CHAPTER 3
OPERATING TARGETS
Supply functions and inventory procedures
were covered in the preceding chapter. This
chapter will be devoted to explaining how the
Navy gets its money, the system used to account
for it, and the part that the Command Religious
Program (CRP) plays in utilizing its portion of
the command’s budget.
Each year the Navy must have billions of
dollars to carry out its mission and this money
comes from the taxpayers of the United States as
determined by Congress. Therefore, the Navy
must keep detailed accounts to show the receipt
and expenditure of public funds; the amount of
Government money, materials, and property on
hand; and, the cost of all operations. These ac-
counts are broken down by projects, programs,
and various other functional categories. All of
these categories are a part of financial manage-
ment and are necessary to ensure that Govern-
ment property and money are used economically
in the public interest.
The Religious Program Specialist (RP) needs
to become familiar with various budgeting and
accounting procedures in order to assist the
command chaplain in utilizing that portion of
the budget which is allocated to the CRP.
APPROPRIATIONS
An appropriation is an authorization by an
Act of Congress to incur obligations for a
specified time and purpose, and to make
payments out of the Treasury of the United
States. It is in this manner that the Navy receives
money to pay for ships and the cost of their
operation and maintenance; the cost of training
and paying the personnel who operate them;
and, the money to operate the shore establish-
ment needed to support the fleet.
As previously stated, the Navy must keep
detailed accounts to show the receipt and ex-
penditure of public funds. This is accomplished
by observing a yearly accounting cycle. The ac-
counting period for the Navy is the fiscal year
which differs from the calendar year in that it
begins on 1 October and ends the following 30
September. Thus, fiscal year 1980 began on
1 October 1979 and ended on 30 September
1980.
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
year and are used to finance the normal
operating costs of the Navy. Other types may be
granted without a time limitation or for a
specific period of time of more than 1 year’s
duration. RPs will normally work with ap-
propriations which are for 1 year only. The next
few sections will be devoted to explaining the
three types of appropriations.
Annual Appropriation
An annual appropriation, which is of
primary concern to the RP, generally covers the
current operating and maintenance expenses of
the Navy. This appropriation becomes available
at the beginning of the fiscal year stated in the
appropriation act. Once the act is passed, funds
may be either directly expended or obligated
throughout the fiscal year.
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