1909.13_40
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FOREST SERVICE HANDBOOK
DENVER, CO
FSH 1909.13 - PROGRAM DEVELOPMENT AND BUDGETING HANDBOOK
Region 2 Supplement No. 1909.13-95-1
Effective October 16, 1995
POSTING NOTICE: Supplements are numbered consecutively by Handbook
number and calendar year. Post by document name. Remove entire document and
replace with this supplement. Retain this transmittal as the first page of this
document. The last supplement to this Handbook was Supplement 1909.13-94-1 to
1909.13,40.
This supplement supersedes Supplement 1909.13-94-1 to 1909.13,40.
Document Name
1909.13_40
Superseded New
Number of Pages)
8
7
Digest:
42.1 - Updates the annual assessment rates for Perms and Trusts (P&T's) in the
table in exhibit 03.
ELIZABETH ESTILL
Regional Forester
R2 SUPPLEMENT 1909.13-95-1
EFFECTIVE 10/16/95
1909.13_40
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FSH 1909.13 - PROGRAM DEVELOPMENT AND BUDGETING HANDBOOK
R2 SUPPLEMENT NO. 1909.13-95-1
EFFECTIVE 10/16/95
CHAPTER 40 - GENERAL ADMINISTRATION
41 - ALLOCATION OF GENERAL ADMINISTRATION. Calculate Unit General
Administration (GA) assessment rate at the time the Program or Outyear Budget is
developed. Use this process to request GA funding for both Appropriated funds
(NFGA) and Permanent and Trust (P&T) funds.
Use the GA assessment process shown in exhibit 01 during the Program
Development or Outyear process. Any changes specific to a particular fiscal year
will be outlined in instructions for the Annual Budget Update process.
Exhibit 01 is an example of the Budget Execution Year GA calculation process.
Determine the amount of GA necessary to support the operations of the Unit for the
year. The total NFGA allocation plus total P&T-assessed GA plus negotiated GA
for SCSEP, Job Corps, and certain reimbursable agreements equals the total
available GA for the year. Reduce budget if:
1. Total funds are not sufficient to cover the needs.
2. Additional appropriated GA funds cannot be obtained through
reprogramming, or brokering.
Initiate an assessment for GA when the Regional PBMI allocation is received.
Adjust the Unit GA assessment calculation based on the final budget.
Exhibits 01 and 02 are an example for a unit calculation in the Program
Development and execution phases. Exhibit 01 represents the Program
Development phase and exhibit 02 represents the Execution phase.
R2 SUPPLEMENT 1909.13-95-1
EFFECTIVE 10/16/95
1909.13_40
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42.1 - Exhibit 01
Assessment Calculation for Annual Budget Update Process
The assessment method varies from that used in the execution year in that during
budget development, the total level of funding is not known for the P&T funds. Use
a "direct project" assessment rate rather a "total allocation" assessment rate to
arrive at total funding needs of the program. The guiding principle is parity in the
rate applied to all funds.
EXAMPLE:
Total Constrained Funds
Total NFGA Planned
CWKV Project Funds Planned
CWFS Project Funds Planned
SSSS Project Funds Planned
PEPE Project Funds Planned
$10,500,000
1,500,000
2,000,000
700,000
300,000
225,000
A.
Total constrained funds is now $10,500,000 (excludes GA).
B.
$1,500,000 (NFGA) divided by $10,500,000 equals 14.3% (.143) assessment
rate.
C.
$2,000,000 times .143 equals $286,000 CWKV-GA.
700,000 times .143 equals
100,100 CWFS-GA.
300,000 times .143 equals
42,900 SSSS-GA.
225,000 times .143 equals
32,175 PEPE-GA.
D.
Total GA for this level: $ 1,500,000 + $286,000 + $100,100 + $42,900 +
$32,175 equals $1,961,175.
E.
Total CWKV planned at each level:
Total CWFS planned at each level:
Total SSSS planned at each level:
Total PEPE planned at each level:
$2,000,000
$ 700,000
$ 300,000
$ 225,000
+ $286,00
+ $100,10
+ $ 42,900
+ $ 32,175
= $2,286,000.
= $ 800,100.
= $ 342,900.
= $ 257,175.
NOTE: These exhibits assume that CWFS is assessed at the same rate as all other
P&T's. Assess CWFS as displayed in this supplement, except when specific
agreements restrict the amount of overhead that may be charged.
R2 SUPPLEMENT 1909.13-95-1
EFFECTIVE 10/16/95
1909.13_40
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42.1 - Exhibit 02
A-Determination of Unit GA Assessment Rate:
1. Total GA Budget Needs (all funds) 1/
$ 2,200,000
2. Total Adjusted Allocations (all funds) 2/
15,355,000
3. Unit GA Assessment Rate
14.33%
($2,200,000 divided by $15,355,000 = 14.33%)
B-Calculation of Available GA:
1. Appropriated Funds
(including NFGA)
CWKV
CWFS 3/
SSSS
PEPE
QMQM
HTAE
WCWC 4/
$11,450,000
2,250,000
800,000
300,000
250,000
20,000
5,000
280,000
x
x
x
x
x
x
x
x
.1432
.1432
.1432
.1432
.1432
.1432
.1432
.1432
Subtotal Assessments
2.
Negotiated GA 5/
3.
Total GA Assessed
=
=
=
=
=
=
=
=
$ 1,639,600
322,200
114,600
43,000
35,800
2,900
700
40,100
$ 2,198,900
60,000
$ 2,258,900
C-Difference Assessed vs Planned:
Item B3 minus A3
$+ 31,197
D.
PBMI allocation of NFGA (Based on Annual Budget) $1,460,000
Actual execution year assessment needs above
1,619,030
Difference allocation vs need
$- 159,030
E.
Total NFGA difference planned vs available funds
$- 127,833
Note: If the NFGA difference figure is a deficit, reduce the GA budget accordingly
unless additional funding can be obtained through allocation, reprogramming, or
brokering actions.
Footnotes to exhibit 02
1/
This represents actual determination of GA needs on your Unit for the
Execution year involved. Due to various changed conditions, the total needs may be
different from that projected during the annual budget development. When
developing actual GA budget needs, refer to current direction of GA versus project
financing. An example is the latest Agency budget explanatory notes.
R2 SUPPLEMENT 1909.13-95-1
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42.1 - Exhibit 02--Continued
2/
For assessment purposes, adjust allocations as follows:
(a) 100% deduction for each contract which is in excess of $250,000 in cost. No other contract
deductions are allowed.
(b) Base Assessment of Land Purchase funds on L&WCF "administrative funds" only, therefore, no
adjustments for land payments are needed.
(c) Deduct all State Payments 100% from S&PF funds.
(d) Deduct the Ranger District portion of the WCF allocation (see 3/ below).
(e) Exclude all funds for which no assessment is to be made; that is, SCSEP, Job Corps, Purchaser
Credit, certain Emergency and Transfer funds, and so forth.
(f) Adjust the CWKV, CWFS, and SSSS programs (a) for any amounts of obligational authority in
excess of that which the Unit projects it can use, and (b) for overassessments of these funds which
occurred in the previous year due to program reductions without a corresponding reduction in GA
expenditures. Any overexpenditure of GA against these funds in the previous year requires a
corresponding reduction in the amount of GA available in the current year as determined by the
assessment process (see ex. 03). In order to facilitate reviews and audits, Units should maintain adequate
documentation of this process with their GA records.
3/
Use the standard formula applied for all P&T funds to CWFS unless other
overhead rates are stipulated or mandated in the cooperative agreement.
4/
Continue to adjust WCF so that no assessment is made for the Ranger District
portion of the GA budget. The example in exhibit 01 assumes that 70% of the
GA budget applies to the Supervisor's Office ($400,000 X .70 = $280,000). This
represents the adjusted allocation figure against which the assessment rate is
applied.
5/
The term "negotiated GA" is used to describe certain funds where legal,
administrative, or other factors limit the amount of funding which can be
tapped from these programs for GA or other administrative costs. Some
examples are: Job Corps Program Direction Funds, Senior Citizens Program,
certain reimbursable agreements, and so forth. For these programs an amount
for GA is worked out based on "what the program will bear" and what seems
reasonable.
R2 SUPPLEMENT 1909.13-95-1
EFFECTIVE 10/16/95
1909.13_40
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42.1 - Exhibit 03
Adjustment To Current Year Assessment For Prior Year Expenditures
Use the following method in Region 2 for adjusting GA to avoid "double dipping" in
P&T funds. This adjusts the assessments on an expenditure basis which equates to
the same method used in assessing the funds. This is the most accurate and
dependable method and should be used uniformly throughout the Region.
KV Scenario--Example National Forest
FY 91 GA assessment rate was 19.41% = 80.59% (100% less 19.41% rate).
FY 91 expenditures from Statement of Obligations:
KV Project charges
KV GA charges
Total KV charges in FY 91
$1,212,210
281,720
$1,493,930
Calculation:
$1,212,210 = $1,504,170 equals theoretical ceiling needs based
80.59%
on direct project funds used plus GA amount calculated
on direct project funds used.
$1,504,170 less $1,212,210 = $291,960 GA amount
Double-check: $1,504,170 X 19.41% = $291,960
This Example National Forest over expended KV-GA during FY 1990 by $740,
which must be applied (reduce) the FY 1991 allowable GA dollars ($291,960 - $740
prior year) = $291,220 available for FY 1991. Based on project expenditures of
$1,212,210, GA available (adjusted by the $740 from FY 90) is $291,220. Since GA
used in FY 91 was actually $281,720, the amount available was not overspent and
therefore no "double dipping" occurred. The amount of KV GA available was
actually underspent by $9,500.
Summary:
There are two adjustment requirements in the GA assessment of P&T funds:
(1)
Reduce current year ceiling by excess needs before assessing (ex. 02).
(2)
Reduce GA available by above direction for PY overcharges (ex. 03).
R2 SUPPLEMENT 1909.13-95-1
EFFECTIVE 10/16/95
1909.13_40
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42.1 - Exhibit 03--Continued
Washington and Regional Office Assessment Rates for Indirect Expenses.
(1)
Indirect expense assessment rates include Brush Disposal, CWFS-KV, CWKVOther, and Salvage Sale Funds.
(2)
Include Washington and Regional Office rates to assessment applied to Forest
planned direct project obligations. This includes timber sale appraisals, SAI
plans, fuel treatment plans, and cooperative agreements to determine total
collection amounts.
(3)
Each Forest must compute Supervisor's Office and Ranger District indirect
expenses assessment rates and publish a forest supplement which covers
assessment rates at all levels. Express indirect expense assessment rates as a
percentage of planned direct project obligations.
(2)
The rates become effective immediately. The effective date is not mandatory
for timber sale appraisals and cooperative agreements that are in the final
stages of preparation on that date.
Region 2 Assessment Rates for WO and RO Indirect Expenses
(expressed as a percentage of the adjusted FY 1995 R-2 planned program level)
Appropriation
% WO
% RO-GA
% RO Programs
% Total
CWFS-KV
3.01
3.26
1.48
7.75
CWFS-Other
0.00
0.00
0.00
0.00
Brush Disposal
6.57
2.55
7.52
16.64
Timber Salvage
2.51
4.70
6.96
14.16