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FOREST SERVICE HANDBOOK
Portland, Oregon
6509.11k - SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
R-6 Supplement No. 6509.11k-93-4
Effective June 18, 1993
POSTING NOTICE. Supplements to this handbook are numbered consecutively.
Check the last transmittal sheet received for this handbook to see that the above
supplement number is in sequence. If not, obtain intervening supplement(s) at once
from the Information Center. Do not post this supplement until the missing one(s)
is received and posted. After posting, place the transmittal at the front of the title
and retain until the first transmittal of the next calendar year is received.
The last R-6 Supplement to this handbook was 6509.11k-93-3 (6509.11k,32).
Document Name
6509.11k,55-56.1
Superseded New
(Number of Sheets)
4
11
Page Code
11.52 thru 14.1--3
8
Digest:
Removes all R-6 supplement direction from Chapter 10 and relocates in sections 56
and 57.
56.1 - Provides background information on purpose of obligation reporting.
56.11 - Relocates information on laws relating to obligation reporting. Updates
information on reporting various types of obligations.
/s/ John E. Lowe
JOHN E. LOWE
Regional Forester
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FSH 6509.11k - SERVICE-WIDE FINANCE AND ACCOUNTING HANDBOOK
R6 SUPPLEMENT 6509.11k-93-4
EFFECTIVE 6/18/93
CHAPTER 50 - ACCOUNTING
55 - ACCOUNTING CODES AND REFERENCE TABLES.
55.4 - Account Codes. Follow these instructions when assigning management codes
and fire code numbers. These are national in scope and must not be deviated from.
1. The management/fire code series assigned to each region are as follows:
REGION
SERIES
REGION
SERIES
R-01
R-02
R-03
BIFC
R-04
P10000 - P19999
P20000 - P29999
P30000 - P39999
P40000 - P40999
P41000 - P49999
R-05
R-06
R-08
R-09
R-10
P50000 - P59999
P60000 - P69999
P80000 - P89999
P90000 - P99999
P00000 - P09999
When any of the above management codes are used and sent to NFC, the "P" tells
the system to automatically set up a pre-structured management code which will
contain the following accounting information:
FUND CODE
EFFS
ACCOUNT
XXXXX
WORK ACTIVITY CODE
PF12
SUB-UNIT
00
OTHER
PXXXXX
(X equals the last five digits of the management code)
When a "R" is used in the first character of the management code field, the system
will set up a pre-structured management code with the above information except
the work activity code will be "TS13" instead of "PF12". Instructions for use of the
"R" management code are contained in R-6 supplement to FSH 6509.11K, 33.13.
2. All fires that occur within Region 6 (including other agency fires within
the states of Oregon or Washington in which the Forest Service will be providing
resources for fire suppression) should be assigned a management/fire code number
as follows:
All ABC fires that are not trespass, state reimbursable, or non-statistical in nature
should be coded to management/fire code P60001.
All class D and larger fires, as well as trespass, state reimbursable, and statistical
fires will require the assignment of their own unique six digit fire number which
equates to the management code. It will be used by all participating Forest Service
units that provide resources to that fire so it is important to get it on the resource
orders, and so forth, and to pass it on through other lines of communication. The
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first digit of the 6 digit code will always be "P". The second digit will always be 6 as
the fire is occurring in Region 6. The last 4 digits should be assigned by the Fire
Forest for each fire that requires tracking of costs.
Each unit has only one series of numbers for fires. These numbers are to be
assigned sequentially as each incident occurs. Units should not restart each fiscal
year with the beginning number in their block of numbers. Continue in the current
fiscal year with the next number following the last one used in the prior year. Only
when the last number is used should the Unit restart its series.
To accommodate situations involving fires that extend beyond the end of the fiscal
year, do not start over with the first number in your series at the beginning of each
new fiscal year. Continue to use the same management/fire code in the new year.
Also use the same management code for new costs that are legitimate charges
against that particular fire. If they are legitimate charges against the prior year
management code then use the prior year identifier. In this manner the
appropriate fiscal year's funds are used to pay the bill and the fire costs will still
show against the same incident identifier. For example, assume a fire coded to
P63455 starts on September 25 and goes through October 5. In the new fiscal year
Forests would code new valid prior year charges to P63455Y (Y = applicable prior
year indicator) and code the new fiscal year charges to P63455.
The Region 6 block of management/fire code numbers has been assigned to units as
follows:
ABC
ALL
FIRE FOREST (#)
FIRES
OTHER FIRES
COLVILLE (21)
P60001
P60002-P60499
DESCHUTES (01)
P60001
P60500-P60999
FREMONT (02)
P60001
P61000-P61499
GIFFORD PINCHOT (03)
P60001
P61500-P61999
MALHEUR (04)
P60001
P62000-P62499
MT.BAKER-SNOQUALMIE (05)
P60001
P62500-P62999
MT.HOOD (06)
P60001
P63000-P63499
OCHOCO (07
P60001
P63500-P63999
OKANOGAN (08)
P60001
P64000-P64499
OLYMPIC (09)
P60001
P64500-P64999
ROGUE RIVER (10)
P60001
P65000-P65499
SISKIYOU (11)
P60001
P65500-P65999
SIUSLAW (12)
P60001
P66000-P66499
UMATILLA (14)
P60001
P66500-P66999
UMPQUA (15)
P60001
P67000-P67499
WALLOWA-WHITMAN (16)
P60001
P67500-P67999
WENATCHEE (17)
P60001
P68000-P68499
WILLAMETTE (18)
P60001
P68500-P68999
WINEMA (20)
P60001
P69000-P69499
*REGIONAL OFFICE (27)
P60001
P69500-P69899
CRGN SCENIC AREA (22)
P60001
P69900-P69990
RO-F&PS (27)
N/A
P69991-P69999
* Numbers should only be assigned by Regional Office/Northwest Coordination Center (NWCC) in
unusual situations, such as when providing resources to other agency fires that are not close to a
National Forest.
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The majority of fire codes should be assigned by the Fire Forest (or closest Forest in
the event of another agency fire). Some situations may require the NWCC to assign
a state reimbursable number because the state has ordered resources directly from
the NWCC. In those cases, the NWCC and R-6 Fiscal and Public Safety (F&PS)
shall work together to insure that a Fire Forest is assigned the responsibility for
gathering costs and billing for the fire as well as insuring that the Fire Forest gets
copies of the resource orders, and so forth. In certain fire situations, the Bureau of
Indian Affairs (BIA) may call several adjacent forests for orders rather than placing
all orders through one dispatch office. If this occurs, the BIA should relay the
structured code given from one forest dispatching office to the next forest
dispatching office that they are ordering resources from. Effected units should be
alert to this situation in order to avoid assigning two "P" management/fire code
numbers to one incident.
3. For fires that occur outside of Region 6 (including other agency fires
outside the states of Oregon or Washington).
All fire codes for these fires should be provided by the forest from the other region
that the fire is occurring on. If a Unit is not given an assigned number, or is given
an invalid number, immediately contact the other region or the NWCC. As an
example, if a Unit had crews dispatched to Montana and the fire code provided on a
resource order started with P5, the Unit would know right away the code was in
error as it should start with P1 (1 being the Region the fire is in). The NWCC
and/or F&PS shall assist Units in making sure the fire coding is correct.
To be consistent with national direction, Units should only be given fire codes that
begin with "P" series by other regions. In the event a code in the "R" series is
provided, change the fire code RXXXXX to PXXXXX.
4. Instructions for accounting and billing for state reimbursable, as well as
trespass, fires are located in R-6 supplement to FSH 6509.11K, 33.13.
56 - ACCOUNTING INSTRUCTIONS.
56.1 - Obligations. The monthly obligation report serves three main purposes. It is
used Nationally, along with all other Governmental, both military and domestic,
agencies reports, by the Department of Treasury and Office of Management and
Budget (OMB). Treasury includes the information on the reports when they
determine the amount of cash needed in short-term investments. Transaction code
4 (Accounts Payable and Accrued Liabilities - Others) identifies expenditures that
will become payable within the next 30 days. Treasury must have funds available
to pay these bills. It can be very costly to the Government if the Treasury has to
shift funds from long term investments before they are mature. A large
understatement of transaction code 4 items in conjunction with other factors could
cause a transfer to be necessary. At the same time, interest rates are better for
long-term investments than for short-term investments. An overstatement of
transaction code 4 items along with other factors could cause Treasury to shift
money from long-term investments to short-term investments too soon.
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At the National level, OMB controls apportionment. This refers to the rate of
obligation of funds. Dollar limits are placed on each Agency at a National level as
to how many dollars can be obligated during a specific quarter. Obligations
identified with transaction codes 3, 4, 5, 7, or 8 are all included for apportionment
purposes. Large purchase orders for the rent of buildings and equipment are
usually obligated in the first quarter. Many large construction contracts are
awarded during the last quarter. These are not problems, rather examples of how
obligations can fluctuate between the quarters. Normally, apportionment is not of
concern at the Forest level, but the knowledge that it is being watched explains why
we should use transaction code 9 (Commitments) properly, since it is not included
for upward reporting to the National level.
At the local level, the obligation report is used by management. The inclusion of
known obligations on a monthly basis increases the accuracy of budget projections
to the end of the year and provides a better historical trail for future budget
preparation. It is important that there be consistency in reporting long-term
obligations such as contracts, metered mail, and so forth. If these types of
obligations are not reported regularly each month, the project manager's statement
will fluctuate and be rendered unusable.
Transaction code 9 (Commitments) items are included on the transaction registers,
project manager statements, and the subunit summary. They are not included on
the fund control or financial statements and they are not included for upward
reporting to the National level. This transaction code should be used for such
things as in-service authorizations, requests for contract action, estimated future
purchases for facilitating services, and supplies, such as the undelivered portion of
metered mail, UPS, and FTS 2000 phones. Only those expenses that are
anticipated but do not have a binding contract or agreement are considered
commitments. Units must determine how detailed to get depending upon the dollar
amounts involved, and the cost effectiveness of reporting commitments. The use of
transaction code 9 allows a manager to earmark funds and reduce the balance of the
project manager's statement. Thus, these items need not be considered each month
since they have already been accounted for.
56.11 - Recording Obligations. The documentary evidence requirement for
government obligations, as referred to in the parent text, is located in 31 USC 1501.
In addition, the following laws are pertinent to the obligation of funds:
1. 16 U.S.C. 557a - The Secretary of Agriculture is hereafter authorized, in
connection with the administration of the national forests, to enter into contracts for
the procurement of services, materials, and supplies for the ensuing fiscal year,
prior to the passage of an appropriation therefor: provided that such contracts shall
aliquot the cost for such service by fiscal years and shall not be binding on the
United States as to that part for the ensuing year, unless and until an
appropriation applicable to the payment thereof is made; and provided further that
all such contracts shall by their terms provide that the obligation of the United
States is contingent upon the passage of an applicable appropriation, and that no
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payment thereunder will be made until such appropriation becomes available for
expenditure (June 30, 1932, c. 331, 47 Stat. 473).
2. 31 U.S.C. 1341 - An officer or employee of the United States Government
or of the District of Columbia may not (a) make or authorize an expenditure or
obligation exceeding an amount available in an appropriation or fund for the
expenditure or obligation or (b) involve either Government in a contract or
obligation for the payment of money before an appropriation is made unless
authorized by law (Public Law 97-258, September 13, 1982, 96 Stat. 922).
3. 41 U.S.C. 11 - No contract or purchase on behalf of the United States shall
be made, unless the same is authorized by law or is under an appropriation
adequate to its fulfillment, except in the Department of the Defense and in the
Department of Transportation with respect to the Coast Guard, when it is not
operating as a service of the Navy for clothing, subsistence, forage, fuel, quarters,
transportation, or medical and hospital supplies which, however, shall not exceed
the necessities of the current year
56.11b - Travel. Travel that begins in one fiscal year and continues into the next
fiscal year is an obligation of each fiscal year's funds based on travel costs incurred
in each fiscal year.
Unused common carrier tickets should be deobligated until the credit is received per
R-6 Supplement to FSH 6509.31, Chapter 2, Section 2.
56.11d - Employee Relocation Allowances and Benefits. If an authorization is
signed and dated September 29, all of the expenses initially authorized on the AD202 must be obligated for the year-end obligation report regardless of the fact that
no expenses have been incurred. An estimate needs to be generated for each item
authorized for the transfer based upon what the employee plans to do. Also, include
an obligation estimate for the Relocation Income Tax (RIT) for the transfer.
56.11f - Contracts. Before a contract can be recorded as an obligation, it must be
supported by documentation of a "binding agreement." Obligation rules vary
depending upon the type of appropriation being used; that is, continuing, annual, or
two-year appropriation. The two-year appropriations are considered to be a
continuing appropriation for the first year and an annual appropriation the last
year. Contracts paid from annual funds that involve indefinite quantities,
continuing requirements, or other long term contracts with severable arrangements
require a "contingency clause" as described in 52.232-19 of FSH 6309.32, Federal
Acquisition Regulation (FAR) to cover the cost of the following fiscal year's funds.
1. Construction. A construction contract is an obligation of the fiscal year
of award in the full amount of the award. If quantities stated are estimates,
obligate the total of the estimated quantities. As work progresses on the contract,
significant changes from estimated contract quantities require an adjustment in
obligations based on actual quantities or revised estimates. The obligation record
should also be changed when a contract modification (change order or amendment)
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is issued. Refer to item 1 of the parent text for additional information on obligating
contract modifications.
2. Service Contract Financed from Annual Fund.
(a) Specific Job. A service contract issued for a specific job to be performed
(such as an area to be cleared or planted) is an obligation of the year of award,
provided the work is scheduled to begin in that fiscal year. The job to be performed
must be a bona fide need of the fiscal year of award and must not be of a continuing
nature (such as garbage collection or janitorial service). Such a contract may
provide for payment for the entire job or for specified units of work (acre, mile, and
so forth). In special cases, such as long-term contracts, it may be written to cover
specific units of work to be performed in each of two fiscal years. If this is done, it
must contain the contingency clause. Obligation of funds is prorated on the basis of
work to be performed in each fiscal year. Funds to cover work of the next fiscal year
are obligations when they become available on or after October 1 of the new year.
To meet the bona fide need rule, work must begin in the fiscal year of award.
However, this is not to be construed to mean work must begin on the site. Actions
by the contractor in preparation of on-site work, such as organizing crews, pre-work
meetings, pre-work planning, buying supplies and equipment, moving equipment to
site, site inspection, and so forth, are all examples of types of actions leading up to
on-site work, and qualify as work when ensuring adherence to the principle of bona
fide need in determining which fiscal year of obligation. It is recognized there may
be instances where the starting date for scheduled work may be delayed due to
unusual circumstances and still be a proper charge to current year annual funds.
Pertinent factors for consideration are delays due to adverse weather, emergency
situations, and so forth. Such instances must be documented as to why the work
did not start as planned, and documentation must become a part of the contract file.
The same concept may be used when a consultant is preparing a presentation
(session) to be given early in the next fiscal year.
(b) Continuing Service (Including Equipment Rental). A service contract
issued for performance of a continuing service is an obligation of the fiscal year of
award, only for the number of units or amount of work performed that fiscal year.
Funds to cover this amount should be obligated upon award. If performance is
required in the subsequent fiscal year, the contract must contain a contingency
clause. Funds to cover work of the subsequent fiscal year are obligations when they
become available on or after October 1 of the new year. If the contract provides for
performance only, when and if requested by the Government, no obligation should
be recorded until such a request is made.
(c) Stewardship Contracts. The Comptroller General has held that the
question of whether to charge the appropriation current on the date the contract is
made or to charge the funds current at the time services are rendered, depends
upon whether the services are "severable" or "entire." A contract which is viewed as
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"entire" is chargeable to the fiscal year in which it was made, even though
performance may extend into the following year.
A multiyear contract to establish a tree orchard would normally be considered
"entire", as the intent is to establish a stand of trees in a given area. There may be
severable segments of work, such as preparing the ground, fencing, planting,
replanting, fertilizing, and so forth, but it is considered a single undertaking. No
single segment of the operation can be totally segregated from another.
(d) Guarantees. Service contracts may be written to provide for guarantees
of two types: availability and minimum. They should be obligated as follows:
(1) Availability Guarantee. Such a contract provides for payment of both
a specified guarantee and actual use. The guarantee under such a contract should
be obligated to funds on the basis of instructions in item 2 of the parent text
covering aircraft contracts. Under this procedure, the guarantee is obligated to the
fiscal year of award in the same ratio as the work planned for that fiscal year bears
to the total job. The remainder of the guarantee shall be obligated to funds of the
subsequent fiscal year when such funds become available. Accordingly, the
contingency clause must be included in the contract.
(2) Minimum Guarantee. Such a contract provides for a specified
minimum amount to be paid per unit of time. Obligate the guarantee in the same
manner as an availability guarantee. If the guarantee is subject to reduction as
work is performed, work done in one fiscal year which exceeds the computed
guarantee for that year will reduce the guarantee chargeable to the other fiscal
year.
For example, an equipment rental contract is written for the period May 1 through
November 30, guaranteeing a minimum of 700 hours of use (500 in current fiscal
year and 200 in new fiscal year). Upon award, an amount covering 500 hours of use
is obligated. If actual use for May through September is 580 hours, only 120 hours
worth of guarantee should be obligated to new year funds on October 1. However, if
the contract had specified a minimum guarantee of 100 hours per month, 200 hours
of guarantee would be obligated on October 1.
3. Service Contract Financed from Continuing Funds. Prior to
issuance of a service contract financed from continuing funds, management has the
option of determining how the obligation shall be established. If funds are
available, the entire contract may be obligated upon award. If funds are not
available, the obligation may be split between two years on the same basis as if
financed from annual funds. When this course is taken a contingency clause must
be included in the contract. This option may not be used in multiappropriation
financed contracts where both annual and continuing funds are used. In such cases,
the rule applicable to annual funds must be followed.
4. Supply Contract Financed from Annual Funds. This type of
contract is an obligation of the year of award, provided the supplies covered are a
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legitimate need of that fiscal year. The Comptroller General has ruled that an
order which must be placed near the end of one fiscal year for the supplies needed
early the next fiscal year also constitutes a bona fide need of the year the order is
placed (37 CG 155).
5. Supply Contract Financed from Continuing Funds. Supply
contracts may be obligated on the same basis as a service contract covered in item 3.
6. Defaulted Contract. A replacement contract is an obligation of the
same appropriation as the defaulted contract it replaces, provided the contract is
similar in size and scope to the original contract and the award has not been
unreasonably delayed. Additional costs of a replacement contract are also the
responsibility of the original appropriation. However, prior-year funds for a
contract terminated for convenience of the government are not available for
replacement contract (B-198074 of 7/15/81).
7. Supplemental Road Construction. Refer to 56.11v for obligation
instructions.
8. Contract Claims. Claims settled by the contracting officer, under the
disputes clause of a contract which have an effect on the contract obligation, must
be considered an obligation of the fiscal year of award if determined to be within the
scope of the contract. If determined to be outside the scope of the contract it is an
obligation of the fiscal year approved. For contracts that span two fiscal years, such
as equipment-rental contracts, the date of damage determines the fiscal year
chargeable. Damages are chargeable to the project responsible for the use during
the period of damage. Contract rental vehicle damage claims for cumulative dents,
nicks, and so forth, should be prorated to the projects and fiscal years based on the
total use during the contract period.
9. Contract Options. Option rights provided by contract which permit the
Government to procure additional quantities of supplies or service or to extend the
term of the contract are an obligation of the year in which the option is exercised.
Refer to item 1 of the parent text for guidance on obligation contract change orders
and amendments.
56.11g - Purchase Orders. The Regional Office (RO) sometimes prepares form AD838, Purchase Order, based on authorizations or requisitions received from units
and RO staff groups. For other than communication equipment, the following
indicates which office obligates the purchase order:
1. Regional Office Requests FS-6500-46's for Smokey Bear and
Woodsy Owl Orders and SF-182's for RO-Coordinated Training from Units.
Upon request, the units submit form FS-6500-46, or other documents mentioned
above, authorizing the RO to incur obligations. FS-6500-46's are sent to RO Fiscal
and Public Safety, (RO-F&PS) while SF-182's are sent to the staff group
coordinating the training. The National Finance Center (NFC) obligates the
purchase order and the unit shall obligate the FS-6500-46's or SF-182's. These
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types of purchase orders are normally charged to a reimbursable management code
at the RO.
2. Unit Sends Requisition to Regional Office. When units send
requisitions to the RO, they must show the unit funds chargeable unless advised
that RO funds will cover the cost. NFC obligates upon receipt of a purchase order
copy issued by RO Administrative Services. The RO-F&PS obligates if the
procurement is a type 45 purchase order or contract and the payment is to be made
by the RO-F&PS. However, if the RO contract designates the unit as the billing
and paying office, the unit is responsible for the obligation of funds.
3. Regional Office Staff Group Prepares Requisition. When a
requisition is prepared by a Staff Group for items to be shipped to a unit that shows
the RO staff group funds chargeable, either the NFC or RO-F&PS obligate
depending on type of purchase order.
56.11h - Lands and Structures. Obligate funds for land purchases only upon
written notification, such as an approved option or signed purchase agreement
(FSM 5422.6). In land purchase condemnation actions, when the just compensation
deposited with the declaration of taking is less than the final judgment awarded by
the court, the difference becomes an obligation at the time the court issues the
judgment. In addition, interest must be accrued and obligated monthly until the
judgment is paid.
56.11i - Claims. Also refer to contract claims, item 56.11f, item 8, for handling
obligations on contract claims. Other references include
FSM 6511.11i, item 2, Awards of Claims and Interest Under the Contract Disputes
Act, and section 73.82, Claims Under the Contract Disputes Act.
56.11k - Uniform Allowances. NFC reports uniform obligations when uniform
components are ordered by employees. Units may report the allowance for the year
as a commitment, transaction code 9, but need to reduce them monthly as NFC
records obligations or expenses for components ordered.
56.11m - Unemployment Compensation. Refer to R-6 Supplement to 57.1, exhibit
03 for an explanation of how these costs are obligated.
56.11o - Intra-Regional and Inter-Regional Transfer of Expenditures. During the
fiscal year, the ordering unit may report the FS-6500-46 as a commitment,
transaction code 9, if desirable. All FS-6500-46's issued in August or September
must contain a statement describing when work will be accomplished. At year-end,
the ordering unit is responsible to follow up with the performing unit or Region to
learn of the status of outstanding FS-6500-46's. The ordering unit shall obligate
supplies ordered or services completed as of year-end as transaction code 3 or 7, as
appropriate. The ordering unit should continue to obligate these costs into the new
fiscal year until they are transferred by the performing unit. The performing unit is
responsible to transfer these costs promptly. Normally, the performing unit would
need to report the costs as a credit obligation in the new fiscal year until they are
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transferred; however, this step is not required since the RO currently deobligates
the untransferred TS11 expenses on a region-wide basis in the new fiscal year until
they are transferred. If additional costs will be incurred in the new fiscal year to
complete the project, a new FS-6500-46 is needed, chargeable to the new fiscal
year's funds.
Refer to 56.11g for obligation instructions when a unit authorizes the RO to incur
certain obligations.
56.11t - Advances to Cooperators or Contractors. Obligations against a cooperative
work project cannot exceed the balance a cooperator has on deposit with the
Government. Refer to R-6 Supplement to 21.24 for obligation and payment
procedures when an obligation exceeds the cooperator's balance.
56.11u - Tuition for Employee Training. The parent text states tuition and related
fees become obligations on the date the school term begins. This is interpreted as
the first day of classes for each section of the school year, which is usually four
terms per year, or two semesters per year. Long-term training may include the
entire school year, and we may be billed in advance for the entire amount. In that
situation, the entire amount would be an obligation on the first day of classes.
56.11y - Cooperative Law Enforcement. A cooperative law enforcement agreement
should be obligated on the basis of an approved financial plan, which should always
be prepared on a fiscal year basis. If the plan covers services for the current fiscal
year, it should be obligated upon approval. If the plan is approved in one fiscal year
but covers services of the following year, it should be obligated on October 1 of the
following year. In such cases, it must include a clause providing that performance
in the year covered is contingent upon availability of funds for that year.
If the amount or level of service being performed is less than provided by the
agreement, and the projected expenditures for the remainder of the fiscal year
under the plan will not make up the difference, the unpaid obligation must be
reduced accordingly.