United States Office of the EPA 190-B-97-001 Environmental Protection Comptroller June 1997 Agency (2731) EPA The Working Capital Fund (WCF) in EPA A Guide to Understanding the WCF and its Benefits ¦ .. ¦: wmmtrw Serving EPA Offices as Customers ------- Table of Contents Page Introduction 2 Purpose 3 What is the WCF and why does EPA want one? 4 The characteristics of a WCF 4 So what is the purpose of the WCF? 5 And what are the benefits? 6 What is a Franchise Fund? 9 What are the basic Agency WCF roles and responsibilities? 10 WCF Board 10 WCF Customer Advisory Group 12 WCF Staff 12 WCF Activity Managers 13 WCF Customers 14 The WCF Business Cycle 16 Appendix Government Management Reform Act, Sec. 403. Franchise Fund Pilot Programs 19 Working Capital Fund authorizing language 21 Operating principles for business-like organizations in the Federal Government 22 WCF Service Agreement process flow charts 24 ------- Introduction A Working Capital Fund (WCF) is a revolving fund authorized by law to finance a cycle of operations. It is a method of funding certain administrative services in a manner different than funding them through annual appropriations. A WCF, therefore, is not an appropriation. Instead, it is a financing mechanism which: ~ generates revenue from the sale of goods or services; ~ recoups the cost of doing business through customer payments; and ~ emphasizes commercial business practices as its method of operation. The Environmental Protection Agency, through authority granted by the U.S. Congress in EPA's Fiscal Year (FY) 1997 Appropriation Act and under the authority of Section 403 of the Government Management Reform Act (GMRA) of 1994, established a WCF in FY 1997. ------- Purpose EPA's Working Capital Fund plays a part in the lives of staff members in every Agency office. It is important that managers at all levels and, indeed, all EPA employees understand the WCF concept and its operations. The purpose of this booklet is to provide employees with a context for just what the WCF is. The booklet describes: ~~~ the characteristics of a WCF; ~ the benefits of operating with a WCF; ~ the basic WCF roles and responsibilities of groups and individuals within EPA; and ~ a brief description of how the WCF works in EPA. 3 ------- What is the WCF and why does EPA want one? The characteristics of a WCF. A WCF is a funding mechanism authorized by law to finance a cycle of operations. The cost of providing services is charged to the users. WCF Activity service providers are dependent upon users, as customers, for their operating funds. In a WCF environment, EPA's offices pay their share of the cost of the common administrative services provided to them through the WCF from their appropriations and associated accounting information in their Service Agreements. As customers consume the WCF services, they are billed by the service providers and payment is made through the Fund. Not all administrative service areas of an agency can function properly within a WCF environment. Typically, the impetus for a service area to be included into a WCF presents itself because: ~~~ a relatively high demand exists for the service within an agency; and ~ the agency's administrative funding cannot afford to pay for the cost of providing the services at the demand level. Activities best suited for inclusion in a WCF normally possess the following additional characteristics as well: ~ require a large amount of financial resources; ~ have a significant impact on the ability of users to accomplish their agency programs and missions; ~ are easily understandable by potential users; 4 ------- ~ possess an easily identifiable customer base; and ~ possess easily identifiable and understandable service units. In other Federal departments and agencies operating WCFs there are traditional WCF Activities, i.e., service areas which are commonly found in WCFs. Examples of these are: ~ computer centers and telecommunications facilities; ~ office moving, renovation services, and other building management functions; ~ library services and desktop publishing services; ~ motor pool operations; ~ printing services and publications inventory and distribution management; ~ procurement and purchasing functions; and ~~~ accounting, financial management, and payroll processing services. These are representative examples of WCF Activity areas; the list is not all inclusive. WCF activities do not have to be limited to general administrative services. Certain programmatic services can also be provided through a WCF when there is a demand for them. These services possess the same characteristics listed above. 5 ------- So what is the purpose of the WCF? ~> In a WCF the business is market-driven. Customers influence the services offered. Because customers will be reluctant to pay for services they feel they do not want or need, service providers must pay attention to customers when planning service offerings and setting priorities for their own expenditure plans. ~ Customers decide which services they need and the volume of each service. Since they have to pay for the services they receive, they scrutinize the cost and volume of services provided. ~ Service providers price their services in terms of unit costs of easily understood service units. Their focus is on cost containment and cost reduction, i.e., holding unit costs constant or reducing the unit costs through introduction of technology or other measures. ~ EPA's WCF operating policies give service providers a three-year monopoly period during which they may firmly establish their business. After this period, customers may go to other service providers after appropriate notification to the WCF Board for its review and consideration of service impacts for decision by the CFO. ~ The WCF also provides the ability to spread out the cost of financing for major capital equipment. Instead of having to secure an appropriation increase for the year in which a capital item must be replaced, the financing is obtained incrementally over the life of the asset. This is done by including a factor for depreciation in the unit cost rate for services. 6 ------- And what are the benefits to EPA? The Chief Financial Officer (CFO) and the Office of the Comptroller initiated the WCF as part of their effort to; ~ be accountable to Agency offices, the Office of Management and Budget, and the Congress; ~ increase the efficiency of the administrative services provided to program offices; and ~~~ increase customer service and responsiveness. The WCF provides the atmosphere for service providers to be partners with customers. The detailed financial reporting to customers provides the basis for satisfying the Agency's financial management and performance measurement responsibilities under the CFO Act and the Government Performance and Results Act. Other direct, targeted benefits are: ~ understanding the full cost of conducting mission-oriented programs; ~ understanding the true cost of providing administrative services; and ~ providing a more stable infrastructure for technology-based services. The WCF provides the ability to associate the cost of WCF services with programmatic missions. Costs of providing the services are charged back to users, and resources with which to pay for WCF services are obtained and funded by the customers' accounts. WCF Activities provide usage reports to customers so they can monitor costs of individual WCF services to the Allowance Holder/Responsibility Center level. 7 ------- The cost elements and actual costs of providing each service are thoroughly documented and analyzed as the basis for establishing unit cost rates. These costs are scrutinized on an ongoing basis, as it is the ability to control them that determines if it is economically viable to continue providing the service. Often the technology providing a particular service becomes quickly outmoded—even before a sufficient level of funds for replacement can be generated through the depreciation factor. The WCF provides the ability to stabilize the technology infrastructure through authority to include an additional factor increasing WCF earnings. An amount not to exceed four percent of the Fund's total annual income may be retained for the acquisition of capital assets or for improvement of the Agency's financial management, ADP, and other support systems. This amount is derived from cost savings achieved by reducing costs and/or selling additional services which reduces the cost per unit. 8 / ------- What is a Franchise Fund? A Franchise Fund is virtually identical to a WCF except that it provides services to other Federal agencies in addition to the one housing the service provider. The National Performance Review, looking for ways to establish a more entrepreneurial government, recommended, and the Government Management Reform Act of 1994 subsequently authorized, piloting a concept of providing common administrative services in a competitive manner. Competition exists in franchising in that a Franchise is not a monopoly. ~ Other Franchises offer the same services and customers have the ability to choose the services that best meet their needs. ~ Customers have the flexibility to take their business to other Franchises after appropriate notification to the WCF Board for review and approval by the CFO. ~ The competitive nature of the Franchise Fund places additional pressure on service providers to offer services which meet customer needs at the best possible price. ~ Performance standards and appropriate measurement systems must be in place to track performance and compare it to the competition. EPA was selected as one of six Federal agencies to pilot the Franchise concept by offering services to others on a cost-reimbursable, financially self-sustaining basis. The authorizing language is included in the appendix to this booklet. 9 ------- What are the Basic Agency WCF Roles and Responsibilities? The Agency's Chief Financial Officer (CFO) oversees development and implementation of the WCF. The CFO is also ultimately responsible for the decisions, financial management, and financial health of the fund. The CFO submits Agency-level WCF budget formulation proposals to the Office of Management and Budget (OMB) and approves WCF Activity budgets. The CFO approves the addition or elimination of WCF Activities to or from the Fund. There are also five groups with specific WCF responsibilities: ~ the WCF Board; <~ the WCF Customer Advisory Group; ~ the WCF Staff; ~ the WCF Activity Managers; and ~ the WCF Customers. The function of each of these groups is briefly described below. WCF Board The WCF Board is an oversight group. It provides policy and planning oversight and advises the CFO regarding the WCF financial position. The Board is chaired by the Deputy CFO. The Chairperson is the Board's deciding official, though normal business operations strive to obtain unanimity among Board members or enable the Board to reach decisions which express the sense of the Board. 10 ------- The Board is also a mechanism to assure customer involvement in \ oversight of the WCF, as its membership is made up of senior managers from customer organizations. The Board provides policy direction to the WCF Manager, who directs the WCF Staff and provides the day-to-day management and coordination of the Fund. The Board also performs a number of review activities. It reviews and recommends: ~ WCF Activity budget requests, i.e., the plans developed by WCF Activity units proposing the Activity's operating plan for the ensuing year or years; ~ WCF Activity cost recovery plans, i.e., the plans illustrating where the WCF Activities expect to obtain the incoming revenue stream; ~ proposed service rates, i.e., the rates per service unit the WCF Activity proposes to charge its customers; and ~ proposals for changing the scope of WCF services, i.e., adding, eliminating, or significantly modifying the services provided under the WCF. WCF Customer Advisory Group This group is comprised of senior resource managers, senior information resource management officials, program managers, and technical staff. It is chaired by a member of the group. The purpose of this group is to provide a customer focus at an operational level. The Customer Advisoiy Group maintains regular dialogue among headquarters offices and the Regions on the status of their efforts relative to WCF operations. 11 ------- WCF Staff The WCF Staff is an organizational component of the Office of the Comptroller (OC) reporting directly to the Comptroller. The WCF Manager directs the Staff which: ~ provides staff support and advice to the WCF Board, performing the business operations necessary to organize and conduct Board meetings; ~~~ serves as liaison between the WCF Board, WCF Activity Managers, and Customers, working with WCF Activity Managers in managing material for presentation at Board meetings, and assisting the Activities as they implement policies and operating procedures recommended by the Board and approved by the CFO. ~ provides the day-to-day management and coordination of the WCF, assuring that the overall financial position of the Fund is sound, and identifies any existing or potential financial problems; ~ directs formulation of the WCF budget, including issuing guidelines to the WCF Activity Managers; and ~ monitors execution of the WCF budget to assure that operating plans are implemented and provides technical accounting guidance and consultation to WCF Activity Managers and others as appropriate; The WCF Manager is the overall manager of the WCF and is not in charge of operations—the individual WCF Activity Managers are responsible for operating and managing the services that their organizations provide. 12 ------- WCF Activity Managers WCF Activity Managers are designated by the appropriate Office Director and manage the organizations which perform some or all of their services through the WCF on a fee-for-service basis. They are the people who have management responsibility for providing services and overseeing service delivery, including: ~ implementing the policy and direction of the CFO, much of which stems from recommendations of the WCF Board; ~ keeping the WCF Board and WCF Manager advised regarding the status of their operations; ~ marketing their services, developing innovative ways of improving the service deliveiy to meet customer needs and budgets, and developing new services to meet increased or changing needs of Agency programs; ~ working with their customers to plan services and service levels well ahead of the fiscal year; ~ preparing budgets upon which accurate and competitive service rates and cost recovery plans can be built; ~ preparing proposals and plans for capital equipment acquisition or replacement, as necessary; and ~ developing and maintaining systems to accurately and timely record and track units of service actually provided to customers. 13 ------- WCF Customers WCF customers are currently EPA offices ~ the consumers of WCF services. In order to help assure that WCF Activities can provide quality services, customers have several responsibilities: ~ determine service requirements - one of the bedrock principles of a WCF is that customers determine their own needs and priorities and influence the program of work of the service provider. Customers are, therefore, responsible for advance planning of specific services needed—including identifying new or changed services—as well as the quantity of each service. ~ plan and budget for WCF resources - customers are responsible for developing their own internal budget and allocating funds for the services provided through the WCF. The development of this budget is done simultaneously with the development of the Agency's annual budget and operating plan. This includes the annual Agency budget submission to OMB and the President's Budget submission to the Congress. ~ originate a WCF Service Agreement (SA) - this document represents the customer agreement to fund ordered WCF services at a specified dollar amount and the service provider agreement to provide those services. Customer development of an SA and WCF Activity acceptance of the SA documents the business relationship between the two parties for a given fiscal year. Because of the importance of the SA process, it is detailed in a series of flow charts in the Appendix to this guide. ~~~ monitor consumption of WCF services - WCF Activities provide their customers with periodic billing statements and workload data. Customers are responsible for reviewing 14 ------- this information to help assure there are no disagreements regarding the level of consumption, exercise proper financial management of their WCF obligations, and help develop their advance planning for the next year. ~ provide feedback on service quality - WCF Activities are committed to meeting service requests timely and with quality. To do this they must know the customers' level of satisfaction with services. Activities will periodically survey for this information, but customers need to provide early identification of service problems to achieve speedy, satisfactory problem resolution. 15 ------- TheWCF Business Cycle The WCF business cycle has five distinct phases. WCF service providers, customers, the WCF Board and others have roles in each of the phases, as described below: ~ planning phase - WCF Activity planning actions involve developing new services or changes to existing services, updating rate structures as necessary, developing operating and capital investment plans. Service providers examine historical data, conduct surveys and consult with customers in determining customer service requirements. ~ Service Agreement phase - in this phase customers receive planning information, such as projections of estimated workload and current service rates, from WCF Activities. They determine the amount of services needed and order their services. ~ service delivery phase - WCF Activities provide the agreed-upon services, track their operating costs, maintain workload data by customer, and prepare billing statements. Customers receive the services. ~ service monitoring and reporting phase - in this phase customers receive and review monthly billing statements, workload data and status of funds reports. Customers provide feedback to the WCF Activities on any billing discrepancies, and adjust service levels, if necessary. WCF Activities may also solicit customer feedback through formal surveys or as part of ongoing dialogue. The Activities seek to address client concerns regarding service quality and capacity. 16 ------- assessment phase - this phase involves review of the entire WCF business cycle by the parties involved. WCF Activity service providers evaluate their performance against WCF performance measures and examine their own competitiveness in terms of market prices and cost containment strategy. They may propose for WCF Board review, termination of non-competitive services or initiatives for establishment of new services. Customers make similar reviews and may identify potential lower cost sources for WCF services. They review their budgets and the service quantity and quality received and make plans for future acquisition of the services. 17 ------- Appendix Government Management Reform Act, Sec. 403 Franchise Fund Pilot Programs Working Capital Fund authorizing language Operating principles for business-like organizations in the Federal Government WCF Service Agreement process flow charts ------- Public Law 103-356; Government Management Reform Act (GMRA) of 1994. SEC. 403. FRANCHISE FUND PILOT PROGRAMS. (a) Establishment - There is authorized to be established on a pilot program basis in each of six executive agencies a franchise fund. The Director of the Office of Management and Budget, after consultation with the chairman and ranking member of the Committees on Appropriations and Governmental Affairs of the Senate, and the Committees on Appropriations and Government Operations of the House of Represent- atives, shall designate the agencies. (b) Uses - Each such fund may provide, consistent with guidelines established by the Director of the OMB, such common administrative support services to the agency and other agencies as the head of such agency, with the concurrence of the Director, determines can be provided more efficiently through such fund than by other means. To provide such services, each fund is authorized to acquire the capital equipment, automated data processing systems, and financial management and management information systems needed. Services shall be provided by such funds on a competitive basis. (c) Funding - (1) There are authorized to be appropriated to the franchise fund of each agency designated under subsection (a) such funds as are necessary to carry out the purpose of the fund, to remain available until expended. To the extent that unexpended balances remain available in other accounts for the purpose to be carried out by the fund, the head of the agency may transfer such balances to the fund. (2) Fees for services shall be established by the head of the agency at a level to cover the total estimated costs of providing such services. Such fees shall be deposited in the agency's fund to remain available until expended, and may be used to carry out the purposes of the fund. 19 ------- (3) Existing inventories, including inventories on order, equipment, and other assets or liabilities pertaining to the purpose of the fund may be transferred to the fund. (d) Report on Pilot Programs - Within 6 months after the end of FY97, the Director of the OMB shall forward a report on the results of the pilot programs to the Committees on Appropriations of the Senate and the House of Representatives, and to the Committee on Government Affairs of the Senate and the Committee on Government Operations of the House. The report shall contain the financial and program performance results of the pilot programs, including recommendations for - (1) the structure of the fund; (2) the competition of the funding mechanism; (3) the capacity of the fund to promote competition; and (4) the desirability of extending the application and implementation of franchise funds to other Federal agencies. (e) Procurement - Nothing in this section shall be construed as relieving any agency of any duty under applicable procurement laws. (f) Termination - The provisions of this section shall expire on October 1, 1999. (Note: This provision was subsequently extended five years, to October 1, 2001, by Congressional action) 20 I ------- Environmental Protection Agency (Fiscal Year 1997 Budget Appendix; pp. 881,882) Intragovernmental fund: WORKING CAPITAL FUND There is hereby established in the Treasury a franchise fund pilot to be known as the "Working Capital Fund," as authorized by Section 403 of Public Law 103-356, to be available as provided in such section, for expenses and equipment necessary for the maintenance and operation of such administrative services as the Administrator determines may be performed more advantageously as central services: Provided, That any inventories, equipment, and other assets pertaining to the services to be provided by such fund, either on hand or on order, less the related liabilities or unpaid obligations, and any appropriations made hereafter for the purpose of providing capital shall be used to capitalize such fund: Provided further, That such fund shall be paid in advance from funds available to the Agency, and other Federal agencies, for which such centralized services are performed, at rates which will return in full all expenses of operation, including accrued leave, depreciation of fund plant and equipment, amortization of automated data processing (ADP) software and systems (either acquired or donated) and an amount necessary to maintain a reasonable operating reserve, as determined by the Administrator: Provided further, That such fund shall provide services on a competitive basis: Provided further, That an amount not to exceed four percent of the total annual income to such fund may be retained in the fund for fiscal year 1997 and each fiscal year thereafter, to remain available until expended, to be used for the acquisition of capital equipment and for the improvement and implementation of Agency financial management, ADP, and other support systems: Provided further, That no later than thirty days after the end of each fiscal year, amounts in excess of this reserve limitation shall be transferred to miscellaneous receipts in the Treasury: Provided further, That such franchise fund pilot terminates pursuant to Section 403(f) of Public Law 103-356. 21 ------- Operating Principles for Business-Like Organizations in the Federal Government The Chief Financial Officers Council and the Office of Management and Budget (OMB) have defined the following standard principles: ~ Competition- The provision of services is on a fully competitive basis. The organization's operations are not "sheltered" or a monopoly. ~ Voluntary exit - Customers are able to "exit" and go elsewhere for services after appropriate notification to the service provider and are permitted to choose providers to obtain needed services. ~ Self-sustaining/Full cost recovery - The operation is self- sustaining and recovers "full costs," as defined by standards issued in accordance with the Federal Accounting Standards Advisory Board (FASAB). ~ Surge capacity - Resources are made available to handle perk business periods, capital investments, and new starts. ~ FTE accountability - FTEs are accounted for in a manner consistent with the Federal Workforce Restructuring Act and OMB requirements. ~ Initial capitalization - The agency provides for initial capitalization including the FTEs necessary to perform the function(s). Dynamic adjustments - There is an ability to adjust capacity and resources up or down as business rises or falls. ------- ~ Cessation of activity - Customers and service providers give reasonable notice and agree mutually to a time frame for curtailing or eliminating services. Organization - There is a clearly defined organizational structure including identifiable units which accumulate and report revenues and costs. Funds within the organization must be separate and identifiable and not commingled with other organization funds. ~ Services - The enterprise provides only common administrative support services. ~ Performance measures - The organization has a comprehensive set of performance measures to assess each service being offered. ~ Benchmarks - Cost and performance benchmarks against other "competitors" are maintained and evaluated. 23 ------- The WCF Service Agreement Process The Service Agreement is the set of documents through which the WCF customer and the WCF service provider commit their intentions to each other regarding the level of individual services for a fiscal year and the cost of those services. The Service Agreement process is an extremely important part of the WCF business cycle. The charts on the next nine pages graphically illustrate the workflow through the Service Agreement process. The first chart shows a macro view of the eight major steps—each step is labeled with a highlighted capital letter, A through H. The succeeding charts detail each of the eight steps. 24 ------- WCF Service Agreement Process Macro View of Major Steps A Client Originates or Mods WCF Service Agreement (SA) Client Errors WCF Activity Validates SA WCF Activity Accepts SA and Notifies Client IFMS Errors RTP Finance Records SA and Obligates Clients Funds SBO/OARM Reprograms Client $'s & BD/OC Issues Reimbursable Authority WCF Activity Delivers Services to Client IFMS Bills Clients for WCF Services Consumed IFMS Errors Client Monitors SA Each Billing Period (Monthly) Consumption Problem 25 ------- WCF Service Agreement Process Client Originates or Mods Service Agreement Client Determines Appropriate Funding for Service Client Records Required Workload by WCF Service Priority, ( Note Service Cost) Program Offices & Regions (Clients) Assign Responsibility for WCF SA Preparation Client Determines WCF Service Priorities Client Determines WCF Service Requirements Client Determines Cumulative S's Required for WCF SA Client's SBO Determines WCF Budget by Line of Accounting Client Determines 'Sources of Funds for WCF Services Addition; Service Require m< WCF Budget Available . Prepare Planning Agreement & Record "Subject to Availability of Funds' Client's Recommended WCF Order is Complete Review by Client's Funds Certification Officer, (FCO) Client x, Management Approval "1/ Funds Certification / Client \. Reprogramming . Required ?/ Client Forwards WCF Service Agreemen: Pkg. to WCF Activity Client's FCO Prepares Reprogramming Reques & Forwards to BD/OC Client's FCO Records Commitments in IFMS & Prints REQLScreens ------- WCF Service Agreement Process WCF Activity Validates Service Agreement Advise Client on Required SA Modifications WCF Activity Assigns Unique WCF Service WCF Service Agreement Received by WCF Activity New WCF Service Agreement Agreement Number Post Admin. Data to WCF Activity Tracking Database (Assign Mod#) WCF Activity Reviews SA for Completeness (Order Form & WCF Requisitions) WCF Activity Contacts Client to Resolve Outstanding Issues with SA All Required arms & Signatu WCF Activity s Business Office Holds WCF Requisition TiD Commitment Date WCF Activity s Business Office Review CF Requisi Checklist Re vie O.K. Planning Requisition t Commitroe Date Past WCF Activity's Business Office Records SA Order in WCF Activity's Workload Database If Requi Statement of W O.K. Capacity to Deliver Service O.K. WCF Activity's Technical Manager Review ------- WCF Service Agreement Process WCF Activity Accepts Agreement and Notifies Client Delegated Obligating Official Within WCF Activity Reviews SA Pkg. Checklists Delegated Obligating Official Signs SA Pkg. as "Accepted" 1 WCF Activity's Business Office Prepares Reprogramming WCF Activity's Original to Business Office RTP Finance, Distributes (Complete SA Pkg.) Original & Copies Copy to BD/OC & SBO/OARM, (WCF Requisition Forms Only) Copy to Client & WCF Staff. (Complete SA Pkg.) r WCF Activity 's Business Office Notifies SBO/OARM WCF Activity's Business Office Forwards Reprogramming Request to SBO/OAR.M ¦ ------- WCF Service Agreement Process RTP Finance Records WCF Service Agreement RTP Finance Receives SA Pkg from ^ > WCF Activity's Business Office > Post Obligation of Client 's Commitments in IFMS Record SA in RTP Finance Tracking System Database Client in Vendor* Establish Client in IFMS "Vendor Table" Post and Process RA & IG Transaction to IFMS Establish SA Hie for Original Fonns PC AS Processing, Update CADT Table PCAS Processing, Update PROJ Table PCAS Processing, Update FPCA Table PCAS Processing, Update FPCD Table IFMS/PC Errors 7 Requires WCF Activity In Resolve Errors & Update Procedures ------- u> o Reprogramming Request Received by SBO/OARM WCF Service Agreement Process OARM Reprograms Client $'s & Issues Reimburseable Authority to WCF Activities Reprogramming Reprogramming Request Request / IFMS \ No Contact WCF Activity Recorded in Checked in IFMS Data Entry & Correct IFMS Tracking System by by N. O.K. / Data Entry Errors SBO/OARM SBO/OARM Yes 1 1 SBO/OARM Reviews Supporting Documentation From WCF Activity's Business Office Supporting Documents O.K. Contact WCF Activity's Business Office & Discuss Issues WCF Activity 's Business Office Resolves All Documentation Issues SBO/OARM Approves WCF Activity's Reprogramming Request SBO/OARM Forwards Approved Reprogramming Request to BD/OC BD/OC Issues Reimburseable Authority to WCF Activity WCF Activity Can Obligate WCF Funds upto Ceiling Established by Reimburseable Authority ------- WCF Service Agreement Process WCF Activity Delivers Services to Client WCF Activity's Business Office Contacts Client for Resolution WCF Activity Suspends Workload Outside SA Pending Mod WCF Activity Provides Service to Clients WCF Activity Captures Client Workload by Service on a Monthly Basis ' Workload X Consistent With S. SA! y WCF Activity 's Business Office Notifies Client If Workload >80% of SA Order by Service WCF Activity Electronically Posts Monthly "Billing Statement" for Clients WCF Activity Processes Monthly 'Billing Statement' WCF Activity's Business Office Forwards Workload $'i by Service to IFMS WCF Activity's Business Office Identifies Resolution Options Available to Client WCF Activity's Business Office Discusses Findings with Client WCF Activity Investigates Reported Errors Hilling Statement Errors Reported \hy dent/' WCF Activity U pdates/Cor rects Billing Procedures or Workload Capture Systems WCF Activity Documents Reported Problem & Agreed Resolution WCF Activity Processes IFMS Credit Trans, to Resolvi Billing Error WCF Activity Processes Workload Credit to Resolve Billing Error Resolution Requii Billing Credit ------- u> to WCF Service Agreement Process LFMS Bills Client for WCF Services Consumed (Monthly) RTF Finance Corrects IFMS Errors RTP Finance Resolves IFMS Errors & Processes Corrections Online RTP Finance Investigates IFMS Errors Requests Assistance from WCF Activity IFMS Debits Client's 'Lines of Accounting' Proportionally PC AS Nightly Cycle Processes WCF Activity's Workload $'s Data by Line of Accounting IFMS Nightly Cycle Processes WCF Activity's Workload $'s Data by SA by Service IFMS Credits WCF Activity's Earned Revenue RTP Finance Researches SA File & Identifies PC AS Setup Errors RTP Finance Analyzes PC AS Edit Errors RTP Finance Notifies WCF Activity's Business Office of Funding Problem & Options RTP Finance Notifies FSB/FMD/OC of PC AS Edit Errors Client SA Mod? ------- WCF Service Agreement Process Clients Monitor WCF Service Agreements No Client FoDowup Required During This Accounting Period Client Reviews 'Billing Statement" for Concumption by Service, (this month & YTD) WCF Activity Electronically Posts Monthly Billing Statement" (15th of following mo.) C on sumption \ Yes On Track ? ~lent Implements RequiredCorrective Actions Workload Appears Valid ? Client Identifies Required Corrective Actions SA Mod Required Valid? uiat Reviews IFM5 Financial Data for Billing by Service, (this month & YTD) No Client FoDowup Required During This Accounting Period Funding On Track ? 1FMS Financial Data on WCF Services Billed Available (22nd of following mo.) ------- 34 ------- |