FINANCIAL MANAGEMENT POLICY MANUAL

c. Boats.
Boats are water-borne noncommissioned craft, not designated in the
current issuance of SECNAVINST 5030.1 as craft, capable of
independent operation; may be assigned to a ship, shore activity,
command, or fleet operating unit.
3. BUDGET POLICY
a. General.
In general, all operation and maintenance costs associated with active
fleet ships, craft and boats will be budgeted and funded in the
Operation and Maintenance, Navy (O&MN) appropriation by the
command or activity to which assigned. Similarly, all operation and
maintenance costs associated with Naval Reserve ships and craft will
be budgeted and funded in the Operation and Maintenance, Navy
Reserve appropriation by the command or activity to which assigned.
b. Operation and Maintenance.
Operation and maintenance costs, including repairs, labor, fuel,
lubricants, and other stock account material required for daily
operation of ships, craft, and boats, will be budgeted for and funded by
the command or activity to which assigned. This includes jointly used
ships and craft which are normally assigned to the most dominant user
having facilities and personnel available for maintenance. Activities
or units having boat allowances will budget for, fund, and administer
the operation and maintenance costs of boats assigned under the
allowance. The Fleet Commanders will budget for and fund (through
appropriate type commanders) the operation and maintenance costs of
those ships under their administrative and operational control. All
operation and maintenance costs, including overhauls and major
repairs discussed in subpar. c, will be funded by the fleet to which the
ship is permanently assigned, including those ships temporarily
assigned to another fleet having operational responsibility.
c. Overhauls and Major Repairs
(1) Fleet Ships and Craft.
Overhauls and major repairs for ships and craft assigned to the
fleets or subordinate commanders and activities will be budgeted
and funded by the Fleet Commander.
(2) Shore Commander Service Craft.
Overhauls and major repairs to service craft assigned to a shore
command or activity, not under fleet command, will be budgeted
for and funded by the activity or command to which the craft are
assigned.
Financial Management Policy
3-43