1. Fermilab Budget and Finance C. Conger, Chief Financial Officer Mission Support Winter Planning Workshop February 20, 2013

2. Fermilab 101 Fermilab Community Advisory Board January 9, 2010 The Finances of Fermilab 101

3. Where does Fermilab get its funding? Nearly 100% from the Office of High Energy Physics (OHEP) within the DOE’s Office of Science. Largest “single program” in the Office of Science FY2013 President’s Budget:  DOE $27.2B Office of Science $5.0B  Office of High Energy Physics $776M Fermilab $359M Currently expecting $375M 3 Mission Support Planning Workshop 2/20/2013

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5. Fermilab 5-Year Funding by Source ($M) 5 Mission Support Planning Workshop 2/20/2013

6. FY15 FY14 FY13 6 Mission Support Planning Workshop 2/20/2013

7. For more info... 7 Mission Support Planning Workshop 2/20/2013

8. FY13 Financial Outlook – HEP Continuing Resolution expires March 27, 2013  All-year CR at FY12 levels is most likely scenario now  Science Lab Initiative infrastructure $2.5M (not HEP) on hold as “new start” Sequestration may take effect March 1 st... ... but will it endure, and if so, at what level?  No immediate effect on lab - will have 6 months of funding as of 2/28/13.  5% exercise done by DOE - would be ~$18M cut if pro-rated across HEP Significant concerns at funding level of $375M (down ~7.5% from FY12)  Accelerator R&D/SRF program is $4M short of Lab plan  NOvA Project cost review resulted in transfers to Lab > $3M to date  Squeezing to do first-phase CDF refurbishment for IARC program by deferring several GPP projects - ~$3M Debt ceiling crisis has passed for now – expected to hit limit again ~August 8 Mission Support Planning Workshop 2/20/2013

9. Cost of Doing Business – Indirect Costs Indirect Costs are costs that cannot be directly identified with a single “final cost objective”  Fermilab’s “final cost objectives” are the DOE B&R categories  Most of us in this room, most of the time we’re working, are “indirect costs” Indirect costs must be allocated in a consistent way based on the “causal-beneficial” relationship between the indirect cost and the activity it’s being charged to. Indirect costs must be allocated in a consistent way based on the “causal-beneficial” relationship between the indirect cost and the activity it’s being charged to.  The most common method to do this is to pool similar indirect costs together, define a base of costs that will pay for each pool, and establish a rate to apply to the costs in the base that will allocate the pool. Indirect cost allocation is governed by Cost Accounting Standards  Cost Accounting Standards is a provision in FRA’s contract with DOE  FRA is required submit a Cost Accounting Standards Disclosure Statement to DOE for approval any time the methodology for allocating indirect costs changes significantly. 9 Mission Support Planning Workshop 2/20/2013

10. Cost of Doing Business – Indirect Costs (cont.) 10 Mission Support Planning Workshop 2/20/2013

11. Indirect Costs by Organization FY08-FY13 11 Mission Support Planning Workshop 2/20/2013

12. Questions? 12 Mission Support Planning Workshop 2/20/2013