No funds are ever apportioned to WCFs, true or false?

No funds are ever apportioned to WCFs, true or false?

• A. True
• B. False
• C. Sometimes
• D. Not sure

Answer: (B)

Working Capital Funds are meant to be self-sustaining through the charges that customers pay for goods and services. Revenues from those reimbursements fund operating costs and maintain the fund’s working capital, so ongoing funding comes from receipts rather than annual appropriations. However, there are times when a WCF receives funding from an apportionment to provide initial capitalization or to support startup or liquidity needs. Once operating, the fund should generate enough revenue to cover its costs, but the possibility of an apportionment at startup or during unusual cash-flow situations means the statement that funds are never apportioned to WCFs isn’t accurate.

Working Capital Funds are meant to be self-sustaining through the charges that customers pay for goods and services. Revenues from those reimbursements fund operating costs and maintain the fund’s working capital, so ongoing funding comes from receipts rather than annual appropriations. However, there are times when a WCF receives funding from an apportionment to provide initial capitalization or to support startup or liquidity needs. Once operating, the fund should generate enough revenue to cover its costs, but the possibility of an apportionment at startup or during unusual cash-flow situations means the statement that funds are never apportioned to WCFs isn’t accurate.