In November 2006, the Office of the Chief Financial Officer at the U.S. Citizenship and Immigration Services (USCIS) tasked Vergys LLC with the implementation and supervision of Activity-Based Costing/Management (ABC/M) in support of a Fee Review. At that time, USCIS had not performed a comprehensive review for 8 years. USCIS is almost solely funded by fee revenue and must accurately determine fees to recover sufficient revenue to fund operations. Neglecting this process for 8 years left USCIS with a potential budget deficit of approximately $1.1 billion ($500 million for current operations and $600 million for operational enhancements and inflation) for a $2.3 billion biennial budget.
Vergys conducted the USCIS FY 2007 Fee Review by developing an ABC/M model that was in line with the Statement of Financial Accounting Standards No. 4 released by the Federal Accounting Standards Board (FASB) and preparing fee study documentation. This process involved a detailed biennial analysis of both the current and projected budget and operational structure of the agency. Vergys identified and analyzed all inputs that were necessary to develop an accurate ABC/M model and determine fees for service for the FY 2008/2009 biennial period. Vergys also supported the USCIS Chief of Budget in the preparation of a proposed and final rule and provided audit support by addressing GAO inquiries and conducting presentations to facilitate GAO’s understanding of the Fee Review and resulting fee increases.
Vergys’ efforts at balancing the USCIS’s budget earned us the Director’s Exceptional Service Award issued by the USCIS Chief of Budget in FY 2007. Despite the downturn in the economy, fee revenues for the biennial period were within 1.7% of the $2.3 billion projections calculated by Vergys during the Fee Review. Following the FY 2007 Fee Review, Vergys’ engagement at USCIS expanded to include the implementation of Profitability and Cost Management (PCM), a SAP Business Intelligence (BI) tool, and subsequent fee reviews. Vergys has implemented the SAP PCM in multiple stages to accommodate ongoing Fee Review support.
Vergys continues to support USCIS by further developing the reporting and performance management capabilities of SAP PCM. This includes the creation of monthly and quarterly budget and revenue reports and summary dashboards to provide current snapshots that enhance the decision-making process within the USCIS Office of the Chief Financial Officer.