FINANCIAL MANAGEMENT POLICY MANUAL

to limitations stated in the current issuance of NAVCOMPTINST
7040.37.
(Change 61)
074301 STRUCTURE AND CONTENT
1. GENERAL.
The Aircraft Procurement, Navy appropriation is divided into seven
budget activities. Each budget activity is further divided into procurement
line items (Exhibit P-1 line item) for which funds have been budgeted.
2. BUDGET ACTIVITY 1, COMBAT AIRCRAFT.
Budget Activity 1 provides for the procurement of all aircraft used in
combat missions. Combat aircraft, including both fixed-wing and rotarywing
configurations, are generally grouped into the categories of attack,
fighter, assault, and antisubmarine warfare aircraft. In addition to the
foregoing categories, aircraft employed in specialized missions (such as
electronic warfare, reconnaissance, and observation) which directly
support combat operations also are procured under this activity.
3. BUDGET ACTIVITY 2, AIRLIFT AIRCRAFT.
Budget Activity 2 provides for the procurement of aircraft needed for
personnel and cargo airlift.
4. BUDGET ACTIVITY 3, TRAINER AIRCRAFT.
Budget Activity 3 provides for aircraft specially designed for different
types of air crew training. Aircraft procured under Budget Activity 3 are
used to train students in basic and advanced flying techniques, navigation,
instrument flying, and numerous other skills they must acquire before
making the transition to high performance fleet aircraft.
5. BUDGET ACTIVITY 4, OTHER AIRCRAFT.
Special purpose aircraft other than those associated with combat, airlift,
and training missions are procured under Budget Activity 4.
6. BUDGET ACTIVITY 5, MODIFICATION OF AIRCRAFT.
Budget Activity 5 funds the procurement of modification kits for
incorporation of improvement in in-service aircraft to correct deficiencies
and improve operational capabilities.
7. BUDGET ACTIVITY 6, AIRCRAFT SPARES AND REPAIR PARTS.
Budget Activity 6 provides for the procurement of spare equipment and
repair parts to support aircraft procurement and operating programs.
Financial Management Policy
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