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U.S. Geological Survey Manual

U.S. Geological Survey Instructional Memorandum

No. OFM 2003-08

Date: May 9, 2003

Subject: Allocating Burden from Reimbursable Accounts

Reference: SM 501.1

Reference. This instructional memorandum (IM) replaces Office of Financial Management (OFM) IM 2003-02, issued in December 2002. The following updates have been incorporated into this IM:

Background. The Project Cost Accounting Subsystem (PCAS) of the Federal Financial System (FFS) provides a mechanism to charge reimbursable customers burden rates for indirect costs. Collections from reimbursable customers for these burden amounts applied represent income that pays for common services and bureau costs. In fiscal year (FY) 2002, overhead (a.k.a., assessment) budgets were established at the discipline level. Each discipline processed a standard voucher (SV) document to transfer a portion of the burden collected to the Office of Administrative Policy and Services for the bureau's overhead.

In FY 2003, common services budgets are now established at the cost center level and a bureau cost budget at the bureau level. Each cost center will be collecting reimbursable burden that supports the cost center's common services budget as well as the bureau's budget for bureau costs. Also, for the Water Resources discipline (WRD) reimbursable agreements, a portion of the burden amount will support WRD-specific costs. The Budget and Science Information System (BASIS+) has been implemented for all of the U.S. Geological Survey in FY 2003. BASIS+ stores the common services and bureau rates as individual components, however one composite burden rate is forwarded to FFS at the account number level for charging burden to reimbursable customers. This IM describes the process and responsibilities for collecting reimbursable burden and distributing it to the appropriate destinations for common services costs, bureau costs, and WRD-specific costs. In addition to PCAS, the FFS Cost Allocation subsystem will be used in FY 2003 to facilitate the distribution of the lump sum reimbursable burden collected to the cost center, the WRD, and the bureau.

Overview of Approach. Beginning in FY 2003, a standard account structure will be used for accumulating burden associated with reimbursable customers. This account structure will be in the format of XXXX-0ARYY, where:

Using this standard account format to initially capture the burden collected from reimbursable customers will facilitate ultimately splitting the burden two or three ways. Each unique burden rate (and each unique 0AR account number) will result in different percentages being applied in cost allocation to split the burden between the cost center, the bureau, and, if applicable, the WRD.

On a monthly basis, FFS calculates incremental burden amounts for reimbursable customers and creates an Internal Voucher (IV) document to transfer those amounts in the form of a negative expenditure to the direct fund (e.g., SIRAD or SIRMD). This monthly burden transfer is called the FFS Indirect Cost Transfer (ICT) process. The XXXX-0ARYY account numbers will be the target account numbers for the IV documents from the ICT process.

Also on a monthly basis, the cost allocation process will be run immediately subse0uent to the ICT process. The purpose of the cost allocation run will be 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 will accumulate in these "0AR00" accounts will serve as funding for indirect or discipline-specific costs incurred by the cost center, bureau, and WRD.

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

Fiscal Services Offices Responsibilities.

OFM Responsibilities:

Changing Burden Rates

Since FFS calculates burden amounts retroactively, 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 account and new PBDF table entries will split the incremental burden amounts according to the new percentages.

/s/ Carol F. Aten, Chief
Office of Administrative Policy and Services

Attachments:
Attachment 1
Attachment 2


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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/ofm-2003-8.html
Contact: APS, Office of Policy and Analysis
Content Information Contact: jwalbert@usgs.gov
Last modification: 11-Jan-2013@10:57 (klm)