Calculating BURN RATES

Report
BURN RATES
ICS FSC Workgroup
WHAT ARE BURN RATES?
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Burn Rates are a measure for how fast EPA is using
up its MA or Oil Spill funding. (i.e. Burn rates
measure dollars used per day and can then be used
to calculate days of funding remaining.)
Important for monitoring status/usage of Mission
Assignments (MA) and Oil Pollution Act (OPA) funds
Ultimately used for Sitrep and IAP (Discussed later)
Standard Disclaimer
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I vanpool with an attorney and he has advised me
to tell you that “this webinar presents one method to
calculate burn rates, this is not the only methodology
for calculating burn rates, burn rates can cause
headaches, upset stomachs and sleeplessness.
Continued use of burn rates can result in serious
medical consequences. Frequent use of burn rates
could result in fully understanding days of funding
remaining and the corresponding implications.”
What are Burn Rates Calculated For?
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The incident
MAs
Contract
Work Assignment by county, parish, activity (i.e.
white goods collection)
Payroll
Travel
Etc.
How do we report Burn Rates?
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TITLE
Region _ Daily Cost Estimates Report-Situation Report
DATE
Authorized
Ceiling
MISSION
ASSIGNMENT
NUMBER 1
EPA Est.
Personnel
Cost
EPA Est.
Travel
Cost
Estimated
Contract/
Purchase
Spent
TOTAL
Estimated
Expenditures
Balance
(Ceiling minus
Expenditures)
Est.
Daily
Burn
Rate
TOTAL
Contract/
Purchase
OBLIG.
UnObligated
Dollars
Remaining
$
21,343,820
$
2,144,244
$
552,224
$
10,714,730
$
13,411,198 $
7,932,622 $
16,394,124
$
213,668 $
$
21,343,820
$
2,144,244
$
552,224
$
10,714,730
$
13,411,198 $
7,932,622 $
16,394,124
$
213,668
2,800,309 $
281,325
$
72,452
$
1,405,773 $
1,759,549 $
1,040,760 $
2,150,909
$
2,425,569
$
624,676
$
2,253,228
Dollars
Obligated
Not Spent
$
5,679,394
MISSION
ASSIGNMENT
NUMBER 1
TOTALFUNDED
Region 6 Indirect Rate
$
13.12%
GRAND TOTAL $
24,144,129
$
12,120,503
$
15,170,747 $
8,973,382 $
18,545,033
$
28,033 $
241,702
Estimated Days Remaining
Days remaining based on authorized direct ceiling minus total payroll, travel, and contracts EXPENDED
Days Remaining based on authorized ceiling minus total payroll, travel, and contract OBLIGATIONS
37.1
10.55
$
$
2,253,228
$
5,679,394
295,623 $
745,136
2,548,851
$
6,424,530
HOW ARE BURN RATES USED?
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important for monitoring status/usage of Mission
Assignments (MA) and Oil Pollution Act (OPA)
funding.
allows you to estimate funding days remaining so
that you or Incident Command can compare
remaining work and remaining funding.
allow lead time to obtain additional funding or MA
completion time if necessary.
What Will We Cover?
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How to obtain burn rates (yes, sometimes they are
given to you)
Where to obtain source data for burn rate
calculations
How to calculate burn rates
How to present burn rate information to command
Why burn rates can be misleading if not given
context
Mission
Assignment
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 Must be Signed
Must have a start date
Must have an end date
Read Language Carefully to
stay within Scope at all times
 Make sure the IC team all
agree on the scope
We can contact FEMA via JFO
to clarify scope if necessary
If we try to bill FEMA for
activities outside the period or
outside our scope we will likely
be denied reimbursement
Let’s start off simple!
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We are three days into an incident we have four MAs
that total $30,000,000
 We have spent $3,000,000
 Calculating the incident burn rate is simple:
$3,000,000 spent/3 days = $1,000,000 spent per day
Wahoo the incident burn rate is done! Time to call it a
day and relax with a cool beverage.
Not so fast, what about that context thing we mentioned
earlier?
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Let’s add some complexity!
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MA 1 $100,000 3 Days Rapid Needs Assessment
MA 2 $900,000 6 days Leaking Tank Containment
MA 3 $2,000,000 30 days White Goods Collection
MA 4 $27,000,000 90 days Hazmat Cleanup, T & D
Oops more data leads to: More questions….
MA 1 $100,000 spent, mission 100% completed
MA 2 $800,000 spent, mission 50% completed
MA 3 $1,000,000 spent, mission 50% completed
MA 4 $1,100,000 spent, mission 2% completed
OK, so where are we and what do we
tell the IC?
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MA 1 Mission 100% completed, on time.
MA 2 Mission 50% completed, 89% funding expended and 3
days remaining
MA 3 Mission 50% completed, 50% funding expended and
27 days remaining
MA 4 Mission 2% completed, 4% funding expended and 87
days remaining
Don’t jump to conclusions, it helps to know the context. This
is why FSCs attend meetings. We may know:
MA 2 had very expensive mobilization costs but very inexpensive
daily costs! Transportation & Disposal expenses for MA 3 were
not included! Could T & D for MA 3 be in the scope of MA 4?
Burn Rate
Excel Worksheet with Formulas
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Where do we get the information?
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Various sources like:
o Contractors (field accountant or contractor PO)
o Other Federal Agencies – IAs (CG PO)
o CDW Reports
o ICS 213 – Resource Requests
o Our own estimates and accruals for Payroll & Travel
Example of Contractor Reported Burn
Rate
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For Contractor Tab in Excel
Example of IA – Cost Report
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CDW or FDW
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Compass Reimbursable Agreement
Detail Inquiry
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Compass Reimbursable Agreement
Detail Inquiry
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This helps to verify your numbers in the Payroll and Travel Tab
ICS 213 RR – Resource Request Form
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As FSCs we all know what ICS 213s look like and
generally get to see several each day during large events.
We need to pay attention, especially when new or
unexpected significant requests come through. Again, a lot
of valuable information comes from the meetings we (FSCs)
attend. I personally make it a habit to talk with OPS after
meetings to clarify any significant $ issues discussed during
the meeting.
Agency Admin. Fee and Indirect Rates
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For some incidents EPA HQ requires that a certain
% of each MA, IA or PFRA is reserved for HQ
expenses. As FSCs it is important for us to account
for this immediately upon receipt of MA.
EPA now develops annual IA indirect rates for each
Region and AAship, again these need to be
accounted for up front.
Please see addendum for examples of CFC email
and CDW report showing indirect and Admin. Fees.
Indirect Cost Rates
(EPA Overhead Rate to perform IA work)
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•HQ OCFO Policy sends out annual
indirect cost rate percentages per
region. Normally, the Superfund
Removal Managers have this rate
information.
•Note: Oil Spills are different rates
not included in this chart.
• Indirect Costs should be Taken OUT
of the MA or FPN Funding
immediately so we do not overspend
Payroll Calculations
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PayrollPayroll
& Travel
Tab in Tab
Excelin Excel
& Travel
Payroll Tracking
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Travel Calculations
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Payroll & Travel Tab in Excel
Burn Rate
Excel Worksheet with Formulas
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ICS Meeting Refresher
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Morning Operations Meeting (OPS) – All Hands
Command and General Staff (C&G) – C & G Staff
Tactics Meeting(observe don’t participate) – Tech Staff
Finance Staff Meeting - (Limited to Section and Host
Region)
Planning (Support the plan for the next op period or not)
- C & G Staff
Chart Example
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Tips & Tricks
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Often during an incident funding is tight (end of FY,
start or end of incident). You can get into a tricky
situation and cause more work for yourself and others if
you allow fully funding all Purchase Orders (POs) for
work assignments on Contracts & IA’s
It is wise to spread the money out by partially funding
all needs and holding a reserve for unexpected
requests.
You may get pressure from contractors and EPA Project
Officers to fully obligate funds for their needs
Burned out on Burn Rates?
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Any Questions?
Contact the Finance Section Chief Training Team:
John Anderson, Region 7, (913)551-7470, [email protected]
John Phillips, Region 7, (913)551-7014, [email protected]
Cindy Brown, Region 6, (214)665-7480, [email protected]
Barbara Lee, Region 9, (415)972-3195, [email protected]
CDW link:
http://ocfosystem1.epa.gov/neis/adw.welcome

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