introduction to financial management

INTRODUCTION TO FINANCIAL

MANAGEMENT

COURSE OBJECTIVES

1 Understand the overall budget cycle

2 Recognize the systems/tools needed for Park program management & their application in the budget cycle

3 Recognize that accountability is an important element of the budget process in fulfilling the mission of the NPS and a park’s enabling legislation

4 Develop a well-written funding request

5 Understand the value of an interdisciplinary approach to the park program management process

BUDGET CYCLE

1 List the 10 steps of the budget cycle

2 Articulate the role each player has in each step of the concurrent budget cycle

3 Identify at least 3 of the appropriation categories in the NPS budget structure

SESSION OBJECTIVES

NEED GRAPHIC

BUDGET CYCLE

PARK• Superintendent• Division Chiefs

REGIONAL OFFICE• Regional Director• Associate Regional Directors• Budget Officer

WASO• Director• Deputy Director• Associate Director• Comptroller• Budget Officer

INTERIOR• Secretary of the Interior• Assistant Secretary Fish,

Wildlife & Parks,• Assistant Secretary Policy,

Budget & Admin• DOI Budget Officer

Office of Management & Budget (OMB)• OMB Examiner

CONGRESS• House Sub-Committee Chair• Majority Staff Director• Senate Sub-Committee Chair• Majority Clerk

KEY PLAYERS

TABLE TASK:

As a team, match the correct responsibilities in the right hand column to the office with that responsibility

TABLE ACTIVITY

Sub-ActivityActivityAppropriation

Operation of NPS

Park Management

Resource Stewardship

Visitor Services

Maintenance & Ops

Park Support

External Administrative

Costs

BUDGET STRUCTURE

Sub-ActivityActivityAppropriation

Construction

Line Item Construction

Gross Construction

Estimates

Net

+8% for Project

Supervision

+ 10% for contingenciesPlanning

General Management

Plans

BUDGET STRUCTURE

Check off the appropriations used by your park

What appropriation is most often used?

INDIVIDUAL ACTIVITY

1 List the 10 steps of the budget cycle

2 Articulate the role each player has in each step of the concurrent budget cycle

3 Identify at least 3 of the appropriation categories in the NPS budget structure

SESSION OBJECTIVES

End of Session

BUDGET CYCLE

IDENTIFYING THE NEED

1 Identify the systems/tools used to support estimating a budget

2 List 3 sources of cost estimates

3 Identify an example of a facility project and a non-facility project need

4 Using GREA planning docs: Identify and justify when a need is project or base funded and which tool to use for each funding needUsing GREA planning docs: Articulate when a project request also needs to generate a base request & vice versa

SESSION OBJECTIVES

Operational Base Funds

Project Funds

2 TYPES OF FUNDING NEEDS

NPS Scorecard Budget Cost Projection (BCP)

Mission Critical Needs Analysis

Park Asset Management

Planning (PAMP)

Government Performance &

Results Act (GPRA)

TOOLS TO HELP IDENTIFY PROGRAM NEEDS

GPRA GOALS

DOI Level

WASO Level

Regional Level

Park Level

Preserve Park Resources

Provide for Public Use & Enjoyment

WASO GoalsEnsure

Organizational Effectiveness

GPRA CATEGORIES

Ensures daily actions and expenditures of resources are guided by long AND short term goal setting

Ensures focus on accomplishing primary mission

Congress is looking at how federal agencies are spending the money appropriated to them to reach short and long term goals

Aligns Park Strategic Plans with short and long term goals

WHY IS PERFORMANCE MANAGEMENT IMPORTANT?

Strategic Plan• No less than 5 years• Review every 3

yearsAnnual

Performance Plan

Annual Performance

Review

HOW WE MONITOR PERFORMANCE

NPS Scorecard Budget Cost Projection (BCP)

Mission Critical Needs Analysis

Park Asset Management

Planning (PAMP)

Government Performance &

Results Act (GPRA)

REVIEW OF TOOLS

Which tool is available in AFS3 to project cost for up to 5 years?

Which tool helps determine level of maintenance/service for each built asset?

Which tool includes annual performance plans and annual performance reports?

BASE OPERATIONS

IDENITFYING THE NEED

In order to request funds you must first estimate costs

Type of funds you are requesting determine what tools you use to estimate costs

ESTIMATING COSTS

Information Needed

Category

Type of Funding Base Operation

s

Personnel

Salary Grade Work Schedule

Non-Personnel

?

ESTIMATING - BASE OPERATIONS

LOOK AT:Personnel services

Wage Board Permanent Temporary/SeasonalGeneral Schedule Permanent Temporary/Seasonal

ALSO CONSIDER:Geographic locality

payCOLA Non-Personnel costs

Use historical data Compare to similar size

park or OFS

WHEN ESTIMATING OPERATIONAL BASE INCREASE

Already gathered information on park staff, materials & equipment

ReviewPersonnel ListsEquipment & Supply ListsPay Period CalendarSalary Table

ESTIMATING COSTS

Can also calculate hourly, daily, per pay period cost from the annual cost. GS-09/01, FERS employee

$36,590/annum x 1.45 = $53,055.50 annual cost

$53,055.50 ÷ 2087 hours = $25.42 hourly cost

$25.42 x 8 hours = $203.35 daily cost

$25.42 x 80 hours = $2,033.60 per pay period

CLASS EXAMPLE

List moveable equipment by size & type

Estimate hours of use

Compute cost using mileage rate

ESTIMATING COST OF EQUIPMENT

BEST PRACTICES:Contracts should always

be listed as separate items

Routine supplies, which amount to a total of less than $100, may be listed as miscellaneous

Single items or multi-units costing more than $50 should be identified.

ESTIMTATING MATERIALS, ETC.

Org. Code

Project Code PWE Account

Number

ACCOUNT NUMBERS

A.k.a. primary work elements

Covers 3 different types of information Function: Who - Division Fund Source: Where the money comes from Cost Element: What funds are spent on

Which Program Work Element to use?

The Budget Object Class code completes the accounting data tracking information for a charge

PROGRAM WORK ELEMENT- PWE

Org. Code

Project

Code

PWE

BOC

Completed

Account

Number

BUDGET OBJECT CODE COMPLETES EXPENDITURE TRACKING

End of Session

IDENTIFYING THE NEED

BASE OPERATIONS

REQUESTING THE FUNDING

12

Understand when you use OFS or PMISUsing the OFS/TIP Sheet, develop a well written base operation increase request

SESSION OBJECTIVES

Operations Formulation System

(OFS)

Project Management

Information System (PMIS)

SYSTEMS FOR REQUESTING FUNDS

Click icon to add picture

BUDGET CYCLE

As part of a budget request

– by NPS

Across the board percentage adjustment

Specific increase from OFS

As part of a budget request – by Congress

6 COMMON METHODS OF INCREASING A PARK’S BASE

Used to request funding increase for base operations

Amounts in OFS may be different when that year’s budget is appropriated because Congress can change the amount requested and justified in

the Green Book The President can approve the changed amount

If the figure is different, it will most likely will be less than the amount requested

OFS

HELPFUL TIPS: Talk in terms of the operations in the park Search database for similar requests and get examples of

saying what you need to say Make sure to highlight the unique nature/national treasure

aspects of your park

STATING YOUR OPERATIONAL NEED

State the operational need

Indicate why the operational need exists

Explain how funding will be used

Quantify outputs allowed by funding

Project resulting outcomes

THE BIG 5

PROJECT MONEY

REQUESTING THE FUNDS

FACILITY: Individual building,

structure, or other constructed real property

Facility project: improves the facility whether historic or non-historic

For Example: New roofs Fishing Docks Trail Bridges Removing lead paint

NON-FACILITY:Everything not defined

as a facilityFor example:

Archaeological surveys Ethnographic studies Equipment replacement

FACILITY VS. NON-FACILITY

Software system NPS uses to identify projects and project dollars Facility & Non-facility

Non-facility projects are entered directly into PMIS

Facility projects are entered into FMSS and fed into PMIS through a linking tool FMSS: Facility Management Software System The linking tool is referred to as the “project bridge” and is

created by the Project Scoping Tool (PST)

PMIS

PROJECT SCOPING TOOL

FMSS

Park uses PST Browser to search work orders in FMSS. Search criteria help define

projects.

PST“The Bridge”

PST generates initial project cost estimate.

PST automatically

calculates Total Project Score.

PMIS

Park user selects work orders to bundle as potential projects in

the PST.

Park user imports project into PMIS for regional review.

End of Session

REQUESTING THE FUNDS

Using PMIS

WRITING PROJECT REQUESTS

1 Develop a well written funding request: title, description, justification and quantifiable measurable results

SESSION OBJECTIVES

PMIS PROCESS

Writing titles, descriptions, justifications

and measurable

results

Responding to banding

questions

Prioritizing the approved park

approved projects

Selecting eligible funding

categories

“Replace 4 Leaking Pit Toilets with 3 New Accessible Vault Toilets at Pinnacles Campground”

“Rehabilitate Kau Desert Trailhead Kiosk and Construct 5 New Exhibits”

“Reconstruct Yosemite Falls Trail”

“Stabilize 2 Dilapidated Historic Structures at Barker Ranch”

“Relocate and Rebuild Unsafe Visitor Boat Docks at Horseshoe Bay Marina”

“Re-establish California Condors at Pinnacles National Monument”

GOOD PROJECT TITLES

CONCISELY STATE:

The problem to be solved

The benefits to be gained

What will happen if not carried out

GOOD JUSTIFICATIONS

Projects are scored by PMIS and given 1 of 3 rankings HIGH MEDIUM LOW

Identifies relative priority of projects

Only those projects that have an assigned numerical park rank and have one or more submitted components will be considered for funding

PROJECT BANDING

PMIS PROCESS

Writing titles, descriptions, justifications

and measurable results

Responding to banding questions

Prioritizing the approved

park approved projects

Selecting eligible funding

categories

End of Session

WRITING PROJECT REQUESTS

Funding Sources

WRITING PROJECT REQUESTS

1-year 2-year

Multi-year No-year

4 TYPES OF FUNDING

Operations Increase

Project (Facility) Project (non-facility)

Database Used OFS FMSS, PST, PMIS PMIS

Cost Estimating Needed

CEW or form of choice or estimates may be generated by Park Managers or by an outside entity (e.g. contractor)

Cost information must be documented in the FMSS work order. Work orders are bundled and then transferred to PMIS via PST

Form of choice or estimate from Park Manager or an outside entity

Narrative Needed

TIPS Page Description, Justification, Measurable Results, Criteria (if required)

Description, Justification, Measurable Results, Criteria (if required)

Funding Sources ONPS Cyclic Maintenance, Environmental Management Program, Line Item Construction, Repair Rehab, Wildland Fire, etc.

Visitor Services Projects, Concessions Franchise Fee, Youth Conservation Corps, etc.

COMPARING FUNDING REQUESTS

End of Session

WRITING PROJECT REQUESTS

REVIEW COURSE OBJECTIVES

1

2 Recognize the systems/tools needed for Park program management & their application in the budget cycle

3 Develop a well-written funding request

End of presentation

Thank you for your participation

WRITING PROJECT REQUESTS