Scenario 5 .0 Working Capital Fund (WCF)

1. Scenario 5.0 Working Capital Fund (WCF) “Demonstrate how the tool supports the budget formulation process for the Working Capital Fund (WCF).”

2. 5.1 Demonstrate the tool’s ability to collect annual cost and revenue data by customer (to understand customer consumption as well as the costs of providing centralized and shared services).. BFEM Methods • Cost data may be managed like any other budget formulation process • Treat accounts as organizations within Office of the Secretary • Zero-based or incremental • Summary or detailed • Revenue may be handled as an allocation Customers using Method • None Demonstration • DOI Sample

3. 5.1 Demonstrate the tool’s ability to collect annual cost and revenue data by customer (to understand customer consumption as well as the costs of providing centralized and shared services).. Use GDPs to capture WCF cost data Four GDPs to reflect each billing method

4. 5.1 Demonstrate the tool’s ability to collect annual cost and revenue data by customer (to understand customer consumption as well as the costs of providing centralized and shared services).. Use allocation to capture customer revenue and generic attributes for text

5. 5.2 Demonstrate the tool’s billing distribution method (i.e., how the tool calculates a central bill request for each Bureau/Office). BFEM Methods • Develop a report that pulls customer allocation item values and summarizes them. Enhancement in Progress (Due Sep 1) • Allocation redesign will create ‘click on” view of totals for each customer Customers using Method • None Demonstration • Covered in 5.1

6. 5.3 Demonstrate how the tool supports the inclusion of Working Capital Fund charges into each Bureau/Office's fixed costs. BFEM Methods • Need to define a budget formulation method that clearly identifies WCF charges in the Bureau’s/Office’s request • Develop a report that compares WCF revenue with WCF expenses in Bureau/Office requests Customers using Method • None Demonstration • Discussion

7. 5.4 Demonstrate the tool’s ability to perform a data validation/reconciliation check between each Bureau/Office’s central bill request and the budgeted amount included in the Greenbook. BFEM Methods • Develop a comparison report that pulls data from both Bureau/Office central bill request and the green book Customers using Method • None Demonstration • Show DOI sample

8. 5.5 Demonstrate the tool’s ability to develop a five-year strategic view of WCF outyear projections. BFEM Methods • Formula GDP creates the ability to generate outyear projections • Can make projects as simple or complex as desired • Easy to change assumptions Customers using Method • None, Demonstration • Show WCF out-year projections

9. 5.5 Demonstrate the tool’s ability to develop a five-year strategic view of WCF outyear projections. Configure Formula GDPs to make projections. It is possible to use complex formulas to make projections. Use preference Profile to display out-year GDPs in worksheet

10. 5.6 Demonstrate and/or discuss how the tool supports, or could be configured to support, the use of various overhead rate structures. BFEM Methods • Establish cost and distribution methodology for each overhead factor • Executive leadership and finance by $ • Rent by square foot • Human resources by FTE • Spread cost to WCF accounts as GDP limits • Create a formula GDP for each cost factor that pulls in all the account revenue allocation items • The formula GDP totals will compare the cost to the revenue and show red if it is not in balance Customers using Method • None Demonstration • DOI Sample