FINANCIAL MANAGEMENT POLICY MANUAL

2. ANTICIPATED REIMBURSEMENTS
a. General.
Anticipated reimbursements are the amounts of reimbursable orders
expected to be accepted in the first year of an appropriation. They
constitute a source of authority and available resources to cover
obligations to be incurred in the performance of work or services, in
the procurement of material for others, or in the replacement of
material sold from stock. The anticipated reimbursements during a
fiscal year form the basis for the reimbursable budget program within
an appropriation.
b. Apportionment and Allocation Requirements.
The reimbursable budget program of any appropriation requires
specific prior apportionment and allocation except for those
reimbursable transactions for which the Office of Management and
Budget (OMB) has authorized automatic apportionment. Under this
exception, anticipated reimbursements are apportioned automatically
in the amount of work or service orders accepted by activities which
are financed from certain appropriations; viz., Military Personnel,
Navy; Military Personnel, Marine Corps; Operation and Maintenance,
Navy; Operation and Maintenance, Marine Corps; Operation and
Maintenance, Navy Reserve; Operation and Maintenance, Marine
Corps Reserve; Research, Development, Test and Evaluation, Navy;
and Military Construction, Navy. To the extent that reimbursements
are apportioned automatically, there is concurrent automatic allocation
and increase to activity operating budgets and/or engineering field
division suballocations, as applicable. The funding documentation in
each higher echelon in the fund flow chain is increased to reflect
automatic allocation at the field level based on monthly reporting.
3. AUTOMATIC OR OTHER BASIS OF REIMBURSEMENT
a. General.
Within the Department of the Navy, there are two types of
reimbursements, automatic reimbursements and other reimbursements.
They are primarily distinguished by the timing of the obligation
required for filling the customer request and/or by the nature of the
ordering document.
b. Automatic Reimbursements.
Automatic reimbursement authority results from acceptance of orders
obligated by the requesting organization prior to the filling of the order
by the accepting organization. Costs incurred by the accepting and
performing activities are charged initially to the operating budget or
allotment and subsequently billed to and collected from the fund
citation on the order. Specific apportionment and allocation of
Financial Management Policy
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