FINANCIAL MANAGEMENT POLICY MANUAL

Chiefs of Staff, and to activities financed by DoD appropriations
for civil functions. Administrative and statutory limitations are
stated by footnote. In addition, OSD authorizes a second operating
budget for each military service that provides expense authority for
"Other Military Personnel Operations." This operating budget
contains expense authority for military personnel costs, applicable
to the Active Forces, which are not covered in the military
personnel standard rates (e.g., permanent change-of-station travel,
personnel assigned to "Support of Allies," and the reimbursable
program of the respective military personnel (Active Forces)
appropriation) and it is not applicable to operating budget
procedures under Operations accounts or RDT&E,N.
(2) Research, Development, Test and Evaluation, Navy.
For operating budgets applicable to RDT&E,N, OSD conveys
financial authority to the Department of the Navy by means of a
RDT&E Program/Fund Authorization (SD Form 440) which
establishes obligation limitations by program element. Expense
authority for military personnel of the Active Forces applicable to
research and Budgeting development effort is included in the
financial authority provided for the Operations accounts, as
described in subpar. (1), and consequently it is not identified to
RDT&E,N operating budgets during the OSD allocation process.
b. Comptroller of the Navy.
The Comptroller allocates funds for operating budgets under the
RDT&E,N and the Operation and Maintenance appropriations of the
Navy and Marine Corps to the responsible office for the appropriation
(CNR, CNO, and CMC, as appropriate) by means of a Program/Fund
Allocation (NAVCOMPT Form 2058). The NAVCOMPT Form 2058
conveys the obligational authority and expense authority applicable to
Operations accounts, together with constraints and limitations, as
transmitted by OSD, as outlined in subpar. a. The expense authority
for "Other Military Personnel Operations" is passed to the responsible
offices for the military personnel appropriations by inclusion in
footnotes on the NAVCOMPT Form 2058 making allocations for
these accounts. For RDT&E,N the NAVCOMPT Form 2058 conveys
the obligational authority and appropriate constraints and limitations
and carries the SD 440 as an enclosure. The NAVCOMPT Form 2058
also establishes a base for reprogramming actions based on amounts
reflected in the President's budget, as amended by the apportionment
review.
c. Chief of Naval Operations.
After receiving the allocations signed by the Director, Office of
Budget (FMB) for the Operation and Maintenance, Navy (O&MN)
Financial Management Policy
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