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APPROPRIATION

An appropriation is defined in the NAVCOMPT Manual as “. . . an authorization by an act of Congress to incur obligations for specified purposes and to make payments therefor out of the Treasury. ” The Navy used appropriations to receive money to pay for ships and the cost of their operation and maintenance, the cost of training and pay for personnel, and the money to operate shore establishments needed to support the fleets.

TYPES OF APPROPRIATIONS

Three types of appropriations may be used in the Navy, depending on the purpose for which they are issued. Most appropriations are for 1 fiscal year (FY) and are used to finance the normal operating costs of the Navy. Other appropriations may be granted without a time limit or for a specified time in excess of 1 year.

Annual Appropriations

Annual appropriations generally cover the current operating and maintenance expenses of the Navy. They become available at the beginning of fiscal year cited in the Appropriation Act. From that time on throughout the fiscal year, these appropriations may be directly expended or obligated. At the end of the fiscal year, the Navy must return any unobligated funds to the Treasury.

Continuing Appropriations A continuing appropriation or a no-year appropriation is one that is available for incurring obligations until the funds are exhausted or until the purpose for which it is made is completed. A continuing appropriation does not have a fixedperiod restriction and is used for shipbuilding, public works construction, research and development, and other long-term projects.

Multiple-Year Appropriations Multiple-year appropriations are made for purposes that required a long lead time. They are available for obligation only for the period of time specified.

OPERATING BUDGETS An operating budget is the annual budget of an activity and is assigned by the Chief of Naval Operations (CNO), Fiscal Management Division, to major claimants. A major claimant is an office or command, or Headquarters, Marine Corps, that is designated as the administering office under the operation and maintenance appropriation. Holders of operating budgets may grant a degree of financial responsibility to subordinates by issuing operating targets (OPTARs). OPTARs are generally apportioned in four equal quarterly divisions that represent the maximum amount that can be spent for each quarter of the fiscal year. By using this system, facilities are able to manage and effectively control the expenditure of funds. This system prevents the overexpenditure of funds early in the fiscal year and helps prevent financial crisis at the end of the year. Unused quarterly funds can be carried over to the next quarter simply by adding them to the new quarterly apportionment. At the end of the fourth quarter, all accounts are balanced and closed; new expenditures are not authorized until appropriated funds are made available for the new fiscal year.

Medical OPTAR funds are used to fulfill four major requirements, as follows:

Authorized Medical Allowance List (AMAL). The AMAL is the minimum amount of medical material to be maintained on board a ship or on order at any given time. The amount of material as noted in an AMAL is designated by NAVMEDCOM for each class of ship and is based on past experience. Recommendations for changes to the AMAL should be forwarded through the chain of command to COMNAVMEDCOM.

Type Commander’s (TYCOM) Requirements. To supplement the AMAL, TYCOMs may have additional requirements to maintain units in a high state of readiness and allow units to be self-supporting in an emergency. TYCOM requirements for medical considerations relate to such items as first aid gun bags, airways, litters, and battle dressing supplies.