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Processing Payments Invoice Documentation
Loan Disbursement Requirements Mailing and Contact Information

PROCESSING PAYMENTS

For a municipality to receive a disbursement from the Clean Water Fund Program or the Safe Drinking Water Loan Program, it must complete a Request for Disbursement for Financial Assistance Programs (Form 8700-215). The Land Recycling Loan Program has a separate form "Request for Disbursement for Land Recycling Loan Program" (Form 8700-281). The municipality should submit its first "Request for Disbursement" 3-4 weeks prior to the EIF loan closing. The amount of the first disbursement request must be equal to or greater than 5% of the EIF loan amount or $50,000, whichever is less.

Refer to the budget sheet in the Financial Assistance Agreement when preparing subsequent Request for Disbursement forms. The line item totals on the Request for Disbursement form should not exceed the line item totals on the budget sheet that the municipality and the EIF project manager agreed upon.

Wire Transfers: The EIF loan closing disbursement and all subsequent disbursements occur as wire transfers to a non-interest bearing account. Wire transfers are sent via the federal reserve wire system. Banks that are not members of the Federal Reserve System cannot receive wire transfers directly. There is an extra line (Destination Bank) for municipalities whose local bank cannot receive wire transfers directly. Banks that are not members of the federal wire system must rely on a correspondent bank to receive the wire transfer and pass the funds on to the local bank. Following is a sample of wire instructions for banks that are not a member:

  1. Intermediary Bank Name:   Bankers' Bank, Madison
  2. ABA #: 075912479
  3. Acct.#: 06333

  1. Destination Bank: A&M Bank,  Anytown
  2. Acct. Name: Bayboro Sanitary District  
  3. Acct.#: 126987
  4. Acct. #: 4-007492

If a municipality is unsure of the wire information, it should call the bank to get the correct instructions.

Please Note: If a municipality changes banks or its account number, the municipality should notify the EIF project manager immediately so future disbursements will be wired to the proper bank account.

The EIF will be able to make payments within 14-16 days of receipt if the municipality submits the following information and meets the disbursement date deadlines:

  1. Form 8700-215 must include the signature of the authorized municipal representative, title, date and telephone number. Invoices must accompany all requested costs on each line on the "Request for Disbursement." Statements and cancelled checks are not acceptable.

    Please Note: If the municipality has submitted invoices previously to the EIF project manager, it does not need to resubmit invoices with the Form 8700-215.

  2. Loan disbursements are generally wired to municipalities on the second and fourth Wednesdays of each month; adjustments may be made for holidays.

    • If DNR receives Form 8700-215 by the first of the month, the municipality will receive disbursement on the second Wednesday of the month.

    • If DNR receives Form 8700-215 by the 15th of the month, the municipality will receive disbursement on the fourth Wednesday of the month.

  3. In order to minimize administrative processing expense, disbursements requested on Form 8700-215 should be for at least $10,000. If this is not feasible for the municipality, disbursement for a lesser amount will be accepted.

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LOAN DISBURSEMENT REQUIREMENTS

The Financial Assistance Agreement is a binding contract, so it is critical that the municipality understands the conditions set forth in the agreement. The following are issues that the DNR and DOA feel need further emphasis. These conditions need to be followed because of IRS requirements.

  • The municipality must deposit all amounts received from the EIF into a NON-INTEREST bearing account.

  • The municipality must expend all amounts received within three business days.

  • The funds received from the EIF shall not be used in a manner that would cause the Bonds issued to the EIF to be "Arbitrage Bonds". Please reference Article V Sec. 5.09(c) of the Financial Assistance Agreement.

  • Unless the municipality is using proceeds for reimbursement or refinancing purposes, all proceeds should be used to pay unpaid invoices for the project.

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INVOICE DOCUMENTATION

EIF staff will notify the Department of Administration to make disbursement of the municipality's payment request if the request form is complete and all the necessary invoice documentation to support the costs identified on the request are included.

The following invoice documentation is needed to support costs submitted for:

Force Account:

  • Force Account Certification Form on file with the EIF program
  • documentation for all expenditures included in the account

    Below is an example of force account expenditures.

    Payroll Related Costs:

    • employee name
    • employee hours (eligible and ineligible portions segregated)
    • complete description of work performed
    • employee rate of pay

    Machine/Equipment Usage:

    • type of machine/equipment used
    • hours of use
    • hourly charges
    • dates of use
    • project function

    Interim Financing Costs:

  • copy of note or bond
  • copy of bank statement showing interest accrued up to the loan closing date
  • copy of bank statement or statement from institution where funds have been deposited, showing interest earned up to the loan closing date

    Engineering Services:

  • description of work performed, i.e., facility planning, plans and specs, inspection and other construction management
  • cost of work performed to date
  • amount of total payment due

    Please Note: Standard practice for engineering firms is to provide an invoice number, date of invoice, period in which work was performed, staff performing work, hourly rate, hours worked, mileage, meals and other direct expenses.

    Land Acquisition:

  • a copy of the deed or title
  • a copy of the cancelled check

    Construction Work:

  • partial payment request form or a payment application form for all awarded contracts
  • back-up documentation showing description of work, quantity, unit price, amount, work completed to date, percent completed, etc.
  • period in which work was performed
  • signatures from the OWNER, CONTRACTOR, and ENGINEERING FIRM

    Miscellaneous purchases of equipment or eligible construction costs not completed by the awarded contractor must be supported with an invoice.

    Please Note: Any interest on delayed payments by the municipality is ineligible for EIF payment. While such interest stipulations are common in agreements with engineering consultants, construction contractors and financial consultants, for EIF purposes these interest payments are ineligible.

    Miscellaneous/Administrative Costs:

  • municipality's name and address
  • invoice date and number
  • description of work/equipment/supplies

    Note: Those administrative costs incurred solely because of the project are eligible costs. Ineligible administrative costs include ordinary operating expenses of local government such as salaries and expenses of a mayor, city council members or city attorney.

    Closing Costs:

  • Bond Counsel and/or Financial Advisor name and address
  • date the services were rendered
  • how the service was connected to the EIF
  • amount of time spent on each service
  • hourly rate, if applicable

    Note: If the DNR identifies a portion of a project as ineligible, the municipality must be sure that bid documents clearly distinguish between the eligible and ineligible portions of contracts. Similarly, contractors in preparing their bills or invoices need to distinguish between the charges for the eligible portion of the project and the charges for the ineligible portion. Also, where a portion of the engineering, legal, or other work is deemed ineligible, invoices and/or other supporting documentation must clearly distinguish between the costs of the eligible and ineligible work. Costs applicable to an ineligible portion of a project cannot be claimed for EIF financing.

    The EIF will not accept invoices that are prepared on a memo note or scratch paper.

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    MAILING AND CONTACT INFORMATION

    To send a Request for EIF Loan Disbursement first class mail, use the following address:

    Environmental Improvement Fund Payments
    Department of Natural Resources
    Bureau of Community Financial Assistance - CF/8
    PO Box 7921
    Madison WI 53707-7921

    To send overnight mail, use the following address:

    Environmental Improvement Fund Payments
    Department of Natural Resources
    Bureau of Community Financial Assistance - CF/8
    101 S. Webster Street
    Madison, WI 53703

    Questions regarding payment requests or the disbursement of funds? Contact Maureen Hubeler at 608-266-0849 or Linda Miller at 608-267-0801.

    Last Revised: Tuesday March 24 2009
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