Draft Minutes

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	WORKING CAPITAL FUND BOARD Minutes of the Meeting March 1, 2005

1.      Introduction

The Board Chair, Howard Borgstrom called the meeting to order.  Howard introduced Susan J. Grant, DOE CFO, and Rose Parks, DOE CIO, to the Board.  Both Susan and Rose addressed the Board and indicated their familiarity with working capital funds.  They are both committed to working with the Board to satisfy customer needs and keep costs contained for these central services.  Howard also introduced Francisco Cota, an MPA student from George Washington University, who is shadowing Howard today.

The Board honored Roscoe Harris for his service to our nation in his active duty status.  They asked Howard Borgstrom to make an appropriate demonstration of their sentiment.

2.      Approval of Minutes November 17, 2004 Meeting

The Board adopted the minutes of the November 17 meeting without changes.

3.      Fund Manager First Quarter Report for FY 2005

Howard presented an overview of the First Quarter Report for FY 2005.  The fund operated with a net earnings of $1.0 million or 4.0% on $23.5 million in earnings.  He reported that all businesses are operating well and pricing policies in effect for FY 2005 are expected to fulfill the earnings needs of the businesses.

Howard also encouraged all programs to fully fund their FY 2005 requirements in the month of March, prior to implementation of STARS, April 1, and prior to cessation of funding actions for the month of April.  Reports on annual projections and current funding allotments, Table IV, will be included in the February bill to be issued by the Fund Manager’s office this week.

4.      Forrestal Sprinkler System Project

Brian Costlow presented plans to continue the safety program at headquarters by introducing a sprinkler system in Forrestal, including upgrading the fire alarm system, new lighting fixtures, and other building improvements. The schedule for the project will cover 3-4 years beginning Fall of 2005.  There will be twenty-six phases of eight to ten week duration, to move groups of two hundred employees at a time to swing space to accommodate major renovations.  All work is expected to be completed in August 2009.

Brian plans to brief the NTEU and senior DOE management with more details when they are available.  Employee health and other issues will be addressed by coordination with stakeholders and the Offices of Environmental Safety and Health, General Counsel, and Human Capital Management.

5.      Status Report from the Information Technology Advisory Group

Chris Karis addressed the board on the work of the working group and capital plan for IT Operations.  The plan is still being reviewed. If completed in time for the FY 2007 budget cycle, the plan will be briefed to the working group members, the Fund Manager’s Office, the CFO, and each board member prior to vote.  The product will be an investment plan covering the period from inception to FY 2012.

6.      Working Groups

• Population Counts – This group met January 13, to discuss options for allocating costs to WCF businesses based on population counts.  The board accepted by vote the recommendation to continue the current practice of charging field personnel to headquarter organizations based on the landlord concept.  This will be reflected in the revised pricing policies of the Policies and Procedures Manual.
• Governance Working Group - This group has met once and is actively considering several issues including Board membership and business line responsibilities.
• The PMCDP and Training Businesses are not ready to initiate working groups that were called for in the November board meeting.

7.      FY 2007 Budget Process

The basis for our initial budget estimates are Five-year Plans that the businesses owe the Fund Manager March 11.  Preliminary reviews indicate that there is no need for pricing policy changes and current pricing methods should be adequate for planning for the FY 2007 budget process.  The exception is IT Operations (discussed above).  We expect to produce budget estimates early May, for use by our program customers in time for their FY 2007 Corporate Budget Reviews.

8.      Homeland Security Presidential Directive 12

Rose Parkes addressed the board on a non-agenda item related to implementing “smart card” authentication of identity for physical and cyber-security.  Kathy Reeder and Bruce Brody are managing this effort for DOE.  She will brief the management council tomorrow morning.  OMB has directed all agencies to accommodate the funding requirements from existing appropriations.  Implementation is planned for October 2005, but specifics will not be known until GSA published the implementation schedule later this summer.

9.      The Board voted to adjourn

Representing the Board

ME      Susan Grant

CIO     Rose Parkes

NA      Dorsey Hibbitts

EM      Jim Simpson

EI         Steve Durbin   

Chair   Howard Borgstrom

SSA     Lesley Gasperow

EH       Kevin Kelly

EE        Tom Heavey

GC       Susan Beard

RW      Dick Levan      

PI         Jon Mathis       

FE        Chuck Roy

NE       Lang Soo Hoo

SC       John Alleva

Steve Garvey - IM

Dan Smith – IM

Maria Jones – FE

Francisco Cota - GWU

Tawanna Hagans - RW

ME

Dave Robinson

Amos Street

Barbara McNeal

Bob Emond

Michael Slie

Jeff Rubenstein

Mary Anderson

Tony Nellums

Louis D’Angelo

Phil Pegnato

Helen Sherman

Steve Young

John Harrison

Willie Mae Ingram

Brian Costlow

Dallas Woodruff

Doug Bielan

Michael Shincovich

Bob Joyce