Treasury Franchise Fund 

Program Summary by Budget Activity 

(Dollars in thousands) 

Budget Activity FY 2009 FY 2010 FY 2011 

Actual Estimated Estimated $ Change % Change

 Consolidated/Integrated Administrative Management $15,261 $0 $0 $0 -

 Financial Management Administrative Support Services $146,400 $167,998 $176,213 $8,215 4.9%

 Financial Systems, Consulting and Training $4,811 $0 $0 $0 -

Total Cost of Operations $166,472 $167,998 $176,213 $8,215 4.9% 

Explanation of Budget Estimate 

Historically, The Treasury Franchise Fund (the 

Fund) has reported activity in the following 

budget activities 

•	 Consolidated/Integrated Administrative 

Management 

•	 Financial Management Administrative 

Support Systems 

•	 Financial Systems, Consulting and 

Training 

In FY 2011, the Fund is reporting only the 

Financial Management Administrative Support 

Systems budget activity, Public Debt’s 

Administrative Resource Center (ARC). The 

remaining activities were eliminated due to 

Treasury decisions to transition out of those 

business lines because they were not consistent 

with Treasury’s core mission or are not 

advantageous to be offered as a shared service. 

The Treasury Franchise Fund is projecting a 

net increase in budgetary resources of 

approximately five percent for FY 2011. The 

net increase is comprised of increases due to 

labor and non-labor price increases and 

anticipated new customers. 

Purpose of Program 

The Fund is a revolving fund that supplies 

financial and administrative services on a feefor-service basis. The Fund has transformed 

the administrative support arena in the Federal 

Government through a shared services 

business model that offers marketplace success 

through competition. The Fund became 

permanent in the Consolidated Appropriations 

Act, 2005 (Public Law 108-447) and is 

codified in U.S.C. 322, note. In addition, 

Public Debt’s Administrative Resource Center 

(ARC) was designated by the Office of 

Management and Budget (OMB) as a Center 

of Excellence for Financial Management 

(FMLoB) and a Shared Services Center for 

Information Systems Security (ISSLoB). In 

addition, ARC has critical supporting roles in 

the Human Resources (HRLoB) and Public 

Key Infrastructure (PKI) SSP designations of 

the Department of Treasury. 

Since inception, the Fund has been a leader in 

redefining the processes and methods for 

delivering administrative products and services 

to federal customers. The Fund offers onestop shopping to customers and we use 

streamlined processes, ensure full 

accountability, offer competitive prices, and 

timely services. In FY 2011, the Fund will 

maintain its commitment to excellence and 

will meet or exceed all applicable strategic 

goals and benchmarks. 

Department of the Treasury - Budget in Brief FY 2011 Page 91
Explanation of Budget Activities 

Consolidated/Integrated Administrative 

Management (No funding) 

In previous fiscal years, FedSource was 

reported under this budget activity. With 

Treasury’s decision to transition out of the 

FedSource service line, the Franchise Fund has 

discontinued this budget activity in 2010. 

Financial Management Administrative 

Support Services ($176,213,000 from 

reimbursable programs) 

This Franchise Fund budget activity includes 

Public Debt’s Administrative Resource Center 

(ARC), an OMB approved federal shared 

service provider. ARC provides accounting, 

procurement, travel, human resources, and 

information technology services to federal 

customers and is a Center of Excellence for 

Financial Management and a Shared Services 

TFF Performance by Budget Activity 

Description of Performance 

The Fund has defined customer satisfaction 

and operating expenses as a percentage of 

revenue as key performance measurement 

areas. 

With the decision to close-out the FedSource 

business line, all efforts have been focused on 

Center for Information Systems Security 

(ISSLoB) . 

Financial Systems, Consulting and Training 

(No funding) 

In previous fiscal years, the Federal Consulting Group (FCG) and Treasury Agency 

Services was reported under this budget 

activity. With Treasury’s decision to transition out of these service lines, the Franchise 

Fund has discontinued this budget activity in 

2010. 

Legislative Proposals 

The Treasury Franchise Fund has no 

legislative proposals for FY 2011. 

Budget Activity Performance Measure 

FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 

Actual Actual Actual Target 

Met? Target Target 

Consolidated/Integrated Operating expenses as a 

Administrative percentage of revenue--

Management Consolidated/Integrated 

Administrative Management 

(%)(E) 

4 18 DISC DISC DISC DISC DISC 

Financial Management Operating expenses as a 

Administrative Support percentage of revenue—Financial 

Services Management Administrative 

Support (%) (E) 

15 4 12 5 Y 12 12 

Financial Systems, Operating expenses as a 

Consulting and Training percentage of revenue--Financial 

Systems, Consulting and Training 

(%) (E) 

7 6 DISC DISC DISC DISC DISC 

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure, and DISC - Discontinued 

Target 

ensuring a smooth transition for customers and 

vendors, providing employees with job 

placement and separation assistance and 

minimizing close-out costs. Therefore, The 

Fund’s performance measures are discontinued 

for this budget activity. 

The FY 2010 and FY 2011 target of 12 

percent for operating expenses as a percentage 

of total revenue provides franchise 

Department of the Treasury - Budget in Brief FY 2011 Page 92
management with a measure that encourages 

efficiency in administrative operations and 

helps to assure services are provided at the 

lowest possible cost. Administrative Resource 

Center (ARC) again met this performance 

measure in FY 2009 with a five percent 

operating expense ratio. and expects to meet 

them in FY 2010 and FY 2011. 

With the decision to transition out of the FCG 

and TAS business lines, all efforts have been 

focused on ensuring smooth transitions to their 

new federal hosts. Therefore, The Fund’s 

performance targets are discontinued for this 

budget activity. 

Department of the Treasury - Budget in Brief FY 2011 Page 93