FINANCIAL MANAGEMENT POLICY MANUAL

. Installation of Items Funded From Budget Activity 7, Other Procurement,
Navy Appropriation.
Equipment installation costs for items budgeted in the appropriation
Other Procurement, Navy, Budget Activity 7, is assigned to the
organization budgeting for the item of equipment.
c. Installation of Items Requisitioned From Inventory.
Budgeting for equipment installation costs is the responsibility of the
major claimant for items requisitioned from inventory by their local
activity; i.e., procured by technical systems commands (APA
cognizance symbol managers) or other authority responsible for
funding servicewide procurement to meet inventory objectives and not
programmed for installation at specific activities.
d. Reinstallation or Relocation.
Costs of reinstallation or relocation of present equipment, which is not
associated with a military construction project, are expenses to be
borne by the operating funds of the activity involved.
e. Application of Expense/Investment Criteria.
The systems command or the operating organization budgets for
investment costs in procurement appropriations and expense costs in
operations appropriations. Accordingly, the cost of equipment
procurement, including ancillary equipment, will be funded by
procurement or operations appropriations according to the criteria
contained in par. 075001. The cost of equipment installation will be
funded by the same appropriation in which the equipment is procured.
In the case of previously purchased and installed equipment, removal
and reinstallation is operationally financed.
f. Unanticipated Installation.
In those cases where unanticipated and unbudgeted equipment
installations are directed by higher authority, and such actions result in
deficiencies, the responsible organization should address the
requirements in apportionment submissions and midyear reviews.
g. Intrusion Detection Systems.
Funding for Intrusion Detection Systems (IDS) is subject to the
expense-investment criteria.
4. SOURCE DOCUMENTS.
Additional information relating to equipment installation in real property
facilities is contained in pars. 074601 and 075361, and in the current
Financial Management Policy
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