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1/31/79 AC 150/5900-18 CHAPTER 5. GRANT PAYMENT PROCEDURES 50. GENERAL. Grant payments are made to sponsors by one of the three following methods: letters of credit, advance by Treasury check, or reimbursement by Treasury check. 51. LETTER OF CREDIT. A letter of credit is an instrument certified by an authorized official of the FAA which authorizes the sponsor to draw funds when needed from the Treasury Regional Disbursing Office. The procedures to be followed when utilizing the letter of credit method can be obtained from the local FAA field offices. The letter of credit should be the prescribed method of payment when all the following conditions exist: a. When there is or will be a continuing relationship between a sponsor and the FAA for at least a 12-month period and the total amount of advances to be received within that period is $120,000, or more. b. When the sponsor has established or demonstrated the willingness and ability to establish procedures that will minimize the time elapsing between the transfer of funds and their disbursement. c. When the sponsor's financial management system meets the standards for fund control and accountability by the Office of Management and Budget. 52. ADVANCE BY TREASURY CHECK. An advance by Treasury check is a payment made by a Treasury check to a sponsor upon request prior to the sponsor being billed for services or prior to the services being performed. This method shall be used when the sponsor meets all the requirements specified in paragraph 51 except those in paragraph 51a. 53. REIMBURSEMENT BY TREASURY CHECK. A reimbursement by Treasury check is a payment made to a sponsor with a Treasury check upon request for reimburse- ment. This method shall be used when the sponsor meets all the require- ments specified in either or both of paragraphs 51b and c, and the services have been performed and the sponsor has been billed (but not necessarily paid) for the services. 54. REQUESTS FOR PAYMENT. The Request for Advance or Reimbursement, FAA Form 5100-61, is the standard form to be used in requesting a grant payment except when a letter of credit is authorized. A sample completed form is included in Appendix 1, Exhibit 5. The three columns on this form shall be subdivided into contractual, administrative, and force account expenditures, as appropriate. Sponsors are authorized to submit requests for advances or reimbursement on a monthly basis. However, advances shall be limited to the minimum amounts required to carry out the purpose of the grant. In this regard, funds shall be advanced to a sponsor as close as administratively feasible to the actual disbursements. In those situations Chap 5 Par 50 27