Fermilab Budget and FinanceC. Conger, Chief Financial Officer

Mission Support Winter Planning Workshop

February 20, 2013

Fermilab 101Fermilab Community Advisory Board

January 9, 2010

The Finances of

Fermilab 101

Mission Support Planning Workshop 2/20/2013

Where does Fermilab get its funding?

• Nearly 100% from the Office of High Energy Physics (OHEP) within the DOE’s Office of Science.

• Largest “single program” in the Office of Science• FY2013 President’s Budget:

DOE $27.2B• Office of Science $5.0B

Office of High Energy Physics $776M Fermilab $359M Currently expecting $375M

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Fermilab 5-Year Funding by Source($M)

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FY15

FY14

FY13

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For more info . . .

FY13 Financial Outlook – HEP

• Continuing Resolution expires March 27, 2013 All-year CR at FY12 levels is most likely scenario now Science Lab Initiative infrastructure $2.5M (not HEP) on hold as “new start”

• Sequestration may take effect March 1st . . . . . . but will it endure, and if so, at what level? No immediate effect on lab - will have 6 months of funding as of 2/28/13. 5% exercise done by DOE - would be ~$18M cut if pro-rated across HEP

• Significant concerns at funding level of $375M (down ~7.5% from FY12) Accelerator R&D/SRF program is $4M short of Lab plan NOvA Project cost review resulted in transfers to Lab > $3M to date Squeezing to do first-phase CDF refurbishment for IARC program by deferring

several GPP projects - ~$3M

• Debt ceiling crisis has passed for now – expected to hit limit again ~August

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Cost of Doing Business – Indirect Costs

• Indirect Costs are costs that cannot be directly identified with a single “final cost objective”

Fermilab’s “final cost objectives” are the DOE B&R categories Most of us in this room, most of the time we’re working, are “indirect costs”

• Indirect costs must be allocated in a consistent way based on the “causal-beneficial” relationship between the indirect cost and the activity it’s being charged to.

The most common method to do this is to pool similar indirect costs together, define a base of costs that will pay for each pool, and establish a rate to apply to the costs in the base that will allocate the pool.

• Indirect cost allocation is governed by Cost Accounting Standards Cost Accounting Standards is a provision in FRA’s contract with DOE FRA is required submit a Cost Accounting Standards Disclosure Statement to

DOE for approval any time the methodology for allocating indirect costs changes significantly.

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Cost of Doing Business – Indirect Costs (cont.)

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Indirect Costs by Organization FY08-FY13

FY08 Obs FY09 Obs FY10 Obs FY11 Obs FY12 Obs FY13 Plan0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

320,000,000

330,000,000

340,000,000

350,000,000

360,000,000

370,000,000

380,000,000

390,000,000

400,000,000

410,000,000

420,000,000

DS - FINANCE

DS - WORKFORCE DEVELOPMENT AND RESOURCES SECTION

DS - ES&H SECTION

DS - POWER, FEE, IGPP

DS - DIRECTORATE

DS - BUSINESS SERVICES SECTION

DS - FACILITIES ENGINEERING SECTION

DS - TECHNICAL DIVISION

DS - PARTICLE PHYSICS DIVISION

DS - ACCELERATOR DIVISION

DS - COMPUTING DIVISION

OHEP FUNDING

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Questions?