USDA Rural Development

National Financial and Accounting Operations Center

St. Louis, MO

Last updated 2/3/15

National Financial andAccounting Operations Center

The National Financial and Accounting Operations Center (NFAOC) organization is responsible for providing expert financial and portfolio management support to businesses. Current services include accounting and reporting activities for Rural Development’s and Farm Service Agency’s portfolio of direct loans, guaranteed loans, and grant programs.

The NFAOC web page on the Rural Development intranet is located at: http://teamrd.usda.gov/rd/daom/cfo/nfaoc.html

National Financial and Accounting Operations Center

Christine Mechtly

Deputy Portfolio Management

Moraima Rivera

Deputy Financial Management

Tonia Lohman

Guaranteed Loan Division

Sharon Sachs

Farm &

Community Services

Germaine Jones

Housing Services

James Jordan

Financial Reporting

Division

Tracy Galloway

Financial Statements

Rhonda Knolhoff

General Ledger

Pam Younger

Program Funds Control

Tony BainbridgeDirector

Kristen Landwehr

Internal Control and

Initiatives Staff

Alison Suhre

Program Reporting

Division

Karen Campbell

Debt Collection

Improvement

Debra Deters

Program Reports

Greg Thebeau

Credit Reform

Mark McKinley

Direct Loan Division

Cindy Haas

Farm Services

Ginger Luke

Community Services

Cheryl Parker

Multi-Family

Housing Services

David Larsen

Financial Operations

Division

Edwin Henry

Cash Management

Collections

Linda Hamel

Fiscal Reconciliation

Harry Barnett

Mission Support

Division

Greg Lovett

Operations & Scheduling

Ann Bradley

Telephone &

Electric Services

Pat Brown

Administrative Funds

Control

Marie Lott

Shift 3

Linda Schmidt

Cash Management

Disbursements

Lisa Randolph

Planning and

Accountability Staff

Larry Clayton

Shift 1

Brian LinkShift 2

Financial Management Systems Utilized

DLOS

PFCS

FFB

RET

FMMI

GLS

AMAS

PLASCLSS

NFAOC

National Financial and Accounting Operations Center

• PFCS – Program Funds Control System • GLS – Guaranteed Loan System• DLS – Direct Loan System *• PLAS – Program Loan Accounting System• AMAS – Automated Multi-Housing

Accounting System• CLSS – Commercial Loan Servicing System • RET – Rural Electric and Telephone• FFB – Federal Financing Bank• FMMI – Financial Management

Modernization Initiative• DLOS – Dedicated Loan Origination

System**

* Managed and operated by Farm Service Agency

** Managed and operated by RHS, CSC. Financial data supports NFAOC financial reporting.

DLS

Portfolio ManagementDirect Loan Division

Multi-Housing portfolio management includes assistance with problem accounts, payment application, and assistance with delinquent account servicing.

Rural Utility portfolio management includes assistance with discounted prepayments, basis date agreements, short term maturity rollovers, variable interest rate updates, and delinquent account servicing.

Community Facility, Business and Industry, Water and Environmental, Intermediary Relending, and Rural Economic Development portfolio management includes assistance with statement of accounts, loan closings, loan reconciliation/ special servicing issues, correction of payment application and delinquent account servicing.

Farm Loan Program portfolio management includes assistance with statement of accounts, problem case resolution, correction of payment application, delinquent account servicing, and servicing concerns.

Assist Program Staff in design and implementation of new system initiatives.

Portfolio ManagementDirect Loan Division

Portfolio ManagementGuaranteed Loan Division

Process GLS Obligation Changes, Guarantee Fees, and Lender Changes.

Maintain GLS Lender File. Process Losses and Recoveries, Purchases, Appraisals, and

Interest Assistance. Process or assist with Reamortizations, Consolidations,

Transfer and Assumptions, and other servicing transactions. Process Offset Collections, Refunds and Write-offs.

Portfolio ManagementGuaranteed Loan Division

Administer User Agreements and Agreements for Electronic Transactions with Lenders.

Administer Security For LINC (Lender Interactive Network Connection).

Establish Lender Access to Credit Alert Verification Reporting System (CAIVRS).

Administer and Monitor all GLS Status Reporting. Assist Program Staff in design and implementation of new

system initiatives.

Portfolio ManagementProgram Reporting Division

Coordinate, monitor and process debt management and collection activities for:

• Debt Collection Act and Debt Collection Improvement Act• Treasury Offset Program and Credit Bureau Reporting• Cross Servicing and Credit Alert Verification

Reporting System

Prepares Treasury Report on Receivables

Portfolio ManagementProgram Reporting Division

Prepares cohort level cash flow data used to calculate annual reestimates.

Prepares program assumptions used to calculate program subsidy rates.

Works with program staff and the Budget Division to determine policy decisions impact on program costs

Portfolio ManagementProgram Reporting Division

Coordinates, reviews, and distributes calendar yearend documents and management reports

Conducts semi-annual unliquidated obligation certification reviews

Provides responses to ad-hoc reporting and Freedom of Information requests

Prepares the Management Discussion and Analysis for the financial statements

Collection methods include:• Preauthorized Debits• Customer Initiated Payment• Retail Lockbox• Remittance Express

Financial ManagementFinancial Operations Division

• Wholesale Lockbox• Local Deposits• Fedwire• National Receipts &

Receivables System

Process collections for Direct and Guaranteed loans.

Certify disbursements for direct loans, grants, cost item payments, guaranteed losses and repurchases.

Process activity for Treasury borrowings and repayments for the direct and guaranteed programs.

Prepare daily and monthly reconciliations of cash transactions with Treasury.

Financial ManagementFinancial Operations Division

Financial ManagementFinancial Operations Division

Balance and maintain data integrity within the various financial management systems.

Authorizes all accountings systems to be opened for normal business for Rural Development and Farm Service Agency offices nationwide.

Financial ManagementFinancial Reporting Division

Serves as the national centralized accounting and financial reporting operation for Rural Development loan and grant programs and Farm Service Agency’s Farm Loan Program.

Prepare audited financial statements required by the Chief Financial Officers’ Act of 1990 as expanded by Government Management Reform Act of 1994.

Perform analysis and statistical reporting in compliance with the Credit Reform Act of 1990.

Provides budget formulation and execution for all administrative programs for Rural Development.

Financial ManagementFinancial Reporting Division

Perform analysis related to financial data for special congressional inquiries and requests from the Office of Management and Budget (OMB).

Maintain fund control systems for obligations and disbursements for all loan and grant programs.

Financial Management Modernization Initiative (FMMI):• Track administrative (Salaries and Expense), Program Loan

Cost Expenses, and certify unliquidated obligations.• Provide support to field and national office staff.

Financial ManagementFinancial Reporting Division

Report and reconcile the status of allotments, obligations, unobligated allotments, and unliquidated obligations.

Coordinates with departmental organizations on the reporting, reconciliation, and certification of various requirements, such as on the Federal Funding Accountability & Transparency Act.

Evaluates new or revised regulatory and program guidance, identifying the impact on allotment ledger, general ledger, and financial reporting functions.

Financial ManagementMission Support Division

Three shift operation Executes nightly updates of financial management

systems. Over 39 million transactions are updated annually.

Supports Rural Development, Farm Service Agency and National Resource Conservation Service.

Transmits secured electronic files to Treasury, NITC mainframe support.

Financial ManagementMission Support Division

Schedules nationwide availability of computer terminals. Prints and mails hardcopy reports, customer/borrower

correspondence, billings, and IRS reports.• Over 33 million pieces of mail are metered each year.• Over 16.7 million pieces of loan correspondence and

reports are converted to electronic format (Efiche) each year.

Overall planning related to Government Performance and Results Act (GPRA) reporting.

Develop & administer administrative budget for the NFAOC. Preparation and/or review new business proposals, service contract

agreements, and automation initiatives. Development of Continuity of Operations Plan (COOP) and

Occupant Emergency Plan (OEP). Transformation planning Program evaluation

Planning & Accountability Staff

Internal Control & Initiatives Staff Ensure accounting operations and financial systems comply with

Legislative, Regulatory, and Program Guideline. Ensure internal controls comply with OMB Circular A-123,

Management’s Responsibility for Internal Control, for all RD offices.

Coordinate all external audits performed by OIG, GAO, and other investigative offices related to NFAOC operations and Bureau financial statements.

Prepares the fiscal plan and coordinates all fiscal yearend activities to ensure activities are executed as scheduled.

Manages and coordinates all system automation initiatives.

Established the NFAOC by successfully reassigning all staff into the organization and completing labor negotiations addressing AFGE concerns.

Completed three rounds of critical hiring to move toward our limited ceiling of 244 FTE.

Completed physical movement of NFAOC employee into temporary office space and initiated remodel effort in line with the USDA initiative to reduce office space.

FY 2014 Accomplishments

Miscellaneous

RD – Upcoming Software Enhancements

• PLAS/GLS/CLSS – removal of 6 day reservation period for BP/CF/WW obligations – testing will begin soon

RD – Guaranteed Rural Housing (GRH)

• National Office Update on GRH 3555 Handbook– 12/9/2013 – Rule Publication creating the GRH

3555 handbook– 12/1/2014 – GRH 3555 handbook published– http://www.rurdev.usda.gov/Handbooks.html– Updates are currently being completed on specific

chapters

FSA – Upcoming Software Enhancements

• EFT – timeframe for automated pre-note validation will be reduced from 14 to 3 days (estimated implementation – Spring 2015)

• GLS – ability to add multiple co-borrowers to applications (project kickoff February 2015)

FSA - Guaranteed Loan Items• Reduced processing timeframes in ECM

(most transactions will be processed within 5 days of assignment)

• Form 2249, Request For Restructuring Guaranteed Loans, must be used when loan terms are modified (Form 2247, Guaranteed Loan Borrower Adjustments, should only be used when an input error occurs on the loan closing)

FSA – Direct Loan Items• Request for Change in Application, Form FSA-2429

– Corrections should be submitted via NRRS.– Do not submit hard copies– Receipt and Completion letters are not sent on item submitted through NRRS– Inquiries should be made via email or phone call

• Pre-Authorized Debit (PAD) - pilot starting spring 2015– A means for the NFAOC to electronically collect loan payments from a

borrower’s account– Cash Management Collections Branch (CMCB) is responsible for setting-up,

changing, correcting, and cancelling PAD agreements. Questions: 314-457-4023

– PAD Form RD 3550-28 may be faxed. The web address for the fillable form is http://www.rurdev.usda.gov/regs/formstoc.html#3500, select form 3550-28

USDA Rural Development

National Financial and Accounting Operations Center

St. Louis, MO