FINANCIAL MANAGEMENT POLICY MANUAL

asis transaction occurred. Under the program-year concept, new
procurement programs should be obligated during the first year of
availability to the extent possible.
b. Analysis of Unliquidated Obligations.
Each funds administering officer will conduct a continuous program of
analyzing and validating unliquidated obligations, continuing those
which are essential, and expeditiously terminating those which are
unessential. At the beginning of the fourth year of each subhead, and
continuing for 5 years until the appropriation account is closed and any
remaining outstanding obligations are canceled, the office
administering the subhead will commence an intensive analysis of the
outstanding balances contained therein. The scope of the intensive,
continuing analysis required to be conducted by the administering
offices will include unliquidated obligations for each individual
contract, project order, or allotment in existence on 30 September of
the year in which availability ends.
(Change 61)
Section II:
SHIPBUILDING AND CONVERSION, NAVY
074320 SCOPE
1. GENERAL.
The appropriation Shipbuilding and Conversion, Navy (SCN) finances the
construction of new ships and conversion of existing ships, including all
hull, mechanical and electrical equipment, electronics, guns, torpedo and
missile launching systems, and communications systems. 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 the
appropriation Shipbuilding and Conversion, Navy (SCN), as follows:
"For expenses necessary for the construction, acquisition, or
conversion of vessels as authorized by law, including armor and
armament thereof, plant equipment, appliances, and machine tools, and
installation thereof in public and private plants; reserve plant and
Government and contractor-owned equipment layaway; procurement
of critical long lead-time components and designs for vessels to be
constructed or converted in the future; and expansion of public and
private plants, including land necessary therefore, and such lands, and
interests therein, may be acquired and construction prosecuted thereon
Financial Management Policy
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