Obligations by apportioned Working Capital Funds (WCFs) are limited to what amount?

• A. The total annual operating budget
• B. The apportioned amount
• C. The actual cash on hand
• D. The largest single appropriation in the year

Answer: (B)

Working Capital Funds are revolving funds that finance operations through charges to customers, and the amount they may obligate in a fiscal year is limited by the apportionment for that year. This apportionment sets the total level of obligations the fund can incur, so once that limit is reached, no new obligations can be made unless additional apportionment or funding is provided. This keeps spending aligned with congressional authorization and the fund’s expected inflows.

Why this fits best: the apportionment acts as the annual cap on obligations, not the entire operating budget, not the cash currently on hand, and not a single large appropriation. The fund can use incoming revenues to support ongoing activities, but those revenues don’t increase the obligation limit beyond the apportioned amount for the year.