Freedom of Information Act Office
IC Directors' Meeting Highlights
October 13, 2004
|From:||Director, Executive Secretariat|
|Subject:||IC Directors Meeting Highlights—September 23, 2004|
FY 2005 Central Services Funding and FTE Recommendations
As the NIH Steering Committee’s Management and Budget Working Group (MBWG) co-chair, Dr. Katz presented its FY 2005 Central Services Activities Budget recommendations. He pointed out that several transfers of function scheduled for 2005 complicated the process, as well as did the emphasis on FTE controls. These transfers include:
- Extramural Activities Support Services Most Efficient Organization (EASS MEO),
- Real Property MEO,
- Equal Opportunity (EO)Administrative Restructuring Advisory Committee (ARAC) Centralization,
- Centralization of Regional Facilities in the Office of Research Facilities (ORF),
- Information Technology (IT) Centralizations, and
- Transfer of the Parklawn Library to the Office of Research Services.
After emphasizing that the MBWG role is to integrate other Steering Committee WGs’ priorities, he reviewed MBWG activities including issuance of its Central Services Activities Budget Guidance, its evaluation process of the other Steering Committee WG presentations and requests, the appeal process, and the Steering Committee endorsement. He then summarized the final MBWG funding recommendations:
- 2.8 percent assessment increase for the Management Fund and Service Supply Fund;
- acceptance of the recommendations of the various Working Groups for Service Supply Fund Fee-for-Service overall increases of 4.4 percent where the requests were demand driven;
- below-the-line requests that bring the grand total recommended Central Activities Funding increase to 3.9 percent; and
- that, consistent with current policy, FTE savings related to restructurings (134 for the Real Property MEO assuming an October 1 implementation date) revert to the Director, NIH, and that all new recommended FTEs for Central Service activities be absorbed within the unfunded FTEs currently allocated to the OD/ORF/ORS.
After Dr. Katz listed lessons learned, he closed his presentation with the following next steps:
- Dr. Zerhouni will provide FY 2005 funding allowances to Central Service directors,
- OD undertakes reallocation of internal FTEs,
- WGs continue in-depth reviews of selected items, and
- MBWG oversees assessment of mechanisms used to finance Central Services activities.
In open discussion a concern was expressed that ARAC consolidations may increase overall costs and that A-76 activities may contain hidden costs. The group agreed that it is imperative that data be collected to identify the costs related to consolidations. Another discussion topic was the observation that while the process has certainly become more rigorous under the MBWG, the actual costs of the below-the-line items and ongoing A-76 activities are uncertain.
cc: OD Senior Staff