TN 30 (03-02)
DI 39506.100 The Funding Process
A. Policy - funding authorization
SSA provides funds to the States for the Federal fiscal year (October 1 to September 30) on a quarterly basis. Notification to the States of the cumulative amount of funds that may be obligated for approved necessary expenses--and the dates covered by the
funding--is contained in Form SSA-872 (State Agency Obligational Authorization for SSA Disability Programs).
1. Funding notification
The Form SSA-872 is the official document that authorizes the State to incur obligations against Federal funds to meet its approved necessary costs. The SSA-872 notifies the State agencies of the funding that may be obligated or expended by the State and the dates covered by the funding. The SSA-872 is issued to the States on a quarterly basis (and when appropriate to distribute funding).
The regional office prepares the SSA-872s based on the allowance advice received from the Office of Disability. The regional office should submit copies as follows:
One copy to the appropriate staff in OD, DFDO, RMB via email or FAX at (410) 966-3175.
One copy to the appropriate staff in the Office of Finance via email or FAX at (410) 965-9248.
2. Line-item limitation on use of funds
The expenditure of funds for particular categories or purposes may be limited at any time by SSA.
3. Limits on expenditures
The State agencies will observe the dates covered by the funding authorized on the SSA-872 and the cumulative limitation on expenditures. The State agencies should control the rate of expenditures throughout the year and take precautions to safeguard against inadvertent overexpenditure of SSA's budget for disability program operations.
4. Increases in expenditure authority
State agencies must check their rate of expenditure monthly. If it appears that expenditures may exceed the cumulative obligational authorization for the dates covered by the funding, agencies must consult with the SSA regional office staff.
5. Reductions in obligational authority
Occasionally, it may be necessary to reduce the obligational authorization for certain State agencies. This would occur, for example, when workloads fall short of estimates or when some other unforeseen trend or situation would make a reduction necessary. If it becomes clear that an agency will not need as much obligational authority as has been authorized, the authorization will be reduced. However, such reduction will be made only after advance consultation between the SSA regional office and State agency.
B. Process - providing funds
The process for providing funds to the State agencies is done through the Automated Standard Application for Payment (ASAP). The ASAP—implemented in the State agencies beginning August 1996--is an all-electronic payment and information system developed jointly by the Financial Management Service (FMS) of the U.S. Treasury and the Federal Reserve Bank of Richmond. Organizations receiving Federal dollars use ASAP to draw funds pre-authorized for payment through the U.S. Treasury.
For specific instructions on drawdown capability and query access, refer to the user manual provided to the States and regional offices by the Department of Treasury.