FINANCIAL MANAGEMENT POLICY MANUAL

"For expenses, not otherwise provided for, necessary for the operation
and maintenance of the Navy and the Marine Corps, as authorized by
law; and not to exceed $_____ can be used for emergencies and
extraordinary expenses, to be expended on the approval or authority of
the Secretary of the Navy, and payments may be made on his
certificate of necessity for confidential military purposes."
2. LIMITATIONS.
As specified in 10 U.S. Code 114, annual legislation is required to
authorize Department of Defense (DoD) appropriations for the operation
and maintenance of any armed force or the activities and agencies of the
DoD.
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074201 STRUCTURE AND CONTENT
1. GENERAL.
The Operation and Maintenance, Navy (O&MN) appropriation is
structured into four budget activities: Operating Forces; Mobilization;
Training and Recruiting; and Administration and Servicewide Support.
For more detailed justification, the budget activities may be further
divided into management and operational functions. The O&MN
appropriation is executed in accordance with the policies and procedures
described in par. 073202. Operations costs are limited to those which
meet the criteria for expense described in par. 075001.
2. BUDGET ACTIVITY 1, OPERATING FORCES.
This budget activity funds aircraft operations, ship operations, combat
operations and support, and weapons support. Funds are used to maintain
combat ready forces necessary to respond to national objectives in Joint,
Naval and Combined operations. This budget activity supports the
forward presence and crisis response capabilities of the National Military
Strategy as well as base operations support requirements. Included in
these costs are ship and aircraft operations, ship overhauls, aircraft depot
maintenance, alterations and modernization efforts, repairs, equipment
maintenance and technical support. Also included are combat operations
in support of force operations, oceanography and environmental prediction
support, war planning/exercises and wargaming, combat communications
and surveillance systems support, operation and maintenance of weapon
systems, and in-service support for conventional and strategic weapons.
3. BUDGET ACTIVITY 2, MOBILIZATION.
This budget activity funds maintenance of forces for rapid response to
unforeseen contingencies including fast sealift ships, maritime
prepositioning ships, hospital ships and aviation maintenance ships. This
Financial Management Policy
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