understanding+and+managing+ …...8/8/2016 1 understanding+and+managing+ the+courts+budget ncbc/fcca...

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Understanding+and+Managing+the+Courts+Budget

NCBC/FCCA Combined MeetingMichigan State UniversityAugust 8, 2016

Topics+for+Today

• Roles and responsibilities• National and local budget processes• Funding and court unit allotments• Funds management• Appropriations law• Internal controls and stewardship

MSU, August 20162

Roles and Responsibilities

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Roles

• Chief Judges• Court Unit Executives• The Judicial Conference• The Administrative Office

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Chief+Judge+Roles• Primary responsibility for administration of a court, including budget

function• Can retain authority, or delegate specific authorities to judicial budget

committees, or to court unit executives• May review

! Budget requests! Annual spending plans for court units! Funding priorities! Spending projections! Ensure system is in place to prevent over-obligation of allotted

funds

MSU, August 20165

Court+Unit+Executive+Roles

• Executive level employee in charge of a court unit• Responsible for day-to-day management of budget, as well as

court unit operations• Responsibilities are delegated in writing by the chief judge to

the CUE

MSU, August 20166

Court+Unit+Executive+Roles+– Cont’d

• Resource planning and budget development• Estimating and projecting• Monitoring and reviewing• Reporting• Evaluating

MSU, August 20167

Court+Unit+Executive+Roles+– Cont’d

• Conduct budget and planning meetings• Approve unit’s annual budget request• Manage the unit’s allotted funds• Submit financial reports to the AO• Communicate with other court units about financial

requirements and spending priorities• Maintain a system of controls to ensure allotment is not

exceeded• Serve as contact for financial information and data

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Judicial+Conference+Roles

• Policymaking body• Judicial Conference Committees work with program offices of

the AO to develop budget request to Congress • Approves spending plans, called the Financial Plan, to

distribute funds available for the fiscal year

MSU, August 20169

Administrative+Office+Roles

• The Director• Program Offices• Budget Division

MSU, August 201610

Administrative+Office+Roles+– cont’d

• The Director! serves as the chief administrative officer of the courts! directs the activities of the agency under the supervision of

the Judicial Conference! submits budget estimates for the Judiciary to the Office of

Management and Budget! delegates activities, such as finance and budget, to the courts

MSU, August 201611


• Program Offices ! Use current year AO financial plan to estimate the funding

requirements to maintain operations for budget year! Develop workload change projections (JDAO)! Use workload projections to calculate the number of staff

needed in the court units! Submit budget requests and a priority listing of program

changes to the appropriate program committee of the Judicial Conference

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• Budget Division! Assists the Program Offices with budget development by

calculating the cost impact of projected staffing changes! Manages the judiciary’s overall budget! Submits Judiciary Budget Justification to Congress! Provides Court support! Provides policy and training

MSU, August 201613

The National Budget Process

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National+Budget+Formulation

• All steps, actions, and documentation to develop a budget that are required in advance of the enactment by the Congress of an appropriation bill

• Judiciary’s budget is included in the President’s government-wide budget request “without change”

MSU, August 201615

Judiciary+Appropriations• Courts of Appeals, District Courts, and Other Judicial Services (Salaries

and Expenses, Defender Services, Fees of Jurors and Commissioners, and Court Security)

• Payments to Judicial Retirement Funds

• Supreme Court

• Administrative Office

• Courts of Appeals for the Federal Circuit

• Federal Judicial Center

• Court of International Trade

• U.S. Sentencing Commission

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FY+2016+Judiciary+Discretionary+Appropriations+$6.78B

MSU, August 201617

S&E (72.0%)

Def Svcs (14.8%)

Court Sec (7.2%)

Supr Ct (1.2%)

AO (1.2%)

Jurors (0.7%)

Appeals (0.5%)

FJC (0.4%)

CIT (0.3%)

USSC (0.2%)

Win+a+Prize!

What percent is the Judiciary’s budget of the entire government’s

spending?

MSU, August 201618

The+Answer!

The Judiciary’s entire budget makes up only 0.2 percent of the entire federal budget!

Who won?

MSU, August 201619

Formulation+of+the+Budget+Request+to+Congress

Judicial3Conference3Budget3Committee3provides3guidance

Economy3Subcommittee3works3with3Program3Committee3Chairs

Program3Committees3develop3budget3requests3(AWUs,3IT3Infrastructure3Allotments,3Law3books,3Law3Enforcement)

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Budget3Committee3makes3recommendationsto3the3Judicial3Conference

Judiciary3submits3budget3request3to3the3OMB3for3inclusion3in3the3President’s3budget3to3Congress

Judiciary3provides3reVestimates:3caseload,3#3of3judges,3etc.

Congress3acts3on3request3and3passes3appropriations

MSU, August 201621


MSU, August 201622

So, how long did that formulation process take?

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Continuing+Resolutions

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• Appropriations acts that provide budget authority when Congress and the President have not completed action on the current year appropriations by October 1

• Limits spending until an appropriation is passed

• Causes AO to issue interim allotments, followed by final allotments once the appropriation is in place

MSU, August 201625


•What has been the impact of CRs on your court unit operations?

• How could those impacts be lessened?

MSU, August 201626

The National Financial Plan

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Developing+the+National+PlanIn order to prepare for local court unit allotments…..

…..development of a national financial plan begins 3 – 4 months before the beginning of the fiscal year, while Congress is still working on the budget

Includes estimates of:

• Likely appropriations • New filing fee revenue

• Carry forward savings

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Includes+Funding+From+Fees

• Fee carry-forward: unused fee account balances from courts and central accounts that can carry from one year to the next

• New filing fee revenue: estimates of new fee collections per fee type for the Judiciary’s share

MSU, August 201629

The+National+Plan:+Key+Activities

• Quarterly financial reviews which includes ESFR analysis • Re-estimates to Congress • Develop allotment scenarios w/March caseload • Develop funding options using House/Senate marks • Quarterly reviews to update projected balances in fee carry-

forward • BFAC & Advisory Groups coordination• Executive Committee review • Update allotment estimates with final June AWUs • Continuing Resolution = Interim Plan• Enacted appropriation = Final Plan

MSU, August 201630

The+National+Plan:+The+Courts+Role

BFAC and peer advisory groups make recommendations for:

• Distributing court allotments by program and by program type

• Budget balancing strategies

MSU, August 201631

National+Policy+Changes

•Can be driven by Congress

•Assessment made by the Budget Division …

… in collaboration with …

• Budget Committee• Economy Subcommittee• BFAC and Judiciary Advisory Councils•AO Program Offices

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Key Concept: Budget Decentralization

MSU, August 201633

Budget+Decentralization

Budget Centralization: "Mother-May-I”

• A collective of AO directorates solely responsible for the fiscal management of all court units

• Unit executives submitted requisitions for supplies, equipment, and manpower to the AO

• Formal requisitions were routed through a system that could take several days, weeks, or even months to be filled

MSU, August 201634

Budget+Decentralization

Budget Decentralization:

• Introduced to a handful of courts through a pilot program in 1987

• Fiscal authority shifted from the AO to the courts' chief judges, CUEs and their designees

• Within the decade, decentralization authorization was extended to the entire Judiciary

MSU, August 201635 MSU, August 201636

Court Unit Budget Organization Plan

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MSU, August 201637

Court+Unit+Budget+Organization+Plan+(CUBOP)

What+is+it?

Why+must+courts+have+one?+


• CUBOP is a requirement of the Judicial Conference

• Each local court unit must develop a plan to reflect how each district is organized and operates

MSU, August 201638


• These issues should be considered in the development of your CUBOP.

Financial Operating Process

Budget Execution

Funds Control

Budget Planning

MSU, August 201639

Court+Unit+Budget+

Organization+Plan+(CUBOP)

Chief+Judge

• Approves budget organization plan and processes

• Documents delegation of responsibility for day-to-day management of court unit’s budget

Unit+ExecutiveLiaison+JudgeBudget+Committee

• Review and approve:– Court unit’s annual spending plan– Budget requests for the next FY, allotment appeals and funding

requests– Budget reports submitted to the AO and the Chief Judge– Intrafund, Interfund, and Interunit reprogrammings

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The Local Budget Process

MSU, August 201641 MSU, August 201642

Judges2% of plan

($128 million)

Chambers14% of plan

($750 million)

Court Support Staff Benefits12% of plan

($663 million)

GSA Rent/CRB/IWI21% of plan($1.1 billion)

Other Historically FullyFunded

(ex: Bankruptcy Noticing Center, Networx, Records

Management, Investigations)4% of plan ($193 million)

Discretionary Court Allotments

(Salary, Non-Salary, Law Books, & Law Enforcement)

39% of plan($2.1 billion)

Other "Controllables"(e.g. Natl IT Program)

7% of plan ($390 million)

FY 2016 Final Financial Plan (excl Mandatory Judges)Salaries and Expenses Account by Category

$5,362,710,47853% Must Pay/Short-Term Uncontrollable

Funding+Available

• Court unit allotments• General authorizations• Specific allotments• Centrally-managed funds

MSU, August 201643

Funding+Available• Court unit allotments ($2.3B)

! Court unit allotments represent a sub-allocation of appropriated funds

! Designated as one-year funds and limited to the fiscal year in which they are allotted

! Allotted to court units! Court allotments/salary! Court allotments/non-salary

• General authorizations• Specific allotments• Centrally-managed funds

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Funding+Available• Court unit allotments• General authorizations

! Represent delegated authority for courts to incur obligations for services without prior approval by the Administrative Office, and for which no monetary limitation is usually specified.

! Not allotted to court units! Include:

o Travel of Judges & Chambers Staffo Contract court interpreterso Training enrollments of judges and chambers staff

• Specific allotments• Centrally-managed funds

MSU, August 201645

Funding+Available• Court unit allotments• General authorizations• Specific allotments

! Represent delegated authority for courts to incur obligations for services with prior approval by the Administrative Office, and for which a monetary limitation may be specified.


o Travel for staff paid for by a specific AO office (e.g., Financial Forum)

o Travel for staff paid by the FJC• Centrally-managed funds

MSU, August 201646

Funding+Available• Court unit allotments• General authorizations• Specific allotments• Centrally-managed funds

! Accounts over which the Administrative Office retains control. The AO budgets and pays for these expenses on the courts behalf.


o Judges and chambers staff salarieso Employee benefitso Rento National acquisitions (such as software)

MSU, August 201647

Court+Unit+Allotments

In the previous slide, we said that court unit allotments are broken into:• Salary• Non-salary

Let’s now look even deeper into how these allotments are determined…

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Budget+Formulas+=+Funding• Most court allotments generated by formula• Salary Allotment Formula • Non-Salary Allotment Formulas

! Examples that use AWUs as a component of the formulaoAggregateo IT InfrastructureoCapital Goods

! Those that use past expendituresoHistoricaloLaw EnforcementMSU, August 201649

Salary+Allotment+Formula

• Staffing Allocations• Adjustments for changes in AWUs• Additives (not covered in formulas)• Final allotment

These four high-level items constitute the salary allotment formula that allows for the determination of AWUs and resulting salary funding

MSU, August 201650

Authorized+Work+Units

• Under budget decentralization, the court may choose to hire more staff at lower levels or to hire fewer more expensive staff

• Form the basis for calculating the court unit’s salary allotment• Adjustments are based on caseload statistics for the year ending

June 30th

! For an increase in workload, additional work units will be allocated

! For a decrease in workload, work units will be reduced

MSU, August 201651

Authorized+Work+Units

• Change in AWUs from prior year X national average salary = change in funding

• Output of the staffing formulas • Does not equate to positions (e.g. if a court is authorized 20

staff and has 22 staff on-board, it is not considered to be over strength or over its authorized staffing ceiling)

• Merely provide a measurement of the funding required by a court unit

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Workload+Measurement+Formulas

• Use July 1 to June 30 workload data, converted to AWUs. • Identify workload fluctuations (+/-) that are used in the salary

allotment calculation• Some non-salary formulas use AWUs and chambers staff as

their base• Periodically updated to ensure the right work is being

measured

MSU, August 201653

Allotment+Categories

• Salary

• Operational (Non-Salary)

• Automation

MSU, August 201654

Salary+Allotments

• Provides funding for court salaries based on the CCMS formula calculations

• Based on staffing formulas for each of the court types

• Largest component of any court unit budget

MSU, August 201655

Cost+Control+Monitoring+System

A cost containment operating principle:

• Developed for allotting salary funding and managing future costs for Court Personnel System

• Designed to distribute financial resources equitably

• Helps control costs of court unit’s personnel decisions

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Operational+(Non_Salary)+Allotments

• Aggregate • Historical • Law Enforcement• Capital Goods• Cyclical Facilities Maintenance• Tenant Alterations• Law Books• Part-Time Magistrate• Others

MSU, August 201657

Automation+Allotments

51140X• Aggregate (IT portion)• Law Enforcement (IT)• Mobile Technology

51140E• EPA (Electronic Public Access)• Courtroom Technology• IT Infrastructure

MSU, August 201658

Verifying+Allotments

MSU, August 201659

Court units must verify allotments

• Why verify?

• How do I do it?

• What if there’s an error?

InfoWeb

MSU, August 201660

• Intranet-based system housed at the AO • Gives courts on-line access to enter:– reprogrammings– budget call requests– appeals– supplemental requests for funding – return of funds

• Used by courts to – monitor their allotment activity and staffing– estimate and verify next year allotments– report certain financial information to the AO

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Aggregate+Formula

• The aggregate formula was developed via an analysis of the correlation found between the size of authorized staff, and court unit expenditures

• The BOCs associated with these operating expenses collectively are called and treated as an "aggregate of BOCs"

• The formulas developed for the "aggregate of BOCs" will produce similar allotment amounts for court units of the same type that are of similar size

MSU, August 201661

Aggregate+Formula

MSU, August 201662

In general, the aggregate formula calculation is $ = a + bx,$ = total allotmentx = measure of size based on AWUs and authorized chambers staffb = a multiplier for the measure of staff size (x)a = a constant amount of funds allotted to each court

Bankruptcy courts formula is $ = a +bx + dz, which also includesz = number of staffed officesd = a multiplier for the measure of staffed offices (z)

Aggregate+Allotment+Formula+Calculations

for+Fiscal+Year+2016Appellate3 $3,124.653x3(AWUs3+3Chambers3Staff)

Bankruptcy3Administrators $15,630.893+3($2,492.523x3(AWUs3+3Chambers3Staff)

Bankruptcy3Clerk’s3Offices($2,744.033x3(AWUs3+3Chambers3Staff))3+3($5,624.603x3(Number3of3Staff3Offices3+1))33

District3Clerk’s3Offices $50,850.923+3($3,372.473x3(AWUs3+3Chambers3Staff)

Probation3Offices $36,408.553+3($1,783.393x3AWUs)

Pretrial3Services3Offices $10,677.813+3($1,988.033x3AWUs)

Aggregate+Verification

MSU, August 201663

District Court3=3$50,850.923+3($3,372.473x3(AWUs3+3Chambers3Staff))

Step31.3 Enter3your3current3fiscal3year3AWUs,3plus3authorized3chambers3staff__________

Step32.3 Take3the3number3in3step313and3multiply3by3the3number3indicated3by3the3formula for3court3program3type3in3the3above3table.33(District3Court3exercise).3

__________

Step33.3 Add3to3the3results3in3step323the3constant3number3indicated3by3the3formula3for3your3court3program3type3in3the3above3table.3The3result3is3your3unadjusted3allotment3for3the3aggregate.3 __________

Step34.3 Adjust3the3result3in3step333by3adding3the3inflation3adjustment3factor.3Refer3to3the3Aggregate3Allotment3Calculator3in3InfoWeb3for3the3specific3percentage.3 __________

Step35.3 Take3the3result3from3step34,3and3reduce3it3by3the3financial3plan3percentage3adjustment3factor.3Refer3to3the3“FY20163Interim3Allotments"3memorandum3for3the3specific3percentage.3The3result3is3your3total3Aggregate3allotment.

__________

Aggregate+Verification

64

District Court3=3$50,850.923+3($3,372.473x3(AWUs3+3Chambers3Staff))

Step31.3 Enter3your3current3fiscal3year3AWUs,3plus3authorized3chambers3staff 104.7

Step32.3 Take3the3number3in3step313and3multiply3by3the3number3indicated3by3the3formula for3court3program3type3in3the3above3table.33(District3Court3exercise).3

353,098

Step33.3 Add3to3the3results3in3step323the3constant3number3indicated3by3the3formula3for3your3court3program3type3in3the3above3table.3The3result3is3your3unadjusted3allotment3for3the3aggregate.3 403,949

Step34.3 Adjust3the3result3in3step333by3adding3the3inflation3adjustment3factor.3Refer3to3the3Aggregate3Allotment3Calculator3in3InfoWeb3for3the3specific3percentage.3 418,087

Step35.3 Take3the3result3from3step34,3and3reduce3it3by3the3financial3plan3percentage3adjustment3factor.3Refer3to3the3“FY20163Interim3Allotments"3memorandum3for3the3specific3percentage.3The3result3is3your3total3Aggregate3allotment. 412,652

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Aggregate+Allotment+Calculator

65 MSU, August 2016

Historical+Formulas

Funding for historically based expenses are based on the court unit’s expenditures for the four quarters ending June 30 of the previous fiscal year, as reported in the judiciary’s official accounting system, and increased by a percentage for inflation if authorized under the financial plan.

• Historical (092000)

• Law Enforcement (092000 and 51140X)

MSU, August 201666

Historical+Formula+BOCs

Court3of3Appeals3Travel3 21203

Overtime3Utilities3 23413

Leased3Parking3 23423

Contract3Court3Reporters3 25313PartVTime3Magistrate3Judges’3Staff3Salaries3and3Related3Employment3Expenses

2533

PartVTime3Magistrate3Judges’3Miscellaneous3Office3Expenses

2534

MSU, August 201667

Law+Enforcement+Formula+BOCs

Temporary3Duty3Travel3BOC321203(Funds30920003&3

51140X)

TrainingVRelated3Travel3BOC321253(Funds30920003&3

51140X)

Probation3Substance3Abuse3

Treatment3and3TestingBOC32526

Pretrial3Alternatives3to3Detention BOC32527

Probation3Mental3Health BOC32530

Probation3Electronic3Monitoring BOC32536

Sex3Offender3Treatment3and3

MonitoringBOC32548

Defendant/Offender3Support3

Services3(2nd Chance3Act)BOC32580

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Capital+Goods• Formula allotments are included in the 092000 BOC 2000 basket for the acquisition of capital expense items. Examples:

General Office Equipment (BOC 3101)

Copier Equipment (BOC 3109)Furniture (BOC 3111)

• Allotments are based on the per capita amounts for each court unit type • The amount allotted is equal to the per capita amount times the number of authorized staff (including chambers where applicable) for the current fiscal year

MSU, August 201669

Capital+Goods+Formula

70

Capital+Goods+Allotment+Calculations+forFiscal+Year+2016

Program+Type Formula

Appellate3 $1,0043x3(AWUs3+3Chambers)

Bankruptcy3Administrators $9363x3(AWUs3+3Chambers3Staff)

Bankruptcy3Clerk’s3Offices3 $9363x3(AWUs3+3Chambers3Staff)

District3Clerk’s3Offices $1,2123x3(AWUs3+3Chambers3Staff)

Probation3Offices3 $5523x3AWUs

Pretrial3Services $5443x3AWUs

MSU, August 2016

Capital+Goods+VerificationBankruptcy Clerk’s Offices $936 x (AWUs + Chambers Staff)

71

Step31.3 Enter3your3current3fiscal3year3AWUs,3plus3authorized3chambers3staff.

_____3

Step32.3 Multiply3the3amount3from3step313by3the3per3capita3amount3for3your3court3program3from3the3table3above.

_____3

Step33. Take3the3amount3from3step323and3reduce3it3by3the3financial3plan3percentage3adjustment3factor.3Refer3to3the3“Fiscal3Year3Interim3Allotments”3memorandum3from3the3Budget3Division3for3the3specific3percentage.3The3result3is3your3total3Capital3Goods3allotment,3prior3to3any3reductions3required3to3meet3any3shortfalls3in3congressional3appropriations. _____3

MSU, August 2016

Capital+Goods+Calculator

72 MSU, August 2016

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EPA+AllotmentFund+51140E+New+in+FY+2016

• The judiciary is authorized by § 303 of Pub. L. No. 102-140 to collect EPA fees for activities that support public access only to the extent that such fees are expended for services and equipment that clearly enhance the public’s electronic access to the courts

• In order to comply with the statutory limitation, reprogramming EPA allotments to other fund accounts is prohibited. Funds may, however, be reprogrammed between the BOCs available within the EPA fund

• EPA funds are a component of the IT Infrastructure allotment, and are allotted separately to JITF Fund 51140E

MSU, August 201673

Appropriate+use+of+EPA+Funding

MSU, August 201674

EPA+Spending• For equipment or projects that meet EPA purposes, Fund 51140E

is the preferred funding source. Fund 51140X, or a combination of both 51140E and 51140X funds, may be used to supplement purchases where insufficient EPA funds were allotted

• In the event both funding sources are needed to finance a project, purchase orders will require separate accounting lines to correctly identify the funding sources and BOCs used

• EPA usage descriptions for BOCs available within Fund 51140E are listed on the Fund 51140E BOC Reference Sheet found on the JNet’s Financial Management, Budget section

MSU, August 201675

Allotment+Resources• Contact information for allotments issued by various AO

Program Offices, Facilities & Securities Office, Department of Technology Services, and other AO Offices, are listed in InfoWeb calculators, allotment notification, or JNet, including the CBOM and BOC Reference Sheets

• Budget Division is the contact for allotments it manages: Salary, Aggregate and Historical which includes Law Enforcement Historical

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Who+to+Contact?• Should the courts be involved in “shopping around” for

the best answer?

• NO!

• What is the detriment to the Courts and the AO?

• Slows down the process

MSU, August 201677

Current Initiatives Impacting the Court Budget

MSU, August 201678

Current+Initiatives

• Shared administrative services• Cost containment• Salary reset• Non-salary resets• Staffing formula updates

MSU, August 201679

Shared+Administrative+Services

Expanded reprogramming authority• “local funds can be reprogrammed among court units,

regardless of type, geographical location, or judicial district or circuit, for voluntary shared services arrangements with the approval of the Administrative Office”

Reprogramming of funds between units with signed MOUs is the preferred method of funding Shared Administrative Services

MSU, August 201680

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Cost+Containment

• To contain future growth within the judiciary in both the immediate and future fiscal years

MSU, August 201681

Salary+Reset

• What is it?

• Why do it?

• How often?

• Implications

MSU, August 201682

Staffing+Formula+Updates

• Updated on a periodic basis

• Impact! Locally! Nationally

MSU, August 201683

Spending Plans

MSU, August 201684

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Budget+Planning

Start Early Planning for New Fiscal Year Budget

Develop Local Spending Plan

Respond to AO Budget Call

MSU, August 201685

• Prepare3initial3annual3spending3plan3for3the3next3fiscal3year3(Spring)

•Gather3and3analyze3prior3year’s3spending

•Estimate3future3requirements

•Assess3operating3requirements

•Review:" BOCs" ESFRs" expenses3by3type" projected3operating3requirements

•Request3funding3for3oneVtime3events3in3new3fiscal3year

•Request3funding3for3unusual3circumstances:•Construction•HighVprofile3trials•Other

Developing+a+Local+Court+Unit+Spending+Plan

Begin initial budget planning 4–6 months before the end of the fiscal year.

MSU, August 201686

• Identify amount needed for staffing, operations and desired changes

• Get input from judges, managers and staff

• Project and assess future costs

• Get approvals from chief judge and CUE

Importance+of+Budget+Object+Codes(BOCs)

MSU, August 201687

Understanding budgetary codes, including the various fund codes and BOCs, and using them properly is not only key to adhering to the Director’s system of administrative control, but also ensures that funding formulas for your court unit take into consideration the best available information.

BOCs+and+Funding+Formulas

MSU, August 201688

Salary

Aggregate

Historical

Law Enforcement

Capital Goods

TenantAlterations

IT Infrastructure

EPA

Why are these BOCs so

important?

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Budget+Object+Codes# Three major groups

# Determined in accordance with their initial purpose, not the end product or service

1XXX• Personnel

Compensation & Benefits

2XXX• Contractual Services

and Supplies, Travel, Rent, Etc.

3XXX • Acquisition of Assets

Budget+Object+Codes+Reference+Sheets

MSU, August 201690

BOC Reference Sheets have been developed and are posted on the JNet:

• Reflect the spending needs of the judiciary• Organized by fund and basket• Contain detailed information for each BOC to correctly

classify expenditures• List Program Office contacts for additional guidance in use of

the BOC

Budget+Object+Codes+and+Local+Budget+Management

MSU, August 201691

Moving from Basket BOCs to Spending BOCs establishes a spending plan

Monitor spending against the plan

Reprogram between BOCs to cover shortfalls or to fund new purchases

Report internally and externally on the status of funds during the fiscal year

Assigning+Budget+Object+Codes

MSU, August 201692

Classifying expenditures enables the judiciary to achieve the following goals:

• Ensure compliance with laws authorizing use of federal funding

• Track the types of purchases it makes• Accurately determine funding needs for future fiscal

years

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Budget+Object+Codes+and+Reporting

MSU, August 201693

Electronic Status of Funds Reports are a snapshot of your obligation and expenditure activity at the BOC level.

AO uses spending activity to evaluate reprogramming and supplemental funding requests.

Projected balances on the ESFR report are used at the national level to be included in the judiciary’s annual budget request to Congress.

MSU, August 201694

Read profile of your court

Create of list of questions to gain the information you

need to build a spending plan

Spending+Plans+Exercise

MSU, August 201695

You’ve developed your initial spending plan

What happens next?

Requirements+and+Allotments

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You’ve received your allotments092000 2000 10/01/2015 OAFBUDX 590607 Annual 10/01/2015 15,771

Historical annual allotment [Darius P. Ward]

092000 2000 10/01/2015 OAFBUDX 590959 Annual 10/01/2015 82,481

Capital Goods annual allotment [Darius P. Ward]

092000 2000 10/01/2015 OAFBUDX 591393 Annual 10/01/2015 215,028

Aggregate annual allotment [Darius P. Ward]Explanation: Total AGGREGATE allotment ($263,515) * non-automation percentage (81.6) = non-automation portion ($215,028)

092000 2000 10/01/2015 OAFBUDX 591856 Annual 10/01/2015 656

FY 2016 Contract Court Reporters Interim allotment 50% [Darius P. Ward]

Explanation: Contract Court Reporters Interim- 50%

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• Fully fund current and planned salary requirements• Fully fund all non-discretionary expenses up front– maintenance agreements– fixed-price monthly expenses – estimated amounts for non-fixed price recurring

expenses • Reduces the amount of reprogramming actions needed

during the year• Spares you from having to increase PO amounts later • Allows you to easily detect surpluses and shortages• Budget your funds where you know they will be needed


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Uh+oh!++Do+you+have+more+“must_pays”+than+you+have+

allotments?

The$AO$is$here$to$lend$a$helping$

hand.

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Funding+Assistance+Alternatives• Contributions from other units within District

• Supplemental requests

• AO Offices (DPS, DAS, DTS)– Court Services Office– Probation and Pretrial Services Office– Budget, Accounting and Procurement Office

(BAPO)– Facilities and Security Office– Human Resources Office– Department of Technology Services

Requirements+and+AllotmentsTechnical+Appeals

Supplemental+Requests

Address a calculation error

Address needs outside the formula and extenuating circumstances

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Creating+a+Budget+Tracking+Report

Compare actuals to date to what was budgeted at the beginning of the period.

Track your expenses on a worksheet.

Determine how much money you spent.

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Components of a first-rate budget tracking report:

• Up-to-date actual expense amounts• Current approved spending plan amounts• Prior-year data• Bases for projecting spending according to the cost

classification• Ability to quickly identify surpluses, shortfalls, and

areas of concern• Completed and analyzed on a monthly basis• Ability to generate summary level reports for CUE and

Chief Judge

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Reprogramming

What+is+Reprogramming?

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Reprogramming is simply the movement of funds. The goal is to provide court units with flexibility to:

• Address local budget requirements• Enhance operations• Match planned spending to BOC detail

Reducing+Reprogramming

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Possible+Strategies+to+avoid+ReprogrammingWork, work, work on that spending plan:

• Look at historical spending

• Pin down known future expenses

• Prepare for what realistically could happen

• Fund BOCs according to your plan

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How3many3reprogramming3requests3were3submitted3on3Info3Web3in3FY315?

What3was3their3value?

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1,0353reprogramming3requests3were3submitted3on3InfoWeb3totaling3

over3$843million3for3FY315.3

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Types: Intra-Fund, Inter-Fund, Inter-Unit

Reprogramming+Actions

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Expanded+Local+Reprogramming+Authority+for+Voluntary+Shared+Services

• Local funds can now be reprogrammed among court units, regardless of type, geographical location, or judicial district or circuit with prior AO approval

• Court units located within the same district may reprogram funds for voluntary shared service purposes with no prior AO approval

Stretch budget dollars by sharing administrative services such as budget, finance, human resources, and procurement; training, mail services, property management, space and facilities, automation, and case management services

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Managing in a Constrained Budget Environment

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• Review court unit goals and objectives• Develop a roadmap that directs the type of options you

will pursue (non-salary and salary related)– The type of options a court unit pursues is dependent

on its unique goals and objectives• Identify:– Non-salary measures– Voluntary salary measures– Involuntary salary measures

• Look for judiciary-wide initiatives

Options+for+Managing+in+a+Constrained+Budget+Environment

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• What options might you choose to implement when your allotment takes a nose dive?

• Are there any tricks?• Your court unit is depending on you!

Reduced+Budgets:+What+Will+You+Do?

Developing+Your+Final+Spending+Plan

• Determine court goals/priorities.• Review A.O. Budget Call instructions.• Identify critical budget events• Gather past historical data.• Identify cost of current operations• Anticipate court’s future needs.• Conduct internal budget call.• Identify unfunded requirements.• Identify non-recurring/recurring operating expenses. • Identify changes to current spending rates or requirements• Verify calculations.• Prioritize one-time projects.• Prepare final spending plan. • Get approval from designated authority in your CUBOP.

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Fiscal Year-End

End+of+Year+Budget+Activities

• Ensure that you meet deadlines: – voluntary returns to AO– cash award processing– reprogrammings– CIF requests

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• Make certain all obligations in the accounting system are valid

• Perform budget query on the expiring fiscal year budget• Deobligate funds that aren’t needed• Ensure over-spending will not occur


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Deobligations—

You are required to deobligate any obligations that are no longer valid, prior to September 30th.


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Prior Year Review–

Allowed to expend from prior year budget balances for obligations that occurred in those years provided the scope of the project is unchanged.

• Can go back five years

• So during fiscal year 2016, be sure there are no unliquidated obligations remaining in fiscal year 2011

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Did you know?

When courts voluntarily return excess funds at the end of the fiscal year, that money can be used to increase the funding available for all court units in the upcoming fiscal year.

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Course Summary

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Course+Summary

Budgeting

ExecutingReviewing

Planning

Judiciary/Court Unit Objectives

Questions?

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