FINANCIAL MANAGEMENT POLICY MANUAL

submission of the appropriation request for the Military Construction
Reserve 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 MCNR are
prepared by the Commander, Naval Facilities Engineering Command
(NAVFAC).
2. ALLOCATION.
a. General.
The Comptroller allocates the obligational authority for the MCNR
appropriation to CNO who then suballocates the authority to
NAVFAC. The NAVFAC Comptroller allocates and assigns
sufficient funds to each Engineering Field Division (EFD) to finance
its construction program requirements.
b. Reprogramming.
All MCNR construction project and minor construction project
reprogramming requests 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 DON must submit the reprogramming request
for approval to each Subcommittee 30 days prior to the date on which
action is required. A formal reprogramming request must be prepared
for each request submitted to Congress. Details on these
reprogramming changes are provided in par. 074503 and are
applicable to the MCNR appropriation.
3. EXECUTION.
a. Program-Year Concept.
The MCNR appropriation is controlled on a program-year and
construction project basis. A program-year consists of all programs
budgeted and approved for funding in a specific budget year. Within
scope of program, cost changes are funded from the program year
account under which the basic transaction occurred.
b. Analysis of Unliquidated Obligations.
Each funds administering office will conduct a continuous program of
analyzing and validating unliquidated obligations, continuing those
which are essential, and expeditiously terminating those which are not
essential. Additional information is provided in the current issuance of
NAVCOMPTINST 7070.37B.
(Change 64)
Financial Management Policy
2-89