# Presentation: 562607

## Ames Research CenterOffice of the Chief Financial OfficerUpdate and Q&A

**August 5, 2008**

## Agenda

**Special Topics**
**NSSC Transition**
**E-Travel**
**Budget Schedule**
**Agency Top Ten Resources Management Issues**
**Fiscal Performance Related Deadlines**
**Key FYE dates**
**Fiscal Performance Status**
**New appropriation structure**
**Q&A**

## Special Topics

**Financial Services Contract**
**Hiring Freeze**
**Latest Code C org charts available on the CFO website**
_**[http://cfo.arc.nasa.gov/](http://cfo.arc.nasa.gov/)**_

## NSSC Transition

- Accounts Payable (AP), Accounts Receivable (AR), and Treasury Reporting (FBWT) activities transitioned to NSSC July 1
- NSSC contact center for inquiries on AP/AR/FBWT
- Phone inquiries: 1-877-677-2123 (or 1-877-NSSC123)
- Fax inquiries: 1-866-829-6772
- Email inquiries:  nssc-contactcenter@nasa.gov
-  Post transition support
- The Center will provide support to the NSSC not to exceed 90 days after transition
- ARC personnel travel to NSSC during July/August stabilization period
- Grants
- AP personnel now working on Grants transition
- Centerwide email notification of Grants transition schedule went out on July 24
- Q&A forum held on July 29 in Bldg 245 Auditorium at 1pm.  Additional Q&A sessions to be scheduled in August or September as additional information is available
- January 2009 target date for transition
- Financial (FI) Invoice (for invoices that do not need purchase orders, like Fedex)
- Details on transition plans to follow
- January 2009 target date for transition

## E-Travel Update 

**The eTravel Implementation Approach has been finalized**
**The approach will use “Designated Preparers” in each organization who will prepare travel documents and reservations on behalf of travelers**
**Designated Preparers for each organization are being identified by Directors  **
**Travelers will submit Travel Request Forms to Preparers who will make reservations and prepare travel authorizations and vouchers **
**Advantages of this approach include:**
**Reducing the administrative burden from travelers **
**Streamlining communications and training **
**Providing consistent and knowledgeable staff who is highly trained in travel regulations, policies and procedures**
**Reducing confusion, errors and delays **
**Lowering the accumulation of transaction fees by having trained Preparers utilize more online booking and less travel agent support **
**Addressing existing Mac user issues**

## E-Travel Update – Project Team Activities

**Fay Farrow visited KSC last week for Pilot Center Lessons Learned**
**E-Travel ARC Town Halls in the Main Auditorium (Bldg 201) set for:**
**Wednesday August 6****th**** from 10-11am**
**Thursday August 14****th**** from 2-3pm**
**Planning training:**
**Communications regarding Instructor-led and web-based training will be sent in August for both required and optional training activities**
**Instructor-led Training will begin in September**
**Stabilization support activities in October will include:                        Live Labs, Profile Set-up Help Tables, Cafeteria Demos**
**Project Team members and Travel Office staff will attend System Integration Testing in August**
**Please visit the website for more eTravel information:**
_**[http://](http://iemp.arc.nasa.gov/etravel.html)**__**[iemp.arc.nasa.gov/etravel.html](http://iemp.arc.nasa.gov/etravel.html)**_** **

## Slide 7

## Budget Schedule Highlights

**July 31 – ESMD/Cx Rev. 1 due**
**July 23-31 – N2 is open to the Mission Directorates to make adjustments**
**August 7 – the IIA (Institutional & Infrastructure Alignment) reports are due**
**The workforce snapshot 2 originally due with the IIA has been slipped**
**HQ has decided to  combine the workforce Snapshot 2 & 3 into one submit at the end of September/early October**
**August 13 – the Final Issues Book and Program Decision Memorandums (PDM) book is due out**
**August 22 to September 5 – N2 will open for Center updates**
**September 9 – Agency “current services” submit to OMB**
**September 20 – Agency “delta” submit to OMB**

## Agency Top Ten Resources Management IssuesAs of June 30, 2008

- _Comparative Performance Analysis FY 2008 vs. FY 2007_:  SOMD’s exceptional budget execution performance through the 3rd quarter has contributed directly to a positive overall Agency obligation trend.  While there has been significant improvement over last year’s funds distribution, commitment, and obligation performance, a concerted effort will be needed over the balance of this fiscal year in order to achieve the Agency’s EOY unobligated target—reducing last year’s carryover by 50% (Charts 1-4).
- _Major 4__th__ Quarter Challenges_:  The total Agency unobligated balance has been reduced to $4.3B; however, ~80% ($3.4B) of the unobligated total is still uncommitted (i.e., PRs have yet to be initiated), and $491M still has not been distributed to the Centers by the CAMs (Charts 5-6).
- _Limited Procurement Options_:  In terms of achieving the EOY unobligated target, the Agency’s Procurement management flexibility will be greatly reduced if funds are not distributed and committed ASAP.  Programs and Centers will be limited to initiating only incremental funding/forward funding actions, grant and cooperative agreement awards, and small purchases in August and September to ensure funds are obligated by 9/30 (Charts 7-8).
- _Undistributed 2-Year Funding_:  Although significant progress has been made by many CAMs in distributing their PY 2008 funds, $357M of 2-year funding has yet to be distributed to the Centers at the end of the 3rd quarter.  Almost two-thirds of the undistributed funds reside in SMD– the majority linked to Op Plan #2 approval (Charts 9-10).
- _Undistributed Construction Funding_:  Through the end of June, $91M of No-year/3-year Construction funding still remains undistributed. The bulk of these undistributed funds reside in SOMD ($44M) and ESMD ($40M).  Unless some CAM or Agency management action is taken quickly, most of these funds will likely translate into EOY unobligated carryover (Charts 11-12).

- _Uncommitted PY 2008 2-Year Funding_:  Since $3.1B of 2-year funding (~80% of the current unobligated balance) is still uncommitted, a significant amount of PRs will need to be initiated early in the 4th quarter to achieve the Agency EOY unobligated carryover goal. Program and Center contingency planning will need to move into high gear to develop FY 2008 spending plans for all uncommitted balances at the end of July (Charts 13-16).
- _Unobligated PY 2008 2-Year Funding_:  An exceptional 85% obligation performance by SOMD to date disguises the fact that many CAMs and Themes are lagging significantly behind the Agency obligation benchmarks through June. Contingency obligation plans need to be implemented ASAP by all CAMs and Centers continuing to perform below the Agency obligation targets (Charts 17-20).
- _Uncommitted/Unobligated Construction Funding_:  A major threat to achieving the EOY unobligated carryover goal is the fact that $320M (~70%) of the Agency unobligated No-year/3-year funding is still uncommitted – most of which resides in ESMD, SOMD, and Institutional CoF.  The $467M of unobligated No-year/3-year finding to date poses a major threat to NASA’s ability to reduce its EOY unobligated carryover below $1B this fiscal year (Charts 21-24).
- _PY 2007 Expiring Funds_:  With only 3 months left, the Agency still has ~$20M of PY 2007 funding that is subject to expire if not obligated by 9/30.  A trade-off of PY 2007 and PY 2008 funding should be instituted ASAP for any funds not guaranteed to be obligated this fiscal year to avoid any risk of NASA funds expiring (Addendum).
- _Agency Management and Operations Budget_:  Many HQs Staff Offices are lagging behind the OCFO commitment and obligation benchmarks to date, and several are projecting significant levels of unobligated carryover which will exceed their 100% EOY obligation target levels.  Rebalancing the EOY targets across other CAMs is underway to offset the Staff Offices performance in order for the Agency to meet its overall goal (Addendum).

## Fiscal Performance Related Deadlines

**Some PR/SR/Labor Deadlines were last Friday**
_**Purchase Requests:**_**  Deadlines for Receiving Purchase Requests in Code JA in order to **_**ensure obligation by Sept. 30th**_
**PR Submission Date:**
**Competitive Small Purchases $25K - $100K: ****Aug. 1, 2008**
**Interagency Agreements: ****Aug. 1, 2008**
**Task Orders under Existing Contracts: ****Aug. 1, 2008**** **
_**Service Requests:**_** ****August 1st**** is the deadline for submitting SRs to the Demand Service Pools in order to **_**ensure obligation by Sept. 30th.**_
**Mass Labor Adjustments cutoff:  ****Aug 1, 2008**
**Other deadlines pending later this month**
_**Purchase Requests:**_**  Deadlines for Receiving Purchase Requests in Code JA in order to **_**ensure obligation by Sept. 30th**_
**PR Submission Date:**
**Incremental Funding (all dollar levels):  ****Aug 29, 2008**
**Small Purchases < $25K:  ****Aug 29, 2008**
**Grants**
**Account setup cutoff for new awards:  ****Aug 30, 2008**

## Fiscal Performance Related Deadlines (continued)

**HQ is monitoring PY07 expiring funds**
**PY 07 funds in labor must be obligated in the pay period ending August 16****th**** or transferred out and obligated elsewhere**

## Key Fiscal Year End Dates

**SAP shut down: Tuesday, September 30 @ 9:59 PM PST**
**SAP opens for PY08 activity: Tuesday, October 7**
**PY09 funding (Direct & Reimbursable) available at the center level: Wednesday, October 15**
**All FYE communication available on the CFO page**
**http://cfo.arc.nasa.gov/fye.html**
**Bulletin releases and updates**
**Agency’s FYE and FY start up task list**
**List of POCs by functional area**

## Fiscal Performance Status

## Uncommitted PY 2008 2-Year Budget By Center (%) As Of July 31, 2008

## Unobligated PY 2008 2-Year Budget By Center (%) As Of July 31, 2008

## Uncommitted No-Year and 3-Year Funding By Center ($M) As Of July 31, 2008

- Total $265M

## Unobligated No-Year and 3-Year Funding By Center ($M) As Of July 31, 2008

- Total $401M

## Expiring PY 2007 2-Year Unobligated Budget By Center ($M) As Of July 31, 2008

- Total $9.5M

## Agency Financial PerformanceAs of July 31st, 2008(Obligations)

## ARC Financial PerformanceAs of July 31st, 2008(Obligations)

## Agency Financial PerformanceAs of July 31st, 2008(Costs)

## ARC Financial PerformanceAs of July 31st, 2008(Costs)

## ARC End Of Fiscal Year PY 2008 Unobligated Carry-over Projection Reported to HQ

_**Updated Center EOY Unobligated Carryover Forecast**_**:  $20.6M (based on funds received to date)**
_**Explanation for Projected Unobligated Carryover**_**:**
**Labor**
**$7M of the labor carry-over covers ARC for 8 days into FY09. **
**An additional $2M labor carry-over is based on program specific requirements covering over 25 SMD R&A as well as LCROSS labor through launch.**
**Procurement**
**ESMD unobligated carryover consists of $2.3M for LCROSS liens/reserves, $1.7M for BION, NRAs, and TROPI Re-flight Project, and $2M for TPS.**
**SMD unobligated carryover consists of $4.3M across 25 WBS Elements.**

## Potential Contracts Issues/Concerns Summary

_**Key Contract Actions Required to Meet Obligation Targets**_
- Jacobs Technology Contract, also referred to as Aerospace Testing and Facilities Operations and Maintenance (ATOM), contract number NNA04BA85C expires on July 31, 2009, and currently fully funded to the contract level.  The ATOM JOFOC is in it's final review stage.  JOFOC in final review.  Anticipated Modification date is August 15th.
- ELORET Contract (for Research and Development) ends September 30, 2008, but is not fully funded.  The re-compete will not be awarded before the end of the fiscal year.  Procurement is working to extend the current contract.** **
- ACITS contract expires October 14, 2008, and is currently fully funded.  A non-competitive follow-on contract with Perot Systems (formerly QSS Group, Inc.) is anticipated to be awarded with the base period of performance starting September 1, 2008 and ending September 30, 2009.
- SAIC - Simulation working on increasing the contract value.  The bid has been received from the vendor and procurement is working to issue a modification.
- Logyx has reached its cost cap and cannot obligate any additional funds until a Blanket Purchase Agreement has been put in place.
- National Space Grant Foundation Cooperative Agreement, which funds students and post doctorates, expires September 30, 2008.  Working with Procurement on a sole source justification to extend the Cooperative Agreement for one year for ~$3M.
- Financial Service contract funding actions are being carefully reviewed in anticipation of the follow-on award.  Directorates and Programs are being conservative on how much funds they are obligating against the existing PowerTek contract to insure they have sufficient funding to obligate against the follow-on contract.

## Reminder -  Appropriation Structure for PY09

- (1) Final acceptance of the 3 digit fund prefixes requires the Competency Center to review derivation rules.
- (2) ”Exploration” fund name will be changed to “Space Operations” however the decision to keep the prefix for this account as “EXC” has been made by the Comptroller and the Director of Financial Management based upon previous lessons learned.

## Budget Authority Distribution Targets

**Budget Authority Distribution Targets**

## Questions?

- Find these charts at _[http://cfo.arc.nasa.gov/](http://cfo.arc.nasa.gov/)_