Fiscal Year 2003Fiscal Year 2003Budget OverviewBudget Overview

Debbie Curtis

Budget Team Leader

April 30, 2003

UNIFIED BUDGETUNIFIED BUDGET

FA

Social Security Trust Fund

Treasury

General Fund

Mandatory

TA

FA

Direct

Discretionary

Reimbursable

Direct

Reimbursable

TA

Direct

Reimbursable

Direct

Reimbursable

ON-BUDGETOFF-BUDGET

What are Mandatory Funds?What are Mandatory Funds?

Funds available to persons who meet certain requirements.

Includes all CCC funded programs.

Accounts for about 2/3 of all government spending.

Amount is included in the authorization;

Congress does not have to act in order for funds to be available.

Controlled by “Pay-As-You-Go” (PAYGO)

Includes: Farm Price Supports.

What are Discretionary Funds?What are Discretionary Funds?

13 annual appropriation acts. Congress must act in order for discretionary

funds to be available. If not, no obligations may be incurred.

Accounts for about 1/3 of all government spending.

Includes All NRCS Appropriations. Controlled through Spending Caps.

Direct Funds – how does NRCS get them?Direct Funds – how does NRCS get them?

Direct funds come from NRCS appropriations:– Conservation Operations– Watershed Surveys and Planning– Watershed & Flood Prevention Operations– Resource Conservation & Development– Watershed Rehabilitation Program

Some of the direct funds come from transfers from CCC and other Federal Agencies:– Farm Security and Rural Investment Program– Rural Abandoned Mine Program

Reimbursable Funds – Reimbursable Funds – where does NRCS get them?where does NRCS get them?

Reimbursable funds are received from sources other than appropriations or transfers from other federal agencies.

Sources include:

– Other USDA Appropriations– Other Federal Appropriations– State & Local Government– Private Entities

FY 2003 Discretionary FundsFY 2003 Discretionary Funds

Conservation Operations Watershed and Flood

Prevention Watershed Surveys & Planning Watershed Rehabilitation Resource Conservation &

Development TOTAL

$825,004,000

$110,000,000

$11,197,000

$30,000,000

$51,000,000

$1,027,201,000

FY 2003 Mandatory FundsFY 2003 Mandatory Funds

EQIP FPP WHIP GRP GSWC Klamath Basin WRP CSP TOTAL

$695,000,000

$100,000,000

30,000,000

$85,000,000

$45,000,000

10,136,000

240,000,000

3,700,700

$1,208,836,000

What does direct charge mean?What does direct charge mean?

Title 31 of the United States Code (1301(a)) requires that all costs associated with implementing a program to be charged to the benefiting program.

Examples include: Salary

Benefits

Travel

Training

Other Indirect Costs

What is so hard about direct charge?What is so hard about direct charge? Much more “management” involvement required.

Many employees work on several programs.

Many costs benefit multiple programs.

– General managers and administrative costs

– Utilities and communications

– Supplies

– State Office and Service Center rent

– Printing

– Postage, NFC and FFIS costs, etc.

How does NRCS manage the difficulties How does NRCS manage the difficulties associated with direct charge?associated with direct charge?

NRCS implemented “offset” policy many years ago. “Offset” allows costs to be “charged as budgeted” based on the following assumptions:

• Allocations are converted to fundable staff years, by program.• Fundable staff years, in each program, are converted to

performance goals.• Performance goals are incorporated into business plans.• Performance plans are monitored to ensure that the proper

work is being performed and corrective action is taken (if necessary) to ensure that goals are being met.

• Adjustments are made to the performance plan whenever an allowance holder receives a large change in their allocation that affects fundable staff years, such as EWP funds made available in March.

Does everyone agree that “offset” Does everyone agree that “offset” satisfies these requirements?satisfies these requirements?

A GAO audit of NRCS titled “Additional Actions Needed to Strengthen Program and Financial Accountability reported: …”the policy of charging as budgeted and not as worked often misstates a project’s costs by underestimating the costs to one account and overstating the costs to another….”

(GAO/RCED-00-83 dated April 2000)

FY 2003 Fiscal GuidanceFY 2003 Fiscal Guidance

Initial allowance letters to STC’s

1. Limit obligations to amount available

2. Use funds as intended by Congress

3. Assure that planning is charged to CTA

4. Encourage the use of TSP’s

5. Assure equity in program delivery

6. Assure that obligations align with actual costs of program

7. Track Congressional earmarks

8. Assure accurate and timely reporting of obligations

9. Assure accurate and timely reporting of performance

10.Monitor obligations in Farm Bill programs—these funds expire 9/30/03

More Guidance

WebTCAS Actual

Hours

Paid

Actual

Hours

Worked

ACRES FFIS (NFC)

•Program•Activity•Modifier•County

Assigned

Fund

Code

Internal Decision Making

Official External

Reporting(Audited Annually)

What is “cost” in CIS reports?What is “cost” in CIS reports?

Salary and benefit cost data -- WebTCAS/ACRES– Includes dollars for actual hours worked (hourly rate

times hours worked), by program/activity/modifier as entered in TCAS by an employee for:

Basic pay hours worked Credit hours worked Comp time worked Overtime worked

Support data -- obligations recorded in the accounting system (FFIS) in “support” object classes plus lump sum leave, awards, and agreements .

What is an “obligation” in CIS reports?What is an “obligation” in CIS reports?

Salary and benefit obligation data -- FFIS– Includes dollars obligated for actual hours paid, by

fund code, as entered in the WebTCAS master file for: Basic pay hours paid (includes paid leave) Credit hours paid Comp time paid Overtime paid

Support data -- obligations recorded in FFIS in “support” object classes plus lump sum leave, awards, and agreements .

Meet Mr. NRCSMeet Mr. NRCS

In pay period 15, Mr. NRCS worked 40 hours on CRP and 40 hours on EQIP

He entered this information into WebTCAS by program, activity, and modifier

His assigned “fund code” is CTA-General

His “fund code” was determined in the cost allocation process and entered into the WebTCAS master record by the timekeeper

What do we see in CIS for Costs?What do we see in CIS for Costs?

Costs associated with 40 hours of Mr. NRCS CRP

included here.

23,125 23,125

Costs associated with 40 hours of Mr. NRCS EQIP included here.

What are Mr. NRCS “What are Mr. NRCS “costscosts” in CIS ” in CIS for pay period 15?for pay period 15?

40 hours * Mr. NRCS’ Basic Pay hourly rate will be recorded in the salary “cost” column for CRP

40 hours * Mr. NRCS’ Basic Pay hourly rate will be recorded in the salary “cost” column for EQIP

Associated benefits will be recorded in both CRP and EQIP benefit “cost” columns based on rate identified at beginning of fiscal year for each retirement type

What do we see in CIS for obligations?What do we see in CIS for obligations?

Mr. NRCS dollars and associated hours are

included here.

What are Mr. NRCS “What are Mr. NRCS “obligationsobligations” in ” in CIS for pay period 15?CIS for pay period 15?

80 hours * Mr. NRCS’ Basic Pay hourly rate will be recorded in the salary “obligation” column for CTA-General

Actual benefits will be recorded in the CTA-General benefit “obligation” column based on actual charges to the agency for Mr. NRCS:

– Retirement– Life Insurance– Health Insurance– FICA/Medicare– COLA (for overseas employees)

Why are there differences?Why are there differences?

It could be the difference between:

– Credit hours worked in WebTCAS vs. credit hours paid in FFIS

– Comp time hours worked in WebTCAS vs. comp time hours paid in FFIS

– Benefit costs (estimated) in WebTCAS vs. benefit costs (actual) in FFIS

– Overtime capped at 1.5 times GS-10 step 01 hourly rate for Washington DC locality in WebTCAS vs. cap applied not to exceed 1.5 times the basic hourly rate for a GS-10/1 in FFIS

– Obligation adjustments not processed through WebTCAS

What causes the most significant differences?What causes the most significant differences?

“Direct” charge of hours by program/activity/modifier in WebTCAS interfaced into ACRES

VS

“Offset” charge of hours by fund code assigned to each employee in the cost allocation process interfaced into FFIS

Why are there differences between direct charge Why are there differences between direct charge of time & cost allocation charge of time?of time & cost allocation charge of time?

Bottom line –

By the end of the fiscal year, direct charge hours should be very close to cost allocation hours except for those funds in which NRCS was not fully reimbursed for actual work performed

Why aren’t they closer?Why aren’t they closer?

You have to plan your work

then

You have to work your plan

This demonstrates adherence to one of the fundamental laws of Title 31 of the United States Code: “Appropriations must be used for the purpose intended by Congress only.”

CTA BASE

Thank you!Thank you!