FINANCIAL MANAGEMENT POLICY MANUAL

074322 BUDGET ACTIVITY SUBHEADS
The first subdivision under the budget activity is the subhead, which divides
each budget activity into definable and related programs or groups of
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 Shipbuilding and Conversion, Navy
appropriation four-digit subhead numbering system identifies the following
data elements:
First digit - CNO designated manager or command responsible for all or
part of the P-1 line item
Second digit - Budget activity
Third and fourth digits - P-1 line item.
(Change 45)
074323 ADMINISTRATION
1. APPORTIONMENT.
The appropriation Shipbuilding and Conversion, Navy (SCN), is subject to
the annual apportionment process described in par. 073100. Based on the
estimates of the project and acquisition managers, the Naval Sea Systems
Command (NAVSEASYSCOM) 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 allocation made by the Comptroller to CNO, designated as the
responsible office for SCN, is passed to NAVSEASYSCOM and Strategic
Systems Project Office (SSPO), which are designated as administering
offices. Funds are allocated by fiscal year, budget activity, and P-1 line
item. NAVSEASYSCOM provides funds to the project and acquisition
managers by various methods. Internal control of reprogramming at the
command and project/acquisition manager levels is accomplished by
requiring the review and approval of all allocation changes by the
NAVSEASYSCOM comptroller.
3. EXECUTION
a. Ship Cost Adjustment Review.
In order to comply with the requirement for "full funding" of
Financial Management Policy
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