How DeCA is Funded May 2005

DeCA Funding How DeCA is Funded Commissary Operations Resale Stocks Cash – DeCA Working Capital Fund Surcharge Other Items

How DeCA Is Funded DeCA Working Capital Fund Resale Stocks Buys Inventory Replenished When The Inventory Is Sold No Appropriated Funds Required Commissary Operations Pays For Operating Costs Pays For Capital Investment Revenue: Appropriated Funds & Other Reimbursements Surcharge Collections Trust Revolving Fund Pays For Store Construction & Equipment, Maintenance & Repair, & Store-level IT Funds Come From The 5% Added At The Cash Register

DeCA WCF - Resale Stocks Supply Activity Group Revenue = Sales Minus Discounts Expense = Cost of Goods Sold Inventory = @ 16 Turns/Year No Carryover of Unobligated Balance Contract Authority

DeCA WCF - Commissary Ops Non-Supply Activity Group Transfer From Services O&M AOB – Cost Authority Depreciation FTE Mix FT/PT Foreign National, Direct/Indirect Foreign Currency Fluctuations Unobligated Balance Issue

DeCA WCF - Commissary Operations Sources of Revenue – FY 2005 ($M) Miscellaneous: $2.5M Accessorial Charges – Europe $.5M AETC Reimbursement $1.6M American Express/Other $.4M Total: $1,203.7

DeCA WCF - Commissary Ops Cost of Operations – FY 2005 ($M) Total: $1,169.4

FY 1999-2007 Civilian & Military FTEs Long-Term Trend FY 1999-2007 Civilian & Military FTEs Down 15% Between FY99 & FY 07

CASH – DeCA WCF Combined DeCA Comsy Ops & Resale Stocks 7 – 10 Days Resale – 1 Day of Cash Comsy Ops - APF

DeCA Commissary Surcharge Trust Fund Apportionment Obligations Contract Authority Revenue Cash BRAC Reserve Transfer Change in Statute in 2002 Facilities Information Technology Store Equipment Main & Repair Facility & Equipment

Surcharge Collections Trust Fund Sources of Revenue – FY 2005 ($M) Miscellaneous: $2.5M Accessorial Charges – Europe $.5M AETC Reimbursement $1.6M American Express/Other $.4M Total: $272.4

Surcharge Collections Trust Fund Uses of Funding – FY 2005 ($M) Total: $272.4

BRAC Reserve Receipt Account The Defense BRAC Acts of 1988 (PL100-526) and 1990 (PL101-510) established Treasury BRAC Reserve Receipt Account 97*5195 for the proceeds on the sale of commissaries and NAF facilities. Separate appropriation was needed to use the funds – never used. Section 655 of the NDAA for Fiscal Year 2004 authorizes the Secretary of Defense to use amounts in the reserve account without appropriation by Congress. As of Jan 04, the BRAC Reserve Receipt Account balance is $52.5M $14.6M can be identified for commissaries. March 17, 2004 USD Comptroller memo directed distribution of FY04 $31M, FY05 $24M and FY06 $15M, “until expended”. P&R working transfer to Surcharge account.

National Defense Act of FY 2001 Public Law 106-398, 114 Stat. 1654A-59 Sec 2484 of Title 10 was amended: Commissary Stores: Use of Appropriated Funds to Cover Operating Expenses Sec. 333. Use of Surcharges for Construction and Improvement of Commissary Stores Effective Date: October 1, 2001