U.S. Geological Survey Instructional Memorandum
No.: APS 2007-01
Issuance Date: February 15, 2007
Expiration Date: Retain Until Superseded
Subject: Distributed Direct Budget Object Class Policy Guidance
1. Purpose. This Instructional Memoradum (IM) provides instructions for recording costs for distributed direct costs described in Survey Manual (SM) Chapter 501.1 Cost Distribution.
2. Background. SM Chapter 501.1 describes distributed direct costs as costs, including facility-related costs and costs that may be considered common services indirect costs, that apply to more than one, but not all, projects or tasks within a cost center. Distributed direct costs will be distributed, wherever possible, to the applicable projects in a consistent, equitable, and cost-efficient manner.Cost centers began using distributed direct in fiscal year (FY) 2004 and after extensive discussion with the Office of Budget and Performance (OBP), cost centers were allowed to use standard voucher (SV) transfers to distribute costs to project accounts, citing one budget object class (BOC), instead of the BOC associated with the actual expenditure(s). In order to retain a link to the true BOC in project accounts, the OBP have requested that the costs be distributed using the actual object class of the original expenditure.
Therefore, in FY 2005, a group was formed to recommend an automated process to distribute these costs that would keep the BOC in tact. An automated process for budgeting distributed direct costs was developed in BASIS+ and is currently available for FY 2007 planning. Beginning on February 20, 2007, cost centers will have the option of utilizing an automated SV transfer process in the Federal Financial System (FFS) that will distribute costs to project accounts, by the actual budget object classification.
3. Procedures. Using the optional automated SV process, costs identified as distributed direct are collected in an account throughout the month and, on a monthly-basis, are transferred to projects, retaining the budget object class for the cost being distributed. The automated SV process is optional, however, beginning FY 2008, cost centers who choose to manually process SVs for distributed direct cost transfers, will be required to distribute costs using the BOC for which the costs were incurred, and will no longer be allowed to use the one BOC.
(signed) Karen D. Baker 2/15/07
Karen D. Baker Date
Associate Director for Administrative
Policy and Services