Treasury Franchise Fund 

Program Summary by Budget Activity 

(Dollars in thousands) 

FY 2008 FY 2009 FY 2010 Budget Activity Obligated Estimated 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 (78.0%)

 Financial Systems, Consulting and Training $13,691 $2,117 $0 ($2,117) (100.0%)

Total Cost of Operations $291,004 $160,238 $147,968 ($12,270) (7.66%)

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 2010, 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. 

ARC is projecting a net increase in budgetary 

resources of 2 percent for FY 2010. The net 

increase is comprised of increases due to 

estimated inflation adjustments and anticipated 

new customers, and a decrease due in the 

assisted acquisition service line. 

Purpose of Program 

 

The Treasury Franchise Fund (the Fund) is a 

revolving fund that supplies financial and 

administrative services on a fee-for-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) is a federal shared service center and 

was recognized as a Center of Excellence in 

2005. 

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 2010, the Fund will 

maintain its commitment to excellence and 

will meet or exceed all applicable strategic 

goals and benchmarks. 

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. 

Department of the Treasury - Budget in Brief FY 2010 Page 77
Financial Management Administrative 

Support Services ($147,968,000 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. 

 

Financial Systems, Consulting and 

Training (No funding) In previous fiscal 

years, the Federal Consulting Group and 

TFF Performance by Budget Activity 

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010

Budget Activity Performance Measure Actual Actual Actual Target 

Met? Target Target

Consolidated/Integrated Operating expenses as a percentage of 

Administrative revenue –Consolidated/Integrated 

Management Administrative Management (%) (E) 

4.00 4.30 17.70 Yes N/A N/A 

Financial Management Operating expenses as a percentage of 

Administrative Support revenue—Financial Management 

Services Administrative Support (%) (E) 

17.00 15.10 3.60 Yes 12.00 12.00 

Financial Systems, Operating expenses as a percentage of 

Consulting and Training revenue—Financial Systems, 

Consulting and Training (%) (E) 

10.00 6.70 6.49 Yes N/A N/A 

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

Treasury Agency Services were 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 2010. 

Description of Performance 

 

The Treasury Franchise Fund (the Fund) has 

defined customer satisfaction and operating 

expenses as a percentage of revenue as key 

performance measurement areas. 

In FY 2008, all budget activities did not 

meet the Fund’s performance targets. 

Specifically, the Consolidated/Integrated 

Administrative 

Management activity (FedSource) failed to 

meet the operating expense performance 

target due to decreased revenue and 

increased operating costs caused by closeout 

activities. 

The Fund discontinued the customer 

satisfaction performance metric in FY 2008 

for the budget activities being closed out 

(FedSource, Federal Consulting Group and 

Treasury Agency Services) and discontinued 

all performance metrics for these activities 

in FY 2009. The remaining budget activity 

(Administrative Resource Center) exceeded 

all of the Fund’s performance metrics in 

FY 2008 and is expected to meet them in 

FY 2009 and FY 2010. 

Department of the Treasury - Budget in Brief FY 2010 Page 78