Presentation on theme: "1 Purpose of the Exhibit 54 June submission – The Department Budget Offices (POB) uses a modified Exhibit 54 format as a mechanism to calculate the Fixed."— Presentation transcript:
1 Purpose of the Exhibit 54 June submission – The Department Budget Offices (POB) uses a modified Exhibit 54 format as a mechanism to calculate the Fixed Costs (“inflation”) that we will put into our fall budget submission to OMB. September submission – OMB Circular A-11 requirement. OMB collects them, rarely does anything with them, and gives a copy to GSA so they have an idea of their outyear operating costs and locations where rent needs may be changing in the future. In POB’s opinion the June submission is the most important.
2 Timeline - June June – One week after GSA releases the estimates for the FY 2008 budget. The Exhibit 54 is so POB can determine your “Fixed Costs” or inflation needs for the upcoming budget. It should be reviewed and transmitted electronically by your Bureau Budget Office to Jan Smith and their POB analyst. POB will email to PAM, Mary Heying. Your budget office needs to ensure the 54 is consistent with your bureau’s May budget request to the Department for “requested program changes” and “planned changes”.
3 Timeline - September September to OMB - In August you need to revise your Exhibit 54 to match final budget decisions and make any other corrections needed. E:mail to Jan Smith and Mary Heying. Before transmittal, POB strips out Part 3 which is not part of the approved Circular A-11 format. POB/PAM retain your original submission for internal use.
4 Budget Terms Fixed Costs – Part of our budget request that does not require a whole lot of explanation. We are not doing anything different but the cost is changing due to inflation or deflation.
5 Budget Terms Program change –Special write up in budget since we are proposing to do something different. There might be a program change for rent if: -1) a bureau is hiring a lot of staff and needs more space -2) if a bureau is downsizing and can release space go -3) if rent costs grossly exceed current funding (don’t hold your breath).
6 BOR is different BOR’s budget does not include fixed costs. But their budget provides for them in each project’s requested funding. Why? - Different Budget Committee. BOR is project driven versus activity/program oriented.
7 What is covered in Exhibit 54 The Exhibit 54 is to cover all your rent, whether paid for by a General Administration budget line or program funds except for…
8 What is covered in Exhibit 54- MIB/SIB guidance Per Circular A-11, a bureau’s Exhibit 54 should not include MIB/SIB costs. DOI/NBC is the delegated lessee and fills out the Exhibit 54. For the June fixed costs calculation, DOI budget determines the Fixed costs for these buildings and we add that to your fixed cost total. Including MIB/SIB in Part 2 will confuse me. However, if bureaus want to use Exhibit 54 to show all their rent costs, you may add a separate MIB/SIB line into Part 3.
9 What is covered – Part 1 Rental Payments to GSA and Corrections, Adjustments. This is where we get the Fixed Costs for the budget. We use the GSA Rent estimates (covers all changes such as lease and operating cost changes) and your Corrections (chargebacks) input.
10 What is covered – Part 1 Planned Changes to inventory A bureau may be planning to increase or decrease space on their own initiative. These changes are not proposed or enacted in any budget document. The Department does not provide you additional funds for more space or take away funds if reducing space. The Department Budge Office may be puzzled and questions if there are increases.
11 What is covered - Part 1 Program Changes. This section corresponds to Program changes included in a budget request (FY 07 or FY 08) or enacted in a previous budget (FY06 or even earlier). Remember! Work with your bureau budget office to know what was/will be a Program Change. Generally will be blank since bureaus rarely request a Program Change for rent and Congress rarely enacts such a request.
12 What is covered – Part 1 Funding Sources Work with your bureau budget office to complete. Must identify the amount of rent paid for with direct appropriations, reimbursables (Economy Act), or fee/revenue accounts (like Recreation entrance fees). Fixed costs apply only to the proportionate amount paid by direct appropriations.
13 What is covered – Part 2 June submission format – New format from last year. Changed standard OMB template to mimic Part 1 Breaks out Current Inventory*, Planned Changes, and Program Changes. Must fill in square footage. Include a list of buildings with similar detail to the GSA budget estimates with multiple year information. *Inventory is taken from GSA rent estimates (based on April 16 th billing). Typo on earlier email version. CI footage must be same for all years.
14 What is covered – Part 2 Like GSA rent, the Fixed costs will be the difference in the FY07 and FY08 costs for the current inventory. The cost estimates should be based on actual contract clauses not some general % increase. Funding Sources - complete as you did for Part 1.
15 What is covered – Part 3 Only for June submission, not Sept. to OMB To determine Security and O&M delegation costs. Figures must be consistent with the Homeland Security (Federal Protective Service) out year estimates to be provided in June. Non-Federal Security Costs – provide actuals for 2005 and a rationale for FY 06,07,08, and 09 estimates. What buildings, how many guards, etc. Can add a line for your MIB/SIB rent costs.
16 Inflation Factors Exhibit 54 - Includes an OMB approved inflation factor for each year. Part 1 – Apply only to planned or program changes where there is no contract/lease to determine the rate. Inflation is automatically applied to future year estimates, e.g., if an inventory change occurs mid-FY 2007, a full year of rent plus inflation calculates automatically in FY 2008. Part 2 – Again use only for planned or program changes. Current inventory changes should be based on the facility’s lease.
17 Inflation Factors June submission. At this point in time we are using the FY 2007 inflation factor of 2.4%. The template was downloaded from OMB’s Circular A-11 and GSA’s websites posted in July 2005. September submission to OMB. You must get the new inflation factors available in July 2006 for that submission.
18 Contact/Links Link to OMB Circulars: http://www.whitehouse.gov/omb/circulars/index. html Jan Smith Department of the Interior Office of Budget (202) 219-4255 email@example.com
19 Summary The Exhibit 54 provides a summary of leases and funding in one place. As such it is a useful tool to senior management to understand the implications of lease changes and outyear costs. The Exhibit is set up to project rent for planned inventory changes. Lavera will make that all crystal clear. Thanks for your time and the work you do to support the budget process.