FINANCIAL MANAGEMENT POLICY MANUAL

States Code, and the land necessary therefore, for the foregoing
purposes, and such lands and interests therein, may be acquired, and
construction prosecuted thereon prior to approval of title; and
procurement and installation of equipment, appliances, and machine
tools in public and private plants; reserve plant and Government and
contractor-owned equipment layaway, and other expenses necessary
for the foregoing purposes, $_____; to remain available for obligation
until September 30, 20___."
3. LIMITATIONS
a. Authorizing Legislation.
As specified in 10 U.S. Code 114, authorizing legislation is required
for Department of Defense appropriations for ammunition.
b. Time Limitations.
(1) Administrative.
Obligation targets are established for each program year starting
with 1 October of each fiscal year, at the budget activity level.
This limitation on the period of fund availability for obligation
purposes is designed to accelerate obligation performance and
reduce excessive carry-over of unobligated funds in accordance
with the expressed desires of Congress.
(2) Statutory.
The budget request submitted to the Congress for each fiscal year
under the PAN&MC appropriation is for a multiple-year
appropriation to remain available for obligation for 3 fiscal years.
Each fiscal year appropriation enacted is separate and discrete.
Following the period of availability for incurring new obligations,
the account remains available for use for 5 years for effecting
authorized obligation adjustments and payments. At the end of the
5-year period, the account is closed and any remaining outstanding
obligations are canceled. Thereafter, bills presented for payment
must be paid from the currently available appropriations for the
purpose, subject to limitations stated in the current issuance of
NAVCOMPTINST 7040.37.
(Change 65)
074351 STRUCTURE AND CONTENT
1. GENERAL.
The PAN&MC appropriation is divided into two budget activities. Each
budget activity is further divided into procurement line items (Exhibit P-1
line item) for which funds have been budgeted.
Financial Management Policy
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