FINANCIAL MANAGEMENT POLICY MANUAL

under the provisions of 41 U.S. Code 11:
1. the cost of an airborne alert,
2. the costs necessary for an increase in the number of military
personnel on active duty beyond the number for which funds have
been provided in the applicable appropriations act.
When SECDEF exercises the authority to incur the costs in item 1 or
2, he must immediately advise Congress and report monthly thereafter
on the estimated obligations. OSD limits the use of Sec. 3732 R.S.
authority to emergency circumstances requiring immediate action that
cannot be delayed due to the nonavailability of sufficient funds. The
responsible officer or official who exercises this authority to incur
overobligations, over commitment, or overexpenditure of funds is
required to report immediately to the next higher echelon. These
reports are handled expeditiously through the chain of command to
permit prompt submission to OSD. Subsequently, if such
overobligations cannot be covered through reprogramming of funds, it
is necessary to request an appropriation from Congress for the required
liquidation.
b. Exemption From Apportionment.
Under authority of 10 U.S. Code 2201(a) the President has authority to
exempt from apportionment appropriations, available for military
functions under DoD, from the provisions of 31 U.S. Code 1512, if the
President determines this is necessary in the interest of national
defense.
c. Secretary of Defense Controls.
Notwithstanding the authority contained in 41 U.S. Code 11, OSD
requires that prior approval be obtained from SECDEF in situations
where recourse to the exemption provisions is contemplated. In the
situations cited in subpar. b, SECDEF prior approval is required; in the
emergency circumstances cited in subpar. a, every reasonable
communications effort must be made to secure prior SECDEF
approval before unilateral action may be taken by a subordinate
command to exercise the authority of 41 U.S. Code 11.
5. BUDGETARY TRANSFER AUTHORITY.
The Department of Defense Appropriations Act annually contains
language which grants to the Secretary of Defense authority, with the
approval of the Office of Management and Budget, to transfer funds
between appropriations or funds in the current fiscal year upon
determination that such action is necessary and in the national interest.
The transfer authority normally is stated as a dollar limitation not to
exceed a specified amount available to the Department of Defense for
Financial Management Policy
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