FINANCIAL MANAGEMENT POLICY MANUAL

074041 USES
1. BUDGET FORMULATION.
The appropriation structure provides a formal framework within which to
systematically develop and present budget estimates to higher authority
for their review and approval. The structure also provides for consistent
and orderly collection of historical data of the presentation and approval
phases of the budget cycle.
2. BUDGET EXECUTION.
The appropriation structure provides a managerial and legal basis for
budget execution in a program display of funds appropriated by the
Congress. Funds are distributed from the appropriation structure to the
appropriate organizational level for program execution. Program
performance can be measured against a standard structuring of funds in
the same terms as approved by the Congress from the lowest increment
through the appropriation level, providing meaningful information to
higher review authority. Financial data in accounting and reporting
systems is recorded in the standard structure of the individual
appropriation.
074042 PROCEDURE FOR CHANGING
1. APPROVAL.
Under the provisions of the Office of Management and Budget Circular
No. A-11, the following types of changes must be cleared with the Office
of Management and Budget:
a. in the appropriation pattern, including proposed new accounts and
changes in the titles and sequence of existing accounts;
b. in the methods of funding a program;
c. in program or budget activity classifications for the program and
financing schedules for all appropriation accounts and funds.
2. TIMING.
Subsequent to the issuance of Circular A-11 by OMB each year, the
Office of the Under Secretary of Defense (Comptroller), (USD (C)), will
request that the DoD components submit by memorandum any proposals
on the items listed above. If acceptable to USD (C), these proposals will
be forwarded to OMB for approval.
3. PROCEDURE.
Annually, the Comptroller requests appropriate components to submit
proposed changes to budget structure and content and appropriation
language for the budget year under preparation. The request for changes
Financial Management Policy
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