POSTING NOTICE. Supplements to this title are numbered consecutively. Check the last transmittal received for this title to see that the above supplement number is in sequence. If not, do not post this supplement until the missing one(s) is received and posted. After posting, retain this transmittal sheet at the front of the title until the next supplement to this title is received.

Superseded New

Page Code (number of sheets)

42.1--1 thru --2 1 1

Digest:

42.1 - Current assessment rates for K-V, CWFS-O, SSF, and BD. Adds Restoration of Forest Lands & Improvements as an assessment account and provides for overhead assessments on all cooperative collections either from the coop account or project.

ORVILLE L. DANIELS

Forest Supervisor

42.1--1

42 - Budgeting for Indirect Expenses for Cooperative Work, Brush

Disposal, and SSF.

3. Assessment Rates for Indirect Expenses

b. Regional Office Rate

(3) Publishing Established Rates: Refer to the Current

R-1 Supplement to FSH 1909.13 to obtain rates to be

used.

c. National Forest Rate - Effective 07/01/90

(1) Percentages to be applied to timber sale plans:

GA PM Project Total

CWFS-K-V 15.09 .67 9.04 24.80

CWFS-OTHER &

Restoration Trust* 11.07 -- -- 11.07

Brush Disposal 14.74 .84 15.04 30.62

Salvage Sale Fund 13.56 .13 10.51 24.20

(Percentages may be combined for direct application to the total District

planned expenditures.)

(2) Percentages to be assessed against total collections:

GA PM Project Total

CWFS-K-V 13.11 .67 8.29 22.07

CWFS-OTHER & RIRI* 9.97 -- -- 9.97

Brush Disposal 12.85 .83 13.07 26.75

Salvage Sale Fund 11.94 .13 9.51 21.58

*The Act of 06/30/14 states that we assess overhead unless the Cooperator specifically requests that we not take the assessment. In that case we will assess the applicable appropriated project fund.*

A Forest Decision has been made to process the published assessment percentages (SO, RO, WO) against each District cash collections (K-V, SSF,and BD) for the year to establish funds to cover the assessment needs. CWFS-O will remain a direct assessment against actual expenditures. Since the assessment percentage is developed by using planned expenditures, but will be applied to collections,

42.1--2

there probably will be plus/minus balances in the accounts from year to year. These balances will be taken into account in the following year's formula. Should the balances reach an unacceptable level, it will be necessary to either reassess or distribute funds to the District accounts. The published percentages are derived by using a 5-year average (2 past, present, and 2 future) of planned needs to planned District expenditures. It is necessary to publish assessment percentages also because the assessment will be made against the total collection, which will include overhead. For example: K-V 5-year average planned expenditures:

GA $88,514

PM 18,838

SO Project 41,539

District Total 555,968

K-V Total $704,859

(Note - Use published rates for R.O. and WO for both timber sale plans and assessment purposes.)

Appropriation language in FSM 6513 allows K-V, CWFS, BD, and SSF to be used for items such as equipment purchases, building maintenance and construction (project buildings), and data control and update. These items must be included in the unit costs on appraisals and collected from timber sales prior to incurring cost for them.

To provide a basis for these costs, each subunit will develop a 5-year support cost plan that includes all applicable items. This plan will be updated annually and included in the initial work planning package submitted to the S.O. A sample format is enclosed. This plan will also be used for assessing priorities on a Forest-wide basis and for out-year planning. The building maintenance portion can be extracted from the Lolo facility mangement record keeping process outlined in FSM 7300.

Specifics of the plan are:

Column 1 - list all: assessment-type accounts or support costs plus major purchases which will be collected for over a period of years.