Common use of Period of Availability of Federal Funds Clause in Contracts

Period of Availability of Federal Funds. 1. National Guard Operations and Maintenance agreements are funded with one year appropriations and, as such, State obligations may not be incurred against Federal funds for a specified year before or after the Federal fiscal year in which the funds were appropriated. State obligation means any action under State law or procedure requiring payment by the State. A representation by competent authority within a State that it obligated funds under State law may be relied upon (NGR 5-1/XXXX 63-101, chapters 12-1, 12-6, 32-1, and 32-6). 2. A CA shall be executed by the USPFO and the TAG prior to any request for reimbursement or advance payment. The State shall also have an approved Appendix covering each functional area for which the reimbursement or an advance is requested. The State shall not request reimbursement for any expenditures it made before the date that all required parties execute the MCA and the covering Appendices unless the MCA or appropriate Appendix expressly authorize expenditures made during the funding period, but prior to the date of final signature (NGR 5-1/XXXX 63-101, chapter 2-1). 3. Work or task performance must serve a bona fide need that exists in the fiscal year in which the work or tasking is issued; otherwise, a valid obligation is not accomplished. It is not intended that the rule of bona fide need of the fiscal year rule be construed to preclude lead time. Thus, where materials, for example, cannot be obtained in the same fiscal year in which they are needed, a provision for delivery in the subsequent fiscal year does not violate the bona fide need rule so long as the time intervening between placing of the order and delivery is not excessive and the work order is not for standard commercial items readily available from other sources. Bona fide need generally is a determination of the NGB activity and not that of the State performing the activity. The State shall prepare and the USPFO shall review and approve a bona fide need determination (NGR 5-1/XXXX 63-101, chapter 2-2b) and finding to reflect this need. A State performing the activity should, however, refuse to accept a work order if it is obvious that the work order does not serve a need existing in the fiscal year in which issued (NGR 5-1/XXXX 63-101, chapter 2-2). 4. Within 90 days after the end of the Federal fiscal year or upon termination of the CA, whichever is earlier, the State Military Department shall promptly deliver to the USPFO, as a representative of NGB, a final accounting of all funding and disbursements under the agreement for the fiscal year (NGR 5-1/XXXX 63-101, chapters 12-6 and 32-6). 5. If unliquidated claims and undisbursed obligations arising from the State’s performance of the agreement will remain 90 days after the close of the fiscal year, the State Military Department shall provide a detailed listing of uncleared obligations and a projected timetable for their liquidation and disbursement no later than 31 December. The USPFO shall then set an appropriate new timetable for the State Military Department to submit their final accounting. 6. Costs incurred in a fiscal year which are not disclosed by the State Military Department within 90 days of the end of the fiscal year, except costs associated with unliquidated claims and undisbursed obligations arising from the State’s performance of the agreement which the State Military Department has reported per paragraph 12-6c, shall not be eligible for reimbursement by NGB. The USPFO may extend the 90 day limit for good cause shown.

Period of Availability of Federal Funds. 1. National Guard Operations and Maintenance agreements are funded with one year appropriations and, as such, State obligations may not be incurred against Federal funds for a specified year before or after the Federal fiscal year in which the funds were appropriated. State obligation means any action under State law or procedure requiring payment by the State. A representation by competent authority within a State that it obligated funds under State law may be relied upon appropriated (NGR 5-1/XXXX 63-101, chapters 12-1, 12-6, 32-1, and 32-6). 2. A CA shall be executed by the USPFO and the TAG prior to any request for reimbursement or advance payment. The State shall also have an approved Appendix covering each functional area for which the reimbursement or an advance is requested. The State shall not request reimbursement for any expenditures it made before the date that all required parties execute the MCA and the covering Appendices unless the MCA or appropriate Appendix expressly authorize expenditures made during the funding period, but prior to the date of final signature (NGR 5-1/XXXX 63-101, chapter 2-1). 3. Work or task performance must serve a bona fide need that exists in the fiscal year in which the work or tasking is issued; otherwise, a valid obligation is not accomplished. It is not intended that the rule of bona fide need of the fiscal year rule be construed to preclude lead time. Thus, where materials, for example, cannot be obtained in the same fiscal year in which they are needed, a provision for delivery in the subsequent fiscal year does not violate the bona fide need rule so long as the time intervening between placing of the order and delivery is not excessive and the work order is not for standard commercial items readily available from other sources. Bona fide need generally is a determination of the NGB activity and not that of the State performing the activity. The State shall prepare and the USPFO shall review and approve a bona fide need determination (NGR 5-1/XXXX 63-101, chapter 2-2b) and finding to reflect this need. A State performing the activity should, however, refuse to accept a work order if it is obvious that the work order does not serve a need existing in the fiscal year in which issued (NGR 5-1/XXXX 63-101, chapter 2-2). 4. Within 90 days after the end of the Federal fiscal year or upon termination of the CA, whichever is earlier, the State Military Department shall promptly deliver to the USPFO, as a representative of NGB, a final accounting of all funding and disbursements under the agreement for the fiscal year (NGR 5-1/XXXX 63-101, chapters 12-6 and 32-6). 5. If unliquidated claims and undisbursed obligations arising from the State’s performance of the agreement will remain 90 days after the close of the fiscal year, the State Military Department shall provide a detailed listing of uncleared obligations and a projected timetable for their liquidation and disbursement no later than 31 December. The USPFO shall then set an appropriate new timetable for the State Military Department to submit their final accounting. 6. Costs incurred in a fiscal year which are not disclosed by the State Military Department within 90 days of the end of the fiscal year, except costs associated with unliquidated claims and undisbursed obligations arising from the State’s performance of the agreement which the State Military Department has reported per paragraph 12-6c, shall not be eligible for reimbursement by NGB. The USPFO may extend the 90 day limit for good cause shown.