It was agreed that until such time as a new procedure is implemented for processing purchase orders for professional services (formerly known as PSOs in many cases), that these vendors (i.e., individuals) will be issued orders and paid through the purchase card convenience check mechanism for services that do not exceed $3,000. Services over this amount will be issued on a purchase order in the three line format: honorarium, per diem, and travel. Note that honoraria are limited to $200, although with higher approval, a higher amount can be given. Also, requirements for which no honorarium will be paid are to be processed using invitational travel procedures.
Buyers and Approvers need to familiarize themselves with the FAR, HHSAR, and NIH policies and guidance as they relate to convenience checks and the Central Contractor Registration (CCR) requirement
The following conditions will be established and adhered to during the period of this procedure:
Convenience Checks (value equal to or less than $3,000)
1. Each IC that does not currently have at least one Cardholder (CH) and one Card Approving Official (CAO) with convenience check authority will be required to appoint one of each from their existing CHs and CAOs.
2. Those ICs with current convenience check authority will only nominate additional individuals for this authority if they can make a compelling case and receive approval from the Head of the Contracting Activity (HCA).
3. For those ICs who currently have convenience check authority, the additional convenience check authority granted to CHs and CAOs during this interim period will have the additional authority revoked once a new long-term procedure is established. The ICs will be notified before this revocation takes place. If the IC currently does not have convenience check authority, the additional authority may remain with approval of the HCA.
4. Convenience check policies are set out in the Purchase Card Guide. Those CHs who will be issuing convenience checks, as well as those CAOs who will be approving convenience checks, are required to adhere to both the HHS and NIH policies set out in the Guide. Policy highlights include:
· Convenience checks must be maintained in a secure location, and can only be issued by the individual authorized to do so.
· Convenience checks may be used during this interim period not more than six times for an individual providing a professional service, and may be used for unlimited time for individuals participating in medical/patient related studies. Following six visits, individuals are expected to register in the CCR database, and to obtain an electronic fund transfer (EFT)/automated clearing house (ACH) account with a bank.
· Convenience checks cannot exceed $3,000 dollars. Multiple checks for professional services to one individual to cover his/her costs for one service are prohibited.
· The NBS purchase card log must be used for all convenience check actions, and prompts for the IRS-required 1099-MISC forms information must be followed.
· Vendors must be instructed to cash their checks within 90 days of receipt, as after this time, it becomes void.
· Convenience checks need to be issued in sequence, or some will assume to have been lost or stolen.
· Convenience check information needs to be written legibly.
Purchase orders (value greater than $3,000)
Individuals can be issued orders for professional services up to two times. They will be set up as Non-CCR Vendors. Individuals with the NBS Vendor Requestor role will be required to enter pertinent vendor information into the Vendor Request fields, e.g., ACH. Following two visits, individuals are required to register in the CCR database, and to obtain EFT/ACH account with a bank. Also, those individuals who are already registered in CCR should be issued purchase orders, not convenience checks, for any additional professional services efforts.
Please see the attached job aid for step-by-step instructions on how to enter convenience checks for professional services into the NBS.