REVOLVING FUNDS

REVOLVING FUNDS A revolving fund is established to provide working capital for the Navy. Money is paid for the procurement of materials and services; and, is reimbursed when these materials and services are received or sold to local Navy commands. There are various types of revolving funds. A brief description of several types will be pro- vided in the following sections. Navy Stock Fund (NSF) It is not practical for each activity in the Navy to purchase all of its operating require- ments directly from commercial suppliers. The Navy Stock Fund (NSF) exists for this reason. It provides the necessary capital to finance the purchase and maintenance of stocks of common supply items which are required for the support and operation of the entire Navy. Basic capital (money) for the NSF is made available by Con- gress in much the same manner as appropria- tions. The total value of the NSF is reviewed an- nually by Congress and is adjusted accordingly to meet current operating requirements. The RP needs to be familiar with certain charges and credits which are applied to the NSF. Although record keeping of the charges and credits for each command is the primary responsibility of the storekeeper in the supply department, a basic understanding of NSF financial responsibilities will enhance the RP’s understanding of the Navy supply system. Figure II-3-2 shows a list of the most common NAVY STOCK FUND NSF CHARGES NSF CREDITS Expenditures for the purchase or manufac- Issues charged to an appropriation or fund. ture of stores, supplies, equipment, and services. Cash sales (including sales to other Govern- Appropriation adjustments lodged against the ment departments). fund for sale of materials from another account. Sales to other accounts. Losses by accounting, price adjustment, Collections from carriers for material either appraisal, inventory, sale, survey, which lost or damaged in transit. are not properly charged to an appro- priation. Gains by accounting, price adjustment, Donations of surplus material for public appraisal, inventory, sale, and survey health and educational purposes including which are not properly credited to an research. appropriation. Authorized charges for repair of material. Issues of clothing items for health and Reimbursement from the Defense Logistics Agency (DLA) for the pro rata share comfort when not charged to another of proceeds from the sale of surplus, appropriation. scrap, and salvage material which has Payment of claims approved by the Gen- been expended. eral Accounting Office (GAO). Figure II-3-2.—Most Common Charges and Credits of the Navy Stock Fund (NSF). 3-3