WORKING CAPITAL FUND
The Working Capital Fund (WCF) was established by Public Law (P.L.) 101-512 (November 5, 1990), as codified in 43 U.S.C. 50a. The fund was originally established to support the Washington Administrative Service Center and to support the replacement of the USGS mainframe computer, telecommunications equipment, and related Automated Data Processing equipment. Congress later expanded the existing Telecommunications Amortization Fund to establish the USGS Working Capital fund (WCF) by P.L. 103-332, dated September 30, 1994, which enabled USGS to use the WCF to fund laboratory modernization and operation, facilities improvements, publications, scientific equipment, and other types of equipment replacement.
The two operating components of the working capital fund are capital investments and fee-for-service operations:
Capital Investments:
A key purpose of the WCF is to plan for long-term capital investments and accumulate the required funds over several fiscal years. The USGS is authorized to use the WCF to invest funds from appropriations and/or reimbursable agreements, without fiscal year limitations, for materials, supplies, telecommunications and other equipment and facilities renovations in support of USGS programs and other agencies of the Federal Government. Normal operating expenses may not be funded through the WCF. All investments and expenditures from a WCF investment component must be documented in an approved, multi-year Investment Plan (IP). Investments must occur, at a minimum, in two fiscal years before acquisition can occur, and are expected to be evenly balanced over the time period defined in the IP. Prior year contributions may not be withdrawn from the WCF under any circumstances; they must be expended from the WCF for an approved capital investment. Current year contributions may be withdrawn, subject to appropriate approvals.
Fee-for-Service Operations:
WCF fee-for-service components operate in a business-like manner, recovering fees for services performed based on a fee schedule established through a rate-setting process. WCF fee-for-service components must operate in compliance with OMB Circular A-25, User Charges, and recover the full cost of goods, services, and resources provided to their customers. For each component, an annual budget and pricing schedule is required. User charges are required to be reviewed no less than biennially.
Change In Accounting Principle:
As described in Note 17 to the financial statements, in FY2003, USGS implemented a change in accounting principle with regard to the accounting for resources directed to the WCF. This was done to be consistent with the new posting models that were issued by the Treasury that are more preferable given the nature of the USGS WCF activities. The primary effect of the change on the WCF financial statements was to increase cumulative results of operations by approximately $69 million and reduce deferred revenue by approximately the same amount.
U.S. Department of the Interior, U.S. Geological Survey
URL: http://pubsdata.usgs.gov/pubs/03financial/html/wcf.html
Maintained by Eastern Publications Group
Last modified: 16:28:34 Tue 22 Nov 2016
Privacy statement | General disclaimer | Accessibility