Types of Appropriation Accounts
Once an appropriation is passed, an appropriation
account is established to make amounts available for
expenditure and obligation from the Treasury.
Appropriation accounts include not only accounts to
which money is directly appropriated, but also
revolving funds, working funds, and trust funds.
(These funds will be discussed later.)
There are three types of appropriation accounts:
(1) open, (2) closed, and (3) successor.
OPEN APPROPRIATION ACCOUNT. An
open appropriation account is an account that has not
had the balance transferred to a successor account or to
surplus. The appropriation in the account may be
expired or unexpired.
CLOSED APPROPRIATION ACCOUNT. A
closed appropriation account is an account that has had
the balance transferred to a successor account or to
surplus. The appropriation in the account is lapsed.
SUCCESSOR ACCOUNT. A successor
account is an account established for the payment of
obligations applicable to appropriations for the same
general purposes, but which have either lapsed or been
discontinued. A successor account is available
indefinitely for the payment of obligations chargeable
to any of its predecessor accounts.
A fund, as used in connection with appropriations,
is a sum of money or other resources, usually
segregated, to be expended or used for specified
purposes. Funds differ from appropriations in that they
are usually permanent in nature and do not expire unless
they are revoked by Congress. Three types of funds are
commonly used by the Navy: (1) general, (2) trust, and
(3) revolving. In the following sections, lets take a
look at each of these funds.
The general fund of the Treasury is the fund into
which all receipts of the United States Government are
deposited, except those from specific sources required
by law to be deposited into other designated finds.
Appropriations from the general fund are made by
Congress to carry on the general and ordinary
operations of the government.
A trust fund is used to deposit amounts received or
appropriated and held in trust according to an agreement
or a legislative act. These amounts may only be used
or expended according to the terms of the trust or act.
An example of a trust fund is Ships Stores Profits, Navy
(SSPN). profits from the ships store are held in this
account and may only be used for authorized expenses
of the ships store and the welfare and recreation of
A revolving fund is established to finance a cycle
of operations to which reimbursements and collections
are returned for reuse in such a manner as to maintain
the principal of the fund. The amount of the fund may
be in the form of cash, inventory, receivables, or other
assets. An example of a revolving fund is the Navy
Stock Fund, which is used to purchase and maintain
stocks of common supply items required for the support
and operation of the Navy.
You have just read about appropriations and funds
and the basic roles they play in the Navys financial
management system. In the following sections, you will
read about accounting data. As a senior DK, you must
be able to understand how accounting data entries are
coded and identified and how the Navys accounting
classification code and other accounting components
help to provide a uniform system for accumulating,
identifying, reporting, and using important accounting
In the Navys financial management system, the
accounting classification code provides a uniform
system for accumulating and reporting a variety of
This code is shown on all
purchase requests as well as the resulting obligation and
exenditure documents. The accounting classification
code identifies the activity responsible for accounting
for the associated appropriation (or part of the
appropriation). It also assists in the forwarding of
copies of public voucher disbursements and elections
to the accountable activity for analysis of obligations
The detail required in a particular accounting
classification code may vary, depending on the
appropriation and type of transaction involved. An