FSEA’s can acquire working capital by using an existing surplus, adding surcharges to external users, or transferring funds from non-federal sources. Units cannot acquire working capital by increasing rates to internal users.
The FSEA fiscal management must calculate the amount of working capital to be retained by unit. Example: To calculate the maximum working capital the FSEA is allowed to retain, take an average of two months of operating expenditures over the past fiscal year.
| Total Expenses for the fiscal year ending 06/30/yy | $150,000.00 |
| Allowable Expenses Calculation | ($150,000/12 months*2 months) |
| Total maximum allowable Working Capital | $25,000 |
OMB Uniform Guidance, Subpart E, §200.420 through §200.475
Auxiliary Accounting: (352) 294-7236