FINANCIAL MANAGEMENT POLICY MANUAL

2. BUDGET ACTIVITY
a. General.
Appropriations are divided into smaller accounts for various purposes.
These divisions, called budget activities, appear in the program and
financing schedule of the President's budget. For the direct program,
budget accounts are established within each appropriation account to
classify in a meaningful manner the specific functions contained in the
budget as approved by the Congress. One budget activity covers the
entire reimbursable program of an appropriation account. In the
accounting system, a budget activity is identified by a symbol called a
subhead; however, if necessary for administration, accounting, and
control, subdivisions of a budget activity may be identified by
individual subhead symbols, in which case, the budget activity is an
aggregation of subheads.
b. Military Personnel Appropriations.
(1) Active Duty Military Personnel Appropriations.
The Military Personnel, Navy and Military Personnel, Marine
Corps appropriations are organized under two structures. One
structure is consistent with that of the major programs of the
FYDP. This structure is used in distributing military personnel
expense to the Operation and Maintenance, Navy and Operation
and Maintenance, Marine Corps accounts for purposes related to
operating budget expense authority and for providing summary
budgetary data to the Congress. The second structure by budget
activity conforms to uniform classification useful for manpower
management, for providing detailed budget justification, for
obtaining allocations, and for program execution.
(2) Reserve Personnel Appropriations.
The Reserve Personnel, Navy and the Reserve Personnel, Marine
Corps appropriations are both divided into two uniform budget
activities, "Unit and Individual Training" and "Other Training and
Support." The subdivisions below the budget activity describe the
several types of training programs within each budget activity.
c. Operation and Maintenance Appropriations.
Budget activities within the operation and maintenance appropriations
for the active forces conform to the FYDP major programs to which
the appropriation applies. e.g., Strategic Forces, General Purpose
Forces, etc. Within this overall structure, there are budget program
packages which form the framework of the justification material
provided to the Congress. These program packages are significant
aggregations of related budget line items and discrete program
Financial Management Policy
2-5