2409.15_30 Page 1 of 13 FOREST SERVICE HANDBOOK BOISE NATIONAL FOREST (REGION 4) BOISE, ID FSH 2409.15 – TIMBER SALE ADMINISTRATION HANDBOOK CHAPTER 30 – CHANGES IN STATUS OF CONTRACTS Supplement No.: r4_boise_2409.15-2006-1 Effective Date: August 16, 2006 Duration: Effective until superseded or removed Approved: DAVID D. RITTENHOUSE Forest Supervisor Date Approved: August 1, 2006 Posting Instructions: Supplements are numbered consecutively by Handbook number and calendar year. Post by document name. Remove entire document and replace with this supplement. Retain this transmittal as the first page of this document. The last supplement to this Handbook was 2409.15-97-1 to chapter 40. New Document(s): 2409.15_30-2006-1 13 Pages Superseded Document(s): 2409.15-96-1 (8/16/96) 11 Pages Digest: 38.12 This is a technical supplement issuing Forest material in new format using FSH template. Provides Forest-wide standards and procedures for timely closure of timber sales. BOISE SUPPLEMENT 2409.15-2006-1 EFFECTIVE DATE: August 16, 2006 DURATION: Effective until superseded or removed 2409.15_30 Page 2 of 13 FSH 2409.15 – TIMBER SALE ADMINISTRATION HANDBOOK CHAPTER 30 - CHANGES IN STATUS OF CONTRACTS 38.12 – Records Audit District Resource Assistant/Clerk shall ensure completeness of timber sale contract records (chapter 14.1 of WO amendment to this handbook) and associated documents for an audit of the records for closure. For SO authority timber sales, the District's sale folder may be sent to the SO for consolidation. TSA Timber Sale Closure Audit Checklist (Exhibit 01) shall be used to ensure that all requirements have been checked prior to closure. Date each item as it is completed. The District Resource Assistant/Clerk will be responsible for completing the audit form and will notify others with responsibilities of deficiencies. The Forest Resource Assistant and Timber Sale Accounting Coordinator will assist with problems and perform final audit review. Timber sales shall be audited and closed within 90 days of contract termination. Exceptions may be approved through the Forest Contracting Officer. Claims or litigation may preclude this requirement. The following instructions and standards coincide with Exhibit 01: 1. Final Inspection Report. The Sale Administrator will make a final field inspection report on the sale. In addition, the Forest Representative has the authority/responsibility to accept final work on an inspection report or letter and must be marked "FINAL". 2. Scaled Sales a. Truck Ticket and Frequency Accountability - Audit to be sure all unused books, stubs, and frequency cards (if applicable) are returned, and all used tickets have been accounted for in the Region 4 Automated Scaling System and/or Load Register. Check with Sale Administrator if there is any question. Used haul tickets may be destroyed when properly accounted for and documented. Ensure Log Ticket Control Register is properly filled out and/or Tickets Issued Report(s) is checked before destroying tickets. The proper form for destroying tickets is AD-112. Used and partial books must be returned to the Forest Measurements Specialist for disposal. Retain scale tickets with closed records. Closed timber sales must be retained for 6 years. Retain all final monthly audit, summary, and volume computation reports with records. b. Hammer and Paint Brands Cancelled - Cancel hammer and paint brands for the timber sale by notifying the Forest Measurement Specialist of contract closure. BOISE SUPPLEMENT 2409.15-2006-1 EFFECTIVE DATE: August 16, 2006 DURATION: Effective until superseded or removed 2409.15_30 Page 3 of 13 FSH 2409.15 – TIMBER SALE ADMINISTRATION HANDBOOK CHAPTER 30 - CHANGES IN STATUS OF CONTRACTS c. Check For All Statements of Account - On all sales, retain the first and last synopsis and all pertinent printouts, i.e., all monthly statements of account, quarterly adjustment and worksheets. Verify that all expanded volume was processed through TSA ensuring that all volume was processed in the correct quarter and/or adjustments made. d. Quarter-end Adjustment, Escalated Sales - On both Scaled and Payment Unit sales that are ESCALATED, process closure only after the end of the last quarter in which there was hauling. This allows the TSA system to adjust the stumpage price before the final billing. e. Removed and Scaled Dates in TSA - On SCALED sales, enter REMOVED and SCALED dates (use FS-6500-188) (shows on the synopsis). This should be done when final scale has gone through the TSA system. You do not have to wait until closing the sale; but be sure all volumes and volume adjustments are in. These dates must be entered to close in TSA. f. Changed Revised Quantity to Match Final Volume Cut - When the scaled date is entered, TSA will automatically change the revised quantity to match the actual volume cut. This action will set effective and ineffective purchaser road credit. g. Remove Projections From TSA - Zero out all projections in TSA with an M for Modification (use FS-6500-176). Remember, figures remain the same unless changed, so enter a zero (see chapter 24.21 of this handbook). If all projections on Statement of Account have 00.00, this has already been done. 3. Payment Unit or Tree Measurement Sale. a. Hammer and Paint Brands Cancelled - Cancel hammer and paint brands for the timber sale by notifying the Forest Measurements Specialist of contract closure. b. Released, Cut, and Accepted Dates in TSA - On LUMP SUM/PAYMENT UNIT sales, ensure that all payment units are Released, Cut, and Accepted in TSA (see chapter 23.32 of this handbook; use FS-6500-188). Verification can be made using most current synopsis. Include written documentation such as an inspection report and/or FS-2400-18, Payment Unit Release, signed by the Sale Administrator to release payment units. Utilize BNF-2400-9, Payment Unit Tracking form, in addition to inspection report to document partial cuts on payment units and revised payment unit quantities. Acceptance on payment units must be documented on timber sale inspection reports. The sale cannot be closed in TSA until all three (release, cut, and accept) dates are entered. BOISE SUPPLEMENT 2409.15-2006-1 EFFECTIVE DATE: August 16, 2006 DURATION: Effective until superseded or removed 2409.15_30 Page 4 of 13 FSH 2409.15 – TIMBER SALE ADMINISTRATION HANDBOOK CHAPTER 30 - CHANGES IN STATUS OF CONTRACTS 4. Specified Roads. a. All Purchaser Credits Established - For sales that include purchaser road credits, verify that all roadwork was completed. A check may be made by comparing total of purchaser road credit reports, plus or minus any cost adjustments with purchaser road credit contract limit. These totals must agree. If discrepancies are found, reconcile and make adjustments. Verify that all "ordered" design changes under provision C/CT5.254 have been processed through purchaser credit or appropriated funds. Based on the rarity and complexity of "ordered" design changes, consult with the Forest Resource Assistant/Forest Engineer for further assistance. b. Verification of Contributed, Cost Share, and Supplemental Funds - On the last Statement of Account, Contributed, Cost Share or Supplemental Funds Total to Date should equal Contributed Funds Limit (see Schedule of Items in timber sale contract). c. SBO - Small Business Option Requested by Purchaser - Roads Opted Back to the Forest Service - A timber sale that contains a purchaser road package $20,000 or greater and purchased by a small business (fewer than 500 employees, may contain provision C(CT)4.1 which allows the road package to be turned back to the Forest Service. Verify the amount stated in C(CT)4.1 has been collected on the latest Statement of Account under Other Road Fund Accounting. 5. Export Control. a. FS-2400-43, Certification of Nonsubstitution of Timber Purchased and Disposition of Domestically Processed and Exported Timber - Must be submitted with bid. For SO authority sales, Forest Resource Assistant will verify. b. FS-2400-46, Purchaser Certification of Timber Domestically Processed and Exported - This is sent to purchaser at time of sale award to be completed annually during the life of the sale as to the disposition of the timber (C/CT8.641). These forms must account for the disposition of the timber (sawlogs) harvested from the sale in the tributary area, including the volume of unprocessed timber the purchaser has sold, exchanged, or otherwise disposed of to another person. The District/SO will initiate final forms for their respective authority sales. c. BNF-2400-8, Disposition of National Forest Timber - Must be on file in the event the purchaser sells, exchanges, or transfers National Forest logs. BOISE SUPPLEMENT 2409.15-2006-1 EFFECTIVE DATE: August 16, 2006 DURATION: Effective until superseded or removed 2409.15_30 Page 5 of 13 FSH 2409.15 – TIMBER SALE ADMINISTRATION HANDBOOK CHAPTER 30 - CHANGES IN STATUS OF CONTRACTS 6. Trespass, Claims, Appeals - Verify with Contracting Officer any trespass, claims, or appeals have been resolved prior to closure. Ensure money was collected and moved into the proper management code in TSA. For example, if a timber sale has had a trespass fire, the charges would be collected in 870137 and moved to trespass management code (FS-6500-174 and FS-6500-186). Request special management codes through the District Support Services Supervisor or Forest TSA Coordinator. 7. Distribution of Stumpage Charges. a. Ensure the proper distribution of stumpage charges took place. Base value, above base value not covered by purchaser road credit, and cash recovery from purchaser road credit becoming ineffective must be paid for in cash (see section 7 on Exhibit 01). b. Notify District Silviculturist in advance of contract termination to allow opportunity for revision of K-V Plan. Verify the most current Salvage Sale Fund Plan and K-V Plan are in TSA. It is the District Silviculturist's responsibility to assess whether a FINAL K-V plan is needed, and revise this plan within 30 days of contract termination. 8. Distribution of Associated Charges. a. Associated Charges Collected - Multiply applicable volume hauled by rates in the contract and in any contract modifications. See C/CT5.411#, 412#, and 414# for Road Maintenance, A5 for Slash Disposal. Verify amounts collected in TSA. Watch for rate changes or quantity adjustments during the life of the sale. On Payment Unit sales, the total RM/SR deposit is by unit in C(T)5.415. Total slash deposits are in A(T)5c. Prior to closure on sales with co-op deposits such as surveillance and scaling deposits, verify balance of accounts with TSSA coordinator, then issue a refund voucher. b. Co-op Agreements - Ensure collection of money agreed to on FS-2400-16, Timber Purchaser's Request for Work. 9. Financial Audit Worksheet. This worksheet serves as the last comparison of values formulated from source documents, such as timber sale contract, modifications, paid bills for collection, quarterly volume computation reports, etc., to TSA. For example: Specie Volume PP DF 450 20 Base Value/MBF = 14.00 10.00 Grand Total Base Value Total 6,300.00 200.00 6,500.00 $6,500 should appear in the Base Value of the Cash Column on page 4 of the Timber Sale Closure Audit Checklist. BOISE SUPPLEMENT 2409.15-2006-1 EFFECTIVE DATE: August 16, 2006 DURATION: Effective until superseded or removed 2409.15_30 Page 6 of 13 FSH 2409.15 – TIMBER SALE ADMINISTRATION HANDBOOK CHAPTER 30 - CHANGES IN STATUS OF CONTRACTS For escalated sales, it is important to use quarter volume figures to determine above base values. 10. Disposition of Balances on Last Statement of Account. Based on adjustments during the audit, there may be a cash balance on the statement of account "Balance Forward to Next Statement". If purchaser requests the balance be TRANSFERRED to another sale, a request may be made on FS-6500-129, Transfer or Refund of Timber Sale Deposits or by letter. The form or letter needs approval. Then transfer the money in TSA only. If purchaser requests the balance be REFUNDED, prepare SF-1049, Public Voucher for Refunds. (Before transferring or refunding, be sure there is no additional timber payment due, or other charges pending.) 11. Bonds. a. Reduce Performance Bond - If all performance obligations have been completed and all volume has been removed, the purchaser may request a reduction in the performance bond. If the Contracting Officer approves, a letter must be sent with Contracting Officer's signature indicating the purchaser may replace current performance bond with another amount approved by the Contracting Officer. The surety must also get a copy of this letter. This does not entirely release surety and/or purchaser's obligations, just reduces the cost of carrying the bond. This is done only at purchaser's request. b. Refund Performance Bond and Release in TSA - Sales with a CASH performance bond require refund to the purchaser or transfer to another sale. To transfer money from one sale to another, coordinate request through Forest TSA coordinator for processing. For District sales, provide FS-6500-129 or a letter from the purchaser requesting the transfer. For coordination of SO authority sales, notify Forest Resource Assistant of cash balance. AD-742, Transfer and Adjustment Voucher, will then be processed by the Forest TSA coordinator. If refunding, a refund voucher must be processed. For sales covered by surety, a copy of the closure letter must be sent to the surety. Do NOT mention RELEASE of the performance bond. Simply state the contract is closed and the performance bond is no longer needed. Both types must be released from TSA (use FS-6500-196). Letters of Credit may be used for performance bond, if the expiration date of the Letter is 1 year past the sale termination date. Upon sale closure, return the Letter to the bank if no draft has been drawn against it. c. Notify SO to Release Blanket Payment Bond - Some purchasers guarantee payment for timber cutting with BLANKET payment bond (allocated for the Forest by SO). Notify the SO by phone or letter to remove the sale from the bond list and from TSA. A copy of the closure letter to the surety serves as notice of the sale's termination. BOISE SUPPLEMENT 2409.15-2006-1 EFFECTIVE DATE: August 16, 2006 DURATION: Effective until superseded or removed 2409.15_30 Page 7 of 13 FSH 2409.15 – TIMBER SALE ADMINISTRATION HANDBOOK CHAPTER 30 - CHANGES IN STATUS OF CONTRACTS 12. Final Closure Action. Obtain all necessary signatures on the audit form prior to writing the closure letter. A closure letter signed by the Contracting Officer must be sent to the purchaser, with copies sent to surety and SO. Send by Certified Mail. The SO will generate the closure letter for SO authority sales. The date of the letter is the official closure date from which the legal time length begins in which a claim may be made, therefore, the closure letter should be sent after both parties have met ALL obligations. Do NOT postpone sending letter for internal adjustments, such as moving money from NFF to K-V. Notify STARS coordinator when the sale is closed in TSA. BOISE SUPPLEMENT 2409.15-2006-1 EFFECTIVE DATE: August 16, 2006 DURATION: Effective until superseded or removed 2409.15_30 Page 8 of 13 FSH 2409.15 – TIMBER SALE ADMINISTRATION HANDBOOK CHAPTER 30 - CHANGES IN STATUS OF CONTRACTS 38.12 - Exhibit 01 Example of a Timber Sale Closure Audit Checklist Sale Name Contract No. Purchaser Sale Type 2400- Escalated Flat Rate SBA Instructions: Refer to FSH 2409.15 Timber Sale Administration Handbook, 38.12, Records Audit. Check and date as items are completed. 1. Final Inspection Report (BNF-2400-6) on file. Copy sent to SO. 2. Scaled Sales All Load Removal Permit books have been returned and documented. All Sample Scale Frequency Cards have been returned and verified. (Check with scalers on non-BCC sales.) All brands registered to the sale have been cancelled. *All Sample Scale loads have been verified. (Check audit and summary reports through the automated scaling program MONTHLY. *All scale tickets have been verified. (Check audit and summary reports against number of hard copies of scale tickets.) *All Volume Computation Reports have been processed through TSA Statement of Accounts. *All volume corrections/inputs have been processed through the TSA Statement of Accounts. All volumes/adjustments due to contract modification or agreement have been processed through the TSA Statement of Account. * ITEMS MARKED WITH PREPRINTED CHECKS ARE MONTHLY AUDIT ITEMS AND MUST BE AUDITED BY USING THE AUTOMATED SCALING SYSTEM AUDIT REPORTS. FINAL volume quantities have been entered on TSA (FS-6500-171) Card 0202, Fields 35-41. Revised volume on the synopsis agrees with the volume on the last Statement of Account. FINAL removal date and scale date have been entered on TSA (FS-6500-188, Card 9001, Fields 19-30). Warning – No additional volume can be entered on TSA. BOISE SUPPLEMENT 2409.15-2006-1 EFFECTIVE DATE: August 16, 2006 DURATION: Effective until superseded or removed 2409.15_30 Page 9 of 13 FSH 2409.15 – TIMBER SALE ADMINISTRATION HANDBOOK CHAPTER 30 - CHANGES IN STATUS OF CONTRACTS 38.12 - Exhibit 01--continued Projection block on last Statement of Account is set to Zero (FS-6500-176, Card 2001. Value to be hauled Estimated to be felled 10-day cut value 3. Down timber in the woods Cash billing outstanding Payment Unit Sale All brands registered to the sale have been cancelled. All units have been reported released, cut, and accepted (FS-6500-188, Card 0302. All volume adjustments have been processed (FS-6500-187 or FS-6500-188). Encumbrance block on the last Statement of Account is cleared of any listed units. Cash balance is $0.00 (except refund/transfer to be processed). 4. Specified Roads – Purchaser elected to construct the specified roads. Purchaser Credit Limit includes original limit plus/minus all cost adjustments. (The PRC “Contract Limits” under the Purchaser Credit Established must equal PRC “Total to Date”.) If not, PRC has not been accurately credited or cost adjustments have not been processed (see ENGINEERING REPRESENTATIVE). Ordered Design Change (payment met through purchaser or appropriated funds. FINAL road acceptance reports are on file for all roads. (Check in contract folder). FINAL purchaser road credit reports show 100 percent complete, 5 percent withholding released. Synopsis shows correct limit, “All specified roads accepted ‘as of’ date.” Supplemental/contributed funds totals to date equals funds limits (FS-6500-179). STATUS OF ROAD CREDITS WORKSHEET The Above Base Balance must be equal to or greater than the transferred out Purchaser Road Credit. If not, additional cash recovery is needed. Transferred OUT Credits are covered by remaining Cash Charged Above Base balance(s). are NOT covered, (PURCHASER MUST BE BILLED.) BOISE SUPPLEMENT 2409.15-2006-1 EFFECTIVE DATE: August 16, 2006 DURATION: Effective until superseded or removed 2409.15_30 Page 10 of 13 FSH 2409.15 – TIMBER SALE ADMINISTRATION HANDBOOK CHAPTER 30 - CHANGES IN STATUS OF CONTRACTS 38.12 - Exhibit 01--continued SBO – Small Business Option requested by Purchaser (See Recovery of Road Costs Block on TSSA). Engineer’s estimate was covered by cash above base value was NOT covered, $ 5. recovery necessary Export Control FS-2400-43 on file. FS-2400-46 on file for volume on contract. BNF-2400-8 on file (if applicable). 6. Trespass, Claims, Appeals There are no outstanding cases on the sale. All disputes have been resolved. 7. Distribution of Stumpage Charges For K-V and SSF - Check the latest plans against the Synopsis Collection Limits to make sure they agree (CHECK WITH DISTRICT SILVICULTURIST). Distribution of Cash Stumpage Charges block (Page 1 of last Statement of Account). Covers: Base value. Above base volume not covered by PRC. Cash recovery from ineffective PRC used/Transferred Out PRC. Small business option engineer’s estimate not covered by cash above base. Minimum distribution requirement total in principal accounts (NFF). 8. Distribution of Associated Charges All associated charges have been verified as correct. All suspense accounts have been cleared to other accounts, refunded. All interest, damages charged, are verified as correct. All late payments to the sale have been charged appropriate interest. BOISE SUPPLEMENT 2409.15-2006-1 EFFECTIVE DATE: August 16, 2006 DURATION: Effective until superseded or removed 2409.15_30 Page 11 of 13 FSH 2409.15 – TIMBER SALE ADMINISTRATION HANDBOOK CHAPTER 30 - CHANGES IN STATUS OF CONTRACTS 38.12 - Exhibit 01--continued 9. Financial Audit Worksheet Audit for purchaser credits and bills for collection: NOTE: (+)(-) are for column calculations only Cash Base Value Above Base Value Associated Charges brush disposal, surface replacement, erosion control, etc. Total Bills for Collection paid Total Cash Transferred In (Cash Corrections (+CC) Total Cash Transferred Out (Cash Corrections (-CC) Machine Language Changes (Enter opposite sign of action) Purchaser Credits/Cost Share Credits Total earned credits Total Transferred OUT credits Total Transferred IN, charged (+) $ (+) $ (+) $ XXX (-) $ XXX (-) $ (-) $ XXX XXX (+) $ XXX ( )$ ( )$ XXX XXX XXX BALANCES (using signs, calculate each column) Cash column – should be same balance As last Statement of Account CASH COLUMN Credit column – should be same balance As last Statement of Account PURCHASER CREDIT COLUMN (page 1) Purchaser Credits Cost Share Credits ( )$ ( )$ (+) $ (-) $ (+) $ BOISE SUPPLEMENT 2409.15-2006-1 EFFECTIVE DATE: August 16, 2006 DURATION: Effective until superseded or removed 2409.15_30 Page 12 of 13 FSH 2409.15 – TIMBER SALE ADMINISTRATION HANDBOOK CHAPTER 30 - CHANGES IN STATUS OF CONTRACTS 38.12 - Exhibit 01--continued 10. Disposition of Balances on Last Statement of Account Cash Balance or Refund Transfer Contract $ $ to the purchaser to Job Code or 11. Bonds All bonds have been released in TSA. Synopsis section is clear. Cash in lieu of bond Job Code Refund to purchaser (complete SF-1049 and submit to SO F&A through Contracting Officer. or Transfer to Timber Sale Contract Job Code BOISE SUPPLEMENT 2409.15-2006-1 EFFECTIVE DATE: August 16, 2006 DURATION: Effective until superseded or removed 2409.15_30 Page 13 of 13 FSH 2409.15 – TIMBER SALE ADMINISTRATION HANDBOOK CHAPTER 30 - CHANGES IN STATUS OF CONTRACTS 38.12 - Exhibit 01--continued 12. Bonds Audited by: Date Approved by: Sale Administration Date District Silviculturist Date Approved by: Forest Service Representative Date Approved by: Forest Silviculturist Date Approved by: Contracting Officer Closure letter to purchaser cc of closure letter to bonding company Final closure date - TSA (FS-6500-188, Card 9001, Fields 31-36 Date Date (if applicable)