Cash Management in the Defense Working Capital Funds

Abstract

Cash management consists of developing overall cash plans, monitoring cash levels, monitoring collections and disbursements, correcting operational problems that affect cash, and managing cash to prevent Antideficiency Act violations. The issue of cash management in the Defense Working Capital Funds (formerly the Defense Business Operations Fund) was identified during our audit of the Fund Balance With Treasury Account of the FY 1996 Consolidated Financial Statements of the Defense Business Operations Fund. The Fund Balance With Treasury Account audit was performed to fulfill the requirements of the Chief Financial Officers Act of 1990, as amended by the Federal Financial Management Act of 1994. This is the second in a series of reports on issues related to cash management. The first report discussed the need for better control of cash in the Defense agencies. On February 1, 1995, the Under Secretary of Defense (Comptroller) delegated the responsibility for cash management in the Working Capital Funds to the Military Departments. The Defense Logistics Agency is responsible for the Defense-Wide Working Capital Fund cash management in the Defense agencies. During FY 1996, financial management offices of the Military Departments reported $46 billion in collections and $45.7 billion in disbursements. The Defense agencies reported collections of $27.4 billion and disbursements of $29 billion. As of September 30, 1996, the reported cash balance for the Defense Working Capital Funds was $4.1 billion. On December 11, 1996, the Under Secretary of Defense (Comptroller) announced that the Defense Working Capital Funds would be separated into four (and potentially a fifth) working capital funds, one of which would be a Defense agencies' fund with cash managed by the Defense Logistics Agency. That realignment does not affect the issues discussed in this report.

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Document Details

Document Type
Technical Report
Publication Date
Dec 15, 1997
Accession Number
ADA368232

Entities

Organizations

  • Office of the Inspector General, U.S. Department of Defense

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Accounting
  • Air Force
  • Business Administration
  • Commerce
  • Congress
  • Department Of Defense
  • Financial Management
  • Governments
  • Information Systems
  • Law
  • Money
  • National Security
  • Navy
  • Standards
  • Training
  • United States
  • United States Transportation Command

Readers

  • Defense Financial Management and Audit.