OCFO

Operating Plans

What is this session about?

Operating Plan (Op Plan) formulation,
review and approval processes
Op Plan guidance
Budgeting for Budget Line Items (BLIs)
used by posts
Hand-on practice using op plan software

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Operating Plans

Overview
Why prepare a plan?
Provides a framework to support Post
responsibilities and expectations

What is an Op Plan at Peace Corps?

Summary of what Post plans to accomplish with
supporting details
Strategy to allocate limited resources to meet its
goals
Road map for operating activity and measuring
progress along the way

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Operating Plans

Formulation, Review & Approval Process

Key Dates
July 1, 2010 Operating plan software and guidance (CFO and
Regional) is distributed to Post
August 2, 2010 Post Op Plans submitted to Regional CAOs
and Budget Analyst
September 1-3, 2010 Post Op Plans and consolidated
Regional budget reviewed with Budget Officer
September 17, 2010 Region and consolidated budgets are
submitted to the Director
September 30, 2010 Director approval of Op Plans (may be
conditional)

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Operating Plans

Regional Guidance
Issued by Regional Director to provide posts with Region-specific
budgetary guidance
Examples of items that could appear in Regional Guidance include:
Procedural Guidance, such as submission requirements, due dates,
exchange rate information, etc.
Budgetary Guidance
Marks = budget ceiling
Budgeted Trainee Input )BTI) number of new trainees that will provided to
each post
Policies with regard to the submission of Unfunded Requests (UFRs) to ask
for budget authority for new or one time activities, additional TI or items that
cannot be accommodated within an issued mark
Maximum IST days (e.g. 15 days of IST per two year Volunteer cycle)
Maximum PST weeks
Items that will be budgeted by HQ and which should not be budgeted by
posts

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Operating Plans

Regions % of Budget by Purpose Code

Purpose Code
10 Headquarters Program Support

EMA IAP

Africa Avg.

3.8%

4.3%

3.5%

3.9%

11 Overseas Program Support

46.9%

44.9%

47.1%

46.3%

12 Direct Volunteer Support

18.3%

20.2%

15.7%

18.1%

2.1%

2.3%

2.0%

2.1%

15.9%

15.0%

14.4%

15.1%

21 Volunteer Medical Support

9.3%

9.3%

11.2%

9.9%

25 Safety and Security

3.7%

4.0%

6.1%

4.6%

100.0%

100.0%

100.0%

100.0%

14 In-Service Training
16 Pre-Service Training

Total

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Operating Plans

Op Plan Software Review

Software includes four components in one
linked workbook:
Country Information Page
V-Year Chart
Budget Summary
Detailed Worksheets

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Operating Plans

Country Information Page

Enter location code, currency, exchange rate
and local per diem rate
Currency Fluctuations
Rate will be specified in Regional guidance
Same rate is used for budget, obligation, invoice
and payment
For local currency (LC) transactions, the Agencys
foreign currency stabilization fund automatically
pays or takes the difference when transaction rate
differs from budgeted rate

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Operating Plans

Budget Summary Page

Summarizes budget by quarter for all
purpose codes and BLIs
Also summarizes program factors

No data can be entered on this worksheet

Software does not include all BLIs
Some posts may have separate op plan
software for other sponsor codes

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Operating Plans

What is NOT included in Post Op Plans?

Op Plan software does not include BLIs for post
expenses that are:
Budgeted and expended by HQ and/or
Budgeted at HQ and transferred to Post during the year

Expenses budgeted and expended at HQ:

Salaries and benefits for USDH, as well as their assignment travel

Expenses budgeted at HQ and transferred to post:

Unforeseen expenses such as Volunteer and staff medevacs and Volunteer
Emergency Leave
Conference Travel
Severance payments for FSNs and PSCs
Volunteer Leave Allowances (subject to change)
Home Leave Travel

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Operating Plans

BLI 11-11120: FSN Salaries and Benefits

Cycle = October
Calculate salaries based upon the approved Local
Compensation Plan (LCP)
DO NOT budget for anticipated LCP increases or for new staff not approved by the
Region

Budget in the currency in which your LCP is denominated

Enter correct date for step increases so that FTE
calculations are correctly indicated
Enter benefits either as a percentage of salary or by listing
individual benefits, or both, as appropriate

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Operating Plans

BLI 11-12140: Dependent Education

Cycle = January
Budget only for known staff with known
dependents
No anticipating!

Also used for dependent education travel for

college age students

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Operating Plans

BLI 21020: Staff In-Country Travel

Cycle = November
Use average costs from most recent mid-year review
exercise to calculate costs
Typically specified as quarterly amounts per travel
Budget in the correct purpose code:
CD and AO travel will usually be PC-11
PCMO travel will usually be PC-21
Safety & Security Office will usually be PC-25

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Operating Plans

BLI 23210 Property Rental

Used for budgeting office and residential leases
Cycle = according to each lease agreement
Budget entire lease amount in the quarter in which the
lease will be signed
Not used for Volunteer rent which is factored in Living
Allowances
If medical unit is in the same building as the main office,
budget the entire lease under PC-11
Do not budget for projected cost increases

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Operating Plans

BLI 25260 and 25610

Personal Services Contracts (PSCs)
Cycle = 12 month contract cycle for each long-term, fulltime PSC (may vary among PSCs)
Budget the entire amount of the contract in the quarter in
which the contract will be executed(not necessarily the
same quarter as when the PSCs work begins)
Budget in the currency in which your LCP is denominated
Do not budget for step or grade increases or for
unapproved LCP increases
Use position titles and naming conventions as per the op
plan manual and/or the Regional guidance

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Operating Plans

Purpose Code 12 Detail Worksheets

Two PC 12 detail worksheets:
V-Year Chart
Budget Worksheet

PC 12 budget is derived from cost factors and program

factors
Cost factors: cost per unit
Program factors: Volume of program activity (Ts, Vs, COSs, ETs, EXTs)

Cycles are locked

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Operating Plans

V-Year Chart
First part of op plan that should be completed!
Three year V-Year chart
Important to complete the entries for the entire V-Year
chart because:
Program activity for the current year has V-Year implications for the
budget year
December cycle means that budget will cross fiscal years

Budget amounts on summary worksheet are calculated

based upon data entered on the V-Year chart

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Operating Plans

BLI 12-12210: Volunteer Living Allowance

Cycle = December
Program Factor = Volunteer Months
Living Allowance includes rent and utilities
First, do the V-Year chart, then enter the cost per
Volunteer Month
Use Living Allowance amounts approved at most recent
mid-year exercise
Do not budget for projected increases

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Operating Plans

BLI 12-12230: Settling-In Allowance

Cycle = December
Program Factor = Ts to Vs
Enter the allowance per PCV
Looks at the number of Ts to Vs or the number of Trainees
that become Volunteers

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Operating Plans

BLI 12-21050: Assignment/Return Travel

ETs = October cycle; COS = December cycle
Program Factor = Number of Volunteer extension trips and
Volunteer extendee trips
Used to budget for Volunteer COS and ET
Use the average one-way cost to the US based upon the
most recent mid-year exercise
ET travel may be more expensive that COS travel

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Operating Plans

BLI 12-12060: Home Leave/Extendee Travel

Used to budget for extension as shown on the V-Year chart

Cycle = December
Program Factor = Number of Extendees
Home Leave
Average round trip airfare plus $360 ($12 per day x 30 days)

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Operating Plans

PC 12:Supplies (26010) and

Equipment (31010)
Use: technical books, bikes and bike parts
Water filters should be budgeted under PC-21

Program Factor = V-years

Enter a cost factor
Software will spread budget across the for quarters

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Operating Plans

PC-16 - PSTs
Used to budget for all costs for training Trainees at post up
until the time they swear in as Volunteers
One worksheet per PST event (Trainee Input)
Your Training Manager should develop this budget and
justify it to you
PST General is already listed and is used for PST
expenses that pertain to all PST events, such as property
rental, PSCs for full-time contractors that dedicated to PST
events, communications and utilities
Walk around Allowance enter the number of trainees, the
amount of the monthly allowance and the number of weeks
of the PST event

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Operating Plans

PC-21 Medical Support

One worksheet for the entire Purpose Code

Used for overseas costs associated with the medical care of Volunteers,
including:
Medical staff, such as PCMOs
Medical supplies
Distinct medical unit costs

Medical care and services

Used when care is delivered by providers other than the PCMOs, such as labs,
specialists and dentists
Develop a cost factor per V-Year for miscellaneous care costs such as x-rays,
dentists and labs

Medical PSCs
MedicalSupplies
Develop a cost factor per V-Year and then either distribute it across all four quarters
or budget for all of it in Quarter 1

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Operating Plans

PC-25 Safety & Security

Used to budget for:
Local hire staff related to safety and security
Guard services, including guard service contracts provided by the
Embassy
Volunteer and staff cell phones
Physical property securityupgrades

Transfers from Office of Safety and Security for expenses

associated with USDH PCSSOs