Comparison of the Navy Working Capital Fund and mission funding as applied to Navy shipyards
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Author
Cain, Andrew M.
Date
2006-06Advisor
McCaffery, Jerry L.
Mutty, John E.
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The dramatic political and economic events, both globally and within the United States, during the early 1990s led to significant changes to the Navy shipyard organizational structure. As part of the Navy maintenance regionalization and consolidation program, the financial management system used to manage these commands has been changed. Specifically, the Navy has shifted two of its four shipyards, with authorization to shift the other two in FY07, from the Navy Working Capital Fund to mission funding through direct congressional appropriations. This funding shift has raised questions about the advantages and disadvantages each financial system provides shipyards, the operating differences that occur due to the funding change, and the future financial consequences of funding Navy shipyards using direct appropriations. This thesis identifies the advantages and disadvantages of the Navy Working Capital Fund and the mission funding model in the context of a Navy shipyard environment and determines whether the change in financial structure provides an overall benefit that should be pursued for all shipyards.
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