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FY 2000 PDUFA Financial Report: Obligation of User Fee Revenues

Table of Contents

Previous Section: User Fee Revenues

User fee revenues are expended only for costs necessary to support the process for the review of human drug applications, as defined in FDAMA. Allowable and excludable costs for the process for the review of human drug applications are defined in Appendix C. In FY 2000, FDA continued to improve and expedite the activities involved with the process for review of human drug applications, obligating $147,276,000 from user fees.

FOOD AND DRUG ADMINISTRATION
STATEMENT OF USER FEE OBLIGATIONS BY EXPENSE CATEGORY

as of September 30, 1999 and 2000
Expense Category FY 1999 FY 2000
Personnel Compensation and Benefits $75,580,000 $95,145,000
Travel and Transportation $2,923,000 $4,034,000
Rent $5,428,000 $5,643,000
Communications $1,322,000 $1,646,000
Contract Services $25,210,000 $29,031,000
Equipment and Supplies $11,949,000 $11,196,000
Other $103,000 $581,000
TOTAL OBLIGATIONS: $122,515,000 $147,276,000

FDA dedicated 1,277 FTE's (Full Time Equivalents or staff-years) to the review of human drug applications in FY 1992, before PDUFA was enacted. These 1,277 FTE's are sometimes referred to as baseline FTE's. A time reporting study was undertaken in 1993 to determine the percentage of time each division devotes to user fee related activities. This allowed calculation of FTE related costs. The percentages are updated quarterly through additional time surveys, which parallel the method used by independent consultants in FY 1993. The development of these user fee related costs associated with the review of human drug applications is described in Appendix D.

FY 2000, PDUFA fees paid for 1009 more FTE's than were used in 1992 for the process for the review of human drug applications, and 100 more FTE's than were paid from fees the preceding year. FDA's payroll costs paid from user fee funds in FY 2000 totaled $95,145,000-almost 65% of the funds expended. This includes all pay and benefits for the additional FTE's and costs of the FY 2000 payroll increases for the baseline FTE's.

A substantial amount of the remaining funds were spent on information technology (IT). FDA is engaged in an Agency-wide IT program to support the transition from a largely paper-based regulatory submission and review environment to an electronic environment. This effort is called the Electronic Regulatory Submission and Review (ERSR) program. ERSR is comprised of a variety of projects, each of which is designed to satisfy a different part of the overall PDUFA IT goal that:

the agency shall develop and update its information management infrastructure to allow, by FY 2002, the paperless receipt and processing of exemptions for investigational new drugs (IND's) and human drug applications….

The major ERSR project areas are described below.

  • Standards and Guidance. These projects promote consistent exchange of electronic information between the FDA and external constituents. At the completion of FY 2000, several technical standards had been established and supporting guidance documents were provided to external constituents.

     

  • Capability to Receive Electronic Submissions. These projects implement procedures and technology to support electronic submissions in lieu of paper. Progress in this area includes the establishment of Electronic Document Rooms that permit the receipt of electronic submissions in physical media format (CD-ROM, magnetic tape, etc.) from industry.

     

  • Electronic Review. These projects enable FDA reviewers and field inspectors to conduct review activities in an electronic environment. Progress in this area includes the implementation of electronic document management systems that facilitate electronic collaboration between review staff and the expansion of existing management information systems that track the status of each review.

     

  • Updated Infrastructure - These projects include the implementation of underlying technologies required to support the transition to a paperless review environment. Progress in this area included installing new computer hardware and software, increasing network capacity, updating the skills of technical support staff, and training for reviewers.

The total expenditure of $147,276,000 in FY 2000 is an increase of about 20% over FY 1999 amounts spent from fee revenue. This spending amount is consistent with the latest PDUFA II Five-Year Plan, and is in excess of the revenues FDA collected in FY 2000. Spending at this level was possible because FDA spent substantially less than it collected in several earlier years, and the amounts carried over are available to FDA for spending on the drug review process in subsequent years, as explained in the next section of this report.

Next Section: Carryover Balances