FINANCIAL MANAGEMENT POLICY MANUAL

Whenever possible, the transfer will be accomplished within the normal
budget cycle so that appropriate adjustments of resources may be made
between affected organizations in the normal budget formulation process.
In the limited number of cases where a transfer of functions is required
during a fiscal year, fund adjustments necessitated by the transfer should
be handled, to the extent possible, on a reimbursable basis. Only when the
financing of such transfers through the reimbursement process presents
serious burdens or involves significant amounts should a transfer of funds
be requested.
When a request is being considered for transfer of funding responsibility
between appropriations, either of which is available for the expenditure in
question, the action is limited by 23 Comp. Gen. 827, which found as
follows:
"Where either of two appropriations reasonably may be construed as
available for expenditures not specifically mentioned under any
appropriation, the administrative determination as to which of the two
shall be used will not be questioned by the accounting officers, but,
when such determination and election have been made, the continued
use of the appropriation selected to the exclusion of any other for the
same purpose is required in the absence of changes in the
appropriation acts."
In view of the foregoing ruling, such a change of funding from one
appropriation to another, where a previous election has been made,
requires an accompanying transfer of funds.
2. PURPOSE OF TRANSFERS.
In general, transfers of funding responsibility occur between organizations
to accomplish one of the following actions:
1. to change the basis of support (work, services, material) from
nonreimbursable to reimbursable, or to discontinue the support;
2. to provide for the reassignment of responsibility to provide support
(work, services, material) or to perform specific functions from one
organizational entity to another, regardless of physical proximity.
Functional transfers may involve realignment of resources (funding and
personnel) between appropriations and/or agencies within the Federal
Government or components within DOD. Policy and procedures have
been established within DOD to gain approval of inter-appropriation
transfers of resources associated with proposed functional transfers.
Functional transfers and realignment of resources within an appropriation
may also become necessary. Procedures governing intra-appropriation
transfers have also been established within the Department of the Navy
(DoN).
Financial Management Policy
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