Ratification of Joint Funding Agreements

In Reply Refer To:                      April 10, 1995
Mail Stop 442

WATER RESOURCES DIVISION MEMORANDUM NO. 95.28

Subject:	Ratification of Joint Funding Agreements

Audits of the Federal-State Cooperative Program, conducted by the Office
of the Inspector General (OIG), Department of the Interior, have pointed
out that we are in violation of legal statutes by beginning work without
a signed agreement.  In order to rectify this serious situation, our past
practice of beginning work based on an informal agreement must end.  
The auditors state that in order to be in compliance with the law, the
Water Resources Division (WRD) must take actions to control project costs
more effectively and improve project cost accounting.  Specifically, the
November 1994 audit calls for districts to obtain ratified agreements
before beginning project work and to establish the amount of advance time
needed to send agreements to cooperators for approval before project
initiation.

Although the policies and operations within cooperating agencies are beyond
our control, we must continue to explain to cooperators that agreements must
be signed before the WRD can begin work on a project.  District Chiefs should
meet with all cooperators to discuss this requirement which will be implemented
as follows.

o Fiscal year (FY) 1996 has been targeted as the year in which all agreements 
  for NEW projects must be signed prior to the initiation of work.  Effective
  October 1, 1995, no work on a new project will start without a signed
  agreement. 

o FY 1997 has been targeted as the year in which ALL agreements, including
  those for continuing projects, must be signed prior to the initiation of
  work.  After  October 1, 1996, no work on any project, new or continuing,
  will start without a signed agreement.

Beginning immediately and continuing throughout FY 1996, the Regional
Hydrologists will be working with each District Chief to determine
which projects may need to be delayed or discontinued because of the
inability to get agreements signed prior to beginning work.  The use
of multiyear agreements will be strongly encouraged whenever appropriate.
We have developed the attached timetable to facilitate the tracking of the 
agreement approval process. 

	        	   Catherine L. Hill
	        	   Assistant Chief Hydrologist for Operations

Attachment

Distribution:  A, B, FO, PO

				Attachment

TIMETABLE FOR AGREEMENT APPROVAL PROCESS 

FY 1995             Meetings with cooperators to develop new and 
	            continuing programs

                    o Discuss the requirement for signed agreements prior
                      to the start of work

September 1, 1995   Submittal of Joint Funding Agreements to Cooperators

	            o  All agreements should be entered into the Financial 
		    Management area of the Administrative Information 
		    System (AIS) when sent to the Cooperator.  An 
		    agreement status of "high" should be assigned.

		    o  The District Administrative Officer will followup
                    with the Cooperator on a weekly basis.  A monthly AIS 
		    Report 316 Summary will be furnished to the District
                    Chief.

	  	    o  The Regional Office will prepare and distribute a
                    month report to the District Chiefs and Administrative
                    Officers showing the percent of signed agreements for
                    each district.

September 15, 1995  District Chief will follow-up with the Cooperator 
	            regarding unsigned agreements

November 1, 1995    Memo from District Chief to the Region stating 
	  	    specific problems

		    o  The expected date of receipt of each signed
                    agreement will be listed.

January 1, 1996	    Regional staff will contact the cooperator after 
		    consultation with the appropriate District Chief