1. Purpose. This chapter provides operational guidelines applicable to the Investment components. These components are telecommunications, equipment, facilities, and publications.
2. Objectives. The objectives of the Investment components are to provide a means to finance significant investments that cannot be accomplished through normal single-year funding; that is, the replacement or addition of equipment in support of U.S. Geological Survey (USGS) programs, procurement of telecommunications equipment and environmental facilities housing that equipment, publication of technical and scientific reports, and payment of facilities-related expenses in support of USGS programs. Normal operating expenses may not be funded through the WCF.
3. Planning, Budgeting, and Execution. Requesting officials will, on an annual basis, analyze program needs for equipment, telecommunications, facilities, and publications and establish Investment Plans (IP) for each investment. The minimum total amount for an IP is $10,000, with a contribution requirement of at least $5,000 per year for the first two years. The contribution of funds for all Investment components must be made, at a minimum, in two fiscal years before acquisition can occur. Acquisition may occur after the first contribution in the second fiscal year is made.
4. Documentation. The approved document for using a particular Investment component is the IP BASIS+ Report CCM 800. Through the request and approval of IPs, the following required information is provided: (1) a detailed description of the investment, (2) the amount and schedule of the investment contributions, and (3) planned expenditures. Generally, IPs are prepared at the beginning of the fiscal year but may be initiated at any time. Contributions to Investment components are processed by the requesting official’s Fiscal Services office.
(1). Purpose. The IP BASIS+ Report CCM 800 serves as a source document for recording plans as funding agreements (RAs) in the FFS.
(2). Usage. This form is required for any of the WCF Investment components. A separate IP is prepared for each investment, organization level, and Federal supply group (FSG) code, and/or facility code (see Appendix C). It is imperative that the descriptions be in compliance with established Bureau standards.
(3). Approvals. IPs will be reviewed and approved in accordance with guidance found in the Survey Manual Chapter (SM) 335.6, Working Capital Fund, Responsibilities and Delegations, paragraph 5. SM 205.10, Appendix A, Section P, establishes the delegations for the USGS WCF (http://www.usgs.gov/usgs-manual/200/205-10.html).
B. Preparation of an Investment Plan. See Appendix E for IP descriptions and guidelines, detailed instructions on the preparation of an IP in BASIS+, and an example of a completed form (CCM 800).
C. Revised Investment Plan. Revisions to an IP may occur at any time during the fiscal year but require modification of the initial IP and reapproval. A modification is required for any type of change in a contribution, the timing of the contribution, and/or the purpose of the IP. For example, the purpose in an equipment IP can be changed, if it is determined that a server is needed rather than the personal computers originally planned for.
D. Unused Portion of a Contribution. After the investment item has been procured, any unused portion of a contribution must stay within the WCF. If no other use is needed within the same FSG program code, the remaining balance of the investment should be transferred to another FSG program code or Investment component. Refer to section E and F below.
E. Withdrawals. Current year contributions may be withdrawn with the approval of Office Chiefs reporting to the Director/Deputy Director, Associate Directors, Chief Information Officer; Regional Directors, or the Chief, Administrative and Policy Services. To propose a withdrawal of current year funds, the requesting official must follow the procedure below:
(1). Prepare a memorandum to the Approving Official for the organization, requesting the withdrawal and stating the circumstances for the withdrawal. The revised IP and IV reflecting the current year withdrawal must be attached.
(2). Forward to the servicing Fiscal Services office.
F. Redirections. Prior year contributions may not be withdrawn under any circumstance but may be redirected to new or other existing approved IPs in any Investment component, with the approval of Office Chiefs reporting to the Director/Deputy Director, Associate Directors, Chief Information Officer, Regional Directors, or the Chief, Administrative and Policy Services. To propose a redirection of prior year funds, the requesting official must follow the procedure outlined below:
(1). Prepare a memorandum to the Approving Official for the organization, requesting that the prior year contributions be applied to another IP. An explanation of the redirection must be included.
(2). After the redirection has been approved, the requesting office prepares a revised IP for the agreement associated with the redirection and a new or revised IP for the agreement receiving the contribution. If the redirection results in an entirely new IP, not yet approved, the rules outlined in SM Chapter 335, paragraph 6, Operations of Funds Components, Section B(1)(a) through (c) apply. After signature by the appropriate Approving Official, the documents must be forwarded to the appropriate Fiscal Services office for processing.
(3). The appropriate Fiscal Services personnel will prepare a written request to the OAFM, Receivables Management Section, to transfer the prior year funds as a cash receipt (CR) to the agreement receiving the contribution.
5. Contributions. Contributions to Investment components are accomplished by using FFS internal vouchers (IV). The requesting official or designee will e-mail the servicing Fiscal Services office with a request to process an internal voucher. The contributions will be in accordance with the Investment Plan(s). The IV document draws funds from an existing account number (creating an expense in the operating funds) and posts them as collections (creating funding in the WCF) to the WCF agreement. This completes the transfer of funding into the WCF. The e-mail must contain the following information: Cost Center allocation organization, customer number, agreement number, account number to charge (non-WCF), and amount of contribution.
6. Acquisition. After time constraints have been met and all contributions have been made and moved into the current fiscal year, normal procurement procedures may be completed for the acquisition of goods and services. The account number assigned to the WCF agreement must be used to acquire the item(s). Because of tracking and reporting requirements, FFS will not allow monies from more than one fund type to be used for purchase of any one piece of property. For example, assume that $20,000 has been invested in the WCF to purchase a vehicle, but the cost of the vehicle has risen to $24,000. The additional $4,000 in cost will need to be contributed to same the WCF agreement and funded to the same account number to purchase the vehicle, after preparation of a revised IP and IV. The $4,000 cannot be paid directly from a non-WCF account.
7. Reporting - Spending Controls. The funding levels will be limited in FFS for the Investment Plans that have contributions that meet the two fiscal years requirement. The control flags in FFS will not allow obligations/expenditures to exceed the funding level.
8. Specifics of the Investment Components.
A. Telecommunications Investment Component.
(1). Scope. The Telecommunications Investment component provides centralized funding for telecommunication hardware, software, facilities, and related services. Examples of the use of this component include, but are not limited in type or location to, the replacement or expansion of the Reston and Menlo Park private automatic branch exchange (PABX) systems, the PBX switch on the Denver Federal Campus, and wide area network equipment (including switches, routers, network monitoring systems, and related customer premise equipment (CPE)). The component is not intended to provide a mechanism for the day-to-day operating expenses associated with telecommunications. The Telecommunications Investment component may also be used by requesting officials for local needs.
(2). Department, Bureau, Region, and National Center Telecommunications Components. Telecommunication investments support needs at various organizational levels, requiring multiple office coordination and agreements, as follows: (1) Department wide efforts, such as Enterprise Services Network (ESN) hardware depreciation; (2) Bureau wide efforts, such as telephone system replacement in Menlo Park, Denver, and Reston and CPE equipment; (3) Region wide efforts, such as the Central and Western Region local area network (LAN) replacement; and (4) Center wide efforts, such as the National Center renovation projects.
(3). Cost Center Components. Telecommunication investments support (1) LAN replacements or upgrades and (2) local telephone system replacement.
(4). Responsibilities. The responsibilities and procedures stated in SM 335.6 and the first section of this handbook apply to any Telecommunication Investment component. Authorities unique to the telecommunications component follow:
(A). The USGS Investment Review Board is responsible for conducting an overall review of the Telecommunications Investment component during the first quarter of each fiscal year.
(B). The Chief Information Officer is responsible for ensuring management review and concurrence with all Bureau, Region, and National Center Investment Plans within the Telecommunications Investment component.
(C). For the Menlo Park, Denver, and Reston telephone systems and for ESN telecommunication investments, the USGS Telecommunications Manager is responsible for tracking funds in the WCF Investment Plan(s). Further, the Telecommunications Manager will ensure that all requisitions are prepared properly and that approvals are obtained.
(5). Procedures. For general procedural instructions, see sec. 4, Documentation (p. 18-19). All IPs for Bureau, Region, and National Center telecommunications will be reviewed at least semiannually by the Chief Information Officer.
B. Equipment Investment Component.
(1). Scope. The Equipment Investment component provides a means to invest funds for equipment too costly to acquire in a single fiscal year. The acquisition, replacement, and/or augmentation of scientific equipment, motor vehicles, and other equipment is a long-term process and may require a substantial investment greater than annual appropriations can handle. This component provides a workable mechanism for establishing an efficient, effective, and economic program to meet existing and future USGS equipment needs in support of programs and for reducing significant one-time outlays. Appendix C lists the approved FSG program codes for equipment that may be funded through contributions to the Equipment Investment component.
It is imperative that expenses charged to the WCF align with the intent of the IP. When purchasing equipment, freight and shipping are considered operating expenses and should be cost coded to appropriated funds. Examples of other inappropriate charges include, but are not limited to, maintenance contracts, supplies and materials, and travel.
(2). Responsibilities. The responsibilities and procedures stated in SM 335.6 and the first section of this handbook apply to any Equipment Investment component.
(3). Procedures. For general procedural instructions, see sec. 4, Documentation (p. 18–19).
(A). The IP must clearly identify specific equipment needs and estimated costs by using the Equipment Investment component (see Appendix E for detailed descriptions). A separate IP is required for each FSG program code.
(B). The Equipment Investment component will retain ownership of equipment purchased by the component. The proceeds from the sale of WCF equipment will remain in the Equipment Investment component, excluding vehicles (see SM chapter 338.9 for additional information). The Cost Center will need to generate a new or revised IP for new or replacement equipment.
C. Facilities Investment Component.
(1). Scope. The Facilities Investment component may be used in support of any real property source for authorized facility and space-management investment expenses. The space sources include owned and leased space and facilities provided by the General Services Administration (GSA), the USGS, USGS cooperators, or other parties. The component may not be used for expenses that are funded with annual appropriations, such as building operating expenses (rent, utilities, custodial contracts, and recurring maintenance) and other day-to-day building support expenses.
Authorized investment expenses are multiyear expenses incurred to design and alter space; to install casework for initial occupancy; to relocate equipment, furniture, and other contents to another facility or block of space; to replace or repair major building systems and other major building components; to upgrade, improve, or modernize facilities and space; to preserve or extend the life cycle of a facility asset; and to construct new and replacement buildings and other structures and facilities.
Examples include the following:
(A). Nonrecurring repair expenses, such as those for roof replacement, a major building system upgrade, or parking lot replacement or repaving. What distinguishes a nonrecurring from a recurring repair is frequency. Caulking seals along a roof seam and periodic tarring around exhaust canopies extruding through the roof are recurring expenses that should be funded out of annual appropriations for day-to-day maintenance activity. In contrast, replacing the entire roof is infrequent, though cyclical, typically occurring every 20 years or more. Funds for the eventual replacement of the roof may be reserved through the component over multiple years.
(B). Emergency repair expenses, such as those for replacing or repairing a roof damaged by a storm or other natural disaster or replacing or repairing a major building system that has failed prematurely. Funds may be reserved through the component for emergency facility contingencies.
(C). Facility relocation expenses, such as those for packing, transporting, and unpacking furniture and other building contents (but not employee relocation costs) when an activity moves from one location to another. Similarly, funds may be reserved in the component for costs associated with the vacated building (for example, restoration to its original state, if required under the terms of the lease, and hazardous materials cleanup). Funds may also be reserved for costs required to alter the space in the new building to meet tenant requirements (for example, planning, design, and layout services; build-out costs; and replacement and refurbishment of telecommunications systems, casework, equipment, and systems furniture).
(D). Facility modernization expenses, such as those for renovating and upgrading existing space. The types of authorized modernization expenses include those listed in paragraph C.1.(C) above. The costs of improving space utilization and reassigning, releasing, and altering existing space to change its function (for example, converting a laboratory to office space) are also considered modernization expenses.
(E). New construction expenses, such as those for designing and constructing a new or replacement building or other structures and facilities, including new additions to an existing structure. Funds may be reserved to pay all or part of the expenses of construction and associated costs (for example, surveys, demolition of displaced structure, site preparation, engineering and architectural services, inspection and construction services).
(F). Decommission of abandoned field sites has been classified as “constructed assets”; this classification allows the use of the Facilities Investment component to fund such activities. Some examples of abandoned field sites include, but are not limited to, abandoned wells or stream gages (see Instructional Memorandum No. OB 2003–002). Only one Investment Plan is needed to service all of the field sites within a Cost Center’s geographic area.
(2). Responsibilities. The responsibilities and procedures stated in SM 335.6 and the first section of this handbook apply to any Facilities Investment component.
(3). Procedures. For general procedural instructions, see sec. 4, Documentation (p. 18-19).
D. Publications Investment Component.
(1). Scope. The Publications Investment component may be used for technical and scientific report publication expenses that span more than one fiscal year or that are too costly to expend in a single fiscal year. This component may be used only for contractual services as described in Object Classes 24 – Printing and Reproduction, 25.2 – Other Services, and 25.3 – Purchase of Goods/Services from Government Accounts. No personnel costs may be incurred in the Publications Investment component.
(2). Responsibilities. The responsibilities and procedures stated in SM 335.6 and the first section of this handbook apply to any Publications Investment component.
(3). Procedures. For general procedural instructions, see sec. 4, Documentation (p. 26–29). An Investment Plan may be prepared for a single publication with a cost of $10,000 or more. In addition, an Investment Plan may be prepared for a group of publications; however, an individual publication plan must be submitted for each publication within the Investment Plan. The IP must equal the summation of all referenced publication plans. All publication plans must accompany the IP. The minimum requirements for a publication plan are (1) project name, (2) anticipated publishing date, and (3) publication cost.