1 eloccs training: operating fund payments public housing financial management division office of...
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eeLOCCS Training: LOCCS Training: Operating Fund PaymentsOperating Fund Payments
Public Housing Financial Management DivisionOffice of Public and Indian Housing
US Department of Housing and Urban DevelopmentJanuary 7, 2002
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IntroductionIntroduction
• PHAs must use eLOCCS (electronic Line of Credit Control System) to drawdown operating subsidy
• eLOCCS replaces the paper form HUD-52721 and is a quicker and more accurate way to request funds
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Previous Method: Previous Method: Establishing ObligationEstablishing Obligation
• FO approves form HUD-52723, Operating Fund Calculation of Operating Subsidy, and sends to Fort Worth Accounting Center
• Fort Worth Accounting Center enters obligation from form into the Program Accounting System (PAS)
• LOCCS will automatically retrieve information from PAS
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Previous Method: Previous Method: Requesting PaymentsRequesting Payments
• PHA submitted form HUD-52721, Direct Disbursement Payment Schedule Data, as part of operating subsidy eligibility package
• FO reviewed paper form, approved predetermined payment schedule, sent to Fort Worth Accounting Center
• Subsequent revisions followed same procedures
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Previous Method: Previous Method: Program AreaProgram Area
• A67P, the original LOCCS Operating Subsidy program area code, was query only for FOs and PHAs
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New Method: New Method: Establishing ObligationEstablishing Obligation
• Same as Previous Method:– FO approves form HUD-52723
– Fort Worth Accounting Center enters obligation into PAS
– LOCCS retrieves information from PAS
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New Method: New Method: Requesting PaymentsRequesting Payments
• PHAs will use internet to access eLOCCS for query and drawdown purposes
• FOs will review request only if it exceeds threshold edits
• Payments requested as needed so no need for revisions
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New Method: Program AreasNew Method: Program Areas
• OFND, the LOCCS program area code for Operating Fund Program, allows query and drawdown capabilities for PHAs and query and review for FOs
• A67P, the previous code, is still valid but only has historic data
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New Method: New Method: Budget Line Items (BLIs)Budget Line Items (BLIs)
• Two BLIs were established for OFND:
– BLI 1000 – Operating Subsidy
– BLI 2000 – Retained Disbursement
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New Method: New Method: Budget Line Items (BLIs)Budget Line Items (BLIs)
• BLI 1000 – Operating Subsidy:
– PHAs can only drawdown funds from BLI 1000
– Obligation amount from PAS will automatically populate this BLI
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New Method: New Method: Budget Line Items (BLIs)Budget Line Items (BLIs)
• BLI 2000 – Retained Disbursement
– PHAs can not drawdown funds from BLI 2000
– If necessary to retain portion of obligation, FO can move amount to BLI 2000
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New Method: DeobligationNew Method: Deobligation
• If funds are deobligated, amount first taken from BLI 2000
• If amount retained in BLI 2000 not enough, funds then withdrawn from BLI 1000
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New Method: Budget PeriodNew Method: Budget Period
• Previously, LOCCS A67P automatically assumed PHA had 12-month budget
• OFND will now calculate budget periods using fiscal year beginning (FYB) and fiscal year end (FYE) dates
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New Method: DrawdownNew Method: Drawdown
• PHA may drawdown funds as frequently as once per day
• FOs should encourage PHAs to drawdown multiple times per month as funds are needed
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Advantages of Advantages of eeLOCCSLOCCS
• Most PHAs already use eLOCCS for other PIH program areas which eases transition
• Eliminates form HUD-52721 (other forms in operating subsidy eligibility package remain same)
• Provides flexibility in requesting funds
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Payment TransitionPayment Transition
• Payments scheduled for disbursement through 12/31/02 were picked up by LOCCS on 12/27/02 and disbursed as scheduled
• Payments scheduled for disbursement after 12/31/02 were moved into the undisbursed balance category in eLOCCS for PHAs to drawdown
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Payment Transition Payment Transition (continued)(continued)
• As of 12/30/02, all PHAs must use eLOCCS to drawdown operating subsidy funds
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Accessing Accessing eeLOCCSLOCCS
• Only accessible to PHAs (FOs can monitor activity through LOCCS)
• Accessed through Real Estate Assessment Center’s (REACs) firewall at www.hud.gov/offices/reac/index.cfm
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Accessing eLOCCS Accessing eLOCCS (continued)(continued)
• “Getting Started Guide” available at www.hud.gov/offices/cfo/finsys.cfm
• Each PHA should have Secure System Coordinator who can assign LOCCS link to Secure Systems ID
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VouchersVouchers
• PHAs will request funds using OFND Voucher HUD-50080
• Voucher on HUD forms at www.hudclips.org/sub_nonhud/html/forms.htm
• PHA must have hard copy signed by Executive Director and retained for PHA’s records before requesting funds
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Threshold EditsThreshold Edits
• Two threshold edits regulate maximum drawdown amounts:– Per month calculated threshold– Cumulative calculated threshold
• If funds requested in given month exceed both edits, subject to FO review
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Per Month Calculated Threshold Per Month Calculated Threshold (Threshold edit 1)(Threshold edit 1)
• To calculate, must identify:– Subsidy amount. Same as obligation in LOCCS– # months in budget period. Calculated using FYB
and FYE
• Calculation:– (Subsidy amount) (# months in budget period)
• Example:– PHA has 12-month budget– Threshold = subsidy amount 12
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Request Compared to Per Request Compared to Per Month Calculated ThresholdMonth Calculated Threshold
• Total amount that would be disbursed during the given month (including current request) is compared to the per month calculated threshold
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Cumulative Calculated ThresholdCumulative Calculated Threshold (Threshold edit 2)(Threshold edit 2)
• To calculate, must identify:– Per month calculated threshold. Threshold edit 1– # months into budget period. Calculated using FYB and
date disbursement will be made
• Calculation:– (Per month calculated threshold) (# months into budget
period)
• Example:– PHA is 4-months into its budget period– Threshold = per month calculated threshold 4
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Request Compared to Request Compared to Cumulative Calculated ThresholdCumulative Calculated Threshold
• Total amount that would be disbursed to date during the PHA’s current budget period (including current request) is compared to the cumulative calculated threshold
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Threshold ExampleThreshold Example
• PHA has $120,000 subsidy amount and 12-month budget
• Per month calculated threshold = $10,000 ($120,000 12)
• PHA requests following amounts…
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Threshold Example (continued)Threshold Example (continued)
• Month 1: $10,000 No Review– Does not exceed per month calculated threshold
of $10,000 so system does not consider cumulative calculated threshold
• Month 2: $8,000 No Review– Same reason as Month 1
• Month 3: $10,000 No Review– Same reason as Months 1 & 2
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Threshold Example (continued)Threshold Example (continued)
• Month 4: $12,000 No Review
– Failed threshold edit 1:
$12,000 request exceeds per month calculated threshold of $10,000
– Passed threshold edit 2:
Total amount disbursed of $40,000 ($10,000 + 8,000 + 10,000 + 12,000) will not exceed cumulative calculated threshold of $40,000 ($10,000 4)
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Threshold Example (continued)Threshold Example (continued)
• Month 5: $14,000 FO review Request exceeds both edits
– Failed threshold edit 1:
$14,000 request exceeds per month calculated threshold of $10,000
– Failed threshold edit 2:
Total amount disbursed of $54,000 ($10,000 + 8,000 + 10,000 + 12,000 + 14,000) will exceed cumulative
calculated threshold of $50,000 ($10,000 5)
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Threshold Example (continued)Threshold Example (continued)
• Month 6: $10,000 No review
– Passed threshold edit 1:
$10,000 request does not exceed per month calculated threshold of $10,000
– No need to consider cumulative calculated threshold since threshold edit 1 was not exceeded
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Threshold Example Threshold Example (continued)(continued)
Month Request Review ? Total to date
Month 1 $10,000 No reviewPassed edit 1
$10,000
Month 2 $8,000 No reviewPassed edit 1
$18,000
Month 3 $10,000 No reviewPassed edit 1
$28,000
Month 4 $12,000 No reviewFailed edit 1
Passed edit 2
$40,000
Month 5 $14,000 ReviewFailed edit 1
Failed edit 2
$54,000
Month 6 $10,000 No reviewPassed edit 1
$64,000
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Notification of ReviewNotification of Review
• If request requires FO review, eLOCCS will indicate to PHA when voucher has been sent for FO review
• PHA should call and/or email FO
• FO should monitor Q10 screen in LOCCS, Outstanding Vouchers for Review
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Automatic ReviewAutomatic Review
• Automatic review is a function that requires every request submitted by a PHA to go for FO review
• When can automatic review be used? – FOs should only flag troubled PHAs under
detailed review
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Approval or Rejection of RequestsApproval or Rejection of Requests
• Guideline:
– Refer to payment schedule from previous year
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OFND Access for FOOFND Access for FO
• All Financial Analysts must have “Field Office Administration” access to OFND and “Query” access to A67P
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OFND Access for FOOFND Access for FO
• Financial Analysts who already have “Field Office Administration” access to programs in LOCCS:
– Amend Form HUD-27054-A. Request “Field Office Administration” access to OFND and “Query” access to A67P
– Existing users may fax forms to (202) 708-4350, attention CFO security
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OFND Access for FOOFND Access for FO• New financial analysts and financial
analysts with query access only:
– Prepare form HUD-27054-A. Request “Field Office Administration” access to OFND and “Query” access to A67P
– Complete and submit a Limited Background Investigation (LBI) package if have not had LBI in past 15-years
– Mail form to CFO Security Office
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OFND Access for FOOFND Access for FO • Limited Background Investigation (LBI)
package contains:
– SF-85P (95 edition only), Questionnaire for Public Trust Positions
– SF-87, Fingerprint Chart
– OF-306, Declaration of Federal Employment (only needed if never had NACI)
– Fair Credit Reporting Authorization
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OFND Access for FOOFND Access for FO
• New financial analysts and financial analysts with query access only must mail forms to:
HUD Headquarters
CFO Security Office
Attn: LOCCS Security Officer—Rm 3114
PO Box 23774, SW
Washington, DC 20026-3774
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Interim Coverage for FOInterim Coverage for FO
• FO staff members with “Field Office Administration” access can submit an amended form HUD-27054-A adding OFND. These are:
– Staff with “FO Administration” access to the Capital Fund Program (CFP) in LOCCS
– eLOCCS coaches with “FO Administration” access to any program
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OFND Access for PHAsOFND Access for PHAs
• PHA staff members who already have Capital Fund Program (CFP) access in eLOCCS will automatically have OFND access with same rights
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OFND Access for PHAsOFND Access for PHAs
• If the PHA staff member needs eLOCCS access:
– Submit form HUD-27054. Request OFND access and forward to the local FO. The form can be downloaded through www.hudclips.org/sub_nonhud/html/forms.htm
– FO should then mail form to CFO Security Office
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QuestionsQuestions
• You will have opportunity for questions following demonstration
• If further questions arise, email Funding_&[email protected]