FINANCIAL MANAGEMENT POLICY MANUAL

procurement, distribution, and repair of cryptographic devices within the
Department of the Navy.
2. BUDGET POLICY
a. Procurement.
The costs of procurement of cryptographic devices, including initial
outfitting of replacement parts, subsequent modification kits, and
Appropriations Purchases Account replacement parts for the Navy,
Marine Corps, and Coast Guard is a budgeting and funding
responsibility of the Space and Naval Warfare Systems Command
(SPAWAR) in the Budget Activity 2 "Communications and Electronic
Equipment" of the Other Procurement, Navy appropriation.
b. Distribution.
The costs of distribution of cryptographic devices will be budgeted for
and funded from resources made available to the Naval Security Group
within the Operation and Maintenance, Navy (O&M,N) account.
c. Maintenance
(1) Shore-Based Devices.
The user activity will bear all costs of maintenance, repair, and
modification of shore-based devices, including stock funded
material. Navy activities will utilize resources made available
within the O&M,N account. The costs for cryptographic devices
held by the Registered Publications Issuing Office, however, will
be funded by SPAWAR.
(2) Shipboard Devices.
The maintenance, repair, and modification of shipboard
cryptographic devices performed by naval shore activities will be
funded from resources made available to SPAWAR within the
O&M,N account. Cost of work performed aboard by members of
ship's complement will be borne by the supply and equipage
operating target funds supporting the ship.
(3) Airborne Devices.
The maintenance, repair, and modification of airborne devices used
in aircraft assigned to shore-based commands will be funded in
accordance with the provisions of subpar. (1). The maintenance,
repair, and modification of airborne devices used in aircraft
assigned to afloat commands will be funded in accordance with the
provisions of subpar. (2).
Financial Management Policy
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