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    What are the definition and differences between mission funding and working capitol funding. Is general funding an interchangable term with mission funding?


    Answer

    Mission Funding - Direct funding authorized and appropriated by Congress for  specific Department of Defense (DoD) mission efforts such as developing and procuring weapon systems, aircraft, ship building, space and missile defense  and other similar efforts.  Organizations establish Program Objective Memorandums (POMs) and Budget Estimate Submissions (BESs) annually to determine amount of funds required for their programs/projects.  DoD 5000.2r  provides funding policies and procedures for these different appropriations (O&M, RDTE, Procurement).  Organizations track obligations and expenditures based on OSD goals.  Direct mission funds may be used to pay for working capital funded efforts (see below).

    Working Capital Funding (WCF) - A revolving fund with which all income is derived from its operations and is available to finance the fund's continuing operations.  WCF is used to fund provisioning in support of PM fielding’s, repairs at depots and contractor sites, services in support of secondary
    items, and similar efforts.  A WCF organization receives Obligation Authority (OA) to carry out its mission; requirements are reimbursed from direct mission funded organizations.  Rates are established annually based on planned workloads and to cover all expected costs (with the exception of direct material costs, which can be billed separately).  Differences between planned versus actual costs create net operating results (NORs) which become incorporated into next year's rate cycle in an attempt to "break even" (NOR = zero).

     General Funding - In addition to the specific appropriations to agencies, departments and institutions, the General Appropriation Act provides direction with regard to several general provisions, i.e., as in reference to States' General Fund accounts or other accounts, such as Health, Education and Transportation.

    An  additional reference source entitled, "Comparing Working-Capital Funding  and Mission Funding for Naval Shipyards", written by the Congressional Budget Office, April 2007, provides specific issues and concerns regarding transitioning from a working capital fund to a mission funded activity. This reference has a good flow chart example of how mission funding and WCF are requested and received.

    For further clarification, please contact your DON Service Comptroller to understand specific business processes pertaining to your service or component. 
     

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