R1 SUPPLEMENT 2409.19-2003-1
EFFECTIVE DATE: 12/31/2003
DURATION: This supplement is effective until superseded or removed.
2409.19_20
Page 1 of 5
FSH 2409.19 – RENEWABLE RESOURCE USES FOR KNUTSON-VANDENBERG (K-V) FUND
HANDBOOK
CHAPTER 20 – COSTS, COLLECTIONS, AND ACCOUNTING
21.11 – Direct Costs and Inflation
Units must collect sufficient K-V funds to cover all direct project costs and inflation. Direct
project costs usually occur at the District level and may be readily identified with a particular
project or activity on the ground. Direct costs include expenses associated with employees
working directly with the K-V Fund program (at all levels) as well as employees involved in
planning, coordinating, directing, or overseeing the program. Direct costs include, but are not
limited to:
1. Personnel costs for employees working on some part of the Trust Fund program,
including, salary and benefits, travel, training, unemployment, and workers compensation.
2. Other costs associated with employees involved in the Trust Fund program, such as
office and other facility space, computer equipment, and utilities.
3. Material, supply, and equipment costs incurred for the Trust Fund program.
4. Procurement contract, law enforcement, contract, and contract supervision costs
incurred for the Trust Fund program.
Adjust direct costs by the expected rate of inflation from the date of preparation of the Sale Area
Improvement (SAI) plan to the planned year of accomplishment.
21.12 - Indirect Costs
Collect sufficient K-V funds to cover all indirect costs. These are costs not specifically
identifiable with, or traceable to, any specific output. These costs include the KV share of:
1. Personnel costs, including salary and benefits, travel, training, unemployment, and
workers compensation, associated with the following employees:
a.. General management personnel, including the Chief, Deputy Chiefs, Regional
Foresters, Station Directors, Forest Supervisors, District Rangers, and Deputies
associated with these positions, as well as employees associated with the immediate
offices of general management personnel;.
b. Business management personnel, including Administrative Officers, general office
management, Civil Rights, Acquisition Management, Human Resources, and
Information Systems.
c. Financial analysis, fiscal and accounting services, and budgeting personnel.
R1 SUPPLEMENT 2409.19-2003-1
EFFECTIVE DATE: 12/31/2003
DURATION: This supplement is effective until superseded or removed.
2409.19_20
Page 2 of 5
FSH 2409.19 – RENEWABLE RESOURCE USES FOR KNUTSON-VANDENBERG (K-V) FUND
HANDBOOK
CHAPTER 20 – COSTS, COLLECTIONS, AND ACCOUNTING
2. Other costs associated with the previously listed employees, such as office and other
facility space, computer equipment, and utilities; and
3. Material, supply, and equipment costs associated with the previously listed employees.
21.13 – Calculations per Sale Area Improvement Plan
1. If a sale value has increased, Forests should consider the following as early as
possible:
a. Refer to section 13.6 – Exhibit 01 and use the Region 1 and 4 Trust Fund Policy
funding priorities for timber receipts.
b. Costs may be updated to reflect the latest actual unit or project costs plus updated
inflation factor.
c. Un-financed work that was approved on the original K-V plan may be documented
as financed. Update collection percentages entered in Automated Timber Sale
Accounting System (ATSA) to reflect the new amounts.
d. Additional work not shown on the K-V plan, but identified by the ID team and
original environmental analysis, may now be considered. The line officer may
reevaluate the priorities and document the additional work. Refer to parent text,
sections 04.22 and 04.23, and regional supplement, section 13.6 for guidelines.
2. If sale value has decreased:
a. Refer to section 13.6 – Exhibit 01 and use the Region 1 and 4 Trust Fund Policy
funding priorities for timber receipts.
b. Costs may be updated to reflect the latest actual unit or project costs plus updated
inflation factor.
c. Some work previously approved and funded on the original K-V plan must now be
shown as un-financed. Begin un-financing projects that are lowest priority and work
up the priority list. Update collection percentages entered in Automated Timber Sale
Accounting System (ATSA) to reflect the new amounts.
21.22a – Cost Computations
Base costs on a running 3-year average, update annually and adjust for project-specific
conditions. Include in the SAI plan narrative the project costs for individual treatments in
current dollars, accomplishment, including the indirect assessment rate.
R1 SUPPLEMENT 2409.19-2003-1
EFFECTIVE DATE: 12/31/2003
DURATION: This supplement is effective until superseded or removed.
2409.19_20
Page 3 of 5
FSH 2409.19 – RENEWABLE RESOURCE USES FOR KNUTSON-VANDENBERG (K-V) FUND
HANDBOOK
CHAPTER 20 – COSTS, COLLECTIONS, AND ACCOUNTING
Computations of project treatment costs should show, for example, all costs for supplies,
materials, equipment use, travel, salary and benefits of project personnel, and contracts. Base
these costs on standard rates or local experience.
21.22b - Inflation Rate
Inflation rates on K-V plans will be based on the national economic forecast prepared by the
Office of Management and Budget (OMB). Annually, the Regional Economist will update the
factors to be used. These coefficients are based on current Gross Domestic Product (GDP)
deflator data out to year 2007. For years beyond 2007, a 1.019 percent annual inflation rate from
2008 to 2017 is used. Update these coefficients annually according to parent text section 04.21.
These inflation coefficients supercede the cost adjustment indices in Region 1 FSH 2409.22,
section 21.5.
21.22b – Exhibit 01
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
CALENDAR
YEAR
INFLATION
COEFFICIENT
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
1.0000
1.0171
1.0353
1.0550
1.0751
1.0955
1.1163
1.1376
1.1592
1.1812
1.2036
1.2265
1.2498
1.2736
1.2977
1.3167
ENTER IN
PLANZ (R1)
& KV (R4)
No entry
1.71
3.53
5.50
7.51
9.55
11.63
13.76
15.92
18.12
20.36
22.65
24.98
27.36
29.77
31.67
Source: Historical Tables, Budget of the U.S. Government, FY 2003, Table 10-1.
http://www.whitehouse.gov/omb/budget/index.html.
R1 SUPPLEMENT 2409.19-2003-1
EFFECTIVE DATE: 12/31/2003
DURATION: This supplement is effective until superseded or removed.
2409.19_20
Page 4 of 5
FSH 2409.19 – RENEWABLE RESOURCE USES FOR KNUTSON-VANDENBERG (K-V) FUND
HANDBOOK
CHAPTER 20 – COSTS, COLLECTIONS, AND ACCOUNTING
Collections made today for future costs are based on the current cost of the item multiplied by
the coefficient for the year when the costs will occur. For example, an item with a cost of $1.00
in 2003 is expected to cost $1.1163 ($1.00 x 1.1163) in 2009.
21.22c – Indirect Costs
When calculating the annual assessment against K-V funds based on the Cost Pools, apply the
cost of the current year’s assessment in the SAI plan.
22 - ACCOUNTING TECHNIQUES
22.2 - Annual Review and Report of the K-V Balance
The Regional Financial Resources Staff shall prepare and process an FFIS BV, Accounting
Adjustment Voucher, transferring the excess K-V funds to the Washington Office.
22.4 – Timeframes
Most SAI work can be done within 5 years following sale closure. However, some work may
take longer than 5 years to complete. Washington Office direction states that it is the
responsibility of the Regional Forester to establish specific guidelines as to when K-V funds may
be spent after 5 years from sale closure date. The time limit to complete SAI work is extended
from 5 to 10 years for the following activities:
1. Those reforestation examinations needed to evaluate stocking until the harvested area
is either certified or scheduled for another reforestation treatment. (This does not infer or mean
the 5-year regeneration policy will not be followed.)
2. Monitoring for resources other than timber may continue for longer than 5 years to
collect adequate data. This does not infer an open ended, automatic approval for monitoring all
K-V other resource projects; only those needed beyond 5 years to monitor and collect data to
assess the success of a specific K-V funded project approved and funded on plans.
3. Management of use in an area must sometimes continue for periods longer than 5
years to be effective.
4. Noxious weed surveys.
All other funded K-V projects must be completed within the 5-year time limit (5 years from the
date on the purchaser closure notification letter). Any exceptions to this must be requested in
writing, reviewed and approved by the Regional Forester.
R1 SUPPLEMENT 2409.19-2003-1
EFFECTIVE DATE: 12/31/2003
DURATION: This supplement is effective until superseded or removed.
2409.19_20
Page 5 of 5
FSH 2409.19 – RENEWABLE RESOURCE USES FOR KNUTSON-VANDENBERG (K-V) FUND
HANDBOOK
CHAPTER 20 – COSTS, COLLECTIONS, AND ACCOUNTING
The following criteria will be used to determine whether or not a specific project warrants
consideration for extension of time limit:
1. The request for extension must occur within 5 years of sale closure or at least prior to
the next fund balance reporting period after the 5 years has expired. Districts have no authority
to hold K-V funds collected on a sale beyond 5 years unless the funds are being held for one of
the activities stated in this supplement or the Regional Forester has granted an exception.
2. The activity must have been funded on an approved SAI plan prior to sale closure.
The activity must have been identified as an eligible project for funding through K-V collections
in the environmental assessment, impact statement, or an amendment to the original National
Environmental Protection Act (NEPA) document. The activities must be within the scope of
appropriate activities for expenditure of K-V funds.
3. The reason for requesting an extension of the time limit must be articulated as a
specific, changed condition from what was planned. It should be demonstrated that rescheduling
within the time limit was not practical to meet the time limit.
Extensions beyond the 5-year timeline should be viewed as the exception rather than the rule.