Cyclopedia

Working Capital Fund

Summary

A Working Capital Fund is a revolving fund authorized by law to finance a cycle of operations. It is a method of funding certain administrative services in a manner different than funding through annual appropriations. The fund obtains receipts through some form of goods or services, and acts in a manner similar to a commercial enterprise. 

Since they are revolving funds, WCFs do not require an annual appropriation but rather have the authority to legally obligate the receipts collected through its business-like activities. If insufficient receipts are collected, and additional funds are needed, then Congress must determine whether to provide additional appropriations. The enacting law for each WCF determines the parameters of its operations. 

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GAO Glossary of Terms and Definition (September 2005)

Working Capital Fund

A type of intragovernmental revolving fund that operates as a self-supporting entity that conducts a regular cycle of businesslike activities. These funds function entirely from the fees charged for the services they provide consistent with their statutory authority. (See also Intragovernmental Revolving Fund Account under Intragovernmental Fund Accounts under Federal Fund Accounts under Account in the President’s Budget.)

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