Attachment 1										3
Budget Redirection and Assessment Changes
In Two Coop Projects
Table 1--Matched Project						Table 2--Unmatched Project
FY 1999						FY 1999
	USGS	Cooperator	Total				USGS	Cooperator	Total
Gross Project Funding	$   100,000	$   100,000	$   200,000			Gross Project Funding	$0	$   100,000	$ 100,000
Headquarters-level Indirect Costs                                 (12.5% x gross funding)	(12,500)	(12,500)	(25,000)			Headquarters-level Indirect Costs                                 (12.5% x gross funding)	0	(12,500)	(12,500)
Subgross 1a--Assessable Income	87,500	87,500	175,000			Subgross 1a--Assessable Income	0	87,500	87,500
District level Indirect Costs--Facilities                                (6% x gross funding or 6.857% x subgross 1a in this example)	(6,000)	(6,000)	(12,000)			District level Indirect Costs--Facilities                                (6% x gross funding or 6.857% x subgross 1a in this example)	0	(6,000)	(6,000)
Subgross 2--Income Available for District Expenditure	81,500	81,500	163,000			Subgross 2--Income Available for District Expenditure	0	81,500	81,500
District-level Indirect Costs--Other                                (29.141% x subgross 2 in this example)	(23,750)	(23,750)	(47,500)			District-level Indirect Costs--Other                                (29.141% x subgross 2 in this example)	0	(23,750)	(23,750)
Net Project Funding	57,750	57,750	115,500			Net Project Funding	0	57,750	57,750
Notes:
1.  District-level Indirect Costs are divided in this example for illustration purposes.  The actual District overhead rate in this example is 34% x subgross 1a (gross funding less Headquarters-level Indirect costs).  This rate is district-specific and will vary among districts.
FY 2000						FY 2000
	USGS	Cooperator	Total				USGS	Cooperator	Total
Gross Project Funding	$   100,000	$   100,000	200,000			Gross Project Funding	$0	$   100,000	100,000
Facilities Costs                                                             (8.841% x gross USGS funding; 6% x gross cooperator funding in this example)	(8,841)	(6,000)	(14,841)			Facilities Costs                                                             (8.841% x gross USGS funding; 6% x gross cooperator funding in this example)	0	(6,000)	(6,000)
Science Support Costs                                               (8.079% x gross USGS funding; 0% of cooperator funding)	(8,079)	0	(8,079)			Science Support Costs                                               (8.079% x gross USGS funding; 0% of cooperator funding)	0	0	0
Subgross 1b--Assessable Income	83,080	94,000	177,080			Subgross 1b--Assessable Income	0	94,000	94,000
Headquarters-level Indirect Costs                                    (11% x subgross 1b)	(9,139)	(10,340)	(19,479)			Headquarters-level Indirect Costs                                    (11% x subgross 1b)	0	(10,340)	(10,340)
Subgross 2--Income Available for District Expenditure	73,941	83,660	157,601			Subgross 2--Income Available for District Expenditure	0	83,660	83,660
District-level Indirect Costs--Other                                    (29.141% x subgross 2 in this example)	(21,547)	(24,379)	(45,927)			District-level Indirect Costs--Other                                    (29.141% x subgross 2 in this example)	0	(24,379)	(24,379)
Net Project Funding	52,394	59,281	111,675			Net Project Funding	0	59,281	59,281
Notes:
1. No inflationary increases are factored into the analysis.
2. The gross project funding on the USGS side for all coop projects will be made up of the federal matching fund line item (83.080% of the augmented total), facilities line item (8.841% of the augmented total), and science support line item (8.079% of the augmented total).
3. The cooperator’s facilities costs will be based on actual costs (set at 6% in this example) and will vary from district to district.
4. The district overhead rate (set at 29.141% of subgross 2 in this example) does not collect the same amount of income for this project as it did in FY 1999.  The rate was held constant to reflect the fact that overhead should rise and fall along with the dollars available for science. The district overhead rate is established based on local costs and will vary from district to district.