FINANCIAL MANAGEMENT POLICY MANUAL

is designed to accelerate obligation performance and reduce
excessive carry-over of unobligated funds in accordance with the
expressed desires of Congress.
(2) Congressional.
The MCON appropriation is a multiple-year appropriation to
remain available for obligation for 5 fiscal years. Each fiscal year
appropriation enacted is separate, discrete and available for 60
months for obligation purposes. Effective with the Military
Construction Appropriations Act of 1989, authority to split-fund
construction projects among different years’ appropriations was
reinstated (following a three year prohibition), provided that the
funds used are available for military construction projects and the
total obligations for a project are consistent with the total amount
appropriated for that project. This authority is to be utilized
judiciously in order to preserve the flexibility it provides.
(Change 61)
074501 STRUCTURE AND CONTENT
1. GENERAL.
The Military Construction, Navy appropriation is divided into four budget
activities. The Major Construction budget activity is further divided into
projects for which funds have been budgeted.
2. BUDGET ACTIVITY 1, MAJOR CONSTRUCTION.
This budget activity provides funds for the acquisition of land and for
construction of individual military projects, as authorized. The
construction project description is for a single undertaking that includes
the cost of all construction work to produce a complete and usable facility.
Similarly, the description of a construction project for an existing facility
includes all costs necessary to produce a complete and usable
improvement, conversion, and rehabilitation.
3. BUDGET ACTIVITY 2, MINOR CONSTRUCTION.
a. General.
This budget activity provides funds for projects with a cost not to
exceed $1.5 million and not otherwise provided by law. A minor
construction project is a single undertaking at a military installation,
which includes all construction work, land acquisition and installation
of equipment necessary to produce a complete and usable facility or a
complete and usable improvement to an existing facility. If a minor
construction project funded in the military construction appropriation
is to correct a deficiency that is life, health or safety threatening, the
project may have an approved cost of not more than $3 million.
Financial Management Policy
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