The advantages and disadvantages of converting the Naval Postgraduate School to a Navy Working Capital Fund Activity
Didjurgis, Tim J.
Fullerton, Kyle J.
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The Naval Postgraduate School (NPS) is the Navy’s principal institution for providing advanced education to the Navy and Marine Corps. Funded in part by direct funding through annual appropriations, NPS also receives a substantial amount of reimbursable funding through sponsored research, education, professional development, and other sponsored activities. In recent years, the amount of reimbursable funding NPS receives on an annual basis has grown considerably while direct funding has remained relatively constant. Consequently, the Naval Inspector General conducted inspections of NPS in 2009 and 2012 to address this as well as other issues. As a result, there has been ongoing discussion regarding NPS’s mission and the role reimbursable funded work should play at the school. Like other Navy organizations, NPS is also working toward achieving auditable financial statements in compliance with the Department of Defense Comptroller’s Financial Improvement and Audit Readiness Plan by 30 September 2017. The purpose of this MBA professional report is to evaluate the feasibility and appropriateness of converting NPS from a direct and reimbursable funded organization to a Navy Working Capital Fund activity to uphold the school’s mission and support the Navy in achieving financial auditability.
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