Augmentation and Miscellaneous Receipts for Revolving Funds

If you work for a revolving fund, you may be wondering if the appropriations law augmentation principle as related to the miscellaneous receipts statute (31 USC 3302(b)) applies to revolving (i.e., working capital) funds.

According to the GAO Red Book, revolving funds are able to keep receipts as long as the receipts are related to the necessary operation of the fund. If the receipt is not related to the operation of the fund, it must be deposited in the Treasury as miscellaneous receipts.

For example, a revolving fund established to perform ship overhaul may not hold an auction or car wash to augment the fund, but it may retain incentive rebates from manufacturers based on volumes of materials ordered.

In summary, only those receipts that relate to the statutory purpose of a revolving fund may be retained by the fund. To do otherwise invites the possibility of violating the Antideficiency Act (ADA). Now, aren’t you glad you asked?

To learn more about the augmentation principle and other key appropriations law concepts, check out The Appropriations Law Answer Book from Management Concepts Press.