Assessment Practices and Rates for Fiscal Year 2001

In Reply Refer To: 
Branch of Administrative Services 
Mail Stop 442 
Sunset Date: November 2005 

                                                                        
December 4, 2000 


WATER RESOURCES DISCIPLINE POLICY MEMORANDUM NO. 2001.01 

Subject:  Assessment Practices and Rates for Fiscal Year 2001 

The U.S. Geological Survey (USGS) will implement a series of new organizational structures 
and financial practices in fiscal year (FY) 2001 to work towards a more integrated bureau.  A 
new business model for funding indirect costs will be adopted with the goal of Common Business 
Practices and a narrow range of assessment rates to be achieved by the 
beginning of FY 2004.   

To work in the direction of narrowing our rates, the Water Resources Discipline (WRD) has 
established a maximum assessment aggregate rate of 40.5 percent for FY 2001.  This rate results 
from the combination of a 10.5 percent division rate and a maximum cost center assessment rate 
of 30 percent.  The cost center assessment rate is defined as gross funding minus facilities minus 
WOTSC.  The computational steps have not changed from those used in FY 2000. 

Computational steps to determine net funds are as follows: 

1.   Facilities and Science Support funds are subtracted from gross funds, as appropriate; 
2.   Division assessment of 10.5 percent is subtracted from the funds remaining after the 
facilities and science support funds have been removed; and 
3.   Cost center assessment is subtracted from the remaining funds, resulting in an estimate of 
net funds available for project-specific work. 

FACILITIES AND SCIENCE SUPPORT COSTS 

Facilities costs will include all categories in the Bureau Operating Plan.  See attachment 1 for 
specifics. 

Facilities costs for selected support units will continue to be funded through division 
assessments.  These units are the Branch of Quality Systems (BQS), three regional offices, 
National Water Quality Laboratory (NWQL), Hydrologic Instrumentation Facility (HIF), Office 
of Surface Water-South, and the Cartographic and Publications Program (CAPP).  Facilities 

costs for other WRD organizational units, including district offices, will be funded through a 
combination of USGS appropriations and reimbursable funding. 

Science Support refers to all bureau-level and a small portion of division-level indirect costs.  
These costs are funded in total by a bureau-level line item.  There are no cost center costs 
included in the Science Support line item at this time. 

Facilities Assessment on Reimbursable Funding 

The reimbursable customer's share of facilities costs is at a rate that is cost center-specific.   
A cost center's facilities assessment rate on reimbursable funding will be equal to its estimated 
FY 2001 facilities costs divided by its FY 2000 final gross funding.  Attachment 2 exhibits the 
FY 2001 reimbursable rates per cost center.  A final facilities table will be provided inclusive of 
funding and costs used to calculate the FY 2001 reimbursable rate. 

Facilities and Science Support Assessments on Augmented Coop Program 
Federal Matching and Department of the Interior Cost Share Funds 

WRD will continue the business practices begun in FY 2000 of matching portions of the 
Facilities and Science Support line items in the Federal-State Cooperative Water and Department 
of the Interior (DOI) Cost-Share Programs with cooperator offerings.   

DIVISION ASSESSMENT RATE 

The division assessment rate for FY 2001 will be 10.5 percent of all gross assessable funds.  
Non-assessable funds include those allocated to the Water Resources Research Institutes 
(WRRI); bureau-level facilities and science support funds received by WRD including facilities 
and science support matching funds associated with the Coop Program; reimbursable funds used 
for facilities costs; Technical Support funding; funds withdrawn from investment working capital 
funds; and direct services in the Coop Program. 

COST CENTER ASSESSMENT RATES 

Cost center assessment rates will be accounted for by using the same methodology used in 
FY 2000.  The cost items that may be included in assessments are listed in Attachment 3.  This 
list is taken directly from the memorandum dated October 30, 2000, subject:  "FY 2001 
Allocation to Projects and Cost Center Accounts and Establishing Initial Common Business 
Practices," from the Chief Financial Officer.  The impact to how Water Resources cost centers 
account for indirect costs is unchanged because the policy presented in the Chief Financial 
Officers memorandum is in line with past WRD assessment policies.  The Water Resources 
policy on special rates, as described in WRD Memorandum No. 98.30, remains in effect. 

All agreements for work in FY 2001, both existing and new, will need to reflect the new 
assessment rates and facilities costs.   


                                     (signed) 

                                     Robert M. Hirsch 
                                     Associate Director for Water 

This memorandum supersedes WRD Memorandum No. 2000.05, dated December 8, 1999, 
(historical). 

3 Attachments 
  
Distribution:  A, B, DC, AO 







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* Robert M. Hirsch   
* Associate Director for Water     
* 409 National Center                  rhirsch@usgs.gov
* U.S. Geological Survey                    703-648-5215
* Reston, VA 20192                         fax 703-648-7031
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