Reimbursable Agreement with Private Sector with Payments-in-Advance

070.FFM.L3.02 Reimbursable Agreement with Private Sector with Payments-in-Advance
End-to-End Business Process: 070 Agree-to-Reimburse
Business Scenario(s) Covered
  • Reimbursable Agreement with Private Sector
  • Payment in Advance
  • Non-Government Source Funds Collection
  • Government Property Leased to Public
Business Actor(s)
Finance Office; Program Office; Private Sector Entity (PSE)
Synopsis
A reimbursable agreement is established between a federal agency (lessor) and a PSE (lessee) to lease federal office space. Per the agreement, the entire amount is paid in advance and revenue is recognized as earned when monthly lease payments are due. The liability for the advance is reduced each month as revenue is recognized. The lease ends, and the full amount of the security deposit is refunded. The agreement is closed.
Assumptions and Dependencies
  1. There may or may not be automated (near/real-time or batch) interfaces between service areas/functions/activities or between provider solutions/systems.
  2. There is no presumption as to which activities are executed by which actor, or which activities are automated, semi-automated, or manual.
  3. Supporting information for general ledger transactions includes sub-ledger entries when sub-ledgers are used.
  4. Appropriate attributes (e.g., object class and project) are included as part of the accounting string.
  5. Relationships between use cases are described in the Framework for Federal Financial Management Use Cases found in the related overview document.
  6. All predecessor activities required to trigger the Initiating Event have been completed.
  7. Funds availability checks are performed against appropriations/fund accounts for obligating funds, and against obligations for disbursing funds in accordance with OMB A-11, Section 150.2.
  8. The Program Office is authorized to enter into a reimbursable agreement with the private sector.
  9. All terms and conditions, are documented in the reimbursable agreement. While OMB Circular A-11 allows for use of working capital funds if available, the agreement with the PSE requires collection in advance.
  10. The agency has an account authorized by the Treasury to hold the advance collections.
FFMSR ID Reference(s) 1.1.2; 1.1.4; 1.1.5; 2.2.1; 2.2.2; 2.2.4; 2.2.5
Initiating Event

The Program Office and PSE negotiate terms for a reimbursable agreement.


USE CASE 070.FFM.L3.02 REIMBURSABLE AGREEMENT WITH PRIVATE SECTOR WITH PAYMENTS-IN-ADVANCE
Typical Flow of Events
FFM Event Non-FFM Event Input(s) Output(s) / Outcome(s)
1
  1. Request that the reimbursable agreement be established
  2. Receive advance per reimbursable agreement, including security deposit
  3. Request deposit and processing of the advance (Program Mission Activity)
  • Reimbursable agreement terms
  • Collection of advance
  • Request to establish the reimbursable agreement
  • Request for deposit and processing of collection of advance
2
  1. Receive and process request to establish the reimbursable agreement (FFM.050.010 Reimbursable Agreement Set-up and Maintenance)
  2. Receive and process request to deposit and process advance (FFM.050.030 Reimbursable Invoicing)
  3. Establish liability for the advance (FFM.090.030 Accrual and Liability Processing)
  • Reimbursable agreement terms
  • Request to establish the reimbursable agreement
  • Request for deposit and processing of advance
  • Reimbursable agreement
  • Appropriate receivable entry created with reference to source information
  • Appropriate advance deposit information created with reference to source information
  • Appropriate advance liability entry created with reference to source information
3

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)

  • GL entries
  • Appropriate GL accounts updated
4
  1. Request revenue recognition for monthly lease collection
  2. Request liquidation of advance liability as appropriate (Program Mission Activity)
  • Reimbursable agreement terms
  • Request for revenue recognition for monthly lease collection
  • Request for liquidation of advance liability as appropriate
5
  1. Receive and process request to recognize revenue for monthly lease collection (FFM.040.010 Revenue Processing)
  2. Receive and process request for liquidation of advance liability as appropriate (FFM.090.030 Accrual and Liability Processing)
  • Request for revenue recognition for monthly lease collection
  • Request for liquidation of advance liability as appropriate
  • Appropriate revenue recognition entry created with reference to source information
  • Appropriate advance liability liquidation entry created with reference to source information
6

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)

  • GL entries
  • Appropriate GL accounts updated
7
  1. Provide notice of lease expiration
  2. Inspect the property and determine a full refund of the security deposit is due
  3. Request refund of security deposit (Program Mission Activity)
  • Lease term expiration without renewal
  • Reimbursable agreement terms
  • Request for refund of security deposit
8
  1. Receive and process request for refund of security deposit (FFM.050.060 Reimbursable Closeout)
  2. Establish refund payable (FFM.030.070 Payment Processing – Commercial Payments)
  3. Liquidate security deposit liability (FFM.090.030 Accrual and Liability Processing)
  • Request for refund of security deposit
  • Reimbursable agreement terms
  • Appropriate security deposit refund payable entry created with reference to source information
  • Appropriate security deposit liability liquidation entry created with reference to source information
9

Request funds availability check (Program Mission Activity)

  • Validated security deposit refund
  • Request for funds availability check
10

Receive and process request for funds availability check (FFM.030.020 Obligation Management)

  • Request for funds availability check
  • Funds availability response
11
  1. Approve security deposit refund
  2. Request processing of approved vendor invoice (Program Mission Activity)
  • Funds availability response
  • Validated security deposit refund
  • Approved security deposit refund
  • Request for processing of approved vendor invoice
12
  1. Receive and process approved vendor invoice and establish payable (FFM.030.070 Payment Processing - Commercial Payments)
  2. Liquidated obligation (FFM.030.020 Obligation Management)
  • Approved vendor invoice
  • Request for processing of approved vendor invoice
  • Appropriate payable entry created with reference to source information
  • Appropriate obligation liquidation entry created with reference to source information
  • Appropriate accrual reversal entry created with reference to source information
13

Request disbursement (ACQ.040.020 Documentation of Delivery/Acceptance)

  • Approved vendor invoice
  • Request for disbursement
14
  1. Receive and process disbursement request (FFM.030.070 Payment Processing - Commercial Payments)
  2. Initiate disbursement (FFM.030.070 Payment Processing - Commercial Payments)
  3. Generate disbursement schedule (FFM.030.110 Payment Disbursement)
  4. Certify payment of disbursement schedule (FFM.030.110 Payment Disbursement)
  5. Receive confirmation of disbursement (FFM.030.120 Payment Confirmation)
  • Request for disbursement
  • Appropriate payable entry liquidated with reference to source information
  • Appropriate disbursement-in-transit entry created with reference to source information
  • Certified disbursement schedule
  • Disbursement confirmation information
  • Appropriate disbursement-in-transit entry liquidated with reference to source information
  • Appropriate disbursement entry created with reference to source information
  • PSE receives payment
15

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (FFM.090.020 General Ledger Posting)

  • GL entries
  • Appropriate GL accounts updated
16

Request close out of reimbursable agreement (Program Mission Activity)

  • Reimbursable agreement project code
  • Request for close out of reimbursable agreement
17

Receive and process request for close out of reimbursable agreement (FFM.050.060 Reimbursable Closeout)

  • Request for close out of reimbursable agreement
  • Appropriate close order entries created with reference to source information
18

Post appropriate budgetary, proprietary, and/or memorandum entries to the general ledger (GL) (FFM.090.020 General Ledger Posting)

  • GL entries
  • Appropriate GL accounts updated

This page was last updated on September 13, 2021.