distribution differs, depending on the purpose of the
appropriation.
Continuing Appropriations
A continuing appropriation, also referred to as a
no-year appropriation, is one that is available for
incurring obligations until the funding is exhausted or
until the purpose for which it was made is
accomplished without a fixed-period restriction.
Examples of continuing appropriations are Military
Construction Navy (construction projects that are
planned up to 5 years ahead) and revolving funds such
as the Defense Business Operating Funds (DBOF) (a
projection of the predicted cost to operate the Navy).
Continuing appropriations become available for
obligation and expenditure at the beginning of the FY
following the passage of the Appropriations Act or
may become immediately available when so specified
in the Act. When the purpose of a continuing
appropriation has been accomplished administratively
or by Congress, DoD transfers an amount equal to the
total of unliquidated obligations, less the total of
reimbursements to be collected, to the surplus of the
Treasury.
Multiple-Year Appropriations
Generally, multiple-year appropriations are made
for appropriations that require a long lead time for
planning and execution, such as procurement of
aircraft, missiles, and ships. Multiple-year appro-
priations become available for obligation and
expenditure at the beginning of the fiscal year
(1 October) designated in the appropriation, unless
otherwise stated in the Act. They are available for
incurring obligations only during the FYs specified in
the Act. However, they are available for paying such
obligations for an additional 5 years.
At the end of the last FY included in the
appropriation, when the appropriation expires for
obligation purposes, the balance is transferred to the
Treasury.
OPERATING BUDGETS
The 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,
command, or Headquarters Marine Corps. The
claimant is designated as the administering office
under the operation and maintenance appropriation.
Holders of operating budgets have the option of
granting 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 FY. By
using this system, facilities are able to manage and
effectively control the expenditure of funds. This
system prevents overexpenditure of funds early in the
fiscal year and helps prevent financial problems at the
end of the year. Unused quarterly funds may 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.
Funds allotted to the medical department to
purchase needed items are called the operating target
(OPTAR). Medical OPTAR funds are the funds used to
fulfill the following five major requirements:
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 BUMED
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 BUMED.
Authorized Dental Allowance List (ADAL).
The ADAL is the minimum amount of dental
material to be maintained on board a ship or on
order at any given time. The amount of material
as noted in an ADAL is designated by BUMED
for each class of ship and is based on past
experience. Recommendations for changes to
the ADAL should be forwarded through the
chain of command to BUMED.
Type Commander’s (TYCOM) Require-
ments.
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, such as a
natural disaster or humanitarian mission.
TYCOM requirements for medical considera-
tions relate to such items as gun bags, airways,
litters, and battle dressing supplies.
13-3
