1. Proposed Budget for FY10 – FY12 December 10, 2009
VERITAS Operations Review
Proposed Budget for FY10 – FY12 December 10, 2009

2. FY10 – FY12 Proposed Budget Budget Preparation Process
A. Tracking costs/ Comparing Actual vs. Budgeted Costs
B. Historical Cost Analysis/ Estimating Future Costs
C. Preparation of Total Operational Budget
D. Division of Costs Between Funding Agencies
E. Planning to Deal with Cash Flow Problems/ Funding Delays

3. FY10 – FY12 Proposed Budget Tracking Costs
Costs are monitored continuously with monthly reports issued to the Project Office. On a quarterly basis, we compare our actual spending to budgeted costs broken down into major cost categories. A chart similar to the one below is included in each Quarterly Report.

4. Cost Analysis and Projections
FY10 – FY12 Proposed Budget
Cost Analysis and Projections
For analysis, it is helpful to separate the budget costs into the five categories below:
Project Office Staff – Actual salary costs projected
(2) SAO in-kind support – estimates re-evaluated
(3) Subawards – costs re-examined by PIs & Project Office
(4) Other Direct Costs – budget uses historical costs (2008)
(5) Indirect Costs – 2009 overhead rates applied
The Total 3-year Budget which resulted from this process holds cost increases to less than 2% in FY10 and less than 2.5% in FY11 and FY12

5. FY10 – FY12 Proposed Budget Budget Preparation
Comparison of Direct Costs
Personnel – 46% SAO in-kind – 22% Subawards – 18%
Mat & Equip – 9% Travel – 3% Services – 2%
No Contingency Included !

6. FY10 – FY12 Proposed Budget D. Division of Costs Between Agencies
In the past three years, we have used the following allocation
method to equally divide the costs:
Each agency funds two project office positions
SAO is credited with the in-kind support costs
Subawards assigned to the affiliated agency (DOE or NSF)
Other Direct Costs divided between DOE and NSF
Indirect Costs allocated using SAO overhead rates for FY09

7. VERITAS Operational Funds
E. Problem of Variable Funding
Due to a variety of issues, the project has had to deal with cash flow problems each year. When a delay in funding is anticipated, we restrict spending to cover personnel costs and essential procurements only until new funding arrives. Because our personnel costs are about 50% of the project costs, we are able to reduce spending by about half for several months if necessary without disrupting operations.
When new funds become available, the Project Office prioritizes and schedules the work and procurements which have been delayed.
In 2010, we face a gap in funding in late April. We are currently limiting spending to about $50k per month so that our present funds will last until that time. With the DOE grant end date of April 30th, we will need to have a new grant by April 9th (from DOE or NSF) or give out layoff notices.

8. VERITAS Operational Funds
VERITAS Operational Funds Proposed Funding Split Between Three Agencies (FY 2010)