Army Working Capital Fund: Army Faces Challenges in Managing Working Capital Fund Cash Balance during Wartime Environment
GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC
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AWCF consists of two activity groups industrial operations and supply management. The Army industrial operations activity group provides the Army with the in-house capability to conduct depot-level maintenance, repair, and upgrade produce quality munitions and large-caliber weapons and store, maintain, and demilitarize materiel equipment and supplies for all branches of DOD. To perform its mission, the industrial operations activity group employed 26,200 civilian personnel who, according to the AWCF budget, performed approximately 31.1 million hours of direct labor in fiscal year 2009. As figure 1 illustrates, the industrial operations activities receive orders from customers to perform work. Customers primarily use appropriated funds to finance orders placed with the industrial operations activities. When industrial operations activities accept customer orders, the customers appropriations are obligated by the amount of the orders. The industrial operations activities then incur costs, such as materiel and labor costs as the work is performed, and disburse funds to cover those costs. The industrial operation activities then bill the customers for the work performed.
- Manufacturing and Industrial Engineering and Control of Production Systems
- Military Forces and Organizations