FINANCIAL MANAGEMENT POLICY MANUAL

5. CHANGING BASIS OF SUPPORT
a. Timing.
When an activity has provided support on a common-service basis as
part of its assigned missions and tasks and receiving organizations
have become dependent for the support based on historical
performance, it is not appropriate that the support be changed from
common service to cross service without the opportunity for the
receiving activity to include the costs in its budget. Such changes
should be proposed at the time of the original budget formulation; i.e.,
12 to 15 months prior to the beginning of the budget year when the
change is to become effective. In extraordinary situations, changes
can be made during the apportionment process through an adjustment
of funds between cognizant claimants; however, it is more orderly to
propose such changes in the normal budget formulation cycle.
b. Funding Reductions.
Funding reductions should not be applied solely in the areas where
support services are being provided to others on a nonreimbursable
basis. Such support services must participate equally in the overall
fund reductions imposed on a performing organization. As stated in
subpar. 1, support services on a nonreimbursable basis are a part of the
mission and tasks of the performing activity.
c. Excessive Billings.
The nonproductive aspects of excessive billings upon total Department
of the Navy resources should be considered by major and subordinate
claimants before planning any changes from a nonreimbursable to a
reimbursable basis. Aside from not creating any assets for overall use,
the excessive billing process becomes an expense in terms of
manpower and dollars to both the billing and receiving activities, as
well as to any accounting activity that may handle the transactions.
(Change 48)
075004 TRANSFER OF FUNCTIONS
1. GENERAL.
Under the provisions of Title 10, United States Code, Section 125, the
Secretary of Defense has the authority to transfer, reassign, consolidate or
abolish any function, power or duty vested in the Department of Defense
(DOD). Whenever a transfer of function, power or duty is accomplished
under this authority, balances of appropriations and civilian employees
that the Secretary of Defense determines are available and needed to
finance and perform that function, power or duty may be transferred, with
the approval of the President as delegated to the Office of Management
and Budget, in accordance with Title 10, United States Code, Section 126.
Financial Management Policy
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