FINANCIAL MANAGEMENT POLICY MANUAL

functions for ashore Fleet commanders. Prices for items purchased cover
the acquisition cost plus the cost of supply operations.
3. DEPOT MAINTENANCE.
The Depot Maintenance business area consists of maintenance, repair, and
manufacturing activities. They include three shipyards, three aviation
depots, and two Marine Corps depot maintenance activities.
4. RESEARCH AND DEVELOPMENT.
The Research and Development business area consists of multiple centers
and laboratories which perform a wide range of research, development,
engineering, test, and evaluation support functions. These activities
include: the Naval Research Laboratory; the Naval Air Warfare Center,
the Naval Surface Warfare Center, the Naval Undersea Warfare Center
and the Space and Naval Warfare Systems Centers.
5. BASE SUPPORT.
The Base Support business area is comprised of the Public Works Centers
(PWCs) and the Naval Facilities Engineering Center (NFEC). The PWCs
provide facility maintenance, utility services, transportation support,
engineering services, and shore facilities planning support required by
operating forces and other activities. NFEC provides the Navy with
specialized facilities engineering and technology support.
6. INFORMATION SERVICES.
The Information Services business area consists of the Fleet Material
Support Office and the Naval Reserve Information System Office. These
activities provide automated information services and design support.
7. TRANSPORTATION.
The Transportation business area includes the Military Sealift Command
(MSC). MSC operates service-unique Naval Fleet Auxiliary Force
(NFAF) vessels, primarily civilian manned, which provide material
support to the Fleet, Special Mission Ships (SMS), which provide unique
seagoing platforms and Afloat Prepositioning Forces (APF) ships, which
deploy advance material for strategic lifts.
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074602 BUDGET FORMULATION
1. OPERATING BUDGET.
The operating budget reflects the total annual operating costs/expenses
required for a NWCF activity to accomplish its assigned workload,
including depreciation or amortization costs for all capital assets
benefiting the business area. The operating budget will reflect all
Financial Management Policy
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