6 FAH-5 H-480
Department of State Service Provider Specific Terms,
Requirements, and Processes
(CT:ICASS-91; 02-28-2019)
(Office of Origin: CGFS/ICASS)
6 FAH-5 H-481 ICASS Targets
(CT:ICASS-5; 07-21-2006)
(Applies to participating ICASS agencies)
Various offices within the Department of State fund State's
share of the ICASS invoice, therefore separate targets are established for
traditional bureau (regional bureau) funds, lease/living quarters allowance
(LQA) funds, and nonresidential local guard program funds.
6 FAH-5 H-481.1 Regional Bureau
Target
(CT:ICASS-5; 07-21-2006)
(Applies to participating ICASS agencies)
a. The regional bureau ICASS target is the funding
level approved for all post-funded, shared administrative operations with the
exception of lease/living quarters allowance (LQA) and local guard
program-nonresidential (LGP-NR) costs. Costs funded in the regional bureau
target would include:
(1) Support costs of ICASS direct-hire (DH) American
personnel (excluding American salary, post assignment travel, lease and
residential local guard program costs);
(2) All post-funded costs (salary, benefits, severance
pay, awards, supplies, etc.), associated with locally employed ICASS staff;
(3) Building operating expenses (excluding lease
costs) for nonresidential properties occupied by ICASS personnel;
(4) Administrative supplies (if not direct charged);
(5) Training and travel of ICASS personnel for shared
administrative support purposes;
(6) Medical costs including medical contracts,
supplies and equipment;
(7) Motorpool costs;
(8) Furniture and furnishings of ICASS offices and
residences; and
(9) Furniture pools if posts ICASS council elects to
fund the costs through ICASS.
b. Based on their knowledge of post operations and
needs, the regional bureaus develop their bureau target-level recommendations
and present these recommendations to the ICASS budget committee for approval.
In developing the target levels, bureaus consider such things as anticipated
inflation rates, projected wage/benefit increases, anticipated changes in
staffing levels, changes in administrative support requirements at post, and
infrastructure needs. Communication between the post and the regional bureau
is essential to ensure that posts requirements are considered when target
recommendations are developed.
c. The regional bureaus, through their Diplomatic and
Consular Programs (D&CP) Appropriation, fund the Department of States
share of the regional bureau ICASS invoice. The regional bureau target level
recommendations therefore must be within the anticipated affordability of the
regional bureau. It is possible that bureau target recommendations could be
less than post's request, should anticipated requirements exceed the bureaus
total anticipated affordability level.
6 FAH-5 H-481.2 Local Guard
Program-Nonresidential (LGP-NR) Target
(CT:ICASS-58; 03-06-2017)
(Applies to participating ICASS agencies)
a. The local guard program nonresidential (LGP-NR)
ICASS target is the funding level approved for post for local guard costs
(salary, benefits, contract, supplies, etc.) at shared nonresidential ICASS
facilities abroad. LGP-NR costs for a property that is solely occupied by
another agency or agencies, other than ICASS, would be funded outside of ICASS.
b. The Bureau of Diplomatic Securitys Office of
Physical Security Programs (DS/C/PSP/PSD) develops ICASS LGP-NR target
recommendations based on its knowledge of LGP requirements and information from
post. These target recommendations are submitted to the ICASS budget committee
for review and approval.
6 FAH-5 H-481.3 Operating Leases
(OLs) and Living Quarters Allowances (LQAs) Target
(CT:ICASS-58; 03-06-2017)
(Applies to participating ICASS agencies)
a. Initial targets for ICASS operating leases (OLs) and
living quarters allowances (LQAs) are established. Posts budget for the
full-year, anticipated requirements of the LQA for ICASS direct-hire (DH)
American positions, and the OL costs of:
(1) Residential property that is occupied by ICASS
direct-hire American personnel;
(2) Nonresidential property that is occupied either
solely or jointly by ICASS personnel/operations;
(3) Shared temporary-duty (TDY) residential quarters
(net costs); and
(4) Residential leases which have been vacant for more
than 90 days where no occupant has been identified.
b. Capital lease (CL) costs for State property, both
residential and nonresidential, are funded by the Bureau of Overseas Buildings
Operations (OBO) regardless of occupant.
6 FAH-5 H-482 Post-Funded costs
6 FAH-5 H-482.1 Post Budgets
(CT:ICASS-76; 06-28-2018)
(Applies to participating ICASS agencies)
Posts initial requirements budget (pre-baseline) should
include all anticipated ICASS operating costs (personnel and other costs) for
the fiscal year including other specific costs enumerated in this subchapter,
as appropriate.
6 FAH-5 H-482.1-1 Air Force/Army
Post Office (APO)/Fleet Post Office (FPO) Costs
(CT:ICASS-76; 06-28-2018)
(Applies to participating ICASS agencies)
a. Description: Air Force/Army
Post Office (APO)/Fleet Post Office (FPO) is a Department of Defense (DOD)
provided service outside of the ICASS system. However, mission-provided
support costs usually specified in a memorandum of agreement or interagency
support agreement with military postal authorities, should be distributed to
the serviced agencies through ICASS. These non-DOD funded costs could include
space occupied in a shared ICASS nonresidential office, office equipment, and
local-hire mailroom personnel.
b. Allocation of costs to cost centers:
In order to spread these costs to all agencies at post who benefit from the
APO/FPO, the non-DOD ICASS costs of this operation might be charged to the mail
and messenger services cost center at a Standard post or the information
management cost center at a Lite post, contingent upon approval of the post
ICASS council.
6 FAH-5 H-482.2 Congressional
Delegation (CODEL) and VIP Visits
(CT:ICASS-76; 06-28-2018)
(Applies to participating ICASS agencies)
See 6 FAH-5 H-364,
VIP Visits, for updated guidance.
6 FAH-5 H-482.3 Consulate and
Multiple Mission Costs
(CT:ICASS-76; 06-28-2018)
(Applies to participating ICASS agencies)
See 6 FAH-5
H-314.7, Location Budgeting, for updated guidance.
6 FAH-5 H-482.4 Depreciation and
Capitalization
(CT:ICASS-76; 06-28-2018)
(Applies to participating ICASS agencies)
a. Description: No-year
working capital funds (WCFs), including ICASS, must fund the depreciation cost
of the funds capital assets. The capitalized threshold in the Department of
State for all general assets and property is $25,000 with the exception of
vehicles which are capitalized regardless of cost. There are additional
capitalized thresholds of $100,000 on bulk buys, $500,000 for commercial
off-the-shelf software purchases, and $500,000 for direct costs of internally
developed software.
b. Depreciation is a nonexpenditure charge (funds are
not obligated) that allocates an assets cost over its useful life. By
budgeting for depreciation costs, the post is ensuring that funds will be
available to replace assets as needed. The burden of replacing the asset is
likewise spread by allocating the cost of personal property over its useful
life.
c. Capitalization is the one-time cost of the total
depreciation amount of an asset whose annual depreciation costs have been
unfunded in prior years (due to constrained ICASS funding, monies have not been
available to fund the prior-year depreciation costs of ICASS capitalized
assets). The costs of replacing these assets, which may now be fully
depreciated, must be budgeted. This one-time cost to capture the prior years
depreciation cost is termed capitalization.
d. The depreciation amount is included in the ICASS
initial requirements budget under budget sub-object code (SOC) 3195 -
depreciation. This entry has only one purpose which is to include the
depreciation cost as part of the requirements reported to all agencies, even if
budgetary resources are not available to fund the full amount. Funds are not
obligated using this sub-object code. If funds are available within posts
ICASS target for depreciation/capitalization, those funds would remain
unobligated and will be carried forward until utilized for the capital asset
procurement. The capitalization amount is similarly included in the ICASS
initial requirements budget under SOC 3197 when the depreciation amounts are
included in the budget. This sub-object code is used only for budgeting for
capitalization of property and is not used for obligations.
e. The use of the unique 3100 series sub-object codes
identified at the time funds are obligated (when the asset is procured)
distinguishes capital and non-capital assets. Depreciation/capitalization
funds can be used to procure ICASS vehicles.
f. Allocation of costs to cost centers: Depreciation and
capitalization costs would be allocated to the cost centers supported by the
capitalized equipment. For example, the ICASS vehicle fleet provides support
to many cost centers such as the building operations services, motor pool
services, mail and messenger services, travel services, and others. The costs
of depreciation and capitalization of vehicles and other equipment should be
allocated among all of these cost centers according to the usage of this equipment
at post.
6 FAH-5 H-482.5 Local Currency
Exchange Rate Gains and Losses
(CT:ICASS-76; 06-28-2018)
(Applies to participating ICASS agencies)
a. Description: The ICASS
budget is prepared at the local currency rate of exchange as of the first day of
the fiscal year (October 1). There is no adjustment to the budget for any
changes in the local currency exchange rate that occurs during the fiscal year
and all agencies are billed for ICASS services based on the October 1st rate of
exchange. ICASS operating allowance adjustments that occur during the fiscal
year for exchange rate changes do not affect a posts target budget.
b. Allocation of costs to cost centers:
As exchange rate gains and losses that occur during the fiscal year are not
budgeted, the allocation of costs to cost centers is not applicable.
6 FAH-5 H-482.6 National Security
Decision Directive (NSDD-38) Authority Position Changes
(CT:ICASS-76; 06-28-2018)
(Applies to participating ICASS agencies)
See 6 FAH-5
H-351.2, NSDD-38 Process, for updated guidance.
6 FAH-5 H-482.7 Regional Costs
(CT:ICASS-76; 06-28-2018)
(Applies to participating ICASS agencies)
a. Description: Administrative
support costs for regional operations are currently included in ICASS using one
of the following cost-sharing methods, as determined by the magnitude of the
regional support provided:
(1) Large regional hubs (i.e.,
financial service centers): Regional hubs provide little administrative
support to their host post in relation to the support provided to the regional
posts that they service. In general, these large regional hubs are established
with ICASS working group (IWG) approval, and are considered a separate ICASS
post for budgeting/financial purposes. Regional hubs receive an ICASS target,
prepare budgets, and receive ICASS funds separate from the host post. All
personnel and other costs of the regional hub are included in that ICASS budget
and costs are allocated to the appropriate cost center (the number of cost
centers may be reduced depending on the support provided by the regional hub).
Workload is entered for all agencies located at any post receiving service from
that regional hub. Agencies receiving these services may not be represented at
the regional hub; therefore, a Washington ICASS council is established to
review services provided by the operation;
(2) Regional U.S. personnel:
Posts which host one or more regional administrative direct-hire (DH) position
(i.e., regional medical officer, regional financial management officer (FMO),
regional human resources officer (HRO), regional information management
specialist (IMS)) or that provide a small regional service to other posts in
the area (i.e., shipping receiving point for inland transportation) may direct
charge serviced posts for any identifiable cost incurred on their behalf.
Direct costs of regional ICASS personnel (salary, benefits, utilities, lease,
furniture, etc.), however, cannot be direct charged and these costs are funded
by the home post with costs shared by agencies at that post (workload counts
reflect only host-country counts). Any increased personnel-related costs of
the host post, required to support the regional activity, should be included in
the host posts budget and funds requested through the budget process.
b. Allocation of costs to cost centers:
Regional costs are allocated to the cost center(s) services provided at the
regional hub or host post. Regional hub costs are shared based on agencies
workload, of cost center services provided for all posts and all agencies
supported. Regional direct-hire (DH) American personnel costs are shared based
on the workload of only those agencies receiving ICASS services at the host
post.
6 FAH-5 H-482.8 Residential
Furniture Pools
(CT:ICASS-76; 06-28-2018)
(Applies to participating ICASS agencies)
See 6
FAH-5 H-500, Housing Pool Management, for updated guidance.
6 FAH-5 H-482.9 Non-ICASS Furniture
Pools
(CT:ICASS-76; 06-28-2018)
(Applies to participating ICASS agencies)
See 6
FAH-5 H-500, Housing Pool Management, for updated guidance.
6 FAH-5 H-482.10 Separation Pay
(Post Funded)
(CT:ICASS-76; 06-28-2018)
(Applies to participating ICASS agencies)
a. Description: The
anticipated cost of severance pay for ICASS locally employed staff (LE staff)
employees, as authorized by posts local compensation plan, if not funded by
the Department of States central FSN Separation Liability Fund, should be
included in posts ICASS budget.
b. Allocation of costs to cost centers:
Severance costs are budgeted with the salary and benefit costs of the employee
and would follow the cost allocation of that employee. Agencies that receive
the cost center services provided by the severed employee would share the costs
of any severance pay.
6 FAH-5 H-482.11 Tandem Couples
(Where One of the Employees is ICASS)
(CT:ICASS-76; 06-28-2018)
(Applies to participating ICASS agencies)
See 6 FAH-5 H-353,
Tandem & Jointly Assigned Couples, for updated guidance.
6 FAH-5 H-482.12 Temporary-Duty
(TDY) Quarters
(CT:ICASS-76; 06-28-2018)
(Applies to participating ICASS agencies)
a. Description: U.S.
Government-owned/capital lease (GO/CL) and/or Operating lease (OL) housing may
be designated as temporary duty quarters/transient quarters if that property is
excess to posts needs and the posts ICASS council concurs. The use of either
GO/CL and/or OL property as TDY quarters must be authorized by the Bureau of
Overseas Buildings Operations (OBO) as per 15 FAM 249,
Transient or Temporary Duty Housing, with fees established for their use. Net
anticipated operating costs (total funding requirements less anticipated
reimbursements) of the TDY quarters are budgeted and billed in posts ICASS
budget. Based on the fee schedule established, funds collected for the use of
TDY quarters should be deposited as follows:
(1) Fees collected for the GO/CL lease component of
the TDY quarters should be deposited to the 19X0535 account REIM (OBO account);
and
(2) Fees collected for OL rents, BOE, and maintenance costs should be
deposited to 19X4519.1 account 9906 for the ICASS-funded share of that fee.
b. Allocation of costs to cost centers:
The net operating cost of the TDY quarters may be allocated to overhead if all
agencies benefit from the use of the property. Alternately, post may choose to
create a sub-cost center if its use would more fairly allocate TDY quarters
costs to the agencies receiving the benefit of the property.
6 FAH-5 H-482.13 Vacant Operating
Lease (OL)
(CT:ICASS-76; 06-28-2018)
(Applies to participating ICASS agencies)
a. Description: The housing
market in some posts necessitates retaining vacant U.S. Government-Operating
lease (OL) residences which appear to be excess to posts current needs. If
post management, with ICASS council concurrence, determines that a State OL
residence, vacant in excess of 90 days (with no occupant identified) should be
retained, the lease and operating costs of that property must be funded through
ICASS. Prior approval must be obtained from the Office of Overseas Building
Operations (see 15
FAM 164 paragraph b and 15 FAM 313.5).
b. Allocation of costs to cost centers:
The operating costs of vacant (where no occupant has been identified) property
may be allocated to the overhead cost center with the concurrence of posts
ICASS council.
6 FAH-5 H-482.14 Value-Added Tax
(VAT)
(CT:ICASS-76; 06-28-2018)
(Applies to participating ICASS agencies)
a. Description: In many
countries a value-added tax (VAT) is charged by the host government for the
purchase of goods or services. In some countries the United States is exempt
from this tax (usually based on reciprocity) and the VAT is refunded after the
appropriate request for refund (with all attendant support) is made to the host
government. Depending on the country, the VAT refund can range from 100% to
substantially less than that, and can take from 2 months to over a year to
collect. VAT, where applicable, is separately obligated on the obligation
document. A VAT refund is applied against the original obligations as an
expenditure refund, which reduces the total obligation. Fully refunded VAT
reduces the obligation to that required only for the goods or services. If VAT
is refunded after the close of the fiscal year, those funds should be credited
to the year in which the VAT was incurred and the obligation would be reduced.
Because of the no-year nature of ICASS funds, those deobligated funds will be
returned to posts current year ICASS operating allowance through the
carryover/recovery process. If not fully refunded, the remaining VAT in the
obligation becomes a part of the cost of the goods or services. Posts should
include in their ICASS budget, the net anticipated costs of VAT (total VAT less
anticipated refunds) for ICASS goods and services, in the coming fiscal year.
b. Allocation of costs to cost centers:
The net anticipated costs of the VAT should be budgeted with the costs of the
goods and services to be procured and would follow the cost center allocation
of those goods and services.
6 FAH-5 H-483 through h-489 unassigned