KNF SUPP
FSH 2409.19-09-01
Page 1 of 3
FOREST SERVICE HANDBOOK
PINEVILLE, LA
FSH 2409.19 – RENEWABLE RESOURCE USES FOR KNUTSON-VANDENBURG (K-V)
FUND HANDBOOK
CHAPTER 20 – COSTS, COLLECTIONS, AND ACCOUNTING
Supplement No.: KNF 2409.19-09-01
Effective Date: February 5, 2009
Duration: Effective until superseded or removed
Approved: ROBERT E. LEE
Forest Supervisor
Date Approved: February 5, 2009
Posting Instructions: 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.
New Document(s):
KNF Supplement 2409.19-09-01
3 Pages
Superseded Document(s):
KNF Supplement 2409.19-08-01
4 Pages
Digest: Updates Overhead Assessment Burden Rates for CWKV and SSSS
KNF SUPPLEMENT FSH 2409.19-09-01
EFFECTIVE DATE: February 5, 2009
DURATION: Effective until superseded or removed
FSH 2409.19-09-01
Page 2 of 3
FSH 2409.19 – RENEWABLE RESOURCE USES FOR KNUTSON-VANDENBURG (K-V) FUND
HANDBOOK
CHAPTER 20 – COSTS, COLLECTIONS, AND ACCOUNTING
21.11 – Direct Costs and Inflation
The following assessment (burden) rates have been established for FY 2009 for CWKV and SSSS for
Kisatchie NF. These rates are effective January 16, 2009 until new rates are established in FY 2010.
These rates are to be used for SAI and Salvage Plans, as required, ensuring adequate collections are
available for planned project work plus indirect costs. Failure to include the appropriate overhead
rates along with accurate up-to-date unit costs for direct project needs could result in understated Plan
needs, which in turn, will lead to a significant decrease in cash balances in these trust funds. Overhead
is no longer collected on CWF2 agreements for Erosion Control or Road Maintenance from timber
sale contracts.
Rates are calculated using a 3-year average of direct program costs and S.O. indirect costs. To
compute the collection rate, all costs not directly attributed to project activities are divided by all costs
that are. The indirect portion in cost pools is included in the National rate.
All charges at the District level are considered direct costs and should be considered when developing
the District's unit cost (per acre/mile) for SAI/Salvage Plans. Likewise, S.O. charges outside the cost
pools are also considered direct. Therefore, the S.O. overhead rate will be entered in FACTS as
DIRECT overhead rate and the National overhead rate will be entered in FACTS as INDIRECT
overhead rate.
Maintaining a planned level of direct costs is key in order for indirect costs to stay below the 20% cap,
i.e., lower total expenditures equals higher indirect rate.
Inflation Rates. In order to have adequate CWKV and SSSS funds available to accomplish project
work, it is necessary to plan an inflation rate into your SAI and Salvage plans for future work. An
inflation factor is only valid as it relates to stating one year's costs in terms of another; for example,
converting 2009 dollars to 2010 dollars, etc. For CWKV, careful consideration should be given to the
appropriate year of expenditure prior to applying the inflation factors. The following inflation factors,
derived from the program development process and OMB’s economic assumption package, should
provide some guidance along these lines in developing your SAI and Salvage plans. However, if
better figures are available, based on local conditions or information, then use them. Document the
source of the rates used in the plan narrative section.
BASE YEAR
2009
2009
2009
2009
2009
2010
2010
2010
2010
2010
EXECUTION YEAR
2009
2010
2011
2012
2013
2010
2011
2012
2013
2014
INFLATION RATE
3.0000
3.0000
3.0000
3.0000
3.0000
3.0000
3.0000
3.0000
3.0000
3.0000
KNF SUPPLEMENT FSH 2409.19-09-01
EFFECTIVE DATE: February 5, 2009
DURATION: Effective until superseded or removed
FSH 2409.19-09-01
Page 3 of 3
FSH 2409.19 – RENEWABLE RESOURCE USES FOR KNUTSON-VANDENBURG (K-V) FUND
HANDBOOK
CHAPTER 20 – COSTS, COLLECTIONS, AND ACCOUNTING
WORKSHEET FOR CALCULATION OF CWKV AND SSSS O/H RATES
(Using 3-year Average obligation method from WO PBA)
FY2006
CWKV
SO Direct from FFIS (Staff program Mgmt)
OWCP/UCI
TOTAL
Forest direct obligations (FFIS spent on Districts)
Forest Direct obligations (seedlings that are included
in Districts SAI plans)
TOTAL
FY2007
FY2008
29,933
20,054
49,987
308,396
17,824
326,220
263,847
18,006
281,853
200,726
18,628
219,354
578,840
766,995
804,954
716,930
44,241
623,081
16,305
783,301
15,652
820,606
25,399
742,329
FY09 SO Overhead Calculation
FY09 National Published Overhead Rate
Total actual collection rate for WO/RO/SO to build
into SAI Plans:
29.55%
35.70%
65.25%
FY2006
SSSS
SO Direct from FFIS (Staff Program Mgmt)
OWCP/UCI
TOTAL
Forest Direct obligations (FFIS spent on Districts)
AVERAGE
FY2007
FY2008
AVERAGE
----
----
2,798
-2,798
933
-933
19,914
24,118
17,608
20,547
FY09 SO Overhead Calculation
FY09 National Published Overhead Rate
4.54%
71.20%
Total actual collection rate for WO/RO/SO to build
into SSSS Plans:
75.74%