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U.S. Geological Survey Instructional Memorandum

No. APS 2004-04

Issuance Date: January 16, 2004

Expiration Date: September 30, 2004

Archive Date: October 24, 2008

Subject: Fiscal Year 2004 Cost Allocation Procedures

Reference: This IM has been replaced by Financial Operating Procedures Handbook Chapter 13, Burden Management and Chapter 16 Commitments, Obligations, and Expenditures.

Instructions: Reference Survey Manual 501.1

Background. The Federal Financial System (FFS) Cost Allocation subsystem provides the capability to collect expenditures in one account (called a "pool" account in FFS Cost Allocation) and redistribute them to other accounts (called "base" accounts in FFS Cost Allocation). The cost collection and redistribution is done on a periodic basis and is not retroactive; that is Cost Allocation does not redistribute costs incurred in an earlier period. The U.S. Geological Survey FFS processing cycle includes three different runs of Cost Allocation as follows. All three processing cycles are initiated in conjunction with the FFS PCAS distribution process.

Format for FFS Cost Allocation Groups and Steps. The section applies primarily to Fiscal Services personnel responsible for establishing and maintaining records in the Cost Allocation Pool/Base Definition Table (PBDF). The FFS Cost Allocation process is defined by Groups and, within each Group, Steps. The Cost Allocation Groups are established on the FFS ALLC Table and the Steps are established on the FFS CADO Table. Entries to the PBDF table must reference these Groups and Steps.

Beginning in FY 2004, the numbering scheme for these Cost Allocation structures will be as follows:

It should also be noted that Cost Allocation Groups and Steps established in FY 2003 for Cost Allocation #2 and #3 must remain in the system. This is necessary to redistribute any FY 2004 activity against prior BFY account numbers. That is, the Cost Allocation process will continue to distribute changes in prior year (BFY 2003) reimbursable burden to the cost center (XXXX-0AR00), the bureau (1125-0AR00), and, if applicable, the Water Resources discipline (4531-0AR00).

Format for Account Numbers in Cost Allocation #2. A standard account number structure has been established for the Indirect Cost Transfer (ICT) process to accumulate burden associated with reimbursable customers. This account structure is in the format of XXXX-0ARYY, where:

When reimbursable account funding is entered into BASIS+, the ICT target account numbers must be in the format listed above. When FFS PCAS distribution is run on a weekly or monthly basis, burden is calculated for reimbursable customers. Then, the FFS ICT process creates Internal Vouchers (IV documents) to transfer the income from this reimbursable burden to the standard account numbers as defined above. This income is in the form of a negative expenditure against these account numbers in the direct appropriation (i.e., SIRAD or SIRMD).

After PCAS distribution and ICT are run, then Cost Allocation #2 is run. The purpose of Cost Allocation #2 is to zero out the negative expenditure in the XXXX-0ARYY accounts and redistribute to the following standard accounts for collecting the various types of burden:

The negative expenditures that accumulate in these "0AR" accounts will serve as funding for indirect costs incurred by the cost center, facilities, and the bureau.

Cost Center Responsibilities. Administrative personnel in the cost centers are responsible for the following:

Fiscal Services Offices Responsibilities:

Office of Accounting and Financial Management (OAFM) Responsibilities:

Changing Burden Rates

Since FFS calculates burden amounts retroactively, but Cost Allocation does not automatically recalculate dollars already allocated to base accounts, several actions will be required when it is deemed necessary to change the burden rate associated with a reimbursable account. These actions are:

When the PCAS distribution process runs the next time, the new XXXX-0ARYY ICT/POOL account and new PBDF table entries will split the incremental burden amounts according to the new percentages.

(signed) Carol F. Aten
Chief, Office of Administrative Policy and Services

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U.S. Department of the Interior, U.S. Geological Survey, Reston, VA, USA
URL: http://www.usgs.gov/usgs-manual/im/archive/aps-2004-04.html
Contact: APS, Office of Policy and Analysis
Issuing Office: Office of Fiscal Services
Content Information Contact: Jim Hubbard, 703-648-4092, jim_hubbard@usgs.gov
Last modification:11-Jan-2013@16:38 (km
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