EP 1165-2-1
30 Jul 99
(5) "Other Non-Federal Funds" are non-Federal funds received
for acquiring lands, easements, and rights-of-way or performing
relocations required to be provided by and which are the obligation of
non-Federal interests pursuant to the terms of project cooperation
agreements (PCAs), or for design and/or construction of facilities
physically related to the authorized Federal project and desired by
the non-Federal sponsor, including betterments.
b. Acceptance. District commanders are authorized to accept
"Required Contributed Funds" once a PCA has been executed. District
commanders are authorized to accept "Other Non-Federal Funds"
pursuant to the terms of relocation agreements or agreements with non-
Federal interests as provided in PCAs. Action by ASA(CW) is required
prior to acceptance of "Non-required Contributed Funds," "Contributed
Funds, Other," and "Advanced Funds." "Non-required Contributed Funds"
and "Contributed Funds, Other" cannot be accepted until Federal funds
have been appropriated for the work to which they relate and until
informing the Appropriations Committees of the Congress of such
proposed action. The authority to accept "Non-required Contributed
Funds" and "Contributed Funds, Other" in the amount of ,000,000 or
less may be exercised by district commanders for certain actions under
the Operations and Maintenance (O&M) Program (See paragraph 10 of ER
1165-2-30). The authority to accept "Advanced Funds" shall be
exercised by district commanders only after prior approval by
HQUSACE, the ASA(CW), OMB, and notification of the Appropriations
Committees of the Congress prior to negotiation of the agreement for
advanced funds. (See paragraph 11 and Appendix A of ER 1165-2-30)
c. Return. Action by ASA(CW) is required for the return
(refund or repayment) of all "Advanced Funds" contingent upon
availability of the funds. Authority for return of excess or unused
portions of contributed funds is normally granted concurrently with
approval for acceptance. District commanders are authorized to return
unused portions of "Required Contributed Funds", "Non-required
Contributed Funds," "Contributed Funds, Other," and "Other Non-Federal
Funds" as part of the final settlements of non-Federal cooperation
requirements and relocation agreements. (ER 1165-2-30, ER 37-2-10)
d. Time and Manner of Payment. Unless otherwise specifically
set out in authorizing documents or general legislation, contributions
will be received prior to initiation of construction of facilities to
which they apply. In the event the project is programmed for
accomplishment over a considerable period of time, escrow arrangements
may be established. In addition, Section 40 of the Water Resources
Development Act of 1974 authorized annual installment payments of
"Required Contributed Funds" during the construction period. When
escrow accounts are established, sufficient funds are deposited in the
Federal Treasury to cover the non-Federal share of the work prior to
obligation of funds. (ER 1165-2-30)
8-6. Credit or Reimbursement for Non-Federal Work on Projects.
Pursuant to Section 215 of the Flood Control Act of 1968 (Public Law
90-483), as amended, ASA(CW) may execute agreements providing for
credit or reimbursement to states or political subdivisions thereof
for construction work undertaken at authorized projects. As provided
in Section 215, reimbursement may take the form of cash repayment or
crediting the non-Federal sponsor for an equivalent reduction in the
project contributions the local sponsor would otherwise be required to
make pursuant to a PCA for the project. In practice, the non-Federal
interests will be initially compensated by crediting the value of
their work against the local contributions toward the Federal project
8-6
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