PS Days, January 2001 The “Plan” B.W.Allardyce The Medium Term Plan is presented at the June FC meeting by the Management and covers 4 years (I.e. in June 2001 the document covers 2002 to 2005). It is supposed to allocate sufficient resources for the approved CERN programmes, and covers both manpower and material resources. This document is extremely important because it determines what resources are allocated over the next few years. It is from this document that FI generates the “official” budget each year; and our potential for recruitment also stems from it. Discussions in the Sectors precede the document, but experience shows that Divisions do not have as much influence on it as they would like. The document is produced by a unit in DSU. There is also a Long Term Plan which was last presented just prior to LHC approval. There is no direct link to the MTP, but this latter is supposed to reflect what is in the LTP.

PS Days, January 2001 The “official” budget B.W.Allardyce The “official” budget is discussed in the Sector in April each year. The discussions cover the money to be allocated to both Exploitation and Projects in the following year (i.e. in April 2001 for the year 2002). There is a small margin for negotiation, but basically FI Division supplies target figures based on the Medium Term Plan (MTP). An agreement is reached between the Divisions of the Sector by the DPO’s within the global amounts for the Sector; the discussions are strongly influenced by the Director of Accelerators. Divisions submit details to FI Division in May, of how the agreed money will be spent the next year. The expenses have to be detailed by “PPA code” (e.g. ISOLDE, or leptons, etc) and “nature” (e.g. travel, or consultants, etc) for both Exploitation and Projects. Using these numbers, FI Division draws up the Preliminary Draft Budget document that goes to FC in September. A summary version of this, together with the CVI (cost variation index) details then becomes the document which gets voted on by FC in December. The next year, a comparison is made between what was in this document and what actually happened. A final version of the current year’s budget is issued in March, including the CVI awarded the previous December, and recalculating the numbers in CHF of the current year.

PS Days, January 2001 The internal budget B.W.Allardyce What actually gets allocated to Divisions is often not the same as the “official budget”. We usually know in December what we will really get the next year, but it has been as late as March before the numbers are frozen. The amount actually allocated is called the “internal” budget. It differs from the official one if, for example, the DG decides to hold back a “reserve”, or if a Sector claims it has requirements way beyond the proposed allocation, or if the programme of CERN has changed. Sometimes an initial allocation of 90% or 95% of the official figure is made in December, but experience shows that if this happens, we are unlikely to get all of it back at a later date.

PS Days, January 2001 TEEP B.W.Allardyce In September/October, a meeting is held between FI (A.Naudi) and each Division (in our case the DPO, but in some Divisions it is the DL). This is the TEEP meeting (transfers and expenses in excess of provisions) where the current status of payments and commitments is looked at. The aim is to ensure that each Division will reach the end of the year having made payments exactly equal to its allocation, whilst keeping commitments within the allowed margin. We are allowed to commit 10% above our exploitation budget, but only as much as our projects budget, although it is the global Divisional figure that FI really cares about. If there are problems, it is at this meeting that a solution can be found. We have on occasions lent money to LHC and recuperated it the next year because we were clearly not going to spend it all (but that was in the days when we had more money). It is also here that budgets are formally adjusted, such as for AD, when teams change Divisions, etc. FI also uses this meeting to discuss our part of the text of the TEEP document to FC in December, where any differences in spending for the current year (both on materials and on salaries), compared to what was said in the budget document approved a year earlier, have to be explained to FC.

PS Days, January 2001 Payments and Commitments B.W.Allardyce Towards the end of the year, depending on how fast the budget is committed, we may reach a situation where FI stops us because we have exceeded our commitment allocation. In 2000, this happened in December, although we in fact went over the top already in early November. At that point, the DPO has to find commitments of large amounts (e.g. orders above 50 kCHF) which will not be delivered until next year, so that the order can be considered as being made on next year’s budget (thereby already using up part of it). In this way we can usually liberate enough money to survive till the end of the year without having to stop small orders or stores purchases, etc. In PS, payments usually lag 3 or 4 months behind commitments, so there is never a situation during the year where our payments get close to our authorized budget. But in January, for the book-closing of the end of the previous year, FI makes what are called “provisions” to bring the payments up to exactly the correct figure. The provisions to be made are chosen by the DPO in agreement with FI. These provisions count as payments, but represent in fact money in the bank waiting until the next year when a bill for a particular item arrives and has to be paid (with last year’s money).

PS Days, January 2001 Exploitation 2001 B.W.Allardyce 2000 allocation: = MCHF 2001 calculation in MCHF for leptons for LHC-PS for ISOLDE for AD exploitation for ST for gas distribution in expt. areas as 3% DG reserve decided 22/1/01, maybe even more = MCHF or even less The situation looks to be difficult for Includes zero for leptons, zero for LIL operation, only 50% of the 2000 budget for ions (FIP) in 2001

PS Days, January 2001 Projects 2001 B.W.Allardyce NUFACT = MCHF CLIC = MCHF (including for CTF2 exploitation) ISOLDE Consolidation = MCHF FPP Consolidation = MCHF Cabling renovation = MCHF

PS Days, January 2001 Needs negotiating in 2001 B.W.Allardyce MCHF for LIL operation in 2001 Continuation of LHC-PS project Annual operating budget for RFQD of approx 80 kCHF Operation and maintenance of RFQD REX operating budget REX operating manpower