FINANCIAL MANAGEMENT POLICY MANUAL

After Mission Ceases
BOS BRAC or O&M/R&D BRAC or O&M/R&D
Specific base closure
costs BRAC or O&M/R&D BRAC or O&M/R&D
After Operational Closure
Caretaker BRAC or O&M/R&D BRAC or O&M
* O&M funding equates to O&MN, O&MNR, O&MMC, O&MMCR, and
RDT&EN, as applicable. The source of operations funding is determined by
the appropriation that normally funds BOS costs.
(Change 64)
074563 FINANCIAL POLICY
1. DIRECT FUNDED ACTIVITIES.
After a base ceases performance of its assigned mission (mission cease
date), direct funded activities will continue to incur Base Operating
Support (BOS) costs and the Naval Facilities Engineering Command
(NAVFAC) will incur caretaker costs caused solely by the requirement to
remain open to complete the closure process. Since these BOS and
caretaker costs are solely attributable to the base closure process, they are
considered costs of base closure and are funded from funds available for
base closure.
2. NAVY WORKING CAPITAL FUND (NWCF).
The cost of closing or realigning NWCF activities must be funded with
appropriations available for base closure. Closure and realignment efforts
are not among the purposes authorized to be financed through the NWCF,
so neither NWCF funds nor general cost recovery procedures may be used
to finance specific closure costs. Closure costs for NWCF activities may
not be accumulated on locally established orders for subsequent
reimbursement with base closure funds. Accordingly, closing or
realigning NWCF activities must cite non-program job orders supported
by funds available at the activity for base closure efforts in advance of
obligation.
a. Allowable costs.
Costs to be chargeable as base closure or realignment for NWCF
activities generally equate to those definitions established for direct,
mission-funded activities. In contrast to direct funded activities,
however, employees of the closing or realigning NWCF activity may,
when it is to the Government's benefit, perform base closure functions
Financial Management Policy
2-102