FINANCIAL MANAGEMENT POLICY MANUAL

increase to the allocation.
(Change 53)
073201 ALLOCATION
1. GENERAL.
The Department of the Navy system for the administration of funds is
designed to provide for the allocation and use of resources by appropriate
organizational components in accordance with currently approved plans
and decisions of the Secretary of the Navy, the Chief of Naval Operations,
and the Commandant of the Marine Corps, as modified by decisions and
actions of the Secretary of Defense, the Office of Management and
Budget, the President, and Congress, and in compliance with any
requirements of law or regulations. This paragraph describes procedures
of general applicability.
2. PURPOSE.
Allocations provide a means of establishing responsibility for fund
administration and of ensuring compliance with congressional intent and
Office of the Secretary of Defense (OSD) constraints in the use of funds
for programs below the appropriation level. The amounts allocated,
within the program/budget distributions applicable to each appropriation,
provide dollar limitations for use in administration, accounting, and
control. They are subject to reprogramming limitations established by
OSD and the Comptroller as described in par. 073301.
3. DOCUMENTATION.
The document generally used to convey authority from the Comptroller to
the head of the responsible office for each appropriation to make
commitments, obligations, and expenditures is the Program/Fund
Allocation (NAVCOMPT Form 2058). These allocations establish
availability based on the budget as submitted to Congress and modified by
congressional action on the budget request, by apportionment action of the
Office of Management and Budget and the OSD, and by approved
reprogramming actions. Prior to enactment of the annual Appropriations
Act, the NAVCOMPT Form 2058 establishes the level of programs
authorized under the continuing resolution and provides interim funding
for general fund appropriations of the Department of the Navy (DON).
Amounts are established within the authority of the restrictive limitations
as stated on the USD (C) memorandum for the personnel, and operation
and maintenance appropriations; RDT&E Program/Fund Authorization
(SD Form 440); and the Procurement Program/Fund Approval for Direct
Obligation (SD Form 487); and other schedules issued by OSD in the fund
authorization process. Upon enactment of the appropriations, amounts
established as limitations subject to 31 U.S. Code 1512 through the
interim funding procedures are rescinded and replaced by the amounts
Financial Management Policy
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