Attachment 1 - Alabama Bulletin No. AL300-7-2

Outline of Appendixes and Dates of Application

Refunds and/or cost recovery are based on the DATE OF THE CCC-1200 APPENDIX signed by the participant when the EQIP contact was developed. The following guidelines are to be used.

CCC – 1200 Appendix is Dated 12-31-98 or Earlier:

• If no practices were implemented and no payments were made, there is no refund of payments and no assessment of liquidated damages.
• If practices were implemented and payments were made. The total of all cost-share payments previously paid to the participant, plus interest beginning from the date(s) the payments were made, are to be refunded. Since NRCS and FSA no longer jointly administer EQIP, no liquidated damages are assessed.

CCC – 1200 Appendix is Dated 7-15-02 or 8-7-02:

• If no practices were implemented and no payments were made, there is no refund of payments and no assessment of liquidated damages.
• If practices were implemented and payments were made, the total of all cost-share payments previously paid to the participant, plus interest beginning from the date(s) the payments were made, are to be refunded. No liquidated damages are assessed.

CCC-1200/1202  Appendix is Dated 7-2003, 3-2005, 10-2005, 12-2005; 10-2006, to present:

• If no practices were implemented and no payments were made, the participant is assessed a cost-recovery payment to offset administrative costs in an amount equal to 20 percent of the total financial (and technical, if applicable) cost-share assistance obligated to the participant in the EQIP contract at the time the contract is terminated.
• If practices were implemented and payments were made, the participant is assessed a cost-recovery payment to offset administrative costs in an amount equal to 20 percent of the total financial (and technical, if applicable) cost-share assistance obligated to the participant in the EQIP contract at the time the contract is terminated. The participant must also refund the amount of cost-share payments previously received, plus interest beginning from the date(s) the payments were made.

General Recovery Cost

• Refunds and/or cost recovery are to be paid to USDA/NRCS.
• Cost recovery offsets are to be mailed to:
  
  USDA/Natural Resources Conservation Service
  Attention: Kim Pridgen
  P.O. Box 311
  Auburn, Alabama 36830

For all future EQIP contracts, NRCS employees are to highlight TERMINATION OF CONTRACT (10A) AND RECOVERY OF COSTS (11A) in the CCC-1202 Appendix and have the participant read and initial these paragraphs before signing the CCC-1202 Contract and Appendix. This is to ensure the participant fully understands his or her financial commitment in an EQIP contract.

 

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