Building a Better Budget FY 2011 Workshop An ICASS Service Center Presentation 1

TOPICS Highlights of FY 2011 Scorecard Elements VAT (sub-object 4161 and 4163) Comparison of Financial Plan to Actuals Carryover and Recoveries Funds Depreciation/Additional Capitalization Costs 2

Comparison of Scorecard A’s 2008 Final 2010 Final AF - 40 EAP - 19 EUR - IO - 39 NEA - 12 SCA - 11 WHA – 22 Totals AF - 40 EAP - 19 EUR - IO - 39 NEA - 12 SCA - 11 WHA – 22 Totals AF - 29 EAP - 14 EUR - IO 39 NEA - 10 SCA - 5 WHA - 26 Totals AF - 29 EAP - 14 EUR - IO 39 NEA - 10 SCA - 5 WHA - 26 Totals

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Highlights of FY 2011 Scorecard Elements NEW: Budgeting by Cost Center Top Three Unfunded Priorities “Accounts & Records” in FM Services (Lite) REVISED:Detailed Comments in BSW Costs under Selected Sub-Objects Financial Summary and Key Issues Cost Savings Initiatives 5

New Scorecard Element Budgeting by Cost Center In the OBI 6

Budgeting by Cost Center: It Makes Cost (Time) Allocation Easier 7

New Scorecard Element Top Three Unfunded Priorities Provide a justification for the item Provide an impact statement if post does not receive funds Identify each item with the U.S dollar cost Note: Unfunded items must be included in post requirements and identified by sub-object code(s). If no unfunded priorities, state so. 8

Top Three Unfunded Priorities Reporting Exercise 9

Show Your Unfunded Items Like This! 10

Show Your Unfunded Items Like This! 11

New Scorecard Element Accounts & Records Factor Group Note: Non-Serviced agencies should not have Accounts & Records counts in 6225 or

How to Handle Comments Format Sub-Objects: 2552, 2589, 2699,

ARE WE DOING BETTER? 14

Financial Summary and Key Issues In this section, post must address LE Staff wages and the impact of growth on post’s operations. 15

Cost Savings Initiatives Comment on at least one prior year cost savings initiative and its impact on post operations. Identify cost savings measures with anticipated (estimated or actual) U.S. dollar savings. If post has no cost savings initiatives, state: "This post has no cost savings initiatives for FY 2011". 16

Value Added Tax (VAT) Two sub-objects for VAT 4161: Value Added Taxes – Refundable 4163: Value Added Taxes – Non-refundable Starting FY 2011, post must separate receivable VAT from non-receivable VAT No changes to the existing accounting instructions for recording VAT Ref: State (Aug. 23, 2010) and State (Oct. 1, 2010) 17

Budget Techniques for VAT OBI 18

Refundable VAT in the BSW 19 SCENARIO #1 SCENARIO #2

Non-Refundable VAT in the BSW

Compare Prior Year Fin Plan to Actuals 9/30/10 Actuals $175,000 $27,800 $69,950 21

Carryover and Recoveries ICASS Overseas Hierarchy Restructure (FY 2010) Unique overseas ICASS allotments: 5XXX: Traditional Bureau 1XXX : DS 2XXX: OBO Continue tracking FY 2009 (and prior year) funds based on funding categories 22

Depreciation of Capital Assets Why budget for depreciation? 1.Required by Working Capital Fund. 2.Reviewed by Regional bureaus to monitor and justify post funding needs. Update the Depreciation Schedule information in the Initial and Final Requirements stages for this to be applied to the OBI. 23

Budgeting for Depreciation and Additional Capitalization Costs 24

25 QUESTIONS?