FINANCIAL MANAGEMENT POLICY MANUAL

elements of the FYDP structure. In some cases a budget line item
equates to an individual program element; but, generally, budget line
items, representing program responsibilities assigned to various
program managers, aggregate to a program element. Program
execution and performance reporting are keyed to the budget structure
with necessary input aggregated from data provided by the major
claimant by subhead for each element or aggregation of elements. The
operation and maintenance appropriations for the Reserve forces have
a uniform structure consisting of budget activities for Operating Forces
and Administration and Servicewide Support. In total, these two
budget activities equate to FYDP Program 5, Guard and Reserve
Forces.
d. Procurement Appropriations.
Budget activities in the procurement appropriations are subdivided into
line items as displayed in the justification material (Exhibit P-1),
which is the basis of congressional review. For accounting and
reporting purposes, each line item is assigned a minimum of one
subhead within the general subhead for the budget activity.
e. Research, Development, Test and Evaluation.
The budget activities in the Research, Development, Test and
Evaluation, Navy appropriation are divided into budget subactivities
which equate to program elements as contained in the Future Years
Defense Program (FYDP).
f. Military Construction Appropriations.
The Military Construction appropriations for Navy and Naval Reserve
consist of budget activities for Major Construction, Minor
Construction, Planning, and in the case of Military Construction, Navy
an additional budget activity for Supporting Activities. The
appropriation for Family Housing, Navy and Marine Corps provides
for activities within the major categories of Construction, Operation
and Maintenance, and Debt Payment.
g. Reimbursable Program.
In all appropriations in which a reimbursable program is administered,
the reimbursable program is identified by at least one subhead. If the
need arises as a result of an increase in the size, scope, or complexity
of the program, the Comptroller may establish additional subheads for
the purpose of improving fund administration or program control or of
providing for more detailed accounting and reporting. Requests to the
Comptroller from the administering office for the establishment of a
subhead must have the approval of the responsible office.
(Change 59)
Financial Management Policy
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