FINANCIAL MANAGEMENT POLICY MANUAL

each military department. The amounts so identified are included in the
estimates for the Operation and Maintenance, Navy and Operation and
Maintenance, Marine Corps appropriations, as appropriate, for the
forthcoming budget year.
3. BUDGET POLICY. Individual activities and installations are responsible
for budgeting and funding contributions to the Employees' Compensation
Fund for costs associated with their civilian employees.
(Change 61)
075213 UNITED STATES COAST GUARD
1. AUTHORITY. The United States Coast Guard, an agency of the
Department of Transportation, is designated by statute to be a military service
and a branch of the armed forces of the United States at all times. The statutes
provide that, upon declaration of war or when the President directs, the Coast
Guard will operate as a service in the United States Navy, and shall so
continue until the President, by Executive order, transfers the Coast Guard
back to the Department of Transportation. Also, the statutes provide that the
Secretaries of the armed forces may enter into agreements whereby supplies,
services, equipment, facilities, real estate and material may be provided with
or without reimbursement. The statutes further provide that, in time of war,
the Coast Guard will become part of the U.S. Navy. In the accomplishment of
Navy mission responsibilities, the United States Coast Guard, by operational
and joint financial and logistic agreements with the Navy, has provided
support in naval operations requiring its expertise.
2. BUDGET POLICY. To ensure the ready integration of the Coast Guard or
specific Coast Guard units into the Navy, the Chief of Naval Operations shall
provide to the Coast Guard all Navy-owned military readiness equipment and
associated spare support materials that the Navy deems necessary to enable
the Coast Guard or specific Coast Guard units to carry out assigned missions
while operating with the Navy. Principles covering this logistic and budgetary
support are covered in formal agreements between the Chief of Naval
Operation and the Commandant of the Coast Guard.
3. SOURCE DOCUMENT. Additional information related to the subject
covered by this paragraph is contained in the current issuance of
OPNAVINST 4000.79.
(Change 61)
075214 STATE DEPARTMENT
1. POLICY. Under Office of Management and Budget policy, the State
Department is required to bill and obtain reimbursement for costs incurred by
State Department overseas activities providing support to activities of other
United States agencies. The term applied to this support function is
Financial Management Policy
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