6509-11f-38.doc - USDA Forest Service

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38.1 - Fleet Equipment Rental Service

38.11 - Financial Estimate

      1. Forest and Stations. Submit the Financial Estimate(s) (budget), form
FS-6500-30, for the ensuing fiscal year to the Regional Office, Fiscal and
Public Safety, by September 1 unless a different date is specified in a
separate communication. Submit only the original. It will be approved and
returned to the originating Unit.

Preparation of the budgets will be accomplished by the Unit Fleet Manager
with assistance from Budget and Finance personnel. When estimating Working
Capital Fund (WCF) expenditure accounts, the Forest should consider the most
recent year's expenditure data, program changes such as mileage reductions or
limitations, added programs or increased (or decreased) programs, changes in
vehicle mix, changes in vehicle rental rates, inflation, and other related
factors. The estimates should be realistic and related to forecasts made on
the Fixed Ownership Rate (FOR) Budget, form 6500-62, where applicable.

The Forest Engineer and the Administrative Officer are to initial the FS-
6500-30's to indicate review and concurrence. Approval of the plan is to be
by the Forest Supervisor or Acting.

All fleet expense accounts (besides 624 and 636) need to be an estimated
average using prior year actual and taking into account inflation, vehicle
mix, program changes, and other related items.

Accounts 617 plus 618 must equal account 429 for budget purposes. Equipment
use income is estimated by multiplying the coming fiscal year's estimated
average mileage for one vehicle by class, times the new rate, times the
number of vehicles in the class. Total all classes for total use income.
Check to see how the new total compares to the latest year's actual use

      To Estimate FOR income. For each class, multiply the new annual FOR by
the anticipated number of vehicles in that class. Total all the classes.
Reduce this total by the budget year's average increased replacement cost
factor. The remaining amount is entered on FS-6500-30. The increased
replacement cost factor for the ensuing fiscal year is made known to the
Units each year.

      Posting Actual Income and Expense to the Financial Estimate. Each
quarter the Unit will post on form FS-6500-30 the actual income and expense
account balances for the fleet activity (TW1). Posting should reflect
balances shown on the quarterly WCF Income Statement furnished by National
Finance Center (NFC). If any of the balances are in error, post the correct
amount and footnote (on separate page if necessary) the amount and cause of
the error. Each Unit will analyze the actual posting by comparing actual
balances to estimates for each account. If the actual balance of the account
differs from the estimate by more than 10 percent of the estimate and the
estimated balance in the account is $4,000 or more, analyze the charges to

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   the account and justify the difference or correct any errors. In either
   case, a written statement should be included to explain the problem.

   An analysis of Accident Repair Expense and Income will be made semiannually.
   Accounts 617, 618, and 429 are listed on the Unit Financial Statement by
   vehicle number and amount. For each expense entry, there should be an income
   entry for the same vehicle in the same amount. All 429 amounts are income
   from third parties or other projects to cover accident repair expenses
   charged to 617 and/or 618. If you find you are short in income, an AD-742,
   Transfer and Adjustment Voucher, may be needed to collect the remaining
   dollars needed to cover the expense. If there is income listed for a certain
   vehicle and no expense appears to match, check your September prior year Unit
   Financial Statement for the expense. Sometimes an accident is repaired and
   charged out near the end of one fiscal year and recovery of income does not
   occur until the following fiscal year. In this case, the income amount would
   be a reconciling item and excluded from the analysis since its matching
   expense falls in a prior year. All unmatched prior year expenses in 617 and
   618 must be recovered in a current or future year; this is an ongoing
   reconciliation. Do not ignore unmatched prior year expenses simply because
   the fiscal year has changed.

   All impact damage, abuse, misuse, vandalism, and theft is to be backcharged
   to project or a third party. This prevents use rates from increasing due to
   accident damage and, in the long run, tends to spread the cost fairly over
   the Region.

*- When posting FOR Income from the WCF Income Statement, pick up only account
   412. Account 411 is held in reserve for future use to cover inflation of
   vehicle prices and is not posted to the budget.

   Accounts 453, Sale of Fleet Equipment, and 653 Book Value of Fleet Equipment
   Disposed of, are not to be posted to form FS-6500-30. These accounts show
   proceeds received from sale and book value written off, respectively, and are
   difficult to estimate for budget purposes.                                  -*

   The above-described posting and analysis _s to be done semiannually for the
   fleet activity. However, only the second quarter report is required to be
   submitted to Fiscal and Public Safety, WCF, by May 15. Attach any worksheets,
   explanations of errors, reconciliations, and other pertinent items as part of
   your analysis to help the WCF Financial Manager in the review of your posted
   budgets. Including this information can help reduce telephone calls and/or
   correspondence to the Units.

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      Financing Additions. Fleet equipment procured locally by a Unit from
program funds will be donated to the Working Capital Fund and capitalized as
of date of delivery to the Unit. The Regional Office, Fiscal and Public
Safety, will donate fleet additions procured through the Regional Office. Do
not delay capitalization for the purpose of including initial service or
other costs to be capitalized at a later date. Units will use the following
entries to donate fleet equipment (and attachments thereto) purchased locally
(through Forest contracting) from program funds:

                        Dr. account 11-155 (M/C 99xxxx)
                        Cr. account 11-351 (M/C 901351)

Use your own Unit number on the adjustment voucher, form AD-742. All
donations require that an equipment master be established by the time the
above adjustment is processed and updated to the Equipment Management
Information System (EMIS) at the end of each month. Units will retain
documents supporting all donations to WCF (purchase orders, invoices, job
orders, and so forth). The total capitalized value of a vehicle should be
identifiable as far as what costs it consists of and what items each cost

The Regional Office, Fiscal and Public Safety, will donate items purchased
through RO Contracting personnel. Units are responsible for donating items
purchased through the Forest Contracting section.

Costs for initial service and approved modifications, which are done in
connection with the initial delivery, will also be paid from Unit program
funds and capitalized. Use the above entries to accomplish this.

      Criteria for Multi-appropriation and Fund Financing. The costs of
fleet additions are distributed to appropriations in balance with program use
of WCF fleet equipment. The appropriations listed in Exhibit 1 of the parent
text are not all inclusive. There may also be appropriations listed in
Exhibit 1 that should not be included in the Forest's formula if their share
of the total equipment rental expense is very small. Include all
appropriations that make up 5 percent or more of your total equipment rental
expense (both FOR and equipment use) in determining appropriation
responsibility for fleet additions. Responsible appropriations are then
split out to responsible functional codes. The Fighting Forest Fires (FFF)
appropriation must be included in the Forest formula under the FFF

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                         R-6 SUPPLEMENT 6509.llf-94-2
                               EFFECTIVE 2/18/94

                      CHAPTER 30 - EQUIPMENT RENTAL SERVICE


38.2 - Aircraft Operations.

      1. Preparing Financial Estimates. Instructions and responsibility for
preparation of aircraft operation estimates are contained in the parent text.
The input from Aviation and Fire Management (AFM) should be submitted to the
Regional Working Capital Fund (WCF) Financial Manager, Financial Management,
no later than September 1 annually. The financial estimate for the ensuing
fiscal year shall be prepared by the Regional WCF Financial Manager no later
than September 15, unless a different date is agreed upon between the two

Once the estimates are approved by both Directors, the WCF Financial Manager
should return an approved copy to AFM.

      2. Preparing Daily Flight Report--Invoice. The "start time" and "stop
time" should not be recorded on FS-6500-122 to the nearest minute. Time
should not be rounded to the nearest 5 or 6 minutes. Minutes shall be
converted to tenths of an hour on FS-6500-122 based on the following
conversion table:

            # Minutes ---------- Converted to ------------ Tenths

              01-06                                            .1
              07-12                                            .2
              13-18                                            .3
              14-24                                            .4
              25-30                                            .5
              31-36                                            .6
              37-42                                            .7
              43-48                                            .8
              49-54                                            .9
              55-60                                           1.0

Refer to FSM 5717.2 and the Aircraft Use Reporting System (ACUSE) User's
Manual for instructions on processing FS-6500-122.

                             *- FSH 9/89 R-6 SUPP 19 -*
                        R-6 SUPPLEMENT 6509.llf-94-2
                              EFFECTIVE 2/18/94

              CHAPTER 30 - EQUIPMENT RENTAL SERVICE (Continued)

38.22 - Rental Rate Development.   Following are WCF aircraft rates for FY 1994:

                                    WCF AIRCRAFT RATES

             USE                                               FOR

    Aero Commander        (171Z)         $223/hour       $1,590/month   $53/day

    Beech Baron           (162Z)
                          (166Z)         $223/hour       $2,636/month   $88/day

These rates are subject to revision throughout the current year.

38.23a - Pilot's Salary. Charge WCF for pre-flight and post-flight duties
not to exceed one-half hour in either case. Layover time charged to WCF must
not exceed 2 hours at any one location. Pilot overtime and regular time in
excess of these limits is chargeable to program funds.

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