ML20199C722
| ML20199C722 | |
| Person / Time | |
|---|---|
| Issue date: | 07/11/1997 |
| From: | Funches J NRC |
| To: | |
| References | |
| SECY-97-146, SECY-97-146-01, SECY-97-146-1, SECY-97-146-R, NUDOCS 9711200107 | |
| Download: ML20199C722 (9) | |
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l RELEASED TO THE PDR .
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. Vale intals POLICY ISSUE July 11, 1997 (Notation Vote) SECY-97-146 ffB: The Commissioners f.fE: Jesse L. Funches Chief financial Officer ,
SUBJECT:
NRC'S MANDAfED AND NON MANDATED ACTIVITIES AND REVISIONS TO AGENCY POLICY ON PERFORMING REIMBURSABLE, WORK FOR OTHERS PURPOSE:
To submit for Commission approval criteria for defining the NRC's mandated and non mandated activities and related revisions to the agency's policy on recovering full agency cost.s in performing reirr.bursable work for others. The proposed criteria and policy revisions are in response to the March 27, 1997.
memorandum. " Staff Requirements - COMSECY 96-065 - Strategic Assessment Direction Setting Issue: Fees (DSI 21) "
SUMMARY
As requested by the Comission. the criteria for defining NRC's mandated and non mandated activities have been clarified. Clarifications to the agency's reinbursable work policy have also been developed. The policy clarifications recommended in this paper reflect how the agency is currently making decisions regarding the performance of reimbursable work. This paper requests your '
approval of these clarifications.
BACKGROUND:
SECY-95-012. " Reimbursement for Work Performed for Other Aaencies" 1
On February 7. 1995, the Commission a) proved SECY-95-012. "Reii.bursement for /
Work Performed for Other Agencies." w11ch established the following policy: 9. I For those Federal agencies and other organizations that request NRC to I) perform work that is not a part of its statutory mission and for which NRC receives no appropriations, the NRC will do so on a reimbursable basis.
CONTACT: Joel Dorfman. OC/DBA/FCB NOTE: To BE MADE FUBLICLY AVAILABLE d :
415-6022 WEN THE FINAL SRM IS MADE AVAILABLE /
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SECY 95 012 also established a policy that the NRC recover full agency costs i in performing work for others based upon the following methodology: l
- For reimbursable details to other Federal agencies. the other Federal l agency is charged the salary and benefits costs NRC incurs for that employee, a for all other reimbursable work for Federal agencies and other organizations. NRC recovers its full agency costs by charging the .
11 cerise fee rate in effect at the time the work is performed to recover :
diNet talary and benefits, travel, and an appropriate share of agency !
overhead costs. The costs of direct contractor support NRC incurs in i the performrnce of reimbursable work is also charged. !
STCY 95 012 provides that waivers of the above policy be approved by the EW;utive irectgr for 0)erations. Pursuant to the January 5. 1997. .
recqmiMbn opproved )y the Commission, the Chairman delegated authority to
' grant waivers for recovery of less than full cost under reimbursable agreements to the Chief Financial Officer (Ciu). ,
i Aaency Authority to Accent Reimbursements and Reauest Acorooriations i Reimbursable agreernts provide NRC with additional authority to obligate L funds beyond amount provided in the agency's direct appropriations. This
?dditional authorit is not included as ) art of the budget authority which the i kRC must collect it fees. As such, reimaursable fbads do not increase the ,
amount of fee < charged to NRC licensees. (
I Since funds provided in reimbursable agreements represent an augmentation to the agency's appropriations, such agreements may only be entered into with :
s)ecific statutory authority. The basic authority available to the NRC to ,
0)tain reimbursement from other Federal agencies for performing services is he Economy Act. The Economy Act allows Federal agencies to obtain goods and services from other federal agencies where the head of the agency requesting the services decides the work cannot be done as conveniently or cheaply by a commercial enterprise. However, the Comptroller General has established the following general rule which limits the circumstances in which a Federal agency may obtain reimbursements from another Federal agency:
... )ayment for services rendered by one agency of the Government for anotler is not authorized where the services are required by law in carrying out the normal functions of the performing agency and. for which appropriations are specifically provided, [33 Comp. Gen. 27 31 (1953)]
For nample, the Atomic Energy A:t requires that the NRC license the construction and operation of civilian nuclear power reactors. Therefore, the agency requests appropriations to perform this activity and may not accept '
reimbursement for' the expenses of this activity from another Fede: al agency.
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The Comissioners 3-The Comptroller General further elaborated on the 'imits placed on the Economy Act by this general rule by stating the followirg:
Under the doctrire of separation of powers. Congress, and Congress alone has the ">ower of the purse." When Congress makes an appropriation, it also esta)lishes an authorized program level. To permit an agency to operate beyond the level that it can finance under its appropriation with funds derived from another source would be a usurpation of the congressional prerogative. [61 Comp. Gen. 419. 421 (1982)].
Given the framework established by the statutes. Com) troller General decisions, and agency policies described above, the 1RC requests appropriations directly from Congress to meet the agency's required statutory mission, as defined in the Energy Reorganization ACL the Atomic Eneroy Act and other laws. The NRC may lawfully accept reimbursements from other Fed?ral agencies for performing services that are not required by statute and for which the NRC has not received appropriations.
DISCUSSION:
Criteria for Distinauishino Mandated and Non-Mandated NRC Activities NRC's activities may be categorized as mandated and non mandated. The following criteria establish that an NRC activity is mandated:
- Statute. Executive Order. Treaty. Convention. or Government-to-Government Aareement Recuires that NRC Perform Activitv. The NRC 1s required to carry out activities required by statutes. Executive Orders, treaties. Conventions, or government-to government agreements which specifically assign a responsibility to the agency (as opposed to the U.S. Government as a whole). The specific implementation of these requirements may be directed by the Commission. The NRC is also required by 31 U.S.C. 1108 to prepare and submit to the President appropriation requests to carry out such activities. Unless authorized by law. acceptance of reimbursements from outside sources to fund these accivities would represent an improper augmentation to NRC's appropriations since these functions are a normal part of the agency's mission for which it receives appropriations.
. Commission Decision Recoiras that NRC Perform Activitv. The Commission may direct that NRC periorm activities in support of statutes. Executive Orders, treaties. Conventions, or government-to-government agreements which do not specifically require NRC action, in this situation, the Commission's direction creates a mandate for the agency. Comission direction may be made through explicit Comission decisions or through Commission approval for funding specific activities in the agency's budget.
An example of an activity mandated by Comission decision is the NRC's nuclear safety assistance to the countries of the Former Soviet Union and Centrai and Eastern Europe. This assistance is made in response to statutes and Presidential decisions which mandate the involvement of the U.S. Government. However, the NRC is not required by law to provide l
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The Commissioners specific assistance. Instead. Commission policy decisions, including approval of agency budget requests to the Office of Management and l Budget (OMB) and the Congress, have created a mandated function for the agency. These policy decisions have resulted in the funding of salaries and benefits and overhead costs necessary to support NRC's assistance from the NRC's appropriated funds. Since these policy decisions have not recuired that the NRC fund its contractual su) port and travel costs relatec to this assistance, the NRC has been reim]ursed for these costs from the Agency for International Development and the Defense Special Weapons Agt:ncy.
An activity is considered non mandated where there is no statute. Executive Order, treaty, Convention, government-to government agreement or Commission decision that requires the NRC to perform a function. A statute. Executive Order, treaty. Convention, or government-to government agreement may require that another Federal agency aerform a function for which NRC assistance would be required. For example, t1e Department of Energy (00E) has a statutory responsibility to assess options for the dis)osition of fissile materials.
DOE has been appropriated funds to support t11s project and has requested NRC's assistance in assessing options for disposition. Since this assistance to DOE 1s not a required part of NRC's mission for which it receives appro)riations, the NRC has obtained funding through a reimbursable agreement with X)E which recovers the agency's full costs of providing assistance.
Most of the NRC's activities are clearly mandated. For any other activity which is not clearly mandated, the staff will apply the criteria established above to determine whether the activity is mandated or non mandated. The resources repired for mandated activities will be included in agency budget submissions should the staff determine that an activity is non-mandated, but should be performed as a service to an outside organization. NRC will perform the service on a reimbursable basis. Performance of non-mandated activities will generally require reimbursement of the agency's full cost of performing the services, unless a waiver is granted by the CFO.
Revisions to the Reimbursable Work Policy Established in SECY 95-012 The policy established in SECY-95-012 states that work for Federal agencies or other outside organizations that is not part of NRC's statutory mission and for which NRC receives no appropriations will be performed on a reimbursable basis by recovering full agency costs, unless a waiver to this policy is granted by the CFO. As a result of the distinctions established between mandated and non mandated NRC activities and experience implementing the policy established in SECY 95-012. the following policy revisions are propesed:
An exception would be made for excluding those resources from the NRC's budget submission for a mandated activity that is not a required part of our statutory mission where another Federal agency is funding the activity.
The Comissioners
- Recovery of Full Acency Costs for Non Mandated Activities. The policy established in SECY-95 012 should be revised to indicate that work for Federal agencies or other outside organizations that is determined to be non-mandated will be performed only on a reimbursable basis by recovering full agency costs, unless a waiver is granted by the CF0.
- Recovery of Full Agency Costs for Selected Mandated Activities. In addition, the policy should be revised to indicate that the NRC will pursue reimbursement from Federal agencies and other outside organizations for the costs of mandated activities which are not a part of its statutory mission and for which NRC has not received appropriations, if efforts to obtain full cost recovery are not successful, the mendated activity may be aerformed without the need for a waiver from the CFO. For example. NRC 1as budgeted for and received ap)ropriations to fund its activities related to regulatory reviews and olier assistance pertaining to waste stored at the Department of Energy's Hanford site. NRC's Memorandum of Understanding with DOE regarding Hanford indicates that certain extra activities performed by NRC for DOE "may be negotiated for cost reimbursement as needed."
Therefore, the full cost of NRC activities beyond the level of funding appropriated directly to the NRC would be funded by DOE through a reimbursable agreement.
- Reimbursements of NRC Staff Travel Excenses. From time to time, NRC staff are Invited by outside organizations to participate as technical advisors or lecturers in out-of-town confrences, meetings, or training programs. Invitations from these outside organizations normally include an offer of reimbursement of the employee's travel expenses for attending the event. Reimbursement is normally accepted under one of the following legal authorities:
- Under 5 U.S.C. 4111. employees may accept payment of travel, subsistence, and other expenses incident to attendance at meetings.
but only if the donor is exempt from taxation under section 501(c)(3) of the Internal Revenue Code (oligious, charitable, scientific, educational, etc.).
- NRC's Salaries and Expenses Appropriation Act permits moneys received for services rendered to foreign governments and international organizations to be retained and used by the agency.
Under the Economy Act, another Federal agency may offer to reimburse NRC for travel expenses of an employee to provide assistance to that agency.
The minimal NRC staff salaries and benefits and overhead costs associated with these trips are not generally reimbursable by the outside organization. It is estimated that outside organizations pay for less than 50 NRC trips per year.
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The Commissioners 6-I Approval by agency management of staff partici)ation in such !
conferences, meetings. or training is-granted 3ased u)on the best- ,
interests of the NRC. In these cases. NRC is not pro 11bited from l funding the full costs of staff partic1]ation in such activities with !
, our appropriated funds. In addition. NRC is not required by law or l regulation to )articipate. However, since funds are not specifically <
budgeted for t1ese events it is in NRC's financial interests to accept i reimbursements for trav31 costs in cases where statutory authority exists to do so. Theretire. the policy of recovering full agency costs
. for >erforming reimbursatile work should not apply to these reim)ursements. i I
e International Assistance Activities. The NRC expends a modest level of resources associated with planning and implementing the following types j of international assistance activities: on the-job training for foreign assignees; limited advice on regulatory matters to representatives of. -;
foreign regulatory organizations (generally one to two day meetings to '
provide technical assistance): and admission of foreign representatives to-training courses at NRC's Technical Training Center on a tuition free, s) ace available basis. These assistance activities contribute to strengtlening regulatory programs abroad and support U.S. foreign policy and national security interests. Given the minimal NRC staff resources >
associated with this assistance and lack of any incremental tecFnical training costs, the policy of recovering full agency costs should not ;
apply to this assistance, j Utilization of Aaency Staff Resources on Reimbursable Work While reimbursable agreements from other Federal agencies provide additional
- funding, they generally do not provide additional full-time equivalents (FTE) to the agency. Therefore, the Commission's March 27, 1997. SRM regarding DSI 21 directed that NRC should identify the FTEs associated with reimbursable activities and seek OMB support for the separation of these FTEs from the '
agency's total budget FTE ceiling.
As part of the FY 1999 budget planning process, the staff is identifying the additional.FTE resources. required for reimbursable work. These FTEs are being ,
separated from the agency's FTE ceiling for our direct appropriated activities and will be identified to OMB as " business-like." In accordance with OMB's January 3.-1996 letter to the Chief Financial Officers Council (see
- attachment), the staff will request, as necessary, that OMB approve increases in the agency's FTE level in order to accommodate these " business-like" L activities. Since the Federal Workforce Restructuring Act of 1994 establishes a government wide FTE ceiling for each year through FY 1999. OMB's ability to !
respond.to our request will depend upon the status of FTEs government-wide.
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o The Commissioners BfCOMMENDATIONS:
It is recommended that the Commission:
. Approve the criteria delineated in this paper for determining mandated and non-mandated agency activities.
. Approve the following revisions to NRC's policy of recovering full agency costs through reimbursable agreements:
- NRC will pursue reimbursement from Federal agencies and other outside organizations for the costs of mandated activities which are not a part of its statutory mission and for which NRC has not received appropriations.
NRC will perform work for Federal agencies and other outside organizations that is determined to be non-mandated only on a reimbursable basis by recovering full agency costs, unless a waiver is granted by the CF0 or the work meets one of the exceptions noted below:
NRC will accept reimbursement of travel expenses from outside organizations to advise or lecture in conferences, meetings, or training programs when authorized by statute, in such cases, the NRC will not seek to recover the salary and benefits or overhead costs associated with the travel.
NRC will continue to provide on-the-job training, limited regulatory advice, and formal technical training to foreign representatives without requiring reimbursement of costs.
C0 ORDINATION:
The Office of the General Counsel has no legal objection to this paper.
esseL.Yunches Chief Financial Officer Commissioners' comments or consent should be provided directly to the Office of the Secretary by cob Honday, July 28, 1997.
Commission Staff office comments, if any, should be submitted to the Commissioners i NLT Monday. July 21, 1997, with an information copy to the office of the Secretary. '
If the paper is of such a nature that it requires additional review and comment, the Commissioners and the Secretariat should be apprised of when comments may be expected.
DISTRIBUTION Commissioners oPA Clo SECY oGC OIP CFo oIG oCA EDo
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, ,p, . EXECUTIVE OFFICE OF THE PREDIDENT J* (sW/) . OFFICE OF MANAGEMENT AND BUDGET WASHINGTON. D C. aolo2 DEPUTY DIRECTOR FOR M ANAGEMEN' 3m
-Mr. George Munoz .
Executive Vice Chair ChiefFinancial Officers Council and Assistant Secretary for Management l s.nd ChiefFinancial Officer '
l'epartment of the Treasury 15th and Pennsylvania Avenue, N.W Room 2426 Washington,DC 202D ,
Dear George:
Thank you for your October 17,1995, letter transmitting the Chief Financial Officers ,
Council's (CFO Council's) paper on "FTE Support for Entrepreneurial Organizations." The paper outlines how Federal agencies operate business like organizations and provides several proposals on how to better accommodate staffing needs for such entrepreneurial endeavors.
Office ofManagement and Budget (OMB) staff have had several meetings with representatives of the CFO Council and the principal drafters of the paper to discuss the proposals in more detail. We are in agreement with many of the proposals and pleased with the results of the consultation.
- 1. We fully support the concept that the successful operation of business like organizations within the Govemment can result in dollar and FTE savings to the parent agency and the Government as a who!c.
- 2. The 12 standard operating principles for business like governmut operations contained in the paper are sound guidance for such activities.
- 3. We endorse the goal that agencies seek operational structures that provide the most cost efective solutions to obtain administrative support services while maintaining accountability to agency senior decisionmakers.
- 4. Business like organizations should be accountable for results that focus on outputs and outcomes. Federal business like enterprises are excellent candidates for
" performance based organizations" and should have a comprehensive set of performance measures to assess each service which is offered.
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- 5. Business-like organizations which can demonstrate a FTE requirement, and have .
identified the funds to fmance them, generally, should be given the FTE levels l
. needed for car:ying out these business-like operations. .
- 6. ' Business like organizations should request necessary FTE initially within their own
- agency and, if such FTE levels are unavailable within the agency, seek involvement from the CFO Council to identify inters .mey alternatives for meeting the orgardzation's FTE needs. Where necessary, consistent with item 5, OMB will give favorab e consideration to increases in agency FIE wget levels to accommodate the needs of the b'v ' mess-like organization.
I recommend that the CFO Council and OMB staff prepare a brief summary of the agreements we have reached. I would like to share the =nmmmy with the President's Management ,
i Council (PMC) at a future meeting and urge the PMC members to give the necessary support to these entrepreneurial, business like organizations.
If your staEhhve any questions, then please call Michael Wenk on (202) 395 5643. Mike will also represent us on any drafting group that pulls together the summary.
Thanks again to the CFO Council and you for a jo$ well done.
/
erel ' ,
Deputy Director For Management ec. Clyde G. McShan,II l
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