FINANCIAL MANAGEMENT POLICY MANUAL

Chapter 1
BUDGET EXECUTION
073000 DEFINITION
PART A: GENERAL
Budget execution is that phase of the budget cycle which encompasses all the
actions required to accomplish effectively, efficiently, and economically the
programs for which funds were requested and approved by competent
authority. The budget execution phase overlaps the formulation and review
phases and continues throughout the period of availability of the
appropriations for obligation or expenditure. Effective budget execution
requires procedures for control and evaluation which will ensure compliance
with regulations and limitations established by the Congress, the General
Accounting Office, the Treasury Department, the Office of Management and
Budget (OMB) and the Secretary of Defense, as well as by all echelons of
responsibility and command within the Department of the Navy.
073001 RESPONSIBILITIES
1. OFFICE OF MANAGEMENT AND BUDGET.
The Director of the Office of Management and Budget is required by 31
U.S. Code 1512 to apportion appropriations or funds so "as to prevent
obligation or expenditure thereof in a manner which would indicate a
necessity for deficiency or supplemental appropriations." The
apportionment may be in terms of time periods or "by activities, functions,
projects, or objects," as deemed appropriate.
2. SECRETARY OF DEFENSE.
Title IV of the National Security Act amendments of 1949 (10 U.S. Code
2204) requires that the Secretary of Defense control the rates of
obligations to prevent overdrafts and deficiencies. Based on the
provisions of 31 U.S. Code 1512, the current issuance of DODDIR
7200.1, "Administrative Control of Appropriations" (see Volume 2,
Appendix A), provides regulations for the restriction of obligations and
expenditures. Among other things, the directive requires that
apportionment or reapportionment requests be submitted through the
Office of the Comptroller, Department of Defense for review and decision.
3. DEPARTMENT OF THE NAVY.
The same DODDIR 7200.1 on the administrative control of appropriations
charges the Secretaries of the Military Departments, or other designated
officials, with responsibility for preparation and submission of
Financial Management Policy
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