BOARD01632

• Board Meeting Date: 9/13/2004
• Description: ISF Section - Proposed Water Right Acquisition - Elkhead Reservoir Enlargement
• Board Meetings - Doc Type: Memo

9. PAYMENT METHOD (ReclamatIon 11/03)

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management systems that meet the standards in 43 CFR 12.60 or 43 CFR 12.921, as applicable; or
(3) has been converted to payment restrictions for non-compliance with the terms and conditions of
the agreement. Reimbursement is also the preferred method of payment for agreements involving
construction.

Electronic Funds Transfer -- Payments under this agreement will be made to recipients by electronic
funds transfer (EFT) unless the recipient qualifies for exemption from this payment method. Reclamation
utilizes the Automated Clearinghouse (ACH) Vendor Express payment system for EFT. Whether funds
are paid in advance or as a reimbursement, the actual payment will be made through Vendor Express.
Vendor Express allows the Government to transfer funds to a recipient=s financial institution along with
explanatory information regarding the payment.

Enrollment -- Upon award, recipients will receive a copy of the SF-3881, ACH Vendor/Miscellaneous
Payment Enrollment Form. This form is required to implement the Vendor Express system and to notify
Reclamation of any change or corrections to financial institution information.

Requesting Payments B Requests for advance or reimbursement may be made by the following
methods:

(1) SF-270, Request for Advance or Reimbursement B On a monthly basis, recipients may submit
an original and two copies of a properly certified SF-270 form to the address identified in Block 8,
page 1, of this agreement. For advance payments, this form may be submitted on a monthly basis, at
least two weeks prior to the date on which funds are required, and on the basis of expected
disbursements for the succeeding month and the amount of Federal funds already on hand.
Requests for reimbursement may be submitted on a monthly basis, or more frequently if authorized
by the GCAO. Requested funds are delivered to the recipient via ACH Vendor Express. This form is
available on the Internet at http://www.whitehouse.aov/omb/arants/Qrantsforms.html.

(2) SF-271, Outlay Report and Request for Reimbursement for Construction Programs B The
SF-271 shall be used for construction agreements paid by the reimbursement method, letter of credit,
electronic funds transfer, or Treasury check advance, except where the advance is based on periodic
requests from the recipient, in which case the SF-270 shall be used. This request may be submitted
on a quarterly basis, but no less frequently than on an annual basis. Recipients may submit an
original and two copies of a properly certified SF-271 form to the address identified in Block 8, page
1, of this agreement. This form is available on the Internet at
http://www.whitehouse.aov/omb/Qrants/arantsforms.html.

(3) Automated Standard Application for Payments (ASAP) B Recipients may utilize the
Department of Treasury ASAP payment system to request advances or reimbursements. ASAP is a
recipient-initiated payment and information system designed to provide a single point of contact for
the request and delivery of Federal funds. Once a request is made through ASAP, funds are
provided to the recipient either through ACH or Fedwire. Further information regarding ASAP may be
obtained from the ASAP website at http://www.fms.treas.aov/asap. Upon award, you will be
provided with information regarding enrollment in the ASAP system.

10.' REPORTING REQUIREMENTS AND DISTRIBUTION (Reclamation 11/03)

Failure to comply with the reporting requirements contained in this agreement may be considered a
material non-compliance with the terms and conditions of the award. Non-compliance may result in
withholding of payments pending receipt of required reports. denying both the use of funds and matching
credit for all or part of the cost of the activity or action not in compliance, whole or partial suspension or