Surviving the Sequester Owen Barwell Doug Criscitello Robert Shea Thad Juszczak March 7, 2013

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Surviving the Sequester Owen Barwell

Doug CriscitelloRobert Shea

Thad Juszczak

March 7, 2013


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



Inventory Currently

Available Funds


Currently Available Funds

FY 2013 Continuing Resolution (CR) funding

less end of February commitments and

obligations



Prior year available funds less end of

February commitments and obligations



•Available and anticipated user fees

•Available and anticipated reimbursements



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?



• Perform a thorough review of unliquidated obligations funded with sequesterable funding

• Perform a thorough review of current commitments



Review and understand all reprogramming limitations applicable to your agency and appropriations



Inventory Planned

Spending


Planned Spending

Identify funding needed to support current staffing salary and benefits for 1 Mar through 30 Sep


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)


Planned Spending

• Identify which requirements could be deferred to the 4th quarter, FY 2013

• Identify which requirements could be deferred to FY 2014



Take Immediate

Action


Take Immediate Action

Calculate your available funding and your total planned obligations to determine your current shortfall



Identify anything planned by 1 Mar – 30 Jun which is deferrable to the 4th quarter or FY 2014 and defer them now



Identify any low priority obligations planned for 1 Mar – 30 Jun and defer them now



Identify any medium priority obligations planned for 1 Mar – 30 Jun and consider deferring them now



Manage labor costs: 1) Determine if planned labor costs for 1 Apr – 30 Sep are compatible with labor cost funding available in CR



Manage labor costs: 2) Control new hiring



Manage labor costs: 3) Officially encourage leave without pay (LWOP)



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



Manage labor costs: 5) Monitor employee losses and calculate impact on funding need through 30 Sep



Medium and Long Term Actions



Begin to formulate a budget with the out year sequesters included



Ensure sufficient cost management information to determine how much things cost



Consider strategic sourcing to reduce costs



Adjust strategic goals and objectives


Questions and Comments

[email protected]

Surviving the Sequester Owen Barwell Doug Criscitello Robert Shea Thad Juszczak March 7, 2013

Documents

obligations grant thornton

spending grant thornton

uniforms grant thornton

items grant thornton

planned spendingidentify

total planned obligations

available fundinginventory

available fundsavailable