# Presentation: 463197

## Implementing Reimbursable Standard Operating Procedures and Policies 

- Finance Conference
- May 10, 2007

## Purpose

**Provide background on reimbursable BPR recommendations and Reimbursable Working Group**
**Provide update on progress toward improving reimbursable policies and procedures**

- October 11, 2006

## Background

**A reimbursable occurs when NOAA receives funds to provide goods and/or services to the public, private sector and/or other Federal, state and local agencies.**
**BPR reviewed reimbursable processing in NOAA and published findings and recommendations**

- October 11, 2006

## Current Issues with Reimbursable Agreements

**There is no standard NOAA-wide template/model for reimbursable agreements**
**NOAA-wide guidance on reimbursable agreements is outdated**
**Each Line Office has different procedures for processing reimbursable agreements**
**Control/tracking of reimbursable agreements varies by Line Office**
**Many reimbursable agreements do not have all the required information**

- October 11, 2006

**Notes:**
HUMAN CAPITAL CHALLENGES: 
By FY 2009, over 30% of NOAA employees will be retirement-eligible
 Our programs, business practices, and technologies are likely to continue to change, requiring different levels and different kinds of skills and knowledge
 A diverse workforce enhances organizational performance
 Provides data for agency, manager, employee use

REGARDING THE PMA (President’s Management Agenda):
 Assessment reflected by light color: red, yellow, or green
 Green light requires “No skill gaps/deficiencies exist in mission-critical occupations”
 NOAA is currently “Yellow”
 Strategic human capital management will continue to be scrutinized by external stakeholders (GAO, OMB, Congress, OPM, DOC)

## Reimbursable Working Group

**BPR recommended NOAA establish a Reimbursables Working Group to discuss and coordinate issues of interest to those involved in the reimbursables process**
**Reimbursables Working Group is comprised of representatives from each Line Office, Finance Office, NOAA Budget Office and DOC OGC**
**Reimbursables Working Group met, developed and agreed to standard operating procedures and NOAA-wide policies**
**Procedures and policies have been presented to and approved by the CFO Council**

- October 11, 2006

## Reimbursable Working Group Accomplishments

**Reimbursable staff training plan**
**Agreement cover sheet**
**Model agreement template**
**List of reimbursable authorities**
**High level standard operating procedures; draft detailed standard operating procedures**
**Policy document**

- October 11, 2006

## Standard Operating Procedures 

- FMC Receives customer request to provide reimb goods or services

- Exec Sec submits RA  to DOC OGC for review and clearance.  Returns RA to LO HQ for revisions if required.

**Yes**

- LO HQ submits RA  to Exec Sec for review & tracking

- Finance reviews for financial/ accounting information & notifies LO HQ

**      **_**LO FMC**_**	****               **_**LO HQ**_**	****                 **_**Finance Office**_**	****     **_**Exec Sec/OGC**_**	**

**No**

- FMC defines work to be performed with customer

**FMC Prepares Agreement using NOAA templates and cost models**

-  Is RA Complete?

- LO HQ Reviews RA Documents for completeness

**a**

- Agreement is signed by LO HQ or FMC.  LO HQ keeps copy.

-  FMC keeps original agreement.

##  Standard Operating Procedures

**FMC Completes RADG002, Project Code Request, and Allot/UCO Request**

- Additional updates needed?

**Yes**

**No**

- Finance enters changes to RADG002 & CM004

- Finance submits Allotment/UCO Request to NOAA Budget & notifies LO HQ

** ****Standard Operating Procedures**

** **_**LO FMC**_**                       **_**LO HQ**_**                        **_**Finance Office**_**	****      **_**NOAA Budget**_** **

- NOAA Budget records allotment on FM063 and notifies LO HQ

- FMC records  Reimbusable BOP on FM066

**Finance reviews agreement, request forms, RADG002 and CM004.**

**LO HQ Reviews documents & unapproved RADG002, and   records CM004 project info.**

**a**

- Finance approves and activates RADG002 & CM004

- Finance records and approves UCO on  RADG003

- LO HQ approves  Reimbusable BOP on FM066

- LO HQ notifies FMC that allotment is approved

- October 11, 2006

## Standard Operating Procedures

**LO FMC drafts the agreement using standard templates; directs questions to LO HQ to coordinate response**
**LO HQ reviews agreement; forwards to FO and OGC for clearance; notifies FMC when cleared**
**FMC enters agreement into reimbursable agreement screen (RADG002); completes request forms for project code and allotment/UCO; forwards to LO HQ**
**LO HQ records CM004 project information; forwards agreement, RADG002, and project code and allotment/UCO requests to FO**

- October 11, 2006

## Standard Operating Procedures (continued)

**FO reviews and approves RADG002 and project code (CM004); enters and approves UCO (RADG003); sends allotment/UCO request form to NOAA Budget; notifies LO HQ**
**NOAA Budget enters allotment; notifies LO HQ**
**LO HQ notifies FMC; FMC enters BOP; LO HQ approves BOP**

- October 11, 2006

## Changes to Current Operating Procedures

**LO HQ receives information from FMC and passes it on to FO, OGC and NOAA Budget.  LO HQ receives notification from FO, OGC, NOAA Budget and forwards it to FMC**
**FO only accepts reimbursable requests and documents from LO HQ**
**NOAA Budget only accepts reimbursable allotment requests from Finance Office**
**Finance Office approves establishment of agreement (RADG002) and project code (CM004) in CBS; enters and approves RADG003**
**All Line Offices follow same procedures**

- October 11, 2006

## Expected Outcome

**Process is centralized at LO HQ**
**Provides consistency in processing and oversight**
**Reduces redundant processing**
**Increased collaboration between Line Offices, Finance Office and Budget Office **

- October 11, 2006

**Notes:**
The AGM for FY2009-2013 lists “strategic workforce management” as a NOAA-wide organizational priority: 
Focus areas: (1) a more flexible, diverse, and mobile workforce with minimal skills gaps; (2) ability to rapidly reconfigure or acquire new skills as technologies and program needs change

## Standard Reimbursable Policies Now in Existence

**Reimbursable work cannot start until a project number has been established**
**Non-federal sponsors will make payment in advance of NOAA incurring costs**
**Waivers of overhead require legal authority and NOAA Budget Director approval; overhead cannot be waived for legal authorities that require full cost**
**Undelivered orders must be deobligated 5 years after appropriation expiration date**

- October 11, 2006

## New Reimbursable Policies

**All reimbursable staff must take training**
**Reimbursable projects should consist of one sponsor/one agreement/one project code**
**Reimbursable projects should not be used for internal NOAA-only purposes**

- October 11, 2006

## New Reimbursable Policies (continued)

**Temporary work authorities are only valid for 3 months and can’t cross fiscal years; FO may shut off project**
**Agreement with federal sponsors should not include both advances and payment plans**
**No adjustment of costs that have been billed/collected without approval from FO; FO may shut off project**

- October 11, 2006

## New Reimbursable Policies (continued)

**Bills will be prepared quarterly; exceptions require NOAA CFO approval**
**Collections in excess of cost will be refunded 6 months after project expiration**
**The FO will notify LO/SO when project costs exceed funding; if no remedy in 30 days, FO will shut off project**

- October 11, 2006

## Next Steps for Reimbursable Working Group

**Develop detailed reimbursable processes and business rules**
**Enhance and present internal NOAA reimbursable training**
**Roll out procedures and policies on**
**	****July 1, 2007**

- October 11, 2006