FINANCIAL MANAGEMENT POLICY MANUAL

5. OPERATION AND MAINTENANCE.
This category provides funding for civilian severance pay; civilian
Permanent Change of Station (PCS); property/facility layaway;
transportation of things; real property maintenance; program management;
real estate disposal; caretaker costs; BOS extraordinary overhead
fluctuations; other one-time implementation costs and land sales costs.
For realigning or closing activities, this category also finances operation
and maintenance type costs normally funded by the Navy Working Capital
Fund (NWCF), and Nonappropriated Funds (NAF).
6. MILITARY PERSONNEL.
This category provides only for Permanent Change of Station moves that
are directly related to closure or realignment actions.
7. OTHER.
This category finances investment items normally funded from
procurement or other funds, including NWCF capital purchases. This
category includes procurement costs and operation and maintenance type
costs at activities normally funded with Research, Development, Test and
Evaluation, Navy (RDT&E,N).
8. HOMEOWNER'S ASSISTANCE PROGRAM (HAP).
This category provides some monetary relief for eligible federal personnel,
both military and civilian, faced with losses on the sale of their primary
residence as a result of the closure of an installation, in whole or in part.
The U.S. Army Corps of Engineers is the program administrator and
determines whether a housing market is depressed, creating the potential
for financial loss exists due to the sale of a home given market trends.
9. LAND SALES REVENUE.
This category identifies preliminary estimates of revenue to be collected
based on assumptions that land will be sold at fair market value unless a
valid McKinney Act request, reversion clause, or other initiative preempts
sale of property. The proceeds resulting from the transfer or disposal of
property or facilities due to the BRAC process shall be deposited as a
reimbursement into the BRAC account, which is available to the DON.
(Change 64)
074562 BUDGET FORMULATION
1. GENERAL.
Base closure costs will be budgeted in one of the categories listed in
paragraph 074561 based on the purpose for which the funds are to be used
and the existing thresholds governing other Department of the Navy
Financial Management Policy
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