Financial Management
Analysis of Operating Cash Balance of Navy Stock Fund Gao ID: AFMD-90-59 May 2, 1990Pursuant to a congressional request, GAO reviewed Navy stock fund pricing and refund practices.
GAO found that the: (1) Navy stock fund has maintained a large operating cash balance for the past 5 years; (2) average change in the Navy's cash balances from month to month was only 4.4 days; (3) Navy stock fund refunded $3.4 billion to selected customers, which helped to reduce the excessive amounts of operating cash in the stock fund; and (4) Navy lowered its average month-end stock fund operating cash balance from 48 days to 25 days between fiscal years 1985 and 1989, but the 25-day operating balance was still substantially greater than needed.