FINANCIAL MANAGEMENT POLICY MANUAL

. Organizational Component.
The term "organizational component" as used in this paragraph,
includes offices and other commands, and headquarters exercising
command over shore activities, including Headquarters, U.S. Marine
Corps and the Commander, Military Sealift Command.
2. BUDGET POLICY
a. Funding of Preservation, Repair, and Maintenance.
The funding responsibility for the cost of preservation, repair, and
maintenance of plant property in an inactive status is assigned as
follows:
(1) inactive real property - the organizational component which
funds the activity holding the plant account (exclusive of plant
property in Industrial Reserve Plants, which is a responsibility of
the organizational component retaining control there of);
(2) inactive equipment - the organizational component which
would have control of the equipment upon its activation;
(3) services provided by another activity - receiving activity to
reimburse performing activity for additional costs incurred in
inactive plant property preservation, repair, maintenance or
caretaker services provided to one activity by another if such costs
are readily identifiable and significant.
b. Interim Use of Plant Property.
Additional (unbudgeted) cost resulting from authorized interim use of
inactive plant property will not be an expense to the owner unless such
expense is mutually agreed to by the owner and user.
(Change 48)
075143 MILITARY LAND UTILIZATION PROGRAMS
1. LUMBER AND TIMBER SALES.
Title 10 U.S. Code 2665 provides that the operation and maintenance
expenses incurred during the production and sale of lumber and timber
products may be reimbursed from lumber and timber sales proceeds.
2. AGRICULTURAL LEASES.
Funds received from a lease of land for agricultural or grazing purposes
may be retained by the activity having control of the property to cover the
administrative and program management expense of such leases. Title 10
Financial Management Policy
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