Item 14 - Bureau of Reclamation Grant for Well 38

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Page 16 of 49 (1) The non -Federal entity must be paid in advance, provided it maintains or demonstrates the willingness to maintain both written procedures that minimize the time elapsing between the transfer of funds and disbursement by the non -Federal entity, and financial management systems that meet the standards for fund control and accountability as established in this part. Advance payments to a non -Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non -Federal entity in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non -Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. The non -Federal entity must make timely payment to contractors in accordance with the contract provisions. (2) Whenever possible, advance payments must be consolidated to cover anticipated cash needs for all Federal awards made by the Federal awarding agency to the recipient. (i) Advance payment mechanisms include, but are not limited to, Treasury check and electronic funds transfer and must comply with applicable guidance in 31 CFR part 208. (ii) Non -Federal entities must be authorized to submit requests for advance payments and reimbursements at least monthly when electronic fund transfers are not used, and as often as they like when electronic transfers are used, in accordance with the provisions of the Electronic Fund Transfer Act (15 U.S.C. 1693-1693r). (3) Reimbursement is the preferred method when the requirements in this paragraph (b) cannot be met, when the Federal awarding agency sets a specific condition per §200.208, or when the non -Federal entity requests payment by reimbursement. This method may be used on any Federal award for construction, or if the major portion of the construction project is accomplished through private market financing or Federal loans, and the Federal award constitutes a minor portion of the project. When the reimbursement method is used, the Federal awarding agency or pass -through entity must make payment within 30 calendar days after receipt of the billing, unless the Federal awarding agency or pass -through entity reasonably believes the request to be improper. (4) If the non -Federal entity cannot meet the criteria for advance payments and the Federal awarding agency or pass -through entity has determined that reimbursement is not feasible because the non -Federal entity lacks sufficient working capital, the Federal awarding agency or pass -through entity may provide cash on a working capital advance basis. Under this procedure, the Federal awarding agency or pass -through entity must advance cash payments to the non -Federal entity to cover its estimated disbursement needs for an initial period generally geared to the non -Federal entity's disbursing cycle. Thereafter, the Federal awarding agency or pass -through entity must reimburse the non -Federal entity for its actual cash disbursements. Use of the working capital advance method of payment requires that the pass -through entity provide timely advance payments to any subrecipients in order to meet the subrecipient's actual cash disbursements. The working capital advance method of payment must not be used by the pass -through entity if the reason for using this method is the unwillingness or inability of the pass -through entity to Agreement No. R22AP00352 Agreement Template Recipient Name: City of Santa Ana (0112021)