FINANCIAL MANAGEMENT POLICY MANUAL

3. SCOPE OF SCN FUNDING
a. Ship Equipment.
An item will not be budgeted in the SCN appropriation if delivery of
the item is scheduled to occur after ship delivery. Additionally, no
items will be added to the SCN ship equipment list, if at the time of
procurement, the item is scheduled to be delivered after ship delivery.
All items scheduled to be delivered after ship delivery will be
budgeted in the applicable Procurement or Operation and Maintenance
appropriation. SCN will fund the installation of those items planned
for installation prior to ship delivery but whose actual delivery slips
into the ship post delivery period.
b. Concurrent Funding.
During the period from ship delivery to the SCN obligation/work
limiting date for the ship, concurrent periods of availabilities (Post
Shakedown Availability (PSA), Industrial Maintenance Availability
(IMAV), Restricted Availability (RAV)) may be scheduled to
accomplish post delivery work in the most cost effective manner. The
overall obligation/work limiting date for SCN funding is 11 months
following completion of fitting out (CFO) of the ship. During such
periods, concurrent obligation and expenditure of SCN, Weapons
Procurement, Other Procurement, and Operation and Maintenance
(O&M) appropriations for appropriate categories of work may be
made, provided that separate accounting of funds is maintained.
4. SCOPE OF O&MN FUNDING.
The authority to use O&MN funding after the end of the fiscal year for
ship maintenance availabilities is contained in Title 10, United States
Code Section 7313. This authority applies exclusively to major ship depot
availabilities funded in the Ship Overhaul budget line items, including
regular and complex ship overhauls, refueling overhauls for nuclear
powered submarines, and depot modernization periods.
a. Unusual Cost Overruns.
Note the following:
(1) applicable operations and maintenance appropriations
available to the Department of the Navy for a fiscal year may be
used for payment of unusual cost overruns incident to ship
overhaul, maintenance, and repair for a vessel inducted into a
NWCF activity or contracted for during a prior fiscal year;
(2) the Secretary of Defense shall notify Congress promptly
before an obligation is incurred for any payment under item 1.
Financial Management Policy
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