NAVEDTRA 15004B CH 8 FINANCIAL MANAGEMENT Flashcards
WHAT is APPROPRIATION ACCOUNTING?
An APPROPRIATION ACCOUNT is an account of money available, obligated, and spent.
WHAT is COST ACCOUNTING?
A COST ACCOUNT is an account of the Navy’s TOTAL COST per activity, purpose, and expenditure.
WHAT is INVENTORY (STORES) ACCOUNTING?
An INVENTORY STORES ACCOUNT is used to maintain supplies on hand, used to prepare returns or reports.
WHAT is PLANT PROPERTY ACCOUNTING?
PLANT PROPERTY ACCOUNTING is used to maintain all Navy property and equipment, as capital - ashore.
For ACCOUNTING PURPOSES, Naval activities are divided into what TWO CATEGORIES?
SHORE ACTIVITIES and OPERATING FORCES
WHAT TWO CLASSIFICATIONS does the Navy EXPEND MONEY from?
APPROPRIATIONS or FUNDS
WHO authorizes an APPROPRIATION to INCUR OBLIGATIONS?
CONGRESS
WHAT is an APPROPRIATION?
An AUTHORIZATION by an ACT OF CONGRESS to MAKE OBLIGATIONS (orders) for a SPECIFIED PURPOSE and TIME, given as PAYMENTS from the TREASURY.
WHEN is the ACCOUNTING PERIOD of the Navy?
The FISCAL YEAR, beginning on October 1 and ending on September 30th, designated by the ending year.
Most APPROPRIATIONS used to FINANCE the NORMAL OPERATING COSTS of the Navy are for what PERIOD of TIME?
1 YEAR
WHAT is an ANNUAL APPROPRIATION?
ANNUAL APPROPRIATIONS are for NAVY EXPENSES, during the Appropriation Act Fiscal Year, to be OBLIGATED (orders made) or EXPENDED (payment deduction for obligations made).
WHAT is done with NAVY UNOBLIGATED BALANCES?
At the END OF FISCAL YEAR, NAVY UNOBLIGATED BALANCES must be returned to the TREASURY.
OBLIGATED FUNDS remain AVAILABLE for an ADDITIONAL ___ YEARS?
TWO
At the end of the OBLIGATIONS ADDITIONAL TWO YEARS, the REMAINING BALANCE is TRANSFERRED to the_________ ___ ACCOUNT.
SUCCESSOR “M”
WHAT does the SUCCESSOR “M” ACCOUNT REPRESENT?
The SUCCESSOR “M” ACCOUNTS are UNLIQUIDATED OBLIGATIONS - COLLECTIBLE REIMBURSEMENT. The SUCCESSOR “M” ACCOUNT is AVAILABLE for DISBURSEMENT of APPROPRIATED FUNDS.
WHAT is a CONTINUING APPROPRIATION?
A CONTINUING APPROPRIATION allows OBLIGATIONS until APPROPRIATION EXHAUSTION or APPROPRIATION PURPOSE ACCOMPLISHMENT.
WHAT is ANOTHER NAME for a CONTINUING APPROPRIATION?
A NO-YEAR APPROPRIATION
WHAT TYPE of WORK is supported by a CONTINUING APPROPRIATION?
CONSTRUCTION OF A SUPPLY BUILDING
WHEN do CONTINUING APPROPRIATIONS become AVAILABLE for OBLIGATION and EXPENDITURE?
CONTINUING APPROPRIATIONS become AVAILABLE USUALLY at the BEGINNING of the FISCAL YEAR, FOLLOWING APPROPRIATION ACT PASSAGE, but IMMEDIATELY if SPECIFIED in the ACT.
WHAT happens to the BALANCE of the UNUSED CONTINUING APPROPRIATION after PURPOSE ACCOMPLISHMENT?
The CONTINUING APPROPRIATION balance of UNLIQUIDATED OBLIGATIONS - COLLECTABLE REIMBURSEMENTS is transferred to the “M” ACCOUNT. UNOBLIGATED BALANCE goes to TREASURY SURPLUS.
WHAT is an APPROPRIATION SYMBOL?
An APPROPRIATION SYMBOL is a 7-DIGIT number that tells the GOVERNMENT AGENCY, FISCAL YEAR, and PURPOSE of the APPROPRIATION.
WHAT is a MULTI-YEAR APPROPRIATION?
MULTI-YEAR APPROPRIATIONS are made for LONG - TIME PLANS and EXECUTION such as buying AIRCRAFT and MISSILES.
WHEN do MULTI-YEAR APPROPRIATIONS become AVAILABLE for OBLIGATION and EXPENDITURE?
MULTI-YEAR APPROPRIATIONS become AVAILABLE at the BEGINNING OF ACT SPECIFIED FISCAL YEAR, unless OTHERWISE SPECIFIED.
WHEN are MULTI-YEAR APPROPRIATIONS become AVAILABLE for PAYMENT?
MULTI-YEAR APPROPRIATIONS become AVAILABLE for PAYMENT an ADDITIONAL 2 YEARS AFTER ACT SPECIFIED YEAR.
WHAT happens to the BALANCE of the UNUSED MULTI-YEAR APPROPRIATION after PURPOSE ACCOMPLISHMENT?
At FISCAL YEAR END, OBLIGATIONS ARE EXPIRED. UNOBLIGATED BALANCE goes to TREASURY SURPLUS.
TWO YEARS AFTER MULTI-YEAR APPROPRIATION OBLIGATION EXPIRATION, UNLIQUIDATED OBLIGATIONS - REIMBURSEMENTS BALANCE IS TRANSFERRED to WHICH ACCOUNT?
THE “M” ACCOUNT
WHAT 3 TERMS are used to designate the STATUS of APPROPRIATIONS?
The STATUS of APPROPRIATIONS are CURRENT, EXPIRED, and LAPSED.
WHAT is a CURRENT APPROPRIATION?
A CURRENT APPROPRIATION is AVAILABLE for INCURRING OBLIGATIONS during the CURRENT FISCAL YEAR.
WHAT is an EXPIRED APPROPRIATION?
An EXPIRED APPROPRIATION is NOT AVAILABLE to MAKE or PAY EXISTING OBLIGATIONS.
WHAT is a LAPSED APPROPRIATION?
A LAPSED APPROPRIATION is the UNDISTRIBUTED APPROPRIATION BALANCE that is NOT AVAILABLE for DISBURSEMENT by the DEPARTMENT.
APPROPRIATIONS are PLACED in what STATUS ORDER?
CURRENT, EXPIRED, LAPSED
At the end of their availability period, the UNLIQUIDATED OBLIGATIONS of ANNUAL and/or MULTIPLE YEAR APPROPRIATIONS are transferred to which of the following government agencies?
The UNLIQUIDATED OBLIGATIONS of ANNUAL and/or MULTIPLE YEAR APPROPRIATIONS are transferred to the TREASURY.
WHAT are the elements of FUND IDENTIFICATION?
The elements of FUND IDENTIFICATION are…APPROPRIATION SYMBOL, EXPENSE LIMITATION, OBJECT CLASS, and SUBHEAD SYMBOL.
WHAT APPROPRIATION SYMBOL DIGITS are assigned to the NAVY and WHAT is their POSITION?
Example - 1741804
The NAVY APPROPRIATION SYMBOL DIGITS are 17 as the FIRST TWO DIGITS.
THE THIRD DIGIT in the APPROPRIATION SYMBOL on an ACCOUNTING DOCUMENT covering charges and credits to funds provides which of the following items of information?
17111804
THE THIRD DIGIT in the APPROPRIATION SYMBOL 17111804 is the FISCAL YEAR.
THE LETTER X in the APPROPRIATION SYMBOL 17X1832 provides WHAT specific information?
THE LETTER X in the APPROPRIATION SYMBOL 17X1832 are for CONTINUING APPROPRIATIONS WITH NO FISCAL YEAR LIMITATIONS.
HOW is a MULTIPLE YEAR APPROPRIATION identified?
A MULTIPLE YEAR APPROPRIATION is identified as the FIRST and LAST YR its AVAILABLE. For Example in APPROPRIATION 179/101804 - 9/10 meaning for 2009 and 2010.
The LAST FOUR DIGITS of the APPROPRIATION SYMBOL tell what?
17111804
The LAST FOUR DIGITS of the APPROPRIATION SYMBOL tell the PURPOSE OF THE APPROPRIATION. For Example in Appropriation 17111804 - 1804 is for Operation and Maintenance or OM&N.
WHAT is the SUBHEAD portion of the LINE OF ACCOUNTING?
1741804.720D
The SUBHEAD identifies the MAJOR PROGRAM of the FIVE YEAR DEFENSE PLAN. The FIRST TWO DIGITS are the LAST TWO DIGITS of the CLAIMANTS UIC. The THIRD DIGIT is the MAJOR PROGRAM of the FYDP. The FOURTH DIGIT is the 0 for FLEET LEVEL, and ALPHA-NUMERIC or NUMBERIC character identifying the EXPENSE LIMITATION.
Example - 1741804.720D - D is the EXPENSE LIMITATION.
WHAT is the OBJECT CLASS portion of the ACCOUNTING DATA?
1741804.702D 000
The OBJECT CLASS is THREE CHARACTERS LONG, only used in OPTAR TRANSACTIONS that affect the INTERNATIONAL BALANCE of PAYMENTS. OPTAR CODES are listed in NAVCOMPT MANUAL VOL 2.
Example - in accounting data - 1741804.702D 000 - the 000 is the OBJECT CLASS.
WHAT is an OPERATING BUDGET or BUREAU CONTROL NUMBER?
1741804.702D 000 53824
An OPERATING BUDGET or BUREAU CONTROL NUMBER identifies OPERATING BUDGETS as the BUREAU CONTROL NUMBER.
In the accounting data - 1741804.702D 000 53824 - 53824 is the OPERATING BUDGET or BUREAU CONTROL NUMBER.
WHAT is a SUB-ALLOTMENT/OPERATION BUDGET SUFFIX in the accounting data?
1741804.702D 000 53824 B
The SUB-ALLOTMENT/OPERATION BUDGET SUFFIX is used to IDENTIFY the DIFFERENT OPERATING BUDGETS (R=ship overhaul and F=ship fuel).
Example - 1741804.702D 000 53824 B
B = SUB-ALLOTMENT/OPERATING BUDGET SUFFIX.
WHAT is the AUTHORIZATION ACCOUNTING ACTIVITY (AAA) portion of the accounting data?
1741804.720D 000 53824 B 060957
The AUTHORIZATION ACCOUNTING ACTIVITIY (AAA) is the UIC of the ORGANIZATION that does the ACCOUNTING for an OPERATING BUDGET/FUND. This UIC is the one for DFAS.
1741804.720D 000 53824 B 060957
060957 = AUTHORIZATION ACCOUNTING ACTIVITY or AAA
WHAT is the TRANSACTION TYPE CODE portion of the accounting data?
The TRANSACTION TYPE CODE is identified by a TWO CHARACTER CODE, for EASY IDENTIFICATION, STORES ACCOUNTING and SPECIAL INTEREST TRANSACTIONS. The codes and explanation of their meaning are found in NAVCOMPT MANUAL VOLUME 2.
WHAT is the PROPERTY ACCOUNTING ACTIVITY?
1741804.702D 000 53824 B 060957 2D R2192
For Operating Forces Material or Service Requisitions, the SERVICE DESIGNATOR (R, V, and N) and the UIC of the REQUISITIONER, found in NAVCOMPT Manual Volume 2, Chapter 5.
1741804.702D 000 53824 B 060957 2D R2192
R2192 is the PROPERTY ACCOUNTING ACTIVITY.
R=Service Designator and 2192 is the UIC.
WHAT is the COST CODE portion of the accounting data?
1741804.702D 000 5384 B 060957 2D R2192 0041841005NH
The COST CODE is a 12 Character that may be ALPHA NUMERIC OR BOTH.
1741804.702D 000 5384 B 060957 2D R2192 0041841005NH
0041841005NH = Cost Code
00 = always first
4184 - julian date
1005 - serial number
NH - fund code (used almost daily)
WHAT is a FUND CODE?
1741804.702D 000 53824 B 060957 2D R52192 0041841005NH
The FUND CODE is 2 Characters.
NH = FUND CODE
1741804.702D 000 53824 B 060957 2D R52192 0041841005NH
1rst Character = FYDP and OPERATING BUDGET HOLDER.
2nd Character = MATERIAL / SERVICE PROCURED.
NAVSUP P-485, APPENDIX 30 = All Fund Codes
WHAT are the TWO types of FUNDS that are USED EXTENSIVELY?
REVOLVING and TRUST are the TWO TYPES of FUNDS that are USED EXTENSIVELY.
WHAT is a REVOLVING FUND?
A REVOLVING FUND is a fund established to finance a CYCLE of OPERATIONS, and is REIMBURSED EQUAL to each EXPENDITURE.
REIMBURSEMENTS and COLLECTIONS go back to the REVOLVING FUND for REUSE.
WHAT is the FUND that LS’s should be MOST CONCERNED ABOUT?
The Navy Working Capital Fund (NWCF) is the FUND that LS’s should be MOST CONCERNED ABOUT.
WHY does the Navy Capital Working Fund (NWCF) exist?
The Navy Capital Working Fund (NWCF) exists, so the NAVY doesn’t PURCHASE everything from COMMERICIAL SUPPLIERS using their OPERATING MONEY.
WHAT Fund is used to procure stocks of common supply items carried in the Navy Stock Account (NSA)?
The Navy Working Capital Fund (NWCF) is used to procure stocks of common supply items carried in the Navy Stock Account (NSA).
WHICH is the ADMINISTRATOR of the Navy Working Capital Fund (NWCF)?
COMMANDER, NAVAL SUPPLY SYSTEMS COMMAND (NAVSUP) is the ADMINISTRATOR of the Navy Working Capital Fund (NWCF).
WHAT ARE Navy Capital Working Fund (NCWF) CHARGES?
Purchase of supplies taken up with the Navy Stock Account (NSA).
Appropriation adjustments
The PRIMARY MISSION of AFLOAT TENDERS and COMBAT STORES SHIPS is______ and/or ______ ______.
REPAIR and/or SUPPLY SUPPORT
CVN’S, LHD’S AND MAG’S are authorized to carry ___ MATERIAL as __________.
NSA as INVENTORY
MATERIAL carried as INVENTORY in INTERMEDIATE ACTIVITIES is in what CLASS?
Special Accounting Class (SAC) 207
WHY is MATERIAL called SAC 207?
To SEPERATE from NSA Material.
Special Accounting Class (SAC) 207 Transactions are paid for with ____ Money.
NWCF
What is OPTAR?
OPTAR is an ESTIMATE of the AMOUNT OF MONEY REQUIRED to PERFORM TASKS and FUNCTIONS.
PROCEDURES for
