TFF - 1 

Treasury Franchise Fund 

Mission Statement 

To assist customer agencies in meeting their mission by providing responsive, customerfocused, cost-effective financial management and administrative support services. 

Program Summary by Budget Activity 

Dollars in Thousands 

Appropriation FY 2008 FY 2009 FY 2010

Treasury Franchise Fund Obligated Obligated Estimated $ Change % Change

 Consolidated/Integrated Administrative Management $180,361 $11,293 $0 ($11,293) -100.00%

 Financial Management Administrative Support Services $96,952 $146,828 $147,968 $1,140 0.78%

 Financial Systems, Consulting and Training $13,691 $2,117 $0 ($2,117) -100.00%

Total Appropriated Resources $291,004 $160,238 $147,968 ($12,270) -7.66%

Total FTE 769 982 965 (17) -1.73%

FY 2010 Priorities 

• Improve our ability to assess and report our service delivery performance. 

• Fully implement a franchise enterprise risk management process that includes a 

comprehensive customer selection and evaluation process. 

• Continue to support good government through active participation in government 

wide initiatives, maintaining and enhancing overall compliance and accountability 

and promoting standardization. 

• Enhance our human capital strategy to improve our ability to recruit, develop and 

provide for a challenging, rewarding and values based work environment. 

• Provide for continual review of our service offerings to ensure delivery of timely, 

valuable and cost effective solutions to customers. 
TFF - 2 

Table of Contents 

Treasury Franchise Fund................................................................................................. 1

Section 1 – Purpose ........................................................................................................... 3

1A – Description of Bureau Vision and Priorities.......................................................... 3 

1B – Program History and Future Outlook..................................................................... 5 

1C – Industry Outlook .................................................................................................... 8 

Section 2 – Budget Adjustments and Appropriation Language................................... 9

2.2 – Operating Levels Table.......................................................................................... 9 

2.3 – Resource Detail Table.......................................................................................... 10 

2B – Appropriations Language and Explanation of Changes....................................... 10 

2C – Legislative Proposals ........................................................................................... 10 

Section 3 – Budget and Performance Plan ................................................................... 11

3.1 – Budget by Strategic Outcome .............................................................................. 11 

3A – Consolidated/Integrated Administrative Management ....................................... 11 

3.2.1 – Consolidated/Integrated Administrative Management Budget and Performance 

Plan ............................................................................................................................... 12 

3B – Financial Management Administrative Support Services................................... 13 

3.2.2 – Financial Management Administrative Support Services Budget and 

Performance Plan.......................................................................................................... 13 

3C – Financial Systems, Consulting and Training ...................................................... 14 

3.2.3 – Financial Systems, Consulting and Training Budget and Performance Plan ... 15 

Section 4 – Supporting Materials .................................................................................. 16

4A – Human Capital Strategy Description ................................................................... 16 

4B – Information Technology Strategy ........................................................................ 16 

4.2 –Program Assessment Table................................................................................... 16 

http://www.whitehouse.gov/omb/expectmore/all.html................................................. 16 
TFF - 3 

 Section 1 – Purpose

1A – Description of Bureau Vision and Priorities 

The vision of the Treasury Franchise Fund (the Fund) is to transform the administrative 

support arena in the Department of the Treasury (Treasury) and help other federal 

agencies by creating a shared services business model that can offer marketplace success 

through competition. The Franchise Fund provides value to Treasury by reducing costs 

while increasing the efficiency of administrative services. 

The Franchise Fund businesses have been leaders in redefining the methods for 

delivering administrative products and services that combine streamlined processes, full 

accountability, competitive costing, timely completion, and one-stop shopping for 

customers. Franchise Fund efforts have resulted in significant dollar savings within 

Treasury and throughout the Federal Government primarily through the following 

franchising objectives: 

• Promote efficiencies in the delivery of administrative products and services 

• Eliminate redundant systems and reducing duplication of effort 

• Foster competition 

• Enhance customer satisfaction 

During FY 2008, Treasury continued to change the Fund to ensure that services offered 

are consistent with Treasury’s core mission and advantageous as shared services. 

Specifically, Treasury decided to transition out of the Financial Systems, Consulting and 

Training services offered by the Federal Consulting Group (FCG) and Treasury Agency 

Services (TAS). To implement the decision, Treasury transferred management and 

operations of FCG from its host, Departmental Offices, to the Bureau of the Public Debt 

(Public Debt) with guidance to transfer out or shutdown FCG in FY 2009. In addition, 

the Fund worked with TAS’s host, the Financial Management Service, to withdraw TAS 

from the Fund in FY 2009. Therefore, in FY 2010, the services provided by the Fund 

will include only those financial management and administrative support services 

offered by Public Debt’s Administrative Resource Center (ARC).

Consolidated/Integrated Administrative Management – Includes Public Debt 

Franchising-FedSource

Treasury decided to transition out of the interagency acquisition business operated by 

FedSource and transferred management and operations to Public Debt in FY 2007. 

Public Debt was unable to locate another federal host for FedSource in FY 2008 and 

began the process to fully transition them out of the Fund by FY 2009. The 

Consolidated/Integrated Administrative Management budget activity includes residual 

program and closeout activities for FY 2009 and is being discontinued in FY 2010 as the 

transition will be substantially complete. 

Public Debt Franchising-FedSource’s priorities over the next year are to: 

• ensure a smooth transition to other providers for customers and vendors 
TFF - 4 

• assist employees with job placement and provide separation assistance 

• keep the cost of the closeout to a minimum 

Financial Management Administrative Support Services – Includes Public Debt 

Franchising- Administrative Resources Center (ARC)

For the past 12 years, ARC has provided federal agencies with common administrative 

support in the areas of accounting, procurement, travel, human resources, and 

information technology. With a focus on excellence and superior service, ARC’s mission 

is to advocate “good government” by improving overall effectiveness through the 

delivery of responsive and cost effective administrative support to its customers. In 

addition to high quality administrative support, benefits are also realized by improving 

customers’ ability to effectively discharge their mission. 

In FY 2008, Public Debt issued a commercial contract for hosting services to improve 

scalability and stabilize costs. Upon issuing the award a project was initiated to begin 

migrating the current Oracle E-Business Suite platforms to the commercial host. 

ARC’s priorities over the next two years include: 

• continue to work with the Financial Management Line of Business (FMLoB) and 

Financial Systems Integration Office (FSIO) to define the role of Federal Shared 

Service Providers 

• complete the migration of the Oracle E-business suite to the commercial host 

• continue to review and streamline processes to strengthen controls and ensure high 

quality, value added services at the lowest possible cost 

Financial Systems, Consulting and Training – Includes the Public Debt FranchisingFederal Consulting Group (FCG) and Treasury Agency Services (TAS)

During FY 2008, Treasury decided to transition out of the Financial Systems, Consulting 

and Training services operated by FCG and TAS. Management and operations of FCG 

was transferred to Public Debt with guidance to transfer FCG to another host or close out 

the business activity in FY 2009. In addition, the Fund worked with TAS’s host, FMS, to 

withdraw TAS from the Fund in FY 2009. 

Public Debt was successful in obtaining a new federal host for FCG and transitioned the 

business out early in FY 2009. For FY 2009, residual program and closeout activities are 

reported in the Financial Systems, Consulting and Training budget activity. However, 

the budget activity is being discontinued in FY 2010 as all activities will be substantially 

complete. 

FCG & TAS priorities over the next year are to: 

• ensure smooth transitions to new federal hosts 

• keep the cost of the transition to a minimum 
TFF - 5 

1B – Program History and Future Outlook 

The Government Management Reform Act of 1994 (GMRA) authorized the 

establishment of six Franchise Fund Programs within the Federal Government. The 

franchise concept was built on OMB’s 12 operating principles for business-like 

organizations: 

• Competition Between Providers 

• Customers Exit Voluntarily 

• Full Cost Recovery 

• Ability to Handle Surges in Business 

• FTE Accountability 

• Initial Capitalization 

• Dynamic Adjustments 

• Cessation of Activities 

• Clear Organizational Structure 

• Service Oriented 

• Measured Performance 

• Benchmarked Performance 

In 1996, OMB designated the Department of the Treasury as one of the six Executive 

Branch agencies authorized to establish a franchise fund program. The Treasury 

Franchise Fund began operations in 1997 with the following six Franchise Business 

Activities (FBA): 

• Center for Applied Financial Management 

• Federal Quality Consulting Group 

• Go-To.Gov 

• FBA-Central 

• FBA Seattle 

• FBA-West 

Over the past decade, many new Franchise Business Activities have joined the Fund. 

Business entities, such as the Rocky Mountain Regional CASU and the Administrative 

Resource Center, sought out the Treasury Franchise Fund for the management 

flexibilities offered. At the same time, businesses have left the Fund. Businesses such as 

the Inspector General Auditors Training Institute left the Fund because they could not 

meet the Fund’s business benchmarks. Also during this time, several businesses 

consolidated to form new Franchise Business Activities within the Fund. For example, 

FedSource was created by consolidating several Franchise Business Activities that 

provided similar service lines. 

As businesses have come and gone, the size of the Fund changed over the years. The 

Fund evolved in terms of the number of businesses, amount of revenue earned, and the 

number of FTEs supported. The Fund’s original six businesses had less than 80 FTEs 

and earned $38 million of revenue in the first year of operation. By the end of FY 2008, 
TFF - 6 

the Fund had 769 FTEs, and earned revenue of $220 million. For FY 2009, we are 

projecting revenue to decrease to $160 million and 982 FTEs. The decrease in revenue is 

due to the closeout of FedSource and transfer activities of FCG and TAS. These 

reductions are offset somewhat by an increase in ARC’s Information Technology 

services, which also accounted for the increase in FTE. 

Demonstrated Success – Eliminating Duplication

Shared Platform and Services: 

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

systems by providing access to an integrated system platform for accounting, travel, 

procurement, human resources, and information technology services. In addition, as a 

shared service provider ARC provides many customers with value added services, such 

as transaction processing and financial reporting. ARC, a federal Center of Excellence 

for Financial Management, now provides: 

• 31 organizations with accounting services 

• 38 organizations with travel services 

• 41 organizations with procurement services 

• 28 organizations with personnel services 

• 25 organizations with information technology services 

The consolidation of these federal customers onto a shared systems platform provides 

substantial savings to the federal government. Savings are achieved through lower 

system license costs due to volume discounts, operations and maintenance cost sharing 

opportunities and system enhancements and upgrades to FSIO certified versions of the 

software simultaneously, as opposed to each organization managing their upgrade 

independently. In addition to cost savings, many customers receive other quality, value 

added services provided through standardized business processes that ensure compliance 

with applicable laws, rules and regulations. 

The Department of the Treasury provides the most significant success story for shared 

services and platforms. In the past, Treasury had a decentralized administrative service 

environment, where 15 different Bureaus and organizations ran their own accounting, 

procurement, and travel systems on various platforms. Each organization trained separate 

staffs to manage their systems and process their transactions. Through ARC, Treasury 

has moved to a shared services environment where 12 of the 15 entities share financial 

management systems on a single integrated platform. In addition, many of the 

organizations are taking advantage of ARC’s value added services, including transaction 

processing and financial reporting. 

Demonstrated success –Timeliness and Accuracy

Timely Financial Information: 

The Administrative Resource Center (ARC) has always been among Treasury's best in 

quality and timeliness of financial reporting. ARC strives to set the example for 
TFF - 7 

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 books five business days after yearend, 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. The Treasury Franchise Fund has received 12 straight “clean” 

audit opinions. Externally, ARC has assisted customers in achieving clean audit opinions 

and also maintains an exceptional internal control structure. Each year ARC undergoes a 

Type II SAS-70 audit that verifies our compliance with effective internal controls. 

During FY 2008, we received an unqualified opinion on our SAS-70 audit for the 6th 

consecutive year. The SAS-70 results enhances customer confidence in ARC’s systems 

and services and reduces the agencies annual financial statement audits costs as auditors 

rely on the SAS-70 audit work. 

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. 

Future Outlook: 

Through FY 2010 the Fund will maintain its commitment to excellence and will continue 

to meet or exceed all strategic goals and benchmarks. With the loss of the FedSource, 

FCG and TAS business lines in FY 2009, the Fund will look to expand existing service 

lines offered by ARC and explore opportunities to add other value added, marketable 

administrative services. For example, over the past few years ARC’s information 

technology service line has become a leader in the federal government in the area of 

identity management (servicing nearly 40% of the federal government) and were recently 

selected by as a federal shared services provider for the Information Systems Security 

Line of Business (ISSLoB). In addition, ARC will continue to provide value to Treasury 

and non-Treasury agencies by providing cost sharing opportunities and ensuring 

compliance through standardized systems and business processes. 

Quantifying High Performance and Cost Savings: 

The Treasury Franchise Fund plans to expand its performance measurement with an 

emphasis on cost savings/containment and providing services at the lowest possible cost. 

We have identified improved performance measurement in the areas of financial 

management and service delivery as key objectives in our strategic plan. This will 
TFF - 8 

include not only measuring our performance against the high standards that we set for 

ourselves, but also identifying relevant industry benchmarks that can be used to evaluate 

our performance against that of others in the marketplace. 

1C – Industry Outlook 

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

Fund anticipates further growth in this sector due to OMB’s Line of Business (LOB) 

initiatives. 

There is tremendous synergy between the business model established by the Treasury 

Franchise Fund over 12 years ago and recent OMB initiatives. Each model supports the 

concept of sharing costs across agencies to reduce each entity’s cost burden, especially 

capital investments in systems. In addition, most of the Lines of Business use the 

concept of competition to keep the costs of service providers to a minimum and to allow 

customer agencies to shop around for the service provider that best satisfies their needs. 
TFF - 9 

Section 2 – Budget Adjustments and Appropriation Language 

2.2 – Operating Levels Table 

Bureau: Treasury Franchise Fund FY 2008 

Obligated

FY 2009 

Estimated

FY 2010 

Estimated

% Change 

FY 2009 

to FY 2010

 

FTE 769 982 965 -1.73%

Object Classification: 

11.1 - Full-time permanent 48,129 65,578 66,356 1.19%

11.3 - Other than full-time permanent 487 529 540 2.08%

11.5 - Other personnel compensation 2,207 2,813 2,774 -1.39%

12 - Personnel benefits 14,933 19,357 19,672 1.63%

13 - Benefits for former personnel 248 0 0 0.00%

21 - Travel and transportation of persons 1,020 1,260 1,270 0.79%

22 - Transportation of things 504 117 121 3.42%

23.1 - Rental payments to GSA 1,204 357 3 -99.16%

23.2 - Rental payments to others 512 866 816 -5.77%

23.3 - Comm, utilities, and misc charges 1,984 4,123 4,247 3.01%

24 - Printing and reproduction 45 35 36 2.86%

25.1 - Advisory and assistance services 9,499 3,088 2,559 -17.13%

25.2 - Other services 172,904 18,996 8,567 -54.90%

25.3 - Other purchases of goods and services from 

Govt. accounts 

30,990 30,768 30,351 -1.36%

25.7 - Operation and maintenance of equip 2,317 2,784 2,868 3.02%

26 - Supplies and materials 417 1,072 1,100 2.61%

31 - Equipment 3,566 8,492 6,685 -21.28%

32 - Land and structures 23 0 0 0.00%

42 - Insurance claims and indemnities 0 1 1 0.00%

43 - Interest and dividends 15 2 2 0.00%

Total Budget Authority $291,004 $160,238 $147,968 -7.66%

 

Budget Activities: 

Consolidated/Integrated Administrative Management 180,361 11,293 0 -100.00%

Financial Management Administrative Support 

Services 

96,952 146,828 147,968 0.78%

Financial Systems, Consulting and Training 13,691 2,117 0 -100.00%

Total Budget Authority $291,004 $160,238 $147,968 -7.66%

 
TFF - 10 

2.3 – Resource Detail Table 

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Budgetary Resources:

Spending Authority / Offsetting Collections

Consolidated/Integrated Admin. Mgt. 87,932 -119,668 Discontinued N/A

Financial Mgt. Admin. Support Services $96,528 $145,789 $148,953 2.17%

Financial Systems, Consulting & Training 15,209 -8,090 Discontinued N/A

Total Spending Authority / Offsetting Collections $199,669 $18,031 $148,953 726.09%

Reimbursable Obligations Incurred

Consolidated/Integrated Admin. Mgt. 56 180,361 11,293 Discontinued N/A N/A

Financial Mgt. Admin. Support Services 681 $96,952 982 $146,828 965 $147,968 0.00% 0.78%

Financial Systems, Consulting & Training 32 13,691 2,117 Discontinued N/A N/A

Total Obligations Incurred 769 $291,004 982 $160,238 965 $147,968 -1.73% -7.66%

Net Results

Consolidated/Integrated Admin. Mgt. -92,429 -130,961 Discontinued N/A

Financial Mgt. Admin. Support Services -$424 -$1,039 $985 -194.80%

Financial Systems, Consulting & Training 1,518 -10,207 Discontinued N/A

Net Results -$91,335 -$142,207 $985 -100.69%

Estimated to FY 2010

FY 2008 FY 2009 FY 2010 FY 2009

Estimated

% Change

Estimated

(Dollars in Thousands)

2B – Appropriations Language and Explanation of Changes 

The Treasury Franchise Fund receives no appropriated funds from Congress. 

2C – Legislative Proposals 

The Treasury Franchise Fund has no legislative proposals for FY 2010. 
TFF - 11 

Section 3 – Budget and Performance Plan

This table lists all FY 2010 resources by strategic goal, objective and outcome outlined in 

the FY 2007-2012 Treasury Department Strategic Plan. The Treasury Strategic Plan is a 

corporate level plan for the Department that provides a description of what the agency 

intends to accomplish over the next five years. 

For detailed information about the FY 2007-2012 Treasury Strategic Plan, please go to: 

http://www.treasury.gov/offices/management/budget/strategic_plan.shtml

3.1 – Budget by Strategic Outcome 

Dollars in Thousands 

Treasury Strategic Goal FY 2009 FY 2010 Percent

President's Budget Baseline Change

 Treasury Strategic Outcome AMOUNT AMOUNT AMOUNT 

 Aligned organization 160,238 147,968 -7.7%

Total $160,238 $147,968 -7.7%

3A – Consolidated/Integrated Administrative Management (No funding): This 

Budget Activity consists of only one Franchise Business Activity, Public Debt 

Franchising-FedSource. 

The mission of FedSource was 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 focused on contract support 

services and copier/printer management. 

Treasury decided to transition out of the interagency acquisition business operated by 

FedSource and transferred management and operations to Public Debt in FY 2007. 

Public Debt was unable to locate another federal host for FedSource in FY 2008 and 

began the process to fully transition them out of the Fund by FY 2009. The 

Consolidated/Integrated Administrative Management budget activity includes residual 

program and closeout activities for FY 2009 and is being discontinued in FY 2010, as the 

transition will be substantially complete. 
TFF - 12 

3.2.1 – Consolidated/Integrated Administrative Management Budget and 

Performance Plan 

Consolidated/Integrated Administrative Management Budget Activity

FY 2006 FY 2007 FY 2008 FY 2009

FY 

2010

Resource Level Obligated Obligated Obligated Estimated

Estimat

ed

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

 Reimbursable Resources $540,586 $419,041 $180,361 $11,293 $0

Total Resources $540,586 $419,041 $180,361 $11,293 $0

Budget Activity Total $540,586 $419,041 $180,361 $11,293 $0

Consolidated/Integrated Administrative 

Management Budget Activity

 Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Actual Actual Actual Target Target

Customer Satisfaction Index - 

Consolidated/Integrated Administrative Mngmnt 

(%)(Oe) 

 51.00 0.00 Discontinued Discontinued Discontinued

Customer satisfaction approval rating-Financial 

Management Administrative Support Services 

(%) (Ot) 

 75.00 .00 Discontinued Discontinued Discontinued

Operating expenses as a percentage of revenue--

Consolidated/Integrated Administrative 

Management (%)(E) 

 4.00 4.30 17.70 Discontinued Discontinued

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

Description of Performance:

Since the decision to close-out the FedSource business line was made, all efforts have 

been focused on 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 targets are not applicable to the Public Debt 

Franchising – FedSource business line. 

In FY 2008, FedSource accounted for approximately 50 percent of the Fund’s gross 

revenue. Accordingly, closing the business line reduces the Franchise Fund’s budget 

estimates for FY 2009 and FY 2010. In addition, it is estimated that FedSource 

administrative costs will again exceed our performance target in FY 2009 as customer 

accounts and the remaining offices are closed. FedSource ended FY 2008 with a $22.1 

million loss and is estimated to lose an additional $3 million in FY 2009 as the closeout is 

completed. These losses, and any unforeseen claims and disputes, will be funded using 

FedSource’s operating reserves. 
TFF - 13 

3B – Financial Management Administrative Support Services ($147,968,000 from 

reimbursable programs): This Budget Activity consists of only one Franchise Business 

Activity, Public Debt Franchising-ARC. 

The Financial Management Administrative Support Activity supports the President’s 

Management Agenda and furthers “good government” by standardizing administrative 

financial systems and processes required to operate federal organizations. Value is 

provided through economies of scale in systems and operating costs and other high 

quality, value added services. As a Center of Excellence for Financial Management, 

ARC provides traditional administrative support functions with a focus on accounting, 

procurement, travel, human resources, and information technology services. This 

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

increasing demands for their services and the level of satisfaction expressed by their 

customers. 

3.2.2 – Financial Management Administrative Support Services Budget and 

Performance Plan 

Financial Management Administrative Support Services Budget Activity

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Resource Level Obligated Obligated Obligated Estimated Estimated

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

 Reimbursable Resources $88,735 $109,615 $96,952 $146,828 $147,968

Total Resources $88,735 $109,615 $96,952 $146,828 $147,968

Budget Activity Total $88,735 $109,615 $96,952 $146,828 $147,968

Financial Management 

Administrative Support Services 

Budget Activity

 Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Actual Actual Actual Target Target

Customer Satisfaction Index - Financial 

Mgmt Admin Support Services (%) (Oe) 

 75 0 97 80 80

Operating expenses as a percentage of 

revenue--Financial Management 

Administrative Support (%) (E) 

 17.00 15.10 3.60 12.00 12.00

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

Description of Performance:

ARC again showed that they are a viable franchise business in FY 2008 with a 5.6 

percent revenue increase over FY 2007. In addition, In FY 2009 and FY 2010, ARC 

projects a controlled growth as they complete the migration of the Oracle E-Business 

Suite to a commercial host and oversee the closeout of FedSource. 

In FY 2008, ARC accounted for approximately 44% of the Fund’s total revenue. For FY 

2009, we are projecting ARC’s resources to increase approximately 50 percent due to a 

budget neutral change made within Public Debt to simplify the accounting for shared 
TFF - 14 

information technology services. This change also resulted in a significant increase in 

reimbursable FTE in the Fund for FY 2009. 

For FY 2008, ARC met all of the Fund’s performance metrics. They improved the 

methodology used to allocate costs to service lines, resulting in meeting the Fund’s 

operating expense performance metric. In addition, in FY 2008, the Financial 

Management Line of Business (FMLoB) administered independent customer satisfaction 

surveys of the four federal shared service providers. Our overall satisfaction rate was 

97%, well above the SSP average of 85%. In addition to the FMLoB survey, ARC 

piloted a service line specific survey in FY 2008. The Human Resources service line was 

selected for the pilot and also received results of over 90 percent overall satisfaction. 

3C – Financial Systems, Consulting and Training (No funding): This Budget Activity 

consists of two Franchise Business Activities, Public Debt’s-Federal Consulting Group 

(FCG) and Treasury Agency Services (TAS) 

The mission of the FCG is to support other federal agencies transformation efforts to 

become more efficient, effective, citizen-centric, and results-oriented by providing 

performance measurement, consulting and executive coaching services. TAS’s mission 

is to help agencies improve the quality of government financial management through 

providing of information, advice, assistance, and training. 

During FY 2008, Treasury decided to transition out of the Financial Systems, Consulting 

and Training services operated by FCG and TAS. Management and operations of FCG 

was transferred to Public Debt with guidance to transfer FCG to another host or close out 

the business activity in FY 2009. In addition, the Fund worked with TAS’s host, FMS, to 

withdraw TAS from the Fund in FY 2009. 

Public Debt was successful in obtaining a new federal host for FCG and transitioned the 

business out early in FY 2009. The Financial Systems, Consulting and Training budget 

activity is reporting residual program and closeout activities in FY 2009 and is being 

discontinued in FY 2010. 
TFF - 15 

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

Financial Systems, Consulting and Training Budget Activity

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Resource Level Obligated Obligated Obligated Estimated Estimated

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

 Reimbursable Resources $13,133 $13,671 $13,691 $2,117 $0

Total Resources $13,133 $13,671 $13,691 $2,117 $0

Budget Activity Total $13,133 $13,671 $13,691 $2,117 $0

Financial Systems, Consulting and 

Training Budget Activity

 Measure FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Actual Actual Actual Target Target

Customer Satisfaction Index - Financial 

System, Consulting & Training 

 81.00 0.00 Discontinued Discontinued Discontinued

Operating expenses as a percentage of 

revenue--Financial Systems, Consulting 

and Training (%) (E) 

 10.00 6.70 6.49 Discontinued Discontinued

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

Description of Performance: 

Federal Consulting Group (FCG)/Treasury Agency Services (TAS)

FCG and TAS accounted for 5% and 1%, respectively, of the Fund’s total revenue in FY 

2008. FCG demonstrated steady revenue growth and profitability, while TAS ended with 

a decrease in gross revenue, increased operating costs and a net loss. For FY 2009, total 

budgetary resources for FCG and TAS will be reduced as customer’s 

commitments/relationships are transferred to their new federal hosts. 

Although TAS incurred increased operating costs in FY 2009, the Financial Systems, 

Consulting and Training budget activity easily achieved the Fund’s operating expense 

performance metric. However, since the decision to transition out of the budget activity 

was made all efforts have been focused on finding a new hosts, ensuring a smooth 

transition and minimizing close-out costs. Therefore, the Fund’s discontinued the 

customer satisfaction performance metric for this budget activity in FY 2008. 

 

For detailed information about each performance measure, including definition, 

verification and validation, please go to: 

http://www.treasury.gov/offices/management/dcfo/accountability-reports/2008-par.shtml
TFF - 16 

Section 4 – Supporting Materials 

4A – Human Capital Strategy Description 

Historically, the Fund has relied heavily on the business entity host Bureaus (Public Debt, 

Financial Management Service and Departmental Offices) to provide the basis of its 

human capital strategy. The decisions to transfer responsibility for management and 

operations of FedSource and Federal Consulting Group to Public Debt and transition 

Treasury Agency Services out of the Fund in FY 2009, results in the Fund following only 

Public Debt’s human capital strategy. 

Our strategic management of human capital is consistent with the our mission, vision and 

priorities and supports the President’s Management Agenda, Treasury’s strategic goal, 

and those of Public Debt. We follow Public Debt’s comprehensive recruitment program, 

have embraced Public Debt’s human capital strategy of operating a values-based 

organization and utilize the full range of pay flexibilities to recruit and retain high quality 

candidates with the skills necessary to accomplish our mission. In addition, the Fund 

fosters a learning culture that provides employees at all levels with opportunities for 

continuous development.

4B – Information Technology Strategy 

Historically, the Fund has relied on the business entity host Bureaus (Public Debt, 

Financial Management Service and Departmental Offices) for information technology 

(IT) strategic planning specific to their service lines. The decisions to transfer 

responsibility for management and operations of FedSource and Federal Consulting 

Group to Public Debt and transition Treasury Agency Services out of the Fund in FY 

2009, results in the Fund following only Public Debt’s information technology strategy. 

 

Public Debt’s Capital Planning and Investment Control program is a disciplined, 

integrated process that addresses system prioritization of new and existing IT 

investments, risk management, long-range planning, business objectives, alternative 

analysis and governance. Public Debt’s quarterly enterprise architecture reviews ensure 

alignment of its IT investments to the strategic enterprise direction of Treasury and 

identify potential duplication of systems. By tracking and reporting the progress of each 

investment and the performance measures achieved each quarter, Public Debt ensures its 

IT system portfolio is well managed, cost effective and supports their strategic goals. 

4.2 –Program Assessment Table 

The Treasury Franchise Fund has not received a program assessment. 

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

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