FINANCIAL MANAGEMENT POLICY MANUAL

available for obligation commencing with the SCN 1980/1984
appropriation.
(Change 64)
074321 STRUCTURE AND CONTENT
1. GENERAL.
The Shipbuilding and Conversion, Navy appropriation is divided into five
budget activities each of which relates to a general class of ships. 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, FLEET BALLISTIC MISSILE SHIPS.
This activity provides for ballistic missile submarines and ships required
for their direct support, such as tenders and cargo ships.
3. BUDGET ACTIVITY 2, OTHER WARSHIPS.
This activity provides for aircraft carriers, cruisers, frigates, destroyers,
attack submarines, and other warships as assigned by the Chief of Naval
Operations (CNO).
4. BUDGET ACTIVITY 3, AMPHIBIOUS SHIPS.
This activity provides for amphibious assault ships, dock landing ships,
tank landing ships, amphibious command ships, amphibious cargo ships,
amphibious transport dock ships, and other ships as may be assigned by
CNO.
5. BUDGET ACTIVITY 4, MINE WARFARE AND PATROL SHIPS.
The activity provides for minesweepers, gunboats, destroyer escorts,
patrol craft, and other ships as may be designated by CNO.
6. BUDGET ACTIVITY 5, AUXILIARIES, CRAFT, AND PRIOR YEAR
PROGRAM COSTS.
This activity provides for ammunition ships, store ships, surveying ships,
replenishment oilers, tugs, tenders, landing craft, barges, and other ships
and craft as may be assigned by CNO. Funds also are included for
outfitting, post delivery, and prior year program cost growth and
escalation for all ships regardless of the budget activity in which the basic
ship construction is budgeted. First destination transportation is also
financed in this activity. Separate subheads are established in this budget
activity for each procurement ((P-1) exhibit) line item and separate budget
projects are also established under these subheads.
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Financial Management Policy
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