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United States
Department of
Agriculture

March 20, 2000 

Farm and Foreign
Agricultural
Services

MAP 00004
FMD 00004
Foreign
Agricultural
Services		 SUBJECT:

TO:		 Requirements and Procedures Pertaining to Advances

All MAP Participants and FMD Cooperators
 
1400
Independence Ave., SW
Stop 1042
Washington. DC
20250-1042		 BACKGROUND: The Office of Inspector General recently conducted an audit of several USDA agencies to assess their implementation of prescribed cash management controls. Several general observations were made with regard to advances provided to nonprofit organizations (NPO=s) under the MAP and FMD:

1) some NPO=s did not maintain the funds in interest bearing accounts;
2) some NPO=s did not return interest earned on the advance to the U.S. Treasury; and
3) some NPO=s did not return the unexpended funds within the 90 day time period. The purpose of this notice is to clarify the requirements and procedures pertaining to advances made under the MAP and FMD.
 
  POLICY:
  • The MAP and FMD generally operate on a reimbursable basis. However, a MAP participant may request an advance payment not to exceed 40 percent of its approved generic budget, and an FMD cooperator may request a special advance payment for an impeding large cost item.
  • Advances should be limited to the minimum amounts needed and should be requested as close as is administratively feasible to the actual time of disbursement by the MAP participant or FMD cooperator.
  • MAP participants and FMD cooperators must deposit and maintain advances in insured, interest-bearing accounts, unless such accounts are prohibited by law or custom of a host country.
  • MAP participants and FMD cooperators are required to fully expend all advances and return all interest earned by advances within 90 calendar days of receipt. By the end of the 90th calendar day, the MAP participant or FMD cooperator must have returned all interest earned by an advance, plus any unexpended balance, by submitting either:
    1) an offsetting reimbursement claim(s);
    2) a check to CCC or FAS, as appropriate; or
    3) a combination thereof.

NOTE: MOS will issue a separate notice on operating advances under the FMD.
  ACTION: This notice is effective March 20, 2000
  KENT D. SISSON
Director
Marketing Operations Staff

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Last modified: Tuesday, November 04, 2003