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Agency Review & Maximum Draw

The Agency Review Allows the agency to set a threshold to specify that requests at or above a certain dollar amount for selected accounts be forwarded for Agency Review. The threshold can apply to a single account, all the accounts for a single Recipient Organization, or all the accounts established by your agency. and Maximum Draw The maximum amount that can be drawn from an Account Detail over the life of the account. features were developed in ASAP.gov The web enabled ASAP application. to provide a mechanism for Federal Agencies to better control cash outlays for cash management purposes. These features support the agencies’ need to balance controlling cash outlays and ensuring compliance with grant/funding awards, with the Cash Management Improvement Act and Treasury / State One of fifty entities that are the United States of America.This also includes its territories. Agreements.

Purpose

Agency Review and Maximum Draw Amounts are recommended for use at a Federal Agency’s discretion for situations related to non-compliance with proper cash management and/or reporting requirements. Notification System generated message containing information regarding a specific action. must be sent to the Recipient The organization that is entitled to the funds. Organization prior to implementation.

• Federal Agencies are responsible for managing grant/funding programs. Since they have the responsibility of assuring compliance with good cash management practices, each Federal Agency Encompasses Federal Program Agencies including programs administration and funding. They are organizations that establish funds into ASAP accounts. will define the circumstances under which Agency Review and Maximum Draw Amounts are invoked. Consideration factors could include, but not be limited to, the dollar value of the grant award and the history of cash management performance by the Recipient and/or Requestor The individual user that initiates the payment request from an ASAP account. Organization.

• In addition, A Federal Agency may want to use these features when establishing a global or global control type account, as Payment Requestors will not be able to view the available balance The ASAP Available Balance shows the amount available for draw from an ASAP account. This may be equal to or less than the ASAP Account Balance. The available balance does not include return payments that are in a "frozen" state. on these type of accounts. If there is no Agency Review or Maximum Draw Limits, a payment requestor could possibly initiate a payment request for the available balance of the account.

• Both features are considered measures to be instituted as a last resort for grantees. Federal Agencies should have discussions with the Recipient and Requestor Organizations prior to any decision to place an account on Agency Review or Maximum Draw.

• When invoking Agency Review features, the Federal Agency must regularly and routinely log on to ASAP throughout the day to review payment requests.

Notifications

Federal Agencies must insure that Recipient Organizations receive notification 30 days prior to invoking Agency Review or Maximum Draw.

• The notice will include, at a minimum, the date the date the transaction was completed. of the notice, the specific reasons why the Recipient Organization will be placed on Agency Review, the date the Agency Review feature will be invoked, the name and address of the Federal Agency authorizing official, and the name and phone number of a Federal Agency contact.

• The notification will be sent to the primary contacts identified in the Recipient Organization and Payment Requestor profiles in the ASAP system Currently resides on the mainframe. .

• Recipient Organization appeals related to the decision should be in writing and addressed to the Federal Agency authorizing official.

• When Agency Review or Maximum Draw Amounts are invoked for an ASAP account A "pot of money" ; ASAP.gov automatically generates an immediate system notification delivered, via email, to the recipient organization advising that the Agency Review and/or Maximum Draw Amount feature is in effect. Any changes to an Agency Review or Maximum Draw Amount parameter will also generate an ASAP.gov notification delivered via email.

 CMIA Cash Management Improvement Act Implications

Federal Agencies who plan to use Agency Review and Maximum Draw Amounts shall be mindful of the Cash Management Improvement Act and regulations, the associated Treasury/State Agreements, grant award documents, the general financial positions of their recipients, and the relative fiscal impacts.

• Timeliness of reviews by Federal Agencies is critical in order to minimize payment delays for recipients and avoid CMIA interest liabilities. Federal interest liabilities will accrue if payment delays result from the use of Agency Review.

• States must submit A utility in ASAP.gov generally associated with a set of more than one enterable field. These fields may be user-specified selection criteria or fields filled in as part of an online transaction such as a payment request. By clicking 'Submit' the user sends the set of data elements for system action to advance directly to the next step in the business process flow. For example, the user may fill in a set of selection criteria and then 'submit' the criteria to retrieve the data. specific documentation to support all Federal interest liability claims resulting from the use of Agency Review and/or Maximum Draw Amounts.

 Time Frame The time Federal Agencies should review their decision to place Recipient Organizations under maximum draw and/or agency review every 90days to determine the need to continue.

Federal Agencies should review their decision to place Recipient Organizations under Maximum Draw and/or Agency Review every 90 days to determine the need to continue. If a Federal Agency decides to invoke these features for another 90-day period, it must notify the Recipient Organization at least 10 days prior to the end of each 90-day period.

Procedures to SET AGENCY REVIEW and MAXIMUM DRAW are available in the Accounts section of this Help system.