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FOREST SERVICE HANDBOOK
PORTLAND, OREGON
TITLE 2409.19 - RENEWABLE RESOURCE USES FOR
KNUTSON-VANDENBERG (K-V) FUND HANDBOOK
R-6 Supplement No. 2409.19-96-1
Effective July 10, 1996
POSTING NOTICE. Supplements are numbered consecutively by title and
calendar year. Post by document name. Remove entire document, if one exists, and
replace with this supplement. This is the first supplement to this handbook.
Document Name
2409.19,20
Superseded New
(Number of Sheets)
10
Digest:
Provides instructions for each forest to use when preparing the Annual K-V Balance
Reports.
ROBERT W. WILLIAMS
Regional Forester
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EFFECTIVE 07/10/96
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Page 2 of 10
FSH 2409.19 - RENEWABLE RESOURCE USES FOR
KNUTSON-VANDENBERG (K-V) HANDBOOK
R-6 SUPPLEMENT 2409.19-96-1
EFFECTIVE 7/10/96
CHAPTER 20 - COSTS, COLLECTIONS, AND ACCOUNTING
22 - ACCOUNTING TECHNIQUES
22.2 - Annual Review and Report of the K-V Balance. Units shall send in completed
worksheets 2 and 2a, separated by proclaimed unit, to Regional Office, Financial
Management (RO, FM) by approximately November 25 annually. When the
projected deficit balance for any "proclaimed unit" exceeds 10% of the September 30
cash balance, shall need to complete the bottom of Worksheet 2 explaining the
forest's plan to eliminate deficit by eliminating or reducing work, planning work out
of appropriated dollars, or correcting errors in the analysis. Remember that costs
for unfunded work as described in sections 05 and 21.26, cannot be projected in this
analysis. They must be programmed elsewhere or dropped, they do not belong on
the K-V analysis since they cannot be accomplished with KV funds.
Inflation factors for the current year's report are sent out via a separate message
prior to the time forests begin preparation of the report.
This analysis is designed to provide management with a reasonable estimate of the
K-V program funding needs, for each major work category, and determine if there
are adequate funds collected and projected to be collected to accomplish the planned
work. This is not an accounting report, although some accounting is needed. The
objective is to provide information whereby management can determine whether
program funding is, in general, adequate to accomplish remaining work.
Forests need to document all actions planned and taken as a result of the analyses,
which shall be made available during Regional Activity or Program Reviews.
22.21 - Format for Annual Forest Review. Use 4 years of cost data (the report year
plus the 3 prior fiscal years) to build an historical average unit cost that is used to
project the future costs of accomplishing the K-V program. This is a basic building
block for the annual analysis. The 4-year span represents a fairly complete cycle of
KV work; therefore, when the 4-year weighted average unit cost is applied to the
key attainment acres for ET24 and ET25, the result shall reflect unit program
needs.
While the 4-year average is still the basic benchmark value to apply against
remaining KV work, there may be occasions when a forest feels an alternative cost
should be used to make their projections more realistic within the overall concept of
reasonable accuracy. An example would be where a forest is moving toward natural
regeneration and away from contract planting and is thus anticipating a cost lower
than the historical data has established. If a forest feels that a unit cost, other than
the 4-year average, is more appropriate to the forest's analysis, then the forest may
project their K-V program needs using this alternative unit cost. Document the
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reason for establishing the alternate unit cost in a narrative and attach to the
analysis.
The data needed to complete the analysis is available at each forest. The following
are the primary sources for the information needed to complete the analysis:
1. KV Work Remaining. This information resides primarily with District
Silviculturists. Use the Trust Fund analysis report as of September 30, which is
provided by the RO, FM as a basic tool to help identify the timber sales where K-V
work remains to be done. Do not include sales that have not been awarded.
2. KV Cash Balance as of September 30. This information comes directly from
the Final Unit Financial Statement, Unobligated Balance Column. Also, add in as
a separate item the K-V accrued earnings and any opening minus balance
adjustments on the TSDF Worksheet that have not yet cleared.
3. KV ET24/ET25 Expenditures. This data is available from the Corrected
September 30 Unit Financial Statements.
4. Inflation Factors. Inflation factors are provided to forests by the Regional
Office at the time of the report and are posted to Worksheet 1, lines labeled
"inflation factor." These are designed to adjust past expenditure values to the
current year.
In addition, a future projected inflation factor is needed for Worksheet 1 under the
"unit cost projections" area. This is designed to project current unit costs to the
time that work shall actually be accomplished. Out year unit costs should be
projected at 4-5 percent per year to planned year of work, unless forests can justify
a higher rate due to local conditions. These are posted in items 12-18 of Worksheet
1.
5. Attainments. Obtain each district's attainment from Forest Attainment
Reports (ET24, MAR 19.2; ET25, MAR 20.2). The reforestation and TSI units to use
in the analysis are the same as the units used in the Forest Attainment Report. For
reforestation (ET24), the appropriate Activity Codes are ET241, ET242, ET24512
and ET243. For TSI (ET25), the Activity Codes are ET251, ET252, ET253, and
ET255. The definitions should be consistently used in Worksheets 1 and 3 so as to
provide continuity in the overall analysis.
6. Projected K-V Cash Collections. Use the Trust Fund analysis report as of
September 30, provided by the RO, FM. When computing projected collections yet
to be made, use the "Remaining" amount from the printout, unless the "Maximum
K-V to be Collected" amount is less than the "Planned" amount. In that case,
calculate the amount yet to be collected by subtracting the "Collected" amounts
from the "Maximum K-V to be Collected.
If it is known that there are significant overruns, underruns, or additional volume
on tree measurement sales that may have not been coded into TSA by September
30, use revised volumes in stumpage remaining computations. Another situation
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that adjustments to volume estimates may be appropriate is when the sale is in the
process of modification or cancellation of the sale or a portion of the sale due to
T&E. Use the special instructions to complete the formats shown in Worksheets 1,
2, 2a,and 3.
Special Instructions--Worksheet 1, 4-Year Unit Cost
Complete this at the Supervisor's Office (the format lends itself to a spreadsheet
application). Prepare a worksheet for both Activity Codes ET24 and ET25. Enter
district expenditure data for each fiscal year and inflate to the report year's dollars
using the applicable inflation factors. The 4-year average unit costs (in report year
dollars) can then be projected to out year values at the bottom section of the
worksheet. In effect, a table of values has now been created to analyze the K-V
collections. The results of the 4-year unit cost analysis for reforestation and for TSI
shall be used as a benchmark. The benchmark costs shall be used to determine if
the cost of planned work is consistent with available collections. The 4-year average
unit cost process incorporates both direct and indirect project costs, at the District
level, into the values developed for Reforestation (ET24) and TSI (ET25) programs.
When the table values are posted to the K-V Plan Profile (Worksheet 3), which shall
be completed for each timber sale, the projected needs for these two programs shall
be determined.
Forests may use other existing systems if they obtain the same results.
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EFFECTIVE 07/10/96
Rogue River
FOREST
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WORKSHEET 1
ANNUAL KV BALANCE SHEET ANALYSIS
4-YR UNIT COST WORKSHEET
(WEIGHTED AVERAGE @ 9/30/94)
Calculated Average Unit Cost for Each District
ACTIVITY CODE: ET24
(ET24/ET25)
ITEM
D-2
D-4
D-5
EXPENDITURES
l.a. FY-91 Expenditures 452.650
196,351 1,173,729
l.b. Inflation Factor
1.084
1.084
1.084
l.c. FYExp in FY- $'s
(line la x lb)
490,673
212,844 1,272,322
2.a.FY-92 Expenditures 543,285
228,064 985,728
2.b. Inflation Factor
1.053
1.053
1.053
2.c. FY- Exp in FY- $'s
(line 2a x 2b)
562,602
240,151 1,037,972
3.a.FY-93-Expenditures 602,809
197,738 685,742
3.b. Inflation Factor
1.025
1.025
1.025
3.c. FYExp in FY- $'s
(line 3a x 3b)
617,879
202,681 702,886
4. FY-94-Expenditures 924,529
186,074 934,875
5.Total Expenditures
2,595,68 841,751 3,948,054
(line lc+2c+3c+4)
3
ATTAINMENTS
(MAR# 19.2/20.2)
6. FY-91
1000
746
2798
7. FY-92
891
966
2555
8. FY-93
1523
877
2097
9. FY-94
619
713
1987
10. Total Attainment 4033
3302
9437
(line 6+7+8+9)
11. 4-YEAR AVERAGE $643.61
$254.92 $418.36
UNIT COST
(line 5 divided by line
10)
UNIT COST PROJECTIONS @ %/year
(Aye. Unit Cost Projected To Planned Year of Work)
12. FY-95(line llxl.0400)
699
265
435
13. FY-96(line llxl.0816)
696
276
452
14. FY-97(line llxl.1249)
742
287
471
15. FY-98(line llxl.1699)
753
298
489
16. FY-99(line llxl.2169)
783
310
509
D-6
TOTAL
752,626
1.084
2,548,356
1.084
786,579
449,922
1.053
2,762,418
2,197,999
1.053
473,768
439,103
1.025
2,314,493
1,952,392
1.025
450,081
479,529
2,189,956
1,973,527
2,525,007
9,575,445
2158
2161
2186
1692
8197
6702
6573
6683
5011
24969
$267.17
$383.49
278
289
301
313
325
399
415
431
449
467
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17. FY-00(line llxl.2654)
18. FY-01(line llxl.3160)
814
847
323
335
529
551
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338
352
485
505
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Special Instructions--Worksheet 2, K-V Balance Sheet Summary
This summarizes the results of the overall analysis. Prepare Worksheet 2a prior to
completing this Worksheet.
WORKSHEET 2
K-V BALANCE SHEET SUMMARY
Rogue River
Proclaimed Forest
FY 1996
(Round all entries to the nearest thousand dollars)
1. Unobligated K-V balance as of 9/30 of prior fiscal year.
(From Final Unit Financial Statement)
$14,668
2. Add any known earnings through September in ATSA. (TSA - 47702)
$ 17
3. Line 1 + 2.
$14,685
4. Add projected K-V cash collections for sales under
contract as of 9/30 of the prior fiscal year.
$13,370
5. Estimated total cash available for remaining FUNDED work.
(total of lines 3 + 4)
$28,055
6. Total remaining funded K-V work needs, from FS-2400-50
or equivalent.
$21,487
7. Line 5 minus line 6.
$ 6,568
8. Indirect costs not included in item 6 above.
(SO, RO, AND WO)
$ 8,051
9. Projected cash balance after performing all remaining
funded K-V work (line 7 minus line 8).
$(1,483)
Note: Transfer only that excess on line 9 that is less than or equal to monies
actually collected and on hand (line 3).
10. Dollars to be transferred to the WO by the RO.
$ -0-
I CERTIFY THAT THE CASH BALANCE SHOWN ON LINE 9 IS AN ACCURATE
STATEMENT OF CASH BALANCE FOR THIS PROCLAIMED NATIONAL
FOREST, AND THAT THE BALANCE IN EXCESS OF K-V NEEDS SHALL BE
REPORTED TO THE REGIONAL OFFICE FOR TRANSFER TO THE
TREASURY.
/S/Stevie Wonder
FOREST SUPERVISOR
11/01/96
DATE
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Following is our plan to eliminate the deficit shown on line 8:
1. Dollar value of work that can be eliminated or
reduced (Fish/Wildlife and overhead).
2. Dollar value of work you plan to program from
appropriated funds (Fish/Wildlife and overhead).
3. Dollar value of errors in the analysis
such as including work that is already
accomplished or no longer needed.
4. Total
716
699
67
1,482
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Special Instructions--Worksheet 2a, Supplemental K-V Balance Sheet Information
Complete this worksheet to split the costs of needed work between Class A and B
type sales, as well as between reforestation and other types of work, defined below:
Sale Class A. This category includes whole as well as partial units of existing
sales where felling has begun and, therefore, K-V activities are obligated.
Assume for analysis purposes that funds collected on these sales are to
discharge obligations incurred by the cutting activities.
Sale Class B. This is work planned to be done on sales, units, or parts of Class
A units, which are sold but felling activities have not yet occurred. Assume for
analysis purposes that funds needed to accomplish this work will be collected
when timber sale harvest activities take place.
Note: There are several ways to make a reasonable assignment of timber sales
to the Class A or Class B category. One suggestion is as follows:
Assign a timber sale to Class A if 50% or more of a sale has been
harvested or to Class B if less than 50% of the sale has been harvested.
The key is to be consistent in the analysis and to not make the analysis
unduly complicated.
Reforestation work. This refers to the "required" reforestation work on the
SAI plan as compared to the "non-required" work that could be performed.
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WORKSHEET 2a
PROCLAIMED FOREST Rogue River
SUPPLEMENTAL K-V BALANCE SHEET INFORMATION
(Round all entries to the nearest thousand dollars)
1. Projected reforestation work needs for Class A sales.
$ 2,568
2. Projected other work needs for Class A sales.
$10,555
3. Total projected work needs for Class A sales (line 1 + 2).
$13,123
4. Projected reforestation work needs for Class B sales.
$ 4,404
5. Projected other work needs for Class B sales.
$ 3,960
6. Total projected work needs for Class B sales (line 4 + 5).
$ 8,364
7. Total projected work needs for Class A and B sales.
(line 3 + 6; post to line 6 on Worksheet 2)
$21,487
8. Total projected indirect costs for Class A sales.
$ 4,873
9. Total projected indirect costs for Class B sales.
$ 3,178
10. Total projected indirect costs (line 8 + 9).
(post to line 8 on Worksheet 2)
$ 8,051
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Special Instructions--Worksheet 3, KV (SAI) Plan Profile
This is the worksheet from which the projected funding needs in both Sale Class A
and Sale Class B are developed. District Silviculturists determine the units of
remaining work on an individual timber sale and an estimate of when that work
will be accomplished. Do not include SO, RO/WO indirect assessments or items of a
non-project nature in these UNIT costs as they are handled as a separate item on
Worksheet 2. In order to ensure there is sufficient stumpage available, there is a
need to carry a total of project costs plus the indirect costs, but this total shall not
be carried forward on to the summary for Worksheet 3 - only the summary of the
project costs.
a. ET24 & ET25, Reforestation and TSI. The 4-year average unit costs, as
developed on Worksheet 1, or an alternative unit costs, if elected, shall be applied to
the remaining units of work. The extension of the data, acres x unit cost, shall
develop the funding needs for the sale in the ET24 and ET25 programs.
b. CWXX, Fish, Wildlife, Range, Soil, Water, Recreation Resources. Project
funding needs for other than the timber resource shall also be posted to the K-V
Plan Profile, by approved project, to establish the funds needed for these programs.
Project costs on the SAI plan may be used as the basis for estimating program
needs. SAI plan estimates can be updated if better cost estimates are now
available.
Worksheet 3 is basically a model for displaying the information needed to complete
the analysis of each timber sale. Forests may use other existing systems if they
obtain the same results. It is important that all elements of the plan profile be
included in the analysis.
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WORKSHEET 3
K-V (SAI) PLAN PROFILE
(Complete analysis for each sale)
DISTRICT: Ashland
SALE NAME: G-Man
FOREST: Rogue River
SALE CLASS: A B
(Circle one)
Analysis of work remaining:
1/
ACTIVITY
CODE
TITLE
NEEDS
UNITS
ITEM
2/
EST YEAR 4-YEAR
PROJECTED
REMAINING
OF ACCOMP UNIT COST
ET24
REFOREST PLANTING\
SEEDING \
SITE PREP /
(NAT)
/
ET25
TSI
CFXX
CWXX
FISH & WL PLANNED
PROJECTS
AS
PLANNED
YYXX
OTHER RES PLANNED
PROJECTS
AS
PLANNED
TOTAL SALE NEEDS
508,940
RELEASE\
PCT
\
FERT
/
PRUNE /
(TO BE TRANSFERRED TO THE SUMMARY)
TOTAL STUMPAGE AVAILABLE ON SALE 774,103
TOTAL NEEDS WITH INDIRECTS
636,175
1/ ET24- ACTIVITY CODES ET241, ET242, ET243
ET25- ACTIVITY CODES ET251, ET252, ET253, ET255
2/ From 4-Year Unit Cost Worksheet (ET24/ET25) or the alternative unit cost
established by the Forest if that option is used.
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