# Presentation: 016725

## FY 2006Budget Proposal

## Materials in Your Packet

- Copies of these slides
- FY2006 Budget Package
- Proposal (p.1)
- Cost analysis (p.2)
- Transfer/Direct breakdown (p.3)
- Personnel (p.4)

## FY 2006 Highlights

- No change in fees:  Transfer Pay, Direct Pay, Direct Express or training
- Adequate funding for improvements to online account data, Financial Management System and security compliance
- Assume revenue at current level
- Proposed budget decrease of -$82,392

**Notes:**
Decrease possible because we’re budgeting less for FMS.  Same number of staff, but increases in salaries and benefits offset by decrease in FMS $$.

## 1 - FEDLINK Program Costs

- 		_   __FY 2005   __	__    FY 2006_
- Direct costs 	$4,480,467	$4,391,508
- Indirect costs	   $531,136	$540,725
- Total	$5,011,603	$4,932,233

**Notes:**
Indirect costs lower in FY2005 than in FY2006 because charges related to Momentum implementation were not “taxed” by LC in 05.

## Cost Breakdown Analysis

- Set transfer and direct fees fairly
- Each group pays appropriate share
- Target shares
- Transfer Pay 	$4,441,888
- Direct Pay 	$97,291
- Direct Express 	$216,254
- Administrative fee target	   $4,755,433

##  		      FY 2005	      FY 2006
Transfer Pay Accounts	1,974	1,974
Service dollars	$64,425,585	$64,500,000

Direct Pay Accounts	24	24
Service dollars	$7,700,000       	$7,700,000		
Direct Express Accounts	55	57
Vendor billing	$27,000,000	$31,000,000

- Transfer Pay Accounts	1,974	1,974
- Service dollars	$64,425,585	$64,500,000
- Direct Pay Accounts	24	24
- Service dollars	$7,700,000       	$7,700,000
- Direct Express Accounts	55	57
- Vendor billing	$27,000,000	$31,000,000

- 2 – Service Activity Base

**Notes:**
Direct Express are accounts are number of vendors, not number of customers.  Estimate modest growth in Direct Express based on our expectation that awareness among customers and compliance among vendors will continue to improve, because we have programs in place to improve awareness among contracting officers and compliance among vendors.  FEDLINK also anticipates a few more online vendors will be added.

## 3 - Fee Structure

- 		_    __FY 2005_	_    FY 2006_
- Transfer Pay
-  First $300,000	7.75%	7.75%
-  Over $300,000	 7.00%	7.00%
-  Over $1,000,000	5.00%	5.00%
- Direct Pay
-  First $100,000	$1,200	$1,200
-  Over $100,000	0.6%	0.6%
- Direct Express	0.75%	0.75%

## 4 – Projected Revenue

-  		 _       __FY 2005_	   _     FY2006 _
- Administrative
-  Transfer Pay	$4,452,802	$4,459,360
-  Direct Pay	$74,021	$73,800
-  Direct Express	$202,500	$232,500
- Training
-  Reimbursables	$85,500	$95,900
-  Classes	$74,100	$80,900
- Total	$4,888,923	$4,942,460

## 5 – Annual Surplus/(Deficit)

- 		_      __FY 2005__	__     FY 2006 _
- Projected revenue	$4,888,923 	$4,942,460
- Expenditures	   $4,875,502	$4,932,233
- Surplus/(Deficit) 	$13,421	$10,227

## 6 - Accumulated reserves	

- FY05 beginning balance		 $1,714,660
- Projected surplus from FY05		 $13,421
- Faxon estimated loss		($455,000)
- FY05 ending balance		$1,273,081
- FY06 budget surplus		$10,227

**Notes:**
Salary lapses in FY04 and 05 cover Faxon loss in FY05.  We expect to recover part of the $455,000 in the settlement of the Faxon bankruptcy, but have not budgeted for it because we cannot reliably forecast how much will be paid or when.

## Steps in Budget Process

- Working Group
- Survey
- FAC
- FEDLINK members
- FEB
- FLICC members

- Member approval
- FLICC vote
- FEDLINK comments
- Final approval   Librarian of Congress

## Working Group Members

- _Returning Members_
- Carol Bursik, DOJ
- James King, NRL
- Gay Posey, PTO
- Ellen Swain, GAO
- Barbara Wrinkle, USAF
- Diane Zehnpfennig, AF Medical Library

- _New Members_
- Monica King, Army
- Judy Russell, GPO
- _FLICC Office_
- Kathryn Mendenhall, FLICC
- Joe Banks, FFO
- ShunFong Seto, FFO
- Lynn McDonald, FNO
- Robin Hatziyannis, FPE

## Questions?

- flicc@loc.gov