1909.13,30-33 Page 1 of 21 FSH 1909.13 - PROGRAM DEVELOPMENT AND BUDGETING HANDBOOK WO AMENDMENT 1909.13-94-1 EFFECTIVE 9/30/94 CHAPTER 30 - BUDGET EXECUTION 30.2 - Objectives. The major objectives of budget execution are to: 1. Allot funds for apportionment control purposes to the highest practicable level. 2. Allocate funds, performance goals, and personnel ceilings to units in a timely manner based on program budgets, Appropriations Act, Congressional direction, and Agency objectives. 3. Provide a basis for integrating each operating unit's plan of work with financial resources. 4. Establish procedures for planning and financing work that are consistent with legal requirements, charged-as-worked principles, Congressional direction, and agency policy. 5. Execute, within legal requirements, the financial plan for the operations of the organization in an effective and efficient manner. 6. Monitor appropriation accounts to ensure there are no antideficiency violations. 30.3 - Policy. 1. Maintain quality practices for preparing and executing sound financial plans, supported by work plans, at all organizational levels. 2. Delegate the maximum authority and responsibility to line officers for effective and efficient budget execution. 3. Allocate funds, targets, and objectives to the lowest operating units responsible for planning and managing the programs. 4. Identify the explicit purpose of all funds maintained at each organizational level, including reserves. 5. Enter obligations monthly. 6. Monitor obligations monthly in regard to obligational and apportionment authorities. Monitor obligations by Treasury Account and project obligations. 7. Include standards for budget execution in performance standards for Senior Executive Service employees, line officers, and budget and finance personnel. 8. Request adjustment in annual performance goals or objectives during the midyear financial and attainment review. 9. Establish operating plans in the accounting records within 30 days after receiving allocations from the next higher organizational levels. 10. Bill reimbursements no less than quarterly. 11. Follow Congressional direction, even if it results in differing levels of plan implementation or in actions that are contrary to the plan. 12. Review carryover funds for excessive amounts and establish appropriate performance expectations for carryover funds. 30.4 - Responsibility. (Sec. 04; FSM 1904 and 1930.4). 30.5 - Definitions. Account Symbols. Each appropriation or fund account established in the Treasury is identified by account symbols. Appropriation or fund accounts are given symbols that consist of 7 or more alphanumeric characters, for example: 12 4 1400 12 3/4 1104 12 X 1103 The account symbols provide the following information: a. Department or agency codes. The first 2 digits identify the Department responsible for the account. It is assigned by the Department of the Treasury. For example: the number 12 is assigned to the Forest Service. b. Period of availability. The next character represents the period of availability of the account for obligation. Annual accounts. A single digit (0 through 9) represents the last digit of the fiscal year in which the appropriation is available for obligation. For example: 4 represents 1994. Multiple-year accounts. Two digits separated by a slash (/) indicate a multiple-year appropriation. The digit preceding the slash represents the first fiscal year of availability and the digit following the slash represents the last digit of the final fiscal year of availability. For example: 3/4 refers to 1993 and 1994. No-year accounts. An "X" is used to designate a no-year appropriation which is available for an indefinite period of time. Allocation. a. It is used restrictively to mean the amount of obligational authority delegated from one agency, bureau, or account to another that is set aside in a transfer appropriation account (also known as an allocation account) to carry out the purposes of the parent appropriation or fund. Allocation accounts carry the same Treasury symbol and title as the parent account with a 2-digit prefix for the organizational code of the receiving agency. b. It is used broadly to include any subdivision below the sub-allotment level, such as subdivisions made by the agency financial plans or program operating plans, or other agency restrictions. Allotment. Authority delegated by the head or other authorized employee of an agency to agency employees to incur obligations within a specified amount, pursuant to OMB apportionment or reapportionment action or other statutory authority making funds available for obligation. Apportionment. A distribution made by the Office of Management and Budget (OMB) of amounts available for obligation in an appropriation, or fund account, into amounts available for specified time periods, activities, projects, objects, or combinations thereof. The amounts so apportioned limit the obligations that may be incurred. Appropriation Availability. Appropriation or fund accounts can be classified in terms of whether or not the amounts are available for new obligations, as follows: a. Unexpired account. An unexpired account is one in which authority to incur obligations has not ceased to be available. b. Expired account. An expired account is one in which authority to incur obligations has ceased to be available but from which outlays may be made to pay obligations previously incurred, as well as valid adjustments thereto. Appropriation Types. Appropriation or fund accounts can be classified by the length of time the amounts are available for obligation, as follows: a. Annual account. An annual account is available for incurring obligations only during a specified fiscal year or less. b. Multiple-year account. A multiple-year account is available for incurring obligations for a definite period in excess of one fiscal year. c. No-year account. A no-year account is available for incurring obligations for an indefinite period, usually until the objectives of the account have been accomplished (S&PF, KV, SSF, and so forth). Budgetary Resources. For purposes of budget execution, budgetary resources include the following: a. New budget authority and anticipated receipts. b. Unobligated balances available at beginning of year. c. Reimbursements, including anticipated, and other income (such as offsetting collections). d. Recoveries of prior year obligations. e. Restorations. f. Transfers from other accounts (appropriations). g. Allocations from other Agencies (transfer appropriation or allocation accounts). Expenditure. See Outlay. Net Disbursement. See Outlay. Obligation Authority. This term is often used synonymously with apportionment authority and includes authority to obligate funds from all sources, including new budget authority, unobligated balances from prior years, reimbursements and other income (for example: KV, SSF, BD), recoveries of prior year obligations, restorations, and transfers from other accounts. Obligations. a. Incurred. Dollar amounts of orders placed, contracts awarded, services received, and similar transactions during a given period that require payments during the same or a future period. Such amounts include outlays for obligations which had not been previously recorded and reflects adjustments for differences between obligations previously recorded and actual outlays to liquidate those obligations (recoveries). b. Unpaid. Dollar amounts of orders placed, contracts awarded, services received, and similar transactions for which payment has not been made. c. Paid. Dollar amounts of orders placed, contracts awarded services received, and similar transactions for which payment has been made. This is synonymous with the term outlays. Outlays. The amount of checks issued, or other payments made (including advances to others), net of refunds and reimbursements, on obligations. Outlays are the net of amounts that are adjustments to obligational authority. (The terms "expenditure" and "net disbursement" are frequently used interchangeably with the term "outlay.") Recoveries. Amounts made available for obligation in no-year and unexpired multiple-year accounts through: (a) downward adjustments of prior year obligations, including the amount returned from prior year advances to consolidated working funds; (b) cancellation of prior year obligations; and (c) downward adjustments for the difference between obligations previously recorded and outlays made in payment thereof. Refunds. Recoveries of erroneous or excess payments that are credited to an appropriation or fund account. Treat recoveries as reductions of obligations and outlays in budget execution reports. Refunds also include credits to an appropriation or fund account that result from accounting adjustments relating to obligations or outlays where such a procedure is permitted by law or regulations. Reimbursements. Sums received as a repayment for commodities sold or services furnished, as authorized by law and/or agreements, to be credited directly to specific appropriation or fund accounts. Earned reimbursements are the amounts representing orders filled. Unfilled customer orders represent amounts received for commodities or services not yet furnished. It also includes amounts received due to court orders and judgments. Unexpended balance. The amount of appropriations or other funds, or authority, remaining after deducting outlays from the total available budgetary resources. The unexpended balance of an account is the sum of the obligated (unpaid) balance and the unobligated balances. a. Unobligated balance. The difference between the obligated balance of an account and the total available unexpended balance. It is the same as the amount remaining after deducting the cumulative obligations from the amount available for obligation; or, amount remaining after deducting outlays and unpaid obligations from the amount available for obligation. b. Obligated balance. The amount of unpaid obligations applicable to an account less the amount collectible as repayments to the account or fund. 30.6 - Financial Management Principles. Consider the objectives and policies set forth in sections 30.2 and 30.3 and the following financial management principles as guides to achieving sound budget execution results: 1. Do not overallocate or overplan (deficit finance). Spending against a promise of a future allocation without some formal, approved, advance allocation notice places the manager at risk. Do not take risks which lead to yearend deficits. 2. Conduct financial reviews as necessary to ensure compliance with legal requirements and Forest Service policy. Identify needs and surpluses, and approve needs up to the extent surpluses exist. Ensure the financial review decisions are approved by the appropriate line officer. 3. Immediately submit emergency financial needs to the next higher organizational level (for example: forest to region or region to Washington Office). Consider emergency needs as those that risk loss of life or property if not corrected immediately. Do not assume that any of the needs can be funded (para. 1). Establish a plan to follow if funds are not available. 4. Follow reprogramming guidelines and request reprogramming as outlined in section 34.6. 5. Minimize uncommitted reserves. 6. Complete financial transactions early to ensure proper close out of the fiscal year. Reduce the volume of purchases during the last days prior to the end of the fiscal year to reduce mistakes and allow enough time for concentrating on the yearend processes and fund management. 7. Make key people available during yearend closing procedures. (Consider August 15 to October 15 as the critical time for yearend financial management.) 8. Ensure that new initiatives address and resolve funding implications prior to implementation. 9. Maintain a goal of providing accurate, timely, easily understood, and user friendly financial information against which financial management decisions can be made. 31 - FUNDING SOURCES. 31.1 - Appropriations. The Forest Service receives its regular appropriations through the Department of the Interior and Related Agencies annual appropriation act. Other sources of funding include receipts and unobligated balances brought forward in: 1. Permanent appropriations. These funds include the salvage sale fund and brush disposal fund. 2. Trust funds. These funds include cooperative work, Forest Service; the reforestation trust fund; and gifts, donations, and bequests for forest and rangeland research. See FSM 6510 for further direction on appropriations and funds. 31.2 - Continuing Resolutions. Annually, if there is no appropriation bill signed prior to October 1, Congress must pass a spending bill, known as a continuing resolution. A continuing resolution places constraints on spending until passage of an appropriations act. 31.3 - Supplemental Appropriations. Supplemental appropriations are special, non-recurring appropriation acts authorized for specific purposes, and which become part of the agency's available budgetary resources for the period covered by the act and are subject to the prescribed funding and targeting limitations. The regular planning and budgeting process integrates these supplementals for the year(s) in which the Forest Service has the authority to use these funds. 31.4 - Reimbursements. Reimbursements are sums received as a repayment for commodities sold or services furnished, as authorized by law and agreements, to be credited directly to specific appropriation or fund accounts. It also includes amounts received as a result of court orders or judgments. 31.5 - Recoveries. These amounts are made available for obligation in no-year and unexpired multiple-year accounts through the downward adjustments of prior year obligations, including amount returned from prior year advances to consolidated working funds; and/or through the downward adjustments for the difference between obligations previously recorded and outlays made in payment thereof. 31.6 - Allocation Accounts. The amount of obligational authority delegated from one agency, bureau, or account to another and set aside in a transfer appropriation account (also known as an allocation account) to carry out the purposes of the parent appropriation or fund account. 31.7 - Appropriation Transfers. These funds are made available under specific legislative authority that actually results in the transfer of obligation authority and cash from one appropriation account to another for the benefit of the receiving appropriation. 31.8 - Refunds. Refunds are recoveries of erroneous or excess payments that are credited to an appropriation or fund account. 31.9 - Carryover Funds. These are balances which are brought forward from the preceding fiscal year in accordance with section 39. 32 - ALLOCATION PROCESS. 32.1 - Process Schedule. See exhibit 01 for details on the budget execution process schedule, which includes steps 5, 7, 8, and 9 of the 10-Step Annual Budget Cycle (sec. 06). 32.1 - Exhibit 01 Budget Execution Process Schedule Action By Action Deputy Chiefs Estimate staffing and financing needs and propose funding level for the Washington Office budget and external needs. Chief and Staff Review, adjust, and approve the Washington Office budget and external needs. Program Development Determine net funds available for allocation and Budget (PD&B) to field units based on the President's Budget, the Washington Office Budget, and external needs. Deputy Area Budget Distribute net funds available to units based Coordinators (DABC) upon net funds available, program budget proposals, and Chief's direction. Prepare Program Budget Management Information (PBMI) Advice narrative direction and distribute performance goals. PD&B Update budget data base, performance goals, and PBMI narrative and prepare initial PBMI for the Chief's approval. Chief Review, adjust, and approve initial PBMI. PD&B Issue PBMI to units. Units Review initial advice and request adjustment of performance goals and/or funds. DABC Summarize and prioritize units adjustment requests. PD&B Review Congressional Reports and Bill language. Identify Congressional earmarks, direction, guidance, and funding. Update budget data base and determine adjusted net funds available for release to DABCs. 32.1 - Exhibit 01--Continued DABC Revise field distributions based on Unit requests, adjusted net funds available, and Congressional earmarks and direction. Update PBMI narrative as necessary. PD&B Update budget and performance goals and PBMI narrative and issue Preliminary Final PBMI to Units. Units Review Preliminary Final PBMI advice and negotiate adjustments with the Chief. DABC's Summarize approved adjustments and provide to PD&B. Summarize issues/concerns not funded or adjusted. C&S/Units Review issues/concerns and recommended (Meeting) adjustments. Chief Approve Final PBMI Advice. PD&B Distribute Final PBMI Advice. Issue Allocation and Obligation Authorization Advice for all budgetary resources. 32.2 - Program Budgeting and Management Information (PBMI) Advice. The Washington Office, Director of Program Development and Budget issues minimum process requirements in the annual Program Budgeting and Management Information (PBMI) Advice to: 1. Document the use of the program budget information. 2. Make initial budget allocations of the President's budget based on field program budget proposals and management objectives. 3. Issue a final PBMI when the final appropriation is received. 4. Identify Congressional earmarks, reports, and direction. 5. Establish a framework to provide all units with prompt notification of budget adjustments. 32.3 - Annual Direction. The Washington Office, Director of Program Development and Budget ensures that the Final Program Budgeting and Management Information (PBMI) includes the following specific annual direction: 1. Congressional Intent. Congressional intent in the form of earmarks, special direction and guidance, and reports required by Congress. 2. Chief's National Emphasis. The PBMI includes the Chief's direction and guidance in each program area for carrying out National objectives. 3. National Commitments. National commitments are those items that: a. Benefit more than one unit; b. Include funding from more than one Deputy Chief area; or c. Cause a significant 1-year impact on a unit's budget. 4. Fund allocations. The PBMI summarizes fund allocations by Expanded Budget Line Item (EBLI) to carry out the approved budget and includes enough detail necessary to meet legal requirements. Allocations include specifically identified special programs. 5. Performance goals. Performance goals identified in the Management Attainment Reporting (MAR) are also included in the annual direction. 6. Full-time Equivalent Distribution. The Department of Agriculture allocates a personnel ceiling expressed in full-time equivalents (FTEs) to the Forest Service annually. The Washington Office, Director of Program Development and Budget distributes FTEs to the Washington Office Deputies, Regions, Stations, Area, and Institute based on past FTE usage and significant funding shifts in programs or unit consolidations. The FTE's associated with all activities funded by Forest Service appropriations count against the FTE ceiling, except for Fighting Forest Fires (FFF). The FFF is the only emergency activity that does not count against the FTE ceiling. 7. Limitations. Special limitations are established by law which prescribe the maximum amount that may be obligated or expended for a specified object or purpose without regard to any specific appropriation (FSM 6510). Other limitations may be established to accomplish management objectives such as quarterly limitations on obligations. 8. Other Information. Also, included in the PBMI are report due dates, management review schedule, greenbook costs, and reimbursement and apportionment authority. 32.4 - Allocations. 32.41 - Initial Allocation. An initial allocation advice (PBMI) is prepared and released to Regions, Stations, Area, and Institute reflecting the Chief's decisions matching the President's Budget to the unit's program budget proposals and national objectives. Units review the initial allocations, targets, and direction for changed conditions and major issues or concerns developed since the program budget proposals were developed. By mid-August, Units should report to the Washington Office, Director of Program Development and Budget, any major issues to be considered during allocation of the final appropriation. Specific fund and performance goal adjustments must be identified and resolved during the final allocations process. 32.42 - Final Allocation. The final planning and allocation advice (PBMI) is an update of the initial advice. After the appropriations act is signed, the budget data base is updated to reflect funding allocations and performance goals and to the maximum extent possible, decisions on issues not previously resolved in the initial PBMI. A preliminary final allocation is released to Units for review. Regional Foresters, Station Director, Area Directors, and the Institute Director negotiate requested adjustments to funds and performance goals with the Chief and Deputy Chiefs. The final PBMI advice is approved by Chief and and reflects all approved adjustment to the preliminary final. 32.5 - Allocation Documentation. 1. The Washington Office, Program Development and Budget staff prepares, inputs into the Central Accounting System, and distributes Form FS-6500-43, Allocation and Obligation Authorization Advice, to allocate cash and/or obligational authority for all budgetary resources available to Units. 2. The Regional Offices, Stations, Area, and Institute use Form AD-739 to allocate obligational authority to their units. See FSH 6509.11k for a more detailed description on the use of these forms. 33 - ANNUAL WORK AND FINANCIAL PLANNING. 33.1 - Annual Work Planning Sequence. See exhibit 01 for the annual work planning sequence required by the Chief for Regions. Station Directors, Area Director, and Institute Director should take planning action similar to Regional Foresters and may direct their subordinate units, when appropriate, to take steps specified for Forest Supervisors and District Rangers (FSM 1930.44). 33.1 - Exhibit 01 Annual Work Planning Sequence Action By Action Chief Estimates staffing, financing, and budget funds for the Washington Office budget and external needs based upon President's budget allowances, Chief's objectives, and program budget proposal. Issue initial Program Budget and Management Information (PBMI) Advice to units with program direction, proposed performance goals, and anticipated level of financing. Regional Update unit objectives, priorities, and Foresters, targets based on the relationship between Station Initial PBMI and unit's program budget Directors, proposal. Art Director, and Institute Plan headquarters office and zone work and Director staffing, and budget funds to finance headquarters office, zone operations, Forests, and other subunits. Issue initial planning and allocation advice to provide Forests and other subunits program direction, their anticipated level of financing, and proposed performance goals. Forest Update Forest objectives, priorities, and Supervisors performance goals in accordance with regional procedures based on Chief's and Regional Forester's guidelines. Decide what jobs must be done or contracted by Supervisor's Office, and determine staffing needs. Prepare work plans for Supervisor's Office employees and budget funds to finance Supervisor's Office contracts and centralized work projects. 33.1 - Exhibit 01--Continued Send Districts their program direction, planning advice, and activity targets for next year. District Develop work plans to efficiently and effectively Rangers reach Forest objectives and performance goals. Submit work plans and/or financial plans as required by Forest Supervisor. Forest Approve, as delegated, Ranger District annual Supervisors work plans and/or financial plans. Chief Informs field units of appropriation act and issues Final PBMI. Regional Inform Forests of any changes in their Foresters allocations based on Final PMBI. Forest Inform Districts of any changes from planning Supervisors advice. Add or remove Forest level projects. District Add or remove projects. Revise work plans to Rangers reflect current funding level. WO-PD&B Records accomplishments of planned work. Based upon receipt of the Chief's initial planning and allocation advice, Regional Foresters, Station Directors, Area Director, and the Institute Director should annually establish dates for completing the work planning sequence. 33.2 - Planning Units and Rates. Develop work plans by estimating and recording the number of workdays needed to accomplish planned jobs. Plan a full year of work for full-time employees. Assign employees who perform direct project work entirely to specific projects for their full period of employment, minus an estimate for time normally spent on work of an emergency nature, such as fire suppression. Employees who primarily perform GA work should plan only two-thirds to three-quarters of their available time on explicitly identified jobs. Allow the remaining time for the unexpected and routine GA or general program supervision for the appropriate program. Use daily rates to develop financial plans for work planning on the basis of either the number of workdays in a year, or the number of days in pay status. 1. Number of workdays in a year. a. Daily Rate Development. Develop the daily rate by: adding the basic annual salary plus retirement, insurance, uniform allowance, and other benefits that are charged against the appropriation, subtracting quarters deductions, and dividing by the number of workdays in a year. Include allowances for annual leave and holidays when determining the number of workdays in a year. b. Leave Category. The number of workdays for full-time employees in various leave categories is as follows: (1) 26 days leave. 225 workdays (8-hour leave category) (2) 20 days leave. 231 workdays (6-hour leave category) (3) 13 days leave. 238 workdays (4-hour leave category) When this basis is used, show only the days in work, rather than pay status, on work plans. 2. Number of days in pay status. Develop the daily rate by using basic annual salary plus retirement, insurance, uniform allowance, and other benefits that are charged to the appropriation, subtracting quarters deductions, and dividing by the number of days in pay status. This would be 261 days for all full-time employees. If this basis is used, show all holidays and planned annual leave as days to be financed on annual or project work plans. 33.3 - Annual Work Plans. Use completed work plans as the basis for preparing unit and subunit financial plans. When properly prepared, they also provide the narrative documentation in support of establishing operating plans in the accounting systems on Forms AD-729, Management Code Master File Update, as discussed in FSH 6509.11k, chapter 20. 33.4 - Financing Principles and Guidelines. The accounting system correlates with the financial planning system to account for the actual disposition of funds resulting from program execution. See section 33.41 for the prescribed principles which aid this function. 33.41 - Single Funding Principle. Charge salary and other costs to a single fund (budget activity) when it can reasonably be established that the budget activity identified receives the benefits of the cost incurred. 33.42 - Multiple Funding Principle. 1. Policy. Charge salary and other costs to two or more budget activities when it can reasonably be established that these funds and activities receive a proportional share of the benefits from the costs incurred. 2. Documentation. Units must document their financial plans and procedures used for determining the proportion charged to the benefiting fund and budget activity (sec. 04). 3. Reviews. Conduct periodic financial reviews and document findings to verify that charges are in reasonable proportion to the benefits received. Make adjustments in charges when the periodic financial review indicates that the cost distribution is not reasonably in line with the benefits received. 33.43 - Primary Purpose Principle. Primary need, rather than actual work performance, influences appropriation and functional responsibility for certain expenses. During periods when employees are not needed for work on the program for which they are hired, they should be assigned to other work to the fullest extent practicable and financed by the benefiting funds. If financed work is not available, finance the salaries for these employees from the program funding which requires their availability. Finance travel and other expenses from the benefiting funds. Apply the primary purpose principle to extended employment of specialized, single-purpose employees. Frequently, key persons are employed year long in order to retain their skills, even though the agency needs their special qualifications primarily during the field or fire season. For example, this principle determines continuous employment of seasonal fire control forces and on-the-ground key specialists assigned to certain other programs. 33.44 - Special Requirements. Use special handling for transferring funds from other agencies and other funds or limitations which possess characteristics limiting the capability to assess them for indirect costs. Use the following in applying the concept of the Multiple Funding Principle. 1. Job Corps. Do not assess these funds by formula since the funds are received from the Department of Labor for program direction which includes all support costs. 2. Working capital fund. Use the working capital fund (WCF) financed plans as the basis for charging indirect costs. Eliminate intrafund activities, such as the shop budget from the fleet budget, to avoid duplication. Adjust the budgeted amount for financial plans for intrafund expenses, depreciation, and fleet equipment acquisitions. For assessment purposes, make reductions for equipment purchases using the formula for contracts. Do not assess working capital funds for Ranger District indirect costs. 3. Highway trust fund. Based on the agreement with the Federal Highway Administration do not assess emergency relief funds for indirect costs. Charge support costs directly, to the extent that they can be identified with the program. 4. Emergency funds. Generally, do not assess emergency funds for indirect costs. Emergency funds include the Federal Highway Trust Funds (emergency relief flood operations) and emergency flood prevention. Charge support costs directly, to the extent that they can be identified with the program. 5. Fighting forest fire funds. In the case of fighting forest fire funds (EFFS), charge the expenses of those employees normally funded from General Administration directly to EFFS supporting fire suppression activities (FSH 6509.11g). 6. Senior Community Service Employment Program. In determining the amount to be assessed for support of the Senior Community Service Employment Program, take steps to ensure the legal limitation is not exceeded for administrative expenses. In accordance with Title 29, Code of Federal Regulations, section 89.42 (29 CFR 89.42), "(a) No more than 15 percent of the Federal funds provided to a project sponsor under the Act may be expended for administrative costs." Consider administrative costs as those which include all direct and indirect costs associated with administration of the program. The final Program Budget and Management Information (PBMI) Advice should indicate the remaining amount of the 15 percent limitation available for the Regions, Stations, Institute, and Area after Washington Office administrative expenses have been funded. 7. In-Service Authorizations. Use the following procedures when work is performed by or for other Forest Service units: a. When Form FS-6500-46, Authorization for In-Service Expenditure, is issued between Forest Service units, do not make an indirect cost assessment. b. In cases where the work authorized does not readily identify with a specific program or project and it requires significant indirect expense, the authorizing and performing units should agree on the amount of appropriated GA to include on the Form FS-6500-46. c. When Form FS-6500-46 authorizes activity that exceeds the incidental administrative cost level, identify increased expenses with the specific program and charge directly to the program. Reach agreement on and document these additional costs in the basic agreement which supports the Authorization for In-Service Expenditures and accommodate the amount of the authorization. d. For authorizations (interagency agreements) between the Forest Service and other Federal agencies, define the allowable indirect cost assessment in relation to the agreed upon work (FSM 1580). 8. Budgeting for indirect expenses for reimbursable work. Assess reimbursable work performed for other Federal agencies for indirect costs, unless local agreements prohibit indirect cost assessments. a. Assess indirect costs for all work performed under the Economy Act of 1932, as amended, for another Federal agency (31 U.S.C. 1535-1536). b. Do not assess indirect costs for work performed for the U.S. Department of the Interior agencies under the joint fire agreement for suppression. Performance of this work falls under the Reciprocal Fire Protection Act of May 27, 1955 (69 Stat. 66; 42 U.S.C. 1856). (See FSM 6509.11g and FSM 1530 for a further explanation of the Reciprocal Fire Protection Act.) 33.45 - Support Costs for Shared Services. These are support items that one Forest Service unit provides for another under the shared services concept, such as administrative support provided by the Stations to Area or Forest offices. Normally, build the costs of providing these services into the servicing units budget request and allocate the costs directly to that unit. If not, use annual work plans and letters of understanding agreed to by the appropriate line officers to support these items. 33.5 - Financial Plans. Prepare a financial plan prior to the beginning of each fiscal year. Within each operating unit, provide a systematic method of expressing obligation estimates of programs for approval by the officers responsible for such programs. Ensure that financial plans are factual and show the intended use of all available funds. Describe the procedures for financial management accountability for all available budgetary resources in the financial plan. 33.51 - Regional Office Financial Plan. Each Regional Office must prepare an annual financial plan which includes the following: 1. All regional funds that appear on the Washington Office summary of allotment sheet, except for those funds distributed to National Forests or other operating units that appear on the Region's summary sheet. 2. Funds derived from National Forests as assessments against cooperative work Forest Service (CWFS) and brush disposal. 3. Carryover balances, when authorized. 4. Working capital funds, appropriation reimbursement, and all other available funds which are budgeted at the regional level. 33.52 - Stations, Area, and Institute Financial Plans. 1. Prepare a detailed financial plan for each operating subunit of the Station, Area, and Institute. Prepare separate financial plans for each work unit, program, support services at the headquarter's office, and support services at each field location. 2. Submit the Station financial plans in accordance with the annual due dates established by the Chief. 3. Ensure that the Station Director receives and approves all Station financial plans including subunit and/or research work unit plans. 33.53 - Reserve Funds. Regions, Stations, Area, and Institute financial plans should include only true reserve funds which cannot be included in the financial plans of an operating unit. Earmark the purpose of the reserves clearly. Include all funds available for accomplishment of planned work in such financial plans to the maximum extent, and hold reserves to a minimum consistent with predetermined needs. List as reserve items those project funds for which work plans have not yet been formulated. Hold funds as reserve, if needed, for estimated costs of terminal leave, transfers of station, and similar items. 33.54 - Financial Plan Summaries and Reports. Prepare for the next higher Forest Service organizational unit: 1. Summaries of financial plans which show final disposition of all funds by work activities and subunits; and 2. A comparison of actual budgets with allowances. 33.6 - Special Financing Requirements. 33.61 - Gifts, Donations, and Bequests for Forest and Rangeland Research. Ensure that Stations observe the following procedure for those funds not needed for current operations that are invested in public debt securities: 1. Write a letter to the Washington Office, Director of Program Development and Budget and indicate the total amount of the deposit and the amount that is needed for obligation and outlay purposes during the quarter that the deposit is made. 2. Identify the balance of funds available for subsequent periods by quarters and fiscal year(s), the amounts needed for obligational authority, and cash outlays. Submit data for at least 3 years, except where funds shall be expended prior to that period of time. Indicate whether funds are on hand for withdrawal. 3. Request changes to operating plan needs, from those previously furnished, in writing and include the revised timetable for expending the invested funds. Include the name and position of the employee designated as the field contact. Do not implement changes in plans without approval from the Washington Office, Director of Program Development and Budget. 4. Submit a letter confirming deposit in instances where the deposit was not made when the original investment letter was submitted. Also, submit a letter confirming the deposit so that the Washington Office, Director of Program Development and Budget can initiate withdrawal action. Include confirmation of previously submitted financial plans if there is a significant delay in receiving the deposit of funds. 33.62 - Other Activities with Special Financing Requirements. See FSH 6509.11g for the special financing requirements of the following activities: 1. Search and rescue operations. 2. Technology transfer. 3. Radio maintenance, replacement, and expansion. 4. Dam administration and maintenance. 5. Air and noise quality control. 33.7 - Assessments. Assessments include any indirect charges against a budget activity calculated through the use of a formula. Budget activities in this case refer to the level of display shown in the House or Senate reports that accompany the annual appropriations act. For all assessments against various budget activities or allocations for contingencies, the congress receives a full explanation, separate from the agency budget request and Explanatory Notes. This report is provided by the Washington Office, Director of Program Development and Budget. The explanation includes the amount of the assessment, the activities assessed, and the purpose of the fund. Regions, Stations, Area, and Institute report any such assessments at the time quarterly reprogramming reports are submitted. 33.8 - Other Controls. 33.81 - Administrative Limitations. The Washington Office, Director of Program Development and Budget controls administrative limitations within the following appropriations by treating them as appropriation limitations: 1. Construction. 2. Watershed and flood prevention activities. 3. River basin surveys and investigations. 4. Employment and training assistance, Department of Labor. 33.82 - Special Limitations. These items prescribe the maximum amount (funds or units) that may be obligated or expended for a specified object or purpose without regard to the specific appropriation. See FSH 6509.11g for direction and a listing of these limitations. Each Unit submits a report for special limitation allocations for each limitation. This report is due to the Washington Office, Director of Program Development and Budget in August of each year for the subsequent fiscal year's authorization. For specific due dates, see the final Program Budget Management Information (PBMI) Advice. The Washington Office, Director of Program Development and Budget has the authority to approves special limitations requests. 33.83 - Project Controls. Exercise project controls primarily at the operating level. Develop them on the basis of analysis, generally in considerable detail, such as the staffing plans for use of seasonal fire control funds, recreation area plans, quotas for range allotment analysis, and road and trail construction programs. In addition to the guidelines and requirements contained in FSH 6509.11k and the Chief's Program Budget and Management Information Advice, Regions develop additional guidelines, as needed, to ensure that the project planning controls are adequate. The annual allocation instructions should include those special projects identified by Congress that require project controls.