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Stop Work Process for Funds Control Compliance

    Title:

    Stop Work Process for Funds Control Compliance

    Publication date:

    3/4/2014

    Effective date:

    12/31/2011

    BRIEF

    Policy Summary

    This policy defines the guidelines for the initiation of the Stop Work process for the Berkeley Lab to ensure compliance with federal regulations and the University of California (UC) Department of Energy (DOE) Contract 31. The policy provides steps by which to mitigate situations arising from potential funds-control issues (i.e., incurring uncollectible and/or unallowable costs), with the goal of safeguarding the Laboratory while supporting its scientific mission.

    Who Should Read This Policy

    Any Berkeley Lab employee with financial responsibilities

    To Read the Full Policy, Go To:

    The POLICY tab on this wiki page

    Contact Information

    Budget Officer
    Field Operations Manager

    Title:

    Stop Work Process for Funds Control Compliance

    Publication date:

    3/4/2014

    Effective date:

    12/31/2011

    POLICY

    A. Purpose

    This policy defines the guidelines for the initiation of the Lawrence Berkeley National Laboratory (Berkeley Lab's) Stop Work process to ensure compliance with federal regulations and the UC-DOE Prime Contract (Contract 31). It is intended as a tool to mitigate situations arising from potential funds-control issues (i.e., incurring uncollectible and/or unallowable costs), with the goal of safeguarding the Laboratory while supporting its scientific mission.
    A Stop Work to mitigate a funds-control violation would only be exercised after all other options have been exhausted (e.g., bridge funding or negotiation with the sponsor) — refer to the Stop Work Process Flowchart.

    B. Persons Affected

    Any Berkeley Lab employee with financial responsibilities

    C. Exceptions

    D. Policy Statement

    1. The scope of this policy is limited to work activities funded by DOE and Work for Others (WFO) sponsors. A funds-control violation may result in a reduction in the Laboratory's fee, the assessment of fines, and/or a decrease in the Contract 31 performance measure rating, which could ultimately jeopardize the Laboratory's Contract 31 extension.
    2. As a federal contractor, the Laboratory is required to adhere to Contract 31 regulations. If it is determined that an actual funds-control violation exists, work activities must stop until the issue is resolved.
    3. Possible funds-control violations may include:
      1. DOE Direct-Funded Work
        1. Costs and/or commitments incurred in excess of funds available
        2. Costs and/or commitments incurred prior to receipt of funds in the Contract Modification (Mod)
        3. Costs and/or commitments incurred for activities outside of the purpose specified in the DOE work authorization
        4. Costs and/or commitments incurred after the expiration of limited-appropriation funds
      2. Work for Others (WFO)
        1. Costs incurred prior to receipt of an accepted reimbursable work agreement. A written agreement to perform work or provide a service for another federal agency or non-federal sponsor, signed by a contracting officer or an official with delegated authority to commit the Laboratory to perform WFO, and approved by an authorized approver of the sponsor.
        2. Costs incurred prior to receipt of DOE Approval.
        3. Costs incurred outside the reimbursable work agreement period of performance
        4. Costs incurred after the expiration of limited-appropriation funds
        5. Costs incurred outside of the reimbursable work agreement terms (Statement of Work). Activities must be allowable and allocable.
        6. Costs incurred in excess of funding
          1. For a federal reimbursable work agreement, "funding" is defined as the contract value.
          2. For a non-federal reimbursable work agreement, "funding" is defined as cash received (advance payments + invoice payments), plus approved bridge funding.
        7. Financial terms of reimbursable work agreement are not met by the sponsor
          1. Delinquent payment of invoices (generally invoices outstanding for 120 days or more)
          2. Sponsor refuses to reimburse the Laboratory
    4. Other nonfinancial factors may result in the requirement to Stop Work
    5. Initial Notification
      1. A potential funds-control violation may be identified by a division resource analyst, business manager, accounts receivable manager, Office of Sponsored Projects and Industry Partnerships (OSPIP) Contracts Officer, manager, Budget Office analyst, etc., and may result in the initiation of a Stop Work process (refer to Stop Work Process Flowchart). If a potential funds-control violation is identified, the identifier must notify the following individuals via e-mail:

        POSITION

        NOTIFICATION

        Field Operations Manager

        Mandatory

        Division Resource Analyst

        Mandatory

        Budget Office Analyst

        Mandatory

        Business Manager

        Mandatory

        Division Director/Deputy Director

        Division discretion

        Principal Investigator (PI)

        Division discretion

        OSPIP Contracts Officer

        If applicable

        Accounts Receivable Manager

        If applicable

        Budget Officer

        Field operations manager discretion

      2. The Chief Financial Officer (CFO) has the option of declaring a temporary Stop Work at any time during this process.
    6. Determination
      1. The field operations manager establishes and facilitates a fact-finding team within two business days of receipt of notification in order to gather details and explore whether other funding sources are available and appropriate. The team should include those individuals noted as mandatory under the initial notification section, and others as appropriate. Based on the team's findings, a recommendation is made.
      2. If the team determines that a Stop Work course of action is unnecessary, the division resource analyst and field operations manager must still complete a Stop Work Initiation Form, summarizing the issue and the team's recommendation. The completed form is distributed by the field operations manager to the team for informational purposes.
      3. If the team recommends a Stop Work course of action, the division resource analyst and field operations manager complete the Stop Work Initiation Form, summarizing the team's recommendation and outlining the funding alternatives that were explored but determined not to be viable options. The Budget Office reviews the completed form.
      4. The field operations manager distributes the completed form simultaneously to the division's business manager and to the Budget Officer. The business manager reviews the Stop Work recommendation with the division director and notifies the Budget Officer if there are additional concerns prior to the CFO review. The Budget Officer reviews the recommendation with the CFO for final determination.
      5. Given the severity of a Stop Work situation, the determination process should be completed expeditiously.
    7. Stop Work Notification
      1. If a Stop Work is the recommended course of action, the CFO reviews the issues with the division director, or designee. The division director is responsible for implementing the Stop Work. The Stop Work status is in effect until the funds-control violation is resolved.
      2. Once the division director concurs with the Stop Work recommendation, the sponsor will be notified. The OSPIP officer will handle the formal sponsor notification for WFO, and the division director for DOE direct-funded projects.
    8. Resource Allocation
      1. Since activities on the project at issue must cease, principal investigators and staff effort must be redirected to other appropriate activity such as work on other projects or employee-between-assignment activity funded through Organization Burden.
      2. It is inappropriate to charge Research and Development costs to Organization Burden (see Organization Burden Policy). If alternatives are unavailable, the division must pursue appropriate alternatives with Human Resources (e.g., administrative leave, termination, etc.).
      3. In cases of abrupt funding termination, the division may seek non-Contract 31 funds (e.g., Fee or Gifts).

    flowchart

    E. Roles and Responsibilities

    Role

    Responsibility

    Stop Work Initiator

    • Notifies appropriate parties of potential funds-control violation as outlined in policy procedures
    • Participates on fact-finding team

    Division Resource Analyst

    • Participates on fact-finding team
    • Completes Stop Work Initiation Form with field operations manager

    Field Operations Manager

    • Establishes and facilitates fact-finding team
    • Completes Stop Work Initiation Form with division resource analyst
    • Distributes completed form as outlined in policy procedures

    Budget Office Analyst

    • Participates on fact-finding team
    • Reviews completed Stop Work Initiation Form

    Accounts Receivable Manager
    (if applicable)

    • Participates on fact-finding team

    OSPIP Contracts Officer (if applicable)

    • Participates on fact-finding team
    • Notifies WFO sponsor of Stop Work implementation, if applicable

    Business Manager

    • Participates on fact-finding team
    • Reviews Stop Work recommendation with division director, if applicable

    Budget Officer

    • Reviews Stop Work recommendation with CFO, if applicable

    Chief Financial Officer (CFO)

    • Reviews Stop Work recommendation with division director, if applicable
    • Notifies team of Stop Work concurrence, if applicable

    Division Director (or designee)

    • Implements Stop Work, if applicable

    F. Definitions/Acronyms

    Term

    Definition

    Contract Modification (Mod)

    DOE-produced document that provides Berkeley Lab the budget authority to enter into obligations that will result in immediate or future outlays involving government funds

    DOE Work Authorization

    DOE-produced programmatic document that specifies activities for which the funds are to be used

    Limited-Appropriation Funds

    Funding authority provided by Congress designated as one-year, multiyear, or no-year funding. This designation describes the period of time the funds are available for obligation and expenditure. One-year and multiyear funds expire and cannot be costed or committed after the expiration date. Funds available for a limited period of time are referred to as limited-appropriation funds.

    Reimbursable Work Agreement

    A written agreement to perform work or provide a service for another federal agency or non-federal customer

    Work for Others (WFO)

    Work for non-DOE entities performed by DOE/contractor personnel and/or utilizing DOE facilities and which are not directly funded by DOE appropriations

    G. Recordkeeping Requirements

    None

    H. Implementing Documents

    Document number

    Title

    Type

    11.02.006.001

    Stop Work Initiation Form

    Form

    I. Contact Information

    Budget Officer
    Field Operations Manager

    J. Revision History

    Date

    Revision

    By whom

    Revision Description

    Section(s) affected

    Change Type

    1/2/2012

    1

    M. Mock

    Reformat for wiki

    All

    Minor

    3/4/2014

    1.1

    Lundell

    Clarification if funds-control violation; add additional example

    Section D.1, insert D.3.b.ii

    Minor

    DOCUMENT INFORMATION

    Title:

    Stop Work Process for Funds Control Compliance

    Document number

    11.02.006.000

    Revision number

    1.1

    Publication date:

    3/4/2014

    Effective date:

    12/31/2011

    Next review date:

    2/1/2016

    Policy Area:

    Budget

    RPM Section (home)

    Financial Management

    RPM Section (cross-reference)

    Section 11.45

    Functional Division

    OCFO

    Prior reference information (optional)

    RPM Chapter 11, Section 11.45

    Source Requirements Documents

    Other Driving Requirements

    Document Number

    Title

    Type

    11.02.001.000

    Bridge Funding Policy

    Policy

    Implementing Documents

    Document Number

    Title

    Type

    11.02.006.001

    Stop Work Initiation Form

    Form

    Other References

    Document Number

    Title

    Type

    11.02.004.000

    Organization Burden Policy

    Policy

    11.07.004.000

    Cost Allowability Policy

    Policy

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