6509.11f,30.6-32.22 Page 1 of 22 FSH 6509.11f - WORKING CAPITAL FUND ACCOUNTING OPERATIONS HANDBOOK 30.6 - Equipment Rental Activities. The fleet equipment/ Working Capital Fund (WCF) accounting system operates activities in the classification of equipment rental. The activities are: Activity Description 000 Non-WCF fleet equipment includes the following type fleet equipment: 1. Project owned 2. Commercially leased 3. General Services Administration 011 WCF fleet equipment rental 021 WCF aircraft operations 31 - WORKING CAPITAL FUND INCOME. Income for the Working Capital Fund (WCF) fleet equipment rental (activity 011) and WCF aircraft operations (activity 021) originates from the rental of WCF-owned fleet equipment and WCF-owned aircraft to Forest Service programs. The rental rate consists of the following two components, each of which recovers certain costs inherent with owning and operating the equipment: 1. Fixed Ownership Rate (FOR). The FOR recovers the "fixed" cost of owning equipment. Fixed cost varies little regardless of whether the equipment is in use; therefore, the FOR is the charge for the availability of the equipment. The FOR is chargeable on a monthly basis and is similar to the daily or weekly rate that a commercial auto rental agency charges. 2. Use Rate. The use rate recovers the variable costs incurred in the operation and maintenance of fleet equipment and aircraft. Variable costs increase with increased usage of the equipment; therefore, the use rate is chargeable only for actual use of the equipment or aircraft. The Equipment Management Information System (EMIS) charges users for equipment and aircraft use based on the number of units of use that units reported for the period. The unit of use may be a mile, an hour, or a month. The use rate is very similar to the per mile rate that a commercial auto rental agency charges. The WCF neither operates nor receives income from project-owned, commercially leased, or General Services Administration (GSA) motor vehicles. The WCF uses the income from equipment and aircraft rentals to recover expenses that it incurs in providing the equipment. Exhibit 01 shows the WCF income and expense accounts and their relationship to the FOR and use rates. 31 - Exhibit 01 WCF Rental Rates for Recovering Costs Account Used in Computing Number Rental Rate for FOR USE 425 X 429 X 453 X 454 X 601 X 602 X 603 X 604 X 605 X 606 X 611 X 612 X 613 X 617 X 618 X 619 X 620 X 624 X 625 X 627 X 635 X 636 X 637 X 640 X 641 X 645 X 650 X 652 X 653 X 654 X 671 X . 31.1 - Entering, Changing, and Deleting Fixed Ownership Rates and Use Rates. One of the first steps in computing Working Capital Fund (WCF) income is to establish the fixed ownership rates and use rates in the Equipment Management Information System (EMIS). The EMIS then uses these rates to compute an expense for the benefiting program and income for the WCF. The WCF financial manager prepares Form FS-6500-66, Fleet Equipment and Aircraft Rates (WCF), to enter the monthly FOR and use rates for WCF-owned (O/T-1) fleet equipment (P/T-155) and WCF-owned (O/T-1) aircraft (P/T-157). The Region enters information on form FS-6500-66, transmits the data to the Fort Collins Computer Center (FCCC), which later transmits the data to the National Finance Center (NFC). The NFC enters the data into the Fleet Equipment/Working Capital Fund Master File for use in computing income and expense. The Region transmits data from the form FS-6500-66 to FCCC, which transmits it to NFC using the record layout "Document Type-00." Exhibit 01 is an example of form FS-6500-66 showing its use for entering rates into the system. Exhibit 02 is an example of the use of form FS-6500-66 for changing rates for class(es) currently in the system. Exhibit 03 is an example of the use of form FS-6500-66 to delete rates. Instructions for completing the forms are a part of each exhibit. 31.1 - Exhibit 01 SEE THE PAPER COPY OF THE MASTER SET FOR SECTION 31.1 - EXHIBIT 01. 31.1 - Exhibit 01--Continued Instructions for Preparing Form FS-6500-66 to Establish FOR and Use Rates To Be Used Block Maximum With Activity No. Digits Item 011 021 Instructions 1 1 ACTION CODE X X Enter action code "1" which is used establish rates for a class that is not in the file. Use Action code "1" only to establish a rate for a class that is not currently listed in the rate table. 2 2 REGION X X Enter the 2-digit numeric code that identifies the Region to which the rates apply. 3 2 UNIT X X Enter "00" to indicate that the rates apply to all units within the Region. 4 3 WCF ACTIVITY X X Enter the 3-digit numeric code for identifying the WCF activity to which the rates apply. The codes are: Code Activity 011 WCF fleet equipment Use class codes 000-980 for WCF fleet equipment. 021 WCF aircraft operations Use class codes 981-999 for WCF aircraft. 5 2 FISCAL YEAR X X Enter the last 2 digits of the fiscal year to which the rates apply. Entry for information only. 6 5 DATE X X Enter the 5-digit numeric Julian date. 7 ITEM NO. Self-explanatory. 8 3 CLASS CODE X X Enter the 3-digit code for identifying the class of equipment. Use class codes 000-980 for WCF fleet equipment. Use class codes 981-999 for WCF aircraft. The EMIS edits class codes against NFC MASC Table 62. CLASS CODE 000 31.1 - Exhibit 01--Continued To Be Used Block Maximum With Activity No. Digits Item 011 021 Instructions Each Region must establish a "default" FOR, use rate, and replacement factor rate in class code 000. This default rate is for use in situations when the Region is processing either or both FOR and use, but has deleted the rate for the class. The default rate should equal the Region's weighted average rate. 9 8 USE RATE X X Enter the use rate for the class of equipment. Limit the rate to 4 whole numbers (before the decimal point) and three places behind the decimal point. 10a 5 MONTHLY FOR X X Enter the monthly FOR for the class. Enter in whole dollars only (Maximum-5 digits). FOR cannot equal zero (positive amount required). 10b 4 REPLACEMENT X Enter the replacement factor for the class. FACTOR Limit the figure to 4 places behind the decimal point. Include a default replacement factor for class code 000. Use replacement factor only for class codes 000-980. 11a 5 MINIMUM X Enter the lower level (amount) of UNITS OF USE tolerance for the Region for units of use PER GALLON OF per gallon of fuel. Limit the amount to FUEL (MPG) 3 places in front of the decimal point and one 1 digit behind the decimal point. If establishing a minimum amount, it is also necessary to establish a maximum amount, and vice versa. Do not use with class code 000 or class codes greater than 980. 11b 5 MAXIMUM X Enter the upper level (amount) of UNITS OF USE tolerance for units of use per gallon of PER GALLON OF fuel (MPG) for the class. Limit the FUEL (MPG) amount to 3 places in front of the decimal point and 1 digit behind the decimal point. Do not use with class code 000 or class codes greater than 980. To Be Used Block Maximum With Activity No. Digits Item 011 021 Instructions 12a 7 MINIMUM X Enter the lower level of tolerance OPERATION established for the Region for operation COST PER UNIT cost per unit of use for the class. The OF USE amount is limited to 3 places in front of the decimal point and 3 places behind. If establishing a minimum amount, it is also necessary to establish a maximum amount, and vice versa. Do not use with class code 000 or class codes greater than 980. 12b 7 MAXIMUM X Enter the upper level of tolerance for the OPERATION Region for operation cost per unit of use COST PER UNIT for the class. Limit the amount to 3 places OF USE in front of the decimal point and 3 places behind the decimal point. Do not use with class code 000 or class codes greater than 980. 13-18 Self-explanatory. 31.1 - Exhibit 02 SEE THE PAPER COPY OF THE MASTER SET FOR SECTION 31.1 - EXHIBIT 02. 31.1 - Exhibit 02--Continued Instructions for Preparing Form FS-6500-66 To Change FOR and Use Rates Block Maximum With Activity No. Digits Item 011 021 Instructions 1 1 ACTION CODE X X Enter action code "2" to indicate a change of a rate currently in the system. This includes the rate changes for a new fiscal year. Use only one action code per form. 2 2 REGION X X Enter the 2-digit numeric code that identifies the Region to which the rates apply. 3 2 UNIT X X Enter 00 4 3 WCF ACTIVITY X X Enter the 3-digit numeric code that identifies the activity (memo only). 5 2 FISCAL YEAR X X Enter the last 2 digits of the fiscal year (memo only). 6 5 DATE X X Enter the 5-digit Julian date. 7 ITEM NUMBER Self-explanatory. 8 CLASS CODE X X Self-explanatory. 9-12 X X Enter the new rate only in the block that needs to change. Leave blank the items that are to remain unchanged. Enter "zero" for a particular rate (FOR or Use) to delete that rate when there is no intention of deleting both rates. 13-18 Self-explanatory. 31.1 - Exhibit 03 SEE THE PAPER COPY OF THE MASTER SET FOR SECTION 31.1 - EXHIBIT 03 31.1 - Exhibit 03--Continued Instructions for Preparing Form FS-6500-66 To Delete FOR and Use Rates Block Maximum With Activity No. Digits Item 011 021 Instructions 1 1 ACTION CODE X X Enter action code "3" to delete the class, FOR and use rates and related items. 2 2 REGION X X Enter the 2-digit numeric code that identifies the Region to which the rates apply. 3 2 UNIT X X Enter 00 4 3 WCF ACTIVITY X X Enter the 3-digit numeric code that identifies the activity (memo only). 5 2 FISCAL YEAR X X Enter the last 2 digits of the fiscal year (memo only). 6 5 DATE X X Enter the 5-digit Julian date. 7 ITEM NO. X X Self-explanatory. 8 3 CLASS CODE X X Enter the 3-digit class code for only the class or classes for deletion. The EMIS will delete the class and all related rates. The EMIS cannot delete class code 000. It is possible to change the rates but not to delete them. 9-12 No entry necessary. 13-18 Self-explanatory. 32 - FIXED OWNERSHIP RATE. The Fixed Ownership Rate (FOR) is a monthly charge for the availability of Working Capital Fund (WCF) fleet equipment and WCF aircraft. The charge recovers the "fixed" cost (expense) for equipment ownership (sec. 31, ex. 01). Since FOR recovers "fixed" cost, the Equipment Management Information System (EMIS) charges the monthly FOR whether the Unit operates the equipment or not. 32.1 - Fixed Ownership Rate Budget. At the beginning of each fiscal year, the WCF Financial Manager programs (budgets) the FOR for each item of WCF fleet equipment and WCF aircraft for the full fiscal year. The EMIS uses this budget to: 1. Generate paid FOR schedules each month, crediting income to WCF and charging the expense to benefiting programs. 2. Generate obligations for the respective management codes for all unpaid FOR. 3. Provide obligational authority (via unfilled customer orders) for the WCF. Districts, Forests, or other units that have assigned WCF fleet equipment or WCF aircraft, enter the FOR on Form FS-6500-62, Fleet and Aircraft Fixed Ownership Rate Budget, or on Form FS- 6500-61, Fleet Equipment and Aircraft (Accountability and Data Record). Use these forms to enter, change, or delete the FOR budget for WCF fleet equipment and WCF aircraft. However, Form FS-6500-61 is limited to a single piece of equipment. See sections 32.2 and 32.3 for instructions for preparing both forms. Unit or program managers must determine the primary purpose for the assignment of each piece of fleet equipment and budget FOR cost according to unit work plans. These work plans, showing both FOR and use rate costs, are the source documents for preparing the FOR budget and may be the basic for changing use. There must be close correlation between planned work and equipment assigned. Allocation of the annual FOR charges (elements) by month, and use, should correspond, to the extent practicable, to the planned assignment of the equipment throughout the year. Application of the primary purpose financing principle may result in no FOR charges to programs receiving minor benefits. There may be some specialized equipment in the fleet that, because of its nature and limited use, does not justify assignment to a single unit; for example, hydroseeders, mulchers, blister rust control spray rigs, and chippers. For control purposes, assign this type of equipment to a holding unit; normally, that unit is in the Regional Office. The unit that holds equipment on the first day of the month is responsible for paying the FOR for that month. Do not break the continuity of the FOR charge when one unit transfers equipment to another unit. The releasing unit pays the full month's FOR charge for the month in which the equipment is released. Thereafter, charge FOR to the unit that receives the equipment. Charge FOR for new equipment beginning with the month after receipt. Enter information from forms FS-6500-62 and FS-6500-61 (lower section containing FOR data) for establishing or changing FOR budget data into the system at the Regional or Forest level. 32.2 - Instructions for Preparing Form FS-6500-62, Fleet and Aircraft Fixed Ownership Rate Budget 32.21 - Establishing Initial Fixed Ownership Rate Budget. Enter information about the fixed ownership rate into the system at the beginning of each fiscal year. See exhibit 01. 32.21 - Exhibit 01 SEE THE PAPER COPY OF THE MASTER SET FOR SECTION 32.21 - EXHIBIT 01. 32.21 - Exhibit 01--Continued Block Positions Item Instructions 1 2 REGION Enter the 2-digit numeric code that identifies the Region using the equipment. 2 2 UNIT Enter the 2-digit numeric code that identifies the unit using the equipment. 3 1 OWNERSHIP Enter "1" to indicate that the TYPE equipment is WCF-owned. 4 3 PROPERTY Enter the 3-digit numeric code TYPE that identifies the type of property for which the FOR budget is being established. The codes are: Code Property Type 155 Fleet Equipment 157 Aircraft Prepare separate forms for WCF fleet equipment and WCF aircraft. 5 2 SUBUNIT Enter the 2-digit numeric code that identifies the subunit. (This block is only for intra-unit control and is not for entry into the master file from this form.) 6 2 FISCAL Enter the last 2 digits of the YEAR fiscal year for the budget (for information only, not for entry into the master file). 7 1 ACTION Enter "1" (original). Each form CODE has a limit of one action code. 8 5 DATE Enter the Julian date of the form's preparation. 32.21 - Exhibit 01--Continued Block Positions Item Instructions 9 4 EQUIPMENT Enter the 4-digit numeric code NUMBER that identifies the particular item of equipment. List the equipment number only once even if listing more than one management code or using more than one page, as long as the line items for the equipment are consecutive. 10 1-6 MANAGEMENT Enter the management code(s) CODE for which the FOR expense is chargeable for the indicated months. You may distribute the annual FOR budget for one piece of equipment to a maximum of 12 management codes. Do not divide the FOR budget between two or more management codes for any one month. 11 1 BUDGET Enter "3." The National Finance OBJECT Center converts this to budget object class 25.13. 12 1 MONTHLY Enter a "1" for each month FOR for which FOR is chargeable ELEMENTS to the management code listed for the line. 13 ESTIMATED List the estimated units of use UNITS OF planned for the item of USE equipment. Regions should supplement this section to give instructions for use of this block. 14 COMMENTS Self-explanatory. 15 & 16 PREPARED BY Self-explanatory. AND DATE 32.21 - Exhibit 01--Continued Block Positions Item Instructions 17 & 18 APPROVED BYSignature of employee who AND DATE has authorization to approve and date signed. 32.22 - Establishing Initial Fixed Ownership Rate Budget for Omitted or Newly Received Equipment. The instructions for preparing form FS-6500-62 for omitted or newly received equipment are the same as those for establishing the initial fixed ownership rate (FOR) budget, with the following exceptions (see exhibit 01). 32.22 - Exhibit 01 SEE THE PAPER COPY OF THE MASTER SET FOR SECTION 32.22 - EXHIBIT 01. 32.22 - Exhibit 01--Continued Block Positions Item Instructions 12 MONTHLY FOREnter the number of the ELEMENTS monthly fixed ownership rate elements chargeable to the management code listed for the line. It is acceptable to use multiple monthly elements on only the first month. The multiple may not be larger than the respective number of the month within the fiscal year; that is, the maximum for November = 2, December = 3, January = 4. The addition for all items of equipment on the form must be effective the same date. Enter "1" for each of the remaining months that FOR is chargeable to the management code listed on the line. 14 Enter the date of receipt of the equipment. The date is for information only and not for entry into the system from this form.