FINANCIAL MANAGEMENT POLICY MANUAL

2. LIMITATIONS.
a. Authorizing Legislation.
As specified in 10 U.S. Code 114, the program to be financed by the
RDT&E,N appropriation must first be approved through authorizing
legislation.
b. Time Limitations.
The budget request submitted to the Congress in each fiscal year under
the RDT&E,N appropriation is for a multiple-year appropriation to
remain available for obligation for 2 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 obligations
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 61)
074401 STRUCTURE AND CONTENT
1. GENERAL.
The Research, Development, Test and Evaluation, Navy appropriation is
divided into seven budget activities. Each budget activity is further
divided into program elements. The program element is the primary data
element in the Future Years Defense Program (FYDP) and is the major
aggregation at which RDT&E efforts are organized and budgeted. The
FYDP is organized by Major Force Program, which is an aggregation of
program elements, with Major Force Program 6 classified as Research and
Development (see DOD 7045.7-H for additional information on FYDP
program structure). In general, the coding symbology for the program
element identifies the Major Force Program in the first two positions and
the budget activity in the next two positions (e.g. 0602 is an RDT&E
budget activity 2 program element). The corresponding research and
development categories are discussed in par. 075401.
2. BUDGET ACTIVITY 1, BASIC RESEARCH.
Basic research is defined as systematic study directed toward greater
knowledge or understanding of the fundamental aspects of phenomena and
of observable facts without specific applications towards processes or
products in mind.
Financial Management Policy
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