Minutes

WCF Home	U.S. DEPARTMENT OF ENERGY
	WORKING CAPITAL FUND BOARD Minutes of the Meeting April 20, 2004

1.      Introduction

The Board Chair Howard Borgstrom called the meeting to order.  Howard introduced John Adams and Cleve Pillifant from EPA who observed the Board Meeting to benchmark their governance efforts.

2.      Approval of Minutes December 4, 2003 Meeting

The Board adopted the minutes of the December 4 meeting without changes.

3.      Overview of Mid-year Financial Performance

Howard Borgstrom presented an overview of the First Half of the fiscal year.  Net earnings equal $1.4 million due largely to delayed implementation of the PMCDP as a result of the continuing resolution.  We expect activity to pick up for the third quarter.  There is no need to change any pricing policies or make changes to the business lines as a result of financial performance to-date.

4.      Information Technology Advisory Committee – Charter and Co-chair

The Board accepted the charter for the advisory Committee as presented and approved the appointment of Peter Johnson as Co-chair of the Committee.

5.      Pricing Policy Reviews

·        Network – After some considerable discussion, the Board denied the recommendation to increase budget estimates used in the Corporate Review Budget to add 7% infrastructure increases in the Phone and Network business lines.  The Board wants a detailed presentation of alternatives after the IT Advisory Committee has the full opportunity to vet the recommendations of the business lines and returns to the Board with a recommendation.  In the interim the Fund Manager may add estimates for each program customer of the impact of a 7% increase in infrastructure charges for notional information only, in budget projections.

·        Corporate Systems – The Board considered whether operating costs for STARS, the accounting portion of I-MANAGE should be financed in the WCF.  Several options were discussed but the impediment for many programs was the limitation to use of program direction funding in the WCF.  Many participants felt that his activity would best be funded in their program accounts.  The board agreed on the following points:

o       Financing for  STARS should not begin before FY 2006.

o       The allocation method approved by the board was percentage budget shares.

o       Customers should assume that the Department will successfully seek congressional agreement to allow Program funds to be obligated into the WCF, at least for Corporate Business Systems, starting FY 2006.

6.      Revised BlueBook

The BlueBook has been updated in electronic format and is available online at www.ma.mbe.doe.gov/wcf .

7.      Other

Claudia Cross, DOE Chief Human Capital Officer, addressed the Board concerning OPM’s capital requirements related to GoLearn.  She also introduced her deputy Rita Franklin.

8.      Adjourn

Representing the Board