FIN 06-30

FILE: 06 COST ACCOUNTING

30 Cost Recovery

Subject(A): Repayment of Irrigation Contracts

Purpose: To document accounting procedure responsibility for (1) establishing the subsidiary listings supporting SGL 1370 - Deferred and Unmatured Receivables, and (2) posting cost recovery (billing) transactions to recoup project costs.

Authority: Reclamation Project Act of 1939, as amended (43 U.S.C. § 485).

Reclamation Safety of Dams Act Amendments of 1984 (43 U.S.C. § 508(c)).

Contact: General Accounting and Technical Analysis Group (GATAG), Finance and Accounting Services (FAS), by calling (303) 445-3423.

A. The Regional Finance Offices are responsible for the following actions involving repayment contracts (i.e., other than water service contracts pursuant to Section 9(e) of the Reclamation Project Act of 1939).

(1). Classification and Recording. Repayment contracts covering construction (including construction appropriations used for safety of dams), or rehabilitation and betterment work on Government-owned facilities shall be entered in SGL 1370, Deferred and Unmatured Receivable, for the face amount of the contract when the contract has been executed on behalf of the district and the United States. The unbilled 1 balance of each repayment contract constitutes a subsidiary listing for SGL 1370, and will appear in the BOR730, Cost File Summary Report.

(2). Adjustments. Where the contract repayment obligation is adjusted, e.g., by issuance of final cost notice or allocation, the adjustment shall be entered in the accounts to reflect the adjusted repayment obligation. (Note: This does not apply to Charge-offs By Congress or Secretarial Order. Refer to specific RM Supplement addressing that subject matter.)

(3). Contract Files. A confirmed copy, photo copy, or signed copy of all repayment contracts shall be filed in the finance office for the purpose of providing documentary evidence for the subsidiary listings.

(4). Bills. The finance office shall prepare bills, issued pursuant to statutes and repayment contracts consummated with water users' organizations under authority of the statutes, in collaboration with the regional head of irrigation activities, subject to regional legal review. Bills for contracts consummated with individual water users shall be prepared by the finance office in collaboration with the regional head of water and land activities. One copy of each bill shall be filed with the finance copy of the contract.

B. The Guidance and Technical Analysis Group, FAS, is responsible for establishing the accounting entries presented in the attachment to this Supplement.

2. Related References.

• Department of the Interior, Departmental Accounting Manual (FIN-3-20-20B. Reconciliations)
  
• Standard General Ledger (SGL) Chart of Accounts (FIN 04-20-10A)
  
• Program Directives/Standards (PEC 04 Contracts)

3. Attachment.

A. Accounting Entries - Repayment Contracts