Spend Plan - OCFO/OCAO

FY 2018 NWS Budget Planning Schedule and Guidance

August 30, 2017

Guidance from the NOAA Budget Office is to plan Fiscal Year 2018 for a continuing resolution that will extend the full year.  To this end, NWS must create and execute spend plans to identify how it will execute budgetary resources.  In addition, NOAA requires a high-level spend plan to inform our fiscal year allotments.

This guidance defines the process NWS will use to create spend plans that support budgetary resources available during a full year continuing resolution.  To this end, NWS portfolios, programs and FMCs will create its budget plans using a phased approach as follows:

Phase 1: Identify funding allocations and allotment targets (August 30-September 15^th, 2017):

• Assuming a full year CR based on the FY2017 Enacted as set forth in the attached Draft FY 2018 Control Table, Portfolios should identify monthly and quarterly allotments of budgetary resources among programs and FMCs.

• Portfolios should coordinate allotment targets with FMCs (September 11^th)
• Using the attached spreadsheet “FY 2018 Allocation Template”, portfolios submit monthly allotment needs for the fiscal year.  Amounts should be requested by FMC and PPA.  Submit to CFO1, Nick Bagwell (September 11^th). 

• CFO1 compiles and submits quarterly allotment requirements by PPA and FMC to NOAA Budget (September 15^th).

Phase 2: Finalize spend plans in MARS Data Entry (September 1 - October 16, 2017)

• The previously imposed travel ceiling is no longer in effect. 
• FMCs create spend plans using MARS data entry.  Accordingly, using funding targets from portfolios, FMCs enter full-year FY 2018 Spending Plans in MARS Data Entry as MARS Memos (October 16, 2017).  NOAA Budget’s intent is to have initial BOPs uploaded at the beginning of the fiscal year.  This approach will be finalized based on the initial CR period.
  • FY 2018 MARS labor projections should be completed no later than September 15^th to facilitate initial review of projected labor costs and conformance with FTE ceilings. 
  • When preparing FY18 spend plans, consider carryover spending to occur during the last half of Q1.
• Portfolios review MARS spend plans (memos) using MARS reports (suggest NAO118) to verify overall plans are consistent with total budgetary allocations, FTE amounts, etc. (October 16-20, 2017)
• CFO1 evaluates spend plans and provides feedback where/if appropriate (October 23 -27, 2017) 
  • CFO1 confirms cumulative plans by PPA do not exceed quarterly allotments and equal annual allotment
  • CFO1 validates FTE allocations to cap
  • CFO1 reviews labor (hiring plans) and funds transfer plans

Phase 3: Create CBS Budget Operating Plans (dates TBD)

• Be advised that NOAA Budget has stipulated that for FY 2018, CBS Budget Operating Plans must be created once the initial allocation of funds is received.  To this end, Portfolios and FMCs will be required to either work with CFO1 to upload the portion of their MARS spend plans covered by the initial CR into CBS, or manually create CBS Budget Operating Plans that correlate to the amount of funds allotted.  More details regarding this process will be forthcoming. 

1. General Spend Plan Guidance

• Anticipate a full year continuing resolution based on the FY 2017 enacted.  Amounts by PPA are identified in the attached “Draft FY 2018 Control Table.”  Note the following:
  • The amount provided is based on the FY17 funded amount as the baseline and reflects prior year de-obligations, Hollings Assessments and NOAA/NWS Assessments including IT Redirect, NWS Reserve, NWS M&A, NWS Direct and NOAA Bills, and NWS Common Services.
    • Regarding these assessments, the direct bill amount increased slightly by $204K.  The largest increase in assessments is associated with Enterprise Services which represents a $594k increase over FY 2017, based on preliminary estimates from NOAA.  This increase is primarily attributed to an increase in workforce management and facilities costs offset by a decrease in the Working Capital Fund.
• Initial budget operating plans will be developed in MARS as a “MARS Memo” based on the target allocations.  Budgeted amounts will be used to identify quarterly allotment needs.
• The projected Management and Administrative (M&A) budget for this spend plan guidance is $35.461M a $232k increase and about $4M less than the FY18 PB estimate. 
• Common Services withholdings are identified on a labeled tab in the FY18 control table.

2. Guidance for MARS Labor Projections

• FMCs must complete MARS labor projections to inform their spend plan amounts.
• Hiring Assumptions:
  • Start the fiscal year with labor estimates that reflect positions already filled or known to be onboarding.
  • Starting January 1^st, assume 3-6 months to onboard a new hire from the date WFMO has accepted a hiring package for processing.
  • Planned FTE by Portfolio may not exceed the annual FTE levels for ORF and PAC by Portfolio.
• The President’s Budget proposes a 1.9% pay raise effective January 1, 2018. This is already built into the MARS labor projection module
• MARS calculates Overtime, Night, Sunday, and Holiday pay based on the NOAA Differential Rate Table and Personnel Form selection boxes. MARS data entry users may select Premium pay for eligible employees using the Personnel Tracking form in the labor projection module.
• The MARS labor projection module does not calculate cash awards or lump sum leave payouts. Enter these planned amounts into your spend plan under the appropriate object classes.
• Estimate cash awards at 1.0% of base salary (excludes benefits) for non-bargaining unit employees. Estimate cash awards for bargaining unit employees consistent with previous practices.
• MARS Labor Projection User Guide:  https://mars.rdc.noaa.gov/docs/reference/de/uog_labor.pdf
• MARS Labor Projection Reports:
  • 31 Labor Projection Details
  • 31s Labor Projection Summary
  • 31q Labor Projection Summary by Org/Project/Quarter
  • 38 Employees Without Labor Projections
  • 101 Employees with Invalid Labor Projection Data on the Labor Generation Form
  • 102 Employees with Invalid Labor Projections

3. Guidance for Planning Contractual Services

• All planned FY18 acquisitions greater than $150,000 must be entered into the Forecasting and Advanced Acquisition Planning System (FAAPS), including contracts, purchase orders, task or delivery orders, and modifications. FAAPS #s should be referenced on the spend plan template.  FAAPS should be updated by September 30, 2017 and quarterly thereafter. 
• Quarterly funding allotments for acquisitions should match the timeframe that the procurement request is submitted to the NOAA Acquisition and Grants Office (AGO).  Please refer to NOAA Acquisition Alert 15-03 for requirements to fully fund procurement requests when submitted.  Acquisition obligations should be included in MARS spend plans in the month in which they will be awarded/obligated.
• Program and project managers and budget officers should factor in procurement administrative lead times (PALTs, see Appendix C of the Commerce Acquisition Manual), as well as NOAA AGO cut-off dates published on their website when planning for contractual services. 
• Acquisitions for IT systems with a FIPS-199 rating of high or moderate impact should also consider Acquisition Alert 15-02: Supply Chain Risk Management when planning
• FMCs are strongly encouraged to plan for and obligate acquisitions as early in the year as possible; including during a continuing resolution where required and appropriate.

4. Guidance for Planning Facilities

• FMCs will develop separate Facilities spend plans.  For FY 2018, these separate Facilities spend plans will cover facilities related activities and be entered within MARS Data Entry.   These spend plans are used by the Office of Facilities to track and report F-Code spending across NWS.  To facilitate this, FMCs are requested to enter separate spend plans for each Organization-Project combination where facilities related spending will occur.  Facility spend plans are separated from other spend plans using (at a minimum) the Task Code “FFA – Facility Planning.“  Using the "FFA" task code is all that is required for this exercise.  FMCs are welcome to create more detailed plans that reflect the full suite of facility task codes as prescribed in Appendix D of the Appropriations Reference Manual.  All other (non-facility related) costs will then be planned under Task Code “P00 - Miscellaneous or No Task.”  Currently, this is only for planning purposes within MARS Data Entry.  CBS BOPS can still be loaded to the FMC and Program Code level.  NOTE: During execution, assign facilities task codes as prescribed in Appendix D of the Appropriations Reference Manual. However, do not use Facilities task codes for planning or executing telecommunications services/utilities as these are tracked as operational expenses.
• To better manage and track ALL facility maintenance costs (not just WFO maintenance), FMCs should plan facility maintenance under the object classes listed below. Guidance for accounting and tracking maintenance costs in the accounting system during the year of execution is available in the Appropriations Reference Manual.
  • System maintenance (OC25)
  • Emergency repairs (OC25)
  • Service contracts (OC25)
  • Labor (OC11)
  • Training (OC25)
  • Travel (OC21)
  • Rent (OC23)
  • Utilities (not for systems) (OC23)
  • Vehicles used specifically for facilities maintenance functions  (OC22) (Likely expense for AFS and regions only)

V.         Guidance for Funds Transfers

• To the extent practical, fund transfers among FMCs shouldn’t be necessary since spend plans should be established in the organization where obligations will ultimately occur. 
• Remember to follow the portfolio office cost rule in the ARM.
• Direct Bill amounts are already removed at the NOAA Budget level – no need to budget for these transfers.
• Transfers to OAR should be consistent with the scheduled outlined in the NWS/OAR Service Level Agreement
• Transfers to OMAO for NOAA Corps billets should be budgeted in Q2.

VI.        General budget planning guidance during a Continuing Resolution

• During the anticipated CR period, please plan on the following (typical) constraints to ensure continuity of NWS operations and adherence to CR spending targets:
  • Maintain all operations, services, and program activities at current levels (no program terminations) consistent with established FY 2018 CR spending targets.  Attached file "FY 2018 Control Table" establishes annual spending targets by PPA.  Updated and more specific targets by portfolio and FMC will be provided in October. 
  • Do not begin any “new starts”, significant new program or project activities, or activities of expanded scope relative to FY 2017.
  • Continue all acquisition planning activities for FY 2018, including preparation of all planned procurement documents, consistent with your advanced acquisition plans and your full-year target allocation to avoid delays later in the fiscal year.  As prescribed by Acquisition Alert 15-03, you may use "zero-dollar" requisitions to meet established procurement acquisition lead times when obligation is planned beyond the CR time period.
  • Limit travel, training and other discretionary costs to essential operational or programmatic levels.
  • Remember, no financial transactions should be charged against abolished NWS organization codes or legacy budget structure accounting codes.

VII.       Other information:

• Regarding the common services assessment, please note that the Engineer Standards Work Breakout Structure for FY 2018 holds the assessment basis constant as follows:

• The methodology for assessing the portfolios for NCWCP facilities O&M costs has changed for FY 2018.  Going forward, all facilities O&M costs are to be assigned to PPAs and appropriate programs based on a weighted average of total on-board positions within each Portfolio (both government and contractor) and the floor space assigned to and occupied by Portfolio staff. Costs associated with floor space include GSA rent and FPS charges for the facility. All other annual O&M support costs are associated with headcount (total number of staff on-board).  The ARM is being updated to reflect this change.