Treasury Franchise Fund 

Mission Statement 

To offer world-class administrative solutions that provides value to Treasury and other 

federal customers while allowing them to concentrate on their core missions. 

Program Summary by Budget Activity 

Dollars in Thousands 

FY 2007 FY 2008 FY 2009

Treasury Franchise Fund Obligated Estimated Estimated $ Change % Change 

Consolidated/Integrated Administrative 

Management $419,041 $189,763 $0 ($189,763) -100.00%

Financial Management Administrative Support 

Services 109,615 113,819 122,284 8,465 7.44%

Financial Systems, Consulting and Training 13,671 12,923 13,727 804 6.22%

Total Resources $542,327 $316,505 $136,011 ($180,494) -57.03%

FY 2009 Priorities 

• Reduce the cost of administrative services for Treasury through sharing costs with other 

agencies. 

• Develop quantitative performance measures that demonstrate cost savings to Treasury and 

other agencies. 

• Increase the efficiency and effectiveness of Treasury’s administrative business processes. 

• Enhance the system environment of Treasury’s administrative operations by eliminating 

duplication and reducing information technology support costs. 

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

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

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

1B – Program History and Future Outlook................................................................... 4 

1C – Industry Outlook .................................................................................................. 7 

Section 2 – Budget Adjustments and Appropriation Language................................... 8

2.2 – Operating Levels Table........................................................................................ 8 

2.3 – Resource Detail Table ....................................................................................... 9 

2B – Appropriations Language and Explanation of Changes....................................... 9 

2C – Legislative Proposals ........................................................................................... 9 

Section 3 – Budget and Performance Plan ................................................................... 10

3.1 – Budget by Strategic Outcome ............................................................................ 10 

3A – Consolidated/Integrated Administrative Management ..................................... 10 

3.2.1 – Consolidated/Integrated Admin. Mgmt Budget and Performance Plan ......... 11 

3B – Financial Management Administrative Support Services................................. 11 

3.2.2 – Financial Mgmt Admin. Support Services Budget and Performance Plan..... 12 

3C – Financial Systems, Consulting and Training .................................................... 13 

3.2.3 – Financial Systems, Consulting and Training Budget and Performance Plan . 14 

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

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

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

4.2 – PART Evaluation Table..................................................................................... 16 
 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 its customers 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, 

simplified rules, 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 2007, Treasury transferred management and operations of the FedSource 

franchise business activity from its host, Departmental Offices, to the Bureau of the 

Public Debt. In FY 2008 the Treasury Franchise Fund is comprised of three Franchise 

Business Activities. 

• Bureau of the Public Debt (BPD) Franchising (FedSource and the Administrative 

Resource Center) 

• Federal Consulting Group (FCG) 

• Financial Management Service Treasury Agency Services (TAS) 

The Fund reports the activity of the three Businesses in three Budget Activities that 

represent the various service offerings. 

Consolidated/Integrated Administrative Management – Includes BPD FranchisingFedSource

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

FedSource by the end of FY 2008 because it was determined the work was outside the 

scope of Treasury’s core mission. Efforts to relocate the business to another government 

agency were unsuccessful which led to steps being taken to shut down FedSource. To 

close out the business line, management and operational responsibility of FedSource was 

transferred from its previous host, Departmental Offices, to the Bureau of the Public Debt 

in FY 2007. In addition, the Fund is discontinuing the Consolidated/Integrated 

Administrative Management budget activity in FY 2009. Estimates of any residual 

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business are included in the Financial Management Administrative Support Services 

budget activity for the host organization (BPD Franchising - ARC) 

During FY 2008, the BPD Franchising-FedSource’s priorities are to: 

• Ensure a smooth transition for customers and vendors 

• Provide employees with job placement and separation assistance 

• Keep the cost of the closeout to a minimum 

Financial Management Administrative Support Services – Includes BPD FranchisingAdministrative Resources Center (ARC)

For the past 11 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. 

ARC’s priorities over the next two years are 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 

• Upgrade infrastructure to meet Federal Shared Service Provider demands 

• 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 Federal Consulting Group 

(FCG) and Treasury Agency Services (TAS)

The mission of the Federal Consulting Group (FCG) is to provide services to federal 

agencies to support their efforts to become more efficient, effective, citizen-centric, 

results-oriented, and market based. FCG’s mission directly supports the President’s 

vision for government reform and is guided by these principles. FCG works with federal 

agencies to improve the services and performance they deliver to or on behalf of the 

American people so that these organizations can contribute to conditions of prosperity 

and stability. 

The FCG’s three business lines--Consulting, Executive Coaching, and Performance 

Measurement and Customer Satisfaction--provide federal agencies with innovative 

solutions using the latest management and information technology tools, techniques, and 

best practices. FCG provides guidance to meet the requirements of the President’s 

Management Agenda, the Government Performance and Results Act, and the Program 

Assessment Rating Tool. FCG assists federal agencies in meeting performance 

improvement mandates while simultaneously accomplishing their core mission. 

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The Performance Measurement and Customer Satisfaction (PMCS) 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. Working with 

the University of Michigan, which provides access to the patented ASCI methodology, 

this business line compiles an annual benchmark of customer satisfaction for the federal 

government. Due to the emphasis on assessing and improving customer satisfaction with 

government agencies, this benchmark continues to rise and is nearly as high as customer 

satisfaction in the private sector. The PMCS area is also playing a key role in the 

evolution of electronic Government, a key element of the President’s Management 

Agenda. The use of the ACSI to continuously assess and improve the satisfaction of 

website visitors is increasing trust and confidence in government, expanding the use of 

federal websites, and reducing operational costs by encouraging citizens to use the 

internet to access federal information, services, and programs. 

FCG’s priorities over the next two years are to: 

• Continue to reduce administrative overhead costs 

• Continue to strengthen internal controls 

• Expand service offerings within business lines 

• Achieve Balanced Scorecard Performance Goals 

• Continue to achieve high customer service score through the use of the American 

Customer Satisfaction Index (ACSI) 

Treasury Agency Services (TAS) shares one common mission with the Financial 

Management Service (FMS) – to help agencies improve the quality of government 

financial management. TAS’ vision is to be the partner of choice for federal managers 

seeking financial management improvements and success. TAS’ strength is found in 

FMS’ expertise combined with an entrepreneurial perspective. TAS is a reimbursable 

source for information, advice, assistance, and training that reflect today’s environment 

and are customized to meet client agency requirements. These services provide the venue 

for linking program objectives with the best financial management practices. 

TAS has two major business lines. 

• The Consulting service line provides cash reconciliation services as well as the 

preparation of monthly and year-end reports. In addition, the Consulting service line 

provides financial management assistance, such as, operational reviews, internal

control reviews, financial reporting compliance reviews, standard general ledger 

conversions, strategic planning, and cost management. 

• The Financial Education service line offers open enrollment and agency specific 

financial courses, seminars, conferences and workshops. The focus of this education 

and training is to provide background, orientation, and skills in existing and new 

financial legislation, regulations, and practices. 

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TAS’ priorities over the next two years are to: 

• Gain internal support for future business in the Fund 

• Expand service offerings within FMS’ government-wide accounting initiative to help 

educate financial personnel across the government 

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 because of the financial 

flexibilities that were 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 

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

earned $38 million of revenue in the first year of operation. In FY 2007, the Fund had 

only 3 businesses, 769 FTE, and earned $519 million of revenue. With the closeout of 

FedSource in FY 2008, the largest revenue producer, the Fund is projecting FY 2009 FTE 

of 793 and revenues of $137 million. 

Demonstrated Success – Eliminating Duplication

Shared Platform and Services 

As a shared service provider the Administrative Resource Center (ARC) performs fullservice transaction processing and reporting for many customers. The establishment of 

the 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, ARC, a Center of Excellence for Financial 

Management, now provides: 

• 31 organizations with administrative accounting services 

• 39 organizations with travel services 

• 30 organizations with procurement services 

• 28 organizations with personnel services 

• 11 organizations with information technology services 

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

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

license costs and 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 

and reach compliance with the E-Government initiatives simultaneously as opposed to

each organization managing these projects independently. For example, ARC’s standard 

solution currently supports the following E-Government initiatives. 

• E-Travel – Integration exists between Northrup Gruman’s GovTrip system and core 

accounting system. 

• E-Payroll – Integration exists between all four payroll providers and core accounting 

and labor distribution systems. 

• Grants.gov – Integration exists between Department of Health and Human Services 

Payment Management System and core accounting system. 

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

environment. There were 15 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 

moved to a shared services environment where 12 of the 15 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. 

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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 

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 10 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 

SAS-70 audit that verifies the entire control structure from disbursement processing to 

financial reporting. The SAS-70 enhances customer confidence in ARC’s systems and 

services and reduces the agencies’ annual financial statement audit 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 2009 the Fund will maintain its commitment to excellence and will continue 

to meet or exceed all strategic goals and benchmarks. With the elimination of the 

FedSource business line at the end of FY 2008, the Fund will look to grow existing 

business lines and add other value added, marketable administrative services. In 

addition, the Business Activities will continue to provide value to Treasury and nonTreasury agencies by providing cost sharing opportunities and eliminating duplicate 

systems. 

Quantifying Cost Savings

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

emphasis on cost savings. In the past, the Franchise Business Activities have been 

challenged to demonstrate specific quantitative cost savings. Many times the effort 

TFF - 6 
necessary to capture and track specific quantitative cost savings is prohibitive. In other 

cases, baseline costs necessary for comparisons are known only to our customers. 

Customers are reluctant to share these costs with the businesses that provide them

services. The Franchise Fund and its businesses must provide incentives to its customers 

to share this cost data. It is imperative to demonstrate cost savings to Treasury and nonTreasury customers, as well as OMB, who manages the Line of Business initiatives.

The Fund also plans to expand its performance measurement on internal cost data. Cost 

data including transaction and process costs can be tracked to demonstrate cost savings. 

While it is difficult to compare this data to relevant industry standards because of the 

significant differences in cost accumulation, the data could be compared internally and 

tracked year-to-year to show progress. 

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 11 years ago and the recent initiatives being rolled out by OMB. 

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.

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Section 2 – Budget Adjustments and Appropriation Language 

2.2 – Operating Levels Table 

Dollars in Thousands

Bureau: Treasury Franchise Fund FY 2007 

Obligated

FY 2008 

Estimated

FY 2009 

Estimated

FTE 769 830 793

Object Classification:

 11.1 - Full-time permanent 46,940 52,037 50,514

 11.3 - Other than full-time permanent 434 503 498

 11.5 - Other personnel compensation 2,607 2,436 2,378

 11.8 - Special personal services payments 0 0 0

 12 - Personnel benefits 13,908 15,928 15,765

 13 - Benefits for former personnel 86 866 0

 21 - Travel and transportation of persons 1,317 1,621 1,437

 22 - Transportation of things 531 126 83

 23.1 - Rental payments to GSA 1,728 1,103 16

 23.2 - Rental payments to others 499 151 39

 23.3 - Comm, utilities, and misc charges 1,886 1,442 1,301

 24 - Printing and reproduction 94 109 86

 25 - Other contractual Services 0 0 0

 25.1 - Advisory and assistance services 15,084 10,108 9,207

 25.2 - Other services 417,001 193,932 25,778

 25.3 - Other purchases of goods and services from Govt. accounts 26,098 25,366 23,313

 25.4 - Operation and maintenance of facilities 128 89 92

 25.5 - Research and development contracts 0 0 0

 25.6 - Medical care 0 0 0

 25.7 - Operation and maintenance of equip 4,390 1,828 1,187

 25.8 - Subsistence and support of persons 0 0 0

 26 - Supplies and materials 941 489 426

 31 - Equipment 8,288 8,361 3,889

 32 - Land and structures 342 8 0

 33 - Investments and loans 0 0 0

 41 - Grants, subsidies, and contributions 0 0 0

 42 - Insurance claims and indemnities 0 1 1

 43 - Interest and dividends 25 1 1

 44 - Refunds 0 0 0

Total Budget Authority $542,327 $316,505 $136,011

Budget Activities:

 Consolidated/Integrated Administrative Management 419,041 189,763 0

 Financial Management Administrative Support Services 109,615 113,819 122,284

 Financial Systems, Consulting and Training 13,671 12,923 13,727

Total Budget Authority $542,327 $316,505 $136,011

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2.3 – Resource Detail Table 1/ 

(Dollars in Thousands)

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

Budgetary Resources:

Revenue / Offsetting Collections

 Financial Mgt. Admin. Support Services $107,615 $115,950 $123,000 6.08%

Consolidated/Integrated Admin. Mgt. 411,047 182,321 Discontinued N/A

Financial Systems, Consulting & Training 12,577 13,326 14,281 7.17%

Total Revenue / Offsetting Collections $531,239 $311,597 $137,281 -55.94%

Expenses

 Financial Mgt. Admin. Support Services 642 $109,615 729 $113,819 754 $122,284 3.43% 7.44%

Consolidated/Integrated Admin. Mgt. 105 419,041 65 189,763 Discontinued N/A N/A

Financial Systems, Consulting & Training 22 13,671 36 12,923 39 13,727 8.33% 6.22%

Total Expenses 769 $542,327 830 $316,505 793 $136,011 -4.46% -57.03%

Net Results

 Financial Mgt. Admin. Support Services -$2,000 $2,131 $716 -66.40%

Consolidated/Integrated Admin. Mgt. -7,994 -7,442 Discontinued N/A

Financial Systems, Consulting & Training -1,094 403 554 37.47%

Net Results -$11,088 -$4,908 $1,270 -125.88%

Estimated to FY 2009

FY 2007 FY 2008 FY 2009 FY 2008

Actual

% Change

Estimated

1/ To ensure consistency with the President's Budget, fiscal year 2007 actual amounts in Table 2.3 represent the budgetary 

resources and new obligations for the Fund. Other references to fiscal year 2007 actual amounts contained within the narrative

are based on the Fund's actual results of operations (revenue, expenses and net operating results).

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 2009. 

TFF - 9 
Section 3 – Budget and Performance Plan

This table lists all FY 2009 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 Outcome FY 2008 FY 2009 Percent

Estimated Estimated Change

AMOUNT AMOUNT AMOUNT 

 Aligned organization 316,505 136,011 -57.0%

Total $316,505 $136,011 -57.0%

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

Budget Activity consists of only one Franchise Business Activity, BPD FranchisingFedSource. 

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 support services and 

copier/printer management. 

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

FedSource by the end of FY 2008 because it was determined this work was outside the 

scope of Treasury’s core mission and independent audits identified several internal 

control weaknesses. Efforts to relocate the business to another government agency were 

unsuccessful which led to steps being taken to shut down FedSource. The Treasury 

Franchise Fund’s FY 2009 budget submission reflects the discontinuance of the 

Consolidated/Integrated Administrative Management budget activity. Estimates of any 

residual business are included in the host’s organization’s budget activity, Financial 

Management Administrative Support Services. 

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3.2.1 – Consolidated/Integrated Administrative Management Budget and 

Performance Plan 

Consolidated/Integrated Administrative 

Management Budget Activity

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Resource Level Obligated Obligated Obligated Estimated Estimated

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

 Reimbursable Resources $701,150 $540,586 $419,041 $189,763 $0

Total Resources $701,150 $540,586 $419,041 $189,763 $0

Budget Activity Total $701,150 $540,586 $419,041 $189,763 $0

Consolidated/Integrated Administrative

Management Budget Activity

 Measure FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Actual Actual Actual Target Target

Customer Satisfaction Index - 

Consolidated/Integrated Administrative 

Mngmnt (%)(Oe) 

 71% 51% 0% 74% n/a

Operating expenses as a percentage of 

revenue--Consolidated/Integrated

Administrative Management (%)(E) 

 4% 4% 4% 12% n/a

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

Description of Performance:

Since making the decision to close-out the FedSource business line, 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 will not be applied to the BPD Franchising – FedSource 

business line. 

In FY 2007, FedSource accounted for over 75% of the Fund’s gross revenue. 

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

estimates for FY 2008 and FY 2009. In addition, it is estimated that FedSource’s 

administrative costs will be significantly higher in FY 2008 as customer accounts and 

offices are closed. FedSource ended FY 2007 with a $2.5 million loss and it is estimated 

that they will lose an additional $7.4 million in FY 2008 as the closeout is completed. 

These losses and any unforeseen claims and disputes, will be covered using FedSource’s 

operating reserves. For FY 2009, the Fund has discontinued the Consolidated/Integrated 

Administrative Management budget activity. Estimates of any residual business are 

included in the host organization’s budget activity, Financial Management Administrative 

Support Services. 

3B – Financial Management Administrative Support Services ($122,284,000 from 

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

Activity, BPD Franchising-ARC. 

The Financial Management Administrative Support Activity supports the President’s 

Management Agenda and furthers “good government” by standardizing administrative 

TFF - 11 
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. 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 its services and the level of satisfaction 

expressed by its customers. 

As a Center of Excellence for Financial Management, ARC has delivered improvements 

in several areas. Overall, the number of federal administrative systems has been reduced. 

ARC’s integrated platform for accounting, travel, procurement, and personnel functions 

ensure that shared expectations are met and consistent accounting practices are used. 

In addition to improved service, consolidation of federal customers onto a shared systems 

platform offers the opportunity for overall savings for the federal government. Volume

discounts for items such as license and service agreements, together with a consolidated 

voice for changes and software improvements, mean better service for customers. 

Attention to software upgrades and information technology security initiatives also add to 

the benefits. 

3.2.2 – Financial Management Administrative Support Services Budget and 

Performance Plan 

Financial Management Administrative 

Support Services Budget Activity

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Resource Level Obligated Obligated Obligated Estimated Estimated

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

 Reimbursable Resources $74,850 $88,735 $109,615 $113,819 $122,284

Total Resources $74,850 $88,735 $109,615 $113,819 $122,284

Budget Activity Total $74,850 $88,735 $109,615 $113,819 $122,284

Financial Management Administrative 

Support Services Budget Activity

 Measure FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Actual Actual Actual Target Target

Customer Satisfaction Index - Financial Mgmt

Admin Support Services (%) (Oe) 

 71% 75% 0% 74% 74%

Operating expenses as a percentage of 

revenue--Financial Management 

Administrative Support (%) (E) 

 9% 17% 15% 12% 12%

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

Description of Performance:

ARC continued to demonstrate operations of a profitable franchise business in FY 2007. 

However, for FY 2008 and FY 2009, ARC estimates lower customer and revenue growth 

as they position themselves to support their role as a Federal Shared Service Provider and 

oversee the closeout of FedSource. 

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To measure customer satisfaction, the Fund uses the American Customer Satisfaction 

Index (ACSI). This advanced customer satisfaction measurement tool is exhaustive and 

provides actionable results. Due to the costs, ACSI measurements are not taken annually 

for each business. The Franchise Business Activities have the option of using internal 

customer satisfaction survey tools during years the ACSI is not used. Internal customer 

satisfaction survey scores are not officially tracked and reported because they use a 

different rating scale. Although ARC is reporting actual FY 2007 ACSI score of not 

applicable, an internal customer satisfaction survey was conducted, resulting in an overall 

customer satisfaction rate of 91 percent. 

3C – Financial Systems, Consulting and Training ($13,727,000 from reimbursable 

programs): This Budget Activity consists of two Franchise Business Activities, Federal 

Consulting Group and Treasury Agency Services. 

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

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

citizen-centric, and results-oriented. FCG’s three business lines - Measuring 

Performance and Customer Satisfaction, Consulting, and Executive Coaching - provide 

federal agencies with innovative solutions using the latest management and information 

technology tools, techniques, and best practices. 

• 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 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 Baldridge 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 mission of Treasury Agency Services (TAS) is to help agencies improve the quality 

of government financial management. TAS, hosted by the Financial Management 

Service, is a provider of information, advice, assistance, and training that is customized to 

meet today’s environment and client agencies’ requirements. 

TFF - 13 
3.2.3 – Financial Systems, Consulting and Training Budget and Performance Plan 

Financial Systems, Consulting and Training 

Budget Activity

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Resource Level Obligated Obligated Obligated Estimated Estimated

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

 Reimbursable Resources $12,250 $13,133 $13,671 $12,923 $13,727

Total Resources $12,250 $13,133 $13,671 $12,923 $13,727

Budget Activity Total $12,250 $13,133 $13,671 $12,923 $13,727

Financial Systems, Consulting and Training 

Budget Activity

 Measure FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Actual Actual Actual Target Target

"Customer Satisfaction Index - Financial 

System, Consulting & Training"

 71% 81% 0% 74% 74%

"Operating expenses as a percentage of

revenue--Financial Systems, Consulting and

Training (%) (E)" 

 11% 10% 7% 12% 12%

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

Description of Performance:

Federal Consulting Group (FCG)

FCG has been consistently earning a profit since its inception. FCG anticipates

controlled revenue growth from FY 2007 to FY 2009. The expansion of “Performance

Measurement and Customer Satisfaction” as FCG’s top business line has helped generate 

consistent revenue. 

FCG worked hard to keep operating costs to a minimum. As a result, they have 

consistently met the Fund’s operating percentage benchmark by keeping their operating 

costs less than 12 percent of their total revenue. This shows that FCG is running a lean 

organization and is placing emphasis on costs that directly impact the customer rather 

than overhead. 

FCG offers the American Customer Satisfaction Index (ACSI) as a tool for the federal 

government to measure customer satisfaction. It is only fitting that FCG maintains one of 

the highest indexed scores in the federal government. FCG received considerable 

feedback and actionable data from last year’s rating. As a result FCG chose not to 

undergo a new rating in FY 2007 until they could make changes and implement the 

action items from last year’s process. 

Treasury Agency Services (TAS)

TAS ended FY 2007 with a $75 thousand loss. TAS has struggled the last several years 

to break-even. It made significant strides in FY 2007 by reducing overhead costs. TAS 

reduced its rent costs in FY 2007 by $212,000. This helped TAS meet the Fund’s 

performance target of keeping its operating expenses below 12 percent of its total 

revenue. In FY 2007, TAS also reduced salaries and benefits by approximately $800,000 

and experienced a drop in revenue of almost 27 percent. The loss in FY 2007 was fully 

TFF - 14 
covered by TAS’ equity (almost $1 million) generated while in the Fund. TAS estimates 

positive net results in FY 2008 and FY 2009. 

TAS plans to increase revenue by offering more financial training classes, expanding 

marketing efforts, and developing new product lines such as providing agencies with 

training and assistance on Government-wide Accounting projects. 

TAS also decided not to perform an American Customer Satisfaction Index (ACSI) 

survey in FY 2007. They monitored customer satisfaction based on feedback from class 

participation and customer responses. TAS will participate with the other businesses next 

year to use the ACSI. TAS’ internal customer satisfaction rating was 84 percent for 

FY 2007. 

 

For detailed information about each performance measure, including definition, 

verification and validation, please go to: 

http://www.treasury.gov/offices/management/dcfo/accountability-reports/2007-par.shtml

TFF - 15 
Section 4 – Supporting Materials 

4A – Human Capital Strategy Description 

The Fund relies heavily on its host Bureaus (BPD, FMS, and DO) 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 FTE’s located in Parkersburg,

WV, the Fund has had a great deal of success recruiting highly qualified personnel. 

The Treasury Franchise Fund maintains its “EthicSmart” initiative that increases 

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.

4B – Information Technology Strategy 

The businesses in the Treasury Franchise Fund (TFF) use their host bureaus for 

information technology (IT) strategic planning. If the Fund developed crosscutting or 

corporate level IT investment needs, the Fund’s Advisory Board could function as an 

Investment Review Board (IRB). In this role, the Fund’s Advisory Board would monitor 

investment activity. All IT investments would 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 would consider/address 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 support the function more efficiently?

• 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 

consistent with Treasury’s enterprise architecture? 

4.2 – PART Evaluation Table 

The Treasury Franchise Fund has not received a PART Evaluation.

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

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

TFF - 16