FINANCIAL MANAGEMENT POLICY MANUAL

training equipment; and industrial facilities and tools. The broad scope of
the appropriation and the wide variety of procurement authorized are
reflected in the appropriation language.
2. APPROPRIATION LANGUAGE.
The Department of Defense Appropriations Act provides language for
APN as follows:
"For construction, procurement, production, modification, and
modernization of aircraft, equipment, including ordnance, spare parts,
and accessories thereof; specialized equipment; expansion of public
and private plants, including the land necessary therefore, and such
lands, and interests therein, may be acquired, and construction
prosecuted thereon prior to approval of title; and procurement and
installation of equipment, appliances, and machine tools in public and
private plants; reserve plant and Government and contractor-owned
equipment layaway; $_____, ...; to remain available for obligation
until September 30, 20___. Provided that ..."
3. LIMITATIONS
a. Authorizing Legislation.
As specified in 10 U.S. Code 114, authorizing legislation is required
for Department of Defense appropriations for aircraft.
b. Time Limitations:
(1) Administrative.
Obligation targets are established for each program year starting 1
October of each fiscal year at the budget activity level. This
limitation on the period of fund availability for obligation purposes
is designed to accelerate obligation performance and reduce
excessive carry-over of unobligated funds in accordance with the
expressed desires of the Congress.
(2) Statutory.
The budget request submitted to the Congress for each fiscal year
under the APN appropriation is for a multiple-year appropriation to
remain available for obligation for three fiscal years. Each fiscal
year appropriation enacted is separate and discrete. Following the
period of availability for incurring new obligations, the account
remains available for use for five years for effecting authorized
obligation adjustments and payments. At the end of 5-year period,
the account is closed and any remaining outstanding obligations
are canceled. Thereafter, bill presented for payment must be paid
from the currently available appropriation for the purpose, subject
Financial Management Policy
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