EPA Order 2570.1

Classification No: 2570.1

Approval Date: 2/13/97

WORKING CAPITAL FUND

1. PURPOSE. This Order establishes the Agency's Working Capital Fund (WCF) and associated policies. The Fund provides common administrative support services to Agency customers which, consistent with enabling legislation, can be provided most economically and efficiently through centralized coordination, direction and supervision.

2. AUTHORITY. This Order is issued pursuant to Section 403 of the Government Management Reform Act (GMRA) of 1994, Public Law 103-356, and the authorization contained in EPA's 1997 Appropriations Act, Public Law 104-204, which establishes EPA's WCF as a franchise fund pilot (for five years) and authorizes the Administrator to provide services through the Fund.

3. SCOPE. The WCF policies apply to all customers of the Fund and all WCF Activity service providers.

4. PROCEDURES. The Fund operates in accordance with EPA and Federal policies, procedures and guidelines, including those of the Office of Management and Budget (OMB), Treasury, Federal Accounting Standards Advisory Board (FASAB), and Joint Financial Management Improvement Program (JMFIP). The Fund's accounting system also meets Federal financial management standards. The WCF Board has the authority to adopt other procedures and guidance and make appropriate recommendations to the Chief Financial Officer (CFO) for approval.

5. RESPONSIBILITIES.

a. CFO. The Agency's CFO oversees development and implementation of WCF policy and systems. The CFO makes final WCF decisions and is ultimately responsible for the financial health of the Fund. The CFO also approves WCF rates and the addition or elimination of WCF services to or from the Fund based on recommendations made by the WCF Board and provides final ruling on appeals that cannot be resolved at a lower level.

b. WCF Board. The WCF Board is an advisory body to the CFO. It provides policy and planning oversight and advises the CFO relative to the financial condition of the Fund. The Board is chaired by the Deputy CFO. Board membership consists of senior executives from the Headquarters offices and from both the lead and backup lead Regions for Management, usually at the Deputy Assistant Administrator (DAA) and Assistant Regional Administrator (ARA) levels. Specific membership is delineated in the WCF Board Charter and also may include at-large regional representatives.

c. WCF Staff. The WCF Staff is a team located in the Immediate Office of the Office of the Comptroller (OC). The WCF Manager serves as the team leader of the Staff which reports to the Comptroller and provides overall management and coordination of EPA's WCF and support for the WCF Board. Responsibilities include overseeing management of Fund operations, coordinating formulation of the WCF budget and monitoring execution, and acting as liaison to the WCF service providers and customers.

d. WCF Activity Managers. WCF Activity Managers, designated by the appropriate Office Director, have management responsibility for providing service delivery to the customer community. The Activity Managers are responsible for managing day-to-day operations and assuring the orderly and business-like management of their activities. The CFO delegates authority to WCF Activity Managers to accept WCF Service Agreements (SAs) and thereby obligate program office funds on the Service Agreements.

e. WCF Customers. WCF customers are EPA Headquarters and Regional offices and once franchising begins, can include other Federal agencies. Customers determine service requirements, plan and budget for WCF services, originate WCF Service Agreements, monitor consumption of WCF services and provide feedback on service quality.

f. WCF Customer Advisory Group. This group is comprised of senior resource managers, program managers and technical staff, including Regional and Headquarters budget and finance managers and Information Resource Management (IRM) officials. The Group is chaired by a program office and provides a customer focus at an operational level. It provides advice and recommendations to the WCF Board and WCF service providers.

6. DEFINITIONS.

a. Working Capital Fund. A funding mechanism authorized by law to finance a cycle of operations in which the costs for goods or services provided are charged to the users.

b. Franchise Fund. Similar in concept to a WCF, services are also provided externally to other Federal entities.

c. WCF Activity Service Provider. An Agency organizational unit that provides goods or services to customers on a reimbursable basis through the Fund.

d. WCF Service Agreement. A document representing the customer agreement to fund ordered WCF services at a specified dollar amount, including lines of accounting, and the service provider agreement to provide those services. Upon acceptance of a Service Agreement by the WCF Activity Manager, the WCF Activity provides the service consistent with the Service Agreement on a reimbursable basis.

7. ACCOUNTABILITY. All financial management activities of the WCF will be conducted at the highest level of integrity through full disclosure of current and accurate financial information, along with complete records of correspondence and decisions. All actions and financial activities of the WCF will be subject to independent review and audit either directly by, or under the supervision of the Office of the Inspector General.

                                                            Approved:__________
                                                                          David J. O'Connor
                                                            Date:___________

EPA Order 2570.1

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