FINANCIAL MANAGEMENT POLICY MANUAL

This substitution allows calculation of the available unobligated balance from
the program value issued for each AG, and will assist in monitoring the level
of execution by reporting actual obligations at the AG level. Other elements
of subhead structure remain the same.
(Change 64)
074203 ADMINISTRATION
1. FISCAL YEAR 1993 AND PRIOR:
Prior to 1 October 1993, Operation and Maintenance, Navy (O&M,N)
funds were issued from the Departmental level to the Responsible Offices
(ROs) at the Budget Activity (BA) level. The RO then issued funds to the
Administering Offices (AOs), which issued funds to Expense Limitation
Holders (ELHs) and Funds Administrators (FAs), also at the BA level.
Although funds authorizations attach the limitations of 31 U.S. Code 1517
to the total direct program, the BA is used as the Base for
Reprogramming on the DD 1414, requiring that reprogramming actions be
monitored at the BA level.
2. FISCAL YEAR 1994 AND SUBSEQUENT:
Beginning 1 October 1993, funds authorizations from the Departmental
level to the ROs are issued at the Activity Group (AG) vice the BA level.
Responsibility for 31 U.S. Code 1517 remains at the total direct program
level. The RO will issue funds to the AO at the AG level with 31 U.S.
Code 1517 responsibility at the total direct program level. The AO may
authorize funds to an ELH or FA, and 31 U.S. Code 1517 restrictions are
passed at the discretion of the AO.
3. REPROGRAMMING:
The Base for Reprogramming (DD 1414) will be prepared at the BA level.
Prior approval reprogammings (DD 1415-1) are required for (1) transfers
between BAs in excess of $15 million, and (2) transfers out in excess of
$15 million from the following AGs and subactivity groups (SAGs): Air
Operations: mission and other flight operations, fleet air training, aircraft
depot maintenance; and Ship Operations: mission and other ship
operations, ship operational support and training, intermediate
maintenance, and ship depot maintenance.
Reprogramming between BAs by the AO must have prior written approval
of the RO. Reprogramming between BAs by Program Executive Officers
(PEOs) and Direct Reporting Program Managers (DRPMs) must have
prior written approval of the ASN(FM&C). No funds will be
reprogrammed out of the AGs for Ship Operations or Air Operations
without prior approval of the RO. Except for those two AGs,
reprogramming between AGs within a BA is at the discretion of the AO or
FA but must be reported to the RO if it exceeds $15 million or 10% of the
Financial Management Policy
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