FINANCIAL MANAGEMENT POLICY MANUAL

automatic reimbursement authority at any performing level is not
required for the appropriations cited in subpar. 2b, since automatic
apportionment and allocation has already been authorized by OMB.
Additionally, commercial-industrial activities in the Navy Working
Capital Fund, General Trust Funds, and Trust Revolving Funds are not
subject to apportionment. The reimbursable program levels for these
programs will be the amounts reflected in the President's budget.
c. Other Reimbursements.
Reimbursable authority for appropriations subject to specific
apportionment and allocation of reimbursable budget program, i.e.,
appropriations other than those cited in subpar. 2b, and
reimbursements resulting from the sale of material from service
inventories (stock issues) or from the provision of work or services
that are not supported by specific orders, are categorized as "other
reimbursements." Provision for sufficient apportionment of
reimbursement authority should be obtained prior to acceptance of
orders to be performed under appropriations for which automatic
apportionment is not applicable.
(Change 67)
074802 REIMBURSABLE BUDGET PROGRAM
ADMINISTRATION
1. POLICY
a. General.
Consistent with guidance from the Under Secretary of Defense
(Comptroller) (USD (C)), the policy of the Department of the Navy
(DON) is that mission costs are funded directly through command
lines and are direct budget program costs. Funding across command
lines is limited to direct citation-of-funds orders, reimbursable orders
for material or service, and technical operating budgets. The policy
herein applies to material or service reimbursable orders. Estimates of
reimbursements shall be disclosed fully in the budget data for each
appropriation in which a reimbursable budget program is authorized.
Pricing of anticipated reimbursements should reflect the best estimate
of full cost consistent with OUSD (C) budgeting guidance for budget
program estimates. Additionally, whenever feasible, the rates for
personal services incurred in reimbursable orders should be revised at
the time of a pay increase to reflect properly the increased cost.
b. Control of Reimbursements.
To the greatest extent feasible, reimbursements shall be budgeted,
controlled, and accounted for under appropriated funds, or
subdivisions thereof, at the level of the respective operating
Financial Management Policy
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