FINANCIAL MANAGEMENT POLICY MANUAL

programs for ease of administration. Subheads are assigned at the P-1 lineitem
level or lower if more than one manager or command is involved in the
execution of a P-1 line item. The Aircraft Procurement, Navy appropriation
four-digit subhead numbering system identifies the following data elements:
First digit - Designated manager or command responsible for all or a part
of the P-1 line item
Second digit - Budget activity
Third and fourth digits - P-1 line item.
(Change 45)
074303 ADMINISTRATION
1. APPORTIONMENT.
The appropriation, Aircraft Procurement, Navy (APN), is subject to the
annual apportionment process described in par. 073100. Based on the
estimates of the project/program managers, the Naval Air Systems
Command (NAVAIRSYSCOM) prepares the annual apportionment
request which is submitted for review to the Chief of Naval Operations
(CNO), the Comptroller, and the Office of the Under Secretary of Defense
(Comptroller) (OUSD (C)) for transmittal to the Office of Management
and Budget (OMB). Based on OUSD (C)/OMB analysis and prospective
congressional appropriations action, funds are either released for
execution or placed in a deferred status.
2. ALLOCATION.
The Comptroller allocates funds to the CNO, designated as the responsible
office for APN. The allocation is passed in its entirety from CNO to the
Naval Air Systems Command (NAVAIRSYSCOM), which is designated
as the principal administering office. Allocations are subdivided on a
procurement line-item basis (Exhibit P-1). Within NAVAIRSYSCOM,
funds are provided to project/program managers. Internal control of
reprogramming at the command and project/program manager levels is
accomplished by requiring the review and approval of allocation changes
by the NAVAIRSYSCOM Comptroller.
3. EXECUTION
a. Program-Year Concept.
The APN appropriation is controlled at command level on a programyear
and weapons system line-item basis. A program year consists of
all programs budgeted and approved for funding in a specific budget
year. Each procurement action is charged to the program year under
which it was budgeted. Subsequently, within scope of program, cost
changes are funded from the program-year account under which the
Financial Management Policy
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