BURN RATES

BURN RATESICS FSC Workgroup

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WHAT ARE BURN RATES? 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)

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Standard Disclaimer 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.”

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What are Burn Rates Calculated For?

The incident MAs Contract Work Assignment by county, parish,

activity (i.e. white goods collection) Payroll Travel Etc.

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How do we report Burn Rates? TITLE

Region _ Daily Cost Estimates Report-Situation Report DATE

Authorized Ceiling

EPA Est. Personnel

Cost

EPA Est. Travel Cost

Estimated Contract/ Purchase

Spent

TOTAL Estimated

Expenditures

Balance (Ceiling minus Expenditures)

TOTAL Contract/ Purchase OBLIG.  

Est. Daily Burn Rate

Un-Obligated

Dollars Remaining

Dollars Obligated Not Spent

MISSION ASSIGNMENT

NUMBER 1 $ 21,343,820 $ 2,144,244 $ 552,224 $ 10,714,730 $ 13,411,198 $ 7,932,622 $ 16,394,124   $ 213,668 $ 2,253,228 $ 5,679,394

MISSION ASSIGNMENT

NUMBER 1                      

TOTALFUNDED $ 21,343,820 $ 2,144,244 $ 552,224 $ 10,714,730 $ 13,411,198 $ 7,932,622 $ 16,394,124   $ 213,668 $ 2,253,228 $ 5,679,394

Region 6 Indirect Rate 13.12% $ 2,800,309 $ 281,325 $ 72,452 $ 1,405,773 $ 1,759,549 $ 1,040,760 $ 2,150,909 $ 28,033 $ 295,623 $ 745,136

GRAND TOTAL $ 24,144,129 $ 2,425,569 $ 624,676 $ 12,120,503 $ 15,170,747 $ 8,973,382 $ 18,545,033   $ 241,702 $ 2,548,851 $ 6,424,530

Estimated Days Remaining

Days remaining based on authorized direct ceiling minus total payroll, travel, and contracts EXPENDED   37.1

Days Remaining based on authorized ceiling minus total payroll, travel, and contract OBLIGATIONS   10.55

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HOW ARE BURN RATES USED?

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.

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What Will We Cover? 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

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Mission Assignment

Must be SignedMust have a start dateMust have an end dateRead Language Carefully to stay within Scope at all times Make sure the IC team all agree on the scopeWe can contact FEMA via JFO to clarify scope if necessaryIf we try to bill FEMA for activities outside the period or outside our scope we will likely be denied reimbursement

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Let’s start off simple! 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 dayWahoo 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! 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

MA 1 $100,000 spent, mission 100% completedMA 2 $800,000 spent, mission 50% completedMA 3 $1,000,000 spent, mission 50% completedMA 4 $1,100,000 spent, mission 2% completed

Oops more data leads to: More questions….

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OK, so where are we and what do we tell the IC?

MA 1 Mission 100% completed, on time.MA 2 Mission 50% completed, 89% funding expended

and 3 days remainingMA 3 Mission 50% completed, 50% funding expended

and 27 days remainingMA 4 Mission 2% completed, 4% funding expended and

87 days remainingDon’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?

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Burn Rate Excel Worksheet with Formulas

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Where do we get the information?

Various sources like:o Contractors (field accountant or

contractor PO)o Other Federal Agencies – IAs (CG PO)o CDW Reportso ICS 213 – Resource Requestso Our own estimates and accruals for

Payroll & Travel

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Example of Contractor Reported Burn Rate

For Contractor Tab in Excel

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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

This helps to verify your numbers in the Payroll and Travel Tab

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ICS 213 RR – Resource Request Form

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.

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Agency Admin. Fee and Indirect Rates

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.

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Indirect Cost Rates(EPA Overhead Rate to perform IA work)

•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

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Payroll Calculations

Payroll & Travel Tab in ExcelPayroll & Travel Tab in Excel

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Payroll Tracking

IAs

Contractor

sIAs

Contractor

s

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Travel Calculations

Payroll & Travel Tab in Excel

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Burn Rate Excel Worksheet with Formulas

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ICS Meeting RefresherMorning Operations Meeting (OPS) – All

HandsCommand and General Staff (C&G) – C & G

StaffTactics Meeting(observe don’t participate) –

Tech StaffFinance Staff Meeting - (Limited to Section

and Host Region)Planning (Support the plan for the next op

period or not) - C & G Staff

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Chart Example

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Tips & Tricks 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

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Burned out on Burn Rates? Any Questions?

Contact the Finance Section Chief Training Team:John Anderson, Region 7, (913)551-7470,

[email protected] Phillips, Region 7, (913)551-7014, [email protected] Brown, Region 6, (214)665-7480,

[email protected] Lee, Region 9, (415)972-3195, [email protected]

CDW link:http://ocfosystem1.epa.gov/neis/adw.welcome