requirements for Reserve personnel programs as the MPN and MPMC.
Operations and Maintenance Navy (O&MN) and Operations and Maintenance Marine Corps (O&MMC)These are the bread-and-butter annual appropriations for most Navy and Marine Corps activities. They pay for the day-to-day expenses of the Navy and Marine Corps. For most activities, the O&M appropriation provides funds for the operating budget, which is the master financial planning and control document for the activity. The operating budget contains estimates of workload, manpower, and monies required.
Operations and Maintenance Navy Reserve (O&MNR) and Operations and Maintenance Marine Corps Reserve (O&MMCR)These provide for the day-to-day support of the Navy and Marine Corps Reserves.
Research, Development, Test, and Evaluation, NavyThis appropriation allows for expenses necessary for basic and applied scientific research, development, test, and evaluation, including maintenance, rehabilitation, lease, and operation of facilities and equipment. The Research, De- velopment, Test and Evaluation, Navy appropria- tion is divided into six budget activities. Each budget activity is further divided into program elements for which funds have been budgeted.
Funds fill a very important need in financing the day-to-day operations of the Navy. Two types of funds, revolving and trust, are used extensively and you must understand how and why the are used. Funds are sums of money or other resources established for a specific purpose and usually without FY limitations.
A revolving fund is a fund established to finance a cycle of operations to which re- imbursements and collections are returned for reuse in such a manner as to maintain the principal of the fund; for example, loan funds and working capital funds such as stock funds and industrial funds. The capital amount of a fund may be in the form of cash, inventory receivables, or other assets.
Of the several funds, the one that you will be most concerned with is the Navy Stock Fund (NSF). It is not practical for each activity of the Navy to purchase all of its requirements directly from commercial suppliers using its operating money. It is for this reason that NSF exists, to provide the necessary capital to finance the purchase and maintenance of stocks of common supply items required for support and operation of the Navy. Basic capital for NSF is made available from Congress in much the same manner as appropriations. The total value of NSF is reviewed annually by Congress and adjusted to meet current requirements. Within the Navy, the Commander, Naval Supply Systems Command is the administrator of NSF.
Navy Industrial Fund The Navy Industrial Fund is a revolving fund used to finance industrial commercial-type activities. In effect, the Navy Industrial Fund serves much the same purpose as the Navy Stock Fund except that it is used to finance the cost of maintaining and operating such industrial commercial-type activities as naval shipyards. Major charges to the fund are civilian labor, material purchases, travel of personnel, trans- portation of material, cost of purchased utilities, and equipment and property rental. The fund is reimbursed through the sales of materials and services performed for the Navy and other government agencies.
The Naval Working Fund provides a single permanent revolving fund for financing all work not chargeable to some current naval appropria- tion. It is used to receive advance deposits for work of services furnished. This type of work is performed by the Navy for other government departments, foreign governments, and private parties. For example, let us assume that the U.S. Navy had sailors from an allied government embarked aboard U.S. Navy ships for training. The foreign government might deposit funds with the Navy to cover pay and allowances for their personnel. The money deposited would go into the Naval Working Fund and be assigned a deposit allotment number. Disbursing officers aboard the ships concerned would receive authorization to pay these trainees and would be furnished the