FINANCIAL MANAGEMENT POLICY MANUAL

First two digits - Administering office
Third digit - Fiscal year program
Fourth digit - Budget activity
(Change 61)
074503 ADMINISTRATION
1. BUDGET AND APPORTIONMENT.
Project proposals are developed by Navy and Marine Corps field activities
and submitted via command chain to claimants, who, in turn, submit their
command-approved project requests to the Chief of Naval Operations
(CNO) for consideration in development of the annual Military
Construction Program. Acting as staff on behalf of CNO, the
Commander, Naval Facilities Engineering Command (NAVFAC)
coordinates the preparation and submission of the appropriation requests
for the Military Construction Program to the Office of Budget (FMB) for
Departmental budget review. Requests to the Office of the Under
Secretary of Defense (Comptroller) (OUSD (C)) for apportionment action
for MCON are also prepared by NAVFAC. The request is for the
apportionment of all funds.
2. ALLOCATION.
a. General.
The Comptroller allocates the obligational authority for the MCON
appropriation to CNO who then suballocates the authority to the
Commander, Naval Facilities Engineering Command (NAVFAC).
The NAVFAC Comptroller allocates sufficient funds to each
Engineering Field Division (EFD) to finance its construction program
requirements. The amount allocated to each EFD is in total for the
division and is subdivided for control purposes at budget activity or
appropriation subhead levels.
b. Reprogramming.
Reprogramming of military construction projects must be submitted to
the House and Senate Military Construction Appropriations
Subcommittees for approval, if the revised cost estimate exceeds the
old by 25 percent or $2.0 million, whichever is less. The Department
must submit the reprogramming request for approval to each
subcommittee 30 days prior to the date on which action is required. No
additional funds may be added to a project for which a reprogramming
has been approved by the subcommittees without again requesting
prior approval of each subcommittee. Approval will be obtained by
formal reprogramming requests, which require processing through
CNO/FMB/OUSD (C)/OMB to the Congress. This requirement
Financial Management Policy
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