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).
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