Financing : national finance center

The U.S. Department of Agriculture (USDA) has been the forerunner in the application of computer technology in managing administrative functions. Beginning in the early 1960's, USDA operated a centralized payroll and personnel system; in 1972, USDA established a centralized voucher and invoice processing center. In 1973, these organizations merged to become the National Finance Center. Today, national finance center provides consolidated payroll, personnel, and voucher and invoice payment systems and services to numerous Government agencies. national finance center also provides systems and support services for several Governmentwide processes, including the Federal Retirement Thrift Savings Plan. The organization has become an asset not only to the Government but to the Greater New Orleans area.

In the early 1980's, national finance center was the leader in developing and operating efficient and cost effective administrative, financial and management information systems. By 1983, this distinction paved the way for national finance center to begin cross-servicing (now known as franchising) other Federal departments and agencies.

Franchising proved to be an effective method for customers to reduce operating costs, increase efficiency, and avoid system development costs. Franchising has saved the Government, and ultimately the taxpayers, millions of dollars. These savings have been achieved through the sharing of automated systems and processing expertise.

Franchising activities are conducted through fee-for-service contracts with customers. These reimbursement agreements between national finance center and its customers incorporate conversion and on-going operating costs. Through franchising partnerships, national finance center has steadily reduced unit costs while continuing to enhance systems and improve the quality of service to its customers.

Successful implementations, on schedule and under budget, quickly prompted additional Federal departments to seek NFC's services. With over 10 years of cross-servicing experience, national finance center has grown both in numbers of customers and services provided. national finance center currently provides administrative and financial services to more than 120 agencies. national finance center services small and large customers alike. The smallest payroll/personnel customer has only two accounts; the largest customer has over 160,000 accounts.

The General Accounting Office (GAO) has recognized national finance center as the most experienced and successful franchising service provider in Government and recommended that other departments consider NFC's services before planning to design and develop independent systems.

NFC continually evaluates and enhances its services to ensure that existing systems are maintained and new systems are developed using state-of-the-art technology. We are dedicated to satisfying the expanding needs of our customers and staying current with the rapidly accelerating technological advances.

With a proven record of reducing costs while improving services for USDA and other customers, national finance center has attracted interest throughout Government. Studies by GAO and others consistently show that NFC is among the most efficient and cost effective administrative service centers in the Federal Government. By using NFC's systems and services, agencies have reduced the cost of doing the Government's business. As a result, NFC has become one of the largest franchising providers of administrative and financial services in the Federal Government.