RPM | REQUIREMENTS AND POLICIES MANUAL

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    Title:

    General and Administrative (G&A) Expenses

    Publication date:

    5/26/2023

    Effective date:

    6/1/2023

    BRIEF

    Policy Summary

    This policy provides guidance for the accumulation and allocation of General and Administrative (G&A) expenses to final cost objectives at Berkeley Lab.

    Who Should Read This Policy

    All Berkeley Lab employees with financial responsibilities.

    To Read the Full Policy, Go To:

    The POLICY tab on this wiki page

    Contact Information

    Indirect Budget Manager, Office of the Chief Financial Officer


    Title:

    General and Administrative (G&A) Expenses

    Publication date:

    5/26/2023

    Effective date:

    6/1/2023

    POLICY

    A. Purpose

    This policy provides guidance for the accumulation and allocation of General and Administrative (G&A) expenses to final cost objectives, in accordance with Cost Accounting Standards (CAS) and the terms of Contract 31.

    B. Persons Affected

    All Lawrence Berkeley National Laboratory (Berkeley Lab) employees with financial responsibilities.

    C. Exceptions

    None

    D. Policy Statement

    1. General

      General and Administrative (G&A) expenses represent costs of the management and administration of Berkeley Lab as a whole. G&A expenses will be:

      • Appropriately budgeted and accounted for on a consistent basis.
      • Accumulated in a separate G&A cost pool.
      • Allocated in a practical and equitable manner in reasonable proportion to the beneficial or causal relationship of the costs to final cost objectives.

           2. Cost Pool

      1. The Budget Office will identify G&A cost elements that represent the cost of the management and administration of Berkeley Lab as a whole and group those cost elements in a separate G&A cost pool. Examples of the functions in G&A include the Lab Directorate, Human Resources, Office of the Chief Financial Officer activities, and Information Technology.
      2. Cost elements may include labor and other operating expenses associated with the above functions.
      3. The G&A pool shall not include research and development (R&D) activities.
      4. The cost pool shall not include expenses which are unallowable per the Federal Acquisition Regulations (FAR) or the terms of Contract 31.
      5. Capital equipment cannot be purchased with G&A funds. 

    3. Distribution Base

      1. The G&A expense pool for a cost-accounting period is allocated to final cost objectives of that cost-accounting period by means of a value-added cost input base.
      2. The following project types are excluded from the distribution base for G&A expenses:
        1. Conferences
        2. Fellowship and career-development Strategic Partnership Projects (SPP) award projects and work-study students
        3. Contract Supported Research (CSR), Gift, and Royalty
        4. Multiple location assignments (MLAs), inter-jurisdictional employee exchanges (IJEs), intergovernmental personnel appointments (IPAs), and Department of Energy (DOE) detailee projects
      3. All exclusions are detailed in the Lab’s annual Cost Accounting Standards (CAS) Disclosure Statement. 

    4. Rate Execution and Monitoring

      1. G&A expenses are allocated using pre-established rates. Rates are based on forecasted costs for the applicable fiscal year.
      2. Preliminary G&A rates are developed on a break-even basis, with the objective of establishing a rate to recover the exact total of costs in the cost pool at fiscal year-end. The pre-established rates are monitored throughout the fiscal year. If a material variance is anticipated, the pre-established rate will be revised to ensure the variance is reallocated to the original cost objectives in the proportion it was originally recovered. Revised rates are retroactive to the beginning of the fiscal year.
      3. Establishment of G&A rates, forecasts, and revisions of predetermined rates for the applicable cost accounting period(s) are prepared by appropriate Budget Office Staff.

    E. Roles and Responsibilities

    Managers, supervisors, and employees have the responsibility to adhere to the provisions of this policy.

    Role

    Responsibility

    Indirect Budget Group
    • Leads the formulation and coordination of the G&A expense pool and allocation base.
    • Executes the G&A expense-rate forecasts, establishes the predetermined rate for the applicable cost accounting period(s).
    • Prepares and analyzes monthly indirect cost pool collection projections.
    • Coordinates and executes approved revisions to the pre-established budget and rate.
    • Submits the forward pricing rates to the appropriate DOE office for approval.
    • Identifies cost accounting practice changes, makes appropriate Cost Accounting Standards Board (CASB) Disclosure Statement revisions, and submits changes to the appropriate DOE office for approval.

    Chief Financial Officer
    • Recommends G&A pool and rate changes when warranted to support achievement of institutional priorities and objectives.
    • Communicates the approved G&A budget and rate.

    Lab Director
    • Approves G&A rates to support achievement of institutional priorities and objectives.

    Deputy Director for Operations
    • With guidance from the Director or designee and input from the CFO, approves the G&A budget in alignment with institutional priorities and objectives.

    Division Leadership
    • Executes to its budgeted costs, monitoring costs to budget.

    F. Definitions/Acronyms

    Term

    Definition

    Allocate

    To assign an item of cost, or a group of items of cost, to one or more cost objectives. This term includes both direct assignment of cost and the reassignment of a share from an indirect cost pool.

    Capital Equipment

    Movable personal property with an anticipated service life of two years or more and a cost of $500,000 or more, which substantially retains its original characteristics. Capital equipment does not include application software, maintenance, repair, warranties, real property improvements, or related personal property.
    Contract 31 “Contract 31” refers to Contract No. DE-AC02-05CH11231, the contract between the U.S. Department of Energy and the University of California (UC) describing the terms for UC to manage Berkeley Lab. The contract includes a statement of work (SOW) for the science missions, and details the requirements for managing the operations and business of Berkeley Lab.

    Cost Input

    The cost, except G&A expenses, that for program costing purposes is allocable to the production of goods and services during a cost-accounting period.

    Cost Objective

    A function, organizational subdivision, program, or other work unit for which cost data are desired and for which provision is made to accumulate and measure the cost of processes, products, jobs, projects, etc.
    Federal Acquisition Regulation (FAR) The primary regulation for use by all federal executive agencies in their acquisition of supplies and services with appropriated funds.

    Final Cost Objective

    A cost objective that has allocated or assigned to it both direct and indirect costs and is one of the final cost accumulation points. Examples of final cost objectives are DOE or other sponsor-funded projects contracts and grants.

    General and Administrative (G&A)

    Any management, financial, and other expense incurred by or allocated to the Laboratory that is for the general management and administration of the Laboratory as a whole. G&A expense does not include management expenses whose beneficial or causal relationship to cost objectives can be more directly measured by a base other than the established value-added cost input base.
    indirect Cost Any cost identified with two or more joint final cost objectives that cannot be identified specifically with a particular activity or project.
    Indirect Cost Pool A grouping of incurred costs identified with two or more cost objectives, but not identified specifically with any final cost objective.
    Sponsored Research The performance of work for non-DOE entities by DOE/contractor personnel and/or the utilization of DOE facilities that are not directly funded by DOE appropriations.

    Total Cost Input (TCI)

    The cost, except G&A expenses, that for costing purposes represents the total activity of the Laboratory during a cost-accounting period.

    Value-Added Cost Input

    TCI less material and subcontract costs.

    G. Recordkeeping Requirements

    None

    H. Implementing Documents

    None

    I. Contact Information

    Indirect Budget Manager, Office of the Chief Financial Officer

    J. Revision History

    Date

    Revision

    By Whom

    Revision Description

    Section(s) Affected

    Change Type
    5/26/2023 2.1 C. Coyne Periodic review: policy changes for clarification D, E Minor
    3/2/2020 2 L. Freeman Periodic review: no changes All Editorial

    8/08/2018

    2

    L. Freeman

    Updated Section D for clarity; Added detailed R&Rs

    D, E

    Major

    3/25/2013

    1.1

    L. Freeman

    Review completed 12/5/2012, no changes

    Pub & next review dates

    Minor

    1/2/2012

    1

    Lundell

    Reformat for wiki

    All

    Minor

    DOCUMENT INFORMATION

    Title:

    General and Administrative (G&A) Expenses

    Document number

    11.02.002.000

    Revision number

    2.1

    Publication date:

    5/26/2023

    Effective date:

    6/1/2023

    Next review date:

    4/30/2026

    Policy Area:

    Budget

    RPM Section (home)

    Financial Management

    RPM Section (cross-reference)

    N/A

    Functional Division

    OCFO

    Prior reference information (optional)

    RPM Section 11.28

    Source Requirements Documents



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