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FINANCIAL MANAGEMENT POLICY MANUAL

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(2) Shore Activity Recreation Equipment.<br />

The Commander, Naval Facilities Engineering Command<br />

(NAVFAC) is assigned responsibility for budgeting and funding<br />

initial outfitting requirements of naval facilities constructed under<br />

the Military Construction Program. Certain MWR facilities may<br />

be eligible for initial outfitting of recreation equipment from<br />

appropriated funds as determined by review on a case-by-case<br />

basis. All equipment items needed to provide a complete and<br />

usable facility are included as initial outfitting requirements with<br />

the exception of consumables or expendables, which are funded by<br />

Navy claimants as expense items in operating appropriations.<br />

NAVFAC, in conjunction with BUPERS, is responsible for<br />

requirements determinations of recreation equipment for initial<br />

outfitting. The initial outfitting of naval shore facilities is<br />

budgeted as collateral equipment under the Other Procurement,<br />

Navy (OPN); and the Operation and Maintenance, Navy and Navy<br />

Reserve appropriation dependent upon the expense/investment<br />

classification of the equipment.<br />

c. Replacement/Augmentation<br />

(1) Investment Items.<br />

Recreation equipment meeting the criteria of investment items for<br />

both shipboard and Navy shore activity use (including open<br />

messes) is centrally budgeted and funded by BUPERS in the OPN<br />

appropriation. Investment items for Marine Corps activities are<br />

centrally budgeted and funded by Headquarters, Marine Corps in<br />

the Procurement Marine Corps (PMC) appropriation.<br />

(2) Expense Items.<br />

Recreation equipment meeting the criteria of expense items is<br />

budgeted by Navy claimants in operating appropriations.<br />

Shipboard equipment is funded from ship Operating Targets<br />

(OPTAR), and shore activity equipment is funded from activity<br />

operating budgets and NWCF activity military support resources<br />

(see par. 075524.5).<br />

(Change 61)<br />

075380 SCOPE<br />

Section V:<br />

MILITARY CONSTRUCTION<br />

This section presents investment funding policy for the military construction<br />

programs. It includes guidance for installed equipment and supervision,<br />

inspection, and overhead (SIOH). An explanation of cost and scope variations<br />

Financial Management Policy<br />

3-172

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