot in excess of cash requirements, Procedures being followed will adequately protect the funds from loss or misuse, No unauthorized use is being made of the funds, and Appropriate Department of the Treasury and DOE Dolicies and procedures are”being followed. - ‘ (4) ?ortina Irregularities and Missina or Lost F& Instances ofirregu- larities or missing or lost funds shall be reported’in accordance with the Department of the Treasury Manual of Procedures and Instructions for Cashiers. At aminimum, the individual authorized to appoint cashiers shall be advised of such irregularities. YU.U4S. Special deposft funds are combined receipt and reimburse- merit accounts establishedto account for receipts heldin suspense temporarily and later refundedor paid into some other fund of the Government, or held bythe Gov- ernmentas banker or agent for others and paid out at the direction of the fund cus- todianfor purposes authorized bylaw. Additional guidance for special deposit o funds is found in Chapter IX, “ReimbursableWork, Revenues, and Other Collections.” I-66 DOE 2200.6A Attachment I-1 1-7-93 c!) AL CERWICATION ~ AGENCY QUESTIONS SELF-CERTIFICATION CASH MANAGEMENT PRACTICES 1. On the listed cash flows, have any flows been added, replaced, or combined? 2. 3. YES % o % ~: sUbmit new cash flow reports and pipelin f these flo . Have any flows been deleted? Q Q YES NO u: Indicate cash flow um e ) st ereason(s) for deletion: Have anyoftheljs b% lows incr se o decreased byzs%jn dollars or volume? YES % b NO LUU: s w sh flow reports and pipelines for these flows. Page I-67 OOE 2200.6A Attachment 1-1 AN fWILEEXllEUAJION DOC W 1-7-93 AGENCY CERTIFICATION SELF-CERTIFICATION CASH MANAGEMENT PRACTICES DEPARTMENT OF ENERGY accurate to the best ofmy knowledge. SIGNATURE OFCASH MANAGEMENT OFFICIAL PRINT NAME TITLE <Q’) AGENCY— v PHONE# DATE %V v Page I-68 i 9 DOE 2200.6A Attachment I-1 FORTIFICATION DOCUMENT_ SUMMARy OF TRFASUR YFINAKIAL MANUAL FNTREQUIRFMEN ST The followlngls asummary of the requirements set forth for~ederal agenciesin ITFM 5-2000, 6-2000 and6-80000n Cash Management. Review these standards when completing the questionnaire onsel f-certification ofyour reported cash flows. For further detail s, please refer tothe TFM, or contact your a9encY’s cash management liaisonat the Financial Management Service. S AND CA~ 1. Treasury checks in amounts exceeding $5,000 are deposited with the nearest Federal Reserve Bank. 2. When depositingat Federal Reserve Banks cash and checks are separated and separate deposit tickets are prepared for each. 3. Agency deposit procedures fully comply with Treasury Financial Manual, Part5, Chapter 2000, titled Checks and Cash Received in Collections. ~) CASH AQYAUS (r TFM 6-2000) 1. If cash advances are made, cash management practices of monitored to ensure that Federal cash is not maintained recipient(s) are in excess of’immediate disbursing needs. 2. Agency procedures ensure that applicable interest earned on advancesof Federal funds by recipient organi zationsis remitted to the agency.

3. The agency’s cash advance procedures fully comply with the Treasury Financial Manual, Part6, Chapter 2000. (Cash Advances) GSANDQLL.ECTIONS (I TFM6-8QZ5_l 1. Written procedures are established to ensure that billings are issued within 5 business days upon the rendering of goods or services. 2. Agency billing procedures: a . Ensure that bills are issued within 5business days of the date goods or services are rendered, unless an organization can demonstrate thatit is cost-effective to allowmore than 5days to rendera bill: b. Provide fora systematic follow-up until collections received: Page lof4 Page I-69 DOE 2200.6A Attachment I-1 1-7-93 c. d. e. f. IFICATION D O - Provide for a stated payment due date on the bill which is nomore than 30days from the date of the invoice, unless otherwise provided inlawor specific TFM procedures; Require that payment be received no later than due date: Specify the payment mechanism to beused with related payment terms; and Provide for late charges and penalties for payments received after the due date. 3. Theagency’s billings and collections procedures fully comply with the Trea- sury Financial Manual, Part6, Chapter 8000, Section 8025, titled Billings and Collections. ah 8025.701 1. Agency procedures are in place to ensure that late payment charges, when applicable, are collected. 2. Asystem has been established to accumulate late charges. 3. The agency’s late payment procedures fully comply with the Treasury Financial Manual. Part6, Chapter 8t)O0, Section 8025.40 through 8025.70. (Late Payments) ● Services. DFPOSITS ( I TFM 6-803Ql 1. Agency deposit procedures include provisions for: a. Depositing receipts of$l.OOO ormore onthe same day received priorto depository cutoff time, and b. Accumulating collections of less than $1,000 and depositing when the total reaches $1,000: however, no later than Friday of each week. 2. If the agency mails deposits tothe FRBora commercial bank, thereis authorization from Treasury todo so. 3. The agency ’s deposit procedures fully comply with Treasury Financial Manual, Part6, Chapter 8000, Section 8030, titled Deposits. 1. Agency payment procedures: a. Ensure control over the timely payment of invoices and the taking of appropriate discounts, Page 20f4 Page I-70 1-7-93 gl) DOE 2200.6A Attachment I-1 RTIFICATION DOCUMFNT b. Provide for processing payments as closeas administratively possible to thedue date but nolater than the due date as specified in the invoice, contract, or OMB circular A-125 (Prompt Pay), and c. Automatically take advantage of cost-effective cash discounts as amatter of routine and eliminates any need for special handling. 2. The agency uses an appropriate intergovernmental transfer mechanism for transfers of all funds between agencies. 3. The agency ’s disbursements procedures fully comply with the Treasury Financial Manual, Part6, Chapter 8000. Section 8040, titled Disbursement for Goods and Services. 1. The agency makes unannounced verification of the cash balances inimprest funds at least once per quarter. 2. Imprest funds are reviewed at least every six months to ensure the funds are commensurate with actual needs and meet the requirements in I TFM 4-3000. g) 3. All funds in excess of$100,0OO are re-authorizedby Treasury annually. 4. All accounts in financial institutions for funds held outside Treasury have Treasury approval .

5. The agency’s procedures for cash held outside Treasury fully comply with the Treasury Financial Manual. Part6. Chapter 8000, Section 8060. titled Cash Held Outside Treasury. MFNTCONTW 1. The agency separates money or checks from related accounting documentation to accelerate deposits. 2. Cash managementis part of theagency’s review of financial operations (i.e., internal control reviews). 3. Current cash management policies and operating procedures are clearly stated in writing and systematically organized in manuals, handbooks, or other publications, and communicated andaccessibl ethroughout the Agency. 4. The agency’s cash management policies and operating procedures are periodically reviewed by a responsible official . Page 3 of 4 Page 1-71 DOE 2200.6A Attachment I-1 CERTIFICA ION DOCUMT 1-7-93 ● 5. Key duties are separated so that no single individual can control a transaction from beginning to end. 6. The agency’s financial managers are provided with periodi c cash management training. Page 40f4 Page I-72 DOE 2200.6A Attachment I-2 1. Take a discount only when the discount rate offeredis equal to or greater than the Department of the Treasury current value of funds rate. The following con- version formula should be usedto convert discount terms to the effective annual interest rate, which will be used as a comparison factor against the current value of funds rate: Conversio n Form red 2. heir a ready 0.85/10 net30 15.6 0.1/10 net30 1.8 ‘Ina leap year, use366 days. Page I-73 (and I-74) DOE 2200.6A Attachment I-3 1-7-93 ,) Confirmationof Interest PenaltY Assessed (Official authorized to approve program release documents) In accordance with the interest penal typrovisions of DOE 2200.6A. FINANCIAL ACCOUN7- ING, an interest penaltY has been assessedin relation to a contract bearing afunds citation for which you are authorized to approve program release documents. Pertinent details areas follows: 1. Accounting classification charged (also show budget and reporting code and fund type): % % 20212.91 2. Amount of interest penaltY charges: $1.50 3. Date interest penaltY charged: Q 12-31-83 4. Interest rate: Q 15.5% 5. Days late 17 6. Contract Identifi I o. DE-AC-01-82-NE-32097 7. Contractor: A. Voice, Inc. 8. b+ Invoiceor 1 No.: 3982 RC0702.000 9. b Reason for e : Misplaced invoice % Elwood Shannon Finance and Accounting Officer Page I-75 (and I-76) ~-7-93 DOE 2200.6A. , . –, . - . g) Attachment 1-4 RFTEWI.NATION OF INTFREST PFNALTY ON A PROPER INVOICF PAID LATE Ierms: $10,000, due in 30 days W: paid mthe60th day after receipt ~: 30 (includes 15days’ grace, which was lost) ~: $lo,ooox15.5%xa - $127.40 interest penalty 365* ‘Ina leap year, use366. Page I-77 (and I-78) 1-7-93 DOE 2200.6A Attachment I-5 a) IeJmi: $10,00002i10net 30: .WLS: Discount of$200 takenon the 12th day, which was2 days past discount period. The discount was paid to business concern onthe 30th day after discount period expired. ~t.y: 30 (includes 15days’ grace, which was lost) .. $200 x15.5 xJlQ - $2.55 interest penalty 365* $200.00 Improper discount +2.55 Interest penalty $202.55 Payment to vendor al) “In a leap year, use366. Page I-79 (and 1-80) 1-7-93 DOE 2200. 6A Attachment I-6 ,) ~ATIONOF INTERF!jT pENALTy ON AN IMPROPER INVOICE RFTURNFD IATFTOVENDQR IecIlw EaLt.s: $10,000, duein30 days Returned to vendor on the 18th day after receipt, which was3 days past the 15-day grace period. thereby reducing the due date to27 days. Paid onthe 50th day after receipt.

Davs of interest pen-: 23 (computed from the27th day tothe50th day) estcomoutatlon .. $10,000 X15.5% Xzi = $97.67 interest penalty 365* ● Ina leap year, use366. a) Page I-81 (and I-82) 1-7-93 g) SCHEDUI F O F FINAKIAL INSTITUTION PROC~ING CHAR~ Contractor: Financial Institution: Account Activi tv DOE 2200 .6A Attachment I-7 # Contractor’s Per Projected Monthly oua.QtltY. 1. Number of Checks Debited (Volume Discount if Applicabl e) 2. Stop Payment Orders 3. Account Maintenance 4. Deposits: al a. Number of Deposit Tickets b. Numberof Local Items c. Number of Out-of-Town 5. Reconciliation Services: a. Tapes Supplie b. Check Sorting 6. Special Q——— Q.———— q—— @——— Q—— Q—.—— J - $ $ $ $ $ $ $ $ $ u Page I-83 DOE 2200.6A Attachment I-7 1-7-93 7. 8. 9. Cos Other Services (Explained Below) % @ % Q__ Q Total Measured Monthly Service Charges o “ e Lines %lthrough 7). This is theamount tobe us w t e direct payment methodis utilized. Annually Projected Service Cha es. ltiply ta mea- sured monthly service charge 2, n nterth result. (Transfer toCalcu atio eA outbalance Required form (line l)ifthe i a o a ncemethod is utilized.) Q* tofoverdraft (if Y) notto be “nc uded on this schedule. % b . $ $ $ $ $ Page I-84 1-7-93 DOE 2200.6A Attachment I-8 CAI CUI ATIQN OF TIMF ACCOUNT 8ALANCE REQUIN12 Contractor: Financial Institution: 1. 2. 3. 4. Institution’s Annual Service Charge To Be Earned /6$ Previous Month’s Average Treasury Tax and Loan Interest Rate: % V+ Divfdethe amounton line lby the rate percentage shown on Line 2 to determine unadjusted time depo “t required to earn the annual service charge v Adjustment for Reserve Requirement a. Q% Federal Reserve Rate onTime Deposit: Q b. 100% Minus the Rate in4a ab e % Adjusted Time deposit balan ir t \ earn annual service charge iv”d amount online 3bythe rateo Ii 4 ) b%L b $ u Page I-85 DOE 2200.6A 1-7-93 Attachment 1-8 a Quarterly adjustments quarter statistics, ch rate providedby the cognizant Department of Energy office. (Corporate Seal) %) Telephone Number Page I-86 2200.6A I-8 I-86 to the non-interest-bearing time accou changes in reserve requi rements. and the 11 be based on pri or provi ded by 1-7-93 DOE 2200.6A Attachment I-9 ITATIONLETTEB Dear Sir or Madam: The Department of Energy is currently soliciting bids from interested financi al institutionsto provide services for the~tractor sn?imel# account under the checks-paid methodof Ietterof credit financing. The letter of credit is a funding method utilized by the Federal Government for financ- ing grants, contracts. and other programs. The checks-paid letter of credit isa modi- fication of the letter of credit whereby the contractor issues checks for program costs. When the checks are cleared bythefinanci al institution, the institution draws on the account represented bythe letterof credit at the Federal Reserve district or branch bank. Theamount of the drawdown shouldbe sufficient to maintain the account balance as closeto zero as administratively possible. The institution will be compensatedby fee or by anon-interest-bearing time deposit sufficientto generate earnings to cover the costof servicing the account. Enclosed is a proposal package that provides your institution with information anda) forms to be used in submitting a proposal. The following documents are containedin the proposal and information package:

1. The figure entitled ’’Techni cal Representations and Certify cations,” 2. The worksheet entitled %chedul e of Financial Institution Processing Charges,” 3. The worksheet entitled ’’Cal culation of Time Account Balance Required.” 4. Asample agreement, and 5. The document entitled ’’Financial Institution’s Information on the Checks-Paid Letter of Credit.” To receive same-day credit from the Federal Reserve. the financial institution can ascertain the amount of checks received for payment and submita payment voucher to the Federal Reserve districtor branch bank by—p.m. The financial institution has the ability tomake all transactions directly with the Federal Reserve dfstrfctor branch bankwithout going through its head office, if applicable. Yes ( )/No( ). If no, explain. aB Page I-87 DOE 2200.6A 1-7-93 Attachment I-9 % Ifyourinstitution is interested In providing the financial rv es required under ● the checks-paid letterof credit, abidmust resubmitted tot fo ing addressby not later than madll ne da_t&l. . IDOEmailingaddres The completed bid mustbe submitted in writing, using mat ri S1 , and3descrlbed above. Incomplete bids or bids received after e 9fflc tel %%dead’inedam adl ine at of W11 1 not be considered. Your institution wi 11 re ei ot” f i catl Q o the final decision by letter within 30 days of the close of the bid ng ri d. Additional questions pertaining to t reposal ck e should be directed to LQQ.E i al 1 on roffi cl al . Si cere Enclosures b% %) ‘N Page I-88 ~) 1-7-93 DOE 2200.6A Attachment 1-10 The financial institution makes thefoll owing technical representations andcertifi- cations as part of its bid to the Department of Energy to service a checks-paid letter of credit. (Check parentheses and complete blanks. as appropriate. All informationis necessary. ) a. The financial institutionis a ( )national chartered fin ncial institution A( )State chartered financial institution organizedan ex”stingin the State of * VA b. The financial institution )maintains( )does not main in n Federal Reserve districtor branch bank. A \9°untwith c . The current ( ) Federal ( ) requi rem<nt for the financial institution is: %. d. The financial institution insures 100,000 under fed- eral IY approved deposit insurance. are insured by a Government deposit i nsuran proved by the Department of the Treasury ( a 1 i st of approve ti ons is attached to this form). If no, explain: \ \ \ \ A \ \v e . The financial i nds ( ) directly ( ) indirectly with the ranch bank. If i ndi rectly, Federal Reserve trans ough the fol 1 owi ng correspondent financial f. 3 To receive e- ay credit from the Federal Reserve, the financial institution can ascertai e amount of checks received for payment and submit a payment voucher to the Federal Reserve district or branch bank by o‘ cl ock p.m. 9. The financial institution has the abi 1 ity to make al 1 transactions directly with the Federal Reserve district or branch bank without going through its head office, if applicable. ( ) Yes ( ) No. If no, explain: Page I-89 DOE 2200.6A Attachment I-10 1-7-93 ● 2. ~ Does the financia enterpr’isewith a ( )Yes( )No. (F Spanish-speaking Americans, American-Orientals, American-Eskimos, and American-Aleuts.) 3. I@UU—Ul a. Does the financial institution curren ilean account with a check volume equal toorex contractors al Institution Processing Charges”? &rJcM: ( )Yes ( ) No. b. What isthehig erviced and reconciled fora single account? Service..

%W Page I-90 Maryland Credit Union DOE Z200.6A Attachment 1-10 . . ons oroved by the Department of the Treasu ry (Insured upto $100.000) Insurance Corporation Mutual Savings Central Fund, Inc. (Massachusetts) Financial Institutions Assurance Corporation (formerly, North Carolina Savings Guaranty Corporation) State of North Dakota (lirnite dtoinsuringthe Bank of North Dakota) Cooperative Central Bank (Massachusetts) Federal Deposit Insurance Corporation Federal Savings and Loan Insurance Corporation National Credit Union Administration @ Texas Share Guaranty Credit Union Tennessee State Credit Union Share Insurance Corporation Page 1-91 (and I-92) 1-7-93 DOE 2200.6A Attachment 1-11 Agreement entered into thls.— dayof , 19–, between the UNITED STATESOF AMERICA, represented bythe Department of Energy (hereinafter referredto as ’’DOE”), and a corporation/legal entltyexlstlng under the laws of the State of (~erelnafter referred to as the Contractor) and , a financfal fnstftutfon corporation exfstfng under the laws of the Stateof , located at (hereinafter referred to as the Instftutfon). (a) On the effective dateof \ 19–, DOE and the Contract e er dlnto Agree- ment(s) No. ora Supplement\ Agreement(s) thereto, prov in for n advanceof funds by alettero’f credit. Copy of such advance prov “ens hasbe ti f nl hed tothe Institution. (b] DOE requires that amounts advanced tothe &:i!K!%:e:::: special demand deposft account ataflnancial Treasury-approved Government deposftfnsur nc o ITFM 6-9000 (see Ffg. IX-10).e) These special demand deposfts the Contractor’s general or other funds and the parties ar gsafdamounts wfththe Institution. (c) Thespeclal demand depos esignated WJ ~.LIKQILDttit --+%” bIn consideration ofthef e n . for other good andvaluabl econsideratfons, it fs agreedtha (1) TheGov n 1 hav tftleto the credft balance fn safdaccount to secure the repayment v copayments made to the Contractor, and safdtftle shall be superfor to any lfeno ft eorclafm of the Institution wfthrespect to such accounts. x(2) ThInstftutfon all be bound by theprovfsfons of safd Agreement(s) between DOE and the Contractor relating tothedeposft and withdrawal of funds fn the above specfal demand deposit account, which are hereby incorporated lntothfs Agreement by refer- ence, but the Institution shall not be responsible for the application of funds wfth- drawn from said account. After recefptby the Institution directions from DOE, the Institution shall act thereon and shall be under nolfability to any party hereto for any action taken in accordance wfththesald wrftten directions. Any written direc- 9 tfons received by the Institution from the Government upon DOE stationery and pur- porting to besfgned by, or signed atthewrftten direction of, the Government Page I-93 DOE 2200.6A Attachment 1-11 1-7-93 ● may. insofar as the rights, duties. and liabtlitfes of the Institution are concerned, be consideredas having been properly issued and flledwlth the Instltutt on byDOE. (3) DOE. or ltsauthorized representati ves. shall have access to the books and records maintafnedby the Instftutionwlth respectto such special demand deposit account at all reasonable times and for all reasonable purposes, including, butwlthout limita- tionto. the inspectionor copying of such books and records andany or all memoranda, checks, correspondence, or documents pertaining thereto. Such books and records shall be preservedby the Instltutlon for aperiod of 6yearsafter the final payment under the Agreement.

(4) In the event of the service of any writ of attachment, levy f xecutionoor commencement of garnishment proceedings with respect to the & ec al emanddeposlt account. the Institution shall promptly notify DOEat– (5 ti fo up Le ● c1 pr up Si or $5 th 11 Tr to th Ac Le based on the requirements and specifications contained in the DOE solicitation No.—. dated , 19–0 inconsideration of the placement by DOE of anon-interest-beari ng time deposit with the Institution in an amount agreed upon as shown on the form “Calcu- lationof Time Account Balance Required” contained in the Institution ’s bid dated — * 19–. The Institution agrees that per item costs, detailed in the form “Schedule of Bank Processing Charges,” contained in the Institution’s aforesaid bid will remain constant during the term of this Agreement. The Contractor shall withdraw$— in funds from the special demand deposit account and use such funds to make anon- interest-bearing time deposit in a separate account in the Institution. This account will hereinafter redefined as the time deposit account. The funds in the time deposit account will remain on deposit and shall not be withdrawn orused for any purpose Page I-94 1-7-93 wfthout theauthorfzation of DOE. The amount downward. but only wfth the approval of DOE. OOE 2200.6A Attachment 1-11 of the deposit may be adjusted upwardor (6) The Instltutlon shall post collateral, acceptable under Department of the Trea- sury Department Cfrcular 176, with the Federal Reserve Bankln an amount equal to the Federal funds deposltedfn all of the accounts included in thfs Agreement, less the Department of the Treasury-approved deposft insurance. (7) Thfs Agreement. wlthall its provfsfons and covenants, shall belneffect fora termof —years, beginning on the dayof—, 19–, and endfng on the.- day of —. 19–. A (8) DOE, the Contractor, orthe Instltutlon mayterminatet SA re entatanytfme K% withfnthe agreement per<od upon submitting written notiffcat nt t other part~es 90 days prior tothedesfred termlnatfon date. The specfficprov 10 f operatfng the account durfng this 90-day perfodarecontafned i - venantll. (9) DOE or the Contractor may terminate thfs Agreement a to the Institution ffDOE or the Contractor, or &a:31!!Z!!:::<’:i::;! has fafl ed to substantially perform f ts obl f ions rider t’ s Ag ement or that the Instltutlon 1s performing its obl igatlons 1 a program. fn an effective and effl cient marine a) (10) Notwfthstandfng the provfsion &h ovenants a 9. fn the event that the Agree- ment. referenced i n Recital a, be w n O d the C actor fs not renewed or is terminated, this Agreement bet en e tractor, and the Institution shal 1 be terminated automatf cal IY upon ed 1 “ r \ w tten notfce to the Institution. (11) In the event of termfnatlon, t e v t Ion agrees to retain the Contractor’s %b special demand deposit unt for a d t nal 90-day perfod to allow for clearance of outstand~ng checks. D ri thfs 90- a perfod, DOE shall place on deposit in that ~9account suffi cfent fund t ve 11 ou standfng checks presented for payment. Within 7 days of the expiration o t gre ent term. an analysfs of the specfal demand deposit accou al 1 be m e b to determfne whether an fnsufff cient or excessf ve balance was f ained fn th t e deposft account to compensate the Institution for services ren r the e ratf on date. (a) If the analys s ndicates that the Institution has been insufficiently com- pensated f s vices rendered up to the expiration of the Agreement, the Contractor s al 1:

1 Maintain on deposit, durfng this 90-day period, sufffcfent Federal funds to refmburse the Institution for prior cumul atfve loss of earnings and 2 Maintain on deposft fn the time deposit account sufflcfent Federal funds to compensate the Institution for services rendered durfng the 90-day perf od. (b) If the analysfs fndicates that the Instftutfon has been overcompensated for services rendered up to the expf ration of the Agreement, DOE shal 1 close out the time deposit account and secure from the Instf tutfon a check ffl an dM(fflt Page I-95 DOE 2200.6A Attachment 1-11 equal to the net rendered during 1-7-93 ● cumulatlveproflt (profltmlnus compensation for services the 90-day period). (c) If cumulatlveprofltis not sufficient to compensate the Institution forser- vices rendered during the 90-day period, adjustments shall be made tothetlme deposit account to compensate the Institution for the difference between the cost of services rendered during the 90-day period and the cumulative profit. Durfngthe entfre 90-day period, It ls further understood that: (a) The Institution shall maintain collateral fnanamount sufflcfentto collat- erallzethehlghest balance ln the account, less Federal Deposft Insurance Corporation coverageon the accounts. % (b) All service charges shall be conslstentwlth theamou sr fl ctedfnthfs A greement. \ (c) All terms and condltfonsof theaforesafdbi su Ittedbyt I titutfon that are not inconsistent with this 90-day add io 1 termsha 1 remainin effect. Q (d) This Agreement shall continueine e , It except 9 of the following: 1 Letter of Credit (Covenant 5) Z The term of this Agre m t C nant 7) 3 TermlnatlonofAgr me t o nt and9) The Instltutfon hassubmftted the m ft ed’’Technfcal Representations andCer- %% tfffcatlons,’’ ’’Schedul Flnancfa ns f tfon Charges,* and’’Calculatfon ofTlme Account Balance Requfr d.” b seform h ebeenaccepted by the Contractor and the Government andarefnco o ed rein wfth the document entftled “Ffnancfal Instf- tutfon’s Informationont e cks- fdLetter of Credit,”as an fntegral part ofthis Agreement. % Page I-96 m 1-7-93 DOE 2200.6A Attachment 1-11 IN WITNESS WHEREOF the Darties hereto have caused this Agreement, which conslstsof pages. including the signature pages, to be executed asofthe day andyearflrst above written. WITNESS (Typed Name of Witness) (Signature of Witness) w: In the case of a corporation, a witness is not required. Type or print names under all signa- tures. THE UNITED STATES OF AMERICA By (Typed Name of Contracting Officer) (Signature of Contracting Offtcer) (Dateof S ignature) (TYPed Name ofCon By A A (Si ‘s Representative) (Xjtw 1 ● WITNESS TTyped Nameof Financial Institution) (TYPed Name of W~tness) (Typed Nameof Financial Institution Representative) (Signatureof Financial Institution Representative) (Title) orprfnt names under a tures. (Address) (Date of Signature) Page I-97 (and 1-98) 1-7-93 .) DOE 2200.6A Attachment 1-12 Thechecks-paid Ietter of credit Is a sophisticated technique usedby the Federal Government to provide payment to a contractor who isperformlng services orpro- vialing goods to the Department of Energy (DOE). Under this method, the contractor Issues checks for program purposes. When these checks are presentedto theser- vlcing financial Institution for payment, the checks are totaled and the financial institution draws funds from theservlcing Federal Reserve districtor branch bank. The financial instftutionls compensated forservlces performed lnthe formof elthera non-interest-bearing time depositor a direct payment for services ren- dered. Information necessaryto bid for and operate such anaccount andto estab- Ilsh the reporting requirements the flnancfal Institution must meet are provided below.

a. 0 ’ Upon recefpt of the solicitation from DOE, the financial institution repre- sentative should revlewthe packageto ensure that all material listedin the covering letter has been included. If anythingis missing, the financial Institution representative should contact the DOE representative named in the letter to obtain themissing material. Ifall material is present. the financial institution representative should review the bidding procedures, the operating procedures. the reporting requirements, and the sample agreement. Questions should be clarifiedby contacting the designated DOE representative. b. Once the procedures and requirements are understood and the financial insti- tution”s management decides to submit aproposal , the procedures shouldbe followed: (1) Check or complete all responses contained in the “Technfcal Representations and Certifications” form. (2) Complete the ’’Scheduleof Financial Institution Processing Charges” form. (3) Complete the ’’Calculation of Time Account Balance Requi red’’ form ifDOE representative that has advised the financial institution will be compensatedby a non-interest bearing time deposit. (4) Ensure that all requtred information has been provided before forwarding the completed formsto the designated DOE representative. These forms constitute the financial institution’s formal proposal to DOE. Incomplete proposals will not reconsidered. Page I-99 DOE 2200.6A Attachment 1-12 1-7-93 (5) Forward the completed proposal with acoverletter to the DOErepre- sentatlve at the address provided. Proposal snot received by the date established for submission will not reconsidered. c. Bidders wfll be notified by letter of the institution selected wfthin30 calendar days after the close of the bfdding period. d. The selected fnstftution will meet wfth the designated DOE representatfveto clarify any operational questions andto sign the contractual agreement and required corporate certificates for both the contractor and the ffnancfal fnstftution. The agreement term will bedetermfnedby the DOE representative, but normally isfora period of not less than 2years and notmorethan5 years. Speciffc termination provisions are contained in the agreement for termination before the date specified in the agreement. The institution will total the checks presented dafly for collection agafnst the special account asprovlded for ln the agreement and draw funds from the Federal Reserve dfstrictor branch bank servicing the letter of credit. Theamount of the drawdown should be sufficient to maintain the account balance as close to zeroas administratively possible. Normally, theamount of the drawdown will be the total of the checks cleared net of the contractor’s miscellaneous deposits madeby the institution’scutofftime. The institution must determine the cutoff time for processing checks and deposfts to ensure same day credit. The drawdown is effected ● either by presenting a properly completed TFS Form 54010 “PaymentVoucher on Letter of Credit,”to theservicfng FRBor by notifying the servicing FRB by telephone or wire of the amount. The specific procedures for both of these methods are detailed below. a. When the ffnancfal instftutfon is located in or near the servicing Federal Reserve city and can forward TFSFORM 54010 “PaymentVoucheron Letterof Credit,’’ before the FRB cutoff time for same-day payment, the following pro- cedures will be adhered to:

(1) The DOE finance officewill provide the financial institution with apar- tiallycompleted SF-1194, “AuthorizedS ignature Card for Payment Voucher on Letter of Credit.” The institution will complete the form wfth typed names and the signatures of the individuals being authorized to sign or countersign the TFSform 5401. Place acheckin the block entitled. “Any Two Signatures Required toSign or Countersign.” The signaturein the lower left-hand corner of the SF-1194 should be that of anlnstltutlon official empowered to make such designations. (2) The DOE finance office will provide asupplyof TFSform 5401 to the financial institution. The TFSform 5401 fs the instrument to be usedto receive reimbursement for checks cleared each day. The institution must deliver this document to the servicing FRB in time to receive same-day creditin their reserve account. The financial institution must deter- mine its own cutoff time for processing recipient checks to assure ● same-day credit. Checks received after the cutoff time must reprocessed the next day. Page I-100 a 1-7-93 DOE 2200.6A Attachment 1-12 (3) If the financial Instltutlon does not malntaln an account with an FRB, arrangements must bemade for the funds to retransferred from theser- vfcfng FRBto the financial Instltutfon through its correspondent. Itis the financial Institution’sresponsibfl ftytocoordfnate the proper crediting offts account through fts correspondent relatfonshfp. b. When the ffnancfal fnstftutlon fslocatedoutsfde the servicing Federal Reserve cfty and cannot forward the payment voucher before the FRB cutoff time for same day payment, the fnstftutfonwfll be allowed to facilitate the funds transfer bytelephonfc or wire message. The following procedures will be adhered to: (1) The ffnancfal fnstftutfon wfllprovfde the DOE office wfththe name and telephone number ofanindfvfdual in the fnstftutfon. This individual wfll be contactedby theservfcing FRBto assist the FRB inestablishfng the necessary controls over thetelephonfc orwfre transfer of funds. (2) The financial fnstftutfon will establish acutoff time forprocessfng checks to assure same daycredft. (3) Iftheffnancfal instftutfon does notmafntafn an account wfthan FRB, arrangements must bemade for the funds to retransferred from theser- vfcfng FRBtotheffnancfal fnstftutfon throughfts correspondent. Itfs the fnstitution”s responsibility to coordinate the proper creditlngof its account throughfts correspondent relatfonshfp. MU: Under the telephonic orwire method. the financial institution does not haveto prepare the TFSForm 5401, “PaymentVoucher on Letter of Credit.” c. Iftheffnancfal institution provfdfng these servicesfs abranchof aparent fnstftutfon, the drawdown on the letter of credft and subsequent transferof funds from theservfcing FRBmust beaccomplfshed onthesame dayas the funds are requested. When the financial institution is to be compensated in the form of anon-interest- bearfng time deposit, that deposltwfll be made by the contractor drawing the amount of funds from the letter ofcredft. The fnstftutfon will place those funds fnaseparate non-fnterest-bearing time account asset forth in the agreement. Thfsaccount must beidentifi edasbefng Federal funds. If the amount of the non- fnterest-bearing time deposit exceeds the level of Departmentof the Treasury- approved deposft insurance coverage, the fnstitutionrnust collateralize the amount that exceeds the insurance coverage. The collateral will be posted wfththe FRBfn accordance wfth Department of the Treasury Circular 176. The institution will be pafddfrectlyby the recfpfentff the dfrect payment method fsused.

If the calculated average daily balance for themonth results fn aposftfve account balance and the financial institution hadno control over the posltfve balance, the ffnancial institution will compensate DOE for the loss of the availability offunds Page 1-101 DOE 2200.6A 1-7-93 Attachment 1-12 by multiplying the average daily balance forthe monthby the Treasury Tax and Loan ● Funds Rate dlvldedby 12. If the financial Institution caused the positfve account balance. it shall pay apenaltydetermfned by multiplying the excess fund balance by the Federal Funds Rate adjusted for the proper periodof time. Penalties will be remitted to the cognizant DOE ffnance office. a. The financial Institution will send acopyof TFS Form 5401, “PaymentVoucher on Letter of Credit.” to the administering DOE Field Element Chief Financial Officer each time apayment voucher is presentedto the FRB for payment. The financial institution will also send the contractor acopyof the payment voucher, supportedby alisting of checks paid. Ifthe drawdown is effectedby the telephonic or wire method ,theinstltution will send a listingof the checks paid to the contractor. b. The financial Institution will provide the contractor with abank statement and an account analysis monthly. The account analysis will include the data nec- essary for the DOE finance office to determine that the costs of the services are commensurate with the level of compensation belngprovldedto the financial institution. Page I-102 m 1-7-93 DOE 2200.6A Attachment I-12 NOTE–The contractor. ifa corporation, shall cause the following Certificate tobe executed under its corporate seal , provided that the same officer shall not execute both the Agreement and the Certificate. CERTIFICATE 10 . certify that I am the of thecorporatlon named as Contractor herein: that who signed this Agreement on behalf of the Contractor, was then 9 of said corporati in behalf ofsald corporation by authority of itsgoverningbo scope of its corporate powers. Corporate Seal) \ v /a Aaref+ NOTE–Financial Instit cause the following Certificate to be executed under 1 esame officer shall not I. certify that I amthe \ \/ of thk corporation named as Institution\ herein; that , who signed th~s Agreement on behalf of the Institution. wast n %V of said corpor 1 n; andth ts d~greement was duly signed forandin behal fofsaid corporation y uthorityof ts overnlngbody andis wfthlnthe scope oflts corporate powers. (Corporate Seal) (Signature) Page 1-103 (and 1-104) 1-7-93 DOE 2200.6A Attachment 1-13 TR~sAMP (90%confidence. +Or- lo%) The following table will be used to calculate the sample size when conducting aquality control review. The sample sizeis based on the number of payments made during the fiscal year, or period under review, that were subject to the Prompt Payment Act. ionln~ . 5,000 ormore 1,600-5,000 1.000-1,600 600-1,000 400-600 300-400 200-300 150-200 100-150 Less than 100 Minimum Required DlesfzP 300 275 250 225 200 175 150 125 100 All Page I-105 (and 1-106) 1-7-93 UOEZ200.6A Attachment 1-14 CHECKLIST FOR PERFORMING OUALITY CONTROL REVIEWS 1. Verify that the paymentis subject to Prompt payment Act. (Refer to OMB Circular A-125 (Revised, PROMPT PAYMENT, ATTACHMENT, para. 2, pg3.) 2. Verify that theinvofce was date stamped asrecelved. otherwise usedateoflnvoi ce dndeterminlng payment due date.

3. Verify that theinvotceis proper tnvoice(See A-125. Attachment, para. 11, pg. 2 and para. 5b and 5d, pg 10), if not, verify that invoice was date stamped when correction was made and that vendor was notlfed within the requlredtlmeframe. 4. Verify that the reviewer determined payment due date matches that due date entered Into the system. (See A-125, Attachment, para.4ethru4j, pg 6.) 5 . Review documentation to assure that property or services were delivered and accepted. 6. ReviewTreasury accomplished pay schedule to verify that payment wasmade by the due date, andwhen notmade bythe due date, interest penalties were paldin a accordance with the Act. (See A-125, Attachment, para. 4k. pg8.) 7 . Verify that the proper Interest rate was used ln calculating interest penalties. (See A-125, Attachment, para. 7a, pg12.) 8. Verlfythat anydlscount taken was based on payment withlnthe discount period, that is, the period from the date of the invoice as dated by the contractor tothe end of the discount period. (See A-125, Attachment, para. lj, pg2and para. 4i, pg8.) 9. Ascertain that interest penal ties and economically advantageous purchase dis- counts lost are charged to the same object class and budget and reporting classification used fortheorlglnal contractor purchase order. 10. Ascertain that all early payments approved by the CFOor Head of the Field Element or designee are separately accounted for and that approval thereofis in writing. 11. Verify the legitimacyof all discounts not taken because they were noneconomically advantageous. Page 1-107 (and 1-108) LIOE 2200.6A 1 - 7 - 9 3 CHAPTFR U S. P~ OTWLtKKLS a. ~. This chapter prescribes thepollcles and general procedures for the accounting treatment of advances to others. prepayments, deposits, and acquired collateral . Financing of integrated contractors lsfurtherdlscussed lnDOE2200.8B. ACCOUNTING SYSTEMS, ORGANIZATIONS, AND REPORTING, Chapter I, “AccountingSystems and Organization,” and disbursement procedures aredis- cussed in Chapter 1, “Cash.” Advances forworkto be performed for others are coveredln Chapter IX, “Reimbursable Work, Revenues, and Other Collections.” b. ~illty. The applicability ofthls chapter lsspecifiedln DOE 2200.4, ACCOUNTING OVERVIEW, Chapter I, “Introduction,” paragraph. (a) Each advance shall be promptly recorded as an asset. (b) The advances shall be limlted to the minimum amounts necessary for immediate disbursement needs and shall betimedtobeln accord with the actual immediate cash requirementsof thereclpientin carryfng outan approved program or project. The timing and amount of cash advances shall beas closeas is administratively feasible to the actual disbursements bythereclplent for direct program costs and the proportionate share of any allowable indirect costs. (c) When the recipient is funded by aletterofcredit. tt should not have on hand more than 3days’ cashor $10,000, whichever Is greater. However. to avoid frequent requests for small advances. advances should normally be not less than $5,000. If, at anytime, thereclpi- enthas an excessive cash balance. the recipient shall be requiredto return the excess advance. (d) Advances shall be monitored onacontfnuous basfs. Cost reportsor other documented evfdence that goods orservfces have been recefved shall be the basfsforrelievlng the advance account. Cost reports shall also be used fn order todetermfne the following: 1 That the recipient fs using the advance fn accordance wfth the terms of the agreement.

II-1 DOE 2200.6A 1-7-93 Paragraphlc(l)(d)z 2 That the recipient is making drawdowns as close to actual disbursements as lsadministratively feasibl e. (e) The recipient shall berequ~ red to return any unused advance either when the contract or other agreement expires orwhen the workis completed. (f) Excess advances shall be reclassified as accounts receivable andbe subject to debt collection procedures as specified in Chapter III, “Receivables.” (2) ~. Prepayments shall be recorded as prepaid expenses and expensed over the period to which they apply. (3) m. A deposit shall be recordedas an asset at the time the payment . (4) tillatzral Fti. The establishment and maintenance of a collateral fund, Including the income earned and anygain orloss resulting from the sale of securities forming part of the fund, shall bein accordance with the provisions of the insurance plan or other trust agreement requiring the establishment of such a fund. 2. MYAJKES. An advance isa payment made in contemplation of the future performance ofservlces, receipt of goods or other assets, or incurrence of expenditures. Common examples are travel advances or advances to contractors that are madein ● contemplation of future receipt of goodso services, inventory, or fixed assets. These amounts are recordedas assets until the related expenses have been incurred or until contract terms aremet or goods or services are received. The appropriate accounts, codes, and accounting entries for recording advances are contained in DOE 2200.10A, ACCOUNTS, CODES. AND ILLUSTRATIVE ENTRIES. a. ~. The Economy Act (31 U.S.C. 1536) provides the authority for making cash payments in advance to other Federal agencies for work performed under the authority of the Economy Act. Even though advance payments are permissible under the Economy Act, it is DOE’s policy not tomake advances to other Federal agencies except when requiredby law or provisions of an interagency agreement. Agencies with revolving funds or Departmentof the Treasury approved consolidated working funds are examples of instances where cash advances maybe required. Transfer appropriations may also be usedto fund work performed by other Federal agencies. Transfer appropriations are not accounted foras advances. Accounting for transfer appropriations is covered in DOE2200.5B. FUND ACCOUNTING. Chapter 11. “Accountingfor Appropriations.” Additional information is also contained in DOE 5100.140 ALLOTMENT AND APPROVED FUNDING PROGRAM PROCESS, of 9-17-86. (1) ~. Three methods areavailabl efor making advances to other Federal agencies: Standard Form (SF) 1081, “Vouchera ndSchedule of Withdrawals and Credits”; SF-11660CR, “Vouchera ndScheduleof Pay- ments”; and the Online Payment and Collection System. These methods are ● described in detail in Chapter I. “Cash.” II-2 1-7-93 DOE 2200 .6A Paragraph 2b(l) b. (2) (a) ~. When monthly cost reports are recelvedon a regular basis, reduce the advance account and charge the operating expense account for the cost of the work performed. If monthly cost reports cannot reobtained from the other Federal agency, estimate the cost of work performed during the month, charge this cost totheappropri- ate operating expense account, and credit the appropriate liabil~- ties account. When the cost report Is received, charge the liability account and reduce the advance account. This procedure mustbe fol- lowed to avoid undue Iagsfnrecording the costs of work performed under funds advanced to other Federal agencies.

(b) ~. Review the balances of the advance account periodically, but not less frequently than quarterly. If any uncosted portions remain with other agencies andwlll not beusedln the future, they must be returned promptly to DOE. ial~R~clpl~ti This paragraph prescribes the procedures to be followed for all cash advanc~s made under DOE programs, including advancesto State and local Governments, educational Institutions, International organ~zations, and other publlc or private organizations. Coverage applles to any program requiring advance paymentsto finance therecipient’s activities in carrying out that program, whetherby contract, grant, contributions, or another form of agreement. Advance pay- ments on procurement contracts are also subject to the provisions of the Federal Acquisition Regulation, Subpart 32.4, “AdvancePayments” (48CFR 1-32.4), as supplemented ormodlfied by DOE Acquisition Regulation (DEAR) Subpart 932.4, “AdvancePayments” (48 CFR 932.4) and DEAR Subpart 970.32, “ContractF lnanclng” (48 CFR 970.32). Additional Information may also befound lnvolume Io part 6-20000 of the Treasury Flnanclal Manual (I TFM 6-2000); DOE Financial Assistance Rules (1OCFR6OO); and Office of Management and Budget (OMB) Circulars A-102 and A-110. (Refer to Chapter I. “Cash,’’andITFM 6-2000 for informationon advance payment methods.) (1) Amg.untsof AdvW. An advance shall be limited to the minimum amount needed and timed tobe in accord with actual and immediate cash require- ments needed to carry out the purpose of the approved program or project. The timing and amount of the cash advance shall beas close asis adminis- tratively feasibleto actual disbursement for direct program costs and for the proportionate share of any allowable indirect costs. An advance maybe made for accrued expenditures, but only to the extent thatit represents immediate disbursement needs. Predetermined advance payment schedulesor percentage advances are not used in making payments; however, when the total amount of the awardis less than $10,000 and the anticipated period of performance is 12 months or less, a single payment may be made in advance of performance. II-3 DOE 2200.6A Paragraph 2b(2) 1-7-93 (a) Di r~ct ~t of th? Trwurv DisMrsmfuU . When the aggregate annual amount of advances is less than $120,000. or more than $120,000 butthere isnot acontlnuing relationship between DOE and the recipient for atleast lyear, the advances shall ordfnarilybe made only in amounts necessary to meet immediate disbursement needs for program purposes. The advances shall be scheduled so that the funds are available only immediately before their disbursement by the recfplent organization. When disbursements aremade bythe recipient organization on monthly, biweekly, or any other regular cycle and the amounts involved so warrant, the disbursement from the Department of the Treasury shall be similarly timed. (b) -of Cr~dit. The letter of credit shall be the financing method used whenever thereis a continuing relationship between DOE and a recipient organization for at least l year involving annual advances aggregatingat least $120,000. Aletter of credit provides the recipfentwlth mechanfcs speclffcally designed toobtafn cash from the Department of the Treasury promptly and with such frequency as maybe necessary, based upon the recipient’s own determinations of when and how much fs actually needed for program disbursements. Recfpfent organfzatfons shall not mafntafn balances of Federal cash other than the small balances necessaryto accommodate the minfmum lfmftatfon of$5.0000n fndfvidual drawdowns. There are currently two letter-of-credft mechanisms. The letter-of-credft mechanism for ● advances Is the Letterof Credit-Treasury Financial Communfcatfons System. The Federal Reserve Bank-Letterof Credit System lslimfted to the checks-pafd method. Drawdowns under checks-paid letterof credit will notbe recorded as advances. Detafled procedures for both mechanisms are covered ln Chapter I. “Cash.”

1 ~. Each Departmental Element (each sfngleaccountfng entfty) shall work toward consolidating all advance fundfng to the same recfpfent organlzatfon under one letter of credit. In achfevfng this objective. all advance funding totherecfpfent organization shall beconsfdered, including that which ordinarily would notqualffy because it does not meet thecrfteria established for the letter-of-credft payment method. 2 Imnination of MYMCP FYnMCM . . Whena recipient organization recefving cash advances has demonstrated an unwillingness or fnabflfty to establish procedures that will minimize thetfme elapsing between cash advances and disbursements, the DOE Element shall terminate advance ffnancfng unless such action isprohib- itedby the statutes governing the program(s). The recipient organization shall thenbe required to financefts operations with its own working capital, and payments to the recipfentorganlza- tion shall be made by the direct Department of the Treasury check ● methodto reimburse it for actual cash disbursements. Such II-4 1-7-93 DOE 2200.6A Paragraph 2b(3)(b) (3) payments shall be processed expeditiously to minimize the time elapslng between disbursementby and paymentto the recipient organization. When the reimbursement method is not feasible, arrangements may be made whereby the operations of the recipient organization are financed on a working-capital -advance basis by an advance to the recipient organization to cover its estimated disbursement needs for a given initial period. This inltlal period shall be decided by DOE, but normally lt should not exceed 30days: thereafter. payments shall be made tothereclpient organization for the amount of its actual cash disbursements. When advance fundlngls terminated under adverse conditions, the Chief Financial Offfcer(CFO, CR-l) shall be notified. Additional details concerning letter-of-credit procedures are in Chapter I, “Cash.” ~. Regardless of the particular method used to advance funds. the CFO and Heads of Field Elements, through the respective offices of Field Element Chief Financial Officer (Field CFO) and procurement, are responsible for reviewing the financial practicesof DOE recipient organizations, both primary and secondary. This reviewis necessary to ensure that the provisions of this chapter and the Treasury Financial Manual are being followed and for instituting such remedial measures as may be necessary inthe event that a recipient organization demonstrates an unwillingness or inability to comply with these provisions. (a) ~iewof~. Periodically, but not less frequently than each quarter. Field CFO’s shall review each recipient organization ‘suse of funds advanced. The contractual document will specify the reports available. The reports required by Title 2, Section 16.8, of the General Accounting Office (GAO) Policy and Procedures Manual for Guidance of Federal Agencies: OMBCircular A-102 revised: OMB Circular A-llO; DOE 1332.2. UNIFORM REPORTING SYSTEM FOR FEDERAL ASSISTANCE (GRANTS AND COOPERATIVE AGREEMENTS), of 10-31-83: and DOE 1332.1A, UNIFORM REPORTING SYSTEM, of 10-15-85, may beused as the basis for the review. These reports and other information that maybe available shall be reviewed for agreement with amounts recordedin DOE accounts, reasonableness of cash balances on hand. and the timing ofdrawdownsby letter of credit or direct Department of the Treasury disbursement.

(b) fxcf+~. If funds are erroneously drawn inexcess ofa recipient organization’s immediate disbursement needs. the funds should be promptly refunded and reissued when needed. The only exceptions to the requirement for prompt refunding are when the funds involved will be disbursed by the recipient organization within 7calendar days orwhen they are less than $10.000 and will bedis- bursedwithin30 calendar days. These exceptions to the requirement for prompt refunding should not be construed by the recipient as approval by the Department of the Treasury or DOEfora recipient organization tomaintain excessive funds. These exceptiofls are II-5 DOE 2200.6A Paragraph 2b(3)(b) 1-7-93 ● (c) applicable only toexcesslve amounts of funds that are drawn erroneously. ~. Any interest income earned byareclpi- entorganizatlon on Federal funds must be promptly refunded unless therecfpientis authorized bylawto keep thelnterest earned. State and local governments and instrumentalities of States and their sub- grantees are exempted from thlspollcy by the Intergovernmental Cooperation Act of 1968 (Public Law95-557). Additionally, OMB Circular A-lIO, “Grantsa ndAgreements with Instltutfons of H~gher Education,” specifies that recipients shall maintain advances of Federal funds ln interest-bearing accounts. Interest earnedon these accounts shall be remftted at least quarterly to DOE. Upto $100 of thelnterest earned peryear may be retafned bythereclplent to cover administrative expenses. (d) ~. When monthly cost reports are recefvedon a regular basis, Field CFO’s shall reduce the advance account and charge the operating expense account for the cost of the work performed. If monthly cost reports cannot reobtained, the Field CFO shall estimate thecost ofwork performed during the month, charge this cost to the appropriate operating expense account, and credit the appropriate liabllftfes account. When the cost reportfs received, the Ffeld CFO shall charge the liability accountant reduce the advance account. This procedure must be followed toavold undue lags lnrecordlng the ● costs of work performed under advances. (e) ~. Cost reports and the balances of the advance account shall be reviewed periodically, butnotlessfre- quently than quarterly, to determine whether costs have been recorded accurately andto identify excessive advances. Any uncosted portions that will not beused in the future mustbe returned promptly toDOE. (1) ~. Advances to employees shal 1 be made only for travel, tuftion, training fees. books, and fmprest fund purchases. Advances madeto employees shall be kept to the lowest practfcal levels and shall bemade only when needed. Accounting controls mustbe maintained for all advances, including cash, travelers checks, tfckets for travel, and other valuables. Procedures shall be established to account for and recover the advances as soon as they are determined tobe excess. A delinquency notice must be issued to the employee if the advanceis still outstandfng30 days after completion of the activity for which the advance was made. Collec- tfonactfon through payrol 1 deduction shall be initiated 30days after the delinquency notice has been issued. Attachments II-land 11-2 are sample delinquency notices. Administrative offsets are covered in Chapter 111, “Receivables,” and DOE2200.2B, COLLECTION FROM CURRENTAND FORMER ● EMPLOYEES FOR INDEBTEDNESS TO THE UNITED STATES. II-6 1-7-93 DOE2ZO0.6A Paragraph4 (2) ~.

(a) wvel~. Advances of funds maybe made to employees for those usual allowable cash expenses incurredin connection wfthofffcfal travel expenses including authorized change-of-station travel. A travel advance shall be recorded atthe tlmetheadvancefs fssuedby using the account code and illustrative entry designated fnDOE 22OO.1OA, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES. An advance for regfstratfon fees or other fees shall be recorded as apart of the travel advance. The travel advance will be liquidated when the final travel voucheris settled and any excess advances are collected from the traveler. Refer to DOE 1500.2A, TRAVEL POLICY AND PROCEDURES, of 6-7-89, for speclficpollcy and requirements. (b) Mlnina Fx~. For an employee assigned to trainlngln non- Government facilities, payment for tuition. fees, and books maybe madefn advance directly tothetralning organization ortothe employee. Advances fortrafning expenses shall be recorded byusdng the account codes and illustrative entries designated fnDOE 22OO.1OA, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES. (c) ~.Cash advancesof less than $500 maybe provfded to an employee on arecefpt basis for such expenditures as small purchases. repairs, postage, transportation, andpublfc utilftybflls. Normally, employees should not hold cash advances for more than 24 hours. and never for more than 5 days. 3. MwwHMwS. a. b. c. ~. Prepayments are expenditures that provide future benefits. Pre- payments are often recurrent and cover such itemsas rent. taxes, royaltles, subscriptions, commissions, and insurance. Prepayments shall be recordedas prepaid expenses and expensed over the period to uhf ch they apply. ~. Costs that cannot be readily charged to afinal budget and reportfng classlffcatfon ortoan asset account durfng the current accounting period may betemporarfly charged to asuspense account so that the preparation of ffnancfal statements fs not delayed. The proper accountto be charged shall be determined durfng the month after thechargefs recorded fn suspense. Thfs procedure applfesto all months of the ffscal year except the final month. when all suspense items shall beidentffied and dlstributedto the appropriate accounts. ~.The appropriate accounts. codes. andentrles for recording prepaid expense transactions are contained in DOE 2200.10A, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES . m 4. ~. Deposits are payments to vendors for returnable containers or security requirements by contract wfth such vendors as publfcutflitfes. Ifftis knownat the tlmeofrecefpt that the contafnersin aparti cularshipmentwlll notbe returned (because they will be used fn a contaminated area, because the cost to ship II-7 DOE 2200.6A 1-7-93 Paragraph4

them back to the supplier would exceed the amount of the deposit. or for some other ● acceptable reason)j the deposit shouldn't be recordedin the other-depostts account but rather should be recorded in the fnventory, plant and equipment. or expense account, depending upon the nature of theshfpment. Because some vendors requfre only token ornomfnal deposftson containers but demand full cost if they are not returned, the full amount to be paid for thecontafners shouldbe recorded when a determination Ismade that they arenot tobe returned. The cost to DOE for vendors’ containers that are retained by DOEorlts contractors for their own use as returnable containers should recharged to the stores account: thecost to DOE of special contalnersto hold or transport process materials should recharged to the completed plant and equipment account If thecontafners meet the criterfa for retirement units stated in Chapter VI, “Plant and Capital Equipment”; the cost to DOE of vendors’ containers that are destroyed or that for any reasons other than those stated in the preceding sentence are not returned should be charged to the cost of operations or included in the cost of the materials they contain (on a consistent basis, of course). Procedures shall be established that, in the opinion of the Head of the DOE Field Office, are adequate to achieve effective management and quantity control of containers for which deposits have been made and that are expected to be returned to vendors. Accounts, codes and illustrative entries are identified in DOE 22 OO.1OA, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES. 5. ~. Collateral funds and deposits consist primarily oflnsurance collateral funds, employee benefit and annuity funds, pension funds. special con- tract funds, and excess premfum payments. The establishment and malntenanceof a collateral fund, including the income earned and any gain or loss resulting from ● the sale of securities formfngpart of the fund, shall beln accord wfththespe- cific provisions of the contract between DOE and the contractor concerned and the provisions of the insurance plan or other trust agreement requiring the establish- merit of such a fund. Collateral funds accounts areprovldedby DOE to record and control all applicable transactions. Income from a collateral fund is accounted for as an appropriation reimbursement and reported under the activity Revenues from Collateral Funds. The following are examples of collateral funds: a. b. c. d. ~. Funds deposftedwfth insurance companies notas part of the premium, but held forthespecfffc purpose ofprovfdfng the fnsur- ance company with fmmed~ate cash fn the eventof a catastropheor some other event causing a large numberof clafms. Futi. Deposfts with contractors for the purpose ofprovfdfng funds for payments to contractors’ employees suffering dfsabilftfes from certain specfffed causes. AnnuJ. Deposfts fnescrow toprovfde funds for the purchase ofpensfon benefits for contractors’ employees contingent upon compl etlon of a specif~ed number of yearsof serviceby the employee. All~ for Purtie of Wf tf ~s . Estimated accumulated allowance necessary to purchase annuities for contractors’ employees basedon present and expected number ofyearsof servfce. ● II-8 1-7-93 DOE 2200.6A Attachment II-l DEPARTMENT OF ENERGY YOUR LOCAL FIELD OFFICE OUTSTANDING TRAVEL VOUCHER NOTICE The following travel voucher(s) has been outstanding for more than 30 days after the scheduled completion ofyour official travel and is therefore delinquent:

* Xxxxxxxxxx xxlxx/xx $ L- $— Xxxxxxxxxx xx/xx/xx Total ‘ – fi$-w ‘– $ %“Travel vouchers (SF-1012) are due in this o ic 1 calendar d Q after official travel is completed. If your advance exceeds your a ow reimbursable e costs, repay the excess with your travel voucher or sub it it by A ec or money order to the cashier office. 1 ocated i n Room XXXXXXX. Yo al may sub t e excess by mai 1 to the fol 1 ow- ing address: 9’ Department of Ener Street Address k City. Stat~ZIP Code \\v +> P1 ease make checks or n o vrs paya 1 to the Department of Energy, and identify the travel authorization nu e nd r social security number on the check to ensure accurate posting to your c t. 1 ure to repay delinquent travel advances or to O return unused ets shal re n CO11 ecti on by payrol 1 deduction. % P1 ease submi al ndi ng~avel vouchers. repay excess advances, and return unused tickets t y. If you have al ready submitted your travel vouchers. please contact your travel c r inator to ensure that your vouchers are forwarded promptly. If you have any quest~ about this matter. you may inspect our records. If extenuat- ing circumstances preclude you from settling your account, pl ease contact the travel office at [telephone number]. II-9 (and 11-10) 1-7-93 DOE 2200.6A Attachment II-2 Y-~YNOTKE DEPARTMENT OF ENERGY YOUR LOCAL FIELD OFFICE OUTSTANDING TRAVEL VOUCHER NOTICE The following travel voucher(s) has been outstanding for more than 60 days after the scheduled completion ofyour official travel and fs therefore delinquent: - -Trl- Xx xx De an ac re ● ) P1 un of m yo Th Re r to fo Please make checks odo~y orders payable to the Department of Energy and identify the travel authorlzatioMber and your social security number to ensure accurate posting toyour account. If you have already submitted your travel vouchers. please contact your travel coordinator to ensure thatyour vouchers are forwarded promptly. If you have any questions about the above, you have the right tolnspect our records. If extenuating circumstances preclude you from settlfng your account, please contact our a travel officeat [telephone numberl. 11-11 (and II-12) DOE 2200.6A 1-7-93 TERllJ 1. IMRMumM. a. ~. Toprescribe thepollcies and general procedures for receivables management and accountl ng. b. ~. Receivables lncludeaccountS receivable, loans recelvabl e,loan guarantees receivable, andlnteragency and lnterfund receivables. Detailed lnformationon DOE’s receivable accounts and related accounting entrlesis contained lnDOE 2200.10A, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES. Advances to vendors are covered ln Chapter 1, “Cash,’’andChapter II. “Advances, Prepaid Expenses, and Other Assets.” Collection ofcla~ms due from current and former DOE emploYeesis covered lnDOE2200.2B, COLLECTION FROM CURRENT AND FORMER EMPLOYEES FOR INDEBTEDNESS TOTHE UNITED STATES, of 6-9-92. The Federal Claims Collection Actof 1966 (31 U.S.C. 3701-3719) as amendedbY the Debt Collection Act of 1982 (Public Law97-365. 96Stat. 1754): the general regulations contained In the Federal Clalms Collect~on Standards (4CFR m

101-105); DOE’s overall debt collection regulations (1OCFR1O15): the Federal Tax Refund Offset Regulations (1OCFR1O18). aswell as relevant provisions contained in titles 2and40f the General Accounting Office (GAO) Manual for Guidance of Federal Agencies: Offlceof Management and Budget (OMB) Circular A-129, “ManagingFederal Credit Programs”: and volume I, part6, chapter 8000, of the Treasury Flnanclal Manual (I TFM 6-8000) constitute the framework for the Departmental policy and procedural requirements prescribed in this chapter. For the purposesof the Federal Claims Collection Standards, DOE’s overall debt collection regulations, and this chapter, the terms “claim” and “debt’’a red eemedsynonymous and interchangeable. In addition, for the purposes of this chapter, the term ”day’’ refersto acalendar day unless specified otherwise. c. Applicability. The applicability of this chapter is specified in DOE 2200.4. ACCOUNTING OVERVIEW, Chapter 1, ‘Introduction.- paragraph 1. Exceptions for power marketing administrations sales activities are as providedin applica- ble statutes, regulations, and contracts. Exceptions for uranium enrichment services a,reas provided in applicable statutes, regulations. service criteria. and contracts. d. _PolicY. The Departmental policy for receivablesis as follows: (1) To effectively mana9e all receivables from the pointof inception through collection, conversion to other assets, or writeoff; 111-1 DOE 2200.6A 1-7-93 ParagraDhld(2) (2) To record every receivableas soon as reasonably possible after the event ● that glvesrlsetolt. but lnnocase later than the endof themonth following themonthfn whfchthe event occurred; (3) To maintain separate accounts for receivables: keep detafledsubsfdiary records by debtor and approprfatfon or fund, as appropriate; and reconcile receivable balances to theapproprlate account balances recorded at the Departmental level; (4) To fssuebfllings on atimely basis and specify use of payment dellvery mechanisms that minimize total cost to the Government as awhole; (5) To collect the maxfmumportlon of any debt due DOE, at the earl festpossf- bletfme, under the circumstances of each case, wfthout fncurrfng excessfve costs: (6) To foster cooperation among DOE organizations and other Federal agencfes fncollectfng delinquent debts; (7) To establish andmafntafn allowances for uncollectfbl erecefvables based on realistic projections of uncollectable amounts: (8) To identffy and writeoff at the earlfest possfbletfme accounts that are uncollectable through available means: (9) To automate debt collection oDeratlons to the extent that automatfonfs ● cost-effectfve and feasible; ‘and (10) To follow all applfcablefnternal control standards prescribed fnDOE 1000.3B, INTERNAL CONTROL SYSTEMS, of 7-5-88. 2. JwGQMmG. a. ~. Record all receivables promptly after events occur that entftle DOE to collect funds. Normally, receivables are recorded as soon as reasonably possible after goods are delivered oracceptedo servfces areperformedo power bflls are issued. lfcensesorpermfts are fssued or renewed, fnterestfs earned, or debt determinations fnvolvfng disallowed costs or other overpay- mentsunder acqufsitfon or financial assistance instruments are rendered. Ifa collection Is received before the recording of the related receivable, the receivable shall rerecorded and thecollectfon shall be processed agafnst that receivable. Earned but unbflledrecefvabl esshall be recorded at the end of each monthly accountfngperfod.

b. ~. Record each receivable dlrectlyfnto theapproprfate general ledger balance sheet code or. for the power marketing admfnfstratfons, indirectly, through subsfdfary sales journal entrfes. Select theapproprfate account code bydeterminfng the responsible DOE entfty that must record the receivable, the type of debtor, or the type ofrecefvable. The @ 111-2 1-7-93 DOE 2200.6A Paragraph 2e(9) chart of accounts and explanation of each account aresetforthln DOE22OO.1OA, ACCOUNTS, CODES. AND ILLUSTRATIVE ENTRIES, Chapter I, “Balances heetC odes.” If necessary, record each receivable in asubsidlary ledger to segregate and summarize bllllng Information by debtor. c. ~orE-@. Record the recelvablein the appropriation or fund that will be credited when collections are accomplished. unless otherwise provided by law or Departmental policy. Except where statutory authorltyexlststo do otherwise, record additional charges (Interest, admlnlstratlve charges, and penal ties) into the followlng mlscell aneous receipt accounts (additional charges areexplafned lnparagraph 5b(13)): (1) Interest: Account 891435, General Fund Proprietary Interest, Not Otherwl se Classified, and (2) Admlnistratlve charges and penalties: Account 891099, Fines, Penalties, and Forfeitures Not Otherwise Classlfled. d. ~. Uhenadebt ispaidinpartl al or installment payments, the amounts collected shall beapplledflrst to accrued penalties and administra- tlve charges, then to accrued interest, and finally tothe principal, unless otherwlseprovlded by statute, regulation, or contract. e. ~. Retalnthe documentation of receivables and associated col- lectlon efforts for OMBCircularA-129, least the following and applicable: (1) Debtor’s name, number; effective management ofrecelvables. In accordancewlth “Managing Federal Credit Programs.” files must includeat Information to the extent that the lnformatjonls available address. telephone number, and taxpayer identification (2) Amount and nature of the debt: (3) Statement of purpose forwhl chcred~t was extended: (4) Payment schedules; (5) Account status; (6) Summary of contacts between DOE and the debtor: (7) Credit approval documentation (screening measures and subsequent approval actions): (8) Credit risk rating: (9) Financial and market analyses for commercial loans: III-3 DOE 2200.6A Paragraph 2e(10) 1-7-93 (10) Appraisal of collateral, including values of guarantees for secured loans; (11) All legal documents related to the indebtedness: and (12) Payment history, including any rescheduling. f. ~.The following documentation fs requfred for effective management and internal control: (1) Desk procedures incorporating appropriate internal controls and followup systems within thellmlts ofpractlcal operations: (2) Monthly aglngofdellnquent receivables by debtor, within balance sheet codes, using the time Intervals set forth ln paragraph 4a; and (3) Documentation ofall administrative collection action and detailed doc- umentatlonof the bases for compromfseor fortermlnation or suspensionof collection action. (1) (2) (3)

~. The contracting officer shall determine the amount of debt to be recovered under an acquisitionor financial assistanceinstru- ● ment. Sucha debt determination may beln the formofa negotiated settle- mentora unilateral debt determination. Negotiated debt determfnatlon settlement occurs where the two parties agreeon the amount of debt due DOE, for example, asa result of a contract price adjustment, overpayments due todlsallowed costs, or some other overpayment condition. For such debt determination, the contracting officer shall concurrently lssuea confirmation of the negotiated settlement to the debtor, When mutual agreement cannot be reached, the contracting offfcer shall Issuea unilat- eral debt determination (final decision rendered pursuant to the award’s disputes article). The contracting offfcershal 1 forward acopy of the confirmation of thenegotfated settlement orunllateral debt determinatlonto the servlclngflnance offlceupon issuance. ~. When the finance offlcerecelvesa copy of the confirmation of the negotiated settlement orunllateral debt determlnatlonon adebt involving disallowed cost or some other overpayment under anacqulsltion contractor financial assistance instrument. ftshall record the debt as a receivable. ~. (a) The conffrmatlon of the negotiated settlement orunllateral debt determination shall Include or beaccompanled by awrftten demand for payment, which shall serve as the invoice or the f~rst demand for payment. The demand shall be mafledon thedateitfs sfgned and dated ● by thecontractlng officer. The contractfngofflcer shall forwarda III-4 DOE 2200.6A Paragraph 2g(4)(b)fi copy of any accompanying demand for payment along witha copy of the related confirmation of thenegottated settlement orunllateral debt determination thatls forwarded to the servicing finance office. (b) The demand for paymentof adebtortginating underan acquisition contract or financial assistance instrument must be prepared in accordance w~th appllcabl eacqutsitlon or financial assistance regulations and the terms and conditions of the DOE award(s) Involved. The requlrementsof paragraph 5b(l) shall reincorporated unless prohibited or explicitly provided otherwiseby statute. regulation, or the terms and conditions of the DOE award fnstrument(s). (c) In cases where the contract debt amount and associated interest are determined under other contractual terms andcondltions (for exam- ple. cost accounting standards, defective pricing, or unallowable costs), the demand for payment should remodified accordingly. (4) LQUWIQ1. (a) Field Element Chief Ftnanci al Officers (Field CFO’s)shal 1 pursue collection In accordance with theprovislons ofparagraph5. However. collection action on apartlcularclalm shall becoordi- natedwlth the cognizant contracting officer. Should the contractor or financial assistance recipient challenge the contracti ng officer’s determinationon a claim througha formal dispute process or court action. the Field CFO, in coordination with the contracting officer, shall determine whether to suspend collection action until the appeal or court actionis resolved. However. lntereston the out- standing amount of the debt shall continue to accrue during the formal appeal process orlltigation, subject toflnal adjudication. (b) There are three methods to sat~sfyanawardee’s indebtedness: direct payment, recoupment, and administrative offset. The selectionof the appropriate method is dependent upon thenature of the debt. the necessity for making contractual price adjustments and funding changes, and the feastbllity of recoupment or offset.

1 ~. Adirect payment shall be required ifthe indebt- edness involves a price adjustment and funding changeor if recoupment cannot be effected wlthln a reasonable pertod oftlme. A Recoupment action should be initiated from amounts that are due orwtll become duewlthtn a reasonable period under the same award If the indebtedness does notlnvolve a price adjustment and funding change. The contracting officer and the Field CFO shall coordinate on any recoupment action that requires that recoupment be made from amounts that will not become due to the III-5 DOE 2200.6A Paragraph 2g(4)(b)fi 1-7-93 awardeeuntll more than 30days after the date of the first demand for payment. b The contracting officeror Field CFO, as appropriate, shall provide theawardee with written advance notfceof the recoup- merit actionon the amount of the debt andlnterest. Thenotlce maybe included inthe demand for payment and followup demands, if any. Recoupment shall not beusedas ameans to delayer avoid pricing adjustments or funding actions. a wstrative OffsM. When payment hasnot been made by the payment due date. the Field CFO may undertake action toadmin- istratively offset the debt and any late payment charges from payments owed theawardee on other Federal awards, In accordance with the provislonsof paragraph 5b(5). (c) The Field CFO shall advtsethe contracting officer when adebt referred forcollectlon ts collected orcompromfsed orwhen collection action is suspended or terminated. h. fore~. All receivable payment provisions within financial agreements with foreign entitles should be based onU.S. dollars. Advance approval from the Chfef Financial Officer (CFO) is required before consummat- ingany agreement that does not require payment inU.S. dollars. Inadditlon, the Departmentof the Treasury prescribes the forms and procedures for required ● reports relating toU.S. Government grants, loans, credtts. and contingent liabilities on loans, credits, and other payment-scheduling agreements Involving foreigners (I TFM 2-4500). (1) That Are Pavablein U&_IMMcs . Record receivables that are payable inU.S. dollars in the Department’ saccounting records lnthe same manneras any domestic receivable. (2) ivables~ PavablPin Foreian~ . If political orother circumstances indicate that DOE must enter into an agreement that allows a forelgnentlty to make paymentln foreign currency, the CFO must approve or re.ject the proposed agreement based on the best interest of the Government and available guidance from the Departmentof the Treasury. Receivables shall be recorded basedon costs incurred. The DOE finance office shall use one of the following methods to record and control a receivable payable in foreign currency: (a) ~eof Valw. The preferred foreign currency payment term requires that the foreign entity pay the equivalentof thespecifled U.S. dollar value of the goods or services rendered. Under this term, the foreign entity makes paymentin fts currency. The foreign currency lsdeposlted either with the Department of the Treasury or witha servicing bank that w~ll provide the appropriate credit to DOE after the currencyis exchanged. If the credit ts lessor more than ● I III-6 I 1-7-93 DOE 2200. 6A Paragraph 3a(Z) the recorded receivable value, DOEmust collect the additional funds for the shortage or must refund the overcollection.

(b) ~. In the nonmatntenance-of-val ue method, there ~s no contractual stipulation that fixes theU.S. dollar value to be received for the goods orservlces. Uhentheforelgn entity pays ltslndebtedness In its currency. regardless of fluctuations, theamount of the payment maybe more or less than theU.S. dollar value of the goodsor services. If the payment is more than the recorded receivable, the excess shouldbe recordedas revenue tnto miscellaneous receipts. Ifthepaymentfs less than the receivable, the unpaldbal anceiswrltten off (In accordance with the provisions set forth lnparagraph7) and recorded against operating expenses. f . lrma—T~. Recelvablesor portions of receivables that are not due within lyeararelong-terrn receivables: record them under the appropriate nonfund fund type balance sheet code. Review long-term receivables periodl- cally to determine whethercol lectlon should orcanbeaccompl fshed. Reclas- stfythe long-term receivables or portions of the receivables to the appropriate current receivable balance sheet codes when they become duewlthin 12months. 3. UIJJIK. (1) ~. Awrftten request ‘r demand for payment ofmoneys due DOE must be prepared and transmittedto the debtor. This request maybe~n the form of aletter. an invoice, or another form of billfng. It must be prepared, within the guidelines presented ~n paragraphs 3b through d, at the time of the event that entitles DOE tothe moneys. Theinltial written request or demand for payment is referred to as “theInvoice.” (2) ~. Ffeld CFO”S shall follow the procedures established by the Department of the Treasury forlnvoiclng and collecting amounts due from other Federal agencies. Except to the extent authorized by law, only the general requirements fortlmellness oflnvolc- Ingpresented in paragraph 3careappltcable to other Federal agencies’ receivables aswell as to other receivables. Available mechanisms for processing interagency transactions include the On-Line Payment and Collection System (OPAC): Standard Form [SF) 1080. “Voucherf orTransfer Between Approprlatlons and/or Funds”: and SF-1081, ‘Voucher and Schedule of Mlthdrawals and Credits.” (See ITFM6-10000 for further information on OPAC and I TFM 2-2500 for further Information on the SF-108O and SF-1081 processes. Addltlonal information onthesemechani smsts~ncludedin Chapter I, “Cash.”) I II-7 DOE 2200.6A Paragraph3b 1-7-93 ● (1) &ual YaM. When the amount due is known ,the invoice shall be prepared as an actual -value invoice. (2) ~. When the actual value of goods orservfces cannotbe specifically determined, an Invofce equal to at least 75 percent of the estimated value shall be prepared. This invoice shall be clearly identi- fled as partial and shall Include a statement that afinal Invofcewlll be prepared and transmlttedwlthfn 5working days of determination of the actual amount due, wfth final Invoice transmission pro~ectedto been or about a particular date.

c. ~lfnessof~. Invofces should be prepared and transmitted within 5workfng days after goods have been shipped or released, services have been rendered, determfnatlons on overpayments under acquisition or financial assistance instruments have been made, or payment lsotherwlse due. Invoice preparation and transmission may be completed later than 5worklng days after payment isdueff the delay can redemonstrated to be cost-effective. Where cost information necessary to determine theamount of the fnvofceis not avaflableuntfl the endof the month, the invoice should be prepared and transmitted as soonas reasonably possible after the accounting month end, but In nocase shouldit be transmitted later than 30 calendar days after the endof the month lnwhlch the costs were incurred. Once the involcels prepared and ready for transmission (mailed, hand-delfvered, or transmitted electronical ly ● or otherwise), it fs dated. This date fs the invoice date. For services renderedon a contfnufng basfs, the servfce shall be Invoiced monthly unless otherwise provided in the contract. If one DOE organfzatfon acts as the selling agent for goods or services provided by another DOE organlzatfon, thesellfng agent must beprovfded with complete billing fnformationby the 3rdworkfng day of the other DOE organization In order to meet the 5th-worklng-day requirement forlnvoiclng. d. ~. The content of theinvofce provfdes the basfsuponwhfch DOE can proceed to use all appropriate collection actions. Therefore, unless pro- hibfted orexplfcftly provfded otherwfseby applicable statute, regulation, loan agreement, negotiated contract, or acqufsftfon or ffnancfal assistance instrument, the content of the fnvofce must meet thefoll owlngrequlrements: (1) ~. The reason for and the amount of the fnvolce mustbe clearly fndfcatedon the face of the fnvolce. For example, fnvofces for the sale of products generally fnclude fnforrnatfo nreflectlngproduct type, quantity, unltprlce, and extended prfce. (2) ~Tow. Any rlghtto arevlewof the clalmwlthln DOEmustbe clearly fndlcatedon theinvolce. Reviews other than those extended prfor to admfnfstrative offset (see paragraphs 5b(5)(c)k and (6)(d)a) orprior toreportfngan fndfvfdual debt to a consumer reporting agency (see para- graph 5b(7)(b)M) normally shall be based upon thewrftten record. wftha ● III-8 1-7-93 DOE 2200.6A Paragraph4a response provided to the debtor wlthln 30 days of receipt of the debtor’s request for review. (3) =tTer~. The invoice must stipulate the terms by which DOErequi res payment. (a) (b) (c) (d) J)u~Da&. Although invoices are demands forlmmediate payment. the Iastdayuponwhlch thepaymentlsto be received by DOE Is the payment due date. after whfch the debt is considered delinquent. The payment due date on the invoice should not bemore than 30 days after the date of the invoice. ~. The invoice must inform the debtor ofwhere and how thepaymentlsto beremttted. The optlonsare by check orby electronic funds transfer: electronic funds transfer isthepre- ferred payment mechanism. Payment mechanisms and specific payment techniques, for example, lockbox arrangements, shall beused ina cost-effective manner andin accordance with Department of the Treasury requirements containedin ITFM6-8000 and specific agreements with the Department of the Treasury. These payment mecha- nisms are discussedin detail in DOE 2200.6A, FINANCIAL ACCOUNTING, Chapter I, “Cash.-

~. For any debt to which the provisionsof 31 U.S.C. 3717 apply. a statement shall be placed on the invoice that advises the debtor that additional charges (specifically, interest. penalties, and administrative charges )will be assessed inaccor- dance with 31 U.S.C. 3717 if payment in full is not receivedby the due date specified on the invoice. For suggested wording. see paragraph 5b(l)(a)Zf. For additional information on interest, penalties, and administrative charges, see paragraph 5b(13). Qme~CQWSR. A statement shall be placed on each invoice that advises the debtor ofDOE’s intent to use any applicable collection actions made available by the Debt Collection Actof 1982, as amended: the revised Federal Claims Collection Standards: and the Deficit Reduction Act of1984, as amended. if the debt is not paid when due. For suggested wording. see paragraph 5b(l)(a)Zg. 4. m. a. &inaS~. To control receivables effectively. aging schedules shouldbe used to determine the number and dollar significance of delinquent receiv- ables; to identify receivables that may become uncollectible; and to identify receivables that shoul dbe referredto credit reporting agencies, collection agencies, or the Departmentof Justice. Age each receivable at least monthly, based on the invoice date. Reinstated receivables shoul dbeaged basedon the original invoice date. The receivable should be classified asa current receivable if payment is due within 12 months and as a long-term (noncurrent) receivable if payment is not due within 12 months. Record and classify III-9 DOE 2200.6A 1-7-93 Paragraph4a b. c. d. delinquent receivables Into the following delinquency ranges: l-30 days, ● 31-60 days, 61-90 days, 91-120 days, 121-180 days, 181-360 days, greater than lyear and equal to or less than 2years, greater than 2years and equal toor less than 3years, andover3years. ~.DOE’saccountlng system shall provfde reports on receivables that areconsl stentwith orreconctlabl eto the amounts reported on SF-220-9, “ReportonAccounts and Loans Receivable Due from the Publfc.” tof~. Pursuant toITFM 2-4100, DOEIS requlredtosubmlt SF-220-9 to the Department of the Treasury quarterly. Each finance office submits its SF-220-9 information quarterly tothe CFOfor consolidation and appropriate distribution to the Department of the Treasury. (For additional information on SF-220-9 reporting requirements. seeITFM 2-4100 and DOE2200.8B, ACCOUNTING SYSTEMS, ORGANIZATIONS, AND REPORTING, Chapter III, “External Reporting.”) ~.Each ffnance office shall submttaauarterly receivables;eport tothe CFO. This report shall be prepared and’submittedfn accordance with instruct~ons issued by the Office of Departmental Accounting and Financfal Systems Development. (For further information on the quarterly receivables report see DOE2200.8B, ACCOUNTING SYSTEMS, ORGANIZATIONSO AND REPORTING, Chapter II, ‘Internal Reporting.”) 5. 4mUEmQM. a. ~. Each DOE Field CFO shall take aggress~ve action, on atimely basfs and –

with effective followup, to collect clalms arlslngout of DOE activities that have been recorded by the finance offlceas receivables or referred tothat office for collection. Inaddltion, DOE Field CFO”s shall cooperate fully with one another and with other Federal agencies in their debt collection activi- ties. Collection action shall be pursuedin accordance wfththe Federal Clalms Collection Standards (4 CFR101-1O5), the DepartmentOs debt collection regula- tlons (1OCFR1O15), and the standards set forth lnparagraphs 5b through d. However, the standards for the compromise of claims and suspension andtermina- tion (paragraphs 5cand d) do not apply toanyclalm for which there isanlndi- catfon of fraud, presentation of a false claim, or misrepresentation on the part of the debtor or any other party havfng an fnterestln the clafm. Only the Department of Justice has the authority tocompromfse. suspend, or terminatein such cases. Standards for admfnistratfve collection (paragraph 5b)do apply, butonly tothe extent authorized by the Department of Justice In apartfcular case. The Ffeld CFO shall coordinate wfththecognfzant contracting offfceron collection actions relatedto clafms that originate under acqufsltfon or financial assistance instruments (see paragraph 2g(4)). Where thesituatfon calls for further action ona claim atan integrated contractor to be fnftiated by DOE, theclalm shall be promptly reassignedto the cognizant ffeld element. (For fnformatlon on the accounting entrfes used to reassfgn a cl afm, see DOE 2200.10A, ACCOUNTS. CODES, AND ILLUSTRATIVE ENTRIES, Chapter III, “Accounting Entries.”) Furthermore, with regard to claims due from other Federal agencies. only the general requirements for thetfmelfness of demands for payment are ● 111-10 1-7-93 DOE 2200.6A Paragraph 5b(l)(a)~ applicable except to the extent authorized by law (see paragraph 3a(2)). The Field CFO should tryto resolvean fnteragencyclafm through negotiation. Upon wrftten request from the Ffeld CFO, the CFOwfll assfstin effecting such res- olution. If negotfationfaflsto resolve theclalm, the Field CFO should refer theclalm, through theCFO. to GAO forresolutlon. (See paragraphs 5e(l)(b) and (4)(b) for further Information on referrals to GAO. ) b. ds ~ of Cl af-mji To use the collection reme- dtesmade available under the Debt Collection Act;f 1982, as amended. and the Deffcft Reduction Actof 1984, as amended, DOE fsrequl red to fulfill certafn adminfstratfve requirements (4 CFR102, 10 CFR 1015, 26 CFR301.6402-6T. and 10 CFR 1018). The debtor must be clearly advised of the following: the basis and amount of the debt (orclalm); anyrlght toa review of theclalmwithln DOE; when payment lsto be received and how and where itls tobe sent; the fact that additional charges (Interest, admfnfstratlve charges. and penalties) will be assessed; thedebtor’s rfghts prior to collection by administrative offset: and, finally. actfons DOEmay taketo collect the debt. If at anytime during thecollectlon cyclea response from the debtor or other information becomes available that fndfcates that collection of the debt Is in jeopardy, DOE may take any of the collection actfonsdescrfbed in this chapter, asauthorlzed under the Debt Collection Act: the Federal Clalms CollectIon Standards: the Deflc$t Reduction Act, as amended: or DOE’sdebt collection regulations. The collection actions andthetfmes atwhlch they occur are required unless some other coursels strongly indlcatedby the fnformatlon available.

(1) w~. Once it lsdetermlned that aclalmexlsts. theclafm Isturned overto the cognizant Field CFO, whols then responsible for mafntafnfng theapproprfate accounting controls over the account and ensurfng that prompt and aggresslveactlon Is taken to collect the account. The Field CFO shall make approprlatewrltten demands of the debtor. These demands shall Informthe debtor of the consequences of fallureto pay the debt promptly. Atotal of three progressively stronger written demands atnot more than approximately 30-day intervals will normally bemade unless a response to the first or second demand or other Information fndfcates that further demands would be futlleor unnecessary. 1 The Invoice (that is, the first demand for payment) shal 1 be pre- pared and transmitted wfthin Sworking days after the event that entftles DOEto the funds. unless thecost-effectiveness ofa longer delay has been demonstrated. The fnvofcefs dated wfththe date onwhlch itis mafled, hand-delfvered. orotherwfse transmitted tothe debtor. z The invoice shall contain the followfng information: a The basfsand amount of the claim. 111-11 h Instructions onhowand where to remit payment. DOE 2200 .6A Paragraph 5b( 1 ) (a )2& 1-7-93 G Anyrlght toarevlew of theclalmwlthln DOE. d The date of the notiftcatlon (Invoice date). G The date by whfch DOE expects full payment (due date). f The provisions forassesslng theaddltlonal charges. Sug- gested wording is as follows: “Payments not received within [generally, 301 days of the invotce date will accrue fnterest on the amount due from the lnvoicedate at the rateof [Depart- mentof the Treasury current value-of-funds Interest ratel percent per annum. Acharge tocover costs incurred for pro- cesslng and handling a delinquent account will be assessed. Currently, the mlnlmum chargeis [amount of admlnlstratlve charges calculatedin accordance with paragraph 5b(13)(a)2al foreach 30-day perlodor portion thereof. There isno maximum. A 6-percent-per-annum penaltyon anyprinclpal amount notpald wlthln90days of the due date shall alsobe assessed for the period of delinquency.” g The provision covering DOE’ slntent to take thevarlous actfons necessary to collect, inserted directly after theadditlonal- charges statement. The suggested statement fs as follows: ● “Finally, collectlonactlons, including, but notllmited to, use of credltreportlng agencies. made available under the Debt Collection Actof 1982, as amended. and the revised Federal Clalms Collection Standards. and the use of the Federal Tax Refund Offset Program made available under the Deflclt Reduc- tion Actof 1984, as amended, will be used as necessary to ensure collection of the amount due.” (b) WmWkmmd. 1 If the debt lsnotpald bythe due date specified ~ntheinvolce, a second demand for payment shall bemalledwlthln 5worklng days after the due date. This is generally accompl fshed between the 31st and35th days after theoriglnal invoice date. z This demand for Immediate payment shall contain the same ffrst five items (paragraphs 5b(l)(a)fi-g) as the invoice. It shall also contain the follow~ng: A The amount of accrued interest as of the current date that is due with payment. h The amount of admlnlstratlve charges as of the current date that is duewith payment. 111-12 1-7-93 DOE 2200.6A Paragraph 5b(l) (c)ZG G Notlcethat apenalty 0f6percent Perannum~ s accruing and w1ll be due and payable If the debt becomes 91 days delinquent.

~ If the debt lsduefrom aCOmmercfal organization and has been reported toa credit reporting agency, a speclflc notice that thedebt has been reported to acreditreportln9 agency. (See paragraph 5b(7) for information onreportin9 commercial debt to a credit reporting agency. ) G If the debt lsdue froman Indlvfdual, thewrlttennotifl cation required priorto reporting the debt toa credit (consumer) reporting agency. (See paragraph 5b(7)(b)5 for thewritten notification requirements.) f Notice of intent to take other collection actions. Suggested wording 1s: “Ifltbecomesn ecessary, wemay collectby using administrative offset, a collection agency, orlltlgation.” g llesignation ofa DOE contact (name, mailing address, and tele- phone number of the contact), worded asapproprl ate basedon the content of the demand. (c) IhmRmMd. 1 If the debt lsnotpaldwlthin 30 days of thedate of the second demand, astronger, th~rd demand for immediate payment shall be mailedby registered orcertlfled mail within 5 working days. return receipt requested, with therecefpt retained as proofof dellvery. This is generally accomplished between the62dand 66th day after theorlginal invoice date, and the debt generallyis conslderedto beat least31 days delinquent. Z Thlsdemand forlmmedlate payment shall contain the same first five items (paragraphs 5b(l)(a)Za-&) asthelnvoice. It shall also contain the following: A The accrued interest and administrative charges asofthe current date that are due with payment. b The accrued penalty charges as of the current date and astate- merit that the accrued penalty charges will be waived only If payment isrecelved by close of business on the 90th day from the payment due date. G If the debt isdue froman Individual, areminder of the intent to report the debt to aconsumerreportln9 agency. Suggested wording is: “Ifthisdebtl snot paldoryou have not contacted us to make payment arrangements within 30days, wewlll report the delinquencyto aconsumer reporting a9ency.- 111-13 DOE 2200.6A Paragraph 5b(l)(c)2sl 1-7-93 ● ~ Notice of intent to take other appropriate CO1 lectfon actions. Suggested wordingls: ‘We are also considering the useofadminls- trative offset, the use of a collection agency, andlor litigation If wedo not receive payment infull by[datel.” g Deslgnatlon ofa DOE contact. Suggested wordingls: “If you have anyquestlons orifyouwishto review the basis of the amount due. contact [name. mailing address, and telephone numberof contact].” (d) ~. Additional demands for payment shall be sent that will contlnuetolnform thedebtor of the baslsof thedebt andof theadditlonal charges that areaccrulng asa result of thedelin- quency. Additional demands shall also continue to allow the debtor the opportunityto request an installment arrangement and to inform the debtor ofh~sor her continuing right to inspect the records and verify the amounts due. If aconsumer (individual )debtin excessof $100 becomes more than61 days delinquent andthecondtti onspre- sentedin paragraph 5b(7) (b) have been met, the debt shall normally bereported toa credit (consumer) reporting agency. Declslonson continued collection actions shall be made on the basis of informa- tion available. If, intheoplnionof the Field CFO. theadminlstra- tivecollectfon actions available (such aslnstallment payments, administrative offset, liquidatlonof collateral, or thesuspensfon or revocation of business relationships) would not result in prompt ● settlement of the debt, then the stronger available actions maybe pursued. Although thedecislonon continued collectlonactlon Is dependent onthe amount and any legal principle involved, the normal course of events indicates referral toa collection agency and subsequent determination to litfgate orwrfte off.

(e) on Prior ~istrative Offs.e.t Before col- lecting adebtby administrative offset, due proces; requires that certain Informationbe provided to the debtor. This Information can be provldedln the Invoice andin followup demands or by separate notice to the debtor ofDOE”s intent to collect the debt by admlnis- trative offset. An fnvolce or followup demand intended tomeet this due-process requirement must be forwarded by registered or certified mail, return receipt requested, with the recefpt retafned as proofof delfvery. Due-process procedures are covered inpara9raph 5b(5)(c) for admlnlstratfve offset under 31 U.S.C. 3716 and paragraph 5b(6)(d) for administrative offset under 31 U.S.C. 3720A. However. theinformatfon that must beprovldedto the debtor is summarized as follows: 1 The nature and amount of the debt, z The payment due date, a The intent to collect by administrative offset, 111-14 1-7-93 DOE 2200.6A Paragraph 5b(4)(a) 4 The right of the debtor to inspect and copy the DOE records related to the cl aim, s The right of the debtor to a review of the cl aim wfthin DOE (including theopportun~ty toprovlde, by a certain date, any available evldenceto beconslderedin the review). and h The right of the debtorto offer to make awrltten agreement to repay theamount of the clalm. (z) ~. Ifthe amountof thedebt and the debtor’s locatlon permit, personal interviews are encouraged. Care should be taken to document such Interviews, and avery clear repayment agreement shouldbe reached with the debtor. Followup intervlewsby telephone can actas strong inducementsto pay. (3) ~. The policy and procedures forcollectlng claims due from current and former DOE employees. including provision of due-process rights prior tocollectlng an indebtedness owed tothe United States through salary or other admin~ strative offset. are contained in DOE 2200.2 , COLLECTION FROM CURRENT AND FORMER EMPLOYEES FOR INDEBTEDNESS TO THE UNITED STATES, of 6-9-92. (4) ~.DOE shall consider anyavallable evidencein response toa debtor’s request fora review. Typically, the CFO(for any Headquarters debt) orthe Headof the Field Element (for any field element debt). oradeslgnee. reviews anddecldes the existence and amount of the debt. However, on a case-by-case basts. the CFOor the Head of the Field Element may request the Chairman of the Board of Contract Appeals toappolnt a reviewing official to review and decide theex~stence and amount of a debt. Insuch a case, the Board of Contract Appeals review- Ingofflcialwlll conduct therevlew In accordance wfth procedures estab- lishedby the Board of Contract Appeals. However, the Board of Contract Appeals reviewing official will conduct an oral hearing when the require- mentsof 10 CFR 1015.3(d) (l)(v) aremet. In any case. the debtor’s right toa hearingor reviewof the claim fs as follows: (a) The debtor shall be provided wlthareasonabl eopportuntty foran oral hearfng when an applicable statute authorizes or requires consideration ofwatverof the Indebtedness involved. the debtor requests waiver of the indebtedness. and the waiver determination turns on an issue of credibllityor veracity orwhen the debtor requests reconsideration of the debt and the reviewfngofffcfal determines that the question of indebtedness cannot be resolved by revlewof the documentary evidence (for example, when the validity of thedebt turnson an issue ofcredibflfty or veracity). Unless other- wise required by law, this oral hearing need notbea formal evlden- ttaryhearfng. although all signif~cant matters discussed at the hearing shall be documented. An oral hearing is not required for debt

111-15 DOE 2200.6A 1-7-93 Paragraph 5b(4)(a) collection systems In whlchdetermlnations of indebtedness or waiver rarely involve issues ofcredibtlity or veracity and therevlewing official has determined that revlewofthewrltten record is ordi- narilyan adequate means to correct prior mistakes. In administering sucha system. the reviewing official is not requiredto sift through all requests received in order to accord oral hearings in the few cases that may involve issues of credibility or veracity. In cases where an oral hearing is not required, the debtor shall be accordeda “paper’’h earing; that is, adetermination on the request forwaiver or reconsideration shall be made based upon a review of the written record. Waiver ofa claimer any related additional charges mustbe approved bythe CFOor the Head of the Field Element, ora designee. (b) If the claim is disputed in full or in part, the debtor’s written response to the demand must includea request for review of the claim within DOE. If the debtor disputes the claim, the debtor shall explain why the debt is incorrect. The explanation should be sup- ported by affidavits, canceled checks, or other available evidence. The written response must reach DOE by the payment due date. The demand letter must inform the debtor that supporting evidence mustbe submitted toDOEby the payment due date ifitis to reconsidered in the review. Awritten response received after the payment due date maybe accepted ifthe debtor can show that the delay was dueto circumstances beyond thedebtor’s control or failure to receive notice of the time limit. The debtor’s written response shall state the basis for the dispute. If only part of the claim is disputed, the undisputed portion should be paidby the date stated in the initial demand. (c) The debtor shall be notified, within 30 days of receipt of the debtor’s response whenever feasible, of whether determination of the debt has been sustained, amended, or canceled. If such action isnot feasible within 30days. the debtor should be notified, in writing, before the endof the 30-day period, that the request for waiveror reconsideration is being processed andthatnotifi cation asto whether the determination of the debt is sustained, amended, or can- celed will be forwardedby an estimated date. Normally, the results of the review should be forwarded tothe debtorno later than 60days after receipt of the debtor’s request. If the determination iSSUS- tained or amended, the debtor shall be notified ofDOE’s intentto take whatever collection action(s) is pending: for example. refer the delinquent debt to a consumer reporting agency and/or collect the debt by Federal tax refund offsetor any other administrative offset tools available unless payment or request for reconsideration is received within 15 days of the mailing of the notification of the decision. This notification shall be forwarded by registered or certified mail, return receipt requested, with the receipt retained as proof of delivery. 111-16 1-7-93 DOE2ZO0.6A Paragraph 5b(5)(a) (d) The decision of therevlewfn9 offfclal becomes final unless, within 15daysoflts receipt, the debtor requests reconsiderationof the decision. In cases where the decisfon lsmade by aBoard of Contract Appeal srevlewlng off~clal, the DOE official who referred the case to the Chalrmanof the Board of Contract Appeals also may request recon- slderationwlthin 15days of receipt of the decision. Reconsidera- tion will be granted only on the grounds of an asserted error oflawor new evidence that could not have been discovered before thedeclslon through the exercise ofduedillgence by the requesting party or that was not available before thedec~slon through no fault of the requesting party.

(e) Mhenadebtor’s written response to ademand for payment constitutes an appeal of or notlceof court action on aclaimthat originated under an acquisition contract or financial assistance instrument, the Field CFO shall refer the matter to the cognizant contracting officer foractlon. The Field CFO, in coordination with the con- tracting officer, shall determine whether to suspend collection action until the resolution of the appeal or court action; however, Interest shall continue to accrue during the formal appeal processor litigation (see paragraph 2g(4)(a)). (5) lstratlve OffsMUnder Tltl e3LW$WW16. of thg UnlW_S.W&s M. Col lect~on by admfnistratlve offset wil 1 be determined and pursued on a case-by-case basis withfn the overall guidelines established In the Federal Clafms Collection Standards (4 CFR102) and the DOEdebtcollec- tionregulatlons (1OCFR1O15). Fair and prudent decisions shall bemade that protect DOE”sflnancl al interests, give appropriate consideration to the debtor, give full consideratlonto all the Government’s interests, and ensure that the proper process ls followed. (a) ~. Hheneverfeaslble and not otherwise prohibited, after adebtor fallsto payaclalm, request arevlewof theclalm, or make an arrangement for payment, theclalm shall be collected by administrative offset agatnstobllgations of the United States to the debtor, pursuant to 31 U.S.C. 3716. In appropriate cir- cumstances, due consideration will be glventothedebtor’s finan- cial condition or to the question of whether offset would tendto substantially interfere with or defeat the purposes of the program authorizing the payments agalnstwhlch offset is contemplated. For example, undera grant programln which payments are madein advance of thegrantee’s performance, offset will normal lybeinapproprlate. This concept generally does not apply, however, where payment isin the form of reimbursement. Determinationas to whether collectionby administrative offset infeasible shall be made by the Field CFO, with appropriate coordination with any involved contracting officer or program official, on a case-by-case basis in the exercise of sound discretion. In reaching this determination. consideration should be given not only to whether administrative offset can be accomplished 111-17 DOE 2200.6A Paragraph 5b(5)(a) 1-7-93 ● both practically and legally but also to whether offset fsbest — sufted to further and protect all the Government’s fnterests. Although appropriate coordination fsrequlred. the final decfsfonon whether to enforce an offset remains the prerogatfveof the Ffeld CFO. Offset wfll be sought first wfthin the DOE offfcefnvolved, second wlthln DOE overall, and third through other Federal agencies. When other collection techniques have been unsuccessful, credit reports on delinquent accounts should reobtained to ldentffyoppor- tunftfes for admfnfstrative offset of amounts due to a delinquent debtor from other Federal agencfes. (See paragraph 5b(7) for addftfonal ?nformatfon on credit reporting agencies.) 1 2 ~j. Admlnfstratfve offset shall not beused to collect a debt under 31 U.S.C. 3716 more than 10years after the Government’s r~ghtto collect the debt ftrst accrued unless facts material to the Government”s rfght to collect thedebt were not known and could not reasonably have been knownby the DOEofflcfal or offfcfals who were charged with the responsfbflfty todfscover and collect the debt. EXCIMMS.

Debts owed by any State or local government: Debts arfsfng under or payments made under the Socfal Secu- rfty Act, the Internal Revenue Codeof 19540 or the tariff laws of the United States: or Any case in whfch collection by admlnistratfve offset of the type ofdebtfnvolved is explfcftlyprovfded foror prohibited by another statute. A Title 31 U.S.C. 3716 does not authorize use of administrative offset with respect to: ● 1 m. h However. unless otherwfseprovfded by contract orlaw, debts or payments that are not subject to admfnlstratlve offset under31 U.S.C. 3716 should recollected by admtnfstrative offset tothe extent authorized under common lawor other applicable statu- tory authority. The Field CFO should seek advice from appro- priate DOE legal counsel prforto attemptfngto exercise the right of offset under common law or other statutory authority. 3 edPu are governed by5U.S.C. 5514, 4 of~ tvFun.(1 wfll be made pursuant to5U.S.C. 5705 and31U.S.C. 3716 and regulations thereunder. ● 111-18 1-7-93 DOE 2200.6A Paragraph 5b(5)(b)s 5 ll~~bv~ativ~ Offset U.ukr311LLL 37X shall befn accordance with the procedural requirements set forth in paragraph 5b(5)(c). 6 tillect~~e bv MmMskWVP of fMdhukr 31 U.S. C. 37?QA shall befn accordance with the procedural requirements set forth ~nparagraph5b(6). 1 2 4 ~to QQE by other Federal agencies for administrative offset should belnwrlting and forwarded to: Department of Energy Office of Chief Financial Officer (CR-1) 1000 Independence Avenue, SW Washington, DC20585 Any requests received bythe CFO shall be immediately forwarded to the cognizant Field CFO for appropriate action. ~. A request frOIII a DOE Field CFO to another Federal agency holdlng funds payable to the debtor must be fn writing and forwarded, certified return receipt, asspeci- fled by the receiving agency In lts regulations, Ifsuchregu- lations are not readily avail able or identlflable, the request shouldbe submitted to the agency’sofflceof legal counsel witha request that it reprocessed in accordance with theagency”s internal procedures. Proce.sslna Tm. Requests to DOE shouldbe processed within 30 days of receipt. If such processing isnot practical or feasi- ble. notice to extend the tlmeperlod for another 30days shouldbe forwarded by the Field CFOto the requester at least 10 days before the expiration of the f~rst 30-day period. J&ltta Certlftti. Arequest toor from DOE must beaccom- paniedbyawrltten certification that the debtor owes the debt (including the amount) and that the requesting agency has fully complied with the provisions of4CFR 102.3. Field CFO’s should cooperate with other agencies in effecting collection unless the offset would beotherwlse contrary to law. Any such offsets, however, shall be fully coordinated with any involved contracting officer or program offici al. lna Contiact MtstotM HoltiDlisl . If adminis- tratlve offset cannot be effected through the accounts payableof DOE or another Federal agency, then the Field CFO should placea complete stop order against amounts otherwise payable to the debtor by placing the debtor’sname on the Department of the Army’s 111-19 DOE 2200.6A Paragraph 5b(5)(b)s 1-7-93 List of Contractors Indebted tothe Unfted States. commonly referred teas “The Army Holdup List.” Delinquent contract debts of$2000r more can be placedon the Army Holdup Llstby reporting the name and address of the contractor. the employer ldentiffca- tion number. andthe amountof the debt to:

Offlceofthe Chief of Finance Department of the Army Washington, DC2031O These debts will remalnon the Holdup List until they are collected or written off oruntll they rematnat less than $l,000for12 months. If any amounts are discovered by this procedure, they will be offset against the debt owed, provided that applicable provi- sions of4CFR 101-105 have been met and that the offset would not be otherw~se contraryto law. The Field CFOmust notffythe Army’s Office of the Chfef of Finance when debts placedon the Holdup List have been collectedor written off. When itis known that adebtor contractor has apayment due from another agency, the Field CFO should request that the remitting agency wtthhold from the payment the amount due DOE. Additionally, the Field CFO should cooperate with other agencies requesting the withholdingof amounts due from DOE payments. Withholding of amounts due shall befully coordinated with any involved contractlngofflcer or program offfcial. ● (c) R.u-Proc~ss Pro~ . 1 Before CO1 lecting a debt by administrative offset under 31 U.S. C. 3716, the Field CFO shall notify the debtor inwriting in the invoice and subsequent written demands or by separate 30-day notice ofDOE’s intent to collect the debt by administrative offset. Invoices and followup demands intended to meet this due-process requirement or any separate noticeof intent shouldbe forwarded by registered or certified mall , return receipt requested, with the receipt retained as proof of delivery. The debtor notification shall include the following: A Nature and amount of the debt. h Payment due date. G Intent to collect by administrative offset (ln accordance with the Federal Claims Collection Standards (4 CFR102)and DOE’s debt collection regulations (1OCFR1O15)), including requests to other Federal agencies tohelp in the offset whenever possl- ble, if: the debtor has not made voluntary payment; hasnot requested a hearing or reviewof the claim within DOE, as set outin paragraph 5b(4): orhas not made arrangements for payment, as set out in paragraph 5b(5)(c)K. bytheend of the ● 30-day notice period. 111-20 1-7-93 DOE2ZO0.6A Paragraph 5b(6) ~ Right of the debtor to Inspect and copy or, where this is not feasible, receive coplesof the DOE records related tothe claim. Any costs associated therewith shall be borne by the debtor. The debtor shall give reasonable notlceto DOEln advance of the date upon which it intends to inspect and copy the records involved. & Right of thedebtor toa hearing orrevlewof the clalm(lnclud- Ingtheopportunltyto provide, by a certain date, any available evidence to beconsldered Intherevlew). ~ Right of the debtor to offer to make a written agreement to repay theamount of the claim. Acceptance of suchan agreement fsatthe discretionof the Ffeld CFO. Determfnatlon ofaccep- tance shouldbe based ona balancingof the Government’s lnter- estln collecting the debt against fairness to the debtor. However, If the debt lsdellnquent and the debtor hasnot dis- putedlt, then thepresumptlon should beln favor of offset unless the debtor can establi shthatltwould impose undue flnanclal hardship orwould be agafnst equity and good con- science. For further information on collection fn fnstal lments, see paragraph 5b(12).

2 Incaseslnwhlch the above procedural requirements have been provfded to the debtor previously fnconnectlonwfth the same debt under some other statutoryor regulatory authority, for example, pursuant toanotfce of audit disallowance, the Field CFOls not required to duplicate those requirements before taklngadmlnfs- tratfve offset under 31 U.S.C. 3716. Furthermore, the Ffeld CFO may effect adminfstratfve offset under31 U.S.C. 3716 agalnsta payment to bemadeto adebtor before completion of therequfred procedures fffaflure to take the offset would substantially prejudf ce the Government’s ability to CO1 lect the debt and if the time before the payment isto bemade does not reasonably permit the completionof those procedures. Offset actfonbeforecom- pletion of the procedural protections should be taken only fflt fs necessary to preserve the Government’s abilfty to collect the debt, for example. when the IO-year statute of limftationson offset under the authorltyof31 U.S.C. 3716 fs about toexplre. Such prior offset shall be followed promptly bycompletfonof the requl red procedures. Amounts recovered by admfnlstratfve offset found nottobe owed to DOE shall be refunded promptly. (6) ~. Section 26530f the Deflcft Reduction Act of 1984 (31 U.S.C. 3720A). asamended by the Emergency Unemployment Compensation Actof 1991, authorizes DOEto refer past due legally enforceable debts to the Internal Revenue Servfce (IRS) for offset agafnst the income tax refundsof persons owing debtsto DOE. Referral of debtsto IRS shall be fnaccordancewfth the provisions set forth In thfs paragraph and anyaddftfonal fnstructfons provfded by Headquarters. The program 111-21 DOE 2200.6A 1-7-93 Paragraph 5b(6) requires that any forwarding of data orcollectlons to or from IRSbe coordinated through a sfngle agency point. (a) ~. The CFOcoordinates Departmentwide implementation of the program through the Director of the Officeof Financial Policy and a consolidated transmission and updateto IRS of all DOEdelin- quentdebtor records and related data through the Director ofHead- quarters Accounting Operations. Prior to the start ofeachyear’s program, Field CFO’s shall provide the Office of Headquarters Accounting Operations wftha descriptionof the estimated numbers. dollar amounts, and types oflndividual debts that would reeligible. To participatein agiven calendar year program, this information must resubmitted before the pre-offset address requests are submittedto IRS (see paragraph 5b(6)(c)). (b) Hia lbilitv Cri~. Apast due legally enforceable debt referable to IRSmust meet the following criteria: 1 It must be an obligation ofa natural person: Z Except in the case of judgment debts. It must have been delinquent forno more than IOyearso as of January Iofthe program year; 3 It cannot be collected currently pursuant to the salary offset provislonsof5 U.S.C. 5514(a)(l)owhlch allow thehead ofan agencyor adesignee to deduct froman employee’s current pay account the amount of theemployee’s indebtedness to the United States: A It must be ineligible for admfnfstrative offset (31 U.S. C. 3716(a)) because of an expl~cit statutory provision foror prohi- bltionagalnst use of adminfstratlve offset to collect the debt (31 U.S.C. 3716(c)(2)). or the debt cannot recollected currently by administrative offset under 31 U.S .C. 3716(a) by DOE; s DOE must have notlffed ormust have made a reasonable attempt to notify the taxpayer that the debt is past due and that unless the debt is repaid within60 days after the notice, the debt will be referred to IRS for offset agafnst any refunds of taxes;

Q DOE must have gtven the taxpayer at least 60 days from the date of notification to present evidence that all or part of the debt is not past due or legally enforceable, must have considered evfdence presented by the taxpayer, and must have determined that an amount of thedebtls past due and legally enforceabl e; Z The debt must have been disclosed byDOEto a consumer reporting agency as authorized by31 U.S.C. 3711(f), unless a consumer reporting agency wouldbe prohfbfted from using such information III-22 Q 1-7-93 DOE 2200.6A Paragraph 5b(6)(d)li by 15 U.S. C. 1681c or unless the amount of the debt does not exceed S1OO .00 ; B It must be at least $25.00: and 9 DOE records must not Indicate or otherwise contain evidence that the person owing the debt (or his or her spouse) has filed for bankruptcy under titlell of the United States Code (Bankruptcy Code), or DOE must establlshclearlY at the tlmeof the referral and must certify atthat time that theautomatlc stay underll U.S.C. 362 has been lifted or is no longer ln effect with respect to the person owing thedebtor hisor her spouse andthat the debt has not been discharged. (c) Pre-Off~ Prior tosubmlssion of thedebtsto IRS for offset (annual certlfi~ation), participating offices must obtain the latest IRS address Information froman Individual’staxaccount by submitting pre-offset request records tothe Officeof Headquar- ters Accounting Operations for forwardingto IRS. Thlssubmisslonls to obtain address Information for usein makinga reasonable attempt to notlfytheobligor of DOE’slntentto refer the debtto IRSfor offset. (d) DuP-PrUS Prowlure.s . Arequest forreductlon ofan IRS tax refund shall be made only after theofflce submitting the debt makes a deter- mlnation that an amount lsowed and past due and provides the debtor with 60days’ written notice. The notice must include the following: Theamount of the debt. including interest tothedate of the notice, and other charges, which may include but are not limited to an IRS offset fee: Notification that unless the debtis repaid within60 days from the date of the notice, DOE intends to collect the debt by requesting IRS to offset the debt (including interest and additional charges) against refunds of Federal taxes paid: Notification that the debtor hasa right toa review, including right to present evidence that all or part of the debt is not past due or legally enforceable; Notificatlonof the debtor’s opportunity to lnspectand copy the records involved; and A mailing address for forwarding any written correspondence anda contact name and phone number for any questions. DOE 2200.6A Paragraph 5b(6)(e) 1-7-93 (e) tlfiw . . 1 DOE is required to submit to IRS a written certification, along with the debts that are being referred, that certain conditions with respect to each debt have been met. Those conditions are stated in paragraph 5b(6)(b). Therefore, prior to submitting the debts to the Office of Headquarters Accounting Operationso par- ticipating offices must examine each debt to ensure that ~tmeets the criteriain paragraph 5b(6)(b) and must provfde written cer- tfffcation tothe Office of Headquarters Accounting Operations that such criteria have been met. Z Offices must submltthefoll owing information tothe Offl ceof Headquarters Accounting Operations for each debt being referred: A The name and theident~fytng number (social security number), h The dol 1 ar amount of the past due and legally enforceable debt,

L The date onwhlch the debt became past due, fl The subagency code, and E The case number usedto identify the debtorat the participating office. 3 When refundable credits (usual lyresultant from the filing ofa current-year tax return) are processed, IRSwill transferto DOE theamount of the obligation or theamount of the refund, whichever is less. (f) ~e. When an offset foranobligor occurs, IRSWI1l send an offset notice to the taxpayer fnforming himor her that all or part of the refund has been appliedto satisfy apast due obligation of another Government agency. All DOE offset notices will identify the Office of Headquarters Accounting Operations office name and address and provide a collect telephone number for the taxpayer to usein obtaining information regarding the offset. (g) Mf?klv Upw. Each participating office may submit weekly update Informationto either deleteor decrease anobllgation amount, to correctan error, or to indicate that an agency refundor repayment has been made. An office is not permitted to subsequently increase the amount of past-due legal ly enforceable debt owed byanlndividual named in the original referral to IRS. In addition, new accounts cannotbe added to the debtor masterful eonce the certified annual offset fileis submitted to IRS. III-24 1-7-93 D O E 2200.6A , Paragraph 5b(7) (a) , (h) ni stra~ Erronmus Payments . 1 IRS is charging DOEa set amount per offset to cover the Department of the Treasury’s costs for administering the program. In accor- dance with lOCFR 1015, this administrative charge istobe assessed against the debtor. Therefore, participating offices should addthls charge to the amount of each debt being referred. However, collection ofthis administrative chargeis made only from those debtors whose tax refunds actually are offset. IRSwill deduct the per offset cost from the amounts collected, thereby eliminating the need for monthly billing, and transfer the balance to DOE. After receiving notification that the offset has been made, the office must assess the offset charge against the debtor by increasing the correspond~ng account recei vableby the amount of the per offset cost, regardless of the amount collectedly IRS. Once the funds are received, the account receivable canbe decreased bythe gross amount collected byIRS. 2 If IRS Is notified that it has made an erroneous payment to DOE, IRSwill refund theamount to the proper individual and deduct this amount from subsequent offset collections madeon DOE’s behalf. If DOEis leftin adeficit situation because both DOE and IRS refunded an erroneous paymentto an individual, DOE shall be responsible for securing any outstanding balances from theindi- vldual receiving the duplicate refund if IRShad not been notified during the weekly updates. The officemust be sure to reestablish thedebtor”s account receivable for theamount of the erroneous payment refunded. 3 If during any weekly period the administrative charges and the amounts deducted for erroneous payments exceed the amount col- lectedon behalfof DOE, IRSwill bill the net difference toDOE’s agency location code. (7) USP of Cr~dlt Rej?~e.W-es . .

(a) Commercial debt that is greater than $100, orlndividual (consumer) debt that is greater than $100 and more than 61 days delinquent, shouldbe reportedto a credit reporting agency. Debts of lesser amounts maybe reported at thedlscretion of the Field CFO and the credft reporting agency. Del fnquent consumer debt fncludesdelfn- quent debt from employees. Employees and other consumers mustbe notlffed of the Department’s Intentto use credit reportfng agencies 60 days prior to the referral . Debt due froma State, local. or forefgn government is not reported. Reporting of information on delinquent debts to credit reporting agencies shall bein accordance with thel)epartment of the Treasury’s Guide to Credit Bureau Report- ing (8-90). The debtor must be provided with specific notice that the report has been made. In reporting individual debts. certain condf- tionsmust bemet, Including providing the individual debtors withat III-25 DOE 2200.6A 1-7-93 Paragraph 5b(7)(a) least 60-day written noti ceofthelntentto report the debt. Report- Inglndlvidual (consumer) debts ?nstrlct accordance wlththe Office of Management and Budget (OMB)-Department of the Treasury require- ments generally ensures compliance with the laws and rullngs des~gned to protect the rfghtsof individualso including the Prtvacy Actof 1974, as amended (5 U.S.C. 552a). (See paragraph 5b(7)(b) for additional information on reporting fndfvidual debts.) (b) In accordance with 31 U.S.C. 3711(f)(l), adelinquent individual debt maybe reported toacredlt (consumer) reporting agency, provfded the following conditions aremet: 1 2 3 4 5 A system-of-records notice indicating that lnformatfon in the system maybe disclosed toa consumer reporting agency has been published fn the Federal Register (FR). (DOE met this requirement through the 10-13-88 FRpubllcatlon ofan amended system-of- records notice for DOE-19, “Accounts Receivable Flnanclal System.” The amended system of records, which became effective on 11-14-88, provides for thedlsclosure of lnformatfon ondelfn- quentfndlvidual debts to consumer reporting agencies. (For additional Information on the amended systemof records, see53 FR 40119.) DOEhasrevfewed the debt and determined thatlt overdue. The debtor hasnot pafdoragreed to pay the debt fsvalld and under a written payment plan signed bythe debtor and agreed to bythe Ffeld CFO. (See paragraph 5b(12) for fnformationon collectionin Installments.) The debtor hasnot ffledforrevfewof the debt under paragraph 5b(7) (b)&l. The debtor has been provided written notfficatfonof the following: A That payment of the debt Is overdue; h That within 60days after the date of sendfng the notice, DOE plans todfsclose to a consumer reporting agency that the indfvfdual Is responsible for the debt; G The speclflc information to be disclosed to the consumer reporting agency: and ~ The right to a complete explanation of the debt (if that has not already been given), to dispute information fn DOE records about the debto andtoan administrative appeal or reviewof ● III-26 1-7-93 DOE 2200 .6A Paragraph 5b(7) (c)l I (c) the debt. Adminlstratl ve appeal or review of the debt must be conducted in accordance with the requirements of paragraph 5b(4). h DOE has reconsidered the Initial decision on the debt when the debtor has requested a review under paragraph 5b(7)(b)Jifl. Z The Field CFOhastaken reasonabl eaction to locate adebtor for whom the flnanceofflce does not have a current address to send the notification provided for under paragraph 5b(7)(b)!i.

~ The information disclosed to the consumer reporting agencyls limited to the following: d Information necessary to establish the identity of the debtor, Including the name. address, and taxpayer identification numberof the debtor: h The amount, status, and history of the debt: and G The DOE activfty or program under which the debt arose. 9 Assurances have been obtained from the consumer reporting agency that the agency is complying with all laws of the United States related to its useof consumer credit information. Any change lntheinformatlon associated with the debt mustbe promptly provided to each credit reporting agency to which the infer- mation was reported. Care must be taken to ensure that the informa- tion maintainedby the credit reporting agencyis current and correct. Prompt verification or correction of information abouta debt must be providedin response to a request from a credit reporting agency for verification oflnformation previously reported to that agency. (d) After the debt has been reported to the credit reporting agency, the debtor maybe provided with additional opportunitiesto settle the debt before its referral toa collection agency. In addition. con- sideration may be given to suspension or revocation of license or eligibility, liquidation of collateral, or installment collections. The debtor must benotifi edpromptly of all actions taken. (e) Credit reporting agencies also should be used for obtaining credit reports on debtors. Acredit report maybe obtained at anytime after receipt of the knowledge of the claim in order to aid inmaktng appropriate determinations on such matters as the following: 1 The collection and compromise of a debt: I I I I-27 DOE 2200.6A Paragraph 5b(7)(e)Z Z The collection oflnterest. penaltles. and administrative 1-7-93 charges: a The useof 4 The useof administrative offset; other collection tools; and s The likelihood of collecting the debt. (f) To report tnformattonon delinquent debts, agreements must beputin place wfth credit reporting agenclesto establish the conditions for the transfer, storage, protection, and distribution of account information. As an alternative, cross-servicing arrangements maybe made with another DOE finance office or another Federal agency that is wllllng to service thereportlng activity. Credit reports shall be obtained through Federal Supply Schedule contracts negotiatedby the General Services Administration. (B) ~. (a) (b) (c) (d) Use of a collection agency shouldbe considered whena debt becomes61 days delinquent. When a debt becomes more than 90 days delinquent. normally It should be referred toa collection agency. Referral to collection agencies does not apply to debts owed by foreign. State. or local governments orwhere prohibited by statute. When a debt becomes delinquent by 180days ormore, it shall bereferred toa ● collection agency unless it has been referred for litigation or repayment arrangements are being worked out. The debtor shall be provided with specific notlcethat the debt has been referred. (For detailed information on the use of collection agencies. see Treasury Guidelines, dated l-88.) The debt shall be referred to acredit or collection agency in the Federal Supply Schedule (industrial group 732, partl, section B) for professional debt collection services. The referral processis performed ln accordance with provisions ln the Federal Supply Schedule.

The cost associated with the collection action taken bythecollec- tion agency shall bean administrative cost to be borne by the debtor. (See paragraph 5b(13) (a)ti. ) Upon referral to a collection agency, no further contact with the debtor shall be initiated by DOE. If a debtor initiates any contact with DOE subsequent to referral. the debtor shouldbe referred to the collection agency. However, if the debtor offers to make payment, the finance office may accept the payment. The finance office shall Drovide immediate advice to the collection agency of any collection ;eceived after referral ofa debt. III-28 I 1-7-93 DOE 2200.6A Paragraph 5b(10)(b) (a) -IRS Aslflr~ssei If a debtor cannot be located through the usual search procedures, a“written request shouldbe sent to the nearest IRSdis- trictoffice to obtain the taxpayer”smailin9 address in accordance with 26 U.S.C. 6103(III)(2). Awritten requestto IRS must indicate that it involves aclalmfor money or propertY arlslngoutof DOE’s activities or referredto DOE. The written request must also state that the information will be used by proper DOE officers, employees, or agents in locating the taxpayer to collector compromise Federal claim against the taxpayer. The written requestto IRS must be signed by the CFOorthe Headof Field Element ora designee and must state that authorltyto collect or compromisea claim has been delegated to that individual . Initial requests signed bythe CFO orthe Headof Field Element mustbe accompanied bya copy of the receivables responsibilities assigned to that individual ’s position (see DOE 2200.4, ACCOUNTING OVERVIEW, Chapter III. “Responslbillties”) anda Copy oflo CFR 1015.5. Initial requests signed by adesignee mustbe accompaniedby copies of the foregoing documentation supporting the CFOor Head ofFleld Element authority, as appropriate, plus acopyof the redelegation ofthis authority to thedesf9nee’s position. (For additional information on requests to IRSfor taxpayers’ addresses. see Disclosure of Official Information Handbook, publishedby IRS, page 1272-354 (6-17-87), item, 1-27-87.) Mailing addresses obtained from IRS maybe disclosed to other agents. includtng collec- tion service contractors. to facilitate the collection orcompromlse of debts, except that amalllng address maybe disclosed to a consumer reporting agency only for the limlted purpose of obtaining a commercial cred~t report on thepartlcular taxpayer. (b) ~0 Undisputed debt ln excess of$600 due from an individual , partnership, or sole proprietorship thatis written off and closed out mustbe reportedto IRSvia IRS Form 1099-G, “Statementf orRecipients of Certain Government Payments .“ IRS form 1099-G isavailabl efrom IRS. (See paragraph 7ffor additional informationon the 1099-G notice process.) (lo) ion of Ilw o r Ellulbllitv . (a) When seeking the collection of a statutory penalty, forfeiture, or debt provided foras an enforcement aid or for compelling compliance, DOE should glveserlous consideration tothesuspensl onorrevoca- tionofllcenses or other prtvtleges for any inexcusable, prolonged, or repeated failure ofa debtor to pay such a claim, and the debtor should be so advised. (b) Any DOE organizati0nmak~n9 ,guaranteeing, insuring, acquiring, or participating inloansshoul dgiveserious consideration to suspend- ingordisqualifylng any lender. contractor, broker, borrower. or III-29 DOE 2200.6A 1-7-93 Paragraph 5b(10)(b)

other debtor from doing further business with it or engaging In ● programs sponsoredby it if the debtor fallsto pay itsdebts tothe Government within a reasonable time, and the debtor shouldbe so advised. (c) The failure of any surety to honor its obligations In accordance with 31 U.S.C. 9305 shall be reported to the Department of the Treasuryat once. Notification from the Departmentof the Treasury that a surety’s certlflcateof authorfty to do business with the Federal Government has been revoked or forfeited will be forwarded to all interested agencies. (a) If aDOE organization holds security or collateral that may beliqui- dated and the proceeds applfed on debts due it through the exerclseof a powerof saletn the security Instrumentor a nonjudlcfal foreclo- sure, it shoulddo soby such procedures If the debtor fails to pay the debt withina reasonable time after demand, unless the costof dis- posing of the collateral will be disproportionateto its valueor unless special circumstances require judicial foreclosure. (b) Collection from other sources, including liquidation of security or collateral, is not a prerequisiteto requiring paymentby a suretyor insurance concern unless such action is expressly requiredby statuteor contract. ● (c) The debtor must be provided with reasonable noticeof thesale, an accounting of any surplus proceeds, and any other procedures required by contractor law. (12) Lol 1 ~tal lmp~. . (a) Whenever feasible. and except as otherwise provided bylaw, debts (including interest. administrative charges, and penalties) should be collectedin full, in one lump sum. This lump sum collection principle holds true regardless of the method by which debts are collected. (b) If adebtor representsa financial inability topayin one lump sum. the debtor should provide DOE with financial statements. Basedon the information contained in those statements, the Field CFO, in coordination with any involved contracting officer. shall evaluate the debtor’sfinanclal condition and determine whether instal lment payments are acceptable. (c) Upon agreeing to installment payments, the debtor and DOEmust exe- cutea legally enforceable written agreement, signed bythe CFOora designee for Headquarters debts orthehead of the contracting activ- ityora designee for field element debts, that speficies all termsof ● 111-30 1-7-93 DOE 2200.6A Paragraph 5b(12)(d)2 the arrangement and that contains a provision accelerating the debt Inthe event that the debtor defaults. 1 For amounts that areschedul edtoberepaid inl yearor less, the minimum tnterest rate shall be the current value-of-funds rate, unless otherwise specified. For amounts that are scheduledto be repaldover more than lyear, the mlnlmum rate shall beelther the borrowing rate of a Department of the Treasury debt instrument Issued atthetlme the repayment agreement Ismadeand of the same duration as the scheduled repayments orthe current value-of- funds rate, whichever is higher. Borrowing rates for Department of the Treasury debt instruments of varlousmaturitfes arepre- sented in the Federal Reserve Statistical Release-H.150 “Selected Interest Rates,’’ published by the Federal Reserve Board. Current Department of the Treasury borrowing rates can alsobe obtainedby contacting the Office of Departmental Accounting and Financial Systems Development. The agreement should also state that admln- istrative charges and penalties will be assessed on delinquent payments ( I TFM 6-8025.50).

2 The size and frequencyof installment payments shoul dbeara reasonable relation tothesize of the debt and thedebtor’s ability to pay. 3 Ifposslble, the installment payments should be sufficient in size and frequency to liquidate the claim in not more than 3years. 4 Installment payments of 1 ess than $50 per month should be accepted only if justifiableon the groundsof financial hardship or for some other reasonable cause. (d) When holdlng an unsecured clalmfor administrativecol lection, the Field CFO should attempt toobtaln an executed confess-judgment note from adebtor when the total amount of the deferred lnstal lments will exceed $750. Aconfess-judgment note also maybe sought when an unsecured obligation of $7500rlessislnvol veal. (A confess- judgment note prepared by thet)epartment of Justice as an agency references Includedln this chapter as Attachment 11S-1.) The Field CFO, however, should obtain appropriate counsel approval of the actual confess-judgment note that will be used prior to execution of any such note. 1 When DOE attempts to obtain aconfess-judgment note, the debtor shall beprovidedwlth a written explanation of the consequences of slgnlng the note, and the finance office should maintain docu- mentation sufficient to demonstrate that the debtor signed the note knowingly and voluntarily. 2 Security for deferred payments other than a confess-judgment note maybe accepted in appropriate cases. 111-31 DOE 2200.6A Paragraph 5b(12)(d)~ a At the option of the Field CFO, installment payments maybe accepted notwithstanding the refusal of a debtor to execute a confess-judgment note or to give other security. 1-7-93 ● (e) If the debtor owes more than one debt and designates how a voluntary installment paymentts to be applied among those debts, that designa- tionmust be followed. If the debtor does notdes~gnate theapplfca- tionof the payment. the payment shall be applfed tothevarfous debts In accordance with the best interest of the United States, as deter- mlnedby the facts and circumstances of the particular case, paying special attention to applicable statutes of llmitattons. (13) .fstratlve ~. . (a) ~. Additional charges (specifically, Interest, administrative charges, and penalties) shall be assessed on debts owed toDOEln accordance with theprovlslons of31 U,S.C. 3717. Additional charges may notbe assessed for periods during which collection action mustbe suspended when a statute mandating wafveror review applies (4 CFR 102.13(h)). Interest, however, continues to accrueon indebtedness under an acquisition or ftnan- cial assistance instrument whfle such indebtedness is in the formal appeal process orin litigation. (See paragraph 5d(l)(c) for infer- mation on suspension of collection action while a request forwalver or administrative review impending). Generally, additional charges ● are assessed fn 30-day increments. and paymentof the full amountof the delinquent debt (principal plus anyadditfonal charges) within 30 days of afollowup demand fsconsidered paymentin full. 1 ~shall be assessed on amounts recefvedmorethan30 days after the date of the fnvoice. A Interest is assessed on principal only, not on interest, admin- fstrative charges. orpenaltieso except when a debtor has defaulted onaprevfous repayment agreement ora judgment has been obtained. b The Department of the Treasury current value-of-funds rate shall be the rate used for fnterest assessment unless a hfgher rate of interest fs necessary to protect the interest of the Government. Useofa hfgherrate of fnterestto protect the interest of the Government requires prior written approval by theCFO.

Q The fnitial interest rate charged shall remain in effect for the duratfon of the indebtedness unless adifferent rateis prescribed in prepayment schedule. ~ Interest is calculated based on a 365-day year except in a leap year, when it is calculated based on a366-day year. III-32 1-7-93 @ DOE 2200.6A Paragraph 5b(13)(c) R Interest begins to accrue on the date theinvotceis mailed, hand-delivered, or otherwise transmitted tothe debtor and continues to accrue untfl paymentls received. Interest shall be waived on the debtor any portion of thedebtpald wlthin30 days after theinvolce date. Interest maybe waived beyond thlsperlod, on a case-by-case basis, at the discretionof the CFOorthe Head of the Field Element or a designee. (See para- graph 5b(13)(c) for further information on waiverof I interest. ) 1 I 2 AdminiWatfv~ Ch.u9Es shall be assessedon all delinquent debts. i I A The amount ofadministrati recharges assessedis based on the additional administrative costs incurred for servicing the delinquent debt. Therefore, costs incurred beforean account has become delinquent should not reincluded in the amount determination, because thereis no statutory authority to recover these costs. Calculation ofadministrati vecosts should be based upon actual costs incurred or upon cost analy- ses establishing an average of actual additional costs incurred by the field element ln processing and handling claims against other debtors in similar stages of delinquency. Any costs incurred in obtaining credit reporting or collection agency services should reincluded. b These charges are first assessed on the date when the debt becomes delinquent (see paragraph 3d(3)(a)). and they continue to be assessed with each subsequent demand for payment. 3 Mn31tie.s shall be assessedon any principal portion ofa debt that is delinquent for more than 90days. ~ Apenalty of 6percentper annum is assessed on any portion ofa debt that is910r more days delinquent. D When the debt is910r more days delinquent, the penalty charge is accrued and assessed from the initial date the debt became delinquent, that is, theday after the due date onthelnvoice, through thedate ofeach followup demand for payment. If partial payment is received, the penalty ls accrued only onthe unpaid principal portion of the debt that is still delinquent. (b) .a of~, Additional charges shouldbe recorded when such charges are billed to the debtors. (c) W“ver of ~ . . The CFOorthe Headof the Field Element or adesignee may waive the collection ofaddltlonal charges 111-33 I DOE 2200.6A Paragraph 5b(13)(c) (Interest, penalties, and administrative charges) within the following gutdellnes: 1-7-93 ● Iffull or partial paymentis received wlthin30 days of the invoice date, the associated lntereStshal 1 be automatically waived. Interest due andcollectibl eon accounts paid within a reasonable period oftime, usually no more than 5days, after thedue date may bewalved. Ifthere isa request for reconsideration. administrative review, orwalver of the underlying debt undera permissive statute, Interest and other charges maybe waived wh~letherequestls pending. (See paragraph 5d(l)(c) for informationon requests for waiver or administrative review.) Interest may alsobe walvedif an installment repayment isfn effect and if levying Interest may jeopardize collection of the principal. Additional charges may bewalved when it is determined thatcol - — lection of the charges would beagalnst equity or good conscience, not cost-effective, orotherwlse not fn the best interest of the United States.

● (d) ~. 1 The provisions of31U.S.C. 3717 donot applyto the following: ~ Debts owed byany Stateor local government; ~ Debts arising under contracts that were executed before and werein effecton 10-25-82; Q Debts for whlchanapplicabl estatute. regulation requiredby statute, loan agreement, or contract eltherprohlbits such charges orexpllcitly fixes the charges that apply to the debts Involved; or JI Debts artsing under theSoCi al Security Act, the Internal Revenue Codeof 1954, or the tariff laws of the United States. Z Additional charges should reassessed on debts that arenot subject to31 U.S.C. 3717 to the extent authorized under common law or other applicable statutory authority or under specifically negotiated contracts, such as power marketing contracts. where late-payment charges shall be assessed according to contract terms. If an exempted debt becomes seriously delinquent and there ● is doubtas to whether authority exists to assess interest or other III-34 a1-7-93 DOE 2200.6A Paragraph 5c(l)(a)Z c. charges, the Field CFO should request a determinat~on, from the Office of General Counsel (GC-1) at Headquarters or from the officeof chief counsel of the field location. as to whether Interest or other charges can reassessed. dsfor C~se af—(lum. . . Before referral to the Department of Justice for litigation, the CFO for Headquarters clalmsand Headsof Field Ele- ments for field element claims or their designees, in consultation with desig- nated counsel, may compromise claims for money or property arising outof Departmental actlvftles where the claims, exclusive of interest, penalttes, and administrative costs, do not exceed $100,0OO (31 U.S.C. 3711). Claims in excess of $100,000 maybe compromised only by the Department of Justice (31 U.S.C. 3711). If DOE has evaluated acomproml se offeron aclatm that exceeds $lOO,OOOandwfshes toacceptlt, the CFOor the Head of the Field Elementor a designee must refer thematter to the Department of Justice (10 CFR1015.5(d) ). Further redelegation bythe CFO or Head of Field Elementof the authorityto compromise clafms and refer proposed compromises to the Department of Justice to adesfgnee mustbe fnwrfting. The written redelegatfon must fndicate clearly thedesfgnee, preferably bytftle orposftion, and thelimfts of the redelegate authorfty. Only the Comptroller General ora designee may com- promfse a claim that arises outofan exception madeby GAO fn the account ofan accountable officer, fncluding a claim against the payee, before its referral forlftlgation. (For further information on the referral ofclaims tothe Department of Justfce orGAO, see paragraph 5e.) (1) ors for ~ation fn ~ina a Claim . Claims may becompro- mfsed based on oneor moreof the following factors. All compromise offers should be evaluated in light of these factors. (a) JMMl itv To Pay . 1 Adebtmay be compromfsedlf the debtor is unable topay the full amount wfthfnareasonabl etfme. In determfnfng the debtor’s fnabillty to pay. consfder the following factors, among others: thedebtor’s age and health, present and potential fncome, and inheritance prospects: the possfbilfty that the debtor has con- cealed or improperly transferred assets: and the avaflabilfty of assets orlncome that may be realized by enforced collection proceedings.

z Adebtmay be compromised upon the refusal of the debtor to pay the claimfn full and DOE’s inability to enforce collection in full within a reasonable time by enforced collection proceedings. Consideration shouldbe glvento theapplfcable exemptions avail- able to the debtor under State and Federal laws in determining DOE’S ability to enforce collecti on. Uncertainty asto the price that collateral or other property will bring at forced sale may properly reconsidered in determfnfng DOEOs ability to enforce collection. A compromise effected on this basis should beforan III-35 DOE 2200.6A Paragraph 5c(l)(a)~ 3 1-7-9 b amount that bears a reasonable relation to the amount that can be recovered by enforced collection procedures. having regard for the exemptions available to the debtor and the time that collection will take. If DOE files do not contain reasonably up-to-date credit informa- tional abasis for assessing a compromise proposal , such informa- tion maybe obtained from the individual debtor by obtaining a statement executed under penalty of perjury showing thedebtor’s assets. liabilities, income, and expenses. Aform, such as Department of Justice Form OBD-500, “Financial Statementof Debtor,” or OBD-500B, “Financial Status,’’ maybe used for this purpose. Similar data maybe obtained from corporate debtors, using a form, such as Department of Justice Form OBD-500C, “Finan- cial Statementof Corporate Debtor,” or by resorting to balance sheets and additional data as required. Copies of the Department of Justice forms maybe obtained by contacting the Office of Financial Policy. (b) litiaatlve Probabiliti~. Adebt maybe compromised if thereis real doubt concerning DOE’s ab;lityto prove its case in court for the full amount claimed, either becauseof the legal issues involved or because ofabona fide dispute asto the facts. The amount accepted in compromisein such a case should fairly reflect the probability of ● prevail ingon the legal question involved: the probabilities with respect to full or partial recovery ofa judgment, paying due regard to the availabilityof witnesses and other evidentiary support for DOE’s claim: and related pragmatic consi derations. In determining thelitigative risks involved, proportionate weight shoul dbe given to the probable amount of court costs and attorney fees pursuant to the Equal Access to Justice Act that may be assessed against the Government ifit is unsuccessful in litigation (see 28 U.S.C. 2412). (c) ~.Adebt maybe compromised ifthe costof collecting the claim does not justify the enforced collection of the full amount. The amount accepted in compromise in such a case may reflectan appropriate discount for the administrative and litiga- tive costs of collection, paying heed to the time itwill taketo effect collection. Costs of collecting maybea substantial factor in the settlementof small claims, but normally will not carry great weight in the settlement of large claims. In determining whether the cost of collecting justifies enforced collection of the full amount. it illegitimate to consider the positive effect that enforced col- lection of some claims may have on the collection of other claims. Since debtors are more likely to pay when first requested todo soif DOEhas a policy of vigorous collection ofall claims, the fact that the cost of collection of anyone claim may exceed the amountof the claim does not necessarily mean that the claim shouldbe compromised. The practical benefits of vigorous collection of a small claim may ● include a demonstration to other debtors that resistance to payment isnot likelyto succeed.

III-36 DOE 2200.6A Paragraphed (2) (3) (4) (5) (d) established as an a Statutory penalties, forfeitures, ordebts dtoenforcement andto compel compliance maybe compromised ifDOE’s enforcement policy interrns of deterrence and securing compliance, both present and future. is adequately served by acceptanceof the sumto be agreed upon. Mere accidental ortech- nical violations may be dealt with less severely than willful and substantial violations. .Jnstallment PaY_. Compromises payable in installments shouldbe discouraged. However, if payment of a compromise by installments is necessary, a legally enforceable written agreement for the reinstatement of the prior indebtedness, less sums paid thereon, and acceleration of the balance due upon default inthe paymentof any installment shouldbe obtained, together with security in the manner set forth in paragraph 5b(12), in every case in which this impossible. ~. When two or more debtors are jointly and severally liable, collection action shall not be withheld against one such debtor until the other or others pay their proportionate shares. No attempt should be madeto allocate the burden of paying such claims among the debtors: rather, DOE should proceed to liquidate the indebtedness as quickly as possible. Care should be taken that a compromise agreement with one such debtor does not release DOE’s claim against remaining debtors. Theamount ofa compromise with one such debtor shall not reconsidered a precedent or morally binding in determining the amount that will be required from other debtors jointly and severally liableon the claim. ~.If DOE holds a debtor’s firm written offer of compromise that is substantial in amount and if the Department is uncertain as to whether the offer should be accepted, it may refer the offer, the supporting data, and particulars concerning the claim toGAOor the Departmentof Justice. GAO or the Departmentof Justice may act upon such an offeror return it to DOE with instructions or advice. (See para- graph 5e for additional information on referrals to the Department of Justice orGAO.) Restrict ions. Neither a percentageof adebtor’s profits norstock ina debtor corporation may be accepted in compromise of a claim. Innego- tiating a compromise with abusiness concern, consideration shouldbe given to requiring awaiver of the tax-l oss-carryforward and tax-l oss-carryback rights of the debtor. d. .rds for Sus~ndinu or Termlnatina Collection Action . Before referral to the Department of Justice for litigation, the CFO or designee for Headquarters claims and the Heads of Field Elements or designees for field element claims may suspend or terminate collection actionon claims for money or property arising out of Departmental activities where the claims (exclusive of interest. penalties, and administrative costs) do not exceed $100,000 (31 U .S. C. 3711). However, for claims that are plainly erroneous or clearly without legal merit, the CFO for Headquarters claims or the Heads of Field Elements for field element III-37 DOE 2200.6A 1-7-93 Paragraphed

claims may terminate collection action regardless of the amount involved, without the need for Department of Justice concurrence. The Comptroller General or designee may exercise this authority with respect to claims referred to GAO before their further referral for litigation. Collection actionon claims in excess of the $100.000 threshold can only resuspended or terminated by the Department of Justice (31 U.S.C. 3711). If it is determined that suspen- sion or termination of collection action is appropriateon a claim that exceeds $100,000. such action must be referred to the Department of Justice for approval (10 CFR 1015.5(d)). Redelegation bythe CFO or Head of Field Element of the authority to suspend or terminate collection action on claims or recom- mend suspension or termination to the Department of Justice must be in writing. The written redelegation of authority must clearly indicate the designee, preferably by title or position, andthe limitsof the redelegated authority. (For further information on the referral of claims to the Department of Justice orGAO, see paragraph 5e.) Termination of collection action on a claim does not preclude reinstatement of collection action, should it bewarranted. (1) ~. Collection activity maybe suspended under the following circumstances: 1 When DOE cannot locate adebtor after diligent effort. the Depart- merit may temporarily suspend collection actionon the claimif thereis reason to believe that future collection action maybe ● sufficiently producti veto justify periodic review and action on the claim, with due consideration for its size and the amount that maybe realized. Suspension of collection action against a par- ticular debtor should not defer the early Liquidation of security for the debt. Z The following sources may assist in 1 ocating missing debtors: telephone directories: city directories; postmasters; driver’s license records; automobile title and registration records; State and local government agencies; IRS district directors (see para- graph 5b(9)(a)); other Federal agencies; employers, relatives, and friends; and credit reporting and collection agencies. a Every reasonable effort shal 1 be made to locate missing debtors sufficientlyin advance of the barof the applicable statute of limitations (for example, 28 U.S.C. 2415) to permit the timely filing of suit if such action is warranted. 4 If the missing debtor has signed a confess-judgment note and is in default, referral of thenote for the entry of judgment should not be delayed because the debtor is missing. (b) Financ ”al Condition of Debtor Collection action mayalsobesus- pendedltemporarilyon aclaim~hen the debtor owns no substantial a equity in realty or personal property and is unable to make payments III-38 d-7-93 I DOE 2200.6A Paragraph 5d(l)(c)3 on the claim or effect a compromise at the time, butthedebtor’s future prospects justify retention of the claim for periodic review and action, and: 1 z 3 The applicable statute of limitations has been tolled or started running anew: Future collection can be effectedby offset, notwithstanding the statute of limitations, with due regard tothelO-year limitation prescribed by31 U.S.C. 3716(c)(1): or The debtor agrees to pay intereston theamount of the debton which collection action will be temporarily suspended, and such temporary suspension is likely to enhance the debtor’s ability to pay the principal amount of the debt with interest ata later date.

(c) tfor Waiver or Admuistrative Reviekf. . 1 If the statute under which waiver or administrative reviewis soughtis “mandatory” (that is, if it prohibits DOE from collect- ingthe debt before the Department considers the request for waiveror review). then collection action mustbe suspended until either DOE has considered the request for waiver orreview or the specified time limit forsaking the waiveror review request has expired and the debtor, upon proper notice, has not made such a request. Z If the applicable waiveror review statute is ’’permissive” (that is, if it does not require that all requests for waiver or review be considered and if it does not prohibit collection action pending considerationof awaiver or review request (for example, 5U.S.C. 5584)), collection action may be suspended pending action ona waiveror review request based upon appropriate consideration, on a case-by-case basis, of the following: d Whether there isareasonabl epossibility that awaiver will be granted or that the debt (in whole orinpart) will be found not owing from the debtor: h Whether DOE’sinterestswoul d be protected, if suspension were granted, by reasonable assurance that the debt could be recovered if the debtor does not prevail; and c Whether collection of the debtwill cause proven undue hardship of the debtor. s If the applicable statutes and regulations would not authorize refund to the debtor of amounts collected before consideration of the debtor’s waiver or review request in the event that DOE acts favorably on it, collection action should ordinarily resuspended III-39 DOE 2200.6A Paragraph 5d(l)(c)~ 1-7-93 ● (without regard to the factors specified in paragraph 5d(l)(c)Z) unless It appears clear, basedon the request and the surrounding circumstances, that the requestis frivolous and was made primarily to delay collection. (d) BM&u.@Y. Immediately upon receivi ngnotice that a debtor has filed for bankruptcy, take action to protect the Government’s interest. 1 If the debtor has not been referred to the Departmentof Justice, take appropriate steps tofilea claim with the court having juris- diction over the bankruptcy. Ifthe debt has been referred tothe Department of Justice, immediately forward acopyof the notice of bankruptcy tothe Department of Justice. Z If the information of record does not disclose whether there will be assets for distribution, address an inquiry to theclerk of the appropriate court to ascertain the amount of assets and liabilities of the bankrupt. 3 Offset or request tohave offset any amounts due the debtor that were earned before the date the petition in bankruptcy was filed and that are avail able for application to the debt. Amounts in excess of that required to satisfy known Government debts should be paid to the receiver. trustee, assignee. etc., as appropriate. A After complete development of all the facts and circumstances, if there isa doubtful question oflaw or fact concerning the debt, the liabilityof the debtor, or the entitlement to any amounts payable, promptly transmit the notice of bankruptcy and acomplete report to the Department of Justice. s Prepare aproofof claim with necessary documentation, asappro- priate, and refer ittothe Office of General Counsel at Headquarters orthe office of the chief counsel at the field location. (2) ~tion of Collection Activity . Collection of claims may be terminated under thefol lowing standards:

(a) il itv To Col lee-t Anv Su.&&antl al AU. . Collection action ona claim may be terminated when it becomes clear that the Government cannot collector enforce collection of any significant sum from the debtor. In deciding to terminate such cases, consider the judicial remedies available to the Government, thedebtor’s future financial prospects, and the exemptions available to the debtor under State and Federal laws. In determining the debtor’ sinability topay. consider the following factors, among others: the debtor’s age and health, present and potential income, and inheritance prospects; thepossi- bilitythat the debtor has conceal ed or improperly transferred 111-40 DOE 2200 .6A1-7-93 m (b) (c) (d) (e) Paragraph 5e assets; and the avail abi 1 ity of assets or income that may be realized by enforced collection proceedings. lnabl“litv To Locate Debtor . Collection actionon a claim maybe terminated when the debtor cannot relocated and there is no security remaining to reliquidated or the applicable statute of limitations hasrun and the prospects ofcollectin9 by offset, notwithstanding the bar of the statute of limitations, aretoo remoteto justify retention of the claim. ~. Collection action ona claim maybe termi- nated when it is likely that the cost of further collection action will exceed the amount recoverable. .~t. Collection action should be terminated immediately upon determination that the claim is without legal merit. Cl alm Cannot Be Substantiated by Fvidence . . Collection action should be terminatedon aclaimfor which the evidence necessary to prove the claim cannotbe produced or the necessary witnesses are unavailable and efforts to induce voluntary payment are unavailing. (3) Transfer of ClaiM. When there is doubt about whether to suspend or termi- nate collection action on a claim, refer the claimto GAO or the Department of Justice, as appropriate. for advice. In some cases for which termina- tion of collection action might otherwisebe considered under paragraph 5d(2)(a) or (c), claims are referred for litigation becausea significant enforcement policy is involved in reducing a statutory penalty or forfei- ture to judgment. This also applies tocases in which recovery ofajudg- mentis a prerequisiteto imposing administrative sanctions, such as suspending or revoking a license or the privilege of participating in a Government-sponsored program. Refer claims for which DOE holds a judgment by assignmentor byother meansto the Departmentof Justice for further action if renewal of the judgment lien or enforced collection proceedings are justified under the criteria discussed in paragraphs 5d(l) and (2). (Additional informationon referrals to GAO and the Department of Justice maybe found in paragraph 5e.) e. Referral of Cl aims to th Department of Justl ce or the General Accountlnq . . . ce for Reviewor L itiqatiorl . The CFOand the Heads of Field Elements. in coordination with the General Counsel. are responsibl e for timely referral of claims to the Department of Justice or GAOfor review or litigation. The Field CFO’S, in coordination with designated counsel. shall prepare the referral package. The CFO or the Head of Field Element or a designee shal 1 submit the referral package either directly or indirectly. through the Officeof General Counsel at Headquartersor the office of the chief counsel at the field location, to the Department of Justice orGAO, as appropriate. 111-41 DOE 2200.6A Paragraph 5e(l) 1-7-93

(1)~. (a) ~. Except as provided ln paragraph 5e(l)(b), all claims on which aggressive administrative collection action has been taken, as specifiedin paragraph 5b, which cannotbe compromisedor on which collection action cannot resuspended or terminated under paragraphs 5candd, shall be referred tothe Department of Justice for litigation. Claims that have been referred for litigation remain official DOE receivables. Anyamountscol- lectedby the Department of Justice against these referred claims are deposited with the Department of the Treasury for credit to DOE. Claims in excess of$100,0OO, exclusive of interest, penalties, and administrative costs, on which DOE is recommending compromise, suspension, or termination. also mustbe referred to the Department of Justice for approval , as noted in paragraphs 5candd. However, as noted in paragraph 5d, DOEmay terminate collection action without Department of Justice concurrence ina case in which the claimis plainly erroneousor clearly without legal merit. regardless of the amount involved. When the merit ofDOE’s claim: the amount owed on the claim: or the propriety of acceptanceof a proposed compromise, suspension, or termination is in doubt and the claim, exclusiveof interest, penalties, and administrative costs, exceeds $100,0OO, the matter shall be referred to the Department of Justice for resolution and instructions priorto proceeding with collection action or referral for litigation. Furthermore, claims where there areindi- ● cations of fraud, presentation of a false claim, or misrepresenta- tiononthepart of the debtor or any other party havingan interestin the claim shall be promptly referred to the Department of Justice. Referrals to the Departmentof Justice shall be directed as follows: 1 . a Llaims Over $500.00Q. Any claim for which the gross original amount is over $500,000 shall be referred to: Commercial Litigation Branch Civil Division Department of Justice Washington, DC20530 h Cldlns of $500.000 or I ess . Any claim for which the gross original amountis $500,0000r less shall be referred to the U.S. attorney at the following address: Department of Justice Central Intake Facility lllOBonifant Street Suite 220 Silver Spring, MD 20910-3312 I I I-42 I-7-93 e DOE 2200.6A Paragraph 5e(l)(b)3 c mmiKkwM~$6~Q . Aclaimof less than $600, exclusive of interest, penalties, and administrative costs, shall notbe referred for litigation unless oneof the following conditions ismet: i Referral is important to a significant enforcement pol icy, or jj- The debtor has the cl ear ability to pay the claim and the Government can effectively enforce payment, having due regard for the exemptions available to the debtor under State and Federal laws and thejudicial remedies available to the Government. Z Qther Referrals. Any claim forwhich therei san indicationof fraud, presentation of afalse claim, or misrepresentation and any claimin excess of$lOO,OOOo exclusiveof interest, pen- alties, and administrative costs, where DOEis recommending compromise, suspension, or termination or where doubt exists as to themerit of the claim, the amount owed, or the propriety of acceptance of a proposed compromise, suspension. or termination shall be referred to: Commercial Litigation Branch Civil Divisfon Department of Justice Washington, DC 20530 (b) w Referrals. In the following situations, referral or preliminary referral of claims shall bemadeto GAO:

1 Audit Exceptions Tak.n.by GM Claims arising from audit excep- tionstakenby GAO to payment;made by DOEmust be referred toGAO for review and approval prior to referral to the Department of Justice for litigation. Furthermore, only the Comptroller General may effect the compromise of aclaim that arises outofan exception made byGAO in the account ofan accountable officer, including aclaim against the payee, before its referral tothe Department of Justice for litigation. Z Rgubtful Cases. Claims of$100,0OOor less, exclusive of inter- est, penalties, and administrative costs, where doubt exists asto the merit of the claim; the amount owed: or the propriety ofaccep- tanceof aproposedcompromi se, suspension. or termination, shall be referred toGAO for resolution and instructions prior tocol- lection action or referral to the Department of Justice for litigation. a jnteraaen&y Claims that cannot be resolved bynegoti ation between the involved agencies should be referredto GAO for resolution. III-43 I DOE 2200.6A Paragraph 5e(2) 1-7-93 ● (2) Timinuof Referrals for Iltiaation. . Referral s for litigation shouldbe made as early as possible, consistent with aggressive collection action and observanceof the requirements contained in this chapter, and, in any event, well within the period for bringinga timely suit against the debtor, with due regardto the statute of limitations. Ordinarily, refer- rals should be made within lyear of final determination of the fact and theamount of the debt. (3) ~.Once aclaim has been referred toGAOor the Department of Justice, DOE shall refrain from having any contact with the debtor and shall direct the debtor to GAO or the Department of Justice, as appropriate, when the debtor raises questions about the claim. GAO or the Department of Justice, as appropriate, shall be notified immediately of any payments received from the debtor subsequent to referral ofa claim. (a) ~. unless an exception has been granted by the Department of Justice in consultation with GAO, the Claims Collection Litigation Report (CCLR), which was officially implementedby GAOon 1-20-83, shall beused withall referrals, either for litigation or to obtain approval with respectto compro- mise, suspension, or termination ofacl aim. (Copies of the CCLRmay be obtained from the Office ofChief Financial Officer or the local U.S. attorney ’suffice.) As required bythe CCLR, the following information shall reincluded: 1 ~. A checklist or brief summary of the actions previously takento collector compromise the claim shall be forwarded with the claim upon its referral . Ifany of the administrative collection actions enumerated in paragraph 5bhave been omitted. the reason for omission must be provided. GAO, the U.S. attorney, or the Civil Division of the Department of Justice may return claims at its option when thereis insufficient justi- fication for the omission ofoneormoreof the administrative collection actions. 2 ~. The current addressof the debtoror the name and address of the agent for acorporation upon whom service may bemadeshal 1 be provided. Reasonable and appropriate steps must be taken to locate missing parties in all cases. Refer- rals to the Departmentof Justice for the institution of foreclo- sure or other proceedings in which the current address of any party is unknown must be accompaniedby alistingof the prior known addresses of the party and a statement of the steps taken to locate that party.

3 Credit Data. Reasonably current credit data indicating that there is a reasonabl e prospector effecting enforced collection from the ● debtor, having due regard for the exemptions available tothe 111-44 @ 1-7-93 (5) (6) debtor under availableto DOE 2200.6A Paragraph 5e(6) State and Federal Iawsandthejudiclal remedies the Government, shall reincluded. A Such credit data may take the form of a commercial credit report; an agency investigative report showing thedebtor’s assets, liabilities, income, and expenses; the individual debtor’s own financial statement executed under penaltyof perjury reflecting the debtor’s assets, liabilities, income, and expenses; or an audited balance sheet ofa corporate debtor. L Such credit data may be omitted if: i Asurety bond is available in an amount sufficientto satisfy the claim in full; U The forced sale value of the security available forapplica- tiontothe Government’s claim is sufficient tosati sfythe claimin full; m DOE wishes to liquidate 1 oan or other CO1 lateral through judicial foreclosure but does not desire a deficiency judgment: jy The debtor is in bankruptcy or receivership; y The debtor’s liability to the Government is fully coveredby insurance, in which case DOE shall furnish such information as it can develop concerning the identity and address of the insurer and the type and amount of insurance coverage: or yi The nature of the debtoris such that credit data are not normally availableor cannot reasonably reobtained, as in the case ofaunit of State or local government. (b) Kferral toGAQ. Referrals ofclaimsto GAO as required by paragraph 5e(l)(b) shall beln accordance with the instructions, including monetary limitations, contained in theGAO Policy and Procedures Manual for Guidance of Federal Agencies and in paragraph 5e(4)(a). _Preservation of Fvideu. Caremust betaken to preserve all files, records, and exhibits on claims referred ortobe referredto the Depart- mentof Justice for litigation orto GAO. Under no circumstances shall original documents be sent to the Department of Justice, tothe U.S. Attorney, orto GAO without specific prior approval of the Department Of Justice, the U.S. Attorney. orGAO. Copies of relevant documents shouldbe sent whenever necessary. FO11OWW. Action shouldbe taken periodically to determine the statusof referred claims, Some suggested followup frequencies are asfol OWS: at III-45 DOE 2200.6A Paragraph 5e(6) least monthly quarterly for for recommended compromises and doubtful claims and at least recommended suspensions or terminations and claims referred for litigation. 6. ~. a. &.uu. In accordance with general lyaccepted accounting princi plesand practices and pursuant totitle 2ofthe GAO Manual . allowance foruncollect- ible receivables should be usedto reflect the estimated losses that may occur from amounts reflected in the receivable accounts. The allowance account should be reviewed periodically (preferably. each month) to ensure that adequate provisions have been made to cover the estimated losses. b. &timation MethodS . The allowance for uncollectibl ereceivables may beestab- lishedby using thespecifi c identification method or the general allowance method, or acombination of the two. In each method. an objective analysis must be performed, considering all outstanding non-Federal receivables: the agesof the receivables: referrals toGAO. the Departmentof Justice, and commercial collection agencies; and past experiences. In addition, the selected method should be documented and should be consistently applied from year toyear unless current circumstances justify a change in method. When a method is changed, the Field CFO should prepare and maintain documentation of the justification.

(1) (2) ~. The specific identification methodis preferable for finance offices with low volumes of receivables. Review each account to determine its ultimate collectibility and establish the allowance account based on that review. The review should consider general credit knowledge about the debtor, potential administrative offset alternatives, and cost-effectiveness of pursuing the collection of the receivable. The allowance account shoul dthen reflect an estimateof the portion of all receivables on the books that will ultimately prove to be uncollectible. General Allowance Metro. The general allowance method is appropriate when detailed review of each delinquent account is impractical and unnec- essarydue to the high volumeof receivables. The estimate developed by this method should be based on past experiences and trend analysis. This methodology may include several variations, as in the following examples: (a) Percentage of receivable losses relative to monthly gross salesof goods or services. The percentageof receivable losses relativeto gross sales maybe based on an average of the past 5years. (b) Full provision to cover the possible loss of all receivables that are more than 6months delinquent. III-46 1-7-93 a DOE 2200.6A Paragraph7c (c) Percentage of delinquent accounts, as hypothetically shown below: Davs Past Due Balance Perce tn MIQLWi 0-60 $2,045.00 0.5 $10.23 61-90 3,995.58 2 79.91 91-120 0.00 8 0.00 Over 120 + 50 J)Q 12 + 18. OQ Total: MU.2UiQ Total: $108.14 a. ~ral. Every effort should bemade to identify at the earliest possible time the receivable accounts or portions thereof that are uncollectible through available means in order to terminate collection activity or reach a compromise on theamount of the debt that can recollected. Debts for which collecti on action has been terminated and amounts that have been compromised shall be promptly written off the DOE accounting records. Awritten-off debt maybe retained for offset or screening purposes until such time as it is closed out and reported to IRS as debtor income (see paragraph 7f for further information on reporting written-off receivables to IRS). Closeout occurs when the Field CFOdetermines that additional future collection actions ona written-off debt would be futile. b. ~uthoritv. As specifi ed in paragraphs 5candd, the authorityto compromiser terminate collection action on claims that do not exceed $100,000 andto recommend such actions to the Department of Justiceon claims that exceed the $100,000 threshold rests with the CFO for Headquarters cl aims orthe Headsof Field Elements for field element claims. DOE may need to referan account to the Department of Justice for its concurrence oncompromisi ng or terminating col- lection action on claims (where such concurrence is required), but the author- ityto writeoff claims as administratively uncoil ectible rests with theCFO for Headquarters claims and Heads of Field Elements for field element claims, regardless of the doll ar amounts involved (10 CFR 1015.5(b)). Further redele- gation of CFOor Headof Field Element authority to writeoff claims toades- igneemust bein writing. The written redelegation must indicate clearly the designee, preferably bytitleorposi tion, and the dollar limits of the author- ity. The dollar limits ofa designee’s authority shall be consistent with the requirement that the writeoff of progressively higher amounts be authorizedby progressively higher offi cials. The signatures of all officials participating or concurring in each writeoff decision shall be obtained before the debt is written off.

c. wlines~. Reviews of delinquent receivabl es to identify and write off uncollectible receivables should be accomplished on a monthly basis. Inmost a cases, unless the receivables have been referred toGAO, the Departmentof Justice, or commercial collection agencies, determination for writeoff should be accomplished within 6months from the date of invoice. Periodic followup with thel)epartment of Justice, at least monthly for referred compromises and DOE 2200.6A Paragraph7c 1-7-93 m at least quarterly for referred terminations, should be performed to determine the status offending compromises and terminations and encourage Department of Justice determinations so that, if appropriate, uncollectible amounts involved can rewritten off. d. tatiu . Compromised amounts and administratively uncollectibl e receivables on which collection action has been terminated and on which the Department of Justice has closed its files shall be recordedin amannersuffi- cientto support writeoff. This includes written approval to writeoff the compromised amount or receivable and the signatures of all officials partici- patingor concurringin the writeoff decision and retention of the approval and signatures with theappl icable compromisedor written-off receivable. e. klriteoff. Compromised amounts and uncollectible receivables that have been approved for writeoff shall be recorded in the accounting records in accordance with entries prescribed in DOE 22OO.1OA, ACCOUNTS. CODES, AND ILLUSTRATIVE ENTRIES, Chapter III, “AccountingE ntries.” f. gortof Written-Off Receivabl~. DOEis required to report to IRSany undisputed principal amountin excess of $600 due froman individual, part- nership, or sole proprietorship that has been written off and closed out. Amounts of$600 or less maybe reported. Related administrative costs and (to the extent that they are not tax deductible by the debtor) interest costs also mustbe reported. This reporting requirement does not include any obligation o discharged in atitlell bankruptcy case. for a debtor known to be insolvent, or fora qualified business indebtedness. The writeoffis reportedon IRS Form 1099-G, “Statementfor Recipients of Certain Government Payments.” The debtor must be provided with a copy of Form 1099-Gor a written statementof the impending 1099-G report byl-310f theyear following writeoff of the debt. The 1099-G must be sentto IRS by 2-280fthe same year. No additional collection action may be taken by DOE after issuing the Form 1099-G; however, voluntary repayment of the debt maybe accepted. Each accounting office shall maintain adequate manual or automated records to facilitate the preparation of IRS Form 1099-G. However, because IRS Form 1099-G requirements are subject to change fromyear toyear, updated information on current IRS requirements is apre- requisite for the preparation ofeachyear’s reports. The 1099-G reporting requirements also coveredin DOE2200.8B, ACCOUNTING SYSTEMS, ORGANIZATIONS, AND REPORTING, Chapter III, “External Reporting.” 9. ~. Upon receipt of a collection againsta written-off receivabl e, the receivable account shouldbe reestablished. The collection is then processed in the same manner as It would have been if the receivable had never been written off. (For information on the accounting entries for reestablishment ofa receivable, see DOE 22OO.1OA, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES, Chapter III, “AccountingE ntries.”) Ifa collection is received after a receivable has been referred toGAO. the Depart- ment of Justice, or a collection agency, inform the appropriate office as ~oon as possible. ●

III-48 1-7-93 [Ml DOE2ZO0.6A Attachment III-l -F~MFNT FOR JUDGMFNTY [w] For value received, I (we together and individual IY) promise topaythe sumof $ with interest at the yearly rateof %inmonthly paymentsof $ The installments, made payable toU.S. Department of Energy, areto be delivered”to: [Complete mail ing address of finance of fi w] or are payable at the [finance office location] of the U.S. Department of Energy and are due onor before the [5thlday of each month unti 1 the balance is fully paid. If any installment payment is received more than ten (10) days after it is due, the entire amountofthis debtwill become immediately due and payable attheoption oftheU.S. Department of Energy. Any time after this debt becomes due and payable, Ipermitany U.S. attorney, assistant U.S. attorney, or attorney of record to appear for me and to have the court clerk administratively enter judgment against me in any court. The judgment will be for the entire amount of this debt, with interest, less payments actually made. IN ADDITION, I WAIVE BOTH THE RIGHTTO BE NOTIFIED AND THE RIGHTTO BE GIVEN COURT PAPERS AND HEREBY CONSENT TO HAVEAJUDGMENT ENTEREDAGAINSTME FORTHEUNPAID BALANCE OF THE DEBT. FURTHER, IAGREETO WAIVEMY RIGHTS TO HAVE THE CASE BROUGHT IN MY LOCAL COURT, TO RELEASEANY ERRORS THAT MAY INTERVENE IN ENTERINGA JUDGMENT AGAINST ME OR IN ISSUING JUDGMENT PAPERS OR PROCEDURES, ANDTOCONSENT TO THE RIGHTS OF ENTRY AND ENFORCEMENTON THIS JUDGMENT. IMAKE THISWAIVERWITH KNOWLEDGE OFTHEEVENTSDESCRIBEDHEREIN AND WITHADVICEOFLEGALCOUNSEL. FURTHER, THIS WAIVER ISMADE KNOWINGLY. VOLUNTARILY, AND INTELLIGENTLY, AND WITHOUT ANY DEGREE OF DURESS OR COMPULSION WHATSOEVER. Date: rDebtor ssiunaturels rDOF represemtlve s slanatu el. , . r ~: BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHTTO NOTICE ANDACOURTTRIAL. IFYOU DO NOT PAY ON TIME, A COURT JUDGMENT WILL BE ENTERED AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE. THE POWERS OFA COURT CAN THEN BE USED TO COLLECT PAYMENT FROM YOU, EVEN IFYOU HAVE CLAIMS AGAINST YOUR CREDITOR. 111-49 (and III-50) DOE 2200. 6A 1-7-93 -.. . ---- -.. 1. 2. JJIAPI ~K IY -I NVFSTMFNTS llmuumm. a. purpose. To establish policles and general procedures for themanagement of and accounting for all moneys receivedby DOE that areavallable for investment in interest-bearing Department of the Treasury securities. b. Applicability. The provisions of this chapter apply to all DOE elements that manage funds with investment authority. Investment authority is alegal right granted toa Federal agency, through congressional legislation, which autho- rizes the investment of cash balances in interest-bearing Department of the Treasury securities. c. _tioM. This chapter does not apply to pension funds for contractor employees. wIREMFNTS for investments areas follows: a. Effectively manage investments from the critical investment planning process through the final redemption of the investment securities; b. Invest only non-Federal funds; c. Limit investments to Departmentof the Treasury securities that are purchased through the Department of the Treasury. and noton the open market; d. Maximize return on investments within stated DOE or Department of the Treasury policies; e. Maintain sufficient liquidity to meet operational disbursement requirements; f. Record investment transactions on a timely basis, but not later than the end of the month in which the transactions occur; 9. Maintain investment accounts on an accrual basis:

h. Maintain subsidiary investment records as appropriate: i. Establish operating procedures to preclude overinvestment of funds: and j. Restrict initiation of investment activities to employees specifically delegated the authority to perform this function. Iv-1 DOE 2200.6A Paragraph3 3. ~. a. GE.W2al. (1) Moneys available for investment arecategor judgments, or international agreements. 1-7-93 zed asprovldedby law, legal (2) As amatter of Pollcy, only De~artment of the Treasury market-based special (MK) securities maybe purchased as an investment. One exception tothis policyis DOE’s investment in 6-month certificates of deposit, pursuant to the Minority Financial Institutions Deposit Program of the Office of Minority Economi cImpact (MI-1). Under this program. aportion of the Petroleum Pricing Violation Escrow Fundis invested through desig- nated trustee banks in $100,000 certificates of deposit with minority financial institutions bearing interest at the prevailing 6-month Depart- mentof the Treasury bill rate. All funds deposited under this program are fully insuredby either the Federal Deposit Insurance Corporation orthe Federal Savings and Loan Insurance Corporation. (3) An MKsecurity is an issue identical in every respect, except for transfer- ability and composite price. to any marketable Department of the Treasury issue being traded or sold in the Government securities market, specifi- cally, Department of the Treasury l-day certificates, bills, notes, or bonds. These instruments are virtually risk free and generate reasonabl e rates of return. The following MK securities maybe purchased: ● (a) One-Dav Certificates . Department of the Treasury l-day certificates are used when funds of$l million or more cannot reinvested in longer term securities orwhen funds are required tomeet immediate cash needs fora particular program. This investment mechanism is com- monly referred teas “overnighti nvestment,” since the funds invested on one day, plus the interest earned on that investment, are available for use the following business day. As with other MKsecu- rities, Department of the Treasury Fiscal Service Form (TFS) 1081-1, “InvestmentA uthorization and Schedul e of Withdrawal sand Credits,” and TFS-1081-2, “RedemptionA uthorization and Schedul e of Withdraw- als and Credits,” support the investment and redemption, respec- tively, of the l-day certificates. Both documents are preparedby the Departmentof the Treasury. To properly execute investments in l-day certificates, information on daily receipts and disbursements. interest earned, funds realized from redemption of securities, and funds expended in the purchase of securities must be collected and the amount available for investment must becal culated. (b) Bills. Department of the Treasury bills (T-bills) are purchased when funds beyond immediate needs are on hand (as a result of investment instruments maturing or significant receipts from the private sector) that will be required within the next 12 months. Although T-bill shave maturity periods (from the date originally issued tothe maturity date) of3 months, 6 months, and lyear, actual investments ● IV-2 1-7-93 DOE 2200.6A Paragraph 3b(l) made in these short-term securities maybein any available maturi- ties ranging from lweekto lyear. The minimum purchase for aT-bill is $10.000. with increases in $5.000 increments. The amount offunds actually invested in T-bills will be less than the total face valueof the securities. At this lesser amount, the acquisition is referred teas’’purchasing at a discount.” The income from the T-bill is the difference between the purchase price and the amount realizedat maturity orwhen sold.

(c) l@tesand B@.s. Department of the Treasury notes and bonds arepur- chased when funds beyond immediate needs areon hand and are not anticipated to berequi red during thenext12 months. Funds beyond immediate needs usually occuras aresult of investment instruments maturing eras a resultof significant receipts from the private sector. Department of the Treasury notes have maturity periods ofat least 2years but not more than 10 years, whereas Department of the Treasury bonds have maturity periods of from 10t030 years. Notes and bonds have fixed interest rates (coupon rates) for their entire maturity periods and may be issued at face value orat a premiumor discount from face value as determined by auction. Department of the Treasury notes are usually issuedin increments of$1,000or $5,000, whereas Department of the Treasury bonds are usually issued in incre- ments of $1,000, with some earlier issues availablein $500 incre- ments. Aswith T-bills, investments in notes and bonds are not limited to current issues. Rather, investments made in notes maybe in any available securities with maturities ranging from 6months to IO years, and investments made in bonds maybein any available secu- rities with maturities ranging from 6months to30 years. Current Department of the Treasury policy prohibits the purchase ofnotes and bonds with maturity periods of less than 6 months. Unlike T-bills, for which interest is received at maturity, Department of the Trea- sury notes and bonds pay semiannual interest, whichis reflectedon SF-1081, “Vouchera ndScheduleof Withdrawals and Credits,” prepared by the Department of the Treasury. (4) The Office of Chief Financial Officer (CFO:CR-l) shall coordinate with appropriate Department of the Treasury representatives toestabllsh special escrow funds and to facilitate the implementation of investment procedures for each new fund established. The CFO must also ensure that each new fund is administered in accordance with all laws and regulations that apply to that fund. b. Lw?Qment Procedures with the D~. (1) .ponsibilitv for Selection of Securities ● DOE is responsible for selecting the MKsecurities to repurchased or sold andmay do soon a daily basis. However, the Departmentof the Treasury retains discretionto decline to purchase particul ar securities when, in the Department of the Treasury’s sole judgment, the volume of market trading in those securities is not sufficient toestabl isha reliable indication of their prices. Iv-3 DOE 2200.6A Paragraph 3b(2) 1-7-93 (2) lmEawmi. (a) llK T-Bills. Notes. or Bonds If DOE communicates its request for investment in MKT-bills, n&es, or bonds to the Department of the Treasury byll a.m., eastern time, on a business day, spec~fylng the security or securities to repurchased, the Department of the Trea- sury will make the investmentby the close of business on that day. If DOE’s requestis received afterll a.m.. eastern time, the Department of the Treasury will make the investment by the closeof business on the following business day. If the desired Treasury MK security (or securities) is being traded on the market, itwill be issued atthe mean of the bid and asked prices quoted by the Federal Reserve Bankof NewYorkasof noonon the date of purchase. A request received by the Department of the Treasury before the lla.m.. eastern time. deadline may not be changed or cancelled after the deadline.

(b) ionof MKT-Bills If DOE determines that its operational dis- bursement needs will no; coincide with thematurity date ofanMK T-bill that it wishesto purchase. the Departmentof the Treasury may be requested to extend its maturity date, but only at the time that the securityis purchased. The maturity ofan MKT-bill maybe extended from lto6 calendar days. For example, weekly bills nor- mallymature on Thursdays; however, at the time of investment, DOE may request that the MKT-bil 1 mature on the Wednesday following that Thursday, anextensionof6 days. The purchase price will be basedon themeanof the bid and asked price of the applicable MKT-bill on the a date of purchase, less 6days’ additional discount atthe same rate. The MKT-bill will then mature on the extended date. If the extended MK T-bill is sold before maturity, itwill be sold atthe bid price of the next maturing bill. (c) Qoe-Dav Certificalxs . If DOE communicates its request for invest- mentin l-day certificatesto the Department of the Treasury by 3p.m.o eastern time, on abusiness day, the Department of the Trea- sury will make the investment on that day. As with other MKsecuri- ties, l-day certificate transactions will be pJaced with the Department of the Treasury on days that are both NewYork Federal Reserve Bank market days and Federal workdays. The interest rateon l-day certificates is based on the average repurchase agreement rate computed daily by the Federal Reserve Bankof New York, rounded to two decimal places (for example, 9.27 percent). (d) ~. lfDOEdoes not initiate appropriate action to invest excess funds,in l-day certificates, T-bills, notes, or bonds before their respective deadlines, the funds will become uninvested. (3) utio~. Any MKsecurity held by DOE may be redeemed before maturity. If telephone requests for such redemptions aremade to the Department of the Treasury byll a.m., eastern time, on a business day, the Departmentof ● the Treasury will effect the redemption by the close of business on that Iv-4 1-7-93 120E 2200.6A Paragraph 4c(2) (4) (5) day. Actlonon requests for redemption received after lla.m., eastern time, will be completed by the close of business on the following business day. MK securities will be redeemed atthe bid price quotedby the Federal Reserve Bankof NewYorkasof noonon the date of redemption. ~onfirmation Letters. DOE shall confirm by letter eachtel ephone request for investment inorredempti on of MK securities. DOE shall includein each letter the date that the transaction is to reprocessed, the security to repurchased or sold, the type of transaction requested (purchase’or sale), andthe amountof funds made available for investment or the face value of securities tobe redeemed. ~. DOE shall manage funds investedin MK securities to ensure that current operational disbursement requirements aremet andto maximize the interest earnings on funds not currently required for operating purposes. The Department of the Treasury will not honor requests that, in its sole judgment, involve ’’day trading” activity in the form of buying and selling the same security or that would provide arbitrage profits mainly asa result of the insulation ofactivityin MK securities frommarket price reaction. 4. ~. @l a. ~.An investmentis recorded at the face value of the security acquired. Apremium or discount paid at purchasers recorded in the appropriate valuation account (contra account). b. interest Accruals. Interest receivable shal 1 be recorded in the accounts as interest income is earned.

c. ~.Premiums and discounts are amortized over the lifeof the investment, using the effective interest method or the straight line method, if it produces results similar to the effective interest method. (1) With the effective interest method, the effective interest rate (the actual interest yield on amount invested) multiplied by the carrying value of the security at the start of the accounting period equals the interest income recognized during the period (the carrying value changes each period bythe amountof the amortized premium or discount). The amountof amortization of premium or discount is the difference between theeffec- tive interest recognized for the period and the actual interest earned during the period. (2) With the straight line method ,theamount of the premiumor discount tobe amortized for the accounting periodis calculated by dividing the number of days in the periodby the number of days between the issuance andmatu- rity dates of the investment and then multiplying this amount by the original premium or discount. Iv-5 DOE 2200.6A 1-7-93 Paragraphed 5. d. ~. When an investmentis sold or redeemed, theinvest- ● merit account balance and thevaluatfon (contra) account balance are reduced. Thegain orloss is calculated by using the following formula: gain (loss) -proceeds-book value Proceeds are the face value plus apremium on redemptionor face value minus a discount on redemption. Proceeds do not include accrued interest. Book value Is face value plus any unamortized portion of the premium paid at purchaseor face value minus any unamortized portion of the discount paid at purchase. ARTMENT OF THF TRF4SURY RFPQJ3TING RFO~ . At the end of each fiscal year, investment data are obtained from the investment and valuation (contra) accounts within the Financial Information System and reported to the Departmentof the Trea- sury on TFS 220.1, “Additional Financial Information.” This schedule, which is part of TFS 220. “Reporton Financial Position,’’ includes the following information: a. Identification of Federal MK securities: b. Face amount: c. Market value at the date of the financial statement; d. Method of amortization of premiums and discounts ;and e. Unamortized balance of premiums and discounts. Iv-6 DOE 2200.6A 1-7-93 LkiApTFR VI. PLANT AND CAP ITA.LEQUIMENI ~. .ummumN. a. purpose. Toprescribe thepolicles and general procedures for the accounting and financial management of DOE plant and capital equipment (P&CE) charges, and depreciation. This chapter describes financial controls over the acquisition, use, and retirement of property and provides guidelines for distinguishing between charges to capital accounts and chargesto expense accounts. The con- cepts and standards for P&CEare contained in DOE 2200.4. ACCOUNTING OVERVIEW, Chapter II. “Conceptsa ndStandards.” b. Applicability. The applicability ofthis chapter is specified in DOE 2200.4, ACCOUNTING OVERVIEW, Chapter I, “Introduction,” paragraph. When in conflict with the provisions of this paragraph, power marketing administrations shall observe the policies of the Federal Energy Regulatory Commission and other industry standards astheyapt)lyto the accounting and financi al mana9ementof..- P&CE. - a C. P.PY. Financial accounting for P&CE shall be governed by the principles: (1) (2) (3) (4) (5) (6) (7) All DOE property shall be accounted forin accordance with following basic the capitalization criteria contained in this chapter, regardless of funding source:

All DOE property meeting the capitalization criteria shall be reflectedin the official financial records of DOE: Depreciation shall be calculated and recorded in the appropriate cost-of-operation account, using the appropriate nonfund fund type; P&CE items shall be analyzed to distinguish between capital and expense items. regardl ess offending sources (however. P&CE items will continueto be charged where they are budgeted): Timely and accurate financial reporting on facility construction and capital equipment activities shall be providedto DOE management; Financial control over property shall be maintained; and The primary basis of accounting for property is its acquisition cost (with the general exceptions of transfers, excess property received. foreclosures. and discoveries). I VI-1 DOE 2200.6A Paragraphed d. ~. 1-7-93 (1) (2) (3) (4) (5) Capitalize individual P&CEitems that are purchased, constructed, orfab- rtcated in-house, Including major modificati ons or improvements toanyof these items, If they have unanticipated service life of2years ormore andlf they cost $5,0000r more. The only exceptions are items that are inherently experimental, used as special tools, or, by nature ofthelr association with a particular scientific experiment, not expectedto have an extended useful service life oran alternative future use. Data about real property, regardless of value, shall rerecorded and retained lnthe official financial records and the Real Property Information System (RPIS) to permit the reporting ofall real property holdings as requiredby General Services Administration regulations. Capitalized cost Includes the invoice price, plus incidental costs, such as sales tax, Insurance during transit, freight, duties, handling, surcharges, administrative charges, installation costs. and other costs to convert orto make the facilities or equipment ready for use. Cost shall be recorded netof purchase discounts taken. Purchase discounts lost and late payment pen- alties shall not reincluded as costs of assets, but rather shall be recog- nized as operating expenses. The capitalized items are identifiedas individual property record units so that like items are consistently described as suchin the plant records. Generally, the property record unit shouldbe an operating or functional unit. Capitalize automated data processing software (programs, routines, or ● subroutines) valued at $5,000 ormore, with a useful life ofatleast2 years. This criterionis only applicableto the operating system, orthat software necessary for the computer cooperate and process other applica- tlons software. Software for any operation in addition to the basic operation of the computer shall be expensed, even If purchased with the computer. Capitalize and group in aseparate asset-type account related items that individually cost less than $5,000 but that collectively cost $5,0000r more, suchas the initial complement of equipment of a building, if current costs wouldbe distorted in agiven periodby charging such ltemsto exPense accounts. The initial complement ofequlpment of insignificant value relative to total project cost is generally distributed over the cost of the property record units towhich itis related. Capitalize property, including assets acquired through Installment contracts and lease purchases, as described in this chapter.

Generally, DOE elements shall not capital lzelnterest during theacqulsi- tionof P&CE. However, certain DOE elements fund the acquisition, con- struction, or fabricationof P&CEthrough direct borrowing from the Department of the Treasury and pay interest directly to the Departmentof theTreasury. In such cases, capitalize interest, if it immaterial, based on the interest rate chargedby the Departmentof the Treasury for the funds borrowed. The interest paid shall be capitalizedas partofthehis- ● torical cost of acquiring the P&CE. The interest capitalization begins VI-2 1-7-93 DOE 2200.6A Paragraph le(2) with the first expenditure forthequal ifying asset and ends when the asset Is substantially complete andready for its intended use. Capitalize interest costsas long as the following general conditions aremet (interest expense on power investments is detailed in paragraph id(7)): (a) Expenditures for P&CE have been made, and (b) Activities that are necessary to get P&CEready for its intended use arein progress. (6) Sensitive items that are susceptible to being taken for personal useor that are readily salable for cash-such as firearms, photographic equip- ment, tape recorders, calculators, and power hand tools–that do not meet the capitalization criteria should recharged as an operating expense and recorded in the property record systemat acquisition cost for inventory traceability. No entries in the completed P&CE accounts are required. (7) Interest expense on the unpaid power investment isarequi red portionof the costs to be recovered by power revenues and therefore must recomputed and returned to the Department of the Treasury over the repayment lifeof the plant. Rates to be used in computing interest on investrnentshal 1 be those officially establi shed by law or administrative procedures pursuant to law. (1) Property record units are designed to establish divisionsof the completed P&CE accountsin sufficient detail to identify the component partsof facilities. Property record units facilitate the recording of changesto property accounts and the reconciliation of physical inventories with financial accounts. (2) A property record unit, sometimes called aP&CE record unit. is a component of plant or equipment selected to be continuously identified in the prop- erty records. The selectionof property record units determines the manner in which costs are assembled and recorded in the property records. Aproperty record unit maybe composed of one or more retirement units. If a retirement unit is not specified, the property record unit and the retirement unit are considered synonymous. In selecting the property record unit, consideration should be given to its use, relationship with other associated items, relative importance, frequency of anticipated property changes, and monetary value. Generally, $5,0000r moreis con- sideredas sufficient monetary value to justify maintaini ng continuing records of the property unit. Aproperty record unit may be a functional unit consisting ofan assembly of associated items, some ofwhich are retirement units, suchas a hydraulic extrusion press: a facility serving or designedto serve two or more other property record units. such as a control system or piping system; a continuous facility of which sections are retirement units, suchas roads, walks, and paved areas; ora unit that is completein itself, such as a spectrometer. VI-3 DOE 2200.6A 1-7-93 Paragraph le(3)

(3) Retirement units establish the physical dividing lines bywhich costsof ● work relatedto P&CE (including maintenance, repairs, betterments, and replacements) are classified and charged either toa P&CE controlled appropriation or to an operating expense controlled appropriation. A retirement unit is the smallest componentof P&CE thatis invariably eliminated from the P&CE accounts when removed, transferred, sold, aban- doned, or demolished andisinvari ably capitalized when acqui red. To ensure consistency, there shall bea close coordination among the budget, accounting, engineering, project management, and technical staffs in the development and maintenance of retirement units. The developmentof retirement units shall take into consideration such factorsas usemadeof the item, retirement history of identical or comparable items, and the monetary and physical relationshipof theitem to the associated property record unit. The foregoing definition shall reapplied ina systematic and rational fashion and support the maintenance, repairs, betterments, and replacements to property record units, based upon the recommendations of site project and facilities management. (4) Each field element or integrated contractor shall develop and maintain its own property record unit catalog orone that may serve all activities reporting to that element. Approval bythe Head of the Field Element ora designee is necessary for new catalogs and revisions of sectionsof existing catalogs. DOE review and approval of property record unit addi- tions and deletions by contractors shall be done annually by the cognizant Field Element Chief Financial Officer (Field CFO). Aproperty record unit catalog describes the property record units that DOE owns. It providesa ● basis for a common understanding as tothe mannerin which P&CE costs are assembled and recorded in the field and contractor P&CE records. The description ofeach property record unit is intended to provide sufficient information to identify the unit inthe P&CE records and for physical inventory purposes. The retirement units applicable toeach property record unit provide a basis for distinguishing between capital (P&CE) and expense charges. Samples of property record unit catalog entries appear as Attachment VI-2. Aproperty record unit catalog should have the following principal features: ( a ) (b) (c) (d) An explanation of the property record units, what they consist of, and the descriptions used and type of asset: Themanner inwhich the units are to rerecorded in the property records, whetheras individual Items oras a group of similar items: Alistof the retirement units applicable to each property record unit: and The current llepartmental capitalization criteria. VI-4 1-7-93 DOE 2200.6A Paragraph lf(3)(a)l f. Guldel ines for Distlnauishina plant and Cmital Mu.Ument Wenditures from ~ * (1) Although operating expenditures and P&CEexpenditures are now consoli- dated under the same appropriation, separate functional classifications are required and the distinction between operating and P&CE expenditures must be maintained atall levels of procuring, accounting, and reporting. (2) Consider the following two factors in determining whetheran action should be classified asP&CE: the nature of the itemto be purchased or con- structed and the service life and cost of the item to be purchasedor constructed. Budget and procurement procedures shall ensure that P&CE procurements are properly matched to corresponding funding ceilings. The various types of P&CE items may be categorized broadly as follows:

(a) JZ13nt. 1 Lansiincludes land ri9hts. depletable resources (minerals and timber), and improvements to land. Z J3uildings include all structures and significant alterations. additions, or improvements to structures (but not normal maintenance). a ~struction includes all elements associated with construction in progress. 4 Utilities include water and sewage systems; heating, cooling. and power systems; communications systems; and fire prevention systems. 1 jieav~ includes all vehicles, railroad stock. processing or manufacturing machinery, shop machinery. reactoror accelerator machinery, and reserve construction machinery. 2 ~ includes medical s laboratory’* and security equipment. 3 ~ includes comPuters~ P r i n t - ers, cathode ray tubes, operating system software. and interface peripherals. (3) The following are examples of costs that are expensed: (a) J?l-anL. 1 LaJM. Expense normal maintenance and repair. such as periodic vegetation control, repairs to sections of sidewalks, and roads that are less than a retirement unit. VI-5 DOE 2200.6A Paragraph lf(3)(a)2 2 3 1-7-93 13uildi~. Expense normal maintenance and repair, suchaspaint- ● ing, cleaning. and small repair jobs not resulting in an addition, replacementof a retirement unit. or a betterment. -c. Expense demonstration plants that have limited service lives and that will not be used for actual production or operations. (b) ~. 1 Expense equipment notmeeting the capitalization criteria. z Expense conceptual design, fabrication, testing, and reworking of prototype equipment subject to redesign as fabrication and testing are performed. This usually applies only tothe first unit if several similar units aretobe acquired. a Expense testing and reworking of prototype equipment for which design has been established. (4) The appropriate funding source (operating or P&.CE) can also redetermined by relating funding needs to specific project activities as defined below: (a) Pre-Title I Activities are all activities taking place priorto the start of preliminary design. These activities are charged tooperat- ing expense whether they are performed by the architect or engineer ● or by the integrated contractor, and they include such activities as the following: 1 Siting and engineering studies conducted to establish project scope, feasibility, and need; 2 Conceptual desifmreport(CDR) and a preliminary safety analysis report, ifit is prepared as part of the conceptual design report; a Preparation of construction project data sheets; 4 Preparation of design criteri a: 5 National Environmental Policy Act documentation preparation; and 6 Formulation of quality assurance criteria and plans during the conceptual stage of design. (b) Jitle IDesiaa is the preliminary stage of project design. In this phase, design criteria are defined in greater detail to permit the design processto proceed with development of alternate concepts and a Title I design summary. These activities areto recapitalized VI-6 1-7-93 m’ DOE 2200.6A Paragraph lf(4)(c)~ whether they are performed by the architect or engineer orbythe integrated operating contractor, and they include the following: 1 Design studies, including alternate design approaches, energy conservation evaluations, and analysis or review of health. safety, and environmental aspects of the project; Z Reviewof the project design criteria to develop greater detail and to incorporate any design modifications that may resultfrom engineering studies resulting from Title I:

3 Preliminary design drawings, showing the proposed design and any alternates in sufficient detail to establish the design features of each approach and to permit a preliminary construction cost estimate; 4 Outline specifications for construction and specifications for equipment procurement and identification of long-lead-time items for advance procurement; 5 Preliminary safety analysis report, if not included inthe conceptual design report: e 6 Construction cost estimate based on the approved design and other such estimates as required to support the evaluation of alternate designs prepared during preliminary design (Title I); Z Preliminary project schedul ebasedupon information avail able during preliminary design (Title I); and 8 Formulation and revision of quality assurance criteri aand implementation planso (c) Jitle II Desiuis the definitive stage of project design. Activi- ties performed during this stage are to recapitalized whether they are performed by the architector engineer orby the integrated operating contractor, and they include the following: 1 2 3 4 Restudy and redesign work required to incorporate changes from the design prepared in Title I: Final drawings, specifications, test plans, and construction cost estimates suitable for soliciting bids from contractors: Analyses of health, safety, environmental, quality assurance, and other factors that may impact the project, as directed by the contracting officer; Coordination of all design elements with other project features, such as utilities, Government-furnished equipment, and portions of the project or related projects being designed by others; and VI-7 — DOE 2200.6A 1-7-93 Paragraph lf(4)(c)5 5 Records of all meetings scheduled for design review or coordi - ● nation with DOE, the operating contractor, and local agencies, such as public utilities. (d) Title IIL.constitutes the inspection portion of project engineering, design, and inspection. These activities can be separated into two categories: office support andfiel d services. These activities are to recapitalized whether they are performed by the architector engineer orby the integrated operating contractor. 1 Activities classifiedas office support include thefol lowing: Review of all vendor drawings and submittals for conformance with the approved design drawings and specifications; Incorporation of all approved-as-built deviations from the design drawingsin as-buil t record drawings for delivery tothe DOE element; Estimate preparationto establish reasonable amounts of tncrease or decrease in contract price or schedule caused by contract modifications andan evaluation of proposals submit- ted by the construction contractor for reasonableness before making recommendations to the DOE element; ● Preparation and submittal of reports on progress, schedule, budget. and such other project aspects as are required by the statement ofwork: and Preparation and submittal of the documentation required bythe quality assurance plan. 2 Activities classified as field services include the following: a Furnishing and maintaining governing lines and benchmarks to provide controls towhich construction may be referred: h Inspecting construction contractor’ sworkmanship, materials, and equipment and reporting on conformance or nonconformance with the approved drawings and specifications; c Making or procuring such field or laboratory tests asarenec- essary to ensure that construction materials and practices are in accordance with the approved drawings and speclflcations;

~ Revising field copies of the design drawings and specifica - tionsto show the as-built condition for submittal tothe designer for incorporation into the as-built record drawings: ● VI-8 1-7-93 CJOE 2200.6A Paragraph if(4) (g )3 R Providing input toconstructi on progress reports as required; and f Providing the required inspection and testing to ensure compliance with the quality assurance plan. (e) Wtructim. All costs for construction equipment, material, labor, and overheads shall recapitalized, except as provided below: 1 When construction is performed by an integrated operating con- tractor, only the direct construction costs and the incremental indirect costs resulting from the contractor’s construction activity shall recapitalized. Indirect costs that will continue regardless of construction activity shall not reincluded in construction, but charged cooperating expense. 2 When construction is performed by DOE. al 1 costs incurred related to the construction work, except for DOE general and administrative costs, shall recapitalized. (f) ~typically includes the review and approval of construction packages, review and acceptance of constructi on test procedures, and control of field design change requests. The con- struction manager supports the construction contractorby furnishing items not provided in the bid package, such as security, temporary facilities, debris removal, and similar project requirements not included in the bid package. All costs associated with construction management shall recapitalized. (g) J?F covers services providedby the integrated oper- ating contractor project manager and the Head of the Field Element’s dedicated DOE support staff beginning with Title I and continuing through the completion of construction. These activities aredis- tinguished from integrated operating contractor project support activities in that project management is by dedicated personnel per- forming duties related solely to the project. All costs associated with project management shall be capitalized, because the great majority of effort is expended during construction. Project manage- ment during the design phase of major projects or major system acquisitions authorized for design onlyis also capitalized. The following activities are examples of work included inthe scopeof project management: 1 Technical management and liaison with designers during Titles 1, II , andIII: 2 Coordination. including interface control during design and construction: 3 Maintenance and operation of scheduling, estimating, and project control systems during design and construction: VI-9 .~ 1-7-93DOE 2200.6A Paragraph lf(4)(g)A 4 5 Technfcal management and coordination of the construction manager and support staff; Overall management and coordination of the activitiesof nondedicated project support personnel; Technical management of review and approval activities conducted by dedicated management personnel: Coordinationof all aspects of the project: and Preparation, revision, and related activity itISUDDOIW Of the final safety analysis report. . . (h) pro.iect~ covers activities performed by the integrated oper- ating contractor for internal management and technical supportof the project managerby nondedicated personnel . Project support shall be charged cooperating expense. The following activities are illustrativeof support services provided by integrated operating contractors: 1 Document control:

Z Compliance audit of quality assurance, health physics, safety, and environmental requirements: and a Design review by nondedicated operating contractor personnel on an as-needed basis, including independent technical analysis, constructability review, life cycle cost comparisons. life safety review, health physics review, and code checks. (i) Xarlwpcovers one-time costs incurred by the integrated operating contractor during the transition between the completion of construc- tlonand operationof the facility. All such costs are charged to operating expense. They include the following: 1 Operations planning, operator training, and operational readiness review: 2 Startup coordination, postacceptance testing, cost of startup chemicals, and related supplies; and a Salaries of startup personnel. 9* tina~e. Repairs. Better~ ● (1) JN?JM-c is the restoration or replacement of a deteriorated item of P&CE, such that itmaybeutil izedfor its designated purpose. The costof repairis normally charged to an operating expense account and includes amounts for labor and associated supervision and materials, aswell as indirect and other costs incurred in such repairs, but does not include VI-10 DOE 2200.6A Paragraph lg(4)(d) the costs to replace ltemsof P&CE designated as retirement un~ts. (Power marketing administrations should referto publications and studies on utility plant service lives.) (2) flaint~i stherecurring day-to-day work that is required to maintain and preserve P&CEin a condition sultablefor itto be utilized for its designated purpose. It differs from repair in that it is normally work to correct wear and tear before major repair is required, anditis usually less involved than repair work. Maintenance workis typically charged to an operating expense account. (3) Preventive Mai~is the utilization of periodic inspections, adjustment, lubrications, and minor repairs to plant property for the purpose of maintaining its useful life and reducing the frequency and magnitudeof breakdown repairs. Preventive maintenance is a specialized category for the broader category of maintenance. Preventive maintenance is typical ly chargedto an operating expense account. (4) ~areimprovements toP&CE which result in better quality, higher capacity, or an extended useful Iifeand are capitalized. Deter- mining when and to what extent an expenditure should retreated asa bet- terment requires the exercise ofjudgement. klhena minor item is replaced in each of anumber of similar units, the effect of the replacement as related to each unit, rather than to the cumulative costs, is the proper basis for determining whether or not a betterment is effected. Listed below are various terms which are commonly used to describe various categories of betterments. (a) (b) (c) (d) Q_uuis the erection, installation, orassembly ofa new plant facility; the addition, expansion, alteration, conversion, improvement, or replacementof an existing facility: or therelo- cation of a facility from one location to another. Construction includes equipment installed in and made part of the facility, and related site preparation, excavation, filling and landscaping. or other land improvements, andthe designof the facility. Unversioa isa major structural revision of afacility that changes the functional purpose forwhich the facility wasorlginally designed orused. ~. Addition, expansion. and exten- sion each constitutes a physical increase toa facility that adds to the overall external dimensions of the facility.

Replac_is acomplete reconstruction of aplant record unit which has deteriorated or has been damaged beyond the point where itsindi- vidual parts can be economical ly repaired. If the item replacedis a retirement unit, its original cost (including installation cost) is VI-11 — -— DOE 2200.6A Paragraph lg(4)(d) removed from the P&CE accounts and the Item (including installation cost)is 1-7-93 ● cost of the newly installed added tothe P&CE accounts. If (e) h. PlanLmL the item replaced is amlnor item and the replacement does not create a betterment, thecost of the replacement shall be conslderedmalnte- nance and repair and shall be charged to anoperatlng expense account. ~fs the work required to adjust lnterlor arrangementsor other physical characteristics of an existing record unit sothat it may be more effectively adapted toorutflized for ftsdesfgnated purpose. ~. (1) ~. The account Construction Work in Progress Includes costs ofaddftlons and retirements ofP&CE that areln progress and are being accumulated durlngthe acqufsitlon or construction period. The acqu~sftfon cost of constructfonworkfn progress shall be closedto the completed P&CE accounts when the equipment and facflfties are placed fnservfce (that is, beneficial occupancy) even though the entire project fsnotfinancfally completed. The acquisition costof ftemsbefng retired shall be closed to theapproprfate accumul ateddeprecfatfon account when Items are actually disposed of. All costs that relateto P&CEchangesln progress and the cost of unconsumed construction materials, supplies, and ● temporary construction facflftfes shall be fncludedfn the account. Detafled accounting records shall be mafntafned for the following (when work is performed under cost-type contracts. thedetalled accounting records for each projector job shall be further subdivided to facilitate cost control and tomakeentrfes to P&CE accounts and contfnufng property records): (a) Each construction project orjob, Including undfstrfbuted construc- tlon costs-for example, construction materials and supplies, construction equipment, and temporary facilities, and (b) Each type ofcapltal equfpment. (2) . Removal costs shall be accounted for as Construction Workfn Progress when the removal fsfn connection wfth an authorized construction project oran equipment project and when one of the following conditions fsmet: (a) Costs are ~ncurred when it fs economical to salvage orreuseftems, (b) The removal Is necessary for health and safety considerations. and (c) Contractual agreements requfre removal. (3) MIMQIEe~. Project costs shall include costs fncurred becauseof ● the cancellatfonof all or part of a contractor purchase orderto procure. manufacture, or assemble anftem ofP&CE. These costs, less any salvage VI-12 1-7-93 m DOE 2200.6A Paragraph ii(2)(b) credits, shall be distributed over the remaining units of property within the project for project accounting purposes, except where such dlstrlbu- tlonsignlficantly distorts the costof the remaining property units. Where such distortion occurs, the costs of the abandoned projector project segment maybe closed from Construction Work In Progress toAban- cloned Projects (Budget and Reporting Classify cation CodeYN, Other Costs and Credits). All charges to abandoned projects shall be approved by the Head of the Field Element. . . i. ~. (1) (2)

Integrated contractors shall be required tomaintain summary financial control records for their subcontractors having DOE-owned propertyin their possession, and DOE field elements shall do thesame for all inte- grated and offsite nonintegrated contractors for which they arerespons ble. Property records shall facilitate control of thecosts ofwork in progress and shall indicate whether an item has been capitalized ornot. The summary financial control accounts maintained by OOEfleld elements andlntegrated contractors shall includeas aminimum the reporting code of the organization holding the property, the site code, thetype of prop- erty (asset type), theacquisltion cost, the accumulated depreciation. and the use status code. Accurate and up-to-date accounting records shall be maintained by DOE field elements and by integrated and nonintegrated contractors fnorder to provide the proper accountability for DOE’s investment ln property. As propertyis acquired. transferred, retired, or otherwise taken outof service because of loss. consumption, or casualty, documentation shall be prepared, retained, and used to support entries Into the accounting records, to authorize disposals and transferso andto explain total or partial losses of property. Three offices are responsible for establishing DOE policy for property management: the Office of Chief Financial Officer (CR-l). the Officeof Administration and Management (AD-l), and the Office of Procurement, Assistance and Program Management (PR-1). (a) The Chief Financial Officer (CFO)carries out property management responsibilities through the Accounting Policy Division (CR-22), which develops accounting policies and procedures related to appro- prlated funds and fiscal policies for exercising stewardship over the Department’s assets. The divisionis responsible for formulat- ingprocedures to provide assurance that assets are properly accounted for and that policies are developed for write-on, write- off, orwrite-downof the assets in accordance with recognized accounting principles, standards. and practices. (b) The Office of Procurement, Assistance and Program Management is responsible for the promulgation of acquisi- tion regulations and financial assistance rules governing DOE property held by contractors. In addition, the Property and Equipment Management Division (PR-162) has the DOE-wide responsibility for developing and maintaining procedures} VI-13 DOE 2200.6A Paragraph n(2)(b) 1-7-93 ● standards, and guides for property. supply, and equipment management programs: for personal property management; and for the Defense Pro- ductlon Act of 1950 prlorittes and allocations program. Italsopre- scrtbes policies and procedures governing the management of property In the custody of OOE contractors. (c) The Office of Administration and Management, through the Facilities Management Division (AD-14), serves as the Department’s official point of contact relating to the acquisition, use, or disposal of real property. As such, itcoordi- nates and establishes polic~eso princlpleso and procedures relatfng to the acquisition, use. and disposition of real property ownedor controlledby DOE; formulates and establishes criteria relatlngto the need for. and method ofacquisftion of. real property, fncludfng the review and approval of studfes submittedto Headquarters justl- fyingthe need for real property; and formulates and establishes crfterfa relating to the development of long-range plans for acqufsftfon, use. anddfsposal of real property.

2. JwAumD!. a. RMMti9m. (1) JWil Pr~rtY includes land. improvements onthelando orboth, and fntereststherefn. The chief characteristics of real property (real estate) are immobility andtangibil fty. It comprises land and all thfngs ofa permanent and substantial nature afffxed thereto. whetherby nature orby human hand. BY “nature” fs meant trees, the products of land. and natural resources; by “human hand,” those objects, bufldings, fences, or bridges that people erect upon the land. Equipment or fixtures, suchas plumbing. electrical. heating, built-in cabinetso and elevators, that are installed fnabufldfng fnamore or less permanent manner usually are held to bepart of the real property. Real property may include trailersor modular unfts jofned together so that the structureis not portable and cannotbe relocated without being dismantled and thus losing fts identity. Trailers used as temporaryor mobflefacilftfes should reconsidered personal property when notacqufred or fntended for permanent use. (2) ~1 Property fs any personal property thatis an integral part of real property or Is related to, desfgned for. or specially adapted to the functional or productive capacity of the real property, the removal ofwhfch would slgniffcantly diminish the economfc value of the real property orthe related personal property ftself. Examples of related personal property are communication systems and telephone systems. Nor- mally, common use items, including but not limited to general-purpose furniture. utensfls, office machines, office supplles, and general- purpose vehicles, are not considered related personal property. b. ~. Real property and related personal property should be recordedby using theapproprfate asset type code. Fora further VI-14 1-7-93 DOE 2200.6A Paragraph 2e(l) description of these codes, see DOE 2200.10A, ACCOUNTS. CODES. AND ILLUSTRATIVE ENTRIES, Chapter II, “Financial Codes.” C* ~. All real property, modifications, changes, and improvements and related personal property shall be recorded in the appropriate balance sheet account for Completed Plant and Capital Equip- ment. The costs are recorded atthe timeof acquisition whetherby purchase, donation, or transfer orat the time the costs areclosed froma work-in- progress account. Thts accountis supported by subsidiary accounts that iden- tifythe property by asset type. Detailed records of DOE-owned property shall be maintainedby the DOE field element, by the contractor having the physical custody of DOE-owned property, orby a designated contractor. Theonlyexcep- tionto this requirement is that Government-owned land andlandrfghts shall be included in the detailed records of the responsible DOE field element. In addition, prime contractors shall maintain summary financial control records for their subcontractors having DOE-owned property in their possession, and DOE field elements or their designated contractors shall do thesame for all contractors that have DOE property in their possession. The summary financial control records maintained by field elements and contractors shall include, at aminimum, the reporting code of the organization holding the property, the site code, the typeof property (asset type). the acquisition cost, the accumu- lated depreciation, and the use status code. Accurate and up-to-date account- Ing records shall be maintained lnorder to provide the proper accountability for DOE’s Investment in property. As propertyis acquired, transferred, retired, or otherwise taken out of service because of loss, consumption, or casualty, documentation shall be prepared, retained, and used to support entries Into the accounting records, to authorize disposals and transfers, and to explain total or partial losses of property.

(1) The cost ofland and land rights includes the purchase price, other acqui- sition costs. and net costs of removingor wrecking any facilities acqufred with the land. (2) The cost of completed facil ltiespurchased from non-Government sources Includes the purchase price, other costs lncidentto the purchase, and the net cost of converting the facilities to make them useful to DOE. Excep- tionsto this policy must reauthorized bythe CFO andby the Directorof Facilities Management. (1) Areal estate lease is an agreement to use another’s property for agiven periorlof time and for a given amount of money. The amount ofmoney and period oftime are known and specifically stated, and the lease, once signed by both parties, is a binding legal agreement, enforceablein the courts. DOE policy for multiyear leases ls dictated by legal and fiscal restraints. If improvements to leased properties satisfy the criteria described in paragraphs 2e(2) through 2e(6) and further meet the criteria fora capital -type expense, their costs shall be recorded lnthe completed P&CE account using the asset type Improvement to Property of Others. VI-15 I DOE 2200.6A 1-7-93 I Paragraph 2e(2) (2) (3) (4) (5) Leases funded byapproprl atlonsavailable forl fiscal year that areexe- — cuted by, oron behalf of, DOE may not exceed l year unless a longer termls speclftcally authorized byleglslatlon or unless the General Services Adminstratlon delegates long-term leasing authority forspectfic acqulsltlons. In addition. DOE may lease special-purpose space formore than lyear, provided that no-year funds (that Is. funds avallableunttl spent) are obligated for eltherthe entire amount of the term rent or the amountof the cancellation payment (penalty), If one fs provided, plus rent tothe date on whfch cancellation maybe exercised. Using no-year funds, however, tlesupsums ofmoney for Iongperlods, and taking a large sum from no-year funds for long-term rent Inany given year can have an adverse effect on the overall budget; as such, this actlonls general lynot consis- tent wlthgoodflnanclal management. Therefore, though thlsoptlonls legally available. its usemust be approved bythe CFO and the Dfrectorof the Office of Administration and Management. Such approvals shall be rare and given only as a last resort. Any lease for apublfc building with an annual rent ofmore than $500,000 Is subject to the requirement that a prospectusbe submitted toand approved by Congress before any commitment by the Government. The pro- spectus shall be submitted to the Director of the Office ofAdmlnlstratlon and Management. ● Although leases executed by cost-type integrated contractors are not necessarily subject tothe same laws that bind the Department, under the terms of their contracts, these transactions must comply wfthcertafn ffscal. legal, and pollcyrequfrements. (Cost-type nonfntegrated con- tractors funded wfth annual, sfngle-year appropriations are exempt from these requirements.) If the contractor’s flnancfal obligations undertts lease are pafd from funds under the contract obtained from annual sfngle- year appropriations (that Is, funds available forlffscal year), theffrm term of the lease must not bemorethanl year. If the contractor’sffnan- cial obllgattons under its lease are pafdout of contract funds obtafned from no-year approprfatlons, the term of the lease may be for alonger perfod. In thfssftuation. ftfsnecessary to ensure that sufffc~ent funds are, and will be. available under the contractto satfsfy the contractor”s ffnancfal obl~gatfons under the lease. Contract fundsfn theamount of the maxfmumlfabflfty under the lease must rerecorded as an outstandlngcom- mftment atthe time the leaseis executed. Regardless of the source of Government funds provfded under the contract, acost-type integrated con- tractor fs always free toenterfntoa lease foraterm ofmore than lyear ff the contractor is wfllfng to expressly accept the risk that sufficient funds may notbe available under the contract tomeet the financial obliga- tions under the lease. As amatterofpolfcy, such leases executed by cost-type contractors shall contafn aprovfsfon to the effect that nothing fnthis lease shall bfnd, or purport tobind. the Government.

VI-16 1-7-93 OOE 2200.6A Paragraph 2f(l) I I e f. (6) Before making permanent improvements tenon-Government-ownedreal prop- erty, DOE field elements must obtain approval from the Directorof the Office of Administration and Management. The Comptroller General has established as Government policy that, in general, the Government may not make permanent improvements to non-Government-owned land. The basic premise on which the Comptroller General has allowed exceptions to the pol~cyaga~nst permanent improvements to private property is whether the Government’s interests in the overall project are adequately protected with respect to such improvements. In making such adetermina- tion, the Comptroller General has establi shed the following general criteria that must beaddressedln order to allow the useof Federal funds 1 for such improvements: (a) The expenses of the improvements are nominal in comparison with the total price of the contract, (b) The improvements are incident to and essential for the accomplishment of the authorized purpose of theappropriati on, and (c) Improvements areused for the principal benefit of the Government (46 Comp. Gen. 26.27 (1966): 42 Comp. Gen. 480 (1963)). RI stl~ and Fabri @.-uwktivl ties from b~. . . ~. For budgeting, accounting. and reporting purposes. the following criteria shall be used in distinguishing between the costs of research and development activities (operating expenses) and the costs of construction and fabrication activities (capital). These criteria are applicable regardless of whether the services are performed by a research and development, operating, architectural-engineering, or other contractor. When aDOE research and development laboratory or other operating contractor performs research and development activities and acts as prime contractor for design andconstruc- tionwork for DOE, provisions mustbe made fora clear separation of costs between these two categories of activities, in accordance with criteria described below. (1) rch ml)evel~tlvltigs (F~sellpQ . Research anddevel- opment activities generally include all work upto the time when the ideas or conceptual design for the project or individual components are crystal- lizedand are ready for the preliminary design work (Title I) leading toa specific construction or fabrication project. Research and development activities include the development of conceptual designs, origination of ideas. and investigations to obtain scientific and engineering data, as well as activities directed toward the investigation and developmentof technical improvementsin such projects, processes, systems, orcompo- nentsduring the construction or fabrication period. The transition from the research and development phase to the construction and fabrication phase generally will not occur at onetime because the design andconstruc- tionor fabricationof some systems and components may be in progress while research and development work on other systems and components is being continued. Further, with respect to a given component, research and development may be continuing simultaneously with its fabricationor VI-17 DOE 2200.6A 1-7-93 Paragraph 2f(l) construction tooptimtze the design and qualityof the particular compo- ● nent and Its Integration Into the plantas awhole. (Research and develop- merit expense funds shall not be used foractlvfties or items that aretobe capital funded.)

(2) fontiabr~ivities (Capital TVQQ . Construction and fabrication activities general lyinclude the design andenglneering fora specific project or for the components of a project after theideas or con- ceptual design are crystallized: the procurement. fabrication, erection, and installation of all materials and equipment constituting the project: model sbulltfor size and spacing in connection with preliminary (T~tle I) and final (Title II) design work; the preparation of operating manuals; and the preoperational testing of the project components. The costof components that are constructed for a project but that fail to performas expected and are abandoned, aswell as post-crystall ization-of-design engineering work, shall be included fn the cost of construction or fabri- catlonactivftfes. The cost of construction work performedby DOE and integrated contractors shall exclude all nonincremental fndirector overhead costs. (1) When such projects as full-seal etestfacilfties or other prototype facilltfes are undertaken toobtafn data related tospecffic fnvestfga- tionsand to demonstrate the feasibilftyof a particular process, the ● costs fncurred for design, procurement, or fabricatfonof components, the cost of assembly, and all costs ofoperatfons durfngthe experlmentmay be consfderedas operating expense and maybe budgeted and accounted for underan appropriate operating expense program activity. However, when the construction and ffnal testing of such prototype or demonstration facflfties are completed. the Head of the Field Element shall determfneff the completed facility is expected tohavea useful lffeof2yearsor longer. If the experiment or demonstrate on project facility tsto havea useful llfeof2years or longer, the total cost of the completed project shall becapftalized and that cost shall berecordedfn the ffnanclal accounts for completed P&CE. (2) When afacilltyis~ as an experiment or dem- onstration, orwhenftis ~that the experiment or demonstration w~ll becomea productlvefacllity even though prfmarfly constructed for experimental or demonstration purposes, it shall retreated asa capftal construction project for budgeting aswell as foraccountfng purposes. Pilot plants also shall be treated ascapltal construction projects when these plants are connected with full -scale construction plant engineering requirements and will be expected to continue to operate as models until the full-scale plantis constructed, inoperatfon, and accepted for pro- ductfon purposes. A final cost report also shall be provided to the Flel d CFO of the cognizant ffeld element for capitalization fn the completed P&CE account. When construction incomplete. capitalfzeapflot plant that was budgeted for under operating expenses (because initially its ● service life could not redetermined) even though ftls dfrectly VI-18 1-7-93 9 DOE 2200.6A Paragraph 2h(4) connected wfth the construction ofa full -scale plant and Is expectedto operate onlyas a pilot plant until the full-scale plant is constructed, In operation, and accepted for its intended purpose. The costs of designing and constructing all bulldingsor structures in which experiments ordem- onstrations are to reconducted, aswell as the related auxiliary or sup- portlng facilities, such as utll ity systems, roads, and wal ks, shall be Included ln the construction project and capitalized when completed.

(3) Capital equipment required to support experimental and demonstration projects should be treated as capital equipment not related toconstruc- tlonunless it can also be reasonably expected to be consumed or destroyed during the experiment or demonstration. For example, capitalize all shop and laboratory equipment, measuring devices, fans, pumps, motors, and other individual items or assemblies of equipment associated with or used to support the experiment but not built into the experiment. The costsof that equipment shall be recorded in the completed P&CE accounts when purchased, regardless of source of funding. (4) When it is not easy to ascertain the actual costs of items of P&CE that were budgeted and accounted for under the operating expenses appropriation that were subsequently capitalized, those items shall be recorded in the completed P&CE accountsby using estimated amounts approved by the Headof the Field Element. h. ~. (1) General plant projects are miscellaneous minor new construction projects of a general nature, the total estimated costs of which may not exceed the congressional authorization of$l.2mil lion per project. General plant projects are necessary to adapt facilities to new or improved production techniques, to effect economiesof operations. and to reduce or eliminate health, fire, and security problems. These projects provide for design or construction (or both); other capital alterations and additions; and improvementsto land, buildings, and utility systems, and they may include constructionof small new buildings, replacements or additionsto roads, and general area improvements. The cost of installed equipments included whenit is an integral part of the project. (2) By their nature. general plant projects aredifficul tto detail in advance and are subjectto changing priorities and requirements. emergencies, and contingencies arising after the budget submission that may force changes in scope, schedule, andthe orderin which these projects are undertaken. (3) General plant projects moneys are not intended to be used in incremental segments to construct larger facilities. Care should be exercisedto ensure that each specific projectis a discrete, stand-al one entity. Each project is to result in the deliveryof acomplete and usable facility. I (4) When design is fundedin one fiscal year and construction is funded inthe next fiscal year, every effort shall be made to complete the construction as early as possible. The cognizant field element must malnt~ln controls VI-19 DOE 2200.6A Paragraph 2h(4) 1-7-93 ● to ensure compliance with the $l.2mlllfon llmltatlon andlncremental funding prohibfttons. (1) Moving existing permanent utlllty Iinesand roads because ofconstructlon activities involves the retirementby removal or abandonment ofexlstlng facflftles andthe addition of new facilltles. Such new facllittes shall be budgeted and accounted for asacost of the new project. Removal costs shall be charged to Construction Workin Progress-Status Code for Removal Costs. The book cost ofmaterials reused lnthe new project shall becred- ited to Construction Morkin Progress-Status Code for Salvage Credits, and charge theasslgned cost to the new project. The book cost of other mate- rials salvaged shall also becredlted to Construction Workln Progress- Salvage Credits, and this cost shall be charged tolnventory orother appropriate accounts. Removal costs and salvage credits shall be closed from these accountsto the appropriate accumulated deprecfation account. The retirement loss (the difference between the new amount closed tothe accumul ateddepreciatlon account and the depreciation accruedon the retired facilities tothe dateof retirement) shall be chargedto Plant and Capital Equipment Adjustments-Extraordinary Losses (B&RYN). The book cost of the retired facil ities shall be closed directly to theapproprtate accumulated depreciation account.

(2) Costs of moving temporary construction facilities shal 1 be chargedto ● Construction Workin Progress accounts and distributed to all projects served by the temporary facilities. (See DOE 2200.7, COST ACCOUNTING, Chapter I, “Costing.”) (1) The total cost of alineitem or general plant project or inoperative unit within a project shall beclosed to the completed P&CEaccounts from the Construction Work in Progress account as closeto the date of beneficial occupancy as possible. but generally not to exceed 6months after each operative unitis placed in full service. Project management staff shall notify finance staff of beneficial occupancy ofa facility. Each princi- pal element of a construction project, such as a building, aparcel of land, or a warehouse, that has been physically and financially completed except for the settlement of minor outstanding claims shall be closedto the completed P&CE accounts on the basis of actual total cost incurredto date. To maintain project historical data, significant costs incurred in the settlementof claims outstanding at the time the project is closed. and claims arising after an element has reenclosed, shall be recorded in the Construction Work in Progress account when paid, but subsequently closed to Completed Plant and Capital Equipment. Necessary adjustments tothe original costs of the related property record units previously recorded shall bemade. Insignificant costs that arise later maybe written off through P&CE adjustments. Costs of individual elements closed during the ● year maybe initially assigned to asset type Unclassified Plant and VI-20 ● 1-7-93 DOE 2200.6A Paragraph 21(l) Equipment, but at yearend such costs must be appropriately reclass~fi ed (based upon estimates. if necessary) totheir probabl e asset types. (2) To prevent the improper expenditure of funds or accumulation of costsat the end of the project and to facilitate thereconcil Iatlon of real prop- erty accountability records with financial control accounts. the finance and project management staffs shall establish effective procedures to provide for the closing out of construction projects iublt as soonas feasible after beneficial occupancy and acceptance by DOE. (3) DOE Z200.8B, ACCOLJNTING SYSTEM, ORGANIZATIONS, AND REPORTING, Chapter 11, “Internal Reporting,” contains the requirement for preparation ofa final cost report by the prime construction contractor or architect- engineer, depending upon the type of contracting Involved. The final cost report provides a basis for entering construction project costs in the continuing property records and ameansfor determining the costs of property record units and therefore shall be prepared under the general joint direction of finance, construction, and property management in the responsible field element. k. ~. The real property recorded on the financial recordsof DOE and its integrated contractors shall be reported in the financial state- mentsof the Department. (See DOE2200.8B, ACCOUNTING SYSTEMS. ORGANIZATIONS, AND REPORTING. for specific requirements for both internal and external reporting. ) Generally, the financial statements or the footnotes thereto shall disclose, at aminimum, the following: (1) Real property classified into the following categories (separated by depreciated andnondepreci ated assets): (a) Land and improvements and (b) Structures, facllitles, and improvements; (2) Construction work fnpro9ress: (3) The basis fordeterminfng asset value; and

(4) Additions to and retirements ofreal property each fiscal year. 1. ~. DOE organizations and integrated contractors shall reconcile annually their property records with summary financial control records. The annual reconciliation shall use the financial control recordsas of9-30. To assist with the reconcil lation of the Real Property Inventory System (RPIS) and the Financial Information System (FIS), the following guidance shall be observed: VI-21 al (1) FIS shall contain the official DOEfi nancial control amounts. I DOE 2200.6A Paragraph 21(2) 1-7-93 (2) (3) (4) (5) To permltagreement with the 9-30 FIS financial control records, restrict changes andaddltlonsto RPISto real property changes incurred only through 9-30. October changes may not be recordedin RPISuntfl November. To ensure that real property changes are recorded ln the same month and amounts fnboth FISand RPIS, both flnancfal and facility management shall coordinate real property changes. Only appropriate real property asset-type and use status codes shall be used. (See DOE 2200.10A. ACCOUNTS. CODES, AND ILLUSTRATIVE ENTRIES, Chapter II, “Financial Codes.”) The cognizant project manager shall provide an allocationto theappro- priate asset type codes for any project in which the property has been accepted for beneficial occupancy even though the final cost reportis not complete. 3. ~. a. Mflnltion. For financial management purposes, personal property ls generally capitalizable property that can bemoved-thatls, not permanently afflxedto and part of the real estate. Generally, ftems remain personal property ifthey canbe removed without serlouslydamaglng ordimlnlshlng the functional value of either the real estate or the items themselves. Examples of personal prop- a ertyare shop equipment, motor vehicles and aircraft, construction equipment, and automated data processing and peripheral equipment. b. ~.Ledger subsidiary accounts shall bemafn- tafned to include capftal equipment by account and additional data code ele- ments, suchas asset type, use status, and site, whlcharellsted anddescrfbed fnDOE 2200.10A, ACCOUNTS. CODES, AND ILLUSTRATIVE ENTRIES, Chapter II. “Financial Codes.” C* ~. (1) All capftal equipment. except as qualfffed below. shall be recorded fnthe ledger control account Completed Plant and Capital Equipment, which Is supported by summary and detail accounts for each DOEactivlty. (2) The Construction Workfn Progress account shall fdentffythe coststo purchase, fabricate, and fnstall individual Items ofcapltal equipment not relatedto construction usfng P&CEapproprfated funds (Budget and Reporting Classfffcatfon Code35. Capftal Equipment Not Related toCon- structfon). when the fndfvfdual ftems are installed and placed fn opera- tfon (or, ~nthecase of offslte nonlntegrated contractors, reportedly thesemlannual report), they shall be closed to the completed P&CE account. The costs tosfmflarly acqufrecapftal equipment usfng expense funds shall be accumulated fnthe budget and reporting structure for programmatic activities and transferred (usfng nonfundaccountfng entries) directly into the Compl eted Plant and Equipment account. VI-22 1-7-93 DOE 2200.6A Paragraph 3e(2) I (3) Financial records shall not duplicate the detafled propertY records maintained bythecognlzant property officer. However, forlnternal control purposes, the balancesln the financial accounts shall be reconciled semiannually with the detailed property records.

(1) The cost of equipment acqu~red by purchase fncludes net invoice cost. less discount, plus transportation char9es , modification, and installation costs. If property acquiredby purchase includes a trade-in, the recorded cost of the purchased item shall be the lesser of the net invoice cost plus the allowance for the traded-in item, or the net invoice cost lf thereis no trade-in. (2) The amount capitalized under an installment contract incl udesthepur- chase price, other costs incidentto the purchase (for example, freight), and the netcost tomake the equipment ready for use. Record such equfpment in the accounts atthetimeltis placedin service. (3) The amount capitallzedbY exercising the option to purchase undera short-term lease arrangement includes the purchase price stipulatedin the contract, net of any allowances, plus prior costs of transportation and installation, inapplicable. (1) Aleasethat meets the induStrY and General Accountin90ffi cc-mandated standards ofa capital lease as further described in the following para- graphs ls an installment purchase contract for a capital asset and shall be budgeted, accounted for, and disposed ofaccordin91Y. Lease payments shall be charged to the program activity benefiting from theuse of the property. The distinction between capital expenditures and operating expenditures shall be identified to ensure proper accounting for these purchases, particularly when commitment documentation is processed. This distinction shall be maintained when preparing procurement request documents. (2) Generally. the decision toacqui recapltal equipment by lease is supported by a lease-versus-purchase analysis in accordance with DOE Acquisition Regulations, part 907, subpart 907.402-70, and OMBCircular A-104. All leases ofcapltal assets must rejustified as preferableto direct Govern- merit purchase andownershlp. To develop this comparative cost analysis, “overall costs’’ of the equipment over the stated life of the equipment shall be identified. Overall costs shall include but not delimited to such cost elements as purchase cost, rental costs, lease cost, maintenance cost for purchased equipment, site preparation cost, and installation cost. In performing a comparative cost analysis of the alternative methods of acquisition, the discounted (present value) life-cycle cost of leaslng shall be compared with the cost of buying an identical asset. VI-23 DOE 2200.6A 1-7-93 I Paragraph 3e(3) (3) The cost of capital equipment acquired under a lease-to-ownership — arrangement shall be treatedas a capital lease (comparable toan install - merit purchase contract), and the property shall becapltalized if, at the fnceptfon of the lease. any of the followfngcriterfa aremet: (a) (b) (c) (d) (e) The lease transfers ownership ofcapftal equipment to the lesseeby the endof the lease term. The lease contains abargain purchase optfon (that Is, aprovfsfon giving the lessee the option to purchase the leased capital equipment for apricesufflcfently lower than the expected fair value of the property at the date the option becomes exercisable) andexercfseof the optfon appears. atthefnception of the lease, to be reasonably assured. Theleasetermls equal to75 percentor more of theestlmated eco- nomic lifeof the leased equipment (thatfs, the estimated remaining perfod durfng which the property is expected to be economically usable by one or more users, with normal repairs and maintenance, for the purpose forwhlch ftwas fntended atthefnceptfon of the lease).

The present valueof the rental and other mfnfmum lease payments, excluding that portion of the payments that represents executory costs, suchas insurance, maintenance. and taxes to bepafd by the lessor. is at least 90 percentof the fair valueof theleasedprop- ● erty over any related investment tax credit retained and expectedto be realfzed by the lessor. The last two criteria do notapplyff the beginning of theleasefal 1s wlthfn the last 25 percent of the total estimated economic lifeof the leased property, fncludfng earlleryears of use. (4) The present value shall be computed using the Treasury Average Interest Rate for Marketable Interest-llearfng Debt unless the following condftfons apply: (a) It lspractfcable tolearn and use the interest rate fmplfcitln the lease computedby the lessor, and (b) The implicit rate computed by the lessor is less than the Treasury Average Interest Rate for Marketable Interest-Bearfng Debt, as described in OMB Circular A-104. (c) For acquisitions of automati cdataprocessfng andtelecommuni cation equipment, use the discount rate specified fnthe Federal Informa- tion Resources Management Regulations (41 CFR 201-24.208(b) and 24.305 ) . (5) The lease of capital equipment that meets oneormore of the crfterfafn ● paragraph 3e(3) fsacapftal lease and shall be accounted foras aproperty VI-24 1-7-93 DOE 2200.6A Paragraph 3e(8)(b) acquisition at the time of delivery to DOE. The lease shall be recordedat thelower of the property’s fair value or the computed present value of the minimum lease payments by a nonfund debitto the completed P&CE accountant an offsetting nonfund credit toa liability account (Deferred Credits). The difference between the total lease payment and the amount recordedas the capital leaseis interest. Aportion of each lease payment shall be allocated to interest expense, and the balance of the payment shall be appliedto reduce the lease liability. To compute the amount allocatedto interest expense, the same interest rate shal 1 be applied to compute the present value ofminimum lease payments. Summary Class Code 64, P&CE Acquisition from Capital Leases. shall be used for the nonfund asset write-on accounting entry. (6) For those capital leases funded from P&CEappropri ations. the monthly cost accrual for the lease should be debited to budget and reporting program35 or39as appropriateon a fund basis in the Construction Workin Progress account. Atthe sometime, anonfund adjusting entry should bemade, cred- itingthi s same account using summary class code64, and debiting the Deferred Credit account. (7) In instances where capital leases are funded from the operating expenses appropriations, debit the full monthly cost accrual forthe leaseto an operating expense program on a fund basis. At the same time. anonfund adjusting entry shall be made, crediting the same operating expense program and debiting the liability account Deferred Credits fora propor- tionate share of the amount capitalized. In this situation. legal counsel shall ensure that the restrictionon the use of operating appropriations for equipment purchases asstated in the Energy Reorganization Actof 1978, Public Law95-238, 2-28-78, section ill(b)(2), Is not violated. Under section lll(b)(2)o operating appropriations, pursuant toanautho- rization act, maynot be used for anymajor itemof equipment, including collateral equipment. if the estimated cost to DOE exceeds $2,000,000, unless such item has been previously authorized by the appropriate commit- tees of the Houseof Representatives andthe Senateor the appropriate committees do not object to the purchase of the item under procedures outlined infection ill(b)(2).

(8) Capital equipment acquired bycapi tal lease shall be depreciated. Depre- ciation shall recomputed and recorded based upon either the expected service lifeof the leased propertyor the term of the lease, as appropri- ate. The property shall be depreciated over its estimated service lifeif the criterion used to classify the leaseas a capital lease was eitherof the following (in all other cases. the property shall be depreciated over the term of the lease): (a) Ownership of the property is to be transferred toDOEby theend of the lease term. or (b) The lease contains abargain purchase option. VI-25 DOE 2200.6A 1-7-93 Paragraph3f f. 9. h. i . il. k. 1. ~. Ifanfndivfdual item of capital equfpment ~ related to a construction or fabrication activityis anlntegral part of that activltyorfs related to, designed for, orspeclally adapted to the functional orproductlve capacity of that activity, then the costs to purchase, fabrfcate, and install such an item shall be fncluded in the cost of the activity. ~ica~. The costs ofltems fabricated ina contractor’s shop or by scienttftc personnel in a laboratory shall becapftalfzed. and those costs shall be recorded in the Completed Plant and Equipment account. Actual costs may be used whenever possfble, butan estfmate approved by DOE management may be used when necessary. ~.(See DOE 2200.9B, MISCELLANEOUS ACCOUNTING, Chapter VII, “Transfers.” for deta~led instructions regarding theaccountfng for P&CE transfers between DOE offices, between DOE integrated contractors, and between DOE and other Federal agencies.) ● Property acquired by foreclosure processes shall be recognlzedatlts appraised value. The differ- ence between amounts due and costs fncurred shall be recognized and assets recorded at the appraised valueas a current perfod loss orgafn. ~.Property acquired bydonatlon, device, for- feiture, or confiscation shall be recorded atthe estimated fafr value plus any costs fncurred to place the propertyin use. ● ~. (1) The cost of property purchased or fabricated for useln research maybe charged tooperatlng expense ff the property Is not expected tohavea servfcelife ofmore than 2years tn essentially its origtnal form, even though ft may meet the monetary and physical criteria that would otherwise require lttobe accounted foras a P&CEadditlon. (2) The cost ofalterfng and rearranging property used fnresearch laborato- riesmay be charged tooperatfng expense ffthe physical characteristics orvalue of the property are not changed slgniffcantly by such alterations and rearrangements. tal F~ired ThrW an~. (1) An interagency agreementfs awrttten agreement entered Into between two Federal agencies that specifies the goods to refurnished ortasks tobe accomplished by one agency in support of the other. Interagency agree- merits are typically procurement instruments that arewrftten to clearly specffy goodsto be furntshedor work contemplated, reportlngrequlre- ments, procurement and patent polfcy, and arrangements for transferor funds. The Director of the Office of Procurement, Assistance and Pro- gram Management, or designee, has the authority to execute interagency agreements obligating DOE funds. ● VI-26 1-7-93 OOEZZUU.6A Paragraph 3m(2) (2) If capital equipment is purchased orotherwl se acquired by the other agency’s funds, see paragraph3m. (3) Ifcapltal equipment is purChasedorotherwi se acquired with DOE funds pursuant to an agreement. unless otherwise agreed by DOE and the other Federal agency, then the following shall apply:

(a) The tltlethereto shall vest in DOE, (b) The other Federal agency shall be accountable for the property until It ls transferred to DOE, and (c) The other Federal agency shall maintain arecord of capital equipment procured or fabricated. (4) Unless expressly authorized by the contractin90fficer Inadvance, the other Federal agency shall notbe reimbursed for the procurement or fabrication of capital equipment. (5) At the termination or completion of the agreement, accountabi lityand control of items, regardless of dollar value, shall be transferred to DOE, lfsorequested by DOE. If transfer is not requested, title shall be transferredto the other Federal agency. (6) Not later than 15 days after the close of each reporting period, the other agency shall furnish DOE monthly or other periodic cost or financial reports in such form and detail as stated in the Interagency agreement. Any costs incurred for capital equipment shall besupported bya list showing thedescripti on, make. any serial number, and the cost of each item acquired. MO ~ includes property that is borrowed from othersor that isin DOE’s possession through purchase with funds provided by othersto perform their work In accordance with an interagency agreement. Each organize- tionhaving custodyof any such property shall establish detailed procedures to provide effective control over the property. Property control including the vesting of title shall be in accordance with terms and conditions of the agree- ment (see DOE-PMR109-l.5105) or the working arrangements for theuse of funds and propertyof others. It is not intended that DOE record such property inits financial accounts, nor that depreciationbe recorded thereon. iftltleis vested in the other party or parties. However, property management personnel are responsible for developing and administering detailed procedures for the control of property belonging to others, and the procedures shall. at a minimum, provide the following: (1) Memorandum control records shall bemaintained that reflect quantities and original acquisition costs, estimated if necessary. of all property belonging to others. (2) The control records shall be supported by afile of documentation pertain- Ingtothe property and, where considered desirable bythe Head of the VI-27 DOE 2200.6A 1-7-93 Paragraph 3m(2) Field Element. by detailed property record cards maintained on the same ● baslsas the records for DOE-owned property. Care shall be taken to ensure that the supporting records clearly show the owner of the ftem, adequate Identfflcatlon, theorlgfnal acquisition cost (If known), thecondftfon of the property when recefved, theterm of the loan, and any other pertinent detaf 1s. (3) Physical inventories of property belon91n9 to others shall be takenon the same cycle prescribed for DOE property. Any exceptions must recefve the prior approval of either the Dfrector of the Offfceof Admlnfstratfon and Management (for real property) or the Director of the Office of Pro- curement, Assistance and Program Management (for personal property). (4) Possession of property belon9in9 to others shall be approprfatelydis- closedln the financial statements a footnote based upon information provided by theproperty management staff.

n. ~. Inthe contextof nuclear weapons pro- ductlon, special toolfngandspecfal test equipment are exemplfffed bypro- cured or fabricated nonstandard hardware wfthdedlcated applfcatfons ~nthe production ofa particular product orweapons system. Special toollng and test equlpmentlncludes all nonstandard manufacturing tools, vendors” tools, and quality-acceptance and in-process test equipment and gauges, aswell astools Inftiallyrequfred for development butlntended at the time of procurement or fabrlcatfon for use fnthemanufacturfng ofweapons. Specfal toollng and test equipment costs are typically funded wfth operating expense funds and are bud- getedfor and accounted for fnthedomfnant end-use actfvlty. Special toolfng and test equipment costs shall be recordedfn production fnventoryandunft- amortized to benefltfng product over the total production schedule, andas such they are excepted from the requirement that ftemsmeetfng thecapftal izatlon crfterfa becapftalfzed. o. J@ortfna~. To comply wfth the needs of DOE managers and General Accounting Offfce gufdelfnes, property reports shouldbe desfgnedto accompl fshthefollowfng objectives: (1) Prompt preparation of all needed flnancfal and management reports; (2) Full disclosure ofsfgniffcant ffnancfal and management fnformatfon concerning acqufsftfon, dfsposftfon, and transfer ofcapftal property and equfpment; and (3) Preparation andlssuanceof reports as often as necessary to beofmaxfmum use tomanagement offfclals and tomeetprescrfbed external requirements (the reporting requirements are part of the normal monthly orother perfodlc submfssfon to FIS. whfch fs covered fn DOE 2200.8B, ACCOUNTING SYSTEMS. ORGANIZATIONS, AND REPORTING) . P. ~.DOE ffeld elements and integrated contractors shall reconcflethefr property records wfth summary ffnancfal control records VI-28 1-7-93 DOE 2200.6A Paragraph 4b(2)(a) I semiannually for personal property and annually for real property. Offsite nonlntegrated contractors shall submit semiannual summary reports (the orlglnal and two copies) to the property administrator, showing theacqulsi- tloncost by asset type for property purchased aswell as disposedof (see DOE Acqulsitlon Regulatlonso part 945, subpart 945.505-14). After approv~ng each report, the property administrator shall promptly send onecopy to the office of the Field CFO for reconciliation with summary financial control accounting records. Reconcfl latfon means comparing the dollar acqufsftion cost by asset type of property in the possession of a contractor with the dollarsby asset type of property in the corresponding ffnancfal control account maintained by theresponsfble field element. The nonintegrated contractor shall identify and explafn differences, and the Field CFO shall approve all accounting adjustments to the financial control accounts. 4. FNT-WFD. C~. a. JWpose. To set forth the general polfcyto be used by the office of the Ffeld CFOforestabllshing financf al accounting of Government-owned, contractor- held property. Detafled property records malntafned by contractors shall not be duplicatedby DOE. Ffnancfal control accounts are to bemafntafned bythe approprlateofflce of the Field CFO. Contractors’ procedures are not covered except to the extent that such procedures must accurately and reasonably produce the~nformation thatfs requfredby DOEto mafntafn accurate ffnancfal records of property. This section does not attempt to supplant therequfre- ments of the Federal Acquisitfonor Property Management Regulatfonsor the DOE Acqulsitionor Property Management Regulations for maintaining control over Government propertyo but ftdfscusses toplcsof common interest to both finance and property management personnel.

(1) R.e.finltiu. An integrated contractor fsacontractor that works for DOE: uses DOE funds to finance its operations under a cost-type contract; and maintains a separate set of accounts and records for the recordfng and reporting of all business transactions under the contract in accordance wfth DOE accounting practices and procedures, and whose accounts, maln- tainedfor operations under the contract, are integrated with those of DOE. (a) The financial control between DOE and the integrated contractors accomplfshedby integrating the contractor’s accounts wfth those of DOE. This integrationfs covered fn detail in DOE 2200.8Bo ACCOUNT- INGSYSTEMS, ORGANIZATIONS, AND REPORTING, Chapter I, “Accounting Systems and Organization.” VI-29 DOE 2200.6A 1-7-93 Paragraph 4b(2)(b) (b) At amlnfmum. property records of integrated contractors shall fnclude the ● following data, which should be useful to both finance and property management personnel : 1 2 3 4 5 z Account and supplementary data code number (such as asset type, use status, andslte): Property record unit title and descrfpt~on. including inventory or property control number (U.S. Government ldentfffcatfon tag number): Locatfon data sufficient to facilftatephysfcal fnventorfes and provfde other necessary admfnfstratfve controls; Date ofaccountfng entry: Reference toaccountfng journal entry, project number, and other project fnformatfon: Date placed fnservfce, ffsubstantfally different from the date of accounting entry; Addftions, quantfty and dollar amount (acqufsitfon cost, netof discounts); Retirements. quantfty and dollar amount; and ● Standard or estimated servf celffe. (3) 5gportlna Reauiremer.Wof integrated contractors are apart of the normal monthly or other perfodfc submfssfonsto FIS (descrfbedfn DOE 2200.8B, ACCOUNTING SYSTEMS, ORGANIZATIONS, AND REPORTING). (4) ~.Integrated contractors shall reconcfle thefr property records wfth summary ffnanclal control records semf- annually for personal property and annually for real property. Reconcilf- atfon means comparing the dollar acqufsftfon costby asset typeof property in the possession of acontractorwfth the dollar by asset typeof property fnthecorrespondfng financfal control account mafntafned bythe Integrated contractor. The integrated contractor shall fdentffy and explafn differences, and the Ffeld CFO shall approve all accounting adjustments to the financial control accounts. c. ~. (1) Reffnftf~. An offsfte nonfntegrated contractor fsone that works for DOE, recefves DOE funds fn reimbursementof operations. andmafntafnsan accounting system for therecordfng and reporting of all busfness trans- actfons under the contract and whose accounts are not integrated with DOE. An offslte nonfntegrated contractor fsnot a transportation contractor. ● grantee, cooperative agreement recipfent, or State orlocal government. VI-30 1-7-?3 DOE 2200.6A Paragraph 4c(4) The contractoris directly responsible and accountable for all Government property in itspossesslon or control In accordance with the provlsionsof the contract, Including property provided under such contract that maybe In the possession or control of a subcontractor. (2) WIal Cg.ntrols. An offsite nonintegrated contractor shall establish and maintain adequately detailed financial recordson property acquisi- tton, dlspositlon, and fabrication as required by the contract. The cog- nizant Field CFO shall maintain the summary financial control accounts. Ataminlmumo property recordsof nonintegrated contractors should Include the following data:

(a) (b) (c) (d) (e) (f) (9) (h) (i) (j) Contract number, Asset type. Descriptlonof item (name and serial number). Tag number (Government ownership identity), Acquisition document reference and date, Manufacturer’s name and model number, Location (physical area), Unit acquisition cost (including dellvery and installation), Use status, and Sfte code. (3) k.portina~. The cognizant Field CFO shall establish proce- dures to require that payment vouchers submitted by contractors itemize accountable property purchases, categorfzedby DOE funding type, and record th~slnformation accordingly. In addition, the contractor shall preparea semiannual report, as of2-28and 8-31 of each year, for eachof Its contracts and subcontracts, showing the dollar amount and the number of Iine items of P&CEby asset type, that were acquired, fabrlcatedo or disposed of during the period. At aminimum, the report shall show the beginning balance, acquisition. fabrication, disposition, andendtng balance. The report shall be submitted 45 days after theend of the reporting periodor ffnal date of the contract, inapplicable. Theorfg- inal andtwocopfesof this report shall be sent to the property adminis- trator, who, in turn, shall provide copiesto the contracting officer and totheservfcfng financfal organization. (4) .clliatlon ~ Thesemlannual report provides DOE with ffnancfal data on DOE-furnls~edor contractor-acquired property inwhich title fsvested with DOE and facilitates the reconcil iation of the detal 1 ed property accounts of the contractor with the summary ff nancf al VI-31 DOE 2200.6A 1-7-93Paragraph 4c(4) control accounts of the cognizant DOEfiel delement. Reconciliation means ● to compare the dollar acquisition cost by asset type of property inthe possession of a contractor with the dollar by asset type of propertyin the corresponding financial control account. The contractor shall identify and explain differences, and the Ffeld CFO shall approve all accounting adjustments to the financial control accounts. a. Jmproduction. The Director of the Office of Administration and Management is responsible for establishing the frequency and conduct of physical inven- tories of DOE-owned or DOE-controlled real property. The Director of the Office of Procurement, Assistance and Program Management is responsible for estab- lishing the frequency and conduct of physical inventories of DOE-owned or DOE-controlled personal property. However, as a function of internal control, the results of physical inventories shall be provided to the office of the Field CFO for purposes of reconciliation and adjustment to the financial control accounts. b. ~. Physical inventories are to reconducted atall DOE and contractor Locations at regular intervals. Physical inventories of real property (suchas fencing. buildings. other structures, utilities. and related support systems ) are taken at least every lOyears. Physical inventories of capital equipment areto be taken at least every 2years: more frequent inventories shouldbe taken of sensitive items of equipment easily converted to or for personal use, whether recorded in the completed P&CE accounts orin the equipment account- ability records. When experience indicates that an exception to the above inventory cycle is warranted, prior approval of the Directorof the Officeof Procurement, Assistance and Program Management will be requested, identifying the equipment classification, past experience on physical inventories, the recommended inventory cycle. and any other justification pertinent to the change.

C* ~. The results of all physical inventories of completed P&CE items taken at DOE field elements and at contractor locations shall bepro- vided to the property administrator. who shall furnisha copy to the contract- ing officer and the Field CFOforreconcil iation with established financial control accounts. Inventory summaries shall be prepared, showing cost by asset type to facilitate this reconciliation. Asigned statement shoul d accompany the results ofeachphysi cal Inventory, stating when the inventory wascom- pleted and whether the inventory agrees with the property records. Alisting will be provided showing differences (item, quantity, cost, andcircum- stances). The Head of the Field Element, the property administrator, and the Field CFO shall investigate all significant discrepancies identified through the physical inventory and reconciliation process, determine the causes, and effect remedial measures where possible in order to safeguard against wasteo theft, and misuse of property. Adjustments to the accounting records for discrepancies between the results of the physical inventory and the recorded P&CE shall be supported bydetafled adjustment analyses approvedby VI-32 1-7-93 DOE 2200.6A Paragraph7a responsibl eofflclals, Including contracting officerso property administrators, directors of administration, and Field CFO’s. 6. DFRGRANTS. COu~ff SPECIAI RF= CQNXBMX. a. b. c. d. lnlrg-dd. This section establishes the crlterla for the ffnanclal record- ing of property acquired or furnished under theterms of DOE grants and coopera- tive agreements. DOE4600.lA, FINANCIAL ASSISTANCE PROCEDURES MANUAL, of 4-1-87, sets forth direction for the DOE administration of these instruments, including property management, vesting of title, and reportingof property. Deffnftions. The term ’’grant” means money or property provided inlieu ofmoney paldorfurnfshed by DOE to recipients under programs that provfdefinanci al assistance or that provide support orstimulatlon toaccomplfsha publfc purpose. The term ’’recipient” fncludes the following types of organfzatfons: publfcand prfvate institutions of higher education, publlcand prfvatehos- pltals, community action agencies, research instituteso educational assocfatfonso health centers, and State and local governments. Mp.Q.cZi-n.gJ~. Annually and at the completion of theagreemento recfpfents are requfred toprovfdeto thecontractlng offfcer (who shall provfdeacopy to the offfceof the Field CFO) an fnventoryllsttng of DOE-owned property in thefr custody. ~. The inventory reports shall serve asthebasls for reconciliation ofcapftal assets with the financial control accounting records of thecognlzant Ffeld CFO. Reconcfl fatfon means to compare the dollar acqulsftion cost byasset typeof propertyin thepossessfon ofa recfpfentwfth the dollarsby asset type of property fn the corresponding ffnancfal control account. 7. KW.WHQN.

a. JMmsluctfon. Assets are recorded atacquf sftioncost and in accordance wfth definftlons of typesof assets (such as bufldlngs, motor vehicles, andcomput- ers). This fs done partly tobe fncompl iance with general ly accepted account- ingprfnciples and, more partfcularlyo in order to calculate depreclatfon expense. The latter fs essential to effectively calculate costs ofoperatfon andproductfon. aswell as prfces to be charged for the products andmaterfals that DOE sells and manufactures. Depreciations considered ameans bywhich the Department can recover the investment fn property through the priceof goods orservfces ft sells. DOE polfcyfsconsfstent with the industrial -based accounting concept accepted by the Department and its predecessor agencies. It fsthe policyof the Department to report deprecfatfon for all Departmental activities and programs. Accumulated deprecfation accounts aremafntafned and reported for each asset type classification of P&CE except Minerals and Tfmber, for whlchaccumulated depl etionaccounts areapproprf ate. and Land, whichfs not deprecfated. Depletion fsexplafned further fnparagraph7f(4). VI-33 DOE 2200.6A Paragraph7b 1 - 7 - 9 3 ● (1) ( 2 ) ( 3 ) (4) (5) Depreciation charges shall be based onthe costof depreciable assets recorded lnthe P&CE accounts, Iess the estimated net salvage, lfslgnifl- cant. Net salvage ls the actual orestlmated amount recovered or recover- able from the sale, transfer, or reuse ofretlred P&CE, less expenditures for the sale or transfer. Charges tolnventory or other appropriate accounts for reusable materials or parts recovered from retired units also are considered as salvage (includes plant and equipment with inherent useful value aswell aswith valueas scrap material). Generally, all llmited-llfe property, Including property being acquired bycapftal lease, Is considered depreciable whether fnservlceorln standby. All ftemsof property that have an unlimited life, or for which the salvage valuefs estimated to equal theorigfnal cost of the assetso shall be con- sfdered as nondeprecfable; such assets fnclude those recorded fn the asset type classfffcatlons for Land; Land Rfghts; and Sfte Preparation, Gradfng, and Landscaping. However, land rfghtsacqulred foralfmlted perfod of years are depreciable. The strafght-line method of assfgnfng deprecfatfon expense toaccountfng periods fstobe used generally throughout DOE. Theunits-of-production method may be used only fn special cases where applicable, suchasdeprecf- ● ating automotive equipment on amileagebasfs orconstructfon equfpmenton an hourly use basis. Deprecfatfon shall not recalculated for the following P&CE accounts: Status Code04, Excess Plant and Equfpment, and Asset Code 760, Reserve Construction Equipment Pool. P&CE shall not be depreciated fnthe process ofconstructfon untfl the facflfty, or segment thereof, isplacedfn servfce and the cost closed or transferred to the completed P&CE accounts. c. RepmxWitMJM,eMmiS. As discussed fnparagraph7b(4) ,thestrafght-line method of assigning deprecfatfon expense is to be used general ly throughout DOE. In practice. the following are methods of applyfng strafght-line deprecfatfon: (1) Unit ProceWWWXt(MupMina Dqzrecfatlon FXDemE Under theunftproce- dure, aunit of property fsdeprecfatedat arateb~sed on its speclffc servfcellfe. If ltisretfred from servfce because of normal causes before theexplratton of fts estimated servlcellfe, the retirement loss is charged todeprecfation expense andacredftis made to the accumulated deprecfatfon account.

(2) ~. Under thegroup pro- cedure, an average servl ce 1 f fe fs determined for al 1 1 f ke unf ts. An average deprecf atlon rate fs determined and appl f ed to the total cost of a group of slmll ar units. Deprecl ati on expense appl f cabl e to survf vf ng unf ts fn the group continues as 1 ong as any of the unfts remain in servf ce, VI-34 1 1-7-93 llOE 2200.6A Paragraphed regardless of age. Atthe time the retirement work order is closed, and if theretlrement isdue to normal causes, the original cost of the retired facilities may recharged to the accumulated depreciation account andno Iossorgain is recognized. (3) ~. Composite depreciation rates maybe appliedto P&CE accounts in computing depreciation amounts, provided the composite rates are based on calculations using particular groups of assets (for example, trucks, cars, and buses) and their applicable indi- vidual rates and noton rough general estimates. Composite rates shall be computedby applying the appropriate individual rates to the cost of each group included in the accountant dividing thesum of the amounts thus obtained by the total balance of the account. Composite rates shall be redetermined whenever substantial changes occur in the relative propor- tionof different groups inan accountor when individual rates basedon standard service lives are changed. To illustrate, assumea P&CE account includes three groups of units, each having a different depreciation rate. The computation of the composite rate wouldbe as follows: Book Annual eciatiw 1 $10,000 20% (5yrs) S2,000 2 5,000 16.6% (6yrs) 830 3 10% (lOyrs) S6.33Q The composite annual depreciation rate in this situation woul dbe: ML33Q- 12.7% $50,000 d. Depreciation C~. (1) ~ * The list in Attachment VI-l shall be used in determining depreciate onrates for all items of completed P&CE except for those items having service lives that are materially different from normal averages becauseof the peculiarity of their useor other special conditions. The list is expandedor revisedas required. Extraordinary obsolescence and nonrecurring casualties were not considered in establishing these standard service lives. (2) Revision to Standard Se vice Liwsr . Requests for each revision to the standard service lives shall contain a complete descriptiono use made, unit cost, retirement history of identical or comparable items, and rec- ommended service life (including support for the recommendation). In addition to this information, the peculiar uses or other considerations shall be described fully, the dollar investment in the anticipated net salvage value of the P&CE for which revision is requested, and any other VI-35 DOE 2200.6A 1-7-93 Paragraphed Information considered pertinent to the specific case. The CFO shall ● review and approve all requests forrevls~on to the llst of standard servlcellves. (Power marketing administrations should referto publications or studies on utility plant service lives.) (3) ~. When DOE-wide revisions aremade to standard service lives or when specific deviations from the standards are approvedby theCFO, an adjustmentto Plant and Equipment Adjust- ments-Services Life Adjustments (B&RYN) and to Accumulated Depreciation Accounts for the over- or underaccumulation of depreciation shall bemade.

(d) ~. Each Field CFO shall establisha Depreciation Committee or asimilar committee charged with that response- bllity among other duties, composed of DOE employees. The committee shall coordinate, review, and recommend for submission by the Field CFO to the CFOall requests forrevislons, deviations, and additions to the list of P&CE standard service lives; periodically review the accumulated depreci- ation accounts to determine whether the balances are either excessive or inadequate; and further the uniform use of the standard service lives and depreciation rates derived therefrom by the field element andcontrac- tors. These reviews may beperformed ona cyclical basis; any necessary changes in the depreciation accounts shall be made promptly after approval by the cognizant Field CFO. e. ~. Depreciation shall be recorded monthly. The asset ● base for calculating the monthly depreciation charge shall be the acquisition cost of depreciable P&CE accounts, less the estimated net salvage amount, if significant. However. when major retirements or additions occur that are large enough to materially affect the depreciation expense related to unit product costs or to the depreciation expense applicableto other DOE activities (such as work for others), adjustments to the depreciation base shall bemadeeffec- tivewith the first of the month following the month in which the change occurred. In the Statement of Operations, depreciation onthe P&CE in each use status shall be treated as follows: (1) ~. Depreciation on P&CEin service shall recharged totheappro- priatebudget and reporting classification (for example, production cost, development, research, or program directions) in which the items are used. (2) ~. Depreciation on P&CE in standby shall be charged to the budget and reporting classification of former use. However, when thereis a def- initeplan for the future use of the P&CE in standby, depreciation shall be charged to the budget and reporting classification of future use. but standby expense items applicable to production activities shall be reported (but excluded from product inventory) as other production expenses. VI-36 1-7-93 DOE 2200 .6A Paragraph 7f ( 5) (3) ~“To the extent that equipment in this classification can be identified as being held for use in a gfven budget and reporting classification. the depreciation expenseon such equipment shall be allocated to that budget and reporting classification. For equipment held for general or multipurpose use, depreciation expense shall be allocated to budget and reporting classifications on a reasonable and equitable basis. (4) =. Depreciation onexcessp&CE shall not recalculated. (1) ~. Premature retirements of large groupsof facilities making upan entire processor other function. ormaking upa large segmentof a processor other function, that result from unusual and revolutionary changes in technique or other radical changes approvedby DOE are considered as retirements due to extraordinary obsolescence. Such retirements cannotbe foreseen or anticipated and therefore are not con- sldered in establishing depreciation rates. Retirement losses resulting from extraordinary obsolescence shall be accounted for by debiting Plant and Equipment Adjustments–Extraordinary Obsolescence (B&RYN) and cred- iting the appropriate accumulated depreciation account. Retirementsof Isolated individual units of equipment shall not be consideredas resulting from extraordinary obsolescence.

(2) ~alti~s. In establishing depreciation rates, retirements ofP&CE resulting from casualties that cannotbe foreseen oranticlpated, suchas storms, earthquakes, explosions, and fires, shall not reconsidered. At the time of retirement, the net book costof P&CEreti reddue to such causes should rewritten off as a nonfund cost. (3) eciation of Improvements to Pro_pf@v of Others . Base depreciation accrual son P&CE included in the account Improvements to Propertyof Others on the normal service lives of the P&CE involvedor the estimated period of occupancy, whichever is less. Anycostof P&CE remaining on the records at the termination of the contract shall be written off, eitherat that time or upon the disposal of the property. by charging the account Plant and Equipment Adjustments (B&RYN). (4) ~. To calculate depletion, an estimate is madeof the amount of natural resources to be extracted, inunits of tons, barrels, or any other acceptabl e measurement. The estimate of total recoverable units Is then divided Into the total cost of the depletable asset. to arrive at a depletion rate per unit. The annual depletion expenseis the rate per unit times the number of units extracted during ayear. (5) J)il and Gas Pro_. In computing depletion for properties that contain both oil and gas, the oil and gas reserves and the oil and gas produced shall be convertedto a common unit of measureon the basis of their approximate relative energy contents (without considering their relative sales values) unless either oil or gas clearly dominates both the reserves VI-37 DOE 2200.6A 1-7-93 Paragraph 7f(5) oand current production. Units-of-productIon amortization rates shall be revised whenever there has been a significant change inoll and gas reserves. but at least once ayear. Capitalized costs shall be amortized in the following manner: (a) Acquisition, exploratory, and development costs of proved properties on a units-of-production basis. using recoverable reserves; (b) Costs of facilities for extracting, gathering, andstoringoll and gas on a units-of-production basis; and (c) Cost of gas plants ona straight-l Inebasis (one half oflyear of deprectation in theyear of acquisition and the other half ln theyear of disposition). VI-38 1-7-93 STANDARD SERVICES LIVES 1 DOE 2200.6A Attachment VI-l Absorbers Accelerators Acid handling equipment Adsorbers Agltatorsandmlxers Alr-condltfonlng equipment: Large (over 20tons) Medlum(5-20 tons) Small (under 5tons) Alrcoolers (spray oil) Afrcraft Afrpreheaters Airsupplyunfts Alley, robot, complete Ash handlfng systems Autoclaves Automatic data processing equipment a Automotive equipment: Ambulances Buses, passenger Carriers, weapon Cars, armored Jeeps Sedans Scooters Statfon wagons Trailers, automotive (all types) Trucks (all types): Heavy Light Bag sealers Baking panels Balers: Metal Paper Bar turners Bath, temperature Batterfes, storage (stationary) Battery chargers Beds, cooling Service Lffe (Years) 20 20 10 20 20 20 15 10 20 12 25 20 10 20 20 7 f) 10 10 5 6 6 6 10 10 8 20 20 25 20 15 20 10 10 25 a IPower marketing administrations should refer to publications or studies on utility service lives. VI-39 DOE 2200,6A 1-7-93 Attachment VI-l Benches, work Service ● Life (Years) Benches, work: Metal Wood Bevatrons Binoculars andteleblnocul ars Bfns, storage: Concrete Metal Wood

Blenders, dry material Blowers, exhaust, portable Blowers and fans Boats Boiler feed water system Boilers Boothers, Ingot separation, complete Boxes, fare Breaching and flue systems Breathing air system Bridges. highway: Concrete Steel: Heavy 10 15 20 15 35 30 15 20 10 20 10 25 25 8 15 25 20 50 50 ● Light 35 Wood Brlquetters :; Buckets: Load lugger 20 slug 20 Buildlngs: Temporary, llght wood frame, plywood orsheet metal exterior walls or arched sheet metal construction 10 Prefabricated (rehabllltated flattops) 20 Wood framfng. exterfor walls covered with wood sidfng. asbestos shingles 30 Lfght steel structures wfthfinlshed fnterfors 30 Masonry exterior walls. wood fnterfor framing or steel frame wfth metal panel walls, corrugated sheet metal siding and roofing 40 Masonry exterior walls, concrete or steel frame 50 Bus. electrical Same life asprinclpal structure, but notto exceed 50years Cabfnets, drying, ffrehose Cable, aerial, telephone 15 30 ● VI-40 1-7-93 0 Commun DOE 2200.6A Attachment VI-l tyfurntshings and equipment, musical instruments Service Life (Years) Cable, underground: Telephone Electric Calciners: Pot Trough Tube: Under 1,000”C l.OOO°C and above Canning stations Capacitors Car mover or puller, railroad Carrier current telephone equipment Car spot, railroad Cathodic protection units Cells: Electrolytic Electrolytic, steel -fluorine production Mockup facilities ~1 Structural Centrifuges Chargers. slug. Portable Lhargers. stationary (remote charging cave) Chime recovery system Chime straightener Chlorinators Circuit breakers, power Classifiers: Hydro Mechanical .wet Cleaners: Furnace pot Natural gas Clocks, watchman Coal handling systems Comminutors Communication systems Community furnishings (excludes intercommunication systems) and equipment: Barber and beauty shop equipment Dormitory and hotel furniture and fixtures Dry cleaning fixtures Grocery store furniture and fixtures Musical instruments 30 40 5 10 10 5 20 25 20 15 30 15 20 2; 20 20 20 25 10 15 20 25 30 30 20 25 15 20 15 30 10 15 15 15 10 VI-41 1 DOL 2200.6A 1-7-93 Attachment VI-l Community furnishings andequlpment, playground equipment ● Service Life (Years) Playground equipment Shoe repafr shop equipment Theater furniture andequlpment Compressors Compressors, gaseous diffusion cascades Concrete finishing machines. portable Condensers: Gas Synchronous Conductors: Overhead Underground: Electric Telephone Conduit, underground: Electric Telephone Containers, trash Control systems Converters Converters: Condenser, and tube test system Dry Ice Gaseous diffusion cascades Conveyors Coolant systems Coolers Cosmotrons Counters, traffic Cranes. mobile, crawler Cranes andhofsts, installed Crucible loading statfons Crushers Crystallizers (over 100 cubic feet tank size, 40 ft of deck length, or 3 sq ft of cooling surface per linear foot) Curtafns, ventflatfon Cutters, shade Cyclotrons Cylinders, product storage, steel Dams Deaerators Decks, slfme Degasfffers Degreasers Deheaderso drum Dehumidifiers (over 20 cubic feet tank size) 10 15 15 25 40 10 20 30 35 40 20 40 50 15 20 20 ● 15 25 40 20 30 20 20 15 :: 20 20 15 10 10 20 40 100 :; 20 20 10 20 VI-42 1-7-93 al Deioni zers (over 100,000 g of CaCOa) Demi neral 1 zers Demul SI fl ers Denltrat~on units DI gestors (over 100 gal) Dishwashers, electric Dlssociators, ammonia Dissolvers Drainage systems, open Drills, earth Drum painting and drying stations Drums, cylinders, and containers Drunkometers Dryers Dumpers, drum Dust collectors

Economizers Elevators .) Elevators, portable Engravers and engravographs Evar)orators Exciters Exposure fields Extrusion presses “F’’m achines Feeders Fences: Chain link Wire Wood Filter presses Filters Fire alarm equipment Fire fighting equipment, mobile Flagpoles Flexible shafts, with motors Freezers, electric Furnaces: Electric: Reaction Remelt Hearth Heat treating Roasting Tilting pot DOE 2200.6A Attachment VI-l Furnaces. tilting pot Service Life (Years) 25 25 20 10 10 10 20 10 50 10 10 10 10 20 20 15 25 25 10 10 20 25 25 20 20 25 25 15 15 20 20 25 :; 15 15 20 20 25 25 20 20 VI-43 DOE 2200.6A Attachment VI-l Garage equipment Garage equipment Generators: Electric: Emergency. turbine driven Diesel driven Motor driven Gas Vande Graaff Geological equipment: Geiger counters Sclntillometers Globes, geographic Grates, sluice Grease flotation units Grounding systems Ground wires, overhead Guard towers Guns, deluge (iymnasfu mequipment (such as box tumbling mats) Health ~nstruments Heaters Heaters. portable, electric: Over l0,000Btu IO,OOOBtu and under Heat exchangers Hoppers Hospital andmedlcal equipment: Beds andhospltal furniture Dental chairs Medical instruments X-ray equipment Hotmix plants Hydrants. fire ng rings, row~ngmach nes, Hydraulic accumulator systems (pneumatic oil) Hydraulic pressure boosters Incinerators Industrial trucks and tractors Instrumentation, gaseous diffusion cascades Instruments: Englneerlng Industrial Measurement and control Surveying 1-7-93 ● Service Life (Years) 10 30 25 25 25 20 10 10 15 50 :: 40 Rate accordingto type of construction 15 10 ● 10 25 10 5 20 25 15 15 10 15 20 50 25 20 VI-44 1-7-93 al Intercommunl catl on systems Irrl gatf on canals Janitorial servlceequlpment Jolters Kettles, heatlng,and melting Kilns (over 50 cubic feet) Laboratory equipment: DOE 2200.6A Attachment VI-l Mobil eand accessory equipment. tractors Service Life (Years) 15 100 10 5 15 20 Hoods Photographic equipment Professional and scientific instruments Pumps and other general equipment Sinks, cabinets, and other furniture Special radiation instruments, apparatus, and accessories Ladders, extension, metal (30 ftandoverl Laundry equipment Lighting fixtures, street and fence ~) Lightning arresters Light plants, emergency Loaders Locators, cable fault Locker assemblies Lubrication oil systems Magnets, lifting Magniflux machines Manholes Mannequins, thyroid uptake and calibration Meters, customer: Electric Gas Water Meters. speed: Electric Radar Mills, tumbling, wet grinding Mixing machines, gas and air Mobile and accessory equi pment: Air compressors Concrete mixers and pavers Excavating machinery Farm machinery Pumps Road machinery Tractors 15 10 10 20 20 10 10 15 20 25 25 5 15 10 20 15 15 40 5 25 25 30 15 10 20 20 15 10 10 15 20 10 10 VI-45 DOE 2200.6A Attachment VI-l Mobtle and accessory equipment, welders Welders: Electrlc Gas Mold coating systems Monorail material handling systems Motor generator sets Motors: Electrlc Internal combustion Nets, Ilfesavlng Odorizers, natural gas Office furniture and equipment: Furniture, fixtures, and filing cases: Metal Wood Mechanical equipment and machines Safes and vaults Oil bubblers Oil recovery devtces Oil storage and faltering systems Optical devices Ovens, electr~c orgas Partltlons, movable Photographic and reproduction equipment Piles (W Reactors) Pipe supports, outdoor Plplng systems, indoor:

Alr Gas Process Process, gas, gaseous diffusion cascades Steam Water Piping systems, outdoor: Air Gas Process Sewer Steam Water Pistol or rlflerange equipment Platform lifts, portable Platforms: Concrete Steel Transformer Wood 1-7-93 0 Service Life (Years) 15 10 20 20 20 20 10 15 25 25 20 10 40 20 20 25 ● 25 15 25 10 20 25 25 25 40 :: 25 25 25 40 25 40 ;2 25 25 20 10 VI-46 1-7-93 DOE 2200.6A Attachment VI-l Railroads, signal systems Platfng, coating, and stripping systems Poles, crossarms, and fixtures: Steel Wood Pools. spray Portable cranes, derricks, hoists, and winches Portable scales Portable tools: Air Electric Gasoline engine Power mowers Powerplants, portable Power wiring system. indoor Precipitators, electrostatic Proceksequipmento heavy Projectors, contour Proportfonerso chemfcal Protection equipment: water a Firearms” Fire extlngufshers Radio equipment Protective breathing apparatus Publlc address systems, portable Pulverizers Pumps: Water Other Purgers Radiation source material: Cesium 137 Cobalt60 Radium Radios Radio stations: Antenna Towers Transmitters Railroad rolling stock: Cars Locomotives Railroads: m Bridges and culverts Grading and ballast Rails and ties Signal systems Service Life (Years) 5 40 30 20 10 ’20 10 10 10 5 20 25 20 35 10 25 15 10 10 15 5 15 20 15 25 15 5 50 10 15 25 10 20 25 45 30 25 25 VI-47 DOE 2200.6A 1-7-93 Attachment VI-l Ranges. electric ● Servtce Life (Years) Ranges, electrfc Reactlvators (100,0OOgcapaclty) Reactors (electrical system devices) Reactors, nuclear: ProductIon Research Receivers, air Recreational facilities, outdoor Rectlfters (over lOkVA) Refrigeration systems Refrigerators Regulators: Circu~t and bus Pressure Remote handllngequlpment Repulpers Reservofrsandplts Restaurant, cafe, and canteen equipment Resuscttatorunlts Retalnlng walls: Concrete Timber Roads, walks, and paved areas: Asphalt Concrete Gravel or stone Robots, general purpose Rolllngmllls Saddles Sampler, automatic Scales: Conveyor Platform Screens: Trash Traveling Vibrating Scrubbers (tank over 20 cubic feet) Securfty alarm system Separation equipment Septic tanks Services: Electrtc Gas Sewer Water VI-48 15 25 25 25 25 25 20 10 20 15 25 20 10 20 50 10 15 40 20 20 15 20 20 35 25 20 20 25 20 35 25 40 30 40 1-7-93 Sewage cl arl fi er mechanisms Sewer rod machines Sewl ng machines Shakers. car Shears, powered Shell loadlng machines Shop equipment: Electric shop equipment General maintenance shop equipment Machine metalworking tools Paint shop equipment Pipe shop equipment Plumbing shop equipment Sheet metal shop equipment Woodworking machinery and equipment Shredders, paper silos: Concrete and masonry Metal e Wood ) Sludge drying beds Sludge heaters Slusher haulers Spur tracks Stacks: Concrete or masonry Metal Stitchers, wire stills Straighteners, bar Strapping machines Structures. outdoor substation: Metal Wood Superheaters (tank over 20 cubic feet or 100 sq ft surface) Switchboards - Switches, disconnecting Switchgear Synchrotrons: Electron Proton Tables, pool Tanks: Concrete Metal Process Wood DOE 2200.6A Attachment VI-l Tanks, wood Service Life (Years) 20 20 15 20 20 15 15 10 25 10 25 25 25 20 10 50 40 20 30 30 20 25 50 30 10 20 20 15 40 25 15 20 20 30 20 20 15 50 40 25 15 VI-49 DOE 2200.6A Attachment VI-l Telephone exchange equfpment

Telephone exchange equipment Telephone subscribers station equipment Teletypewriter equtpment Thickener Timer, driver tralnlng Tools, process, installed Towers: Chemical process Cooling Meteorological and other structural steel towers Traffic llghts Transformers: Current andpotentlal Steel llghtlng Transmission and dlstrlbutlon Trestles Tunnels Turbines Turbogenerators Turntables (over lOftindlameter) Unit substations Vacuum systems Vaporizers Varldrlves (over 5hp) Washers, drum or can Waste gas burners Water softening systems Wells Wires, open. overhead Wiring systems. outdoor 1-7-93 Service Life (Years) 30 30 30 20 20 10 25 20 30 40 50 :; 20 30 15 20 20 20 25 25 40 25 30 VI-50 1-7-93 al .~TAND ARDPROPERTY RECORD UNIT CATALOG Samples of property record unit catalog entries areas follows. DOE 2200,6A Attachment VI-2 VI-51 .STAND 2200.6A VI-2 VI-51 DOE 2200.6A Attachment VI-2 1-7-93 ● J)efinitio ~: Includes the cost of land owned by the Government and under the control of DOE. The cost of land includes the purchase price, other acquisition costs, and removal costs less salvage from disposing of any facilities acquired with the land MIIllW: 401.01 ~: Includes all land owned by the Government and under the control ofDOE SW.W_rd Dex_riptti: Location and legal description Mnn&uzHErding: Record the acres ateachlocatton ~: MID VI-52 1-7-93 m DOE 2200.6A Attachment VI-2 li.ame: LAND RIGHTS Definition: Includes the cost of rights, interests, and privileges relating to land such as leaseholds, easements, rights-of-way, water and water power rights, diversion rights, and submersion rights !!MU2.U: 410.01 ~: Includes all rfghts, interests, and privileges relatingto land Wnda-rd Descript~w: Location, type of land right, and legal description Manner of Recording: Record the physical measure (acres, acre feet, inches, etc., as appropriate) by each type of land right at each location. &WwmUhU: LAND RIGHTS VI-53 DOE 2200.6A Attachment VI-2 1-7-93 @ MIIE: ROADS, WALKS, AND PAVED AREAS DefinitioQ: Includes the cost of roads, bridges, streets, walks, paved parking areas, and paved open areas between buildings, including any related costs of clearing, grading, base, surfacing, storm sewers or drains, curbs, gutters, culverts, and other related facilities ROADS AND STREETS 470.01 WALKS 470.02 PAVED AREAS 470.03 VI-54 1-7-93 DOE 2200.6A Attachment VI-2 ~: 470 ~: ROADS AND STREETS FxDl anat i on: Includes all surfaced roads and streets with related site preparation, grading, base, drainage, surfacing, lighting, and signs Standard Descrir)tion: Location, identifying name or number, and brief descrip- tion that includes type of construction, length, width, and area of surface of road or street and number and type of construction of bridges and culverts -of-ding: Record each road or street ateachlocatlon Unit BRIDGE CONDUCTOR CABLE OR WIRE CONDUIT–POWERAND CONTROL a CULVERT (including headwalls) Arched Pipe CURBS AND GUTTERS DISCONNECT SWITCH DRAIN BASIN FENCE-CHAIN LINK FENCE–NONCHAIN LINK GATE–ELECTRIC GUARD RAIL a LIGHTNING ARRESTER Desm ption. Each havinga span of6ft ormore Crlterlato be issued Criteria to be issued Acontinuous section having an inside widthof6 ft ormore at the base and50ft ormore in length Acontinuous section3 ftormore in diameter and 50 ftormore in length A continuous section of900 linear feet ormore 2or more switches forl circuit

Each unit having a connecting pipe size of36in. and overin diameter, including wallso bottom, and grate covering Acontinuous section measuring 4,000 ft20r more above the surface A continuous section measuring 7,500 ft20r more above the surface Each Acontinuous sectionof single or multiple rail of 9001inear feetor more Asetof20r more for lcircuit VI-55 DOE 2200.6A Attachment VI-2 1-7-93 RMi mnent Unit LINE TOWER MANHOLE OPEN DRAIN DITCH POLES AND FIXTURES RETAINING WALL cri pti on Each, Including tower, hardware, crossarms, guys, anchors, grounds, and special foundations Each A continuous section of500yd30r more Agroupof60r more poles lnadjoinlng order, Including all fixtures A continuous section measuring 500ft2 and over, Including foundation ROAD ORSTREET Asphalt and concrete surface Acontlnuous sectionof 1,OOOydzor more that includes theplaclngof alayerof surface material 2in. ormore in depth Stone and gravel surface A continuous section of 2,000 yd20r more that Includes the placingof alayerof surface material 2in. ormore in depth ● TRAFFIC SIGNAL Each TRANSFORMER Each over 100kVA or a bank totaling IOOkVA orover VI-56 1-7-93 DOE 2200.6A Attachment VI-2 Explanation: Includes all surfaced walks with related site preparation, grading, base. drainage, surfacing, lighting, and signs Standard Description: Location and brief description that includes type of construction; length, width, and area of surface of walk; and number and type of construction of bridges and culverts merofmrdinq: Record squareyardsof each walk at each location Unit Qescri ption BRIDGE Each havinga span of6ft ormore CONDUCTOR CABLE OR WIRE Criteria to be issued CONDUIT–POWERAND CONTROL Criteria to be issued m CULVERT (including headwal 1s) Arched Acontinuous section having an fnsfdewfdthof6ft ormore at the base and 50 ftor morein length Pfpe Acontinuous section3 ftormore indfameter and 50 ftormorefn length DISCONNECT SWITCH 2ormore switches forl cfrcuit DRAIN BASIN Each unit havfnga connecting pipe sizeof 36in. and over in diameter, including concrete walls, bottom, and grate covering GUARDRAIL LIGHTNING ARRESTER LINE TOWER MANHOLE OPEN DRAIN DITCH ~) POLES AND FIXTURES Acontinuous sectfonof sfngleor multiple rail of 9001inear feet ormore Asetof20r more forl circuit Each, fncludfng tower, hardware, crossarms, guys, anchors, grounds. and special foundations Each Acontinuous sectionof 500yd30r more Agroupof60r more poles fnadjoinfng order, including all fixtures VI-57 DOE 2200,6A Attachment VI-2 TRANSFORMER 1-7-93 I ● iptm Each over 100kVA or abanktotallng 100 kVA orover WALKS (Including curbs and gutters that are not partofa road or street) Asphalt and concrete surface A continuous section of l,000yd20r more that includes theplaclngof a layer of surfacemater~al 21n. ormore in depth Stone and gravel surface Acontlnuous section of2,000yd2 or more that includes theplaclngof alayerof surfacematerlal 2in. ormore in depth VI-58 1-7-93 DOE 2200.6A Attachment VI-2 ~: 470 ~: PAVED AREAS LxDlanation: Includes all paved areas with related site preparation, grading, drainage, lighting, signs, and surfacing not previously defined as a road, street, or walk Standard Description: Location and brief description that includes type of construction; length, width, and area of surface of paved area; and number and type of construction of culverts _of Re~dlnq: Record square yards of each paved area at each location BUMPERS-PARKING

CONDUCTOR CABLE ORWIRE ~) CONDUIT–POWER OR CONTROL CULVERT (includlngheadwal 1s) Arched Ptpe CURBS AND GUTTERS DISCONNECT SWITCH DRAIN BASIN FENCE-CHAIN LINK FENCE–NONCHAIN LINK GATE-ELECTRICa LIGHTNING ARRESTER criptia Precast concrete parking blocks, aggregating l,200 linear feet or morein agiven parking area Criteria to be issued Criteria to be issued Acontinuous section having an inside width of6ft or more atthe base and 50 ft ormore in length Acontinuous section3 ftormore in diameter and 50 ftormore in length A continuous section of 9001inear feet ormore 2ormore switches forl circuit Each unit havinga connecting pipe sizeof 36in. and overln diameter, Including concrete walls, bottom, and grate covering A continuous section measuring 4,000 ft20r more above the surface Acontlnuous section measuring 7,500 ft20rmore above the surface Each Asetof20rmoreforl circuit VI-59 DOE 2200.6A Attachment VI-2 1-7-93 tUnit iDtiQn LINE TOWER Each, including tower, hardware, crossarms, guys, anchors, grounds, and special foundations MANHOLE Each OPEN DRAIN DITCH A continuous section of500yd20r more PAVED AREA Asphalt and concrete surface Acontinuous sectionof 1.000 yd20rmore that POLES AND FIXTURES RETAINING WALL TRANSFORMER Includes the placingof a 2in. ormore in depth Agroupof 60r more poles including all fixtures layer of surface material in adjoining order, Acontinuous section measuring 500 ft2 and over, including foundation Each over100 kVAora bank totaling 100 kVA orover ● VI-60 1-7-93 DOE 2200.6A Attachment VI-2 ~: 490 l!hlIN2: OTHER IMPROVEMENTS TO LAND Definition: Includes the costof improvements not under DOE asset type codes 460, 470, or 480, such as airports, playgrounds, tennis courts, and athletic fields PmperWkmrd Unit AIRPORTS 490.01 BURIAL GROUNDS 490.02 PISTOL AND RIFLE RANGES 490.03 ATHLETIC FIELDS 490.04 TENNIS AND/OR HANDBALL COURTS 490.05 SKI RUNS OR SKATING RINKS 490.06 ~) PLAYGROUNDS PICNIC GROUNDS 490.07 490.08 SWIMMING POOL 490.09 VI-61 1-7-93DOE 2200.6A Attachment VI-2 ~: 490 ~: AIRpORTS J&QLii: Includes all airports with related site preparation: grading; landscap- ing drainage; paving of runways, aprons. taxiways, and parking areas; cattleguards; tiedown anchors: and navigational lighting and painting Standard Descrit)tio~: Location, overall dimensions description that includes number, type of construction, area of surface of taxiways and parking areas; type of list of all other accessories Mamer&Erdinq: Record each airportat each location tUnit BASINS ORPOOL CONDUCTOR CABLE ORWIRE CONDUIT-POWERAND CONTROL CULVERT (including headwalls) Arched Pipe DISCONNECT SWITCH DRAIN BASIN FENCE-CHAIN LINK FENCE-NONCHAIN GATE-ELECTRIC LINK LIGHTNING ARRESTER LINE TOWER igtion Each Criteria to be issued Criteria to be issued of each airport, and brief length, and width of runways; navigational lighting; and a A continuous section having an inside widthof or more atthe base and 50 ftormoreln length 6ft Acontinuous section3 ftormore in diameter and 50 ftormore in length 2ormore switches for 1 circuit Each unit having aconnecting pipe slzeof 361n. and over in diameter, including concrete walls, bottom, and grate covering Acontinuous section measuring 4,000 ft20r more above the surface A continuous section measuring 7,500 ft20rmore above the surface Each Asetof20r more for lclrcuit Each, including tower, hardware, crossarms, guys, anchors, grounds, and special foundations ●

VI-62 1-7-93 DOE 2200.6A Attachment VI-2 MANHOLE OPEN DRAIN DITCH PAVED AREAS (runway, taxiway, parkfng area) Asphalt and concrete surface POLES AND FIXTURES TRANSFORMER ~DtiO~ Each Acontlnuous sectlonof 500yd30r more Acontinuous sectlonof l,000yd20r more which includes theplaclng of alayerof surface materi al 2in. ormore indepth Agroupof 60r more poles In adjoining order, including all fixtures Each more than IOOkVAor abank totaling 100kVA or more VI-63 (and VI-64) DOE 2200.6A 1-7-93 CIMWKYU 1. INmmumN. a. Mckuroti. This chapter prescribes the policies and general procedures for recording and reporting liabilities. It covers accounts payabl e: accrued expenses: interest payable; accrued payroll and benefits; accrued leave: unearned revenues. including advances; deposit funds: debt issued under borrowing authority; bonds: loan guarantees and loan commitments: and contin- gent liabilities. For the specific codes of accounts and entries usedin recording liabilities, see DOE 2200.10A. ACCOUNTS, CODES. AND ILLUSTRATIVE ENTRIES. b. &plicabilitY. The applicability ofthis chapter is specified in DOE 2200.4, ACCOUNTING OVERVIEW. Chapter I, “Introduction,’’p aragraph 1. c. w. (1) (2) (3) (4) All liabilities shall be measured and recorded as accurately as possible, given the circumstances under which the liability was created. Incurred liabilities shall be recorded and/or footnoted irrespective of whether funds are available or authorized for payment. The status of funding shall be reported in applicable footnotes. Contingent liabilities should be evaluated and entered into the accounts and/or annotated on the financial statement as a narrative footnote, as appropriate, to ensure full disclosure. Do not disclose in the financial statements the amount of any potential liability if such a disclosure would compromise the Government’s position in court orin negotiating a settlement. Separate accounts are established for major categories of liabilities to facilitate their clear and full disclosure on financial statements. Accounts will be classified as either current or long-term and will dif- ferentiate between Federal and non-Federal liabilities. Accounts will provide for the classifications contained inthe DOE chart of accounts (DOE 22OO.1OA, Chapter I. “Balances heetC odes”). Current liabilities are those payable within lyearfrom the end of the accounting period or from the date of the financial statement. Long-term liabilities are those payable beyond lyear from the end of the accounting period or from the date of the financial statement. If part of the long-term 1 iabil ity matures or otherwise becomes payable within lyearfrom the end of the accounting period or from the dateof the financial statement (for example, maturing bond issues). then classify the portion that matures within lyearas a current liability. VII-1 DOE 2200.6A 1-7-93 Paragraph lc(5) (5) Maintafn accounts on an accrual basis. Costs and revenues shall be Identf - - fiedwlth and recordedin the pertodfn which they arelncurred, evenff rece~pt of the revenue or payment for theexpendfture occurs In a subse- quentaccounting period. Abalance should bematntalned between the effort required to measure accrued costs precisely and the added valueof such preclslon. (6) Record unearned revenues, which are advances and prepayments received, as lfabtltties. When payment is earned, thatts, goods orservlces have been delivered or contract terms have been met, the appropriate amount of revenues Is recognized with a corresponding reduction in the liability (II GAO A30.04) .

(7) Unused annual leave tsincluded in accrued ltabillties attheend of the flscalyear (II GAO C30.02). Annual leave for DOE employees is accruedon anonfundbasls. a. _ts Pavti are amounts owed to others for goods and servlcesrecelved and assets acquired. Liabilities recorded tnfinanclal statements shall reflect both invoices received and accruals for any costs Incurred or assets received for which progress billings, grant reimbursement requests. and other bfllings have notyet been received (II GAO AIO). Any percentageof amounts dueto contractors that DOE retains as a guarantee of performance may remain in a ● special account established forretentlon. Support the accounts payable control account(s) with unpaldlnvolce files, subsidiary ledgers, or other forms of subsidiary records. The accounting records must distinguish between accounts payable tenon-Federal entities and accounts payable to other Federal agencies. (1) J.Dvolm. Conventional trade fnvolces wlthsupportlng documents (pur- chase orders, receiving reports. and requlsitlons) are the best evidence and most useful support for accounts payable. When appropriate, support invoices (or bills) with documentary reports of inspection andaccep- tance. Record accounts payable on the baslsof a fully supported andvalld invoice, as covered ln Chapter I, “Cash.” (2) tk.crum. (a) Accrual accounting methods more accurately reflect the actual reve- nues and costs of a given period. As such, accrual accounting pro- vldes an Important financial information refinementof accounting data wtthwhtch to manage operations. Therefore, all accounts shall bemalnta~nedon an accrual basis. Identify and record each costor revenue in the period in which itis incurred, even when receiptof the revenue or the expenditure occurs in a subsequent accounting period. ● VII-2 1-7-93 DOE 2200.6A Paragraph 2a(2)(b)3 (b) When recording accruals, consider.asamlnlmum.the following areas: 1 Materials. EfwlgnmdanLQt.tr Contradwl se rvi w. A Utility services received or used. b Materials. equipment, and services actually received and accepted or materials and equipment shipped free on board shipping point (constructive receipt). c Time, material, and services from contractors and subcontractors. ~ Cost of work performed by other Federal agencies, determined from monthly cost reports or best estimates obtainable. & Cost-type contracts and subcontracts. Accrue thecost ofwork completed but not billed by contractors through the end of each month based upon information submittedby the contractors in accordance with the terms of the contractors otherwise prescribed. f Long-term contracts for the purchase of property. plant, and equipment. Accrue the costof property, plant. and equipment manufactured or constructed under such contracts on the basis of verified estimates of work completed (the percentage-of- completion method) per contractor reports or invoices received during each accounting period, rather than on disbursements made. Also, record appropriate liabi lities for contract retainages, if any. Adjust the appropriate property, plant. and equipment accounts, Including construction workln progress, on the basis ofliabilitles recorded (II GAO L40). g State and local sales taxes. h Integrated contractor contract award or fixed fee. j. Freight (where significant). 2 H. For travel, accrue transportation costs In full in the month in which the travel begins. Meal andlncidental expenses shall be accrued in the months in which they occur.

3 ~. Accrue thecost ofwork performed under assistance agreements based on reports required under the provisions of the agreement orsuch other information asmaybe required. Standard financial report forms, instructions for their completion, and applicable definitions are containedin Office of Management and Budget (OMB) Circular A-11O, VI I-3 DOE 2200.6A 1-7-93 Paragraph 2a(2)(b)~ b. c. d. e. f. Attachment G: OMB Circular A-102; DOE 1332.2, UNIFORM REPORTING SYSTEM FOR FEDERAL ASSISTANCE (GRANTS AND COOPERATIVE AGREE- MENTS): DOE4600.lA, FINANCIAL ASSISTANCE PROCEDURES MANUAL; and 10 CFR6OO.116. ~Pavw. Accrue Interest expenses. These expenses typically arise from interest dueon long-term debtso capital lease obllgatlons, and late payment ofinvofces (II GAO 120). The accounting records must distinguish between fnterest payable tenon-Federal entities and interest payableto other Federal agencies. ~.Accrue the unpaid wages and benefits that employees have earned atthe closeof each accounting period. bUd_lHw. (1) Annu.au.ai. Accrue and record the expense and related liability for annual leave at the wage rate at which the leave is earned. Adjust the liability to reflect all pay increases and unused leave balances at the end of the fiscal year (II GAO C30). Make yearend adjustments to allow for statutory limitations to leave amounts andto provide for employees transferred inorout during the year. Charge the annual cost of unused leave tothenet costof operations. Accrued leave for DOE employees will rerecorded asa nonfund cost. ● (2) ~torym. For accrual purposes, treat compensatory leave asif it were annual leave. (3) Skk_ll. Unless a contractual requirement exists for employees tobe paid for unused sick leave, sick leave shall not be accrued. Lhea_mM Revenugs represent payments from others to cover the costof services, materials, or other assets that DOE will furnish in the future (II GAO A30). The accounting records must distingui sh between advances received from other Federal agencies and advances received from non-Federal entities. For addi- tional guidance regarding advances for reimbursable work and cosponsored proj- ects, see Chapter IX, “Reimbursable Work, Revenues, and Other Collections.” Costs incurred in the performance of work for Federal and non-Federal entities shall be accumulated and charged against the advances. Wih. A liability shall be established whenever DOE hasphys- ical possession irresponsibility for non-Government personal propertyor cash. This includes certain funds that belong to others, such as payroll deductions and deposit funds. Funds held for others also include amounts held in suspense accounts awaiting disposition orrecl ossification. The individual details for eachof these accounts reside in the asset accounts. The balances in these accounts must be supported by schedules of voucher deductions, collections. and transfers between accounts. ● VII-4 1-7-93 aD DOE 2200.6A Paragraph 21(l)(b) g. ~include credits arising In the course of operations that cannot reanalyzed readily andcredltedto the proper account because of inadequate information, uniqueness of the transaction, or similar compli- cations. Temporarily credit such Items to the suspense account to avoid undue delays of monthly closing. Determine the proper account for all suspense items and credit them accordingly as soon as possible. At the endof the fiscal year, all suspense items must reanalyzed and cleared to the proper accounts: nothing should be deferred at yearend.

(1) DOE occasional IY receives appropriations that provide programs with authority to borrow funds. Borrowing authority Islimited by the amounts specified in the appropriation acts. Funds that are borrowed to finance appropriated obllgati onal authority must berepald into the General Fund of the Department of the Treasury. Interest shall be charged from the date the funds are credited to the appropriation until the date of repayment. (2) Power marketing administration legislation requires recoupment ofappro- priatedfunds overa specified time period and rate of interest. Power marketing administrations shall record the investment of the U.S. Govern- mentin power facilities as Proprietary Capital . Federal Investment. or Federal Appropriations. Interest expense or interest chargedto construction shall recomputed and repaid to the Department of the Treasury. (1) IWE,JW. Contingent liabilities are potential liabilities thatmight become actual if certain future events. beyond the Government’s control, result in losses or impairments of assets or incurrences of liabilities (II GAO C50and35 Comp. Gen. 185-187). (a) When aloss contingency exists .thelikelihood that a future eventor events will confirm the loss or impairmentof an asset or the incurrence ofa liability can range from probableto remote. 1 2 3 ~. The future event or events are likely to occur. ~. The chances of the future event or events occurring are more than remote but less than likely. J3emgLe. The chances of the future event or events occurring are slight. (b) Accrual and disclosure of contingencies vary. depending onprob- ability of occurrence. Record estimated losses in the accounts if information available before financial statements are issued indi- catesthat itis probable thatan asset has been impaired oraliabil - ityhas been incurred and that the amount can be reasonably VII-5 DOE 2200.6A 1-7-93 Paragraph 21(l)(b) estimated. Disclosure of the nature ofan accrual Is necessary lfthe financial statements would be misleading without such disclosure. Thedeclsionto disclose shall be based on thematerlallty of the loss contingency andltsposslble Impact ontheagency’s financial state- ments and operations (II GAO C50). If an estimated loss cannotbe recorded because one or both of the above conditions arenotmet orif the estimated loss exceeds the amount recorded and there Isa reason- able possibility that a loss oran additional loss may have been Incurred. the contingency shall bedisclosed ina footnote tothe f~nancial statements. Minimum disclosure includes a statementof thenature of the contingency and an estimate of thepossibl eloss, a statement of the range of the possible loss, ora statement that such an estimate cannotbe made (II GAO C50). (2) ~. Loan guarantees are agreements bywhich DOE pledgesto paypart or all of the loan principal and interestto lenders or holders of securities in the event of default by third-party borrowers (II GAO L30). For additional information onthe DOE Loan Guaran- tee Program, see DOE 5700.5A, POLICY AND MANAGEMENT PROCEDURES FOR FINANCIAL INCENTIVES PROGRAMS. (a) Accrue estimated losses resul tingfrom loan guarantees and commit- merits when funds are obligated and if information available indi- cates that it is probable that assets have been impaired or liabilities have been incurredas of thedate of the financial state- ● ments and that the amounts can be reasonably estimated. For further informationon the accrual of anticipated losses on loan guarantees and commitmentso see II GAO C50.02-06.

(b) Disclose all loan guarantees and loan commitments, the total expo- sure, in footnotes to financial statements. This disclosure shall Include the amount andnature of the loan guarantees and loan commit- mentso the periods of such guarantees and loan commitments, any collateral provisions, and any other information necessaryto under- stand the magnitude and characterof the GovernmentOs guarantees and commitments. (c) Report loan guarantees and loan commitments whether they are funded or not. The footnotes to the financial statements shall disclose whether funds have been obligated. (3) WX_CWz are contingent liabilities andarediscl osedin the financial statements, as discussed in paragraph 2i(l). Tort claims are claims against the United States forinjury toor loss of property or personal injury or death caused by the negligent or wrongful act or omissionof any employee of DOE while acting within the scope of office or employment. The following procedures shall be followed for tort claims. VII-6 1-7-93 OOEZ20U.6A Paragraph2j 1 Any award, compromise, or settlement in the amount of $2,500 or less approvedby the General Counsel (GC-1) or a designated claims official shall be paldby the Secretary of Energy (S-1) or designee. Z Payment of an award, compromise, or settlement In excess of $2,500 but less than $25,000 shall be obtained by forwarding Standard Form l145 (SF-1145), “Voucherf orPaymentUnder Federal Tort Claims Act,’’ tothe Clalms Dlvlslonof GAO. Iftheclaimisln excess of$l0,000, then the authority of DOE subordinate claims officials is subject to the approval of the General Counsel, the Deputy General Counsel (GC-2), or the Deputy General Counsel for Legal Services (GC-40). A When an award is in excess of $25,000, the SF-1145 must be accompa - riled by evidence that the award, compromise, or settlement has been approved by the Attorney General ordeslgnee. Such approval must reobtained inwrftfngprfor to forwardinga claim for processing. A When Department of JustIce approval or consultation is requfred, the referral or request shall be transmlttedto the Departmentof Justfce by the General Counsel oradeslgnee. (b) Rf@zctclalms paldto the General Counsel. The report shall include the following fnformatfon in each claim: the name of the claimant, the amount clalmed, the amount of settlement (Indfcatlng attorney’s fees, ffany), and theamountpald. Officials covered by the General Counsel ’sdelegatfonof authority to administer claims under the Federal Tort Claims Act shall also submit tothe General Counsel semiannual reports of all pendfng claims each 3-30 and 9-30. j. mrLiabllftlM. Any other llabilfty that has not been defined elsewhere should bedfsclosed fn the financial statements. The principle of material ity and full disclosure should govern the inclusion of such liabilities. The nature of the llabtlfty should beidentffied and reported, eitherby a footnote tothefinanclal statement or by actual inclusion of an amount inaliabllity account ~fthepotentlal amount dueora loss can reestimated. This Includes any long-term contracts. Indebtedness or agreements, guarantees for future flnanclng, joint-ventureliabllfties, project-financing take-or-pay and throughput agreements. unconditional purchases, off-balance-sheet financing, and other llabflftfes not otherwfsedescrfbed fnthfs chapter. Ifftfs necessary to addaddftfonal accounts tothe chartof accounts, awrftten request shall besubmfttedto the Offfceof Chfef Ffnancfal Officer (CR-l).

VII-7 (and VII-8) DOE 2200.6A 1-7-93 LHAPTERIX OT~TION.S 1. .Mumumm. a. Bukwwnd. (1) Unless specifically authorized by statute, DOE must deposit all collec- tions as miscellaneous receipts into the General Fund of the Department of the Treasury. Enabling, appropriation, and other kinds of legislation provide DOEwitha number of exceptionsto this general rule. This chapter establishes the policy and general accounting procedures for activities that result in DOE collections. Collections received by DOE fall within oneof the following categories: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) Reimbursable work and reimbursements (see paragraph 2): Revenue programs (see paragraph 3); Advances from non-Federal customers for cosponsored work (see paragraph 4): Appropriation refunds (see paragraph 5); Integrated contractor coil ections (see paragraph 6); Donations, gifts, and bequests (see paragraph 7); Deposit funds (see paragraph 8); Miscellaneous receipts (see paragraph 9); Reimbursable personnel details (see paragraph 10): and Other collections (see paragraph n). (2) Attachments IX-2 through IX-71ist common DOE collections and the accounts to which they are deposited. b. ~. (1) The applicability ofthis chapter is specified in DOE 2200.4, ACCOUNTING OVERVIEW, Chapter I, “Introduction” paragraph. Paragraphs concerning acceptanceof reimbursabl ework into the Department donot applyto Integrated contractors. (2) Provisions of this chapterdo not apply to actions inwhich DOE is the customer or cash transactions for services between other DOE offices and IX-1 I 1-7-93DOE 2200.6A Paragraph lb(2) DOE contractors (see DOE2200.9Bo MISCELLANEOUS ACCOUNTING, Chapter VII, “Transfers”). 2. ~. a. Exclusim. The provisions of this section donot apply to: refunds: user charges (31 U.S.C. 9701); revolving fund activities: receipts for cooperative work performed under cosponsored agreements; work or services between DOE locatlons; actions between DOE integrated contractors: activities involving services, products, or materials regularly produced for sale at schedule rates (e.g., routine irradiation services. isotopes, heavy water, production or transmlssionof electricity, uranium enrichment services) under Departmental programs, activities funded under the Contributed Funds Act (43 U.S.C. 395)or emergencies as defined in paragraph 2b(6). b. ~. (1) (2) (3) (4) (5) (6) ~is the official act of signing areimbursabl eagreement bya contracting officer oran official to whom such authority has been dele- gated that commits DOE to perform reimbursabl ework fora Federal or non- Federal customer. A reimbursable agreement cannot be signed until a written determination has been made and certified by the responsible contracting officer that the reimbursable work meets the requirements of DOE4300.2B. NON-DEPARTMENTOF ENERGY FUNDED WORK, of 7-16-91, page6, paragraphs 8aand b. ~are unearned funds provided by others that shall be used for reimbursement of work to be provided by DOE in the future. Ji@.elarYRes~. In the case ofreimbursabl ework, budgetary resources that are available for obligation include (a) the amountof reimbursable agreements received from within the Federal Government that represent valid obligations of the ordering account, to the extent that the reimbursements will be placed in the current appropri ation or fund account when collected: and (b) the amountof unfilled customers’ reim- bursabl e agreements from non-Federal customers forwhich advance payment has been made.

Field ment Chief F~ef(Field CFO) is designated to provide accountingor budgetary support toa field elementor a Headquarters program or project office that has execution responsibility for reimbursable work. ~t Secretarial Officer is the Departmental official, atthe Assis- tant Secretary level, who has responsibility for the institutional overview of field organizations and integrated facilities. ~lsany situation involving the protecti on of life and property (e.g. ,medical care for inpatients, protection of Federal lands, build- ings, and equipment; law enforcement: emergency and disaster assistance; production ofpower and maintenance of the power distribution system; IX-2 1-7-93 DOE 2200.6A Paragraph 2b(12) and protection of research property). Also, see DOE5500.6B, SHUTDOWNOF DEPARTMENTAL OPERATIONS UPON FAILURE BY CONGRESS TO ENACT APPROPRIATIONS, of 5-18-92, page 6, paragraph 7a. (7) ~. A DOE contractor thatis contractually required to maintain a separate setof accounts and records for recording and report- ingall business transactions under the contract in accordance with DOE accounting practices and procedures and whose books of account are inte- grated with those of DOE through the use of reciprocal accounts. An integrated contractor may be a private enterprise, in the form of anon- profit institution, a commercial corporation, or anyother formof organi- zation legally capable of entering into a contract with DOE. All funds made available for the use of the contractor and all funds collectedly the contractor for DOE shall be reflected in the contractor’s and DOE’s reciprocal accounts. The contractor retains custody of the accounting records and supporting documents, in accordance with the provisions of the contract, keeping the data available for Inspectionby DOE and General Accounting Office auditors andthe Officeof Inspector General atall times. (s) ~ are those designated by the Secretary in accordance with DOE policies. (9) ~QJ(MOU)is awritten agreement broadly stating basic understandings and describing a mechanism for coordinating activi- ties to reengaged in by the Department and other signatory authorities. A memorandumof understanding isti a binding contract; itcannot be used to obligate or commit funds or as the basis for the transferor funds from one agencyto another. Ifa commitment, obligation, or transfer offunds is required, a specific reimbursable agreement shall be developed between DOE and the participating organization to provide specific funding, obligation, and billing data. Additional information concerning MOU’s is found in DOE 1280.1A, MEMORANDUMS OF UNDERSTANDINGO ofll-15-91. (10) Miscellawus Re_ are funds collectedly DOE fortheuse of the Federal Government. Such funds may not be retained for use by the collect- ingagency but must be deposited inthe U.S. Treasury general fund. Col- lections representing refunds of payments made previously (appropriation refunds) are not miscellaneous receipts. ( 1 1 ) NJY.al refers to those customers that arenota part of the Federal Government. (12) Jiej.mbursable Aar~ is awritten agreement to perform reimbursable work for other Federal agencies or non-Federal customers. The reimburs- able work maybe accomplished under the authorityof the Economy Act, the Atomic Energy Act, or other specific statutory authority. Normally, reimbursable agreements to perform work for non-Federal customers will require a bilateral sales contract. Reimbursable work for other Federal agencies requires an interagency agreement. An Interagency agreement is a written agreement entered into between DOE and another FederaJ agency for

IX-3 DOE 2200.6A 1-7-93 Paragraph 2b(12) — DOE to furnish specific goods or accomplisha specific task in support of ● (13) (14) the other agency’s mission .Among other things, the interagency agreement will provide funding, billing, and payment data in support of the reim- bursable work. Astandard formis not used for interagency agreements, but rather DOE generally accepts the format of the requesting agency as long as it contains the appropriate elements as outlined in Attachment IX-lof this chapter. Examples of Economy Act interagency agreements are Military Interdepartmental Procurement Requests (MIPR) used by Department of Defense, Project Authorization Funding Documents used bythe Air Force Tactical Application Center, and Procurement Letters used by the United States Geological Survey. For the purposesof this chapter, the term “reimbursable agreement’’ will be used in lieu of the term “interagency agreement.” .Rgj,mbursable Authority refers to reimbursable obligation authority. This authority can only be acquired by obtaining an allotment through the DOE Approved Funding Program process. Reimbursable authority is authorityto incur obligationsin accomplishing reimbursable work or servicesif a budgetary resource, either a reimbursable agreement from a Federal customer ora cash advance from anon-Federal customer, is also available. ~sable Work, for purposes ofthis chapter, refers toworkor ser- vices performed or to be performed for another Federal or non-Federal cus- tomer for which the DOE is compensated by a specific type of offsetting collection, known asa reimbursement, which maybe credited as authorized ● by law to the appropriation or fund accountof DOE. The reimbursable work or services performed by DOE are financed by the funds of the ordering Federal customer or by cash advances from anon-Federal customer. C* ~. (1) ~shall, for Headquarters elements, each field element, and integrated contractor facility under their cognizance: (a) (b) (c) Provide timely appropriate notification to the Undersecretary (S-3), the Office of Chief Financi al Officer (CFO: CR-l), the Office of Procurement, Assistance and Program Management (PR-1), and the Office of Administration and Management (AD-1) of any sensitive reimbursable actions pursuant to DOE 4300.2B, paragraphs 10k(8) and (9). Recommend changes in financial aspects of reimbursable work policies tothe CFO. York Enterina Hfa@u.vters but Acce@ed md performed in the Field . Make a preliminary determination, when reimbursable work enters the Department at the Headquarters level but is to be accepted and per- formed ataDOE field element, as to the appropriateness and the capabil ityof field elements to perform the work. The preliminary determination that the work can be undertaken will be made only after ● consultation with the Head(s) of Field Elements andthe CFO, the Ix-4 1-7-93 DOE 2200. 6A Paragraph 2c(2)(d) Office of Procurement, Assistance and Program Management, and the Office of Administration and Management, as provided for in DOE 4300.2B, paragraph 10j(4). Acceptance of the work by the affected DOE field element will be made in accordance with DOE4300.2B, paragraph 10k(5).

(d) No k Accepted at He@rters but Performed in the Field Make a determination asto the appropriateness and the capabili\yto conduct reimbursable work that is accepted at the Headquarters level butwill be performed by afield element(s). After consultation with the affected field element(s), the cognizant Secretarial Officer will submit such reimbursable agreements, along with awritten determinationas required by DOE4300.2B, paragraphs 8aand b, ora statement that such written determination(s ) have been madeby the field element(s), to the CFO, the Office of Procurement, Assistance and Program Management, and the Office of Administration and Management for coordination prior to acceptance. (e) ~. Make a determination as to the appropriateness and the capability to conduct reimbursable work to be performed by Headquarters elements. The cognizant Secretarial Officer will submit such reimbursable agreements along witha written determination as requiredby DOE4300.2B, paragraphs8a and b, to the CFO, the Office of Procurement, Assistance and Pro- gram Management, and the Office of Administration and Management for acceptance. (f) Approve exceptions tofull funding with the concurrence of theCFO and the Head of the affected Departmental elementas provided forin paragraph 2g(l) (c). (2) er (CR-1) . (a) Establish and maintain financi al policies and procedures for reimbursable work. (b) Approve financial exceptions, as specified in paragraphs 2d(9), 2g(l)(c), and2g(2), from those policies and procedures, and, upon request, assistin review and approval of financial aspects ofreim- bursable agreements forwork supported byorper Headquarters element. (c) Obtain reimbursable apportionments andissuere” authority for reimbursable work. ‘ormedby a mbursable allotment (d) Coordinate with the cognizant Secretarial Officers on reimbursable agreements accepted at Headquarters. IX-5 DOE 2200.6A 1-7-93 Paragraph 2c(3) (3) Director of the Off ● ice of Procurement. Assistance and Prouram Manaqe ment (PR-1). (a) S~gn reimbursable agreements to be accepted by Headquarters elements (unless delegated as lnparagraph2b(l)) after thecognlzant Secre- tarial Officer has secured coordination from the CFOand the Office of Administration and Management. (b) Provide copies ofreimbursabl eagreements negotiatedin Headquarters to all DOE Field CFO”s impacted by such agreements. (4) Director of Administration and Management [AD-1). (a) (b] (c) (d) Obtain necessary approval s of reimbursable agreements forreimburs- able detail s of personnel and/or Intergovernmental Personnel Act assignments, in accordance with DOE 3300.19, ASSIGNMENTOF DEPARTMENTAL PERSONNEL OUTSIDE THE DEPARTMENT, of 6-23-92. Ensure that necessary determinations and coordinations are accomplished for personnel details and assignments. Provide acopyof reimbursable agreements for Headquarters reimburs- able detail s of personnel and/or Intergovernmental Personnel Act assignmentsto the Field CFOas appropriate. Coordinate with the cognizant Secretarial Officerson reimbursable ● agreements to reaccepted at Headquarters. (5) ~shall provide legal counsel and adviceon matters relating to reimbursable agreements on an as-needed basis. (6) ~ shall ensure that: (a) (b) (c) (d) The reimbursable agreements approved andacceptedln accordance with this Order and the established requirements of DOE4300.2B. Budgetary resources and reimbursable authority are obtained priorto initiation ofwork or services.

Any proposed exceptions to the requirement for full funding from Federal agencies for projectsto be completed in the current fiscal year (or current fiscal year plus 90 days for projects transcending the fiscal year) are reviewed and approved bythem only if thereis justification. In no case shall an exemption be granted which neces - sitatesthe useof DOE funds to finance reimbursable work performed for others. Concur on Secretarial Officer’s exceptionsto full fundingas provided for in paragraph 2g(l) (c). IX-6 1-7-93 a) (e) (f) (g) (h) (i) DOE 2200.6A Paragraph 2c(7)(e) Requested work is priced in accordancewith DOE 211O.1A, PRICINGOF DEPARTMENTAL MATERIALS AND SERVICES, of 7-14-88. All documents authorizing performance of tasks that lncludereim- bursable work specify what portion of the funding is reimbursableor that the total funding is reimbursable. Final accepted reimbursable agreements are executed ln accordance with DOE4300.2B, paragraph 10k(5), and submitted to the cognizant Field CFO. All documents pertaining toa reimbursable agreement are identified and maintained on file. Obligations and expenditures against individual reimbursable agree- ments are recorded”promptly and accurately anddo not exceed the associated budgetary resource. (7) ~ shall: (a) Review reimbursable agreements for adequacy and accuracy of relevant accounting and funding data, potential budgetary resource problems, pricing factors, financial closeout procedures, and provisionof billing information and addresses. Request the DOE program sponsor of the agreement to obtain correction of any deficiencies. (b) Certify fund availability for each reimbursable agreement to ensure that obligations are not incurred in the performance ofa reimburs- able agreement in excess of the authority providedin the approved funding program and allotment. Ifan agreement would require obliga- tions in excess of reimbursable authority allotted, ensure that additional authority is obtained prior to incurring the obligation. (c) Provide information about the availability of fundsto approving officials or DOE program sponsors of reimbursable agreements. (d) Develop and maintain accurate and timely financial information on the status of funds, obligations, and expenditures incurred for each reimbursable agreement. (e) For reimbursable agreements received under the authority of the Economy Act, determine the amountof obligations that will notbe incurred before the end of the periodof avail ability of theappro- priation. Timely notification shall be provided to the ordering agency regarding the amount of funds to bedeobligated. IX-7 DOE 2200.6A Paragraphed d. -pOli C)f. 1-7-93 (1) (2) (3) (4) (5) (6) (7) It is the pol f cy of DOE to accept ref mbursabl e agreements for f ts goods and servfces and to performwork for others on a refmbursablebasfs, provfded legal and regulatory authority to perform thereimbursabl ework exists and the Departmentis capable of complying with the requfrementsof the legal authorities relied on. Furthermore, work must not impede primary func- tions and responsibilfties of theperformfng activfty, and budgetary resources for performing reimbursable work must beavaflable.

The execution of acceptance of reimbursable work shall only bemade aftera written determination that theworkis consistent with and meets estab- lished requirements set forth in DOE4300.2B, paragraphs 8aand 8b. In additfon, no work shall commence andno costs are to be fncurred until a written reimbursable agreement has been received and such documents approved and accepted as defined in DOE4300.2B. For work to be performed solelyby Headquarters elements, approval and acceptance shall be madein accordance with theprovf sionsof paragraph 2c(l) (e) of this chapter. For work thatfs initially accepted bya cognizant Secretarial Officer butto be performed by other Departmental element, final approval and acceptance should be madein accordance wfth paragraphs 2c(1)(c) and 2c(l)(d) of this chapter. Work performed for other Federal agencfes shall be fully funded priorto commencement ofwork if the work is tobe completed within the current m fiscal year. For work that transcends the ffscal year, full funding for the current fiscal year plus the first 3months of the following fiscal year shall be required. See paragraph 2g(l)(c) for exceptionto the full funding requirement. No work shall be continued beyond theperfodor amount offending asprovfded in the reimbursable agreement. Reimbursable work for non-Federal customers shall neither start nor continue without acash advanceof funds except as provided by paragraph 2g(2). Heads of Field Elements andthe CFO shall mafntain anapproprfate manage- ment and control environment and related systems whfch provide advance notiffcatfon ofpotentfal funding shortfalls in sufficient time to obtain additional funds ortobegfn orderly termination of the project. Inthe eventof an emergency as defined in paragraph 2b(6), exceptionsto the polfcy on full funding and cash advances from Federal and non-Federal customers maybe authorized by the Head of the cognizant field elementor theCFO, for Headquarters elements. The circumstances whfch caused the deviation shall be documented bythe cognizant Field CFO andthe CFO formally advised of the deviation within IOdays. All reimbursable agreements accepted by DOE forreimbursabl e work shall be managed and accounted forfn accordance with the funding limitations and ● Ix-8 1-7-93 DOE 2200.6A Paragraph 2e(3) other provisionsof the reimbursable agreement. The level of financial controls specified in the reimbursable agreement establish the administrative funds controls which must be followed. (8) Reimbursable work shall not be accepted when itis evident that a request- ingagency is using this as a mechanism to obligate funds solely to keep them from being reported as unobligatedor to keep them from lapsing at the endof the fiscal year. (9) All reimbursable agreements made or modified after the date ofthis Chapter must comply with this Chapter and must contain an expiration date not to exceed 5years from the date of inception (with the exception of such agreements with the Nuclear Regulatory Commission. power marketing and transmission-related agreements of power marketing administrations or other long-term commitments), unless approved bythe CFO. (10) All agreements forreimbursabl eworkinvolving data processing facilities and/or related dedicated services, e.g., application systems. program- mers or analysts, software unique to a particular application and remote terminals and modems must comply with the provisions ofDOE 2100.8, COST ACCOUNTING, COST RECOVERY, AND INTERAGENCY SHARING OF DATA PROCESSING FACILITIES, of 3-3-83.

(11) All reimbursable work mustbe carried out in accordance with the require- ments of the National Environmental Policy Act. DOE may participateas either the lead or cooperating agency. (12) Funds provided under reimbursabl eagreements areto beused solely for the intended purposes andin accordance with the legal and other limitations imposed on theuse of funds as specified in the agreements. Failureto adhere to these limitations constitutes an unauthorized use of funds and a potential viol ation of 31 U.S. C. 1301. e. Rescr iption and Nature of Reimbursable Work . (1) In general, the reimbursable work or services that DOE provides fora customer are part of the customer ’emission, and not DOE’s direct mission. The Department doesnot directly receive appropri atedfunds from Congress for such work or services; instead, they are financed by the funds of the Federal agency ordering the work or by cash advances from anon-Federal customer. Conversely, if the Department sells products orserviceswhi ch are funded as a direct mission of the Department the collection shall be accounted for undera revenue program (see paragraph 3). (2) Examples of current reimbursabl eworkprograms in DOE are includedin Attachment IX-Z. (3) The authority to perform reimbursable work andthe authori tyto retain and use the resulting reimbursements may be two distinct and separate legis- lative or statutory authorities. Paragraph 2f more fully describes the IX-9 DOE 2200.6A 1-7-93 Paragraph 2e(3) ● legal and statutory authorities for accepting andperformlng reimbursable work. Attachment IX-2 delineates theauthorlties for retain~ng and using reimbursements received by the Department. f. Mthoritv for Accx?.ptinu and Criteria for FstablishinQJ3elnbursabl e Aare- Before acceptinga reimbursable agreement, the Department must review the . specific legal or statutory authority for performing the work. This is neces- sary to ensure that the Department is capableof complying with the legal requirements or limitations imposed by the enabling legislation. Accordingly, when establishing reimbursable agreements, use the following authorities and criteria in conjunction with guidelines contained in Attachment IX-1 and the requirementsof DOE4300.2B, NON-DEPARTMENT OF ENERGY FUNDED WORK. (1) (2) (3) IX-10 ~. The Economy Act (31 U.S.C. 1535-1536, 3324) authorizesa Federal agency to place reimbursabl eagreements forwork or services with other Federal agencies and provides that collections for such work shall be credited tothe performing agency’s appropriationin which the costs were incurred. I (a) (b) (c) (d) If the Economy Act (31 U.S.C. 1535) is cited as the authority for performing work or services, the requesting agency shall determine that the reimbursable work or services cannot be provided as convenientlyor cheaply through a commercial enterprise. Under the Economy Act, reimbursable workor services maybe provided ● when the accepting agency is equipped orin a positionto supply. render, or obtain the goods or services by contracting-out. Any conditioner limitation applicable to the funds of any executive department, independent establishment, bureau, or office that places a reimbursable agreement or enters intoa contract under the provisions of the Economy Act shall be applied.

A reimbursable agreement made under the Economy Act obligatesan appropriation of the ordering agency orunit. The amount obligated shall be deobligated to the extent that the agency or unit filling the reimbursable agreement hasnotlncurred obligations before the end of the period ofavallability of the appropriation in providing goods or services: or making an authorized contract with another person to provide the requested goods or services. ~. The Atomic Energy Actof 1954, as amended, authorized the performance of reimbursable work related to atomic energy. Reimburs- able work maybe performed pursuant to sections 31, 32, 33, and1610f the Atomic Energy Act of 1954, as amended, (42 U.S. C. 2051, 2052, 2053, and 2201) only upon a determination that private facilitiesor laboratories arelnadequate for the purpose. ~. Title 31 U.s.c. 6505~ autho- rizes Federal agencies to provide reimbursable specialized or technical services to states and local governments. If this Actis citedas the 1-7-93 DOE 2200.6A Paragraph 2g(l)(a) (4) (5) (6) authority for performing reimbursable work, a determination shall be made by the contracting officer that the requested work or services cannotbe procured reasonably and conveniently through normal business channels. J?@ect Orti. Project order interagency agreements are agreements which military departments enter into with DOE for ordering work and materials under the provisions of the Project Order Law(41U.S.C. 23). Unlike Economy Act transactions, project order agreements are not required tobe deobligated at yearend if the performing agency has not incurred valid obligations under the agreement arrangement. It shouldbe noted that the Project Order Law does not provide authority to perform reimbursable work. The Project Order Lawmust be cited in conjunction with oneor moreof the authorities in this section. ~. Title 42 U.S. C. 7101, Public Law 95-91, the Departmentof Energy Organization Act, establi shes the Depart- ment and provides the Secretary with the authorityto enter into and perform the kinds of reimbursable agreements that are subjectto this chapter. (a) Title 5U.S.C. 3371-3376, the Intergovernmental Personnel Actof 1970, as amended, provides for the assignment of personnel between the Federal, State, local, and Indian Tribal Governments, Institu- tions of Higher Education, or other approved and eligible organizations. (b) Title 5CFR334, Temporary Assignment of Employees Between Federal Agencies and State. Local, and Indian Tribal Governments, Institu- tions of higher Education or Other Approved Eligible Organizations, establishes policies and procedures for the Intergovernmental Personnel Act Program. g. -Fina.n.cina ofWork. Abudgetary resource shall be obtained from customers prior to performing reimbursable work. Reimbursable budgetary resources available for obligation consist of reimbursable agreements from other Federal agencies that represent validobl igations of the ordering account orthe amountof unfilled customers’ reimbursable agreements from non-Federal customers for which advance payment has been made. This is necessary to preclude the useof DOE appropriated funds to finance reimbursable work, and to protect the Depart- merit from incurring uncollectible receivables. In addition to the requirement for obtaininga budgetary resource, it is necessary tohavesuffi cient reimbursable obligational authority within the respective allotment from the CFO.

(a) Generally, cash advances shall not be required when performing work for other Federal agencies under the Economy Act. However, cash 1X-11 DOE 2200.6A 1-7-93 Paragraph 2g(l)(a) (2) advances may be requi red from agencies WI th a history of S1 ow or no ● payment orifthe interests of DOE are best served by obtaining an advance. (b) Avalid reimbursable agreement shall be used as a budgetary resource when performing work for other Federal agencies. The reimbursable agreement shall provide full funding lf the work istobe completedfn the current fiscal year. For work that transcends fiscal years, full funding for the current fiscal year plus the first 3 monthsof the following fiscal year shall be required. (c) Exceptions to the requirement for full funding from Federal agencies for projectsto be completed in the current fiscal year (occurrent fiscal year plus 90 days for projects transcending the fiscal year) maybe granted by Headsof Field Elements for their respective orga- nizations andthe CFO in consul tatlon with the cognizant Secretarial Officer for Headquarters Elements. Program Secretarial Officers when executing unique and significant agreements which impact more than one Departmental element, such as the Strategic Defense Initia- tive(SDI), may grant an exceptionto full funding with the concur- renceofthe CFO and the Heads of the affected Departmental Elements. Inno case shall an exception be granted whlchnecessltates the useof DOE funds to finance reimbursable work performed for others. Thisis a violation of appropriation law. Additionally, exceptions shall not be granted which would cause advanced funding to be less than ● amounts necessary toprovide foran orderly phasedown and termination of the reimbursable agreement. . Except as provided below, cash advances shall be received prior to performingwork for non-Federal cus- tomers. Full fundlngis required prior to beginning workon reimbursable agreements with unestimated costof $25,0000r less or that will becom- pletedin 90days or less. For reimbursable agreements greater than $25,000 and that will last longer than 90days, sufficient advance funds shall reobtained tomalntain acontinuous 90-day advance of funds during theltfe of the project. No work will beglnbefore the receipt ofacash advance. The advance shall also cover anticipated termination cost that the Department would incur if the reimbursable work were terminated. Exceptions to the requirement for advances from non-Federal customers will be permitted only as specified below. (a) (b) Deliveries from stock on hand, when such deliveries can beaccom- pltshed quickly and will not require the use of current budgetary resources except to replace the stockon hand. Delivery ofitems or services withoutan advance, when permittedby specific law. This covers reimbursable work deliveries without advance payment as directed by specific laws or Executive Orders. An example is the detail of employeesto States and political subdivi- sions according to5U.S.C. 3373, and the detail of employeesto ● International organizations according to 5 U.S. C. 3343. IX-12 1-7-93 DOE 2200.6A Paragraph 2h(2) (c) When reimbursable 900ds or services are provided tofill averified requirementof work fora DOE funded cost-type contract, the reim- bursable agreement from the DOE funded customer shall constitute the budgetary resource.

(d) In specific circumstances when an advance cannot reobtained suchas from State and local governments whose laws prohibit the paymentof advances for goods and services. For these specific cases, anappro- priated budgetary resource shall beused: e.g., Cost of Work for Others program under the Departmental Administration Appropriation. (e) Any exceptions other than those authorized above requi re the prior approval of theCFO. Factors to consider when granting suchan exception include: 1 Whether legal authority forthe work and the exception exists; 2 Whether a budgetary resource wil 1 otherwise exist: 3 Whether a special benefit will be conferred on a customer for which there should bea charge; 4 Whether a potential cash flow problem will be created for the appropriation affected: 5 Whether areceivable collectibil ityproblem maybe created: and 6 Whether preprogramming of funds or supplemental appropriation maybe necessary to financean uncollectible receivable. h. bursabl e Budgetarv Resources and Obl iaatlmil Authoritv. . (1)~. A reimbursable agreement is available for the incurring ofobli gations whenever itmeets the criteria ofabud- getary resource and there is also sufficient reimbursable authority avail able within the allotmentto cover it. Cash advances from non- Federal customers and valid reimbursable agreements from Federal agencies are required to provide a budgetary resource to obligate. The require- ments for a budgetary resource and reimbursable authority are two separate and distinct requirements. If reimbursable authority within the allot- ment is insufficient, then it shall be necessary to request an increasein the allotment even though a budgetary resource exists. The inclusionof estimates in determining the amounts avail able for apportionment innoway authorizes anyonein the Department to obligateor make expenditures in excess of the budgetary resources avail able for obligation from sources identified in paragraph 2b(3). (2) !iieimbursable Obligational Authority Anallottee can only acquire reim- bursable obligational authority byo~tainin9 an allotment through the DOE allotment and approved funding pro9ram (AFP) process. IX-13 DOE 2200.6A 1-7-93 Paragraph 2h(2)(a) (a) porti~orti~ui r- TheOMBapportion- ●. mentand reapportionment process makes funds appropriatedby Con- gress avail able to Federal agencies for subsequent allotment, obligation, and disbursement. As part of the apportionment process, DOEmust submita request to have OMBapporti on DOE’s direct and reim- bursable obligational authority. (For further discussionof the apportionment process, see DOE2200.5B, FUND ACCOUNTING, Chapter I, “Administrative Control of Funds,” and Chapter II, “Accountingfor Appropriations and Funds,” and DOE 51OO.11A, BUDGET EXECUTION-OFFICE OF MANAGEMENT AND BUDGET APPORTIONMENT AND TREASURY WARRANT PROCESS.) At the beginning of each fiscal year, DOE requests appor- tionment of the estimated new reimbursable obligational authority expected to be obligated during the fiscal year. DOE derives these estimates froman annual informational call issued bythe CFO to Headquarters and field elements responsible for performing reim- bursablework. Once OMB apportions the reimbursable obligational authority, these resources subsequently can be distributed to cognizant Departmental elements through the Allotment andAFP process.

(b) ~. The Allotment andAFP process isDOE’s system for distributing all obligational authority, including direct and reimbursable authority, made availableto DOE for the fiscal year. Specifically, through the allotment process, the Department delegates authority to its allottees to incur obligations within the a amounts specified in the allotments. The AFP process provides a detailed programmatic breakdown of the total anlount of obligational authority shown in the allotmentin sufficient detail to facilitate program management and fiscal control. (For additional information pertaining to this, see DOE 5100.14, ALLOTMENT AND APPROVED FUNDING PROGRAM PROCESS. ) (c) inistrative ~ds ~ts (~trol of Al 10~- IIUWLQ. Reimbursable obligational authority contained in allotments constitutes funding Iimitation that restricts the amount of reim- bursable work that DOE can accept and perform for Federal and non- Federal customers. Allottees receiving reimbursable authority shall restrict obligations tothe lesserof either the amountof reimburs- able obligational authority allotted or reimbursable resources actual ly available for obligation. 1 If obligations or expenditures for reimbursable agreements exceed the reimbursable obligational authority, then an administrative violation bythe allottee has occurred. Exceedingan administra- tive limitation isa violationof DOE policy and, therefore, is subject to Departmental rather than statutory rule and penalties. However, exceeding a reimbursable limitation may translate intoa legal violation (31 U.S.C. 1514) at the Department level ifthe remaining direct obligational authorityis insufficientto offset the overrun in thereimbursabl eobllgational authority. (For more ● IX-14 1-7-93 @ DOE 2200.6A Paragraph 2i(l)(c) i . detail son the administrative control of allotments, see DOE 2200.5B, FUND ACCOUNTING, Chapter I. “Administrative Control of Funds.”) Z If during program execution, it becomes apparent that the existing level of reimbursable obligational authority is inadequate to accommodate future requirements, then the appropriate allottee must request an increase in authority through the allotment and AFP process, Furthermore, reimbursable obligational authority, previously apportioned byOMB, shall not be allotted without reasonable assurance that the associated reimbursable agreements will be realized and the resulting reimbursements will becol- lectedand depositedto the credit of theappropriati on orfund account incurring the charges. Accounting for Reimbursable Aareementfi . . Title 31, section 1301. of the United States Code expressly prohibits the expenditure of funds in an appropriation or appropriation account for purposes other than those that Congress intended. This statutory limitation applies equal lyto the execution of DOE mission programs andto the performance ofreimbursabl eworkfor other Federal agen- cies. In this regard. it is imperative that DOE employ prudent management and control techniques to ensure that reimbursable workis authorized. performed, and accounted forin accordance with congressional, OMB, GAO, and DOE budgeting and accounting policies and procedures. Prior to acceptance. reimbursable agreements shall be reviewed for adequacy of relevant accounting and funding data. potential budgetary resources problems, pricing factors, financial closeout procedures, and provision of billing information and addresses. Illustrative entries for recording reimbursable transactions are in DOE 22OO.1OA, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES.

(1) ution amlQ.ntrol of Reimbursable Aareme.nts . Use the following guidelines to ensure that reimbursabl ework is accomplished in accordance with established laws, regulations, and the provisions of the respective reimbursable agreements. (a) Departmental elements accepting reimbursabl e agreements shall establish firm cutoff dates prior to the end of the fiscal yearto provide ample time to review, accept, obligate, distribute. and record reimbursable agreements. (b) Integrated contractors shal 1 not begin any reimbursable work until they have obtained either an executed contractor contract modifica- tionor awritten authorization from the cognizant DOE contracting officer indicating that DOE has obtained a valid budgetary resource that will be reflected in the next scheduled contract modification with the integrated contractor. (c) All documents authorizing the performance oftasks that include reimbursable work shall specify what portion of the funding is reim- bursable orthat the total fundingis reimbursable. Furthermore, the IX-15 I DOE 2200.6A Paragraph 2f(l)(c) 1-7-93 DOE element performing thework shall identify and maintain all documents pertaining to arefmbursable agreement on file. (d) No work shall contfnue and no costs shall be fncurred beyond efther the perfod of performance or the amount of fundfng provfded in the reimbursable agreement and attendant modifications. Although the project manager fsresponsfble for promptly warnfng customers when fundingfs low and earnestly attempting to obtain sufffcientsuppl e- mental fundfng, the customer is ultimately responsible and account- able for any adverse programmatic consequences realized upon termination ofwork. Insummaryo it fsavfolationof statutory, OMB, and DOEpolfcies and procedures to perform reimbursabl eworkfn excess of or fn absence of budgetary resources. (e) DOE shall not ffnance reimbursable work from fts own appropriations or another customer’s funds butonly from the appropriation accounts of the ordering Federal agency or the cash advances from the non-Federal entity. (f) Reimbursable agreements shall not be obligated by DOEunl esstherefs sufficient refmbursabl eoblfgatfonal authorityin the respective allotment. It is important to recognize that. with the exception of the specffic case discussed in paragraph 2g(2), reimbursable oblfga- tfonal authority contafnedin allotments is not sufficient authority to initfate reimbursable work. A reimbursable agreement fsonly ● available for obligation when it meets thecriterfa ofa budgetary resource (see paragraph 2g) and when therefs sufficient reimbursable obligational authority avaflablewfthfn the allotment. (g) Oblfgatfons and expenditures on acumulative basfs shall not exceed reimbursable authority granted in allotments. Moreover, obligations and expenditures for each reimbursable agreement shall not exceed the budgetary resources authorized on that reimbursable agreement. (h) Interagency agreements are subject to the provisions of 31 U.S. C. section 1501, “Documentary Evidence Requirements for Government Obligations.” Accordingly. like commercial contracts, interagency agreements shall provide for specffic goodsor services. Reimburs- able agreements fafling the ’’specfficfty test’’ arenotvalfd obligations and shall be rejected. (i) To preclude potential bill ingproblems, theworkcompl etion date specifiedon reimbursable agreements or amendments thereto shall be strictly enforced. (z) J@QMin9.

(a) . Accepted reimbursable agreements shall decontrolled by unfque equity accounts to createa ● ceiling for obligations and costs, IX-16 DOE 2200.6A Paragraph 2i(2)(d)s 1-7-93 0 1 i! Source Dmment for Unobligated U nfilled Customers’ Orders . The source document for recording unfilled orders is the reimbursable agreement, along with evidence that the reimbursable agreement was accepted in accordance with DOE4300.2B, NON-DEPARTMENT OF ENERGY FUNDED WORK. The balance of the balance sheet account Unfilled Interagency Orders–Fund Cost shall represent the ceiling for costs. The balance of the balance sheet account Unobl igated Unfilled Customers’ Orders shall represent the ceiling for obligations. Source Document for Obligated Unfilled usto. mers’ Orders . For work performedby a DOE contractor. the source document for recording obligations is either the executed contract or a con- tract modification. For work performed by DOE personnel, source documents for obligations consist of travel authorizations, time and attendance documents, purchase requests, and so forth. The balance of the balance sheet account Obligated Unfilled Customers’ Orders shall represent the ceiling foruncosted obligations. (b) J3emrdinu Cash Adva_uces . Advance payments for reimbursable work shall be recorded as an unearned revenue. A liability shall be established and itshal 1 be reduced by accrued cost. Ifacash advance has not been received, establish an accounts receivable when recording costs in the accounting system. (c) .rdlna Work Performed by Contractors If reimbursable workis to be performed by unintegrated contract;, the cognizant DOE field element may assign all collection and accounting activities for the work to the integrated contractor. Otherwise, the integrated con- tractor may transfer the amount to DOE accounts, and the DOE element shall perform the receivable and collection activities. (d) Jlecordina Re~ . . 1 With the exception of added factor and depreciation, record reim- bursements in the appropriation or fund type in which the costs were recorded. That portion of the reimbursement that represents added factor and depreciation shall normal ly redeposited into the Departmental Administration Appropriation special receipt account. Refer to Attachment IX-2 for a descriptionof the Departmental Administration Appropriation special receipt account. 2 Collection or reimbursements received for reimbursable e work shall not be confused with appropriation refunds. Appropriation refunds are addressed in paragraph. a Record collections as adebit to the general ledger account Appro- priation Reimbursements. The balance of that account will IX-17 DOE 2200.6A 1-7-93 Paragraph 21(2)(d)a ● represent cumulative collections for reimbursable work for the fiscal period. Balance sheet codes and tllustrattve entries for recording collections arepresentedln DOE22OO.1OA, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES. (a) (b) (c) (d) (e) Approved Treasury forms or the Treasury’s On-Line Payment andCol- lectlon System must be used for expenditure transfers between DOE and other Federal agencies. The accounting office preparing the billing has the final determinationon the billing method. Billings shall not bein excessof the total amount authorizedby the agreement, including any amendments. Ifan increaseto the agreement is required, an amendment should beobtai nedfrom the issuing organization priorto incurring any additional costs.

Billings based upon accrued and recorded costs will be issued monthly or in accordance with reimbursable agreements and will include the date that goods and services were provided, in addition tothe “asof” billing date. For non-Federal customers, wire transfer, check, or cash payment may ● reaccepted, consistent with prudent financial judgment, (4) ~.Upon completion ofwork. the con- tracting officer shall notify the customer and provide an estimate of costs incurred. When the final costs are known, the contracting officer shall promptly notify the customer with a final statement of cost. Upon final settlement, any unused funds shall be returned to the customer. a. &nfyal.. The manner in which the Department budgets for revenue programs is quite varied, as is the subsequent classification and accounting forcollec- tions. The Department directly budgets for some revenue programs as appropria- tion reimbursements. The collections from these programs may be available for immediate useby the Department (for exampl e, the Bonneville Power Administra- tion’s Revolving Fund), may be offset against the appropriation (for example, Cost of Work for Others Program under the Departmental Administration Appro- priation), or may be used as asource for the appropriation (for example, the Nuclear Waste Fund). Acomplete listingof these revenue programs can befound in Attachment IX-3. Other revenue programs, such asthe saleof electrical power by a power marketing administration, are proprietary receipts andare deposited as miscellaneous receipts to the General Fund of the Department of the Treasury. These revenue programs can be found in Attachment IX-7. ● IX-18 1-7-93 @ b. pOljCV. DOE 2200.6A Paragraphed (1) Before accepting revenue producing work. DOE must determine thespeci fic legal or statutory authority for performing the work. This determination is necessary to ensure that the Department is capableof complying with the appropriate legal requirements. (2) No revenue producing activiti esshall begin either in the absence orin excess of the authorities contained in the allotment. (3) All revenues and related costs shall be recorded on an accrual basis. c.D~Q Producinu Work . . (1) Under DOE’s revenue programs ,work, products, and services are soldto both Federal and non-Federal customers, pursuant to authorizing legisla- tion. Treatment of the resultant revenues is provided forin either the specific authorizing or appropriation legislation. (2) The work performed under the revenue programs is similar innature to that performed under the reimbursable program. However, the distinguishing factor between the twois adetermination of the mission responsibilityof the work, that is. the customer’sor DOE’S. (a) As indicated in paragraph 2e, reimbursable work performed by DOE for others is considered to be part of the customer’s direct mission responsibility and not that of the Department. In contralto under the revenues program, DOE sells work, services, or products that fall within the scope of DOE’s direct mission. (b) Because the revenue producing work performed under revenue programs is by definition mission related work, it is financed directly through DOE mission program appropriations. This isin contrastto work performed under the reimbursable program. which is financed through budgetary resources provided by the customer. d. itv To Prod~ Sell Products and Services.

(1) Before performing revenue producing work, DOE must determine thespecifi c legal or statutory authority for performing the work. This i.s necessary to ensure that the appropriate review determinations aremade and that the Departments capable of complying with the appropriate legal requirements. (2) It is important to note that two ormore distinct statutory and legislative authorities may exist that can affect both the performance of work and the disposition of the resulting revenues. For instance, Public Law 93-438, the Energy Reorganization Act, section 301(a), transfers the functions of the Energy Research and Development Admini stration to DOE. In this regard, both of the Department’s annual appropriation acts. Energy and IX-19 DOE 2200.6A Paragraphed Water Development and Interior and Related Agencies Activities, contain Ianguage that authorizes certain revenue producing activities under the various appropriation accounts and dictates thedispositi on of the resulting revenues. Therefore, when considering performing work under revenue programs, the Department must consult all applicable authorities to ensure overall compliance. Attachments IX-3and IX-7 contain additional authorities relatingto revenue programs. (1) Crfteria for Develow. Review. and Accf@mce of Orders (Fxce?t pow Marketing l@ninistrationsJ. For services, products, ormaterials regu- larly produced for sale at scheduled rates or catalog prices, under Departmental revenue programs, the DOE Element performing the work must receivea bona fidewrltten order from the customer before initiating work or filling the order. However, for nonroutineworkor services that con- stltutea significant financial commitment similar in nature and scopeto that performed in the reimbursable program, a bilateral written agreement between DOE and the customer shall be executed. This agreement shall include appropriate coverage of the criteria set forth in Attachment IX-1, and accepted In accordance with theprovi sions of DOE4300.2B. (z) ~. Power ls marketed by power marketing adminis- trations pursuant to contracts. The power marketing rates are subjectto ●reviewby the Federal Energy Regulatory Commission. (3) .Pricina of Products. Services. or Work (Cost IWoverYl . The development of charges for products or services incident to the Department’s revenue producing activities shal 1 be in accordance with DOE 2200.7, COST ACCOUNTING, Chapter II, “Pricing.” (1) tieral. By definition, revenue producing activities are considered tobe mission related activities of the Department. Therefore, the budgetary resources required to finance such work come from DOE’s direct approprl- ated funds, provided the workis budgeted and approved in accordance with the procedures contained in paragraph 3g(2). Consequently, when appro- priated funds are allotted during program executi on, the allotment shall serveas both the obligational authority and the budgetary resources to accomplish the work. (2) ~. Because DOE financeslts revenue producing activities each year through DOE appropriations, the Department does not generally require advances for such activities from either Federal or non-Federal custom- ers. Given this convention, itls essential to determine that the requested work, products, or services arein fact DOEm~ssion activities and that the associated resources to accomplish the work were budgeted and are availab~e for obligation within the allotment. ● IX-20

DOE 2200.6A Paragraph 3g(l)(c) (3) .Mzptions to Advances pOli CY . Under certain circumstances, DOE may require advances from non-Federal customers to protect the Government’s interests. (a) Acustomer may request that significant, nonroutinemodifi cationsbe performed on astandard DOE mission related product to suit the cus- tomer’s specific operational requirements. In this case, DOE should requirea cash advance to cover, at aminimum, the incremental costs the Department incurs for performing that portionof thework thatis not related to the DOE mission. DOE would then administer thecollec- tions or revenues derived from the sale of the off-the+helf product under the revenues program and the collections from the modification work under thereimbursabl e work program. For these mixed program situations, DOE elements shall determine advance requirements on a caseby+ase basis, giving due consideration to the mission responsi- bilities. the significance of the incremental costs, the nature and scope of the services provided, and other pertinent factors. (b) DOEmayalso require cash advances to protect the Government’ sinter- est against both Federal and non-Federal customers that have either previously defaultedon payments to the Department or that have otherwise been deemed to be apoor credit risk. If in doubt, obtainan advance. 9. ~. (1) meral. Under the revenue programs, allotments provide two distinct authorities for conducting revenue producing activities which are direct obligational authority and, in some cases. authority for retaining the revenues. (a) Direct obligational authority available through DOE’s mission appropriations. provides the authorityto engage in specific revenue producing activities, such as the productionof products or goods for sale to others. An example of this is the sale of isotopes under the Departmental Administration Appropriation and the sale of electric power by apower marketing administration. (b) For programs that specifical lyallow retention of revenues ,the authority for retaining revenues gives DOE the authority to use the revenues derived from specified revenue producing activities without further action by Congress. For example, the Colorado River Storage Project, operated by the Western Area Power Administration, has the authorityto retain revenue produced from the saleof generated power, which, in turn, is used to finance the power marketing (reve- nue producing) operations that produced the revenues in the first place. (c) No revenue producing activiti esshall begin either in the absence or in excess of the authorities contained in the allotments. IX-21 DOE 2200.6A 1-7-93 Paragraph 3g(l)(cf) (d) Additional requirements associated with the administrative control ● of allotments are addressedin DOE2200.5B, FUND ACCOUNTING, Chapter I, “AdministrativeC ontrol of Funds.” (z) ~. Because DOE finances the vast majorityof its revenue producing activities through appropriations, the budget require- ments are subjectto the same budget and administrative process as other Departmental mission programs. (a) DOE elements must satisfy the following general conditions before using appropriated funds to finance revenue producing activities: 1 2 3 The work must be properly priced and incorporatedin theapproprl- ate budget schedules in response to the annual field budget call process (see DOE 5100.3, FIELD BUDGET PROCESS, of 8-23-84).

The required funding level s for accomplishing theworkmustbe approved through the OMBand congressional budget process and subsequently reflected in the respective annual DOE appropriation account(s). The resources mustbe allotted, reflected inthe amroved funding programs, and made available forobligati on and expenditure. - (b) Requirements in paragraph 3g(2)(a) above do not apply toroutlne ● deliveries of standard products that wfll not r~qh;re the use of current budgetary resources except to replace the stockon hand and providing thatan allotment andan AFPare available. (c) The inclusion of budget estimates and the subsequent approval during the budget process does not constitute authority toinltiate workor incur costs. Such authority for revenue producing activities is only available upon receipt of the allotment and the related AFP reflecting funding for those activities. h. ~. Illustrative entries for recording revenue trans- actions arein DOE2200.10A0 ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES. All revenues and related costs shall be recordedon an accrual bas!s. The following guidelines determine when to accrue revenues. (1) ~. Revenue for products and services shall be recognized as earned when products aredellvered, services are performed, or progress payments are received. (2) Mna-Term Mtracts for Sale of Products or Servfc~ ● Revenue for the sale of products orservlces sold undera long-term contract shall be recog- nized in the period fnwhich the products or services arephyslcally or constructively delivered to the purchaser. Constructive delivery occurs when DOE meets theobligatlons of the long-term contract. ● Ix-22 1-7-93 a 4. ADVANCES FROM NON-FEDERAI CUWIMERS FOR COsfWNWf3ED WOW ● DOE 2200 .6A Paragraph 4c(l) a. .Wli.cY. (1) Federal funds shall not be used to financea cosponsor’s share ofa project. In cases where the non-Federal contributions are not provided to the Department foroblfgatlon and disbursement, such contributionsof the non-Federal cosponsor may be paid directly to the performing contractor. Whena cosponsored agreement provides for the non-Federal customer’s share of cashto flow through the Department, advance funding from the non-Federal cosponsor shall be obtained for subsequent obligation and disbursementby the Department. (2) Efficient and economical transfer of funds procedures shall beestab- lished and maintained for all cosponsor’s funds received and controlled by the Department. (3) Funds received from non-Federal cosponsors shall redeposited inaDOE special deposit account at the Department of the Treasury. (4) Funds received by the Department from a cosponsor shall be controlled and accounted for in such amanner that specific identification and al reconciliation on a project-by-project basis are maintained. b. ~.Cosponsored work refers to jointly funded, cooperative efforts to perform research, development, demonstration projects, and other work of an experimental nature undertaken by DOE and one or more non-Federal cosponsors (domestic or foreign) for the mutual benefit of all parties. (1) Under this type ofwork, the cosponsors usea funds-in arrangement to con- tribute their share of the project, providing funding directly to DOE for deposit intoan appropriate Department of the Treasury account for the subsequent obligation and disbursementby the Department. DOE, thus, requires advances to finance the cosponsors’ share of the project.

(2) The provisions of this section do not apply to funds-out cooperative work agreements. c. ~. Before entering into cosponsored agreements, DOE must determine the specific legal or statutory authorities for performing the work. When considering such activities, consult the following authorities. (1) Public Law 93-438, the Energy Reorganization Act of1974, section 107(a), authorizes the Energy Research and Development Administration (ERDA) to make arrangements (including contracts, agreements, and loans) for con- ducting research anddevel opment activities with private orpublicinsti - tutions or persons, including participating in joint or cooperative research, developmental. or experimental projects. This act also autho- rizes the ERDA Administrator to participate in international cooperative IX-23 DOE 2200.6A 1-7-93 Paragraph 4c(l) efforts ln energy related research and development. Public Law 95-91, the ● Department of Energy Organization Act, section 301(a), transfers the functions ofERDA to DOE. (2) Public Law95-224. the Federal Grant and Cooperative Agreements Actof 1977, defines the circumstances and conditions for using contracts, grants, and cooperative agreements. (3) GAO Policy and Procedures Manual for Guidance of Federal Agencies ,Title 7, “Fiscal Procedures,’’ and Appendix B, “Departmentof the Treasury and General Accounting Office Joint Regulation No. 3of June12, 1951, Proce- durefor Handling Special ,Trust, Revolving. and Deposit Fund Collec- tions.’’ provide that receipts deposited to certain special funds are available for expenditure without the issuanceof covering warrants. (1) &quir~. Before initiating work, the cognizant Secretarial Officer shall establish and execute a written agreement with all parties in a cosponsored work project. This agreement shall set forth the workto be accomplished, each cosponsor’s share of cost. the payment method, and related requirements. (a) When the agreement provides for an incremental financing arrangement with the cosponsor(s), then DOE shall establish a corresponding ● funding schedule andincl udeitin the written agreement. Sucha funding schedule shall provide for sufficient advance payments in accordance with paragraph 4e(3). (b) DOE shall take into consideration ,whenapplicable, the criteria set forth in Attachment IX-l for establishing reimbursable work agreements. (2) pricing. The development of charges for cosponsored work agreements shall be in accordance with DOE 2200.7, COST ACCOUNTING, Chapter II, “Pricing.” e. B~ta v Resourcesr . (1) RQE. Budgetary resources necessary to perform DOE’s shareof cosponsored agreements are provided from direct appropriated funds provided the work is budgeted and approved in accordancewith the procedures containedin paragraph 3g(2). Consequently, when the appropriated funds are allotted during program execution, the allotment shall serve as both the obligational authority and the budgetary resourceto accomplish the work. (2) asponsor. In cases where DOEwill be performing the workin thecospon- sored agreement, the budgetary resource necessary to accomplish the non-Federal cosponsor.’s share of the cosponsored agreement shall be derived from cash advances obtained from the cosponsors before work commences. IX-24 DOE 2200.6A Paragraph 4g(2)(b) 1-7-93 m (3) ~. DOE shall not use Federal funds to finance acosponsor’s share

of a project. To preclude such financing and to protect the vested inter- ests of all parties, DOE shall obtain advances from non-Federal cosponsors before work commences. Advances shall be sufficientto cover theobliga- tional and cash requirements of the work until a subsequent advance request can be made. collected, and recorded. Advances shall also cover expected termination costs that the Department could incuron behalfof the cosponsor. including decontamination and decommissioning of any facility forwhichno further DOE use is planned. In this regard. apply the specific requirements pertaining to advances for reimbursable work for non-Federal customers, described in paragraph 2g(2). to advances for cosponsored work. f. ~.The cognizant Headquarters element pro- grammatically responsibl eforthe work shall coordinate with the cosponsor and the CFOto facilitate the transfer offunds from the cosponsor to DOE. DOE shall deposit funds received from non-Federal cosponsors intoa special Departmental deposit account. Attachment IX-6 reflects the current deposit account pro- vided by the Department of the Treasury. The responsible Headquarters element shall prepare and issue tothe CFO Form F2100.10 “Request for Allotment of Funds for Transfer Appropriations and Other Special Accounts.” Once theCFO receives DOE F21OO.1 and certifies that cosponsor’s funds have been received and deposited, the form shall be subsequently forwarded by the Director Office of Departmental Accounting and Financial Systems Development (CR-40), to the Director, Office of Budget (CR-1O), for preparation and issuance of the allotment. The allotment of funds to the performing entity provides authority to obligate and expend the funds. The performing element shall not perform work eitherin theabsence ofor in excess of the authority contained in the allotments. 9. tlncffor~onsored Work.. (1) ~. In controlling and accounting for funds received for cosponsored work efforts, DOE shall maintain the iden- tity and integrity of each cosponsor’s share of funds separately ona project-by-project basis. Furthermore, DOE shall not use Federal fundsto supplementor financea cosponsor’s shareof a project. (2) tina for Advances Received for Cos~ored Work . (a) DOE shall deposit all advances received from cosponsors forworkto be performed by DOE into a deposit account established by the Depart- mentof the Treasury (see Attachment IX-6). DOE must subsequently transfer the collection from the deposit account toa trust account before obligation and expenditure. The current trust account pro- videdby the Department of the Treasury for this purpose is presented in Attachment IX-4. (b) When DOE receives funds from a foreign cosponsor, the Department shall use the services of the central bank of the country involved IX-25 DOE 2200.6A I 1-7-93 Paragraph 4g(2)(b) (c) (d) whenever possible. Use correspondent banks only if doing SOIS cost effective. Arrange for the transfer of funds on a project-by-project baslsin consultation with the CFOor the Field CFO. DOE’s liabilityin cosponsored work projects shall delimited tothe appropriations available for the Department’s share of the project. The advance payment from a cosponsor shall be recorded asaliabil - ity. As cost is incurred revenue will be recognized andtheliabil ity account reduced. Use the appropriate designated financial codes and illustrative entries, found in DOE 2200.10A, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES, Chapter II, “Financial Codes.”

a. Description. Refunds to appropriations are amounts received that represent the return to DOE of excess payments made to others. Refunds result from over- payments, payments made in error, or adjustments for previous amounts dis- bursed, including returns of authorized advances and rebates. Unlike reimbursements, refunds are directly related to previously recorded disburse- ments. Thus, the recoveryof an erroneous payment or overpayment qualifies as a refund to the specific appropriation originally charged and is deposited therein, rather than to the General Fund of the Department of the Treasury. Collections shall not be treatedas appropriation refund in order to circumvent title 31, section 3302, of the United States Code. ● b. -tinafor Refw. Deposit such refundsin the same appropriation account as the previously recorded disbursements. The deposited refunds may beimmedi- ately avail able for expenditure and may be available for obligation to the extent of any deobligation, unless deobligation isfroma prioryearobliga- tion. Detail edpolicy and guidance for determining theavailabil ityofappro- priations and fund balances are covered in DOE 2200.5B, FUND ACCOUNTING, Chapter II, “Accountingf orAppropriations and Other Funds.” When preparing SF-133, “ReportonBudget Execution,” refunds shall be netted against the obligations and outlays of theappropri ation account. 6. ~. Collections made by the Department’s inte- grated contractors are accounted for either as appropriation reimbursements, reductionsof cost. or General Fund Miscellaneous Receipts. a. ursm . All collections for performance of reimbursable work and sales of goods and services under revenue programs will be deposited directly into the Department of the Treasury asa credit toa DOE appropriation account. b. Jlfifjuctions ofCost. Collections accounted for as reductions of cost may be deposited to the contractor’s letter-of-credit bank account and netted against @ IX-26 1-7-93 DOE 2200.6A Paragraph6c disbursements. The following collections maybe accounted foras reductionsof cost: (1) ~dueted Collections. Collections that are~ and represent reimbursement for materials and services maybe retainedby the contractor ifmof the following criteria aremet: (a) Retention of collections is authorized by the contract. (b) Materials and services prOvided are: 1 Generally of an overhead nature. Z Incidental to and unrelated to the unique features of the direct program mission. a Furnished as a convenience to individuals (primarily DOE and DOE contractor employees). (c) Examples areas follows: collections received for bus. food, and cafeteria services; housing: sales from stores inventory; and col- lections suchas commissions/rebates from travel agents and rebates from GSA for gasoline. (d) If collections of this nature are not budgeted as cost offsets ,they mustbe returned to the Department of the Treasury as General Fund Miscellaneous Receipts. Collections resulting from the saleof materials and services produced as a direct result of the Deprogram mission should be budgeted and accounted for as revenues (see paragraph 3). (a) Proceeds of personal property sales if authorized by the contract (see paragraph 9b (2)(c)). (b) Collections from Other DOE contractors for direct pro9ram mission work performed on a cash basis. (c) Refunds resulting from overpayments ,payments made in error, or adjustments for amounts previously disbursed. suchas returns of authorized advances.

c. ~. Collections not covered either under Appropriation Reimbursements or Reductions of Costas described above (e.g., interest, penalties, and administrative charges collected on delinquent accounts receivable) will be depositedto the Department of the Treasury as General Fund Miscellaneous Receipts. IX-27 DOE 2200.6A Paragraph7 1-7-93 a. JMcription Donations. gifts, and bequests are defined as unsol i cited CO1 - lectionsre~eived by the Department from the public that are neither attrib- utable tenor associated with any contractual or other binding devices for performing work or services. Donations, gifts, and bequests provided to the U.S. Government mustbe deposited into the General Fund of the Departmentof the Treasury. However, donations provided to individual Federal agencies maybe available for useby that agency, subjectto statutory authorization. b. orltv . Under title 31, section 1302, of the United States Code, an agency shall not accept for its own use (that is, for retention bythe agencyor for creditto its own appropriation) gifts of money or other property in the absence of specific statutory authority. In this regard, DOE does have specific authority for accepting public donations. Specifically, Public Law 95-91, section 652, the Departmentof Energy Organization Act, authorizes the Secre- tary (S-1) to ’’accept, hold, administer, and utilize gifts, bequests, and devises of property, both real and personal, for the purpose of aiding or facilitating the work of the Department.” (The Secretary has delegated this authority, on a nonexclusive basis, tothe CFO.) Pursuant to this, DOE may accept and use gifts, bequests, and devises only after determining that the proposed use of such funds will not violate the terms of the authorizing statute. c. unt inu Con siderat ions. (1) cut ion a dCont 01 0fWor~ The specific useof donations, gifts, and bequests ul~imatel~ depends o; thescope of the enabling legislation and the terms of the gift. (a) Under law, only the Secretary can accept gifts and approve the subsequent use and expenditureof funds. (b) DOE shall meet as closely as possible the terms stipulated bythe donor for using the gift. (c) Gifts can beused onlyin furtherance of authorized Departmental purposes. Gifts made under the express condition that they be used for some unauthorized purpose shall be promptly returnedto the donor. (d) DOE must deposit andallotgi ftsofcash through the Allotment andAFP process. (2) Awunti a Treatmentn . DOE shall deposit donations, gifts, and bequestsin a trust fund account in the Treasury, using the appropriate designated account codes and illustrative entries contained in DOE22OO.1OA, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES. Attachment IX-5 contains the Department of the Treasury accounts established for donationso gifts, and bequests. ● IX-28 1-7-93 130EZZO0.6A al Paragraph 9b(2)(b) 8. ~POSITFUNM record receipts and subsequent expenditures of funds held in suspense temporarily and later returned or paid into Department of the Treasury receipts upon determinationof proper disposition. Deposit fund accounts are classifiedin the 6000 major class series of account symbol s(see Attachment IX-6). a. J)isposition. Once the dispositionof the receipt is determined. the finance office shall remove the receipt from the deposit fund accountant record itin the applicable account or return it, as appropriate.

b. ReviW. Deposit funds shall be reviewed on a quarterly basis, ataminjmum, to ensure that moneys in the deposit fund accounts are transferred as promptly as posstble to the credits of the applicable accounts or that they are refunded appropriately. 9. ~. a. J?QW2Y. (1) As ageneral rule, all collections received by DOE shall be depositedas miscellaneous receipts to the General Fund of the Department of the Treasury unless otherwise authorized by statute or this chapter. (2) Retaining and using collections that DOE should have deposited asmis- cellaneous receipts constitutes an improper augmentation ofDOE’s appro- priations and is a violation oftitle 31, section 3302, of the United States Code. b. eDtlons. . These exceptions are Proceeds received (1) Weral. Enabling, appropriation, and other kinds of legislation provide DOE with anumber of exceptions to this general rule. described in paragraphs 2through8. (a) Disposal by the General Service Administration by DOE offices from the sale of plant andequipm~nt shall be handled general ly as miscellaneous receipts. If the disposal istobe madeby the General Services Administration. the DOE office clearly identi - fiesthe accountable offi cerandoffice by name, station, and symbol to be credited on the requisition and disposal documents. If the property is turned over to the General Services Administration, the DOE office shall make no entries until thesale has been completed. (b) Use of Proceeds for Replacwt of personal pro?- . Proceeds receivedby DOE offices from sales of personal property disposed of pursuant to exchange and sale authorityin Federal Property Manage- merit Regulation 101-46 and prior to replacement will be deposited in the clearing account 89F3845, Proceeds of Sales, Personal Property. Such funds will remain available for obligation for the acquisition IX-29 DOE 2200.6A 1-7-93 Paragraph 9b(2)(b) a of similar items of personal property through the fiscal year follow- ing the sale, and acredit totheappropri ation charged initially for the replacement shall bemade. However, sales proceeds that are not applied to the purchase of the replacement property within the time limits specified shall be redepositedto miscellaneous receiptsas prescribed in Federal Property Management Regulation 101-46.404. Proceeds received from sales of property after the purchase of replacement property may be deposited as direct reimbursement credits to the appropriation previously charged for the replacement items. (c) C@ TwWmtractQrs * Collections FrmU5ale of Personal Propw Regarding collections by cost type contractors (as stated inthei; contract), proceeds from the sale of surplus personal property shall be handled as reductions to such contractors’ immediate cash requirements and shall be creditedto the Operating Expense or Plant and Capital Equipment appropriation account, asapproprlate. Pro- ceeds applledin wholeor in part as payment for similar replacement property shall be documented. For additional information, seethe Federal Property and Administrative Services Actof 1949, Public Law 81-15. sections 201(c) (exchange and sale) and 204(e) (surplus). When personal property is transferred from one cost-type contractor to another (including construction contractors) for disposal, the proceeds from disposal shall be used by the disposing contractorsas reductions of costs under the contract operations. When personal ● property is transferred from a DOE office to an operating contractor solely for the purpose of disposal, the contractor shall return the proceeds to the DOE office, which shall handle them as miscellaneous receipts and return them to the Department of the Treasury.

(d) ~ear Waste Futi. Proceeds from the saleof capital equipment owned bythe Officeof Civilian Radioactive Waste Management shall be returned to the Nuclear Waste Fund or the Interim Storage Fund rather than submitted to the Department of the Treasury as miscellaneous receipts. c. Jvpeof Collectior&. Attachment IX-7 provides alisting of the miscellaneous receipt accounts currently used by DOE. These accounts represent awide varietyof collections, including such significant activities as the saleof electric power by the Alaska, Southeastern, Southwestern, andparts of the Western Area Power Administrations aswell as the sale of products from the Naval Petroleum Reserves. A complete listing of all Department of the Treasury General Fund miscellaneous receipt accounts can be found in the supplement to volume lof the Treasury Financial Manual. d. ~. When depositing collections as miscellaneous receipts into the General Fund of the Department of the Treasury, use the appropriate account codes and entries contained in DOE 2200.10A, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES. IX-30 1-7-93 DOE2ZO0.6A Paragraphll ~.Collections received for personnel detailedon temporary assignment to other Federal agencies; state, local, and Indian tribal governments: institutions of higher education: or other approved ellgible organizations shall be returned to the appropriation bearing the expense. ~TIOf!&. Collections received by DOE that cannot appropriatelybe classified under the previously described nine categories (paragraphs 2 through IO)will require a determination on a case-by-case basis in consultation with the CFO. IX-31 (and IX-32) , 1-7-93 DOE 2200.6A Attachment IX-l FOR DFVELOPMFNT. W~E OF AGRE.EM.NTS FOR RF IMBUS.ABU WORK OR W3YICFS By DOF OFFICML.S 10 APPLIUWUQMLWFS OF NXNFSTNU!MOM . a. Final execution is completed before the expiration of the periodof availability for obligation of the appropriations or funds concerned. b. Requester commits copayment of asumofmoney to pay the full cost of thework requested. c. Requester commits to payment to a specified DOE activity. d. Provide for only specific goods or performance of work and services authorized bylaw. e. Requester must specify in the reimbursable agreement any statutoryor other limitations imposedon theuse of funds relative to theworklservi cestobe performed, e.g. , prohibition against purchasing ADPand/or other capital equipment; limitation on amounts to be expended on individual minor construction projects; etc. e f. Specify that requester funds are available and the specific source ofthese funds and the time period of availability. 9. State any reports required. h. Specify what capital equipment and real property are to be procured andwhowil 1 own that property. i . State the expiration date of the agreement. j. If an advance has or will be received, specify the office and account to which it has orwill be deposited. k. Provide for a DOE agreement reference number. 1. Provide names and mailing addresses of the performing and requesting parties’ accounting offices. m. Identify total estimated cost ofwork or services to be reimbursed. n. Include billing information. o. Provide for a certification that goods or services have been received. a P* Include general, business, and technical provisions of the agreement. q* Specify that the reimbursable work will neither commencein advance ofnor continue in the absence of budgetary resources, Ix-33 1-7-93 CJOE 2200.6A Attachment IX-l

r. Provide for reimbursement to DOE for rlsksresultlng from termination and environmental cleanup. s . Provide forslgnature by inappropriately authorized representative of the requestor. t. Determine that the proposed reimbursable agreement contains a complete and final statement ofwork orservices tobe performed and all required speci- f~catlons/documentation. Incomplete reimbursable agreements shall be rejected and returned to the customer for finalization. 2. APPLI~ UYQL!LU. Specify requester statutory orlegal authority cited under which reimbursable work Is being requested. a. Requester specifies statutory or legal authority under which reimbursable work isto reaccepted and performed. b. When granting exemptions to the cash advance requirement for State and local governments, provide for acertificatlon of the statutory limitations precluding cash advance payments. c. Cite the proper appropriation. d. To the extent possible, determine that a reimbursable agreement waslssued for acceptance/obligation in the current fiscal year for programmatic consider- ations rather thanto obligate the funds to extend the lifeof an expiring appropriation. e. Project order interagency agreements issued by DOD activities are analogousto contracts placed with commercial customers and to the same extent as such con- tracts shall be specific, definite, andcertain asto the work or services encompassedby the agreement. Project order agreements shall not reaccepted for work or services ofa recurring or routine nature, i.e., calibration ser- vlces: computer operation services; base operations/ maintenance services, etc. Amendments to project order interagency agreements which effectively Increase the scope ofwork ortotal value of the basic agreement maybe accepted anytime during the period ofobligatlonal availabilityof the source appropriation, but not thereafter. f. Ensure thatwork completion dates contained in agreements provide sufficient time to accomplish the requested work or services as delineated in the statement ofwork. IX-34 1-7-93 DOE 2200.6A Attachment IX-2 .m m w - - ! Ii0i mo1 1 - V Y =0u .. m v.- H m0 ). Ix-35 DOE 2200.6A Attachment IX-2 ‘s$Inc-) mr - l 0“.u ’). 3I-t r ) w — - u-t c-) in. m 1-7-93 I X-36 >< I W en Account to Which Collections Are Deposj ted Accoynt T; tl e 89X5068.92 89X5068.93 Reimbursable Work for Non­ Federal Entities-Western Area Power Administration Reimbursabl e Work for Federa 1 Agenci es-Western Area Power Administration Aythority 31 USC. 1535 5 U. C. 535 Type of Coll ecti ons Collections from non-Federa" entities for reimbursable work programs under the Western Area Power Admi ni st rat ion. Collections from Federal agenci es for reimbursabl work programs under the Western Area Power Administration. Accounti ng Treatmentl Spec; al Notes ..... X I ~ ~ ~ a a 0"1 > Attachment IX-3 e MFNT OF THF TREA URY As CCOUNTS TO oJIHICH C I IFCTIONS ARE DFPOSITED: REVFNUES Account to Uhi ch Col 1 ecti ons Accounting Treatment/ Are Deposited ccount Title Authoritv TYDeofCollections Decial Notes Revenues available to DOE for immediate use: 89X0206 Geothermal Loan Guarantee 16 U.S.C.41O and Interest Assistance Program+eothermal Resources Development Fund 89X0233 Strategic Petroleum Public Law Reserve-PetroleumAccount 97-35 89X4045 Bonneville Power Marketing 16 U.S.C.838i; Fund 42 U.S.C. 7151- 7152 89X4180 Isotope Production and Distribution Fund

Fees and recoveries collected for Geothermal Loan Guarantee Power Act. Proceeds from Resale of Strategic Petroleum Reserve oil reserves. Receipts collections and Deposit directly into recoveries from all sources, revolving fund including trust funds and 89X4045. loan proceeds from the Bonneville Power Administration Revolving Fund. 89X4452 Colorado River Basin Power 43 U.S.C.620d: Revenues received from the Deposit directlY into Marketing Fund, Western 42 U.S.C. Colorado River Stora9e revolving fund Area Power Administration 7152 Project, the Colorado River 89X4452. Basin Project. and the Fort Peck Project. l-l x c!) -4 DOE 2200.6A Attachment 1X-3 1-7-93 0 . aJ . , .-.- ol- l a l G.m l- l mC-1 . Lo . . 1--1 “m 4 Jinsw - Iu0 ’) mWa)3sw>2 . . . IX-38 1-7-93 DOE 2200 .6A Attachment IX-3 . mwvso u“. !-4. IX-39 D O E 2 2 0 0 .6 A Attachment IX-3 1-7-93● u-l . ~ w “ C & a . m L l- W o w w # s IA - 1 0 * z$ -l 0 C /Y .Pn m l IX -4 0 Attachment IX-4 PFPARTMENT OF THE TRFASURY ACCOUNTSTOk/~CHCOLl ECTIONSmDEP SITEo D: COSPONSORBJWORl( Accountto Which Collections Accounting Treatment/ reOeD osited Account T~tle Author itv TVDeo fCollections Decial Notes 89X8575 Advances for Cooperative Pub’ Work Pub’ 438 Pub” 224 icLaw 95-91 Advances from foreign ic Law93- private industries, domestic sources, international ic Law95- cooperative agreements, and public utilities for various experiments and research projects. Attachment IX-5 DP TE Cco o~~SITED: ONS. GIFTS. AND Accountto Which Collections Accounting Treatment/ re Deposited Account Title Authority TYDeof Collectlo ns S~ecial Notes 89X8576 Donations, Gifts, and Public Law 95-91 All gifts, bequests and Bequests sec.652 donations are deposited in 89X8576. 1-7-93 DOE 2200.6A Attachment IX-6 4 n(Ano1 u ) o wA! - l L .40r-) A0momotox0 ) co . . = = -uwLomso0 . (n s J -l o IX-45 1-7-93 DOE 2200.6A Attachment IX-6 tnLS W a > L .1 -- W 4J 5 : o-1o . .u I la 1 X-46 1-7-93 DOE 2200.6A A ttachm ent IX -6 IX -47 (and IX -48) ...... X I ~ ....... ...... X I ~ co Account to Which Collections Are Deposited Account Tit] e 89X6875 Unidentified Remittances whi ch are credited as Suspense Items Outs ide the Budget Authority Type of Co) ) ect; ons Payments credited as suspense i terns outs i de the budget unless there is reasonable chance that they wi)) be credited to a receipt. appropriation. or fund account within the budget . Accounting Treatmentl Spec; a) Notes N N o -0 X· I 0'1 0'1> 1-7-93 DOE 2200 .6A Attachment IX-7 NomC-Y Nomc -l No(-9 m IA I oc -l m . v “mLwc-osIum . .(nEaLm0Lnmwscw>c% u-) -rNm l 0 ) co IX-49 l-l % Jl o Accountto *O Hhich Collections Account~ng Treatment/ t-to rtm Autiitv Tvpeof Collections . m ed ccwt Title Decl al Notes ON~Ngo Other CO1” 890840 890869 89 ecti ons: Patent, Trademark, and 31 U.S.C. 3302 Copyright Fees Fees for Legal and Judicial 31 U.S.C. 3302 Services, Not Otherwise Classified 020 Fines, Penalties, and Forfeitures, Economic Stabilization Laws 891030 891060 Fines, Penalties and Forfeitures, Immigration and Labor Laws Forfeiture of Unclaimed Money and Property 891099 Fines, Penalties, and Forfeitures Not Otherwise Classified 31 U.S.C. 3302 31 U.S.C. 3302 31 U.S.C. 3302 Fees and other charges related to application issuance of patentso trademarks, and copyrights. Costs of administering special programs, fees and charges for administrative, professional, andjudicial services.

Fines and damages for violations of Emergency Price Control, second Har Powers, and similar acts. Forfeiture of bonds posted by aliens, penalties for violation of various labor laws, and unclaimed back wages under these acts. Unclaimed money and proceeds fromthe saleof abandoned or confiscated property– from veterans or military personnel, patients and residents of Federal hospitals. unexplained balances in cash accounts, and payroll allotment accounts forU.S. savings bonds. For depositor Administrative charges and penalties. Includes payments from account 89X6425, Payments by Alleged Violators ofDOE Regulations, that aretobe returned tothe Department of the Treasury asmiscel- laneous receipts. we cd 1 -7 -9 3 m DOE 2200 .6A Attachment IX-7 Nomm . u . m . . l+c-’-l !-4 P -) l- l (--l Iu m*m $ -l L n m0 ) co !- l am d0 ) a l IX-51 DOE 2200.6A Attachment IX-7 1-7-93 woc-+-) C.-1.u . v -l.mGmm . . ‘ssov2m!= .F - L I IX-52 1-7-93 0 . gILmco DOE 2200.6 Attachment IX- 1%-53 ( and IX-51 Accolmt to Which Collections aA.t.:re!L1<DDiie~p')£ooLs lu· ti<..!ie'-loldL---cAOl..cloCcollJuilUnut,-Tufut....1l.s:e __________ AutJlorJ_t.Y ____ lYpe_QLCQ1J.ecUoD.S Accounting Treatmentl ____ -"SwP..e.c.llL".12..te_L __ _ 89F3878 89F3879 89F Deposits in Transit Differences (Suspense) Undist rf buted and Letter of Credf t Di fferences (Suspense) Unavafl ab 1 e Check Cance 1 . 1 at f on and Overpayments (Suspense) Thi s account is subject to adjustmerlts by the Denartment of the Treasury for discrepancies relating to deposit tickets and/or debi t vouchers that have agrd 6 months or more. Balances shall be cleared to the correct account as expeditiously as possible Amounts held in suspense until determination is made to the correct account. Account used to ho 1 d checks cance 1 led and overpayments unti 1 they are properly placed. ● U.S. Department of Energy PAGE CHANGE Washington, D.C. DOE 2200.6A Chg 1 4-13-93 SUBJECT: FINANCIAL ACCOUNTING 1 . .PURPOS~ To transmit revised pages to DOE 2200.6A, FINANCIAL ACCOUNTING, of l-7-93, ”Chapter IV, “Investments” and Chapter VI, “Plant and Capital Equipment.” 2. EXPLANATION OF CHANGE . a. Chapter IV: To incorporate changes in the Treasury Financial Manual clarifying the availability of funds for investment. b. Chapter VI: (1) (2) (3) (4) (5) (6) (7) Paragraph le, page VI-3, has been revised to clarify the differences, both in definition and in funding, between a property record unit and a retirement unit. Paragraph if(2), page VI-5, has been revised to delete alterations from the plant and capital equipment funding category. Paragraph lf(3)(a)~, page VI-6, has been revised to include alterations in the expense funded category. Paragraph lg(4), page VI-11, has been revised to clarify the distinction between alterations and betterments and make the changes consistent with DOE 4700.3, GENERAL PLANT PROJECTS, of 9-16-91, and the Acting Chief Financial Officer’s (CFO’S) interim guidance on funding of alterations, of 12-31-91. Paragraph lg(5), page VI-11, has been revised to establish consistency with DOE 4700.3 and the Acting CFO’S interim guidance on funding of alterations. Paragraph 2h, page VI-19, has been revised to delete alterations and the last sentence from the general plant projects definition to establish consistency with DOE 4700.3 and the Acting CFO’S interim guidance on funding of alterations.

Paragraph 3k(2), page VI-26, has been revised to establish consistency with the Acting CFO’S interim guidance on funding of alterations. m DISTRIBUTION: INITIATED BY: All Departmental Elements Office of Chief Financial Officer I 2 DOE 2200.6A Chg 1 4-13-93 3. ~ILING INSTRUCTIONS. a . J/emove Paue w -Ins e r t Paae vii and viii 1-7-93 vi i. . . Vlll IV-1 and IV-2 1-7-93 IV-1 IV-2 IV-2a (and IV-2b) VI-3 thru VI-6 1-7-93 VI-3 thru VI-6 VI-6a (and VI-6b) VI-9 thru VI-12 1-7-93 VI-9 VI-10 thru VI-10b VI-11 VI-12 VI-19 and VI-20 1-7-93 VI-19 VI-20 VI-20a (and VI-20b) VI-25 and VI-26 1-7-93 VI-25 VI-26 b. After filing the attached pages, this transmittal may be BY ORDER OF THE SECRETARY OF ENERGY: @ A“r “ LINDA G. SYE Acting Director of and Management Dated 4-13-93 :-7-93 1-7-93 4-13-93 1-7-93 4-13-93 1-7-93 1-7-93 4-13-93 1-7-93 4-13-93 4-13-93 1-7-93 1-7-93 1-7-93 4-13-93 discarded. Administration * . — 4-13-93 DOE 2200.6A Chgl (5) Portfolio Management Practices . . . . . . . . . . . . . . . IV-5 4. Recording Investments IV-5 a. Acquisition of Inve~trne;t; : : : : : : : : : : : : : : : : : : : : IV-5 b. Interest Accruals IV-5 Amortization of Prerni~m~ &d Di~c&;t; : : : : : : : : : : : : : : IV-5 :: Redemption of Investments Iv-6 5. Department of the Treasury Repor\i\g” R~q~i;erne~t\ “ : : : : : : : : : : IV-6 CHAPTER V - INVENTORIES (Reserved) CHAPTER VI - PLANT AND CAPITAL EOUIPMENT 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-1 a. Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-1 b. Applicability . . . . . . . . . . . . . . . . . . . . . . . . . . VI-1 Policy . . . . . . . VI-1 i Capitaliz;t;o; &;t&;a” : : : : : : : : : : : : : : . . . . . . . VI-2 e. Property Record Unit Concept . . . . . . . . . . . . . . . . . . . VI-3 f. Guidelines for Distinwishinq Plant and Capital Equipment Expenditures from Ope~ating Expenditures .“ . I 9“ Accounting for Maintenance, Repairs, Alterat” and Betterments . . . . . . . . . . . . . . (1) Repair . . . . . . . . . . . . . . . . (2) Maintenance I (3) Preventive Mai;~en;n\e” : : : : : : : : (4) Alteration . . . . . . . . . . . . . . (5) Betterments h. Plant and Equipment”C~a;g&” : : : : : : : : . . . . . . . . . . . . . ens, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-5 VI-10 VI-10 VI-10a VI-10a VI-10a VI-10a VI-12 (1) Construction Work {n Progress VI-12 (2) l);~)~~~ion, Dismantling, and Rem&&l” ~os~s” aid ;al;age” “ “ “ VI-12 (3) Abandoned ~r~j~c~s” : : : : : : : : : : : : : : : : : : : : : VI-12. Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . VI-13 2. A&al ProDertv . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-14 a. b. c. d. e. f. {“ .. Y k. 1. Defi’nit{ons . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Real Property (2) Related Personal” ~rope;~y “ : : : : : : : : : : : : : : : : : Real Property Type Accounts Financial Controls Over Real ;r;p;r~y” : : : : : : : : : : : : : : PurchaseofReal Property . . . . . . . . . . . . . . . . . . . . Leasing of Real Property Distinguishing Construction”a;d”F~b;i;a;i;n “A&;v;t~e~ %m” “ “ “ Research and Development . . . . . . . . . . . . . . . . . . . . . (1) Research and Development Activities (Expense Type) . . . . . (2) Construction and Fabrication Activities (Capital Type) . . . Experimental and Demonstration Projects . . . . . . . . . . . . . General Plant Projects . . . . . . . . . . . . . . . . . . . . . . Existing Facilities Moved Because of Construction Activities . . . Closeout of Construction Projects . . . . . . . . . . . . . . . . Reporting Requirements Reconciliation of Real

VI-14 VI-14 VI-14 VI-14 VI-15 VI-15 VI-15 VI-17 VI-17 VI-18 VI-18 VI-19 VI-20a VI-20a . . . . . . . . . . . VI-21 k;pkr;y” : : : :: : . . . . . . . . . . . VI-21 Vertical line denotes change. vii DOE 2200.6A 1-7-93 3. Personal Property and Capital Equipment . . . . . . . . . . . . . . . VI-22 Definition . . . . . . . . . . . . . . . . . . . . . . . , , . . . v1_22 :: Capital Equipment Type Accounts VI-22 ● Financial Controls Over Capital E~u~p~e~t” : : : : : : : : : : : : VI-22 :: Equipment Acquired by Purchase . . . . . . . . . . . . . . . . . . VI-23 e. Equipment Acquired by Lease VI-23 f. Equipment Acquired by Constru;t~o~ : : : : : : : : : : : : : : : : VI-26 ~. Equipment Fabricated . . . . . . . . . . . . . , . . . . . . . . . vi-26 . Equipment Acquired by Transfer . . . . . . . . . . . . . . . . . . VI-26. Plant and Equipment Acquired by Foreclosure Processes . . . . . . VI-26 i: Property Acquired by Other Means . . . . . . . . . . . . . . . . . VI-26 k. Equipment Acquired for Research 1. VI-26 Capital Equipment Acquired Throug~ &“I~t&~g&~y”Agr~e~e~t” : : : VI-26 m. Property Belonging to Others . . . . . . . . . . . . . . , . . . , v1_27 n. Special Tooling and Test Equipment . . . . . . . . . . . . . . . . VI-28 o. Reporting Requirements . . . . . . . . . . . . . . . . , . . . . . vi-28 Reconciliation Requirements VI-28 4. ~&ernment-Owned, Contractor-Held ~r~p&\y” : : : : : : : : : : : : : : VI-29 Purpose & VI-29 Integrate~~o;t;a&&~ : : : : : : : : : : : : : : : : : : : : : : [ VI-29 Definition . . . . . . . . . . . . . . . . . . . . . . . . . vi-29 ; Financial Controls . . . . . . . . . . . . . . . . . . . . . VI-29 [1 3 Reporting Requirements . . . . . . . . . . . . . . . . . . . VI-30 4 Reconciliation Requirements . . . . . . . . . . . . . . . . VI-30 c. Offsite Nonintegrated Contractors . . . . . . . . . . . . . . . . VI-30 11 1 Definition . . . . . . . . . . . . . . . . . . . . . . . . . VI-30 Financial Controls . . . . . . . . . . . . . . . . . . . . . VI-31 : Reporting Requirements . . . . . . . . . . . . . . . . . . . VI-31 4 Reconciliation Requirements . . . . . . . . . . . . . . . . VI-31 ● 5. Conduct of Physical Inventories . . . . . . . . . . . . . . . . . . . VI-32 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-32 ;: Frequency . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-32 c. Reporting of Inventories . . . . . . . . . . . . . . . . . . . , . VI-32 6. Property Acquired Under Grants, Cooperative Agreements, and Special Research Contracts . . . . . . . . . . . . . . . . . . . . . . . . . , VI-33 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-33 :: Definitions VI-33 c. Reporting Req;i;e;e;t; : : : : : : : : : : : : : : : : : : : : : : VI-33 d. Reconciliation Requirements . . . . . . . . . . . . . . . . . . . VI-33 7. Depreciation . . . . . ~ . . . . . . . . . . . . . . . . . . . . . . . VI-33 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-33 :: Depreciation Base VI-34 c. Depreciation Method; : : : : : : : : : : : : : : : : : : : : : : : [1 VI-34 Unit Procedure for Computing Depreciation Expense . . . . . VI-34 ; Group Procedure for Computing Depreciation Expense . . . . . VI-34 3) Composite Depreciation Rates . . . . . . . . . . . . . . . . VI-35 d. Standard Service Lives and Field Element Depreciation Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-35 I

List of Standard Service Lives . . . . . . . . . . . . . . . VI-35 ; Revision to Standard Service Lives . . . . . . . . . . . . . VI-35 3 Adjustment to Accumulated Depreciation . . . . . . . . . . . VI-36 4 Field Element Depreciation Committees . . . . . . . . . . . VI-36 e. Recording Depreciation . . . . . . . . . . . . . . . . . . . . . . VI-36 (1) In Service . . . . . . . . . . . . . . . .-. . . . . . . . . VI-36 o 1-7-93 DOE 2200.6A a 1. INTRODUCTION. a. b. c. CHAPTFR IV INVESTMENTS PurDose. To establish policies and general procedures for the management of and accounting for all moneys received by DOE that are available for invest- ment in interest-bearing Department of the Treasury securities. Almlicability. The provisions of this chapter apply to all DOE elements that manage funds with investment authority. Investment authority is a legal right granted to a Federal agency, through congressional legislation, which autho- rizes the investment of cash balances in interest-bearing Department of the Treasury securities. Exceptions. This chapter does not apply to pension funds for contractor employees. 2. REQUIREMENTS for investments are as follows: a. Effectively manage investments from the critical investment planning process through the final redemption of the investment securities; b. Invest only non-Federal funds; a c . Limit investments to Department of the Treasury securities that are purchased through the Department of the Treasury, and not on the open market; d. Maximize return on investments within stated DOE or Department policies; e. Maintain sufficient liquidity to meet operational disbursement of the Treasury requirements; f. Record investment transactions on a timely basis, but not later than the end of the month in which the transactions occur; 9“ Maintain investment accounts on an accrual basis; h. Maintain subsidiary investment records as appropriate; i. Establish operating procedures to preclude overinvestment of funds; and j. Restrict initiation of investment activities to employees specifically delegated the authority to perform this function. IV-1 DOE 2200.6A Chg 1 Paragraph 3 4-13-93 3. _INVESTM FNT PROCEDURfi. a. Se neral. (1) (2) (3) Moneys available for investment are categorized as provided by law, legal judgments, or international agreements. Funds may not be invested before they are deposited, collected, and available to the Department of the Treasury. Generally, funds may be considered available 2 days after the date of deposit (the confirmed date on SF-215, “Deposit Ticket”). Howev- er, an exception to the 2-day policy applies to Automated Clearinghouse collections through the Federal Automated Lockbox Network or electronic funds transfers directly to the Department of the Treasury’s account at the Federal Reserve bank. Funds collected through these mechanisms are available to the Department on the settlement date of the funds transfer. As a matter of policy, only Department of the Treasury market-based special (MK) securities may be purchased as an investment. One exception to this policy is DOE’s investment in 6-month certificates of deposit, pursuant to the Minority Financial Institutions Deposit Program of the Office of Minority Economic Impact (MI-1). Under this program, a portion of the Petroleum Pricing Violation Escrow Fund is invested through desig- nated trustee banks in $100,000 certificates of deposit with minority financial institutions bearing interest at the prevailing 6-month Depart- ment of the Treasury bill rate. All funds deposited under this program are fully insured by either the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation.

An MK security is an issue identical in every respect, except for trans- ferability and composite price, to any marketable” Department of the Treasury issue being traded or sold in the Government securities market, specifically, Department of the Treasury l-day certificates, bills, notes, or bonds. These instruments are virtually risk free and generate reasonable rates of return. The following MK securities may be pur- chased: (a) llne-DaY Certificates. Department of the Treasury l-day certificates are used when funds of $1 million or more cannot be invested in longer term securities or when funds are required to meet immediate cash needs for a particular program. This investment mechanism is commonly referred to as “overnight investment,” since the funds invested on one day, plus the interest earned on that investment, are available for use the following business day. As with other MK ;;;;r]ties, Department of the Treasury Fiscal Service Form (TFS) “Investment Authorization and Schedule of Withdrawals and Credit~,” and TFS-1081-2, “Redemption Authorization and Schedule of Withdrawals and Credits,” support the investment and redemption, respectively, of the l-day certificates. Both documents are pre- pared by the Department of the Treasury. To properly execute investments in l-day certificates, information on daily receipts and disbursements, interest earned, funds realized from redemption of securities, and funds expended in the purkhase of securities must be collected and the amount available for investment must be calculated. IV-2 Vertical line denotes change. 1-7-93 DOE 2200. M Paragraph 3a(3)(b) (b) Bills. Department of the Treasury bills (T-bills) are purchased when funds beyond immediate needs are on hand (as a result of investment instruments maturing or significant receipts from the private sector) that will be required within the next 12 months. Although T-bills have maturity periods (from the date originally issued to the maturity date) of 3 months, 6 months, and 1 year, actual investments IV-2a (and IV-2b) 3a (3 )(b) IV-2a IV-2b) ,. I 4 - 1 3 - 9 3 D O E 2200.6A ChgZ Paragraph le(2) with the first expenditure for the qualifying asset and ends when the asset is substantially complete and ready for its intended use. Capital- ize interest costs as long as the following general conditions are met (interest expense on power investments is detailed in paragraph id(7)): (a) Expenditures for P&CE have been made, and (b) Activities that are necessary to get P&CE ready for its intended use are in progress. (6) Sensitive items that are susceptible to being taken for personal use or that are readily salable for cash-such as firearms, photographic equip- ment, tape recorders, calculators, and power hand tools–that do not meet the capitalization criteria should be charged as an operating expense and recorded in the property record system at acquisition cost for inventory traceability. No entries in the completed P&CE accounts are required. (7) Interest expense on the unpaid power investment is a required portion of the costs to be recovered by power revenues and therefore must be comput- ed and returned to the Department of the Treasury over the repayment life of the plant. Rates to be used in computing interest on investment shall be those officially established by law or administrative procedures pursuant to law. e. Pro~ertv Record Unit ConceDt.

I (1) Property record units are designed to establish divisions of the com- pleted P&CE accounts. Pro~ertv record units facilitate the recordina of changes to property accounts aid the ries with financial accounts. (2) A property record unit, sometimes ca” or equipment item, for example, a bu identified in the property records. units determines the manner in which reconciliation of physical inve~to- led a P&CE record unit, is a plant lding, selected to be continuously The selection of property record costs are assembled and recorded in the property records. A property record unit may be composed of one or more retirement units. In selecting the property record unit, consider- ation should be given to its use, relationship with other associated items, relative importance, frequency of anticipated property changes, and monetary value. Generally, $5,000 or more is considered as suffi- cient monetary value to justify maintaining continuing records of the property unit. A property record unit may be a functional unit consist- ing of an assembly of associated items, some of which are retirement units, such as a hydraulic extrusion press; a facility serving or de- signed to serve two or more other property record units, such as a control system or piping system; a continuous facility of which sections are retirement units, such as roads, walks, and paved areas; or a unit that is complete in itself, such as a spectrometer. Vertical line denotes change. VI-3 DOE 2200.6A Chg 1 Paragraph le(3) 4-13-93 (3) Retirement units are established for convenience in accounting for the replacements of major components of plant and equipment. ● (a) (b) (4) Each A retirement unit establishes a physical dividing line by which costs of major work related to plant and equipment are capitalized. Costs to extend the life of or replace the retirement unit shall be capitalized. All other costs related to the retirement unit shall be expensed. A retirement unit is a component of plant and equip- ment that is capitalized in a separate account and invariably eliminated from the plant and equipment accounts when removed, transferred, sold, abandoned, or demolished. There shall be a close coordination among the budget, accounting, engineering, project management, and technical staffs in the devel- opment and maintenance of retirement units. The development of retirement units shall take into consideration such factors as use made of the item, retirement history of identical or comparable items, and the monetary and physical relationship of the item to the associated property record unit. Although items identified as retirement units are capitalized in the accounting records, from a budgeting perspective, the substitution of a new retirement unit of essentially the same type and performance capabilities as the replaced retirement unit should be funded out of operating funds. However, the substitution of a new retirement unit having signifi- cantly improved and superior performance capabilities beyond those of the replaced retirement unit is considered a betterment and should be funded out of capital funds. field element or integrated contractor shall develop and maintain its own property record unit catalog or one that may serve all activities reporting to that element. Approval by the Head of the Field Element or

; a designee is necessary for new catalogs and revisions of sections of existing catalogs. DOE review and approval of property record unit addi- tions and deletions by contractors shall be done annually by the cogni- zant Field Element Chief Financial Officer (Field CFO). A property record unit catalog describes the property record units that DOE owns. It provides a basis for a common understanding as to the manner in which P&CE costs are assembled and recorded in the field and contractor P&CE records. The description of each property record unit is intended to provide sufficient information to identify the unit in the P&CE records and for physical inventory purposes. The retirement units applicable to each property record unit provide a basis for distinguishing between capital (P&CE) and expense charges. Samples of property record unit catalog entries appear as Attachment VI-2. A property record unit catalog should have the following principal features: (a) An explanation of the property record units, what they consist of, and the descriptions used and type of asset; (b) The manner in which the units are to be recorded in the property records, whether as individual items or as a group of similar items; ● VI-4 Vertical line denotes change. 4-13-93 DOE 2200.6A Chgl Paragraph lf(2)(b)2 (c) A list of the retirement units applicable to each property record unit; and (d) The current Departmental capitalization criteria. f. Guidelines for Distinwishinq Plant and Capital EauiDment Ex~enditures from operatina Ex~enditures. (1) Although operating expenditures and P&CE expenditures are now consoli- dated under the same appropriation, separate functional classifications are required and the distinction between operating and P&CE expenditures must be maintained at all levels of procuring, accounting, and reporting. (2) Consider the following two factors in determining whether an action should be classified as P&CE: the nature of the item to be purchased or constructed and the service life and cost of the item to be purchased or constructed. Budget and procurement procedures shall ensure that P&CE procurements are properly matched to corresponding funding ceilings. The various types of P&CE items may be categorized broadly as follows: (a) Plant. ~ includes land rights, depletable resources (minerals and timber), and improvements to land. J3u ildinqs include all structures, additions, or improvements to structures (but not normal maintenance). Construction includes all elements associated with construction in progress. !N ilitie~ include water and sewage systems; heating, cooling, and power systems; communications systems; and fire prevention - systems. (b) Cat)ital EauiDment. Heavv EauiDment includes all vehicles, railroad stock, processing or manufacturing machinery, shop machinery, reactor or accelerator machinery, and reserve construction machinery. $Decial and Scientific Eaui!lment includes medical, laboratory, and security equipment. /Wtomated Data Processing Eauit)ment includes computers, printers, cathode ray tubes, operating system software, and interface peripherals. e Vertical line denotes change. VI-5 4“13-93DOE 2200.6A Chg 1 Paragraph if(3) (3) The following are examples of costs that are expensed: (a) Plant_. ~ ~. Expense normal maintenance and repair, such as periodic vegetation control, repairs to sections of sidewalks, and roads that are less than a retirement unit.

~ ~uildinqs. Expense normal maintenance and repair, such as paint- ing, cleaning, and small repair jobs not resulting in an addi- tion, replacement of a retirement unit, or a betterment. Alter- ations are also expensed. ~ Construction. Expense service lives and that operations. (b) EcmiPment. demonstration plants that have 1 imited will not be used for actual production or I Expense equipment not meeting the capitalization criteria. Z Expense conceptual design, fabrication, testing, and reworking of prototype equipment subject to redesign as fabrication and testinq are performed. This usuallv amlies onlv to the first unit i; several ~ Expense testing design has been similar units are tfi be’acquired~ and reworking of prototype equipment for which established. (4) The appropriate funding source (operating or P&CE) can also be determined by relating funding needs to specific project activities as defined below: (a) Pre-Title I Activities are all activities taking place prior to the start of preliminary design. These activities are charged to operating expense whether they are performed by the architect or engineer or by the integrated contractor, and they include such activities as the following: ~ Siting and engineering studies conducted to establish project scope, feasibility, and need; ~ Conceptual design report (CDR) and a preliminary safety analysis report, if it is prepared as part of the conceptual design re- port; a Preparation of construction project data sheets; ~ Preparation of design criteria; ~ National Environmental Policy Act documentation preparation; and . VI-6 Vertical line denotes change. 1-7-93 DOE 2200. 6A Paragraph if(4) (b) E Formulation of quality assurance criteria and plans during the conceptual stage of design. (b) Title I Design is the preliminary stage of project design. In this phase, design criteria are defined in greater detail to permit the design process to proceed with development of alternate concepts and a Title I design summary. These activities are to be capitalized VI-6a (and VI-6b) . . , DOE 2200.6A 1-7-93 Paragraph lf(4)(g)3 g Providing input to construction progress reports and f Providing the required inspection and testing to compliance with the quality assurance plan. as required; ensure (e) Construction. All costs for construction equipment, material, labor, and overheads shall be capitalized, except as provided below: ~ When construction is perforlned by an integrated operating con- tractor, only the direct construction costs and the incremental indirect costs resulting from the contractor’s construction activity shall be capitalized. Indirect costs that will continue ● regardless of construction activity shall not be included in construction, but charged to operating expense. . ~ When construction is performed by DOE, all costs incurred related to the construction work. excent for DOE aeneral and (f) (9) administrative costs, shall be-capitalized. Construction Management typically includes the review and approval of construction packages, review and acceptance of construction test procedures, and control of field design change requests. The con- struction manager supports the construction contractor by furnishing items not provided in the bid package, such as security, temporary facilities, debris removal, and similar project requirements not included in the bid package. All costs associated with construction management shall be capitalized.

Project Management covers services provided by the integrated oper- ating contractor project manager and the Head of the Field Element’s dedicated DOE support staff beginning with Title I and continuing through the completion of construction. These activities are dis- tinguished from integrated operating contractor project support activities in that project management is by dedicated personnel per- forming duties related solely to the project. All costs associated with project management shall be capitalized, because the great majority of effort is expended during construction. Project manage- ment during the design phase of major projects or major system acquisitions authorized for design only is also capitalized. The following activities are examples of work included in the scope of project management: ~ Technical management and liaison with designers during Titles I, II, and III; ~ Coordination, including interface control during design and construction; ~ Maintenance and operation of scheduling, estimating, and project control systems during design and construction; VI-9 I DOE 2200.6A Chg 1 Paragraph lf(4)(g)3 * 4-13-93 Technical management and coordination of the construction manager and support staff; a Overall management and coordination of the activities of nondedicated project support personnel; Technical management of review and approval activities conducted by dedicated management personnel; Coordination of all aspects of the project; and Preparation, revision, and related activity in support of the final safety analysis report. . . (h) Pro.iect Surmort covers activities performed by the integrated oper- ating contractor for internal management and technical support of the project manager by nondedicated personnel. Project support shall be charged to operating expense. The following activities are illustrative of support services provided by integrated operating contractors: ~ Document control; Z Compliance audit of quality assurance, health physics, safety, and environmental requirements; and ~ Design review by nondedicated operating contractor personnel on ● an as-needed basis, including independent technical analysis, constructability review, life cycle cost comparisons, life safety review, health physics review, and code checks. (i) Starturi covers one-time costs incurred by the integrated operating contractor during the transition between the completion of construc- tion and operation of the facility. All such costs are charged to operating expense. They include the following: 1 Operations, planning, operator training, and operational readiness review; ~ Startup coordination, postacceptance testing, cost of startup chemicals, and related supplies; and a Salaries of startup personnel. 9. Accounting for Maintenance. ReDairs. Alterations. and Betterments. . . (1) i?eDair is the restoration or replacement of a deteriorated item of P&CE, such that it may be utilized for its designated purpose. The cost of repair is normally charged to an operating expense account and includes amounts for labor and associated supervision and materials, as well as indirect and other costs incurred in such repairs, but does not include o VI-10 Vertical line denotes change. 4-13-93 DOE 2200.6A Chg 1 Paragraph lg(5) a the costs to replace items of P&CE designated as retirement units. (Power marketing administrations should refer to publications and studies on utility plant service lives.)

(2) Maintenance is the recurring day-to-day work that is required to maintain and preserve P&CE in a condition suitable for it to be utilized for its designated purpose. It differs from repair in that it is normally work to correct wear and tear before major repair is required, and it Is usually less involved than repair work. Maintenance work is typically charged to an operating expense account. (3) Preventive Maintenance is the utilization of periodic inspections, adjustment, lubrications, and minor repairs to plant property for the purpose of maintaining its useful life and reducing the frequency and magnitude of breakdown repairs. Preventive maintenance is a specialized category for the broader category of maintenance. Preventive maintenance is typically charged to an operating expense account. (4) Alteration is the work required to adjust interior arrangements or other physical characteristics of an existing property record unit so that it may be more effectively adapted to or utilized for its designated pur- pose. It does not result in a betterment to the property record unit. The following are examples of alterations: (a) Removal or installation of interior walls for purposes of rearrang- ing the layout of an office building, and the incidental heating and ventilation ducting system modifications that do not significantly extend the capacity of the system. (b) Constructing a door or passage through an interior structural wall. (c) Installation of new lighting fixtures that do not significantly increase the lumens emitted but may result in energy or maintenance savings. (5) Betterments are improvements to P&CE which result in better quality, higher capacity, or an extended useful life, or work required to acconnno- date regulatory and other requirement changes, and are capitalized. Determining when and to what extent an expenditure should be treated as a betterment requires the exercise ofjudgement. When a minor item is replaced in each of a number of similar units, the effect of the replace- ment as related to each unit, rather than to the cumulative costs, is the proper basis for determining whether or not a betterment is effected. Although a particular project may meet the characteristic of a better- ment, if the capitalization criteria are not met or the improvement added is insignificant, then the project should be expensed. Listed below are various terms which are conunonly used to describe various categories of betterments. Vertical line denotes change. VI-10a D O E 2200.6A Chg I 4 - 1 3 - 9 3 Paragraph lg(5) (a) I (a) (b) (c) I Cons ructt iotl is the erection, installation, or assembly of a new ● plant facility; the addition, expansion, improvement, or replacement of an existing facility; or the relocation of a facility. Construc- tion includes equipment installed in and made part of the facility and related site preparation, excavation, filling and landscaping, or other land improvements, and the design of the facility. Exam- ples of improvements under this category include the following types of work: Replacing standard walls with fireproof walls Installing a fire sprinkler iystem in a space not protected with a sprinkler system; Replacing utility system components with sign- capacity components, for example, replacing a with a 300-ton chiller; and that was previously ficantly larger 200-ton chiller Converting the functional purpose of a room, for example, converting an office into a computer room.

Conversion is a major structural revision of a facility that changes the functional purpose for which the facility was originally designed or used. Replacement is a complete reconstruction of a plant record unit ● which has deteriorated or has been damaged beyond the point where its individual parts can be economically repaired. If the item replaced is a retirement unit, its original costs (including instal- lation cost) are removed from the P&CE accounts and the cost of the newly installed item (including installation cost) is added to the P&CE accounts. VI-10b Vertical line denotes change. 1-7-93 NOTE: The text previously on this page has been shifted to pages VI-10a and VI-10b. . . DOE 2200.6A VI-11 DOE 2200.6A Chg 1 Paragraph lh 4-13-93 I h. Plant and EguiDment C-. (1) construction Work in Proaress. The account Construction Work in Progress includes costs of additions and retirements of P&CE that are in progress and are being accumulated during the acquisition or construction period. The acquisition cost of construction work in progress shall be closed to the completed P&CE accounts when the equipment and facilities are placed in service (that is, beneficial occupancy) even though the entire project is not financially completed. The acquisition cost of items being retired shall be closed to the appropriate accumulated depreciation account when items are actually disposed of. All costs that relate to P&CE changes in progress and the cost of unconsumed construction materials, supplies, and temporary construction facilities shall be included in the account. Detailed account- ing records shall be maintained for the following (when work is performed under cost-type contracts, the detailed accounting records for each project or job shall be further subdivided to facilitate cost control and to make entries to P&CE accounts and continuing property records): (a) Each construction project or job, including undistributed construction costs, for example, construction materials and supplies, construction equipment, and temporary facilities, and (b) Each type of capital equipment. (2) .Demolition. Dismantling. and Removal Costs and Salvaqe Credits. Removal costs shall be accounted for as Construction Work in Progress when the removal is in connection with an authorized construction project or an equipment project and when one of the following conditions is met: (a) Costs are incurred when it is economical to salvage or reuse items, (b) The removal is necessary for health and safety considerations, and (c) Contractual agreements require removal. (3) Pba dmd Prmeets. Project costs shall include thencancellation of all or part of a contract or manufacture, or assemble an item of P&CE. These costs incurred because of purchase order to procure, costs, less any salvage . . VI-12 Vertical line denotes change. 4-13-93 DOE 2200.6A Chg 1 Paragraph 2h(3) connected with the construction of a full-scale plant and Is expected to operate only as a pilot plant until the full-scale plant is constructed, in operation, and accepted for its intended purpose. The costs of designing and constructing all buildings or structures in which experi- ments or demonstrations are to be conducted, as well as the related auxiliary or supporting facilities, such as utility systems, roads, and walks, shall be included in the construction project and capitalized when completed.

(3) Capital equipment required to support experimental and demonstration projects should be treated as capital equipment not related to construc- tion unless it can also be reasonably expected to be consumed or de- stroyed during the experiment or demonstration. For example, capitalize all shop and laboratory equipment, measuring devices, fans, pumps, motors, and other individual items or assemblies of equipment associated with or used to support the experiment but not built into the experiment. The costs of that equipment shall be recorded in the completed P&CE accounts when purchased, regardless of source of funding. (4) When it is not easy to ascertain the actual costs of items of P&CE that were budgeted and accounted for under the operating expenses appropria- tion that were subsequently capitalized, those items shall be recorded in the completed P&CE accounts by using estimated amounts approved by the Head of the Field Element. h. General Plant Pro.iects. (1) (2) (3) General plant projects are miscellaneous minor new construction projects of a general nature, the total estimated costs of which may not exceed the congressional authorization of $1.2 million per project. General plant projects are necessary to adapt facilities to new or improved production techniques; to effect economies of operations; and to reduce or eliminate health, fire, and security problems. These projects provide for design or construction (or both); additions; and improvements to land, buildings, and utility systems, and they may include construction of small new buildings, replacements or additions to roads, and general area improvements. By their nature, general plant projects are difficult to detail in advance and are subject to changing priorities and requirements, emer- gencies, and contingencies arising after the budget submission that may force changes in scope, schedule, and the order in which these projects are undertaken. General plant projects moneys are not intended to be used in incremental segments to construct larger facilities. Care should be exercised to ensure that each specific project is a discrete, standalone entity. Each project is to result in the delivery of a complete and usable facility. In this regard, only general plant projects funds can be used to make the facility complete and usable. Vertical 1 ine denotes change. VI-19 DOE 2200.6A 1-7-93 Paragraph 2h(4) (4) When design is funded in one fiscal year and construction is funded in the next fiscal year, every effort shall be made to complete the construction as ● early as possible. The cognizant field element must maintain controls V 20 2200.6A 2h(4) • (qOZ-IA Pup) ~OZ-IA (1) (1) • • 1-7-93 DOE 2200.6A Paragraph 2j (1 ) to ensure compliance with the $1.2 million limitation and incremental funding prohibitions. i. Ex1stjng Fac111ties Moved Because of Construction Activ1ties.

(1) Moving existing permanent ut11ity lines and roads because of construction activ1t1es 1nvolves the retirement by removal or abandonment of eXisting faci11t1es and the addition of new faci11ties. Such new facilities shall be budgeted and accounted for as a cost of the new project. Removal costs shall be charged to Construction Work in Progress-Status Code for Removal Costs. The book cost of materials reused in the new project shall be credited to Construction Work in Progress-Status Code for Salvage Credits, and charge the assigned cost to the new project. The book cost of other materials salvaged shall also be credited to Construc­ tion Work in Progress-Salvage Credits, and this cost shall be charged to inventory or other appropriate accounts. Removal costs and salvage credits shall be closed from these accounts to the appropriate accumulat­ ed depreciation account. The retirement loss (the difference between the new amount closed to the accumulated depreciation account and the depre­ ciat10n accrued on the retired facilities to the date of retirement) shall be charged to Plant and Capital Equipment Adjustments-Extraordinary Losses (B&R YN). The book cost of the retired facilities shall be closed directly to the appropriate accumulated depreciation account. (2) Costs of moving temporary construction facilities shall be charged to Construction Work in Progress accounts and distributed to all projects served by the temporary facilities. (See DOE 2200.1, COST ACCOUNTING, Chapter I, "Costing.") j. Closegyt of Construction Projects. (1) The total cost of a line item or general plant project or an operative unit within a project shall be closed to the completed PiCE accounts from the Construction Work in Progress account as close to the date of benef1- cial occupancy as possible, but generally not to exceed 6 months after each operative unit is placed in full service. Project management staff shall notify finance staff of beneficial occupancy of a facility. Each principal element of a construction project, such as a building, a parcel of land, or a warehouse, that has been physically and financially com­ pleted except for the settlement of minor outstanding claims shall be closed to the completed PiCE accounts on the basis of actual total cost incurred to date. To maintain project historical data, significant costs incurred in the settlement of claims outstanding at the time the project is closed, and claims arising after an element has been closed, shall be recorded in the Construction Work in Progress account when paid, but subsequently closed to Completed Plant and Capital Equipment. Necessary adjustments to the original costs of the related property record units previously recorded shall be made. Insignificant costs that arise later may be written off through PiCE adjustments. Costs of individual ele­ ments closed during the year may be initially assigned to asset type Unclassified Plant and . VI-20a (and VI-20b) 1-7-93 DOE 2200.6A Paragraph 3e(8)(b) acquisition at the time of del very to DOE. The lease shall be recorded . 4 at-the lower of the property’s fai; value or the computed present value of the minimum lease payments by a nonfund debit to the completed P&CE account and an offsetting nonfund credit to a liability account (Deferred Credits). The difference between the total lease payment and the amount recorded as the capital lease is interest. A portion of each lease payment shall be allocated to interest expense, and the balance of the payment shall be applied to reduce the lease liability. To compute the amount allocated to interest expense, the same interest rate shall be applied to compute the present value of minimum lease payments. Sumnary Class Code 64, P&CE Acquisition from Capital Leases, shall be used for the nonfund asset write-on accounting entry.

(6) For those capital leases funded from P&CE appropriations, the monthly cost accrual for the lease should be debited to budget and reporting program 35 or 39 as appropriate on a fund basis in the Construction Work in Progress account. At the same time, a nonfund adjusting entry should be made, crediting this same account using sunnnary class code 64, and debiting the Deferred Credit account. (7) In instances where capital leases are funded from the operating expenses appropriations, debit the full monthly cost accrual for the lease to an operating expense program on a fund basis. At the same time, a nonfund adjusting entry shall be made, crediting the same operating expense program and debiting the liability account Deferred Credits for a propor- tionate share of the amount capitalized. In this situation, legal counsel shall ensure that the restriction on the use of operating appro- priations for equipment purchases as stated in the Energy Reorganization Act of 1978, Public Law 9S238, 2-2&78, section III(b)(2), is not violated. Under section III(b)(2), operating appropriations, pursuant to an authorization act, may not be used for any major item of equipment, including collateral equipment, if the estimated cost to DOE exceeds $2,000,000, unless such item has been previously authorized by the appropriate committees of the House of Representatives and the Senate or the appropriate conunittees do not object to the purchase of the item under procedures outlined in section III(b)(2). (8) Capital equipment acquired by capital lease shall be depreciated. Depre- ciation shall be computed and recorded based upon either the expected service life of the leased property or the term of the lease, as appro- priate. The property shall be depreciated over its estimated service life if the criterion used to classify the lease as a capital lease was either of the following (in all other cases, the property shall be depreciated over the term of the lease): (a) Ownership of the property is to be transferred to DOE by the end of the lease term, or (b) The lease contains a bargain purchase option. VI-25 DOE 2200.6A Chg 1 4-13-93 Paragraph 3f f. 9* h. 1. $. k. I 1. VI-26 ~iDment Acauired bv Construction. If an individual item of capital equip- ment related to a construction or fabrication activity is an integral part of that activity or is related to, designed for, or specially adapted to the functional or productive capacity of that activity, then the costs to pur- chase, fabricate, and install such an item shall be included in the cost of the activity. fiuiDment Fabricated. The costs of items fabricated in a contractor’s shop or by scientific personnel in a laboratory shall be capitalized, and those costs shall be recorded in the Completed Plant and Equipment account. Actual costs may be used whenever possible, but an estimate approved by DOE management may be used when necessary. QuiDment Acauired bY Transfer (See DOE 2200.9B, MISCELLANEOUS ACCOUNTING, Chapter VII, “Transfers,” for detailed instructions regarding the accounting for P&CE transfers between DOE offices, between DOE integrated contractors, and between DOE and other Federal agencies.) plant and mu iDment Acauired bv Foreclosure P ocesses Property acquired by foreclosure processes shall be recognized at !ts appr;ised value. The differ- ence between amounts due and costs incurred shall be recognized and assets recorded at the appraised value as a current period loss or gain.

ODertv Acau”red by O her Meanst Property acquired by donation, device, for- feiture, or confiscation shall b; recorded at the estimated fair value plus any costs incurred to place the property in use. Ipment Acauired for Research. (1) The cost of property purchased or fabricated for use in research may be charged to operating expense if the property is not expected to have a service life of more than 2 years in essentially its original form, even though it may meet the monetary and physical criteria that would other- wise require it to be accounted for as a P&CE addition. (2) The cost of altering and rearranging property used in research laboratories should be charged to operating expense. JaD ital EauiDment Acauired Throuah an Interagency Agreement . (1) An interagency agreement is a written agreement entered into between two Federal agencies that specifies the goods to be furnished or tasks to be accomplished by one agency in support of the other. Interagency agree- ments are typically procurement instruments that are written to clearly specify goods to be furnished or work contemplated, reporting require- ments, procurement and patent policy, and ● rrangements for transfer of funds. The Director of the Office of Procurement and Assistance Manage- ment, or designee, has the authority to execute interagency agreements obligating DOE funds. Vertical line denotes change. . .