FINANCIAL MANAGEMENT POLICY MANUAL

Management and Budget), USD (C) provides the Department of the Navy
(DON) with a document which establishes authorized funding levels; i.e.,
obligational authority for direct and in some case reimbursable programs
for each appropriation. For annual appropriations, the document reflects
quarterly distributions, which are subject to 31 U.S. Code 1512 at the
overall appropriation level. If the approved apportionment has not been
received because the appropriation has not been enacted or because the
appropriation has been exempt from apportionment, it is nevertheless,
incumbent upon USD (C) to establish authorized funding levels as of the
beginning of the fiscal year. Generally, the OSD funding authorization
document establishes applicable program/budget activity/procurement line
item/program element distributions of the total resources for the year.
These documents are revised during the course of the year to reflect
appropriation enactment, releases from deferral, reprogramming or other
actions that affect the funding authority. The program/budget distribution
amounts, which, in most cases, are in the nature of administrative
limitations or targets, provide a base for reprogramming subject to stated
limits for deviation without recourse to the issuing authority. The
authorization documents vary with the appropriation involved. USD (C)
conveys obligational authority for the personnel, and Operation and
Maintenance appropriations by means of a memorandum that approves
obligational authority by quarter. For the Procurement appropriations,
USD (C) transmits a Procurement Program/Fund Approval for Direct
Obligation (SD Form 487) which provides specific guidance as to line
items that are approved for obligation and those line items which require
further consideration as to timing, need, justification, etc., to be approved
for obligation. As the latter items are approved for obligation, USD (C)
issues amendments to the initial SD Form 487. For Research and
Development appropriations, USD (C) issues RDT&E Program/Fund
Authorization (SD Form 440) which establishes obligation limitations by
budget subactivities (program elements). These RDT&E subactivity
limitations constitute administrative subdivisions of funds subject to 31
U.S. Code 1512 constraints.
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073102 REPORTING
1. MONTHLY
a. General.
Monthly reports, required by the Office of Management and Budget
(OMB) and the Office of the Secretary of Defense (OSD) to reflect the
status of available funds, are submitted on the Report on Budget
Execution (DD Form 1176), supplemented by the Report on
Reimbursements (DD Form 725). In addition, the DD Form 1176 is
supported by a subsidiary report of transactions below the
Financial Management Policy
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