Upload
mervyn-eaton
View
217
Download
4
Tags:
Embed Size (px)
Citation preview
© Grant Thornton LLP. All rights reserved.
Surviving the Sequester Owen Barwell
Doug CriscitelloRobert Shea
Thad Juszczak
March 7, 2013
© Grant Thornton LLP. All rights reserved.
Surviving the Sequester
Agencies will need to extensively manage their funding and spending under the sequester this year (not to mention the next eight years).
Based on our knowledge and experience you should be focusing on the following areas:
Inventory currently available fundingInventory planned spendingTake immediate action Medium and longer range items
© Grant Thornton LLP. All rights reserved.
Surviving the Sequester
Inventory Currently
Available Funds
© Grant Thornton LLP. All rights reserved.
Currently Available Funds
FY 2013 Continuing Resolution (CR) funding
less end of February commitments and
obligations
© Grant Thornton LLP. All rights reserved.
Currently Available Funds
Prior year available funds less end of
February commitments and obligations
© Grant Thornton LLP. All rights reserved.
Currently Available Funds
•Available and anticipated user fees
•Available and anticipated reimbursements
© Grant Thornton LLP. All rights reserved.
Currently Available Funds
Identify previously obligated contracts/ grants/agreements with sequesterable funding
What percent has already been liquidated?
What would be the cost of terminating for convenience of the government?
© Grant Thornton LLP. All rights reserved.
Currently Available Funds
• Perform a thorough review of unliquidated obligations funded with sequesterable funding
• Perform a thorough review of current commitments
© Grant Thornton LLP. All rights reserved.
Currently Available Funds
Review and understand all reprogramming limitations applicable to your agency and appropriations
© Grant Thornton LLP. All rights reserved.
Planned Spending
Identify funding needed to support current staffing salary and benefits for 1 Mar through 30 Sep
© Grant Thornton LLP. All rights reserved.
Planned Spending
Identify planned obligation dates for all planned spending for 1 Mar through 30 Sep and classify each as High, Medium, or Low priority
a. Contracts/grants/agreementsb. Supplies and equipmentc. Rent, utilities, and leasesd. Travele. Employee benefits beyond health and life
insurance (awards, commuter subsidies, PCS, uniforms)
© Grant Thornton LLP. All rights reserved.
Planned Spending
• Identify which requirements could be deferred to the 4th quarter, FY 2013
• Identify which requirements could be deferred to FY 2014
© Grant Thornton LLP. All rights reserved.
Take Immediate Action
Calculate your available funding and your total planned obligations to determine your current shortfall
© Grant Thornton LLP. All rights reserved.
Take Immediate Action
Identify anything planned by 1 Mar – 30 Jun which is deferrable to the 4th quarter or FY 2014 and defer them now
© Grant Thornton LLP. All rights reserved.
Take Immediate Action
Identify any low priority obligations planned for 1 Mar – 30 Jun and defer them now
© Grant Thornton LLP. All rights reserved.
Take Immediate Action
Identify any medium priority obligations planned for 1 Mar – 30 Jun and consider deferring them now
© Grant Thornton LLP. All rights reserved.
Take Immediate Action
Manage labor costs: 1) Determine if planned labor costs for 1 Apr – 30 Sep are compatible with labor cost funding available in CR
© Grant Thornton LLP. All rights reserved.
Take Immediate Action
Manage labor costs: 2) Control new hiring
© Grant Thornton LLP. All rights reserved.
Take Immediate Action
Manage labor costs: 3) Officially encourage leave without pay (LWOP)
© Grant Thornton LLP. All rights reserved.
Take Immediate Action
Manage labor costs: 4) Monitor biweekly payrolls; know the cost of one day of payroll for your entire agency so you can calculate the number of furlough days needed when labor costs become your only available funding to sequester
© Grant Thornton LLP. All rights reserved.
Take Immediate Action
Manage labor costs: 5) Monitor employee losses and calculate impact on funding need through 30 Sep
© Grant Thornton LLP. All rights reserved.
Medium and Long Term Actions
Begin to formulate a budget with the out year sequesters included
© Grant Thornton LLP. All rights reserved.
Medium and Long Term Actions
Ensure sufficient cost management information to determine how much things cost
© Grant Thornton LLP. All rights reserved.
Medium and Long Term Actions
Consider strategic sourcing to reduce costs
© Grant Thornton LLP. All rights reserved.
Medium and Long Term Actions
Adjust strategic goals and objectives