Office of the Chief Financial Officer 2014 Annual Report

Abstract

From a financial perspective, FY2014 was a year of notable challenges and accomplishments for Lawrence Berkeley National Laboratory. The year began with an unprecedented concurrent federal government shutdown and debt ceiling crisis that threatened to suspend the Lab's operations. Working collaboratively with the Lab's research and operations units and DOE, the Lab was able to continue executing its mission during the shutdown, which was resolved by Congress on October 16, 2013. The year ended with another notable outcome, as we closed the books for the last time in our seventeen year old financial system, and prepared to Go Live with a completely re-engineered system on October 1, 2014. This project required close partnership with all of the Lab's scientific and operations divisions, and was successfully accomplished on schedule, on budget and in scope. FY2014 financial results and challenges in many ways mirrored FY2013. Berkeley Lab received a total of $784 million in new FY2014 funding, a one percent decrease from FY2013 funding. Total FY2014 spending was $785 million, a decrease of four percent from FY2013 spending. Given level funding and continued cost pressures, balancing core research and operations needs with strategic investments remained a test. Consistent with FY2013, indirect-funded operations units took cost cuts that largely mitigated cost escalation. However, a modest increase in overhead rates was also necessary to close the gap in the indirect budget. The Office of the Chief Financial Officer (OCFO) played an instrumental role in leading and achieving these notable outcomes. Our primary focus was on executing our financial stewardship responsibilities and delivering our services while implementing the new financial system. We also continued to provide practical and innovative solutions to the Laboratory Community.