In both the FY 2001 and FY 2002 audit, USGS was not always able to produce full supporting documentation.

As a means of improving the process for reimbursable agreements and correcting audit related discrepancies, Fiscal Services developed a Reimbursable Agreement checklist. The checklist itemizes all the elements that must be identified within an agreement. To verify that each element is contained in the agreement, a cost center representative must initial by each item, and the Project Chief/Principal Investigator and the Cost Center Financial Reviewer must sign and date the form.

Effective immediately, cost centers must use the Checklist to ensure that new reimbursable agreements contain the requisite information. Headquarters cost centers must submit a signed copy of the reimbursable agreement and the signed Checklist to the Discipline Team Lead in the Office of Fiscal Services; and cost centers in regions must submit the same documents to the discipline Team Lead in the regional Branch of Fiscal Services. A copy of the signed Checklist must be filed with the agreement. It will be part of the required agreement documentation during audit statistical sampling.

Cost centers should use the Checklist to review and document the elements of existing agreements as they are received. There will continue to be an on-going Fiscal Service review of agreements, using the Checklist as a guide. Cost centers may be required to amend agreements to ensure they contain the required elements.

Fiscal Services will also include a chapter in the Common Business Practices handbook that will further define the processes and procedures for reimbursable agreements.

/s/ Louie Pectol
Chief, Office of Fiscal Services

Attachment
Reimbursable Checklist