Treasury Franchise Fund 

Mission Statement 

To offer world-class administrative solutions that provide value to federal customers 

while allowing them to concentrate on their core missions. 

Program Summary by Account Dollars in Thousands 

FY 2006 FY 2007 FY 2008

Obligated Estimated Estimated $ Change % Change 

Consolidated/Integrated Administrative 

Management $540,586 $595,160 $689,460 $94,300 15.84%

Financial Management Administrative 

Support Services 88,735 90,861 98,685 7,824 8.61%

Financial Systems, Consulting and 

Training 13,133 8,650 9,167 517 5.98%

Total Cost of Operations $642,454 $694,671 $797,312 $102,641 14.78%

FY 2008 Priorities 

• Increase efficiency and effectiveness of administrative business processes. 

• Enhance the system environment of administrative operations. 

• Create a stronger shared services structure for Treasury. 
Table of Contents 

Section 1 – Purpose ........................................................................................................... 2

1A – Description of Bureau Vision and Priorities.......................................................... 2 

1B – Program History and Future Outlook..................................................................... 3 

1C – Industry Outlook .................................................................................................... 6 

Section 2 – Budget Adjustments and Appropriations Language ................................. 7

2.2 – Operating Levels Table.......................................................................................... 7 

2B – Appropriations Language....................................................................................... 7 

2C – Legislative Proposals.............................................................................................. 7 

Section 3 – Budget and Performance Plan ..................................................................... 8

3.1 – Resource Detail Table............................................................................................ 8 

3A – Consolidated/Integrated Administrative Management .......................................... 8 

3.2.1 – Consolidated/Integrated Administrative Management Budget and Performance 

Plan ................................................................................................................................. 9 

3B – Financial Management Administrative Support Services...................................... 9 

3.2.2 – Financial Management Administrative Support Services Budget and 

Performance Plan.......................................................................................................... 10 

3C – Financial Systems, Consulting and Training ....................................................... 11 

3.2.3 – Financial Systems, Consulting and Training Budget and Performance Plan ... 12 

Section 4 – Supporting Materials.................................................................................. 13

4.1 – Human Resources Table ...................................................................................... 13 

4A – Human Capital Strategy Description ................................................................... 13 

4B – Information Technology Strategy ........................................................................ 14 

4.3 – PART Evaluation Table....................................................................................... 14 

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Section 1 – Purpose

1A – Description of Bureau Vision and Priorities 

The vision of the Treasury Franchise Fund is to transform the administrative support 

arena in the federal government by energizing a shared services business model that can 

offer marketplace success through competition. 

The Franchise Fund businesses have been leaders in redefining the processes and 

methods for delivering administrative products and services that combine streamlined 

processes, simplified rules, full accountability, competitive costing, timely completion, 

and one-stop shopping for customers. Franchise Fund efforts have resulted in significant 

dollar savings throughout the federal government primarily through the following 

franchising objectives: 

• Promote efficiencies in the delivery of administrative products and services 

• Reduce duplication of effort 

• Foster competition 

• Achieve full cost/self sufficiency 

• Enhance customer satisfaction 

The Treasury Franchise Fund is made up of four individual franchise businesses that are 

rolled into three budget activities that group their offerings into similar services. 

Consolidated/Integrated Administrative Management – Includes FedSource

The mission of FedSource is to provide entrepreneurial business solutions for the 

acquisition and financial management of common administrative services and products in 

support of agency missions and objectives. FedSource focuses on support services and 

copier/printer management. 

Financial Management Administrative Support Services – Includes the Administrative 

Resources Center (ARC)

ARC has been providing federal government agencies with common administrative 

support in the areas of Accounting, Travel, Human Resources and Procurement with a 

focus on excellence and superior service. ARC’s mission is to aid in improving overall 

government effectiveness by delivering responsive and cost effective administrative 

support to its customers, thereby improving the customers’ ability to effective discharge 

their mission. 

Financial Systems, Consulting and Training – Includes Treasury Agency Services (TAS)

and Federal Consulting Group (FCG)

Treasury Agency Services (TAS) helps agencies improve the quality of government 

financial management by providing information, advice, assistance, and training that is 

customized to meet today’s environment and client agencies’ requirements. 

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The mission of the Federal Consulting Group (FCG) is to consult with other federal 

government agencies to support their transformation efforts to become more efficient, 

effective, citizen-centric, and results-oriented. The Federal Consulting Group’s three 

business lines--consulting, executive coaching, and measuring performance and customer 

satisfaction--provide federal agencies with innovative solutions using the latest 

management and information technology tools, techniques, and best practices. 

1B – Program History and Future Outlook 

Demonstrated Success – Eliminating Duplication

Shared Platform & Services 

The Administrative Resource Center (ARC) has reduced the number of federal 

administrative systems by providing access to an integrated system platform for 

accounting, travel, procurement, and personnel functions. In addition, ARC acts as a 

shared service provider for many customers providing full-service transaction processing 

and reporting. ARC, a Center of Excellence for Financial Management, now provides: 

• 31 organizations with administrative accounting services 

• 38 organizations with travel services 

• 30 organizations with procurement services 

• 25 organizations with personnel services 

The consolidation of these federal customers onto a shared systems platform has provided 

substantial savings to the federal government. These organizations now get better system

license costs because the vendors offer large volume discounts. These organizations also 

share the costs associated with operations and maintenance. In addition to the cost 

savings, these organizations are upgraded to the latest version of the software 

simultaneously as opposed to each organization managing their upgrade independently. 

In the past, the Department of the Treasury had a decentralized administrative service 

environment. There were 14 different bureaus and organizations within Treasury running 

their own accounting, procurement, and travel systems on various platforms. Each 

organization trained separate staffs to manage their systems and process their 

transactions. With the evolution of the Administrative Resource Center (ARC), Treasury 

has now moved to a shared services environment where 11 of the 14 entities share 

systems on a single integrated platform. In addition, many of the bureaus take advantage 

of ARC’s experienced staff to process their transactions and provide their reporting. 

Consolidating Agency Needs 

FedSource has consolidated multiple requirements from several offices within the same

agency into one procurement vehicle. For example, FedSource has combined copier 

equipment, software for the copy center, and placements to run the copy center– all for 

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one price. They were able to give the customer one agreement for multiple services 

eliminating the need for the agency to seek several vendors. FedSource became “onestop” shopping. In another example, FedSource established a single “master agreement” 

for one of its customers that eliminated the need for separate agreements for each of its 

customer’s offices. That alone saved the customer agency time and reduced its 

administrative burden significantly. This not only proved to be a time saver, it also 

facilitated cost savings for the customer. 

Demonstrated success – timeliness & accuracy

Timely Financial Information 

The Administrative Resource Center has always been among Treasury's best in quality 

and timeliness of financial reporting. ARC continues to strive to set the example for 

efficiency and quality in the area of financial reporting. With Oracle’s reporting tool 

(Discoverer), federal managers have real-time data at their fingertips any day of the 

month. By closing their customer’s books by the third business day following each 

month, timely financial data (such as unobligated balances) is quickly in the hands of 

federal mangers for decision-making. By closing the year-end books five business days 

after year-end, federal managers have the data necessary to provide year-end reporting 

well ahead of their counterparts in other agencies. 

There is no better test for the accuracy and quality of financial data than an annual 

financial statement audit. Externally, ARC has helped its customers receive over 87 

consecutive clean audit opinions. ARC also maintains an exceptional internal control 

structure. Each year ARC undergoes a SAS 70 audit that verifies the entire control 

structure from disbursement processing to financial reporting. Each agency saves money 

on its annual financial statement audits because their auditors can rely on the work done 

during ARC’s SAS 70 Audit. 

Demonstrated Success – Efficiency

Efficiency is the ability to perform well or achieve a result without wasting energy, 

resources, effort, time or money. Competition, a cornerstone of the franchising concept, 

has been the impetus behind improving government efficiency. Competition has 

increased the focus of service providers on the needs of the customer, introduced the need 

for market solutions (instead of administrative bureaucracy), decentralized authority, and 

improved efficiency by delivering better services at lower costs in the most effective 

manner. 

Reducing Overhead Costs 

Many customers have realized reduced pricing, rebates, and volume discounts as a result 

of the economies of scale and improved efficiency of FedSource’s services. In order to 

remain competitive, FedSource continues to find ways to reduce its operating (overhead) 

costs. FedSource is able to give a price reduction when obtaining large orders because in 

most instances its operating costs remain fairly constant. This is best illustrated by 

looking at its operating percentage, which quantifies operating costs as percentage of 

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total revenue. The increase in revenue has outpaced the increase in operating costs. As a 

result, FedSource’s operating percentage has steadily decreased from 7 percent in 

FY 1998 to 3.7 percent in FY 2006 representing a 47 percent reduction. 

Private Sector Accountability 

FedSource worked with two of its largest vendors to enhance the methods in which they 

invoice the government. This enabled FedSource to easily review each invoice for 

accuracy, which saved more than ten days of staff time each month. In addition 

FedSource receives many invoices electronically, which allows their system to 

automatically check it against the contract for errors. As a result, FedSource is able to 

provide its customers with a more timely and accurate bill. In this case, the government 

and the private sector have become more efficient. 

 

Awards and Public Recognition 

• In 2005 the Administrative Resource Center was recognized as a Center of 

Excellence in the Financial Management Line of Business. 

• The Administrative Resource Center received the Certificate of Achievement for a 

Government Travel Management Program from the Society of Government Travel 

Professionals (SGTP) for implementing the commercial, off-the-shelf software to 

automate the relocation process as part of the e-Travel implementation 

Future Outlook

Through FY 2008 the Fund will maintain its commitment to excellence and will continue 

to meet or exceed all strategic goals and benchmarks. Additionally, the Fund should 

continue to see controlled growth. 

Creating Opportunities through Innovation 

Government business has significant needs when it comes to information. Making 

information actionable is central to an entity’s performance. The ability to collaborate 

and share ideas, to make better-informed decisions, and to connect with customers relies 

on effectively managing information. At the same time, reducing costs remains a longterm priority. For these reasons, the importance of information technology as a strategic 

asset has never been greater. Franchise Fund is collaborating with its private sector 

partners to create high-impact solutions that integrate across the organization, such as 

using technology to give its customers desktop access to critical information. Focusing on 

its customer’s needs fuels its passion for innovation. Franchise Fund believes innovative 

technology has the power to eliminate obstacles and create opportunities. As such, 

Franchise Fund will focus much of its efforts in FY 2007 and beyond to further 

developing its on-line offerings. 

Raising the Bar 

Although Franchise Fund is proud of its marketplace success and track record of 

delivering innovation, quality and results to its clients, the time has come for us to raise 

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the bar in the industry once again. The designation of the Treasury Franchise Fund as a 

“Center of Excellence” in Financial Management will open new doors. Not only will this 

designation help expand the Fund’s Administrative Resource Center’s current target 

audience of small to mid-level agencies but it should provide the pathway to compete for 

the business of large cabinet level agencies. To ensure the Fund can meet these new 

opportunities the Fund has been making substantial investments today to enhance the 

power and value of its integrated system platform. The Franchise Fund is optimistic about 

its long-term growth opportunities. 

1C – Industry Outlook 

There is a positive outlook for the shared services sector in the federal government. The 

success of the Treasury Franchise Fund and its private sector counterparts is providing 

government leaders with a basis for looking at shared services providers to supply 

administrative resources. The Fund anticipates further growth in this sector due to the 

development of the Financial Management Line of Business and the Fund’s status as a 

Center of Excellence. 

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Section 2 – Budget Adjustments and Appropriations Language 

2.2 – Operating Levels Table 

Dollars in Thousands 

Treasury Franchise Fund FY 2006

Obligated

FY 2007 

Estimated

FY 2008 

Estimated

FTE 645 909 827 

Object Classification:

11 Personnel Compensation...................................... $39,310 $43,158 $48,625

12 Personnel Benefits.............................................................. 11,107 14,864 16,777

13 Ben. Former Personnel................................................ 109 0 0

21 Travel and Transportation of Persons...................... 1,522 1,255 1,308

22 Transportation of Things................................................ 195 163 165

23 Rents Communications, Utilities, and Misc. Charges........... 3,790 2,486 2,544

24 Printing and Reproduction.......................................... 247 93 95

25 Other Services............................................................. 574,093 620,914 716,896

26 Supplies and Materials........................................ 1,215 2,092 2,143

31 Equipment......................................................... 12,451 9,534 8,676

32 Land and Structures............................................ (1,652) 106 78

42 Insurance Claims and Indemnities.......................... 0 0 0

43 Interest............................................................. 66 5 5

Total............................................................................ $642,454 $694,671 $797,312

Budget Activities:

Consolidated/Integrated Administrative Management........... $540,586 $595,160 $689,460

Financial Management Administrative Support Services...... 88,735 90,861 98,685

Financial Systems, Consulting and Training....................... 13,133 8,650 9,167

Total............................................................................ $642,454 $694,671 $797,312

2B – Appropriations Language 

The Treasury Franchise Fund receives no appropriated funds from Congress. 

2C – Legislative Proposals 

The Treasury Franchise Fund has no legislative proposals for FY 2008. 

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Section 3 – Budget and Performance Plan

3.1 – Resource Detail Table 

Dollars in Thousands 

% Change

FY 2006 FY 2007 FY 2008 FY 2007

Description Actual * Estimated Estimated to FY 2008

AMOUNT AMOUNT AMOUNT AMOUNT

Summary of Revenue and Expenses:

Revenue:

Consolidated / Integrated Administrative Mgt. $517,315 $600,000 $700,000 16.67%

Financial Management Administrative Support 83,966 91,000 97,800 7.47%

Financial Systems, Consulting & Training 12,226 8,700 9,400 8.05%

Total Revenue $613,507 $699,700 $807,200 15.36%

Expenses: 

Consolidated / Integrated Administrative Mgt. $509,185 $595,160 $689,460 15.84%

Financial Management Administrative Support 90,516 90,861 98,685 8.61%

Financial Systems, Consulting & Training 10,254 8,650 9,167 5.98%

Total Expenses $609,955 $694,671 $797,312 14.78%

Net Results $3,552 $5,029 $9,888 96.59%

Customer Growth

Consolidated / Integrated Administrative Mgt. 2,870 2,870 3,000 4.53%

Financial Management Administrative Support 59 61 63 3.28%

Financial Systems, Consulting & Training 239 263 290 10.27%

Total Customer Growth 3,168 3,194 3,353 4.98%

* Data is from the FY 2006 Statement of Net Cost. That data is on the accrual basis instead of the cash basis presentation in the President's Budget.

3A – Consolidated/Integrated Administrative Management ($689,460,000 from 

reimbursable programs): The purpose of the Consolidated/Integrated Administrative 

Management budget activity is to provide government customers with entrepreneurial 

business solutions for the acquisition and financial management of common 

administrative services and products in support of agency missions and objectives. The 

Consolidated/Integrated Administrative Management activity includes FedSource which 

offers a “first choice” option or alternate source for the acquisition of these services and 

products in a fast, cost effective manner while continuing to assure quality and customer 

service. 

FedSource uses numerous cost saving vehicles to generate or enhance efficiency and 

effectiveness in agency customer programs. FedSource consolidates multiple 

requirements from several offices within the same agency into one procurement vehicle, 

providing the customer one agreement for multiple services, and eliminating the need for 

the agency to seek several vendors. FedSource can establish a single “master agreement” 

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for its customers that eliminate the need for separate agreements for each of its 

customer’s offices, saving the customer agency time and significantly lowering 

administrative burden. 

FedSource customers realize reduced pricing, rebates, and volume discounts as a result of 

economies of scale and improved efficiency of FedSource’s services. FedSource is able 

to give a price reduction to customers obtaining large orders because in most instances 

operating costs remain fairly constant. In order to remain competitive, FedSource 

continues to find ways to reduce operating (overhead) costs. FedSource has consolidated 

its Acquisition Center to help ensure compliance with the numerous procurement rules 

and regulations, and continues to adapt its organization structure and product and service 

lines to enhance delivery of administrative services. FedSource expects to continue to be 

one of the most efficient and effective procurement options for the federal government. 

Continued growth will enable FedSource to demand even lower prices from their vendors 

based on increased buying power derived from all their customers. 

3.2.1 – Consolidated/Integrated Administrative Management Budget and 

Performance Plan 

Dollars in Thousands 

Consolidated/Integrated Administrative 

Management Budget Activity

Includes Strategic Objectives F3A and M5B

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Obligated Obligated Obligated Estimated Estimated

Financial Resources 

 Appropriated Resources $0 $0 $0 $0 $0

 Other Resources 480,478 701,150 540,586 595,160 689,460

Total Operating Level $480,478 $701,150 $540,586 $595,160 $689,460

Human Resources 

 Appropriated FTE 0 0 0 0 0

 Other FTE 80 80 111 150 150

Total FTE (direct and reimbursable) 80 80 111 150 150

Consolidated/Integrated Administrative 

Management Budget Activity

Includes Strategic Objectives F3A and M5B

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target Baseline 71% 80% 80%

Actual 71% 51%

Customer Satisfaction Index - 

Consolidated/Integrated Administrative Mngmnt 

(%)(Oe) Met Yes No

Target Baseline 4% 12% 12% 12%

Actual 4% 4% 4%

Operating expenses as a percentage of 

revenue--Consolidated/Integrated Administrative 

Management (%)(E) Met Yes Yes Yes

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. 

Satisfaction 

3B – Financial Management Administrative Support Services ($98,685,000 from 

reimbursable programs): The purpose of the Financial Management Administrative 

Support activity is to offer value to its customers through cost savings (system 

acquisitions and operations and maintenance) and quality services. The Financial 

Management Administrative Support Services activity includes the Administrative 

Resources Center (ARC). ARC provides traditional administrative support functions with 

a focus on accounting, procurement, travel, and human resources (HR) services. This 

program has been very successful in meeting its mission goals as evidenced by the 

increasing demands for and satisfaction from their services. 

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ARC has reduced the number of federal administrative systems by providing access to an 

integrated system platform for accounting, travel, procurement, and personnel functions. 

In addition, ARC acts as a shared service provider for many customers providing fullservice transaction processing and reporting. 

The consolidation of these federal customers onto a shared systems platform has provided 

substantial savings to the federal government. These organizations now get better license 

costs because the vendors offer large volume discounts. These organizations also share 

the costs associated with operations and maintenance. In addition to the cost savings, 

these organizations are upgraded to the latest version of the software simultaneously as 

opposed to each organization managing its upgrade independently. 

ARC already has agreements in place to add customers through FY 2008. ARC is in 

discussions with several agencies (small and large) to ensure work beyond FY 2008. 

ARC will generate substantial cost savings to these new customers through the year-one 

conversion phase. Customers will receive a compliant system platform at a fraction of the 

cost of the agency implementing their own new system. Customers also receive cost 

savings in out years by sharing system upgrade costs with ARC’s other customers. 

Operations and maintenance costs are also lowered because ARC can negotiate much 

better system license costs with their vendors. As a result of the projected business, ARC 

hopes to help customers eliminate 15-20 duplicate financial related systems by FY 2008. 

ARC can use the solutions that are implemented by one customer to help similar issues 

encountered by other customers. This “economies of scale” could not be obtained if the 

agencies performed their own work. ARC has also begun to re-look at their processes to 

streamline their procedures to gain new efficiencies. 

3.2.2 – Financial Management Administrative Support Services Budget and 

Performance Plan 

Dollars in Thousands 

Financial Management Administrative

Support Services Budget Activity

Includes Strategic Objective M5B

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Obligated Obligated Obligated Estimated Estimated

Financial Resources

 Appropriated Resources $0 $0 $0 $0 $0

 Other Resources 64,450 74,850 88,735 90,861 98,685

Total Operating Level $64,450 $74,850 $88,735 $90,861 $98,685

Human Resources

 Appropriated FTE 0 0 0 0 0

 Other FTE 531 580 504 667 747

Total FTE (direct and reimbursable) 531 580 504 667 747

TFF - 10 
Financial Management Administrative

Support Services Budget Activity

Includes Strategic Objective M5B

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target Baseline 71% 80% 80%

Actual 71% 75%

Customer Satisfaction Index - Financial Mgmt 

Admin Support Services (%) (Oe) 

Met Yes Yes

Target Baseline 11% 12% 12% 12%

Actual 9% 9% 17%

Operating expenses as a percentage of 

revenue--Financial Management Administrative 

Support (%) (E) Met Yes Yes No

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. 

Satisfaction 

3C – Financial Systems, Consulting and Training ($9,167,000 from reimbursable 

programs): The purpose of the Financial Systems, Consulting, and Training activity is to 

offer value to customers by proving solutions through consulting and training. The 

Financial Systems, Consulting and Training activity consists of Treasury Agency 

Services and the Federal Consulting Group. 

Treasury Agency Services shares one common purpose with their host bureau Financial 

Management Service (FMS)—help agencies improve the quality of government financial 

management. TAS is a reimbursable provider of information, advice, assistance, and 

training that is customized to meet today’s environment and client agencies’ 

requirements. These services provide the venue for linking program objectives and 

services with best financial management practices. TAS’ vision is to be the partner of 

choice for federal managers seeking financial management improvements and success. Its 

strength is FMS expertise combined with entrepreneurial initiative. 

The mission of the Federal Consulting Group (FCG) is to consult with other federal 

government agencies to support their transformation efforts to become more efficient, 

effective, citizen-centric, and results-oriented. The Federal Consulting Group’s three 

business lines--consulting, executive coaching, and measuring performance and customer 

satisfaction--provide federal agencies with innovative solutions using the latest 

management and information technology tools, techniques, and best practices. 

The Consulting Business Line focuses on assisting federal agencies in achieving 

organizational effectiveness through strategic planning, organizational development, 

process improvement, and workforce planning. FCG provides guidance to meet the 

requirements of the President’s Management Agenda and the Program Assessment 

Rating Tool. Other services include conducting Baldrige and various types of program

assessments. The Executive Coaching Business Line focuses on leadership development, 

team building, appreciative inquiry, executive coaching/mentoring, personal leadership 

skills and feedback coaching. The Performance Measurement and Customer Satisfaction 

Business Line focuses on aiding federal agencies in understanding what internal and 

external customers think of their efforts and improving overall customer satisfaction. 

This is accomplished through the use of the American Customer Satisfaction Index 

(ACSI), which is the world’s leading metric for assessing and improving customer 

satisfaction and other measures of customer and employee satisfaction. 

The FCG serves as one of the most cutting edge consulting and performance 

measurement service providers to the federal government. As the pressure grows for 

TFF - 11 
federal agencies to achieve results, measure performance, increase trust and confidence in 

government and prepare the next generation of leaders, the demand for and value of the 

services provided to client agencies continues to grow. FCG’s mantra of “experience 

meeting government’s challenges” is clearly demonstrated by its team of experienced, 

forward looking federal executives who can help agencies focus their efforts and become 

high performing. 

3.2.3 – Financial Systems, Consulting and Training Budget and Performance Plan 

Dollars in Thousands 

Financial Systems, Consulting and 

Training Budget Activity

Includes Strategic Objective M5B

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Obligated Obligated Obligated Estimated Estimated

Financial Resources 

 Appropriated Resources $0 $0 $0 $0 $0

 Other Resources 12,920 12,250 13,133 8,650 9,167

Total Operating Level $12,920 $12,250 $13,133 $8,650 $9,167

Human Resources 

 Appropriated FTE 0 0 0 0 0

 Other FTE 50 50 30 10 12

Total FTE (direct and reimbursable) 50 50 30 10 12

Financial Systems, Consulting and Training 

Budget Activity

Includes Strategic Objective M5B

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target Baseline 71% 80% 80%

Actual 71% 81%

Customer Satisfaction Index - Financial System, 

Consulting & Training 

Met Yes Yes

Target Baseline 12% 12% 12% 12%

Actual 14% 11% 10%

Operating expenses as a percentage of 

revenue--Financial Systems, Consulting and 

Training (%) (E) Met Yes Yes Yes

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and M - Management/Cust. 

Satisfaction 

Customer Satisfaction 

It is imperative that the Franchise Fund customers are satisfied with all aspects of the 

services provided. In the past the Fund used an 80% benchmark because of the scales 

used by the businesses to assess customer satisfaction. In FY 2005 and FY 2006, the 

Franchise Fund used the American Customer Satisfaction Index (ACSI). As a result, the 

Fund's base-line measures have changed. 

Operating Expenses as a Percentage of Revenue 

The Franchise Fund will either maintain or decrease the cost of goods sold as a 

percentage of revenue year to year. Cost of goods sold is defined as the costs actually 

incurred in producing the product or service. It is the direct cost of production or service. 

For detailed information about each performance measure, including definition, 

verification and validation, please go to: 

http://www.treas.gov/offices/management/dcfo/accountability-reports/2006-

par/Part_IV_Appendices.pdf

TFF - 12 
Section 4 – Supporting Materials 

4.1 – Human Resources Table 

Changes in Full Time Equivalents

Reimbursable FY 2006 FY 2007 FY 2008

Base: Year-end Actual from Prior Year 686 645 827

Increases:

Reason #1: Business growth 156 182 82

Subtotal, Increases 156 182 82

Decreases:

Reason #1: Normal Attrition -17

Reason #2: Office closures/transfers -26

Reason #3: Move Off. Of Mgmt Services

back to BPD

-154

Subtotal, Decreases -197 0 0

Year-end Actual/Estimated FTEs 645 827 909

Net Change from prior year SOY to budget year EOY 264

4A – Human Capital Strategy Description 

The Fund relies heavily on its host Bureaus (Bureau of Public Debt (BPD), FMS, and 

Departmental Offices) to provide the basis of its human capital strategy. Each bureau has 

done significant work in this area. The Fund, in a supplemental role, continues to 

improve recruitment, retention, professional development and evaluation strategies. The 

Fund makes full use of special hiring authorities, such as the Federal Career Intern, 

Outstanding Scholar and Student Career Experience Programs. With a significant portion 

of the Fund’s FTE’s located in Parkersburg, WV, the Fund has had a great deal of success 

recruiting highly qualified personnel. For example, the Fund’s core business line – 

ARC’s Financial Management Services – has been able attract over 38 certified public 

accountants making up roughly 21 percent of its total accounting staff. 

The Treasury Franchise Fund has implemented its “EthicSmart” initiative that has 

increased awareness of ethical dilemmas that are heightened in a service business 

environment. This initiative helps support one of the Fund’s goals of complying with 

relevant laws and regulations. The program is designed to help convey management’s 

desire to create an environment where employees can make the right decision and take 

the right course. 

TFF - 13 
4B – Information Technology Strategy 

The Treasury Franchise Fund (TFF) determines what IT investments should be added to 

its portfolio using an Investment Review Board (IRB). The Fund’s Advisory Board acts 

as the IRB and looks at investment activity monthly. All IT investments must be 

supported by a business need and the investment must add value to the services TFF 

provides its customers. When reviewing investments, the TFF IRB considers/addresses 

these questions: 

• Does the IT investment support core/priority mission functions that need to be 

performed by the Treasury Franchise Fund?

• Does the project have to be undertaken by the Franchise Fund because no alternative 

private sector or government source can more efficiently support the function?

• Does the investment support work processes that have been simplified or otherwise 

redesigned to reduce costs, improve effectiveness, and make maximum use of 

commercial, off-the-shelf technology?

• Does the investment eliminate redundant systems and centralize core functions?

The Administrative Resource Center’s IT portfolio is managed by the BPD, while 

Treasury Agency Service’s portfolio is managed by the FMS. FedSource and FCG’s IT 

portfolio is managed by the Treasury Franchise Fund’s IRB. The Treasury Franchise 

Fund does not have any IT or Non-IT investments in their current portfolio. 

4.3 – PART Evaluation Table 

The Treasury Franchise Fund is not scheduled to be PARTed. 

For a complete list of PART results visit the following website: 

http://www.whitehouse.gov/omb/expectmore/all.html

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