CHAPTER 4
FINANCIAL MANAGEMENT AND LOGISTICS
A budget has been defined as “a statement of
the financial position of an administration for a
definite period of time based on estimates of
expenditures during the period and proposals for
financing them.” No business or activity could
survive very long without planning, formulating,
and adhering to some form of budget. The one
source of income used to cover Command Reli-
gious Program (CRP) expenses is appropriated
funds. These funds are monitored through a care-
fully programmed and prioritized spending plan.
APPROPRIATED FUNDS
Each year commands throughout the Navy
submit their financial plan to Congress via the
chain of command. Most allocations are planned
for the Navy some 24 months in advance and are
authorized for a controlled amount. Hence, each
command within the Department of the Navy has
a certain funding authorization approved by
Congress each year for operations. These authori-
zations are known as appropriated funds and are
used to buy supplies and equipment, make repairs,
and cover other costs for each command.
OPERATIONS AND MAINTENANCE
(NAVY) (O&M,N)
While all operations and maintenance funds
are distributed from government revenue and
taxes, all funds are not authorized for the same
purpose. Certain authorizations are for the Army,
Navy, Air Force, and Marine Corps. After each
branch of service receives an authorization, the
authorized amount is distributed according to the
needs reflected in the various budgets submitted.
This type of appropriated fund is allocated to
the Office of the Chief of Naval Operations each
fiscal year and is used by each command having
input to the Navy budget. (This is assuming all
cumulative budgets for the entire Navy are fully
funded.) The purpose of the allocation is to
provide commanders the means to maintain their
units in a continuous state of operational readiness
throughout the fiscal year, with a spending plan
to cover needs incurred in maintaining such
readiness—buying equipment, maintaining equip-
ment, stocking supplies, and so forth.
Other branches of service submit similar budget
requests for O&M dollars. These budgets are for
operational and maintenance needs to maintain
the armed forces in a constant state of readiness.
From this O&M allocation, the commanding
officer finances command operations, including
the operation of the Command Religious Program.
LOGISTIC SUPPORT OF THE
COMMAND RELIGIOUS PROGRAM
Logistic support of the Command Religious
Program may include, but is not limited to, the
following areas:
. Contracting for music services, such as
organists and choir directors
. Purchasing literature for use in the Com-
mand Religious Program
. Purchasing multimedia equipment and
material for use in the Command Religious
Program
l Providing equipment, transportation, print-
ing, or other services to enable chaplains and
Religious Program Specialists to perform their
duties effectively
. Supporting the professional development
of chaplains in short-term training courses or
other training opportunities
BUDGETING
Budgeting is a forecasting process and pre-
sents a cumulative structure similar to the one
shown in figures 4-1 through 4-20. Commands
4-1
