FINANCIAL MANAGEMENT POLICY MANUAL

abatement, and any other legislated environmental hazard
remediation may be excluded, provided that such remediation
requirements could not be reasonably anticipated at the time of
budget submission. This exclusion applies to projects authorized
in the budget year as well as projects authorized in prior years for
which construction contracts have not been completed.")
NAVFAC may approve obligation of funds appropriated for
improvements for projects not exceeding the amount per unit set
forth in the annual Military Construction Appropriations Act,
currently $50,000. The Secretary of the Navy may waive the
$50,000 threshold if he determines, given the useful life of the
structure to be improved, the improvements will be cost-effective
and 21 days have elapsed from the date that the House and Senate
Appropriations and Authorization Committees receive notice of
the proposed waiver, together with an economic analysis
demonstrating the improvements cost-effectiveness. Approval
authority for improvements and restorations are contained in the
current issuance of SECNAVINST 11101.72.
b. Operations, Utilities, Maintenance, and Leasing Accounts.
Transfer of any amount in excess of 10 percent among or between the
operations, utilities, maintenance and leasing accounts shall be subject
to the prior approval of both the House and Senate Military
Construction Appropriations Subcommittees. Lower limits to this
threshold shall be established by the CNO/CMC and major claimants
in issuing operating budgets to the field. Reimbursements may be
utilized to defray operation or maintenance expenses within the
obligational authority provided, but are limited to the amount of
reimbursements earned and collected.
(1) Operations and Maintenance.
The Committees must be notified within 30 days upon transfer of
any amount in excess of 10 percent among the budget activities of
the operations account. End-of-year obligation rates for the family
housing operations and maintenance accounts are limited to no
more than 20 percent in the last 2 months of the fiscal year. Total
maintenance and repair obligations on each general or flag officer
quarters are limited to $25,000 per year unless specifically
reported to Congress. Maintenance and repair expenditures
exceeding $15,000 per unit must be approved by Congress in the
budget submission.
(2) Utilities.
A separate account is established for utilities for the express
purpose of paying utility bills. This is a separate account for
Financial Management Policy
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