FIVE-YEAR DEFENSE PROGRAM (FYDP)

The FYDP establishes the planned force structure and financial levels for the military departments for a five-year period. The Navy classifies each activity or unit identified with a unit identification code (UIC) to a FYDP or a specific budget activity within a FYDP and to a specific program element. Refer to table 6-1 for a list of program elements and related budget activities.

BUDGET ACTIVITIES

The principal missions to be accomplished under the appropriation are classified as budget activities (major programs) in the FYDP. These budget activities provide the basis on which the entire RMS operations is structured. Each appropriation symbol is identified with a subhead (example: 17x4911.2320). The third character of the appropriation subhead number identifies the applicable budget activity. For example; subhead .2320 identifies budget activity 2-General-Purpose Forces. The budget activities in the FYDP applicable to the Operation and Maintenance, Navy (O&MN) appropriations (regular and reserve) are listed in table 6-1.

FUNDING AND ADMINISTRATION ASHORE

The appropriation 17_1804 O&MN (regular) has subheads that are structured by and identify Regular Navy budget activities that align with the FYDP. The appropriation 17_ 1806 O&MNR (reserve) has subheads that are structured by and identify the applicable Naval Reserve force budget activity of the FYDP. The Navy cost information system classifies each activity or unit identified with a UIC to the FYDP or to a specific budget activity within the FYDP and to a specific program element. Therefore, with the exception of military personnel costs, the operation of each activity, ship, squadron, or other operating unit is funded entirely from the subhead applicable to the individual activity's program classification.

FLOW OF FUNDS

Type commanders (TYCOMs) issue operating budgets to shore activities designated as responsibility

Figure 6-1.-Flow of funds for operations and maintenance, Navy.

renters. Figure 6-1 illustrates flow of funds for operation and maintenance. Figure 6-2 illustrates the flow of funds for the Defense Business Operations Fund (DBOF).

FUND IDENTIFICATION

The fund identification system is broken down into several divisions for specific identification. These elements are the appropriation symbol and subhead.

Appropriation Symbol

As described in the previous paragraph, the appropriation symbol identifies the government agency

Figure 6-2.-DBOF Funding.

responsible for administering the appropriation, the fiscal year, and the specific appropriation.

Subhead Symbol

The four-digit subhead symbol for the O&MN appropriation identifies the major claimant and major program of the FYDP. The first two digits represent the last two digits of the major claimant's UIC. The third digit identifies the major program or budget activity of the FYDP. The fourth digit is a zero at the major claimant (fleet) level. The following is an example of a subhead symbol:

Expense Limitation

An expense limitation cites the same subhead from which it is issued except that the fourth digit is an alphabetic or numeric character assigned by the major claimant to identify the expense limitation holder. The following is an example of an expense limitation subhead symbol:

Operating Budget

Operating budgets are issued from expense limitations to responsibility centers on a Resource Authorization, NAVCOMPT Form 2168-1, and are designated by the UIC of the responsibility center. Fleet and type commanders issue operating budgets to themselves for centrally managed programs and for their subordinate cost centers (units). When more than one operating budget is issued to a responsibility center from the same expense limitation, the operating budgets are distinguished by appending a one-character alphabetic or numeric suffix to the operating budget number. To simplify the identification of the specific operating budget chargeable on each requisition or other financial document, two-digit fund codes are established by the Office of the Comptroller of the Navy. Fund codes used by the operating forces are contained in appendix II of NAVSO P-3013.