Standard Operating Procedures Financial Management of Funds other than EPA Operational Funding Water Division EPA Region 6 Version 1 May 2018 Director, Water Division Date ------- Financial Management of Funds Other Than EPA Operational Funding Purpose The purpose of the Financial Management of Funds Other than EPA Operational Funding Standard Operating Procedures (SOP) is to establish internal controls and to ensure resources are used efficiently and effectively for the purpose for which they were appropriated and authorized. In the event that areas of concern arise as they relate to appropriate use of the funds, EPA Region 6 Water Division (6WQ) will solicit guidance from legal counsel. Controls will include: 1) procedures for accurate payroll (if applicable), travel and other expenses charging; 2) monthly review of budget reports; 3) increased communication between managers, staff and the funds coordinators/financial integrity coordinator (FIC); and 4) participation in Appropriations Law training. Also included in this SOP are procedures for obtaining reimbursable authority and processing Interagency Agreements when necessary. This SOP serves as an over-arching SOP in conjunction with individual program specific SOPs. As part of continuous process improvement efforts by the 6WQ, this SOP will be reviewed annually and updated as needed. Updated versions will require DD signature and date. 1. Procedures for Accurate Payroll, Travel and Other Expenses 1.1 Salaries 6WQ will work with the Management Division's Budget Office annually to identify appropriate staff eligible to charge to the accounts and set up work force codes in the People Plus system. Standards will be set up to determine how many FTE can be charged to the account. 1.2 Travel A Pre-Clearance Form requiring two approval signatures will be used to ensure that personnel are charging the appropriate travel and payroll codes and that mistakes do not occur. (See sample form in Appendix A) Step 1: Prior to any Travel Authorization being approved, a Pre-Clearance form is filled out. Signatures must be obtained from the traveler's supervisor and the funds coordinator/(FIC). The funds coordinator or FIC may be different people depending on the program or funds involved. Step 2: The requester uploads the approved Pre-Clearance form into the Travel Authorization (TA) Document in Concur. ------- Step 3: The Divisional Travel Funding Authorizer will not fund the TA without the approved pre-clearance form and the correct accounting information included. 1.3 Other expenditures If funds are to be used for contracts, Interagency Agreements or other vehicles, approval must be received from the Water Division Director to ensure that appropriations laws are not being violated. 2. Monthly Review of Budget Reports Monthly financial report(s) for payroll and travel accounts will be reviewed and evaluated for accuracy to ensure appropriate charges are made to the accounts. (See sample reports in Appendix A) 6MD's budget office will generate the payroll report and will provide the payroll report to the project officer (PO) or FIC. The travel report will be generated by the PO or FIC and will be distributed to 6WQ Managers (Section Chief, Branch Chief, Division Director). Discrepancies or concerns will be addressed immediately with the Budget Office and staff involved. 3. Increased Communication Increased communication will be attained through the sharing of financial reports with management, escalating issues when and as they arise, and status briefings when necessary. 4. Appropriations Law Training Managers and staff associated with the program and use of non-EPA operational funds will attend Appropriations Law Training when available through webinars. Refresher courses should be attended at least biennially. Division Director or Deputy will track and ensure manager and staff training is complete. 5. Reimbursable Authority If the funds are not EPA funds (ex: CWPPRA, FEMA, etc.) reimbursable authority is required in order to receive and expend the funds. EPA receives the funds through several mechanisms such as a Mission Assignment (MA) from FEMA or a Military Interdepartmental Purchase Request (MIPR) from the Corps of Engineers. An Interagency Agreement (IA) may be required in order to expend the funds. To request reimbursable authority, 6WQ completes a Reimbursable Authority Request Form and emails it to the Budget Office and copies the Water Division Administrative Officer, financial integrity coordinator and supervisor. R6 Budget Office will reply with the approval. If an IA is required, the approval must be attached to an IA decision memorandum. 6. Processing an IA ------- The IA Project Officer will request the line item budget and scope of work for the IA. Once the budget and scope of work is developed, the Project Officer will follow the current EPA procedures for processing reimbursable IAs. The reimbursable authority approval and scope of work should be attached to the decision memorandum. Current EPA procedures and guidance for IAs can be found at: http://intranet.epa.eov/ogd/ia new/main/DirectivesClearanceVersion.pdf. ------- Appendix A - Examples of Forms and Reports 1. People Plus Workforce Codes 2. CWPPRA Pre-Clearance Travel Form 3. Payroll Report 4. Account Report 5. Reimbursable Authority Request Form ------- |