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FOREST SERVICE MANUAL
NATIONAL HEADQUARTERS (WO)
WASHINGTON, DC
FSM 6500 – FINANCE AND ACCOUNTING
CHAPTER 6580 – WORKING CAPITAL FUND
Amendment No.: 6500-2012-4
Effective Date: November 29, 2012
Duration: This amendment is effective until superseded or removed.
Approved: THELMA J. STRONG
Chief Financial Officer (CFO)
Date Approved: 11/19/2012
Posting Instructions: Amendments are numbered consecutively by title and calendar year.
Post by document; remove the entire document and replace it with this amendment. Retain this
transmittal as the first page(s) of this document. The last amendment to this title was
6500-2012-3 to FSM 6560.
New Document
6580
31 Pages
Superseded Document(s) by
Issuance Number and
Effective Date
6580 Contents
(Amendment 6500-99-1, 10/05/1999)
6580
(Amendment 6500-99-2, 10/05/1999)
3 Pages
27 Pages
Digest:
6580 - Updates chapter in its entirety to set forth direction for the Working Capital Fund. Refers
to the term “Working Capital Fund” by using the acronym “WCF” throughout the chapter.
WO AMENDMENT 6500-2012-4
EFFECTIVE DATE: 11/29/2012
DURATION: This amendment is effective until superseded or removed.
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Table of Contents
6580. 1 - Authority...................................................................................................................... 4
6580.11 - Statutory Authority ................................................................................................. 4
6580.12 - Application of Property Acts to Working Capital Fund ......................................... 5
6580.13 - Application of Appropriation Acts to Working Capital Fund ................................ 5
6580.2 - Objectives ..................................................................................................................... 5
6580.3 - Policy ............................................................................................................................ 6
6580.4 - Responsibility ............................................................................................................... 9
6580.41a - Chief Financial Officer ......................................................................................... 9
6580.41b - Director of Financial Policy.................................................................................. 9
6580.41c - Director of Financial Management Systems ......................................................... 9
6580.41d - Director of Acquisition Management ................................................................. 10
6580.41e - Washington Office, Staff Directors .................................................................... 10
6580.41f - Albuquerque Service Center - Budget and Finance, Director ............................. 10
6580.41g - Regions, Stations, Area, Institute, and Job Corps .............................................. 11
6580.5 - Definitions .................................................................................................................. 13
6580.6 - Fund Establishment .................................................................................................... 15
6580.61 - Inclusion of Qualified Programs ........................................................................... 15
6580.62 - Evaluation of Proposed Activities ........................................................................ 15
6580.7 - Approvals ................................................................................................................... 17
6580.71 - Department ........................................................................................................... 17
6580.72 - Washington Office ................................................................................................ 17
6580.73 - Requests for Approval .......................................................................................... 17
6580.74 - Removal of Program or Facility at One Location ................................................ 17
6580.8 - Financial Management ............................................................................................... 18
6580.81 - Financial Planning ................................................................................................ 18
6580.82 - Cash Flow Analysis .............................................................................................. 18
6580.83 - Outlay ................................................................................................................... 19
6580.84 - Revenue ................................................................................................................ 19
6581 - WORKING CAPITAL FUND ASSET ACQUISITION ......................................... 19
6581.1 - Financing Acquisitions Through the Working Capital Fund ..................................... 19
6581.2 - Criteria for Primary Purpose Financing of Asset Acquisition.................................... 20
6581.3 - Acquisition of Replacement Assets by the WCF ....................................................... 20
6581.4 - Acquisition of Assets for New or Expanded Programs .............................................. 21
6581.5 - Acquisition of Equipment From Excess ..................................................................... 21
6581.6 - Acquisition of Upgrades to Equipment ...................................................................... 21
6581.7 - Acquisition of Special Devices .................................................................................. 22
6582 - DISPOSITON OR DISPOSAL OF ASSETS ...................................................... 22
6583 - FLEET EQUIPMENT SERVICE ......................................................................... 22
6583.1 - Fleet Equipment Rental Rate Development ............................................................... 23
6583.2 - Fleet Equipment Use Rate .......................................................................................... 24
6583.3 - Fleet Fixed Ownership Rate ....................................................................................... 24
WO AMENDMENT 6500-2012-4
EFFECTIVE DATE: 11/29/2012
DURATION: This amendment is effective until superseded or removed.
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6583.4 - Budgeting and Financial Planning System (Work Plan) ............................................ 24
6583.5 - Fleet Equipment Assignments, Release, and Transfers.............................................. 24
6583.6 - Fleet Acquisitions ....................................................................................................... 25
6584 - AIRCRAFT PROGRAM ..................................................................................... 25
6584.1 - Aircraft Rental Rate Development ............................................................................. 25
6584.11 - Budgeting and Financial Planning System (Work Plan) ...................................... 25
6584.2 - Purchase of Aircraft .................................................................................................... 26
6584.3 - Acquisition of Transferred or Surplus Aircraft .......................................................... 26
6584.4 - Upgrading of Aircraft ................................................................................................. 27
6584.5 - Removal of Aircraft From the WCF Program ............................................................ 27
6585 - SEED SUPPLY PROGRAM .............................................................................. 27
6585.1 - Seed Supply Program Work ....................................................................................... 28
6586 - NURSERY PROGRAM ...................................................................................... 28
6586.03 - Policy .................................................................................................................... 28
6586.1 - Other Nursery Costs ................................................................................................... 29
6586.2 - Sale, Exchange, and Purchase of Nursery Products ................................................... 29
6586.21 - Sale of Nursery Products to Forest Service Units ................................................ 29
6586.22 - Sales to and Exchanges With Public Agencies and Other Customers.................. 29
6586.3 - Disposal of Surplus Working Capital Fund Nursery Products ................................... 30
6587 - ENTERPRISE .................................................................................................... 30
6588 - MACHINERY ..................................................................................................... 30
6588.1 - Computer Hardware and Software Program .............................................................. 31
6588.2 - Radio Communications and Telecommunications Equipment .................................. 31
WO AMENDMENT 6500-2012-4
EFFECTIVE DATE: 11/29/2012
DURATION: This amendment is effective until superseded or removed.
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6580. 1 - Authority
6580.11 - Statutory Authority
The authority for establishing a Working Capital Fund (WCF) in the Forest Service is the Act of
August 3, 1956 (16 U.S.C. 579b, Working Capital Fund), as amended by the Act of October 23,
1962, 76 Stat. 1157, as follows:
“Section. 13. There is established a Working Capital Fund which shall be
available without fiscal year limitations for expenses necessary, including the
purchase or construction of buildings and improvements within the limitations
thereon set forth in the appropriations for the Forest Service, for furnishing
supply and equipment services in support of programs of the Forest Service.
The Secretary of Agriculture is authorized to transfer to the fund, without
reimbursement, and to capitalize in the fund at fair and reasonable values, such
receivables, inventories, equipment and other assets as he may determine, and
assume the liabilities in connection with such assets: Provided, that the fund
shall be credited with advance payments in connection with firm orders and
reimbursements from appropriations and funds of the Forest Service, other
departmental and Federal agencies, and from other sources, as authorized by
laws, at rates approximately equal to the cost of furnishing the facilities and
service.”
Note: Construction & Improvement of buildings no longer applies to the Working Capital Fund
authority; see FSH 6509.19, chapter 20 - Real Property.
The following quotes excerpted from explanatory notes requesting the establishment of a
Working Capital Fund for the Forest Service, are from the hearings on the Organic Act of 1956
before the Committee on Agriculture, House of Representatives, 84th Congress, 2d Session
(H.R. 11682, 11699), June 27, 1956, pages 38 to 40:
The proposed provision would establish a Working Capital Fund for financing the various
service operations that are required in conducting authorized programs of the Forest Service.
Under it, the Secretary would provide capital for the fund by transferring and capitalizing at fair
and reasonable values, present inventories of supplies and equipment, receivables, and other
assets as are related to the operation of the services. The receivables would represent services
rendered under current practices for which payment has not been made by appropriations
benefited and would initially provide operating funds for the payment of expenses. Operating
funds may also be provided, if necessary, by advance payments from the appropriations and
funds to cover the estimated cost of services or supplies ordered. Any advance payments in
excess of the charges for such services or supplies will be returned to the applicable
WO AMENDMENT 6500-2012-4
EFFECTIVE DATE: 11/29/2012
DURATION: This amendment is effective until superseded or removed.
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appropriations or funds. The fund will assume any liabilities in connection with assets
transferred to the fund, including accrued annual leave. In view of this method of providing
capital, the proposed language does not involve a request for funds to be appropriated.
Unobligated balances of appropriations and funds will not be transferred to the fund. The
services financed by the fund may also be made available when necessary, to other departmental
and Federal agencies, and as provided by law to State and private agencies and persons who
cooperate with the Forest Service in fire control and other authorized programs. In order that the
fund may be maintained on a self-supporting but non-profit basis, the payment for the services
will be at rates which will approximately equal the cost of furnishing the services, including
depreciation of equipment, maintenance and repairs of equipment, and accrued leave. For
example, in operating the motor vehicle and heavy equipment service which includes pickups,
stake-side and dump trucks, sedans, crawler-type tractors, and motor graders, the appropriation
would be charged at rental rates approximately equal to the actual or estimated cost of operation,
repair, maintenance, management, and depreciation of the equipment. The fund will be credited
with any proceeds from the disposition of property. Amounts received in connection with loss of
or damage to property would also be credited to the fund so as to be available for replacement or
to defray the cost of repairing the property in event of damage. When the fund has property
which it no longer needs to carry out its responsibilities, such property will be reassigned,
transferred, or otherwise disposed of in accordance with the regulations of the General Services
Administration and regulations of the Department of Agriculture issued pursuant thereto. In
addition to the review and audit of the fund by the Comptroller General, it is contemplated that
the status of the fund will be made known to the Bureau of the Budget and to the Congress
through required reports and business-type budget statements.
6580.12 - Application of Property Acts to Working Capital Fund
The provisions of the Federal Property and Administrative Services Act of 1949, as amended
Public Law 81-152 (Pub.L. 81-152), apply to the acquisition, life cycle, and disposition of WCF
property.
6580.13 - Application of Appropriation Acts to Working Capital Fund
The WCF must be subject to applicable limitations, restrictions, and provisions in annual
appropriation acts. It also is subject to all laws and regulations that apply to the Forest Service.
6580.2 - Objectives
The Forest Service shall manage the WCF to provide efficient financial management of certain
service and supply functions. Management of the WCF must:
WO AMENDMENT 6500-2012-4
EFFECTIVE DATE: 11/29/2012
DURATION: This amendment is effective until superseded or removed.
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1. Determine equitable rates and prices for goods and services of specified activities so
that the WCF operates on a self-supporting basis, and not for profit.
2. Assist current and future year financial planning by comparing actual revenues and
outlays forecasted for the period.
3. Perform periodic financial analysis of cost and program data to allow for making
informed decisions; such as making decisions regarding the expenditures and operations
of the WCF.
4. Preserve current capital investment for the recovery of increased costs due to inflation.
Rates should be adjusted accordingly to ensure full recovery of costs for services
provided.
5. Provide established criteria and business processes for the application, consideration,
approval, and financing of authorized WCF related activities. Such criteria and business
processes must be documented and made available to all WCF candidates.
6580.3 - Policy
The following policies govern the management of the working capital fund (WCF).
1. Accounting. Provide accounting for the fund in accordance with generally accepted
accounting principles and practices. Financial statements must reflect full disclosure of
assets, liabilities, and results of operations. Establish adequate controls over cash,
inventories, and other assets and resources.
2. Availability of Service. When feasible, make the services financed by the fund
available, as provided by law, to other Federal, State, and private agencies, or to persons
who cooperate with the Forest Service.
3. Cash Management Standard. Proper cash management incorporates practices
designed to accelerate and control collections, ensure prompt deposit of receipts, improve
control over disbursements, and eliminate idle cash balance. To accomplish this, cash
management standards must be followed:
a. Fleet, Aircraft, and Nursery. Planned unobligated cash levels for these WCF
program areas should fall between 20 percent to 35 percent of the average total
outlays for each fiscal year. Cash levels are continuously updated based on annual
analysis for outlays. WCF Aircraft is allowed to be above the 35 percent range if the
Region/Station/Area is preparing for replacement purchase of an aircraft or large
planned extra ordinary maintenance.
WO AMENDMENT 6500-2012-4
EFFECTIVE DATE: 11/29/2012
DURATION: This amendment is effective until superseded or removed.
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b. Enterprise Unit. Planned operating cash levels for this WCF program area should
fall between 25 percent to 45 percent of the average total outlay for each fiscal year.
Operating cash levels are based on annual analysis of cash needs and are reviewed
annually and updated accordingly to minimize any excess cash balances.
4. Direct Cost Pools. All the WCF programs will pay their respective actual cost of
Workmen Compensation and Unemployment Compensation which should be taken into
consideration for WCF rate setting. Actual charges will be prorated to field job codes.
5. Disposal of Property and Proceeds from Sale. Credit the fund with proceeds from the
normal disposition of property in accordance with the Federal Property and
Administration Services Act (40 U.S.C. 483). Dispose of any property that is ineligible
for exchange/sale, and property no longer required for the program through the excess
property procedures; deposit any proceeds into WCF. Document the plan in the annual
cash flow analysis statement and/or equipment replacement and extraordinary
maintenance expense plan for each activity. Include statements justifying any exceptions
(for example, an unusually large equipment replacement order and/or extraordinary
maintenance expense) to the cash management standard as addenda to the cash flow
analysis statements.
6. Donation of Used Equipment. Equipment Management Information System (EMIS)
Personal Property assets transferred into the WCF must have at least 60 percent of the
useful life remaining and must be in good operating condition. These transactions must
be approved in accordance with specific WCF activity direction.
7. Fund Management. Manage the WCF as one fund for each Region, Station, Area, and
Institute, as applicable, according to the priorities established by the Regional Forester,
Station Director, and Area Director. Each WCF program area (Fleet, Aircraft, Nursery,
and Enterprise) must recover the actual cost of doing business and shall bill only at rates
approximately equal to the cost of providing the service. WCFs are not to be operated in
a profit making mode.
8. Inclusion in Working Capital Fund. Only assets owned by the Forest Service must be
included in the WCF. Legislation does not provide for inclusion of leased or rented
equipment. See each WCF activity section in this manual for more specific information
on inclusion in the WCF fund.
9. Life of Equipment. The life of equipment represents the minimum period of time that
an item of equipment is estimated to be useful in service and the length of time over
which the equipment will be depreciated. The estimated lifetime or lifecycle of new
aircraft is 20 years; on used aircraft, it is the estimated remaining airframe life.
Currently, there are no class codes in EMIS that allow for a life of less than 20 years.
WO AMENDMENT 6500-2012-4
EFFECTIVE DATE: 11/29/2012
DURATION: This amendment is effective until superseded or removed.
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If an aircraft is brought into the WCF program with less than 20 years of life remaining,
the Increased Replacement Costs (IRC) must be increased by a factor that will ensure
sufficient funding will have been captured into the 352 account for aircraft replacement at
the end of its life cycle.
10. Profits. Each program area operating within the WCF fund must be on a selfsupporting basis. Year-to-year operations may create alternating profits and/or losses,
but the overall objective is to operate a fund that breaks even and recovers full costs. The
WCF is not to be operated in a profit making mode.
11. Reducing Excess Cash. There are two methods to reduce excess cash balances:
(1) Rate adjustments, which is the normal way to reduce excess cash balances and
(2) refunds, which may be used to reduce excess cash balances (above the cash
management standard) when the rate adjustment method would cause a major fluctuation
in the rates from year to year. Determine the refunds by analyzing the rate charges to the
benefiting Forest Service programs over the most recent 3-year period. Apply the
percentages (percent of the total for the period) to the excess cash to obtain the
proportional share of the refund for each Forest Service program.
12. Reimbursement for Damages. Credit to the fund as other income any amount
collected as a result of a Government claim for damage to the WCF assets.
13. Residual or Salvage Value. Residual value for new purchases should be based on the
present average sales price of similar equipment.
14. Threshold for Charging Overhead Costs (Fleet Only). The minimum threshold for
allocating Washington Office or Regional Program Management (PM) and Washington
Office General Administrative (GA, overhead) costs to the WCF activities is $1,000 for
each cost.
15. Training. Provide applicable training in regards to specific WCF policies and
procedures to program areas as needed. At a minimum, it must address any training
needs identified in external audit reports and/or internal reviews. Follow the procedures
in FSM 6141.1.
13. Upgrades and Buildup. Replacement upgrades are not normally funded by the WCF.
Replacement upgrades of equipment, however, may be funded by the WCF if there are
sufficient funds in the WCF and approved by the Region, Station, and Area WCF
Program Manager (that is, fleet manager, aviation manager). If sufficient funds are not
available, upgrades to the WCF equipment will be paid through the donation process by
project (appropriated) funds.
WO AMENDMENT 6500-2012-4
EFFECTIVE DATE: 11/29/2012
DURATION: This amendment is effective until superseded or removed.
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6580.4 - Responsibility
6580.41a - Chief Financial Officer
It is the responsibility of the Chief Financial Officer (CFO) to ensure sound financial
management policies, practices, and controls over the Agency WCF assigned to Forest Service.
Ensure that the Agency adheres to established WCF authorities and regulations. Ensure the
completeness, quality, and integrity of WCF data in the Agency’s core accounting system and its
subsidiary systems.
6580.41b - Director of Financial Policy
It is the responsibility of the Director of Financial Policy to:
1. Issue accounting standard and financial management policies and procedures
governing Forest Service WCF financial matters, in accordance with statutory authorities,
congressional intent, Appropriations Law, U.S. Treasury, and Office of Management and
Budget regulations related the WCF.
2. Develop new and/or revised posting models; periodically analyze existing ones for
validity and use related to the WCF.
3. Serve as the principal advisor to the Chief, Deputy Chiefs, CFO, Washington Office
Staff Directors and field offices on Agency appropriation use questions for the WCF.
4. Assist in the implementation of new accounting and financial management-related
business processes for the WCF.
6580.41c - Director of Financial Management Systems
It is the responsibility of the Director of Financial Management Systems to:
1. Implement new or enhanced financial and mixed systems for the WCF.
2. Maintain and operate financial and mixed systems; participate in the maintenance and
operation of mixed systems.
3. Document changes and modifications to financial and mixed systems.
WO AMENDMENT 6500-2012-4
EFFECTIVE DATE: 11/29/2012
DURATION: This amendment is effective until superseded or removed.
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6580.41d - Director of Acquisition Management
The Director of Acquisition Management (AQM) is responsible for ensuring procurement of the
WCF is in compliance with Federal Acquisition Regulations and Federal Management
Regulations.
6580.41e - Washington Office, Staff Directors
The Directors of Engineering (Fleet Equipment), Forest Management (Nursery Operations and
Seed Supply Activities), Fire and Aviation Management (Assistant Director of Aviation),
Enterprise Program (Enterprise Activities), Law Enforcement and Investigation (R10 Aircraft),
or other, as applicable, are responsible for coordinating their WCF activity considerations with
the Albuquerque Service Center - Budget and Finance (ASC - B&F) staff.
6580.41f - Albuquerque Service Center - Budget and Finance, Director
It is the responsibility of the Director, Albuquerque Service Center - Budget and Finance (ASCB&F) to:
1. Implement and evaluate ASC-B&F financial control systems for administrative,
program, and operational activities and to provide reasonable assurance for those
obligations.
2. Plan and direct all aspects of payment activities through subordinate supervisors.
3. Establish and maintain adequate controls for all funds under their jurisdictions.
4. Establish and maintain a process for reviewing all field unit requests for refunds of
WCF cash.
5. Establish and maintain a process for reviewing annual budget estimates with the
Region, Station, and Area WCF Program Managers. Each Enterprise unit prepares
estimates; however, they are done on a project-by-project basis and processed in the form
of a work order.
6. Assist in the development and implementation of new accounting/posting models and
financial management-related business processes for the WCF program.
7. Assist in the enhancement and implementation of financial and mixed systems for
WCF.
WO AMENDMENT 6500-2012-4
EFFECTIVE DATE: 11/29/2012
DURATION: This amendment is effective until superseded or removed.
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8. Review and coordinate with CFO approval of Region, Station and Area proposals for
financing new activities from the fund and/or the removal of activities or sub-activities
from the WCF program; with the exception of the Enterprise Program, which should be
reviewed and approved by the Deputy Chief of Business Operations.
9. Provide the day-to-day management and oversight of the WCF.
10. Recommend and coordinate with all other applicable Staff Directors, new and
revised financial, accounting, and budgetary instructions and standards which support the
WCF.
11. Oversee the preparation, coordination, and review of the annual cash flow analysis
statement with each Region, Station, and Area WCF Program Manager/Enterprise
Program Manager unit leads and perform analysis to ensure the solvency and integrity of
the fund.
12. Document exceptions to the cash management standard.
13. Ensure that funds are reserved for future needs so that it is possible to replace assets
while financing current operations.
14. Compile, analyze, and review financial reports, including special analyses, for the
WCF Program Managers/Enterprise Unit Leaders.
6580.41g - Regions, Stations, Area, Institute, and Job Corps
Each Regional Forester, Station Director, Area Director, and Job Corps Center Director is
responsible for administering the WCF for their unit, as well as ensuring the ASC B&F WCF
branch and the Region, Station, Area WCF Managers/Enterprise Program Manager Unit Leaders
are collaborating to ensure the solvency of the WCF program.
1. The WCF Program Managers/Enterprise Program Office/Enterprise Program Manager
Unit Leads are responsible for:
a. Serving as the program authority for the working capital resources of the fund.
This includes such items as the determination of asset useful life, economic
replacement cycles, and economic source of services.
b. Influencing the timing of income and expenditures in order to maintain the
solvency of the fund.
WO AMENDMENT 6500-2012-4
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DURATION: This amendment is effective until superseded or removed.
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c. Coordinating the various activities operated by the fund with ASC B&F, WCF
staff and AQM.
d. Ensuring that funds are reserved for future needs so that it is possible to replace
assets when applicable while financing current operations.
e. Using estimates from units, subunits, and Regional Office staffs as a base, plan the
financial needs of all the WCF activities, including the expenditure of funds.
f. Using input from activity managers and working with ASC B&F WCF staff,
determine rates and prices for the WCF activities. Each Enterprise Unit develops
billable rates annually that are used on a project by project basis and is presented to
the Forest Service units in the form of a work order.
g. Developing annual budget estimates (that is, work plan – salaries, travel, and so
forth) for the WCF activities that cover the current fiscal year. Each Enterprise Unit
develops their own budgets in conjunction with their billable rates.
h. Reviewing the WCF activity financial reports and coordinating with ASC B&F,
WCF staff pertaining to corrective actions.
i. Preparing proposals for financing new activities from the fund and/or the removal
of activities or sub-activities from the WCF program. Coordinate the review and
approval with ASC B&F except for the Enterprise Program (sec. 6580.73) for
Enterprise direction.
j. Providing leadership and/or assist in special management studies that aim to
improve the WCF operations.
k. Providing ASC B&F, WCF staff with the applicable program information to assist
in the creation of rate setting and/or cash flow analysis.
l. Preparing (in accordance with FSM 7130) and maintain, at a minimum, a 5-year
equipment replacement plan for each WCF activity and forward to ASC B&F, WCF.
2. Regional Budget Director/Nursery & Seed Program Managers Enterprise
Management Program Analyst or delegated representative (for example, Budget Officer).
a. Serving as the budget authority for the working capital resources of the fund.
b. Assisting in work plan preparation.
WO AMENDMENT 6500-2012-4
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c. Monitoring regional WCF program cash balances and coordinating with ASC
B&F, WCF staff regarding issues and deficits.
d. Approving availability of regional WCF program funds for purchases and
approving. In-Service Authorizations form FS-6500-46 of project funds for the
donations process to pay for additions and upgrades.
6580.5 - Definitions
Accountable Property. Sensitive and nonexpendable property costing $5,000 to
$24,999.99, accountable and tracked by the Equipment Management Information System
(EMIS). These assets are expensed at the time of purchase.
Buildup. An increase in the number of WCF assets.
Capitalized Property. Sensitive and nonexpendable property costing $25,000 or more;
accountable and tracked by the Equipment Management Information System (EMIS).
These assets are depreciated over the useful life of the asset.
Cash Flow Analysis Statement. The study of the cycle of programs' cash inflows and
outflows, with the purpose of maintaining an adequate cash flow for the programs, and to
provide the basis for cash flow management and sustainability of the program.
Depreciation. A rational and systematic method of allocating the cost of a capitalized
asset over the asset’s estimated useful life. The WCF uses a straight line depreciation
model.
Equipment Management Information System (EMIS). A system used to capture
capitalized equipment for the WCF. It calculates and records depreciation, maintenance,
and operating costs per EMIS personal equipment. EMIS is a subsidiary system that
interfaces with the Agency’s core accounting system.
Equipment Replacement Plan. Based on useful life of assets, create a plan for when each
asset will be replaced with an estimated cost of the replacement asset at that period of
time.
Fixed Ownership Rate (FOR). A monthly rate charged for the availability of an asset to a
project that is renting a WCF asset. The FOR rate is established to recover the fixed costs
of owning the asset, which includes depreciation, program management, costs to sell the
asset, and increased replacement costs. Documentation must be maintained to support
rate calculations.
WO AMENDMENT 6500-2012-4
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Increased Replacement Costs (IRC). The difference between the original purchase price
and the anticipated cost at time the asset is replaced.
Indirect Costs Pools. Proportionate share of a unit’s administrative expense of costs
(pools 1 through 5) based on percentage of direct labor FTEs for each unit. These costs
are distributed to all WCF programs except Fleet and Aircraft Management.
Life Expectancy. The period which an asset is expected to operate with normal repairs
and maintenance for the purpose it was acquired. This is used in calculating FOR rates
and setting replacement plans.
Native Shrubs. Production of shrubs, including bare-root and containerized stock, used
for roadside and soil stabilization, wildlife browse, and so forth.
Outlay. The amount of cash and other working capital expended for operation of the
activities of the funds, and for the acquisition of fixed assets such as equipment.
Primary Purpose Principle Rule. Primary purpose rule is Forest Service’s work financing
principle. This principle states that units must charge expenditures of a project to the one
program code based on the primary purpose for which the project was initiated. Other
programs may gain secondary, incidental outcomes, and results, but the primary program
will be the funding source.
Program Management (PM). The costs associated with the management of a program.
The WCF is a Forest Service program that provides a number of services. The PM
charges include salary, travel, training, and any other costs that can be directly charged to
the WCF service under the primary purpose principle rule.
Project. An activity funded by appropriated funds (non-WCF).
Project Equipment. Equipment that does not meet the WCF equipment criteria, and has
been obtained through purchase with project funds or excess property. Operation,
repairs, and replacement of project equipment is the responsibility of project funds.
Region/Station/Area (RSA) WCF Program Manager/Enterprise Unit Leaders. These
positions include the Regional Fleet Manager, Regional Aviation Manager, Nursery
Manager, and Enterprise leads.
Residual/Salvage Value. The expected remaining value after an asset has been fully
depreciated, that is, the estimated sales value.
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Software. National software owned and managed by the Washington Office. Agency
approved software for use in managing and reporting Forest Service business activities.
Special Project. A project with an estimated completion period of less than 2-years that
is paid for with appropriated funds (non-WCF).
Telecommunications Equipment. Dispatch centers, microwaves, telephone switches, and
key systems not used with the computer hardware system.
Tree Production. Production of seedlings, including bare-root, containerized stock, and
native plants.
Use Rate. A rate charged, usually per mile/hour, for the use of a WCF asset to a project
that is using a WCF asset. The Use Rate recovers the costs of operating and maintaining
WCF assets.
Useful Life. See Life Expectancy.
Upgrade of Equipment. An improvement or quality enhancement of an asset compared
to currently owned equipment. Example: to replace a regular cab truck with an extended
cab truck.
Working Capital Fund (WCF) Equipment. Equipment and vehicles in the WCF where a
class or category has been established, where the cost of the asset is greater than or equal
to $5000, and the life expectancy is greater than 2 years.
6580.6 - Fund Establishment
6580.61 - Inclusion of Qualified Programs
The WCF must operate and provide funding for all regional activities which qualify as already
approved WCF programs (in accordance with the Office of Management and Budget, Circular
A-76, Performance of Commercial Activities).
6580.62 - Evaluation of Proposed Activities
1. Criteria. Any activities proposed for financing from the WCF must meet all of the
following criteria:
a. Serve a number of Forest Service programs. An activity that devotes most of its
resources to the service of one program, with little or no service to other Forest
Service programs, does not qualify for financing through the WCF.
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b. If not financed by working capital fund, otherwise receive funding from multiple
appropriation or budget line items. Financing from the WCF provides a fair and
equitable method of accumulating costs by work order or account grouping for later
billing to the benefiting appropriation, sub-appropriation, and activity. This avoids
arbitrary methods that distribute costs on a predetermined basis.
c. Service or product quantified and itemized for pricing purposes. This requirement
rules out those proposals that would use the WCF as a banking fund, holding account,
special deposit, or suspense account.
d. Continuing inventory of supplies and/or materials or equipment and machinery to
carry out purpose of program. Under normal program operations, demands fluctuate
from year to year. This fluctuation makes it difficult to plan funds for staffing,
supplies, and equipment from annual appropriated funds. The WCF will allow even
distribution of expenditures for supplies and capital investments and relieve the
impact of annual appropriations.
e. Service-wide Applicability. The activity must be equally applicable for the WCF
operation in all regions and stations having such an activity.
2. Other Considerations. Consider the following additional items before deciding
whether to finance and operate an activity under the WCF.
a. Improvement in Operations. Financing of an activity under the WCF must lead to
improved operations of the activity and must facilitate the Forest Service programs it
serves.
b. Annual Gross Income. The annual gross income of an operation located at one
place should be a least $50,000. If other overriding reasons such as vehicles servicing
more than one program, qualify a program for WCF operation, the annual gross
income should not be the only determining factor.
c. Seasonal Nature of Activity. Ideally the activity must be in operations year-round
maintaining continued services for key Agency activities that would normally be
unavailable on a part-time basis.
Where the WCF activity depends on program personnel, the availability of these personnel may
dictate or affect the production and the income of the activity.
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6580.7 - Approvals
6580.71 - Department
The Secretary of Agriculture approves a new service to be operated through the WCF. Current
approved services are the:
1. Fleet Equipment Rental Program,
2. Aircraft Rental Program,
3. Nursery Program/Seed Supply Program, and
4. Enterprise Program.
6580.72 - Washington Office
The Chief Financial Officer shall review and approve the establishment of an additional WCF
program or the closing out of an existing WCF program.
6580.73 - Requests for Approval
Washington Office Program Director will coordinate with applicable Region, Station, and Area,
WCF Program Managers and/or WCF Supervisory Accountant to draft written proposals for new
activities.
For the Enterprise Program the Deputy Chief of Business Operations shall issue a letter asking
for “requests for proposals” from Forest Service employees for possible new Enterprise
activities. The Enterprise Director and the Enterprise Program Leadership Council will evaluate
all proposals and recommend to the Deputy Chief for Business Operations. The Deputy Chief,
Business Operations, approves establishment of all new Enterprise Units and the disbanding, or
closure, of any Enterprise Units.
6580.74 - Removal of Program or Facility at One Location
To remove activities from the WCF, the same procedures apply as in requests for new programs.
Proposals must state clearly the reasons for removal from the WCF financing. Generally, these
reasons must indicate that the activity no longer meets the criteria enumerated in section
6580.62.
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If the closing of an activity results in a retained earnings surplus, transfer the balance to the
remaining WCF program(s) that most clearly serves the same purpose (appropriations) as the
closed activity. If this is not clearly evident, prorate the surplus to all remaining activities on the
basis of relative the WCF activity.
6580.8 - Financial Management
6580.81 - Financial Planning
The system provides for the preparation of operating plans in such a way that it is possible to
readily determine costs and outlay of working capital. At each level of responsibility, the
operation and management of the WCF is on a cost basis. The Region, Station and Area WCF
Program Managers/Enterprise Program Managers Unit Leaders in conjunction with the regional
budget director or their representative (that is, Budget Officer), as applicable, manages and
controls program outlays. Good financial planning leads to the proper pricing of goods and
services as it gives full recognition to the costs that occur in any accounting period.
Region, Station and Area WCF Program Managers/Enterprise Unit Leaders must develop WCF
financial plans form FS-6500-30 in conjunction with budget officers, as part of developing
regular work plans for program activities. The prices and rates developed for the WCF goods
and services are vital in program planning. The volume of goods and services, which the WCF
must furnish to the program activities, is just as vital in the WCF planning. All financial plans
should be determined annually for the work to be accomplished during the current and out year
fiscal years, in conjunction with Agency strategic plans and subject to Agency program and
funding approval.
6580.82 - Cash Flow Analysis
To maintain an adequate cash balance in each WCF fund, Region, Station, and Area WCF
Program Managers/Enterprise Program Office/Enterprise Unit Leaders in conjunction with ASC
B&F, WCF staff should perform a cash flow analysis at least once a year. The cash flow
analysis should consider the prior fiscal year’s actual cash flow in determining the appropriate
projection for at least the current fiscal year and the next 5 fiscal years. This cash flow analysis
should compare the Total Projected Cash Resources for the fund with the Total Project Cash
Outlays for the fund. This is to ensure the cash balance at the beginning of each year is between
the percentages outlined in section 6580.3, and the rates developed are adequate and do not
create excessive cash balances or shortages. A fund may exceed the maximum level if it can be
demonstrated that the excess funds are for planned outlays for equipment purchase or
extraordinary maintenance in the future. Refer to FSH 6509.11f, chapter 70, adjustments, for
more details on cash flow analysis.
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6580.83 - Outlay
To maintain the solvency of the fund, the ASC-B&F and the Region, Station, and Area WCF
Program Managers/Enterprise Program Office/Enterprise Unit Leaders shall reduce outlays that
may be in excess of estimates and coordinate any necessary corrective action.
6580.84 - Revenue
To maintain the solvency of the fund, the Region, Station, and Area WCF Program
Managers/Program Office Enterprise Unit Leaders shall ensure that all revenue is collected in a
timely manner, and that all expenditures are recorded and matched against revenue within the
normal agency business cycle, normally every 30 days, quarterly, and at yearend in preparation
for agency financial statements.
6581 - WORKING CAPITAL FUND ASSET ACQUISITION
As a rule, all the WCF assets are acquired through the WCF funding. Once acquired, fleet
equipment merges completely into the WCF fleet equipment pool and is available for assignment
where most needed.
When organization or program managers request a vehicle or other fleet equipment for use on
their unit, the resulting fixed ownership rate (FOR) that the unit pays does not create or continue
any financial interest in such vehicle by that Unit. The FOR is a fee for having the equipment
available; it does not purchase an interest in the equipment, regardless of length of periods of
assignment.
6581.1 - Financing Acquisitions Through the Working Capital Fund
The fleet equipment replacement plan is the basis for ascertaining the difference between the
anticipated replacement costs and the recorded costs of equipment.
For WCF to finance acquistion of replacement equipment, it is not necessary that replacement
vehicles be on hand when the replacement equipment goes out of service. Replaced equipment,
however, must remain in service for their entire minimum useful life and until the FOR has been
fully collected. Use the WCF funds, if available, for funding adequate replacement of
equipment.
An exception to this policy of financing replacements from the WCF occurs when equipment is
lost through abnormal hazards or “acts of God”. Examples are losses by fire, flood, vandalism,
landslide, or hail storms. In case of total loss under these conditions, charge the undepreciated
value, less any sale income, to the responsible project appropriation.
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6581.2 - Criteria for Primary Purpose Financing of Asset Acquisition
The primary purpose financing of additional equipment (above the level of one for one
replacement) is required except under the following conditions:
1. A general increase in workload is expected in a program and the expectation is that the
new level will continue for several years.
2. Minor expansion in a single existing program or new program, and the expectation is
that the new program level will continue for several years.
3. Major expansion of an existing program or a major program that requires equipment
for a relatively short period, generally a year or less, when unit plans show that other
programs will use this equipment when the original need lapses.
6581.3 - Acquisition of Replacement Assets by the WCF
Use the WCF to finance the replacement of equipment that is currently in the WCF program.
Generally, asset replacements are on a one-for-one basis and of the same kind. There may be
instances, however, where one piece of equipment might replace two or more pieces of
equipment. Conversely, there may be instances where more than one piece of equipment might
replace a single piece of equipment. Program needs, not the kind of equipment, must dictate the
kind of replacements. The WCF funds for replacement are generated in two ways:
1. Fixed Ownership Rate (FOR). An objective of the FOR is to accumulate sufficient
funds to replace the existing WCF equipment. The FOR accumulates some increased
replacement funds by inclusion of an IRC factor in the FOR to:
a. Recover the cost of replacement,
b. Provide for the economic rise in the costs of replacement equipment, and
c. Ensure that, in accordance with the replacement plan, the necessary funds are
available to pay equipment liabilities when they become due.
2. Sale Proceeds. Proceeds from the sale of excess WCF equipment may be used to
finance replacement equipment.
The value of the equipment should include the purchase price, transportation, and initial
servicing costs.
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6581.4 - Acquisition of Assets for New or Expanded Programs
Assets acquired for new or expanded WCF programs are financed by appropriated funds that are
donated to the WCF. The assets are then purchased with WCF financing. Any proceeds from
such donation may also be used to assist in program financing. The Region, Station, and Area
WCF program manager determines if the best use of the WCF funds is to purchase this
additional equipment.
The general criteria for inclusion into the WCF of program financed equipment is as follows:
1. Must follow the Accountable and Capitalized Property policies in FSM 6410, Personal
Property Management.
2. Equipment will not be acquired only for use on special projects or short-term (less
than 2-years) projects.
3. The equipment requires significant annual maintenance, including preventive
maintenance.
4. The quantity of equipment is sufficient to require management, or the quantity is small
but acquisition costs are high.
5. When WCF is used to replace the equipment, replacement of the equipment must be:
a. With an identical or similar item of equipment in the same WCF programs.
b. On a planned (known) basis, such as replacement plan.
6581.5 - Acquisition of Equipment From Excess
All acquisition of excess equipment must be approved, in advance, in accordance with specific
WCF activity direction. The general criterion for inclusion into the WCF listed in section 6581.4
must be followed. If excess equipment is acquired as a replacement, pay the purchase,
transportation, and initial servicing costs from the WCF. If excess equipment is acquired as an
addition, donate all costs from program funds, unless surplus WCF funds are available.
6581.6 - Acquisition of Upgrades to Equipment
The equipment replacement plan is the basis for ascertaining the difference between the
anticipated replacement cost of the original equipment/vehicle and the actual cost of the
upgraded equipment/vehicle. The difference is to be paid through the donation process from
project (appropriated funds) to the WCF. The actual acquisition will be made using WCF funds.
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6581.7 - Acquisition of Special Devices
When there are special devices and tools attached to multi-purpose-type equipment, and these
devices or tools are necessary only for a specific program, that specific program pays for the
devices or tools. If installation of the device on the vehicle is permanent, only upon written
approval by the WCF manager, may the installation be completed and value be donated to the
WCF from primary purpose appropriated funds. Use the WCF to recover and pay for
replacement of such devices when replacing the vehicle.
6582 - DISPOSITON OR DISPOSAL OF ASSETS
When disposing of a WCF asset, personal property policies must be followed as outlined in
FSM 6410, Personal Property Management. Any proceeds for the sale of WCF
equipment/vehicle must be deposited in the proper WCF account and used for replacement costs.
If the WCF equipment/vehicle is disposed of prior to the end of the estimated useful life,
remaining replacement costs are to be funded by the appropriate project funds; exceptions must
be documented and approved by the Region, Station, and Area WCF program manager in
accordance with policies in FSH 7109.19.
6583 - FLEET EQUIPMENT SERVICE
The fleet equipment rental service purchases, operates, and replaces equipment on a planned
basis, and then makes the equipment available to Forest Service programs on a reimbursable
arrangement. The purpose of this WCF service is to provide efficient and effective fleet
equipment in a safe mechanical condition at a reasonable price to Forest Service programs. As
defined, the WCF fleet equipment is ground or water equipment that is owned and operated by
Forest Service and meets all the WCF Fleet criteria as outlined below.
The general criteria for inclusion of equipment in WCF is as follows:
1. Financing for operation of the equipment is from a number of appropriations.
2. Equipment has a regular use pattern, not held only for special or short term projects.
3. The equipment requires significant annual maintenance, including preventive
maintenance.
4. The quantity of equipment is sufficient to require management, or the quantity is small
but acquisition costs are high.
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5. Replacement of the equipment must be:
a. By an identical or similar item of equipment.
b. On a planned (known) basis.
6. Significant management time is necessary for optimum use.
7. The cost is greater than or equal to $5,000.
8. The life expectancy is greater than 2-years.
Vehicles or equipment, usually special purpose types, acquired, operated, and maintained at the
expense of an individual project or group of projects, may be classified as project equipment.
Purchase or acquire this equipment only with written approval of the Regional Director of
Engineering. Approval of project equipment will be granted only after preparing an economic
analysis that justifies acquisition over alternative methods and if it meets the following criteria
on an individual item basis:
1. The use of the item is on an intermittent basis and is not subject to a predictable
pattern, typically for a period of less than 2-years.
2. The item will not be replaced in kind or with a similar type.
Maintain such equipment, along with history and cost records, to the same standards and format
as the WCF equipment.
6583.1 - Fleet Equipment Rental Rate Development
Each Region, Station, Area, and Institute, that independently finances its WCF fleet must work
with ASC B&F, WCF staff to develop equipment rental rates. The fleet rental service uses a
dual rate system designed to recover the full cost of operation, maintenance, replacement, and
management of the Forest Service WCF-owned fleet. The rate system consists of a Use Rate per
unit of use (mile, day, hour) and a monthly fixed owership rate (FOR). The combination of these
rates reflects total costs for each class of equipment operated by the WCF. Any proposed
changes to established rates during a fiscal year must receive prior approval by the ASC-B&F,
supervisory WCF accountant. The approval request must contain the financial support that
justifies the interim rate adjustment.
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6583.2 - Fleet Equipment Use Rate
The purpose of the fleet equipment Use Rate is to recover the full costs, including operation and
maintenance expenses. Field units are required to record utilization (miles, hours, days) into the
WCF system on a timely basis so that appropriate revenue can be collected.
6583.3 - Fleet Fixed Ownership Rate
The monthly Fixed-Ownership Rate (FOR) rates cover replacement costs, program management,
direct costs, workmen compensation, and unemployment costs. Field units are required to
budget and collect appropriate FOR for equipment once the asset is placed in service and
throughout the life-cyle of the asset. Equipment that have been replaced and are being held for
summer fleet are required to collect at a minimum 4 months of FOR.
6583.4 - Budgeting and Financial Planning System (Work Plan)
1. Use Rate Budgeting Principles and Procedures. Unit line officers request WCFowned equipment for use in carrying out their programs of work. Budget estimates are
calculated by using the estimated mileage/hour planned multiplied by the Use Rate for
each equipment class.
2. Fixed Ownership Rate Budgeting Principles and Procedures. Unit line officers plan
the fixed cost of equipment ownership to the program requiring the availability of the
equipment under the primary purpose budgeting concept. These budget estimates are
recorded in the Work Plan System for budgeting and planning purposes.
3. WCF Program Management Principles and Procedures. Project work plans for the
WCF Fleet program are to include only direct costs specifically identified with the
delivery of the WCF Fleet program/activity. Direct costs include expenses associated
with employees working directly on the production of a WCF Fleet output (inspections,
travel to WCF meetings, and so forth) and the WCF Fleet program management.
Program clerical time to this account only when services directly support and are readily
identifiable with the WCF Fleet activity, for example time spent recording utilization into
the WCF system.
6583.5 - Fleet Equipment Assignments, Release, and Transfers
The unit that holds the equipment on the first day of the month pays FOR for that month. Ensure
that there is no break in the continuity of FOR charges when equipment is transferred to another
unit. The releasing unit pays the full FOR for the month in which the equipment is released.
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The unit receiving the equipment pays the FOR charge thereafter. The requesting unit must pay
the FOR for newly received equipment, starting with the month following receipt or the month
following completion of initial service that included all special attachments, whichever period
comes later.
6583.6 - Fleet Acquisitions
The Region, Station, and Area WCF Program Manager for fleet will approve all acquisitions of
fleet equipment including upgrades to equipment and equipment from excess.
6584 - AIRCRAFT PROGRAM
The WCF program operates all Forest Service-owned aircraft only, not leased or rented aircraft.
Financial planning for the aircraft program requires coordination among appropriate staff
including but not limited to Fire and Aviation Management (FAM) National Headquarters,
aircraft users, and ASC B&F, WCF Property staff. The Forest Service has a WCF Aircraft User
Guide that is jointly approved by the Deputy Chief of Business Operations and the Deputy Chief
of State and Private Forestry. This guide gives direction for the detailed management of Forest
Service WCF aircraft which must be followed. The WCF User Guide is available on the ASC’s
web site at http://fsweb.asc.fs.fed.us/bfm/programs/financial-operations/propertywcf/wcf/aircraft-policies-procedures.php and the FAM web site at www.fs.fed.us/fire/aviation/.
FSM 5700 and FSH 5709.16 contain additional policy direction for Forest Service WCF aircraft.
6584.1 - Aircraft Rental Rate Development
The aircraft operation program utilizes a dual-rate system designed to recover the full cost of
operation and maintenance as well as depreciation and management costs. The rate system
consists of a Use Rate per hour and a monthly fixed ownership rate (FOR).
Non-Forest Service users of WCF aircraft must pay both Use and availablity FOR rates. Bill
users for actual hours that the aircraft is used. Charge FOR, converted to a daily rate, for each
day the non-Forest Service user has control over the aircraft for 4 hours or more.
6584.11 - Budgeting and Financial Planning System (Work Plan)
1. The budgeting principles that apply for fleet equipment also apply here; that is, plan
the Use Rate directly to the appropriate program, and plan the fixed ownership rate to the
program that requires the availability of the aircraft for the period concerned. A welldeveloped aircraft USE estimate that projects anticipated use over the entire year
enhances maximum use of aircraft during non-emergency periods. This projection also
provides information to the forest supervisors and other users for an awareness of aircraft
availability, so that they can make plans for the use of the aircraft.
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2. Project work plans for the WCF Aircraft program are to include only direct costs
specifically identified with the delivery of the WCF Aircraft program/activity. Direct
costs include expenses associated with employees working directly on the production of a
WCF Aircraft output and WCF Aircraft program management. Program clerical time
only when service directly support, and are readily identifiable with, the WCF Aircraft
activity.
6584.2 - Purchase of Aircraft
All costs of purchasing an aircraft are financed by the Washington Office, Fire and Aviation
Management (FAM), from WCF funds, project funds, or a combination of both. Project funds
must be transferred into the WCF fund for purchases. Include all costs of ferrying the aircraft to
its duty station, including pilot’s travel to the delivery point, flight time from delivery point, and
any modifications made to the aircraft before it is placed in service.
6584.3 - Acquisition of Transferred or Surplus Aircraft
Acquisition of transferred or surplus aircraft is to be approved by the Washington Office, FAM,
in advance. All costs of acquiring aircraft from surplus sources and modifying them to Forest
Service requirements are to be capitalized. These costs include:
1. Pilot’s salary and travel to pick up and ferry aircraft to its duty station.
2. Flight time to home base.
3. Painting and upholstering.
4. Radio repair and installation of new radios.
5. Tires and tubes.
6. Testing and inspections.
7. Overhaul and repair of engines, propeller, or airframe.
In addition, fair market value of the aircraft, minus the value of any equipment removed by the
Forest Service must be determined, and this amount is donated to the WCF. Any additional
acquisition costs, together with the donated value, become the total capitalized value of the
acquired aircraft. This capitalized value is depreciated over the life-cycle of the aircraft (20
years).
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6584.4 - Upgrading of Aircraft
Upgrades consist of additions, alterations, betterments, rehabilitations, or replacement of
components where they significantly extend the aircraft’s useful life or its ability to provide
service. All significant upgrades over $20,000 must be approved by the Washington Office,
FAM, in advance.
Total charges of $20,000 or less are not capitalized and must be charged to the WCF
maintenance job codes. Charges must not be split. Some examples of upgrades are:
1. Modifications to enable the use of mapping (scanners or cameras);
2. Modification of instrumentation, engines, or airframe, including landing gear to
provide greater safety, utility, or to fill a specialized need;
3. Safety devices such as built-in fire extinguishers and fire detectors;
4. Superchargers and higher powered engines; and
5. New radio or electronic equipment to provide greater safety, or allow access to certain
airports.
All upgrades must be funded through the WCF; this ensures accurate asset costs are accounted
for in EMIS. Program staffs can donate Project funds to the WCF for this purpose.
6584.5 - Removal of Aircraft From the WCF Program
Remove aircraft destroyed by accident, sold, excess status, donated, or dismantled for parts by
processing form FS-6500-61, Fleet Equipment and Aircraft (Accountability and Data Record).
The Washington Office, FAM, must approve the removal before the action is taken.
When an aircraft is removed from the WCF program where more dollars have been spent than
income generated (deficit), within the current or previous fiscal year, the assigned program
(Region, Station, Area) shall donate the deficit amount to make the WCF whole.
6585 - SEED SUPPLY PROGRAM
The Seed Supply Program provides tree seed for direct seeding or sowing in nurseries for the
production of tree, native shrub, and grass seedlings.
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6585.1 - Seed Supply Program Work
Program work includes the purchase or collection of cones, extraction of the seed, cleaning and
testing seed, storing, and seed delivery. Most units operate this program in conjuction with a tree
nursery.
6586 - NURSERY PROGRAM
The Nursery Program operates facilities for the production of tree seedling and native shrubs to
support the Forest Service’s commitment of restoring and enhancing the nation’s landscapes.
6586.03 - Policy
1. Established Nurseries. Capitalize established nurseries as a program of the WCF
unless there is specific authorization for other financing.
2. Expansion for Existing Production. Finance the expansion of cultivated area or
physical plant at existing nurseries under the reforestation and stand improvement
appropriation and transfer it into the WCF. Use appropriated funds to finance operating
costs related to expansion of production levels, including increased production costs
resulting from changes in quality standards. Plan for this work far enough in advance to
allow for appropriate Washington Office and Regional Office approval and the necessary
appropriation and allocation of funds.
3. Tree Production Cost. Costs necessary for the operation of nurseries currently
capitalized within the WCF must be financed by the WCF. If increased operating costs,
however, are incurred as a result of the addition of new or expanded capacity, those
increased costs must be paid by appropriated funds.
a. New Capacity. Use appropriated funds to finance all tree seedling and native
shrub production operating costs at existing nurseries up to the fiscal year in which
trees and shrubs are sold. Before lifting the tree stock, capitalize the seedlings in the
WCF.
b. Expanded Capacity. Use appropriated funds to finance any increase in tree or
native shrub production as a consequence of an expansion of cultivated areas. Also,
use appropriated funds to finance increased operating costs resulting from exchange
in quality standards. The WCF, rather than appropriated funds, may finance increases
in the number of trees or shrubs being produced (physical inventory) as long as
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sufficient working capital is available, and the financing does not create a deficit.
Generally, expansion of tree production is funded by appropriated funds. It is also
necessary, however, to recognize other types of expansion, such as the investment in
tree stock that results from carrying trees as seedling or transplants over to age classes
that are older than originally planned. If these changes in practice require additional
working capital, use appropriated funds.
c. Other Projects. Use appropriated funds to finance the cost of other work at the
WCF nurseries that does not benefit the WCF nursery.
6586.1 - Other Nursery Costs
Use WCF to finance current WCF nursery operations in accordance with the primary purpose
principle. Some examples of non-WCF work that must not be charged to the WCF are as
follows:
1. Administration/Program Management,
2. Experimental, and
3. Research.
6586.2 - Sale, Exchange, and Purchase of Nursery Products
6586.21 - Sale of Nursery Products to Forest Service Units
Ordering units must pay the WCF for trees delivered to them. An accounting adjustment will be
processed. Ordering units that fail to utilize all of the available seedlings they originally
requested must reimburse the nursery for all costs incurred in the unused planting stock, unless
sold to other parties.
6586.22 - Sales to and Exchanges With Public Agencies and Other Customers
Appropriate agreements must cover the sale, exchange, and/or disposition of nursery products
(FSH 1509.11, Grants and Agreements Handbook).
Sales must reflect current selling prices and sold under the same conditions as sales to the Forest
Service units. Production for other agencies must be on a space availability basis as authorized
by regulations and must not cause expenditure of appropriated funds for nursery expansion.
WO AMENDMENT 6500-2012-4
EFFECTIVE DATE: 11/29/2012
DURATION: This amendment is effective until superseded or removed.
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CHAPTER 6580 - WORKING CAPITAL FUND
6586.3 - Disposal of Surplus Working Capital Fund Nursery Products
Dispose of excess nursery products in accordance with established property disposal regulations;
do not sell excess property to the public.
Recover any WCF losses caused by sale of surplus products below cost or by other means of
disposal by increases in selling prices. Credit the proceeds from sale of surplus WCF products to
the appropriate WCF income account.
6587 - ENTERPRISE
The purpose of the WCF Enterprise program is to provide a workforce to the Forest Service with
specific program skills and technical expertise in specific individual programs. The WCF
Enterprise program, like other WCF programs, charges a rate designed to recover full costs.
The Enterprise Program has a strategic plan, a document entitled Enterprise Program
Framework, and individual Enterprise Unit Business Plans. In combination, they provide
specific program guidance.
Most of these documents can be accessed at our intranet page:
http://fsweb.wo.fs.fed.us/enterprise-program/.
The workforce, as a result of its Forest Service background, has the capability to react quickly
and efficiently to immediate Forest Service needs without the learning curve that is often
necessary with other temporary workforces.
6588 - MACHINERY
The purpose of WCF machinery is to provide support to the other WCF activities. Such item
like fuel tanks, automobile lifts, walk-in coolers, seeders, and so forth are used by the other WCF
activities to assist in providing those services. Under primary purpose principles, acquisition
will be made using WCF funding and therefore, may be tracked in EMIS or Personal Property
Information System (PROP) depending on whether or not the equipment will generate FOR and
Use revenue for future replacement.
The general criteria for inclusion into the WCF of program financed machinery is as follows:
1. Equipment will be acquired only for use by WCF activities.
2. The quantity of machinery is sufficient to require management, or the quantity is
small, but acquisition costs are high.
WO AMENDMENT 6500-2012-4
EFFECTIVE DATE: 11/29/2012
DURATION: This amendment is effective until superseded or removed.
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CHAPTER 6580 - WORKING CAPITAL FUND
3. The value of the machinery is $5,000 or more, and life expectancy greater than 2
years.
4. When WCF is used to replace machinery, the equipment must be:
a. With an identical or similar item of machinery in the same WCF programs.
b. Acquired with WCF funding.
5. If a monthly FOR and Use rate is charged to a project for the availability of the
equipment, then the asset should be tracked in EMIS. If a monthly FOR and Use rate is
not charged to a project for the availability of the equipment, then the equipment can be
tracked in PROP.
6588.1 - Computer Hardware and Software Program
The Computer Hardware and Software program is no longer a WCF activity. Remaining assets
will be managed in the WCF system until they meet disposal criteria.
6588.2 - Radio Communications and Telecommunications Equipment
The Radio Communications and Telecommunications Equipment program is no longer a WCF
activity. Remaining assets will be managed in the WCF system until they meet disposal criteria.