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FOREST SERVICE HANDBOOK
Portland, Oregon
TITLE 6509.11k - SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
R6 Supplement No. 6509.11k-93-6
Effective July 15, 1993
POSTING NOTICE. Supplements to this handbook are numbered consecutively.
Check the last transmittal sheet received for this handbook to see that the above
supplement number is in sequence. If not, order intervening supplement(s) at once
from the Information Center. Do not post this supplement until the missing one(s)
is received and posted. After posting, place the transmittal at the front of the title
and retain until the first transmittal of the next calendar year is received.
The last R-6 Supplement to this handbook was 6509.11k-93-5 (6509.11k,4043).
Document Name
Superseded New
(Number of Sheets)
6509.11k,44-46
6
Page Code
45.22--1 through --3
2
Digest:
44.01 - Provides reference to authority for advance payments of tuition.
45 - Describes authorities that allow the Government to pay interest.
45.4 - Provides guidance on payment of EEO settlement agreements.
46.22 - Clarifies Contractor/COR/Contracting Officer signature requirements for
contract payments and the forms required to make interim and final contract
payments. Provides latest rules for calculating interest, updates example for
computation of interest on contract claims, and provides reference to current
interest rates.
46.22a - Provides definition of partial and progress payments.
46.22b - Clarifies direction on withholding payments.
46.92a - Revises direction on Government's immunity from paying state and local
taxes, increases the $10 limit to $15, and clarifies when taxes on lodging may
properly be avoided.
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46.94 - Provides list of Employer Identification Numbers assigned by the Internal
Revenue Service.
/s/ John E. Lowe
JOHN E. LOWE
Regional Forester
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FSH 6509.11k - SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
R6 SUPPLEMENT 6509.11k-93-6
EFFECTIVE 07/15/93
CHAPTER 40 - PAYMENTS
44 - ADVANCES TO GRANTEES, COOPERATORS, AND CONTRACTORS.
44.01 - Authorities.
6. Training. Advance payments may be made for tuition fees. Refer to
Federal Acquisition Regulations 48 CFR Chapter 1, 32.403 and 32.404, and the
Imprest Fund Handbook, FSH 6509.13b, section 701.23d.
45 - PERSONAL SERVICE PAYMENTS.
Payment of Interest. There must be specific legislative authority or contractual
provisions to enable the Government to pay interest, such as:
1. 31 USC 3901 - Prompt Payment Act (Calculated & paid by NFC)
2. 40 USC 258a - Declaration of Taking
3. 41 USC 611 - Contract Disputes Act
4. In accordance with 51 CG 251, contracts entered into which contain
provisions for the payment of interest provide the basis for the payment of interest.
5. Public utilities that have published rate schedules which provide for the
payment of interest also provide the Government a basis for paying interest on late
payments.
Interest is calculated for the fractional portion of the year based on the actual
number of days late divided by 365 days per year (or 366 days during a leap year).
This formula applies when some other formula is not specified by statute or contract
provision. For example, the payment of interest on timber sale provision C4.251 is
on a monthly basis rather than a daily basis. Refer to 46.22, item 1, for an example
of calculating interest on a Contract Disputes Act claim.
45.4 - Payment of Claims.
Equal Employment Opportunity (EEO) claims, such as wrongful discharge claims,
discrimination complaints, and so forth, which result in a settlement agreement
made by a duly authorized settlement officer, may be paid for the amount cited in
the settlement agreement. It may include back pay, attorney fees, or other
appropriate relief as determined by the settlement officer. The settlement
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agreement shall serve as the basis for processing or certifying payment. The
certifying officer's responsibility is limited to determining proper appropriation
availability and does not include review of, or concurrence with, the merits or
amount of the settlement.
46 - NONPERSONAL SERVICE PAYMENTS.
46.2 - Contracts as Basis for Payments.
46.22 - Contract Payments.
Contractor invoicing is encouraged. For all but the final payment, the contractor
should present the payment invoice directly to the designated paying office. Fax
copies are acceptable for interim payments. The contractor's signature is not
required on interim PROGRESS payment invoices if the Forest Service prepares the
invoice, but the contractor's signature is required on interim PARTIAL payment
invoices. (Refer to 46.22a for definitions of partial and progress payments.) The
Contracting Officer's Representative (COR) must approve interim payment invoices
to acknowledge goods or services received. Redelegation to other than the COR may
be authorized in writing by the Contracting Officer.
For final payments, the invoice should be labeled as "Final Invoice." The contractor
and contracting officer must both sign the final invoice, regardless of whether the
Forest Service prepares the invoice or the contractor provides the invoice. The
contractor shall be requested to sign a contract release for all construction and
service contracts. The contractor is required to sign a contract release if the
contract contains the standard construction payment clause (FAR 52.232-5) or if
another contract release provision is included in the contract. A certificate of final
inspection must also be completed and signed when required by the terms of the
contract. A closing letter from the contracting officer is optional and not required to
consummate final payment.
1. Interest charges. Contract claims against the Government under the
Contract Disputes Act (CDA), PL 92-41, are subject to interest charges. In
accordance with FSH 6309.32, Federal Acquisition Regulations, section 52.232-17,
compute interest on delinquent procurement contract billings using the Prompt
Payment Act (PPA) interest rate at simple interest on the unpaid principal until
paid. The date the claim is considered paid is defined as the date on the Treasury
check.
Contracting Officers should coordinate with the Budget and Finance Officer to
determine how long to allow for the payment process, (which should usually be 10
days from the date certified), for the Treasury check to be issued. The Contracting
Officer can then calculate the amount of interest due and include it in the amount
approved for payment of the claim. Once the Contracting Officer has determined
the amount of the approved claim, including the amount of interest based on the
projected payment date, the Certifying Officer may rely on this amount as being the
final amount due and no subsequent adjustment to the payment should be made for
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payments that, for some reason, are paid before or after the estimated payment
date used in the Contracting Officer's interest calculations.
The PPA interest rate is revised semi-annually. If interest is due for more than a 6month period, use the rate for each 6-month period rather than using one rate for
the entire time. Use the actual number of days for each portion of 6-month periods
and a 365-day year (366 during leap year) for calculating days of interest as shown
in the following example. FPR Bulletins in FSH 6309.31 contain the appropriate
interest rate for each 6-month period and a summary of PPA interest rates to use
for payments under the CDA are located in R-6 Supplement to FSM 6534.22a.
Assume a $10,000 contract claim was received on June 16, 1992 and the
Contracting Officer determines on March 2, 1993 it is payable in full, plus interest.
After adding 10 days to allow time for the payment to be certified and the check to
be issued, interest would be calculated through March 11, 1993 as follows:
06/16-06/30/92:
$10,000 x 6.875% x
15 days
366 days
= $ 28.19
07/01-12/31/92:
$10,000 x 7.0% x
6 months
12 months
= $350.00
01/01-03/11/93:
$10,000 x 6.5% x
70 days
365 days
= $124.67
Total Interest Payable
$502.86
2. Premiums Paid - Miller Act Performance and Payment Bonds--Fixed-Price
Construction Contracts. FSH 6309.32, FAR 52-232-5, AGAR 452.232-74 (Feb 1988)
provides direction and authority for payment to the contractor of the total
premiums paid by the contractor to obtain required Miller Act performance and
payment bonds. This payment shall be made together with the first progress
payment due after the contractor has fulfilled three conditions: (1) furnished the
bonds - this condition is automatic in that when bonds are required, the Contracting
Officer does not issue a Notice to Proceed until they are received; (2) furnished
evidence of full payment to the surety company of the costs of the bonds; and (3)
submitted a request for such payment.
The following guidelines and directions for implementing this payment to the
contractor should be given to and used by all COR's and others responsible for
initiating and processing construction contract payments:
a. Make certain the three conditions enumerated above have been met.
b. On the next Contract Payment Estimate and Invoice, FS-6300-30, include
the statement "Payment for Miller Act bonds requested by the Contractor and as
authorized by the contract," and show the total amount paid by the contractor for
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the performance and payment bonds for the contract. This entry must be shown on
all subsequent payment invoices.
c. On the final payment invoice, or the last payment invoice where the
amount to be paid will exceed the cost of the bond paid to the contractor, include
under "Deductions" that amount previously paid the contractor for the bond and
insert the statement "To adjust for prior payment to the contractor of Miller Act
Bond costs" under "Remarks."
46.22a - Partial Payments. Where supply items, services, or construction work is
priced separately, or partial deliveries are in fact accepted prior to acceptance of the
contract as a whole, payment for the accepted portions is a partial payment
subject to interest penalties for late payment.
Progress payments, on the other hand, are payments for contract work which may
or may not be completed, but has not been accepted. Example; Construction
contract for road surfacing. Rock has been crushed and half the road has been
surfaced, but none of the work is accepted before the project is complete. Any
payment as work progresses would be a progress payment. Only the final
payment, after contract acceptance, is subject to interest penalty for late payment.
46.22b - Withholding Payments. The government cannot garnish money due a
contractor for a third party, but may "set off" per R-6 Supplement to 40.31.
46.9 - Payment of Taxes.
46.92a - Government's Immunity. In the interest of economy and reduced
paperwork, the Government shall not exercise its assertion of immunity or an
exemption to a particular State or local tax of less than $15. On payments where
State and local taxes exceed $15, deduct the tax unless it is determined the cost to
deduct the tax exceeds the amount of tax assessed.
Employees in travel status have the right to ask for lodging tax exemption only in
the cities or states specified in the Hotel/Motel Discount Section of the Federal
Travel Directory. The locations presently exempt in Region 6 are Washington
County, the City of Portland, the City of Eugene and Lane County, Oregon. (GSA
inadvertently omitted the City of Eugene and Lane County, but is expected to re-list
it in the Federal Travel Directory in the future). Employees traveling to OTHER
locations in Region 6 may be offered lodging rates without tax by the lodging
facility, but employees must not solicit rates without tax, nor should they provide
tax exemption certificates at these locations since the lodging facility is still
responsible to pay the tax to the taxing authority.
However, if lodging accommodations are purchased via government purchase order,
such as for fire accommodations or seminar/conference/training site
accommodations, the Government is entitled to lodging tax exemption at all
locations in Region 6 since the procurement is in the name of the Government,
rather than the employee.
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46.94 - Reports to Taxing Authorities of Payments Made for Services Provided.
The Employer Identification Numbers for Region 6 units which have been assigned
by the Internal Revenue Service are:
Colville NF
Deschutes NF
Fremont NF
Gifford Pinchot NF
Malhuer NF
Mt Baker-Snoqualmie NF
Mt Hood NF
Ochoco NF
Okanogan NF
Olympic NF
Rogue River NF
Regional Office
Siskiyou NF
Siuslaw NF
Umatilla NF
Umpqua NF
Wallowa-Whitman NF
Wenatchee NF
Willamette NF
Winema NF
91-1120829
93-0772846
93-0772847
91-1120831
93-0772849
91-1120833
93-0772850
93-0772851
91-1120843
91-1113643
93-0772853
93-0386945
93-0772854
93-0772856
93-0772857
93-0772859
93-0772860
91-1120846
93-0772861
93-0772862
Columbia River Gorge National Scenic Area 93-0386945
When a unit has a change in address, notify:
Internal Revenue Service
Ogden, Ut 84201.