FINANCIAL MANAGEMENT POLICY MANUAL

073301 REPROGRAMMING
1. GENERAL.
The congressional committees concerned with Department of Defense
Appropriations Acts and the Authorization Acts related thereto are
desirous that the Department of Defense carry out the programs for which
funds have been justified and authorizations obtained. They have,
however, accepted the view that rigid adherence to the amounts justified
for budget activities or for subsidiary items or programs may unduly
jeopardize the effective accomplishment of planned programs in the most
business like and economical manner, and that unforeseen requirements,
changes in operating conditions, revisions in price estimates, wage rate
adjustments, etc., require some diversion of funds from the specific
purposes for which they were justified. Reprogramming measures
developed in consultation with the committees are, therefore, not only
necessary and desirable but also provide firm basis for retention of
congressional control over the utilization of Defense appropriations by
assuring that the congressional intent is carried out while, at the same
time, providing a timely device for achieving flexibility in the execution of
Defense programs.
2. DEFINITION.
Reprogramming encompasses changes in the application of financial
resources from the purposes originally contemplated and budgeted for.
The term "reprogramming", however, has been extended to include
actions at any level within the Department of Defense to reallocate or
redistribute resources among program/budget categories. These
reprogramming decisions are subject to constraints involving thresholds
which establish the level of approval according to the scope of the
proposed change.
3. PROCEDURES.
Detailed guidance and procedures for reprogramming of Department of
Defense appropriated funds is found in DOD 7000.14-R, Financial
Management Regulation, Volume 3, Chapter 6.
A summary of reprogramming requirements is provided below:
a. Prior Approval Reprogramming Actions
1. Procurement quantity increase of a major end item (unless
specific congressional language allows additional quantities).
2. Affects a congressional special interest item.
3. Involves the use of general transfer authority.
4. Exceeds established thresholds.
Financial Management Policy
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