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receipt accounts established by the Treasury
Department for collection of miscellaneous receipts.
Expenditure Category Codes for
Disbursements
The three-digit expenditure category code for a
disbursement provides the means of recording,
identifying, and assigning the dollar amounts paid by
the voucher to the Department of the Navy’s BOP report
submitted to the Office of the Secretary of Defense. The
expenditure category code must be recorded in the
Object Class block of the appropriation cost code.
Collection Source Codes
The application of a two-digit collection source
code on a collection voucher provides the means of
recording, identifying, and assigning the dollar amount
collected by the voucher to the appropriate line of the
Department of the Navy’s BOP report. Each collection
source code identifies the source of the collection that
must be credited to a specific appropriation, fund, or
receipt account.
Collection source codes must be
recorded in the Object Class block on the voucher.
Now that you have read about the important
components in the accounting classification codes and
how they are used in appropriation accounting
procedures, let’s take a look at some important reasons
you must monitor these codes for accuracy.
IMPORTANCE OF ACCURATE
ACCOUNTING DATA
The importance of ensuring the accuracy of
accounting data cannot be overemphasized. As you
have already read in this chapter, accurate accounting
for all monies is important for the management of the
Navy’s financial resources and for use in future budget
requests and their justification.
The payment of
obligations and the collection of funds involve more
than just preparing the check or taking the money and
processing the related paper work. To the extent
possible, disbursing personnel are also responsible for
ensuring the accounting classification code is correct.
When auditing financial documents, you must
remember that there are nine elements that make up the
complete accounting classification code. These nine
elements must be shown on all financial documents
before they are processed. Remember: It is from this
framework that auditing begins.
Since each transaction can be different, you must
determine the account to be charged or credited. You
should also know the nature of the transaction and who
is responsible for maintaining the account. By making
certain these data items are correct, you will help the
financial information processing center (FIPC) and
fund manager to compile and evaluate the applicable
cost data properly.
In each case, the accounting
elements must contain the correct number of digits or
characters. Whenever you are in doubt about the proper
entry, consult Volume 2 of the NAVCOMPT Manual.
SUMMARY
The use of accounting data is essential in the Navy.
Only through the proper use of accounting data can the
Navy effectively control and analyze the monies made
available by Congress. While the structure of
accounting data appears to be complex, it can be more
easily understood if, for each element of the accounting
classification code, you can determine its purpose and
how it fits into the overall scheme of appropriation
accounting.
Accurate accounting data and the timely
submission of these data to the proper authorities are
equally important to Navy financial managers. If you
set your goals to be both timely and accurate and to
respond to any inquiries promptly, the Navy’s financial
managers will be better able to do their jobs.
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