FINANCIAL MANAGEMENT POLICY MANUAL

newly authorized. Distribution of availability within an appropriation is
made by budget activity, procurement line item, construction category,
program element or other program category as appropriate to the
administration of each appropriation.
4. SCOPE.
The allocation includes both appropriated funds and anticipated
reimbursements other than those for work and service orders which are
subject to automatic apportionment and therefore, automatically increase
the allocation. It specifies the amounts that are available for obligation
and the amounts that are not available for obligation. The amounts not
available for obligation are categorized by OMB, OSD, and OASN
(FM&C). Statutory or other limitations are indicated by footnotes. The
amount of reimbursable work or service orders received and accepted is
automatically allocated when apportionment is automatic and as a result is
not part of the amount allocated on the NAVCOMPT Form 2058.
However, in the second and subsequent years of availability the
unobligated balance apportioned reflects the unobligated balance of
reimbursable work and service orders from the prior year and thus
becomes a part of the allocated amount. While operating under the
authority of a continuing resolution, a reserve is established in Section IA
and II of the NAVCOMPT Form 2058 to balance authorized program
amounts with financial resources contained in temporary warrants.
Obligations and commitments may be incurred by procurement line item
or other appropriation subdivision in the program amounts indicated on
NAVCOMPT Form 2058 provided that the appropriation level limitations
are not exceeded.
5. PREPARATION AND APPROVAL.
NAVCOMPT Forms 2058 and 2058-CT are prepared and approved by the
Office of Budget (FMB), on behalf of the Comptroller of the Navy. After
approval, they are forwarded to the responsible office for the appropriation
for implementation.
6. CONSTRAINTS.
Generally, the NAVCOMPT Form 2058 establishes distributions for each
program/budget category as applicable and indicates, by footnotes, the
quarterly limitations at the overall appropriation level for those
appropriations which are subject to quarterly apportionment. The
recipient of the allocation is responsible for distributing the quarterly
limitations as appropriate below the appropriation level, ensuring that the
cumulative total of quarterly limitations does not exceed the quarterly
apportionment for the appropriation. He is also responsible for
establishing controls to ensure that any further subdivisions of allocated
funds, as well as allotments, commitments, obligations, and expenditures,
do not exceed the quarterly and annual limitations established by the
Financial Management Policy
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