Which of the following is NOT included in the Revolving Fund?

• A. Overhead Accounts
• B. Operating Reserve
• C. Plant Replacement and Improvement Program (PRIP)
• D. Facility Accounts

Answer: (B)

The question tests what funds are kept inside a Revolving Fund. A Revolving Fund is built to finance ongoing operations and to recycle money through accounts that continuously support recurring needs. Overhead accounts fit here because they allocate indirect costs across programs, helping keep program budgets stable. The Plant Replacement and Improvement Program is included because it plans and funds capital improvements in a way that can be renewed or replaced over time, keeping assets functional within the revolving framework. Facility accounts are also part of this structure since they cover day-to-day facility-related spending and maintenance within the revolving cycle.

The Operating Reserve is a separate safety cushion intended to cover unexpected or irregular operating costs. It isn’t part of the revolving mechanism, so it sits outside the Revolving Fund rather than cycling back into it. That’s why it’s the item that isn’t included.