United States Department of Agriculture

Agricultural Marketing Service

Federal Grain Inspection Service

Directive 9290.17 May 1, 2013

Distribution: FGIS, OSP, Industry Originating Office: MBS

The U.S. Department of Agriculture (USDA) prohibits discrimination in its programs on the basis of race, color, 

national origin, sex, religion, age, disability, political beliefs, and marital or familial status. (Not all prohibited 

bases apply to all programs.) Persons with disabilities who require alternate means for communication of program 

information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at (202) 720-2600 (voice and 

TDD).

To file a complaint, write to the USDA, Office of Civil Rights, Room 326-W, 1400 Independence Avenue, SW, 

Washington, DC 20250-9410, or call (202) 720-5964 (voice and TDD). USDA is an equal employment opportunity 

employer.

FEE-SUPPORTED PROGRAMS – USER-FEE ANALYSIS AND

FUNDING FOR SLOW PERIODS AND TERMINATED PROGRAMS

Contents

FEE-SUPPORTED PROGRAMS – USER-FEE ANALYSIS AND ����������������������������������������������������������������������������������������������������������������������������������������������������������� 1

FUNDING FOR SLOW PERIODS AND TERMINATED PROGRAMS ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 1

1. PURPOSE����������������������������������������������������������������������������������������������������������������������������

2. REPLACEMENT HIGHLIGHTS��������������������������������������������������������������������������������������������

3. POLICY ��������������������������������������������������������������������������������������������������������������������������������

4. AUTHORITIES ���������������������������������������������������������������������������������������������������������������������

5. DEFINITIONS�����������������������������������������������������������������������������������������������������������������������

6. APPROVAL OF RATE PROPOSALS�����������������������������������������������������������������������������������

6. PREPARATION OF FEE ANALYSIS������������������������������������������������������������������������������������

7. SUBMISSION OF FEE ANALYSES �������������������������������������������������������������������������������������

8. LEVEL OF UNOBLIGATED BALANCES������������������������������������������������������������������������������

9. FUNDING LIABILITIES FOR TERMINATED PROGRAMS��������������������������������������������������

10. INQUIRIES�������������������������������������������������������������������������������������������������������������������������
FGIS Directive 9290.17 May 1, 2013

Page 2

1. PURPOSE

This Directive:

a. States the policy, gives responsibility, and provides guidelines for preparing proposal

to establish or adjust fees,

b. Sets forth requirements for funding liabilities of terminated fee-supported program

The Grain Inspection, Packers and Stockyards Administration’s (GIPSA) 

fee-supported programs are:

GP00520000000000: Grain Inspection and Weighing

GP00530000000000: Official Agencies

GP00570000000000: Rice Inspection

GP00580000000000: Commodity Inspection

And –

c. Sets forth responsibilities and requirements for conducting reviews of fee

2. REPLACEMENT HIGHLIGHTS

This directive replaces FGIS Directive 9290.17, “Fee-Supported Programs – User-Fe

Charges and Funding for Shutdown Expenses” dated August 10, 1999

3. POLICY

GIPSA’s policy that each user-funded activity recovers the costs of providing services,

and that each program maintains a reasonable reserve to finance accrued liabilities. It is

also GIPSA policy that annual fee analyses are prepared so that fee adjustments can be

implemented either to coincide with annual pay raises, crop years, or program changes

impacting on the cost of services

4. AUTHORITIES

a. The majority of GIPSA’s funding comes from user fees. Fees are established f

each separate program to offset the cost of providing the service. The laws and

regulations authorizing user-funded programs, requiring a review of fees, and 

guidance are:

(1) The United States Grain Standards Act,

(2) The Agricultural Marketing Act of 1946,

(3) The Chief Financial Officers Act of 1990,

(4) Office of Management and Budget (OMB) Circular A-25, User Charges,
FGIS Directive 9290.17 May 1, 2013

Page 3

(5) Statement of Federal Financial Accounting Standards (SSFAS) Number 4, 

Managerial Cost Accounting Standards and Concepts, and

(6) Statement of Federal Financial Accounting Standards (SSFAS) Number 7, 

Accounting for Revenue and other Financial Sources and Concepts for 

Reconciling Budgetary and Financial Accounting

b. These acts require that the cost of providing service be recovered through

userfees and, at a minimum, that a biennial review of fees be conducted. Such

costs include all Agency direct and indirect costs of providing service, including 

salaries and other personnel costs (retirement, insurance, and leave), such as 

travel, rent, postage, maintenance and depreciation of equipment, supplies, and 

a proportionate share of Agency management and supervisory costs. The cost

of providing service also includes accrued liabilities, such as severance pay, 

unemployment compensation, and unused leave costs

5. DEFINITIONS

a. Accrued liabilities are expenses incurred that must be paid at some time in th

future

b. Fee analysis is a comparison of the actual and projected revenues with actual and

projected costs of performing fee services. In addition, the analysis includes actual

and estimated workload data whether in hours, units, or both and the relationship 

of workload with revenue. The analysis is based on at least 1 full year of actual

data with projections extending through 2 future years. The data are correlated

in such a manner as to provide management with options for several fees and 

workload levels in order to determine an appropriate fee to recover the cost of 

providing the service

c. Object class is a budget classification identifying the nature of goods or services

purchased

d. Shutdown expenses are all costs and accrued liabilities that must be paid if 

program terminates

e. Unobligated balances are funds that have not been committed or expende

f. User Fees represent assessments that are charged to recipients of a servic
FGIS Directive 9290.17 May 1, 2013

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6. APPROVAL OF RATE PROPOSALS

The Administrator will approve all rate proposals (both new and revised). The Deput

Administrator of GIPSA’s Federal Grain Inspection Service (FGIS) will review requests

for new or revised fees prior to submission to the Administrator

a. New and/or Adjusted Fees

The Deputy Administrator, FGIS shall:

Include an explanation of each proposal for establishing new rates or revisions of

existing rates together with other information as outlined below:

(1) Explanation. Briefly describe the need for the fee or revision of the existing 

fee and include, as applicable, the following:

(a) Legal authorization for new services,

(b) Clients or users of the service,

(c) Duration of the program,

(d) Volume and income anticipated, and

(e) Financing requirements, including any cost and income sharing with a 

cooperator or other unit

(2) Compute costs for services or activities to cover the direct and indirect costs 

to GIPSA for carrying out the activity (costs for fees and charges should be 

determined or established from available records maintained on expenses, 

income, and workload within GIPSA)

(3) Recommend appropriate fees and charges for authorized services at rates 

that will recover, as nearly as practicable, the costs of such services

b. Fee Analysis

The Deputy Administrator, FGIS shall:

(1) Review activities and applicable costs; and prepare annual fee analyses to 

determine the adequacy of such fees and charges for GIPSA user-financed 

programs. These analyses should include the adequacy of fees for the current

year and the subsequent year, considering estimated costs increases and 

fluctuations in workload.

(2) Determine current and 1 subsequent year’s costs for services or activities to 

cover the direct and indirect costs to GIPSA for carrying out the activity,
FGIS Directive 9290.17 May 1, 2013

Page 5

(3) Decide the appropriate time to initiate a fee analysis,

(4) Recommend to the Administrator the appropriate fees to be charged,

(5) Propose appropriate fees and charges for authorized services at rates that

will recover, as nearly as practicable, the costs of such services, and maintain 

a reasonable reserve,

(6) Maintain an unobligated balance level equivalent to at least 3 months’ 

operating expenses, and

(7) Submit proposals to Management and Budget Services (MBS) for review and 

clearance of budgetary and financial requirements.

c. The Director, MBS shall

(1) Provide consultation and assistance to FGIS in developing methods to be

used for identifying costs and determining adequacy of rates

(2) Review current and proposed rates for effect on budgetary and financial 

operations in accordance with laws and regulations covering fees and 

charges

(3) Determine for inclusion in the rates the proportionate share of applicable 

expenses for services performed outside FGIS

(4) Prepare reports on user charges, as required by the Department, from fiscal 

and budget records and other data furnished by the respective program under 

this and other GIPSA directives

(5) Ensure that the biennial review of fees is conducted by MBS in coordination 

with the AMS/GIPSA Financial Systems and Reporting Branch (AGFSRB)

6. PREPARATION OF FEE ANALYSIS

a. Frequency of Analysis: The review of fees shall, at a minimum, be conducted

on an annual basis. These analyses and supporting data must be kept on file for 3 

years

b. Contents of Analysis: The fee analysis should be a comprehensive review of

all revenue and expense components. The analysis should include

(1) Current and projected workload indicators such as revenue-producing hours, 

metric tons inspected, or other applicable indicators,

(2) Object class data that details existing and anticipated costs for providing 

the service,
FGIS Directive 9290.17 May 1, 2013

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(3) At least a 2-year projection of the financial position of the program using 

several alternative fees, and

(4) An analysis, which details the impact on revenue and obligations resulting 

from varying workload data

7. SUBMISSION OF FEE ANALYSES

The Deputy Administrator, FGIS must follow the procedures prescribed below to secure 

approval for a fee change

a. Send a decision memorandum to the Administrator justifying the need for a fee chang

b. After receiving approval from the Administrator, prepare all documentation required

as part of the public rule-making process and submit to MBS for review and 

initiation of the rulemaking process in accordance with Departmental Regulation 

1512-1, Regulatory Decision Making Requirements, dated March 14, 1997

c. `Incorporate final rule information into division issuances.

8. LEVEL OF UNOBLIGATED BALANCES

a. The Agency has determined that each fee-supported program should maintain a

unobligated balance of at least 3 months of operating expenses.* This unobligated

balance is needed to cover accrued liabilities should the program terminate. The

Administrator may waive or modify this requirement if an applicant agrees to 

assume responsibility for shutdown costs and maintains sufficient funds in escrow, 

bonds, taxing authorities, or other means satisfactory to the Agency

b. Fee-supported programs not having sufficient unobligated balances to cover 3 month

of operating expenses should plan to gradually increase user fees over a period of 

time to reach this level

*NOTE: Depending on circumstances, more than 3 months may be necessary

9. FUNDING LIABILITIES FOR TERMINATED PROGRAMS

a. The Administrator will request an emergency appropriation to fund unobligate

balances of terminated programs

b. Unobligated balances from other fee-supported programs funded by the same

treasury fund will be utilized to cover shutdown expenses should sufficient funds 

be unavailable in the terminated program. MBS will track and record the transfer of

funds between user-fee programs. Records of the transfer must be kept on file for 

3 years
FGIS Directive 9290.17 May 1, 2013

Page 7

10. INQUIRIES

Please direct all general inquiries about the agency’s budget and biennial fee reviews to

the Director, MBS at (202) 720-0231

All questions about fee analyses should be directed to the Deputy Administrator, FGIS, 

at (202) 720-9170

/s/ Larry Mitchell

Larry Mitchell

Administrator