CEHM-B

Engineer Pamphlet

37-1-3

Department of the Army

U.S. Army Corps of Engineers

Washington, DC 20314-1000

EP 37-1-3

1 May 1998

Financial Administration

BUDGET OFFICER'S HANDBOOK

Distribution Restriction Statement

Approved for public release; distribution is 

unlimited.

CERM-B

DEPARTMENT OF THE ARMY

U.S. Army Corps of Engineers

Washington, D.C. 20314-1000

EP 37-1-3

Pamphlet

No. 37-1-3 1 May 1998

Financial Administration

BUDGET OFFICER’S HANDBOOK

1. Purpose. This pamphlet prescribes procedures and sample formats to assist Commanders

and Laboratory Directors in establishing and using operating budgets. The procedures support

the requirements established in ER 37-1-24, and this pamphlet can be used as an aid in

complying with that ER.

2. Applicability. This pamphlet is applicable to all HQUSACE elements and all USACE

Commands.

3. References.

a. ER 37-1-24, Operating Budgets.

b. ER 37-2-10, Accounting and Reporting - Civil Works Activities.

c. ER 37-345-10, Accounting and Reporting - Military Activities.

4. General. The formats and procedures may be modified to meet the requirements

established by the local commander. Suggested improvements to the operating budget

procedures and formats are encouraged and should be forwarded to the Deputy Chief of Staff,

Resource Management, Attention: CERM-B.

5. Distribution. Approved for public release; distribution is unlimited.

FOR THE COMMANDER:

19 Appendices

(See Table of Contents) Major General, USA

Chief of Staff

This pamphlet supersedes EP 37-1-3, dated 15 February 1989
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BUDGET OFFICER’S HANDBOOK

TABLE OF CONTENTS

CHAPTER

1. Introduction........................................................................................ l-l

2. Operating Budget Process........................................................................ 2-l

APPENDICES

Appendix A - Sample Budget Data Call Letter................................................... A-l

Appendix B - Budget Comparison Sheet........................................................... B-l

Appendix C - Sample Budget Data Call Checklist............................................... C-l

Appendix D - Sample Organizational Operating Budget........................................ D-l

Appendix E - Organizational Operating Budget (Typical Tech Element)

Projected Cost Schedule............................................................ E-l

Appendix F - Sample Estimated Sources of Funding ............................................ F-l

Appendix G - Schedule of Obligations, Civil Works and Military............................ G-l

Appendix H - Schedule of Expenditures, Civil Works and Military ........................... H-l

Appendix I - Schedule of Obligations and Expenditures, Revolving Fund ................... I-l

Appendix J - Summary Level Operating Budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . J-l

Appendix K - Sample Mission Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . K-l

Appendix L - Overhead Rate Computations....................................................... L-l

Appendix M - Division Office Proposed FY XX Budget....................................... M-I

i
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APPENDICES PAGE

Appendix N - Sample - Mid-Year Review Letter.................................................. N-l

Appendix O - Sample - PBAC Appointment Memorandum...................................... O-l

Appendix P - Sample - Expense Account Justification Requirements .......................... P-l

Appendix Q - Sample - Milestone Schedule ........................................................ Q-l

Appendix R - Standard Resource Codes............................................................. R-l

Appendix S - Standard Costing Guidelines.......................................................... S-l

ii
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CHAPTER 1

INTRODUCTION

1-1. An operating budget is a formal, written plan that aligns the operating requirements with 

the funding sources of an organization. An operating budget reflects the missions and specific

command objectives of the organization, as well as any limitations and controls (e.g., 

constraining targets, available funds) imposed upon it. An operating budget provides one the

means to control obligations and expenditures against approved funding levels. 

1-2. The objective of the operating budget is to provide managers with the ability to plan,

organize, staff, and control the operations to accomplish the mission for the fiscal year.

1-3. There are several factors that are critical to the success of an operating budget. The

following is a synopsis of those factors that need to be present to create a positive effect on the

process.

 a. Management Support. Managers at all levels must support the operating budget 

concept not only in the formulation stage but through the execution stage.

 b. Guidelines. Guidance must be issued early to allow sufficient time for logical thought

processes to take place, and to allow time for establishing milestone dates, specifying targets 

and limitations, defining terms, formats, and cost categories.

c. Periodic Review. Operating budgets must be reviewed periodically to determine that 

the budget is properly executed. Appropriate adjustments can be made after these reviews.

d. Level of Control. The responsibility for budget preparation and execution must be

assigned to the level of management that has the responsibility and authority to control costs. 

Managers should not delegate this responsibility to personnel who do not have the skills and

knowledge needed to prepare the organization's operating budget. Budget formulation and

execution responsibilities should be incorporated into each appropriate manager's performance

standards to ensure accountability. 

1-1
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2-1

CHAPTER 2

OPERATING BUDGET PROCESS

The operating budget process consists of seven phases. Following is a brief description of 

each phase. 

Phase 1. Formulation

This is the initial phase of the operating budget process. Budget Officers identify policies and

guidance from HQUSACE and local areas of concern. Budget Officers will also determine the

workload (income and expense), identify targets and limitations (planning and design, 

supervision and administration, overtime, travel, training, awards, etc.), income estimating

guidelines and budget milestones.

Phase 2. Review and Analysis

Budget Officers review the initial input from the organizations for reasonableness, accuracy, 

valid assumptions, and past performance. They are also responsible for ensuring rates for

departmental overhead, general and administrative overhead, facility accounts and plant 

accounts are appropriate and reasonable. Budget Officers prepare a proposed budget, identify 

the impact of alternatives to the proposed budget, make recommendations, and present the

proposed budget to the PBAC (Program and Budget Advisory Committee).

Phase 3. PBAC Review and Consensus

The PBAC will review the proposed budget and alternatives and will determine a 

recommended budget for submission to the Commander. The PBAC may identify unfinanced

requirements, showing their dollar amounts and justifications. Significant changes will be

approved by the PBAC and the Commander. 

Phase 4. Approval

The Budget Officer submits the PBAC recommended budget and alternatives for final 

Command approval. The approved operating budget is made available for execution.

Phase 5. Execution

Managers obligate and expend funds in accordance with the approved operating budget.
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2-2

Phase 6. Monitoring

Operating budgets should be monitored on a monthly basis. Feedback reports are available to

managers for monitoring actual performance compared to budgeted amounts. The Budget 

Officer provides periodic execution reports and analysis to the PBAC and the Commander. As a

minimum, mid-year review will be completed. 

Phase 7. Adjustments

Significant operating budget changes identified during the monitoring stage will be summarized

and presented to the PBAC and the Commander for approval.
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A-1

APPENDIX A

SAMPLE BUDGET DATA CALL LETTER

CEXXX-RM-B (1-1e) Date

MEMORANDUM FOR SEE DISTRIBUTION

SUBJECT: Operating Budget Data Call - FY XX

1. PART I - GENERAL INFORMATION:

 a. The purpose of the operating budget is threefold. First, it assures us that sufficient

resources are available to accomplish our mission. Second, it demonstrates that procedures are 

in place to control our cost of doing business. Third, it gives us a consistent method of

establishing and reviewing overhead rates.

b. The FY XX operating budget will be prepared utilizing the Corps of Engineers 

Financial Management System (CEFMS) Budget Module. The FY XX-1 operating budget has

been copied and will be used as a starting point in the preparation of the FY XX budget. A

briefing will be held on xx July in the training room to review the CEFMS operating budget

module and answer any questions you may have concerning the submission of data through the

operating budget module.

c. The operating budget will include appropriated and reimbursable revenues, identified by

the funding source. Revenue instructions are explained in PART III below.

 d. Operating budget data will be summarized on a standardized Summary Sheet, broken 

out between civil and military (direct and indirect). (See enclosure 1.) A LOTUS spreadsheet

will be provided via LAN message, but does not have to be used, as long as the information is

presented in the same format.

e. Resource Code justifications will be provided by all offices, except field offices, for 

each category of cost listed at enclosure 4. Sample justification sheets are provided at 

enclosure 5. A list of Resource Codes and descriptions are provided at enclosure 6. 
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A-2

Information, for Information Management (IM)-type expenses and additional Resource Codes 

for IM distributions, will be provided by IM at a later date.

f. At enclosure 7 is our milestone schedule. Changes to this schedule will only be made

 when absolutely necessary.

g. Operating Budgets will be submitted in two phases:

(1) Phase I - IM Facility Account Budgets should be submitted to RM-B no later than xx

August. Review of these budgets has been scheduled for xx August, 0900-1100, room 731. 

After approval of the IM facility budgets by the Commander, IM will issue bill-back amounts 

to the A&A and technical offices for use in preparing their operating budgets. As indicated on 

the milestone schedule, this should be no later than xx August.

(2) Phase II -All remaining technical, facility and A&A budgets should be submitted to 

RM-B no later than xx August. Review of these budgets has been scheduled for xx 

September. Time and place will be provided separately.

2. PART II - EXPENSES - Budgets will be based on missions requirements. The connection

between each expense and mission accomplishment will be demonstrated in the justification 

sheet. Budget officers will need to budget for all standard resource codes. Most of the 

Resource Codes are self-explanatory; however, some have restrictions or limitations and others

require specific instructions as follows:

a. CASHAWD - Incentive Awards - Awards will be limited to 1.5% of total regular labor 

for each Division/Office. Keep in mind that awards paid to Division/Office Chiefs will be 

included in the 1.5% pool for their Division Office, instead of being paid by the Executive 

Office G&A account.

b. REGLABOR - Regular Labor - Labor estimates will be generated utilizing one of the 

three labor estimating options available in CEFMS.

c. COMM - Communications - Estimates will be calculated using information provided by

IM. You will also include any individual contracts for communications.

d. TRANSPER - Travel - Includes ALL travel expenses including airline payments. No 

split will be made between mission and training, except on the justification sheets.

e. TRAINING - Includes government sponsored training courses, except Huntsville. For 
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A-3

Huntsville training, you must select an approved resource code identifying the course to be 

taken.

f. SUPMATRL - Supplies & Materials - Include general office supplies but exclude any 

items provided by Logistics Management (LM). A listing of items provided by LM can be f

ound on the LAN under Corporate Information, Storage Room Inventory.

g. SLUC - SLUC estimates will be provided by RM-B under separate cover.

h. DEPRE, INSURANCE, INCREMENT, PRIP - RM-B will provide a spreadsheet

with projected PRIP depreciation and insurance estimates for FY XX. If you gain a PRIP 

asset, or discover that a PRIP asset is missing from the schedule, contact RM-B.

i. EQUIPMENT - Detail must be provided in the justification sheet.

3. PART III - REVENUE

a. Revenue is defined as dollars received in the District from any outside source including

appropriated funds, customer orders, contributed funds, etc. All sources of revenue, no matter

how small, must be scheduled. In the format shown at enclosure 9, list all appropriations 

available to your office. As a general rule, A&A offices will not have revenue. The 

exceptions are support services provided other agencies and the DA Intern program. Technical

offices must ensure that the revenue listed for their office is not included by another office. 

b. Estimating revenue may require input from several different sources. Programs

Management has provided most of the information required for Civil Works revenue on the 

LAN under FORCON information. Recommended sources for Military revenue are 

CERAMMS and the appropriate Project Managers.

4. The POC for this budget call is Ms. Estimator, RM-B, XXX-5555.

Virgil Gibson

Lieutenant Colonel, EN

Deputy Commander

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C-1

APPENDIX C

SAMPLE BUDGET DATA CALL CHECKLIST

LABOR

 Has employee data been provided each account manager?

 Have the General Pay Raises and Cost of Living factors been provided?

 Has the leave rate been provided?

 Has the Government Contribution Rate been provided?

 Have overtime restrictions been identified?

 Have award targets been identified?

TRAVEL

 Have local travel policies/targets been identified?

TRAINING

 Have local training policies/targets been provided?

GENERAL

 Have inflation factors been provided?

 Has the minimal level of input been identified (i.e., division, branch, or unit)?

 Has the level of revenue detail been identified?

 Has budget guidance provided by higher commands been relayed?

 Have the Resource Code “levels” been provided (example: the Command can elect to track

budgets under “SERVICES” or by the detail breakout of AESVCS, CONSTSVCS, 

GOVPURCH, DEPRE, etc.)?
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C-2

 Has the submission format been identified (hard copy, spreadsheet, CEFMS, COBRA, 

etc.)?

 Have suspenses been established?

 Have various agency rates been provided to include vehicle rates, payroll and HR

 servicing fees, CEAP and AIS rates, etc.?

 Have Resource Codes requiring written justification been identified?



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F-1

APPENDIX F

Sample - Estimated Sources of Funding

May be used for initial or midyear operating budget reviews.

(1) Sources for civil revenue: Begin with the latest FORCON information and adjust by

program, project and technical manager input.

(2) Sources for military revenue: CERRAMS, program budget guidance, IRP and FUDS 

work plans, and PPM and technical manager input.

(3) Sources for Revolving Fund Revenue: Support agreements for services such as personnel,

finance, or contracting support provided to other Corps or DOD allotment holders. Include 

PRIP when elements of PRIP (such as installation of equipment) will be accomplished using 

in-house forces.

(4) Sources for Reimbursable Programs: EPA Superfund Line Item Review schedules, PPM 

and technical manager input.











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K-1

APPENDIX K

SAMPLE MISSION STATEMENT

The U.S. Army Engineer District, xxxxxxxxx is an operating component of the 

xxxxxxx Division, responsible for providing support in New Mexico, Southeast Colorado, and

West Texas. Within this area, it is the xxxxxxxxxx District’s mission to:

a. Plan, design, and construct authorized water resource projects.

b. Operate and maintain flood control facilities and related recreation areas.

c. Provide flood plain management services to Federal agencies, state and local

governments, and individuals. Provide planning assistance to states. Conduct studies of water

resource needs. Develop data relative to flooding potential and recent flood events.

d. Plan, conduct, and participate in training and exercises to maintain a high level of

readiness and respond to a full spectrum of emergency situations including natural disasters 

and national security emergencies.

e. Maintain contacts with other agencies such as FEMA, state and local agencies, 

elected officials, and appropriate U.S. Army Commands to assure that USACE emergency

management program objectives are properly coordinated and integrated both before and 

during either a natural disaster or a mobilization.

f. Acquire, manage, and dispose of real property for civil works projects, military

activities, and other Government agencies.

g. Administer laws concerning the regulation of activities in waters of the U.S. 

including wetlands.

h. Design and construct facilities for Air Force and Reserve Forces in New Mexico.

i. Administer and execute the Support for Others Program.

j. Administer and execute the hazardous/toxic waste remediation program.

k. Perform any other mission assigned by law.


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N-1

APPENDIX N

SAMPLE MID-YEAR REVIEW LETTER

CEXXX-RM-B (1-1e)

MEMORANDUM FOR Division/Office Chiefs

Subject: FY xx Mid-Year Review

1. References:

a. Memorandum CEXXX-RM-B, 8 Aug XX, Subject: FYxx Operating Budgets

b. CEFMS 117 Operating Budget Users Manual

c. EP 37-1-3, Budget Officer’s Handbook

d. ER 37-1-24, Operating Budget

2. This memorandum addresses the revision of operating budgets for FYxx. Each division/office 

should revise their respective operating budget requirements in accordance with the guidelines enclosed

(enclosure 1).

3. The purpose of the operating budget is threefold. First, it ensures that sufficient resources are 

available to accomplish our mission effectively. Second, it demonstrates that procedures are in place to

control our cost of doing business. Third, it allows a consistent method of establishing and reviewing

overhead rates.

4. Operating budget revisions are to be prepared utilizing CEFMS. All proposed changes must be 

entered in CEFMS no later than 15 April XX. One on one assistance will be available, if needed, to

 help you with the CEFMS input.

5. The POC for this budget call is Mr. Calculator (xxx-7286).

FOR THE COMMANDER:

3 Encls Xxxxx Xxxxxxx

Chief, Resource Management Office
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O-1

APPENDIX O

SAMPLE - PBAC APPOINTMENT MEMORANDUM

CEXXX-DE (37-1-24) APPT MEMO XX-23

 5 Sep XX

MEMORANDUM FOR SEE DISTRIBUTION

SUBJECT: Appointment of Program Budget Advisory Committee (PBAC)

1. Effective immediately, the following individuals are appointed or reaffirmed as members of the PBAC Committee.

Commander Chairperson

Dep Dist Engr for Proj Mgmt Vice-Chairperson

Deputy Commander Vice-Chairperson

Chief, Engr & Plng Division Member

Chief, Con-Ops Division Member

Chief, Real Estate Division Member

Chief, Resource Mgmt Office Member

Chief, Information Mgmt Office Member

Chief, Logistics Mgmt Office Member

Chief, Contracting Division Member

Chief, Personnel Office Advisor

Budget Officer Advisor

2. Authority is ER 37-1-24.

3. Purpose is to make decisions concerning operating budgets, manpower resources, and related matters.

4. Period is for two years.

5. This Appointment Memorandum (AM) rescinds AM 94-27, dtd 1 Jun 94.

XXXXXXXXX

MAJ, EN

Deputy Commander

DISTRIBUTION:

A, B, C

1 - EA INDIV 
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P-1

APPENDIX P

SAMPLE - EXPENSE ACCOUNT JUSTIFICATION

REQUIREMENTS

RESOURCE CODE JUSTIFICATION

CASHAWD $ Identify incentive awards plan. If a specific

plan is not applicable, cite Division/Office

policy that supports the funding requirement.

 Technical Division

REGLABOR $ Direct Labor by Man-years charged.

Appropriation

$ Indirect Labor Types of positions

 Civil - and man-years charged

 Military - indirect and why

charging indirect.

 A&A/Facility Offices

$ Direct Labor by Description of work

appropriation - to be performed.

Indirect (Overhead) Man-years and

Labor description of work

 Civil - to be performed.

 Military -

OTLABOR $ Description of work to be performed and the

estimated man-years.

BORLABOR $ Identify from which office, division,

BOROTLABOR branch, etc., and/or which other Corps

district, division, etc., the labor to be

“borrowed” and the estimated man-years.
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P-2

RESOURCE CODE JUSTIFICATION

TRANSPER $ Statement of purposes for which travel is

performed (i.e., training, staff visits,

conferences, etc.) number of occurrences and

cost for each purpose. Excludes PCS 

transportation allowances.

PCSPERBNFT $ Identify any known PCS moves that will be

PCSTRANTHG paid to include temporary quarters, storage,

PCSOTHSVCS movement of household goods, and real estate

PCSTRANPER expenses). Give rationale for estimate of

nonspecific PCS’.

TRANTHNGS $ Identify what things are being transported.

TRAINING $ Identify planned training courses as set out TRNGNOVGOV

in your IDP’s along with justification for need.

SUPMATRL $ Description of supplies, including 

subscriptions which will be 

purchased/consumed during the FY. 

OTHRENTAL $ Description of rental costs for commercial

equipment (e.g., copiers).

OTHCONSVC $ Description of any hired-labor (services from 

the private sector, not another government 

agency) type services that are provided by purchase order (i.e.,

maintenance, repair) and the purpose of the service.

GOVPURCH $ Description of services to be provided by 

other Corps districts or other government agencies

(fee-for-service, CASU, GSA alterations, etc.).

CORPSVEH $ Based on estimated usage of vehicles from the 

PSB. Use $5.00 an hour or $50.00 a day for 

 sedans or vans. Use $3.50 an hour or $35.00 

a day for trucks.
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P-3

RESOURCE CODES JUSTIFICATION

PRINTING $ Use historical data. Justification is required for any 

variance from previous FY actual of more than + or - 5%.

EQUIPMENT $ Description of planned equipment purchases for items

costing $5,000 or more but no more than $25,000 each. 

Do not include ADP and telecommunications 

hardware/software in this category.

COMM $ Justification required for any amount above

IM projection.

VISUALINFO $ Description of work to be required and 

indicate method of calculation. 

CEAP $ Use historical data. (Questions should be

referred to Information Management.)

IT $ ADP distributive costs. Use historical data.

Questions should be referred to IM.

ITSOFTLEAS $ ADP and telecommunications software lease 

costs. Use historical data. (Questions 

should be referred to Information Management.)

ITEQPMAINT $ Contract costs for operation and maintenance of IT

hardware. Justification should indicate the calculation

used to arrive at the budget amount.

ITSUPPLIES $ Description of automation supplies which will

be purchased/consumed during the year.

ITSFTWREXP $ Description of custom off-the-shelf software costing

less than the approved capital threshold for the 

appropriation funding the acquisition.
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RESOURCE CODES JUSTIFICATION

ITEQUIP $ Justification is required for all computers

included on your budget request. Cost of these

purchases are greater than the approved capital

threshold for the appropriation funding the acquisition.

ITSFTWARE $ ADP and telecommunications software costing 

greater than the approved capital threshold for the

appropriation funding the acquisition.

ITEQUIPEXP $ ADP and telecommunications equipment purchases

costing less than the approved capital threshold

for the appropriation funding the acquisition.

ITSFTMAINT $ Contract costs for operating and maintaining 

IT software.
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Q-1

APPENDIX Q

SAMPLE - MILESTONE SCHEDULE

Completion Date Event

25 July Operating Budget Data Call Letter

29 July GSA Rent Estimates to Staff from RM-B

31 July PRIP Estimates to Staff from RM-B

14 August IM Facility Operating Budgets to RM-B

21 August IM Facility Operating Budgets Reviewed

23 August DE Notifies IM of Facility Budget Approval

27 August IM Notifies Staff of Facility Charges

30 August Proposed Budgets and Justifications due in RM-B

10-12 September Review of Remaining Operating Budgets

20 September Operating Budget Presented to Commander (includes

 overhead rates and income statement)

15 February Issue Mid-Year Review Data Call

1 March Execution Data provided through February

20 March Proposed Revisions due back to RM-B

1 April PBAC Review/Recommendations Prepared

10 April Revisions Approved by Commander and Rates Established

10 October Final EOY Review of Budget Execution

Note: The dates above are for example purposes to portray a normal operating budget process from

formulation through mid-year review. Dates may be adjusted to fit specific needs of the organization.
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APPENDIX R

STANDARD RESOURCE CODES

Resource codes are used to report obligations and expenditures. They are classified according to

the initial purpose rather than the end product or service provided. For example, salary and travel

costs paid an engineer traveling to a construction site for an inspection are classified as personnel

compensation and travel expenses rather than expenses for land and structures. Conversely, if an

agency contracts for the construction of a building, the costs are classified in the resource code

for lands and structures rather than in the resource code used to report costs for individual types

of materials and services required to construct the building.

Outlined in the table below are the standard resource codes to be used for recording obligations

and expenditures. To promote both consistency in the use of resource codes and relevancy in the

data reported, users must select one of the “boldface” resource codes to identify the resource

being employed or consumed when creating a purchase request and commitment document.

However, this does not mean that obligations/costs cannot be recorded at more detailed levels.

Managers maintain their flexibility of recording costs at the level of detail they desire by

establishing children resource codes to the parent resource code. For example, if a manager

needs to differentiate the purchase of office supplies from other supplies and materials purchased,

the manager would establish a child resource code such as “OFCSUPLS” to the parent resource

code “SUPMATRL”. Use of standard resource codes will greatly increase the integrity of cost

data recorded and also reduce the number of “standard” resources codes to pick from.

The number to the left of the resource code name indicates the level at which the resource code is

situated in the resource code hierarchy. At the end of each resource code description, the

applicable object classification is shown, e.g., OC 23.3.

RESOURCE CODE SHORT RESOURCE CODE DESCRIPTION

MANPOWER

3. INCENTAWD Not to be used for costing.

4. CASHAWD Payments for cash awards that do not become part of the

Federal employee’s basic rate of pay. OC 11.5

4. TIMEOFFAWD Cash allowance for employee awarded time off. Allowances

for time off awards are not a part of the effective rate

calculation. No G&A or Departmental Overhead are applied.

OC 12.1

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3. LABOR

4. ANNLEAVE

4. BENEFITS

5. PCSPERBNFT

4. BORLABOR

4. BOROTLABOR

4. OTHLEAVE

Not to be used for costing.

This resource code will be updated with cost data on the

basis of the annual leave rate applied to LABOR. Rates must

be sufficient to cover employees’ expense when on annual

leave. OC 11.1 or 11.3

This resource code is updated with cost data on the basis of

the government contribution rate applied to LABOR for the

employer’s share of employee benefits, i.e., retirement, life

and health insurance and allowances for cost of living above

the basic pay rates. Additionally, this resource code is used

to record cash allowances paid directly to employees and

payments to other funds for the benefit of employees. OC

12.1

Recruitment and other expenses related to permanent change

of station (PCS). Includes authorized allowances for

expenses incurred in connection with the sale of a residence

or settlement of unexpired lease, subsistence while occupying

temporary quarters, and miscellaneous moving expenses.

Charges for other PCS expenses are classified under resource

codes PCSTRANPER and PCSTRANTHG. OC 12.1

Regular labor cost data are generated for this resource code

when an employee of one organization is provided funds via

a purchase request and commitment (PR&C) document from

another organization (owner of the funds) to do the work.

BORLABOR will be automatically updated as labor costs are

incurred. OC 11.1 or 11.3

Labor costs data are generated for this resource code when an

employee of one organization is provided funds via a PR&C

document from another organization (owner) to work

overtime. BOROTLABOR will be automatically updated as

overtime labor costs are incurred. OC 11.1 or 11.3

This resource code will be updated with cost data on the

basis of the other leave rate applied to LABOR. Rate must

be sufficient to cover employee’s expense when on sick,

administrative, home or compensatory leave. OC 11.1 or

11.3

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4. OTLABOR

4. REGLABOR

3. MILPERSBEN

3. MILPERSPAY

3. VSIP

PERSPROP

3. EQUIPMENT

4. ITEQUIP

4. ITEQUIPEXP

This resource code is used for personnel compensation above

the basic pay rate for overtime. OC 11.1 or 11.3

This resource code is used for regular salaries and wages paid

to employees and other payments that become a part of the

employees basic pay rate. Excludes amounts for leave and

benefits accounted for in unique resource codes on basis of

the effective rate. OC 11.1 or 11.3

Cash allowances and payments to other funds for military

personnel. For example, allowances for uniform expenses

and reenlistment bonuses. Includes employer’s share of

employee benefits, i.e., retirement, life and health insurance

and cost of living allowances above the basic pay rates. Also

includes subsidies for commuting costs. OC 12.2

Pay of military personnel including amounts above basic

rates; for example, overtime, holiday pay, night work differential, hazardous duty pay, flight pay and extra pay based

upon conditions of the environment (except cost of living

allowances). Also includes basic allowances for subsistence

(BAS) and for quarter (BAQ). OC 11.7

Voluntary separation incentive (VSI) payments to employees

who voluntarily separate from Federal service. OC 13.0

Not to be usedfor costing.

Purchasing property of a durable nature, i.e., transportation

equipment, furniture and fixtures, tools and implements,

instruments and apparatus and machinery. OC 31.0

Purchasing hardware/computers, peripherals, office automation equipment and telecommunications equipment costing

greater than the approved capital threshold for the appropriation funding the acquisition. OC 31.0

Purchasing hardware/computers, peripherals, office automation equipment and telecommunications equipment costing

less than the approved capital threshold for the appropriation

funding the acquisition. OC 31.0

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4. ITSFTWAFCE

4. ITSFTWREXP

3. SUPMATRL

4. ITSUPPLIES

4. WAREHSEINV

REALPROP

3. BUILD&STRC

3. FIXEDEQUIP

3. LAND

SERVICES

3. ADV&ASTSVC

4. ITSFTDEVL

Purchasing custom and off-the-shelf software costing greater

than the approved capital threshold for the appropriation

funding the acquisition. OC 31.0

Purchasing custom and off-the-shelf software costing less

than the approved capital threshold for the appropriation

funding the acquisition. OC 31.0

Purchasing commodities by formal contract or other form

that are normally expended within one year after they are put

into use, i.e., office supplies, publications, fuel, building

materials and parts and cleaning supplies. OC 26.0

Purchasing computers and word processing tapes, discs, and

manuals. Excludes purchase of ADP software. OC 26.0

Purchasing warehouse supplies and materials. Users must

select the locally developed resource code which identifies

the specific type of inventory purchased. OC 26.0

Not to be usedfor costing.

Costs for the acquisition of buildings and structures and

additions thereto, when acquired under contract. OC 32.0

Costs for fixtures and equipment that become permanently

attached to or a part of buildings or structures, such as

elevators, plumbing, power-plant boilers, or fire-alarm

systems when acquired under contract. OC 32.0

Costs of purchasing land and interest in lands, including

easements and rights of way. OC 32.0

Not to be usedfor costing.

Private sector contract costs for advisory and assistance

services. OC 25.1

Private sector contract costs for system software design,

studies, analyses or evaluations. OC 25.1

3. AESVCS Private sector contract costs for architectural and engineering

R-4
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1 May 98

3. AMORT

3. CONSTSVCS

3. CPRO

3. DEFRDCHGS

3. DEPLETION

3. DEPRE

3. FLUX

3. GOVPURCH

4. GOALS

3. INCREMENT

services as defined in the Federal Acquisition Regulations

(FAR) 36-102. Used for recording all AE contractor

earnings. OC 25.2

Use this resource code for recording amortization expense of

intangible assets, i.e., assets leased under a capital lease

agreement and leasehold improvements. This resource code

should only be used when assets are funded by

civil/revolving fund appropriations. OC 25.3

Private sector contract costs for construction services,

commonly referred to as placement. OC 32.0

Costs of central payroll support services. OC 25.3

Deferred cost distributions for Headquarter’s approved

deferred accounts only. OC 25.3

Future resource code to be used when higher headquarters

dictates the Corps of Engineers account for its natural

resources as assets, i.e., standing timber. OC 25.3

Depreciation expense for liquidation of asset acquisition

cost. OC 25.3

Costs of currency fluctuations, i.e., difference between the

budgeted vs actual rate of disbursement. Use this resource

code when a centrally managed currency fluctuation account

does not exist. OC 25.3

Purchases from other Federal agencies or accounts that are

not otherwise classified such as fee-for-service and Division

service costs. Also includes centralized support charges i.e.,

CPOC, Finance and Accounting and military payroll bill

from Baltimore. OC 25.3

Treasury financial management service fee. This is a

CEFMS hard coded resource code. OC 25.3

Plant replacement costs paid incrementally over the life of an

asset to ensure sufficient replacement funds when asset has

outlived its useful life. OC 25.3

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EP 37-1-3

1 May 98

3. INDIRECT

4. AREARESIND

4. DEPTOVERHD

4. FACBURDEN

4. GENOVERHD

3. INSCLMIND

3. INSURANCE

3. INTEREST

3. O&MCONT

3. O&MEQUIP

4. PCSOTHSVCS

4. ITEQPMAINT

4. ITSFTMAINT

3. OTHCONSVC

Not to be used for costing.

Area and resident offices overhead costs. OC 25.3

Departmental overhead costs. OC 25.3

Overhead costs charged to shop and facility accounts. OC

25.3

General and administrative overhead costs. OC 25.3

Payments for claims and indemnities. Payments of claims

and judgments arising from court decisions or abrogation of

contracts. OC 42.0

Insurance increment costs for revolving fund owned assets.

OC 25.3

Interest payments and dividends. OC 43.0

Costs for the operation and maintenance of facilities when

done by contract, including Govenment-Owned-ContractorOperated facilities (GOCOs). OC 25.4

Costs for operation maintenance, repair, and storage of

equipment, when done by contract. OC 25.7

Costs for storage and care of vehicles and storage of

household goods associated with a permanent change of

station (PCS). OC 25.7

Contract costs for operation and maintenance of

information/technology hardware. OC 25.7

Contract costs for operation and maintenance of

information/technology software. OC 25.7

Private sector contract costs not otherwise classified. OC

25.2

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1 May 98

4. INKINDCONT

3. PLANTSVC

4. AIRCRFTSVC

4. DREDGESVC

4. GRPPLTSVC

4. OTHNGSVC

4. GRPVEHSVC

5. COMVEH

 5. CORPSVEH

5. GSAVEH

3. POSTALSVC

3. RNTCOMUTL

4. COMM

Resource code used to record in-kind contributions donated

by a cost share sponsor (memo account). OC 25.2

Not to be used for costing.

Distributive costs for use of Division aircraft. Users must

select the locally developed resource code which identifies

the specific type of aircraft. OC 25.3

Distributive costs for use of dredges. Users must select the

locally developed resource code which identifies the specific

type of dredge. OC 25.3

Distributive costs for group plant services. Users must select

the locally developed resource code which identifies the

specific type of group plant service. OC 25.3

Distributive costs for non-group plant service. Users must

select the locally developed resource code which identifies

the specific type of non-group plant service. OC 25.3

Not to be used for costing.

Commercially leased vehicle costs not used in conjunction

with TDY. OC 25.2

Costs of using Corps owned vehicles. OC 21.0 Note: User

must further select resource code identifying specific type of

vehicle, i.e., CSEDANS.

Costs of using GSA vehicles. OC 21.0 Note: User must

further select resource code identifying specific type of

vehicle, i.e., GSEDANS.

Costs for postage (excluding parcel post and express mail

service for freight) and contractual mail (including express

mail service for letters) or messenger service. OC 23.3

Not to be used for costing.

Communications costs by contract and distributive, i.e.,

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1 May 98

4. RENT

4. SLUC

4. OTHRENTAL

5. ITEQPLEASE

5. ITSOFTLEAS

4. UTILITIES

3. R&D

3. S&A

4. S&A CONS

4. S&A DERP

4. S&A OMA

4. S&A RAPRES

3. SHOP/FACIL

transmission of messages or data, electronic data

transmission, and telephone and teletype services. OC 23.3

Costs for possession and use of space, land, and structures

leased from a non-Federal source. OC 23.2

Rental payments to the General Services Administration

(GSA). OC 23.1

Costs for rental of post office boxes, postage meter machines,

mailing machines, teletype equipment, and other equipment

rentals. OC 23.3

ADP and telecommunications hardware leases. OC 23.3

ADP and telecommunications software leases. OC 23.3

Costs for heat, light, power, water, gas, electricity, and other

utility services. OC 23.3

Costs for research and development contracts. OC 25.5

Not to be used for costing.

Supervision and administration costs charged to projects

based on the approved flat rate for MILCON appropriations.

OC 25.3

Supervision and administration costs charged to projects

based on approved flat rate for DERP appropriations. OC

25.3

Supervision and administration costs charged to projects

based on approved flat rate for OMA appropriations. OC

25.3

Supervision and administration costs charged to projects

based on the approved flat rate for rapid response

appropriations. OC 25.3

Not to be used for costing.

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4. CEAP

4. IT

4. COREDRILL

4. GARAGE

4. LAB

4. LIBRARY

4. OTHFACSVCS

4. PRINTING

4. SHOP

4. SURVEY

4. VISUALINFO

3. TRAINING

3. TRNGNONGOV

3. TRANTHNGS

4. PCSTRANTHG

3. TRAVEL

CEAP distributive costs. OC 25.3.

ADP distributive costs. OC 25.3

Corps drill distributive costs. OC 25.3

Garage operations distributive costs. OC 25.3

Laboratory operations distributive costs. OC 25.3

Distributive costs for library services. OC 25.3

Distributive costs from a revolving fund facility when not

identified by a unique resource code. OC 25.3

Costs for contractual printing and reproduction and the

related composition and binding operations performed by the

Government Printing Office, other agencies or other units of

the same agency, and commercial printers or photographers.

OC 24.0

Distributive costs from shops and yards operations. OC 25.3

Distributive costs from survey operations. OC 25.3

Distributive costs from visual information operations. OC

25.3

Government sponsored training courses, except Huntsville.

For Huntsville training, user must select approved resource

code identifying the course taken. OC 25.3

Non-government training/tuition costs. OC 25.2

Contractual costs for transportation of things, i.e., freight and

express, trucking and other local transportation, and mail

transportation. OC 22.0

Transportation of household goods related to PCS travel. OC

22.0

Not to be used for costing.

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4. PCSTRANPER

4. TRANSPER

3. WKBOTHCOE

3. WKBOTHFED

Transportation expenses incident to permanent change of

station (PCS). OC 21.0

Costs for transportation of Government employees or others,

their per diem allowances while in an authorized travel

status, and other expenses incident to travel that are to be

paid by the Government. OC 21.0

Funds issued to another Corps activity to do the work, i.e.,

brokered work. OC 25.3

Funds issued to another federal, state or local government to

do the work. OC 25.3

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S-1

APPENDIX S

STANDARD COSTING GUIDELINES

Note: This table identifies the location of standard costing regulatory or policy guidance as of the date of

publication.

SUBJECT REFERENCE 

Labor - General ER 37-2-10, Chap 6, para 6-11, Labor

Cost Accounting Procedures.

Labor - Dept Overhead ER 37-2-10, Chap 22, para 22-1.

Labor - Contracting ER 37-2-10, Chap 24, para 24-2l.

Labor - Counsel ER 37-2-10, Chap 24, para 24-2d.

Labor - Engr Interns ER 37-2-10, Chap 22, para 22-2a(7).

Labor - Administrative ER 37-2-10, Chap 24, Revolving Fund

Accounting for General and Administrative Overhead.

Dept Overhead other ER 37-2-10, Chap 22, para 22-2a(5).

than Labor

Program/Project Mgmt ER 37-2-10, para 22-3e.

Area Office Overhead ER 37-2-10, Chap 26, Revolving Fund

Accounting for Area/Resident Office

Overhead.

Centralized Services 1) ER 37-2-10, Chap 24, para 24-2n,

(Payroll, Personnel Centralized Activities and Other 

Finance Center, etc.) Charges.

2) ER 37-2-10, Chap 6, para 6-26,

Centralized Activities by Major

Subordinate Commands (MSC) that

Qualify for Distributive Funding.
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S-2

SUBJECT REFERENCE 

3) ER 37-2-10, Chap 24, para 24-2b.

4) ER 37-2-10, Chap 24, para 24-2e.

5) ER 37-2-10, Chap 16, para 16-5z.

Workman’s Compensation 1) DoD 7000.14-R, Department of Defense Financial Management Regulation, Vol 8, Civilian Pay Policy

and Procedures, Jan 95, Chap 3, para

0312 Continuation of Pay (CoP) for

Federal Employees.

2) CERM-BE, memo dtd 28 Nov 95, 

Subject: Payment of USACE Civilian

Injury and Illness Compensation

Bill Due in FY 96.

Plant Replacement and 1) ER 37-2-10, Chap 15, para 3 (Note:

Improvement Program (PRIP) PRIP is an integral part of asset

accounting which is discussed in

paragraphs 1 through 12).

2) CELD-MS, memo dtd 13 Dec 93,

Subject: Plant Replacement and

Improvement Program (PRIP) Rules

For Excess Personal Property Acquired

from Defense Reutilization and 

Marketing Office (DRMO) or General

Services Agency (GSA)

Plant Operating Accounts ER 37-2-10, Chap 15, para 15-13.

GSA Rent ER 37-2-10, Chap 6, para 6-24, GSA

Space Costs.

Reproduction Services ER 37-2-10, Chap 16, para 16-5n, 

Revolving Fund Accounting for Shop

and Facility Services.

Supervision and Administration 1) ER 37-2-10, Chap 27, Revolving

Fund Accounting for Military Construction Supervision and Administration.
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S-3

SUBJECT REFERENCE 

2) ER 37-345-10, Financial Administration

Accounting & Reporting, Military Activities.

3) CERM-B, memo dtd 5 Dec 96, Subject:

Carryover S&A.

4) CERM-B, Carryover S&A Guidance,

dtd 22 Oct 96.

Civil Funded Military ER 37-2-10, Chap 17, para 17-16,

Officer’s Pay Military Personnel Pay and Allowance.

Awards 1) ER 37-2-10, Chap 24, para 24-3e.

2) ER 37-2-10, Chap 24, para 22-2.

Public Health Service None Available.

Wellness Program

Training 1) ER 37-2-10, Chap 24, para 24-1.

2) ER 37-2-10, Chap 22, para 22-2a(5).

Library ER 37-2-10, Chap 24, para 24-2k(2).

PCS 1) ER 37-2-10, Chap 24, para 24-3e.

2) ER 37-2-10, Chap 22, para 22-2a(5).

VSIPS CERM-F, memo dtd 10 Sep 93,

Subject: Recording Costs for 

Civilian Separation Incentives.

ADP - CEAP, AIS, & ER 37-2-10, Chap 16, para 16-5b.

Site Licenses and para 16-2b.

ADP - System Development ER 37-2-10, Chap 16, para 16-5u(9)(b)

and Enhancements and para 16-5u(13)(b).

ADP - System Maintenance ER 37-2-10, Chap 16, para 16-5u(12)(b).

ADP - Computer Processing ER 37-2-10, Chap 16, para 16-5u(1).

Center (VW50/RF50)
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S-4

SUBJECT REFERENCE 

ADP - LAN Operations ER 37-2-10, Chap 16-5v(2)(b).

Telecommunications ER 37-2-10, Chap 16 para 16-5v(1)(b).

Teleconferencing ER 37-2-10, Chap 16 para 16-5v(3)(b).

`