Chapter 2—Working Capital Fund Overview
Forest Service (agency-owned) fleet vehicles and equipment are purchased and maintained using the Working Capital Fund (WCF). The WCF is a self-sustaining accounting system, similar to some used in private enterprise. A number of activities within the Forest Service use this accounting system to manage their funds.
For fleet equipment, the primary function of WCF is to support the Forest Service by providing efficient and safe fleet equipment and to ensure the economical acquisition, operation, maintenance, and disposal of that equipment.
WCF includes two distinct accounts: fixed
ownership rates (FOR) and use rates (USE).
FOR is a monthly rate covering the fixed costs of equipment ownership. Replacing the vehicle at the end of a set life is the major fixed cost. Management and overhead are additional fixed costs. "Profits" (when WCF receives more revenue than needed to cover costs) and "losses" can lead to increases or decreases in FOR. The three basic parts of FOR are:
Depreciation—Depreciation accounts for about 75 percent of the cost of a new vehicle and allows the Forest Service to recover the dollars paid for the vehicle when it was purchased. About 25 percent is recovered when the vehicle is sold.
Increased Replacement Cost (IRC)—This factor is based on the difference between the vehicle's original purchase price and the cost of the vehicle that will replace it. The difference is mostly due to inflation, but may also include costs of advances in technology.
Program Management—Program management (PM) and administrative costs are about 20 percent of the FOR. This part of the FOR covers the administrative costs of running the fleet program at all levels in the Forest Service.
If vehicles are maintained and kept in good condition, the Forest Service can recover more of its investment when vehicles are sold, which will help keep FOR rates low.
FOR is collected monthly and charged to the benefiting function that has possession of the vehicle on the first day of the month. FOR budgets are set up in the beginning of each fiscal year with the project manager determining project job codes that will pay for the vehicle during each month.
USE is the cost you pay for operating and maintaining a Forest Service vehicle. It includes fuel, tires, lube and oil service, washing, mechanical inspections, and repairs. Some regions, stations, or units include auto shop operation and maintenance costs in USE.
USE rates (vehicle operation and maintenance cost) are calculated using a 3-year average of the repair costs and the past year's operations costs for all vehicles of the same type (for example, ½ ton 4x2 regular cab pickup) on your National Forest. USE rates are charged for each mile or hour the vehicle or equipment is operated.
USE rates DO NOT cover the costs of unusual maintenance and repairs (as determined by the fleet manager) or repairs resulting from misuse, abuse, or accidents. These costs are charged directly to your project funds. In the case of negligence, these costs could be charged directly to the driver.
You, the driver, are the key to reducing costs.
Tips To Reduce Vehicle Operating Costs
- Complete all preventive maintenance promptly.
- Maintain your vehicles on schedule.
- Drive to conserve fuel.
- Do not use premium grade fuels.
- Maintain proper tire pressures, control speed, and avoid skidding to extend tire life.
- Do not overload your vehicle.
Chapter 3—USE Reporting and Log Books
To report WCF fleet equipment USE:
- Record your units of USE (miles, hours, days) each day.
- Report your units of USE each month.
- Distribute all units of USE to valid job codes.
On the due date determined by your region, station, or area, the designated operator must submit a record of the total units of USE during the prior month along with valid job code(s) to cover the USE charges. Additional information may be required by your unit (FSH 6509.11f, sec. 34.1)
Different regions, stations, or areas may use different forms and methods for collecting this information. See your supervisor or fleet manager for specific instructions on completing the form used on your unit.
Your reported USE record needs to be complete and accurate when you turn it in. Inaccurate USE reporting affects your project's bottom line.
Log books are required by the U.S. Department of Agriculture policy (Department Regulation DR 5400-006) to document vehicle/equipment use. The USE record and log book may be combined in one document (see example). Information in the log book is also used to support "days of use" in the annual utilization report.
