FINANCIAL MANAGEMENT POLICY MANUAL

NAVCOMPT Form 2058. Subsidiary constraints are shown as footnotes
to the NAVCOMPT Form 2058, as appropriate, to reflect statutory and/or
administrative requirements. The administration of these constraints is the
responsibility of the allocation recipient.
7. ALLOTMENTS
a. General.
As stated in par. 073200-3, allotments are used in connection with
those appropriations not administered under the Resource
Management Systems concept of operating budgets. They convey the
authority to incur commitments and obligations and to make
expenditures from the allocation or suballocation holder to an official
who is charged with a specific function or mission. The allotment,
prepared on the Allotment/Suballotment Authorization (NAVCOMPT
Form 372), provides the basis for establishment of the accounts against
which obligation and expenditure documents are charged.
b. Limitations.
Since an allotment is an administrative subdivision of funds, the total
amount is a limitation within the meaning of 31 U.S. Code 1512.
However, in the case of allotments from appropriations for which the
Office of Management and Budget (OMB) has granted automatic
apportionment of anticipated reimbursements for work or service
orders accepted, such orders provide an automatic increase to the
allotment. Although no more than one allotment is issued to an
allottee from a given budget activity, the allotment may provide
information as to further subdivisions at lower levels with stated
degrees of flexibility as to adjustments between those subdivisions.
c. Centrally Managed Allotments.
A centrally managed allotment is an allotment in a specific amount
made available by the holder of an allocation or suballocation for
charges for specified purposes by designated officials, without specific
limitations as to any individual official. Such allotments are
established subject to the approval of the Comptroller when regular
allotments are impractical. Charges to the centrally managed
allotments must be limited to those for the specific functions for which
the allotment is designated and must be restricted to transactions that
fall within one budget activity. An allocation or suballocation holder
may establish no more than one centrally managed allotment under a
given budget activity. Adequate systems of control must be employed
to prevent overobligation or overexpenditure. If absolute controls are
not available, there must be at least a system of frequent accounting
and reporting that will provide sufficient notice of the need for
Financial Management Policy
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