ACCOUNTING AND REPORTING
The OPTAR accounting and reporting
procedures are contained in the NAVSO P-3013-2,
categorized by the types of funding or funding
levels. The intent of these procedures is to make
sure the accounting and reporting performed by
the Operating Forces will require only the
minimum of effort and complexity necessary to
meet the requirements of higher authority.
All funds are accounted for over a full 3-year
cycle. This 3-year period consists of the current
fiscal year (from October through September) and
the 2 previous years. The year before the current
fiscal or OPTAR year is called prior year 1 and
the year before prior year 1 is known as prior year
2. Although full OPTAR and appropriation fund
accounting is done over this 3-year period, the
frequency and extent of operating force OPTAR
holder involvement become less in the latter part
of this 3-year time frame. Generally, the operating
force OPTAR holders receive and process
OPTAR holder listings monthly for the first 2
years and quarterly thereafter. The financial
reports (listings) sent to OPTAR holders are
explained later in this chapter.
The TYCOM, as the expense limitation
holder, is legally liable for the proper expenditure
of funds granted to them by higher authority. The
two principal legal statutes that are involved are
31 U.S. CODE 1517Deals with irregularities
in funds administration and states that when
operating budgets (TYCOM level) are
the individual personally
responsible for the violation should be identified
and, if warranted, punished.
31 U.S. CODE 1301A violation of this
statute occurs when funds are spent on items other
than those for which the funds were appropriated.
When this violation occurs, the financial records
must be corrected and that can or may result in
violation of U.S. Code 1517.
Additional TYCOM responsibilities in
administering funds include equitably evaluating
requirements and distribution of funds
responsibly and, also, effectively monitoring the
management of funds within the type command
and developing justification to support request to
the FLTCOM for additional funds.
Immediate Unit Commander
Group and squadron commanders are respon-
sible to TYCOMs for the proper management of
funds granted for support of their own staffs.
They are also responsible for the proper
management and expenditure of funds granted by
TYCOMs directly to ships and units under their
command. So, the commanding officers must be
aware of their units requirements and manage-
ment effectiveness. The commanding officers
must make sure of consistent application of
published policy and procedures for financial
management of funds and policy. The com-
manding officers are to take action as necessary
to keep the TYCOMs fully informed about the
readiness of the ships and units as affected by
funding policies and grants.
Commanding officers are responsible for the
proper use of funds allocated to their ships or
Proper use of funds requires that
expenditures be made consistent with the objective
of maximum readiness of their ships or units.
Commanding officers must make sure funding
policies and procedures are implemented per
TYCOM instructions and any related directives.
If the commanding officers detect any deviation
from established policies, it should be corrected
and adequately reviewed to make sure no potential
fraud, waste, or abuse of government funds or
material has occurred. Also, overobligation of
funds granted by TYCOMs is not permitted
except where authorized by TYCOM instructions.
In carrying out his or her responsibilities for
sound financial management, the commanding
officer will make sure the ship or unit has a sound
annual financial management plan. He or she will
review the monthly reports and make sure there
is no needless abuse or waste of ships money.
As the commanding officers senior managers,
department heads are key elements in the
development and execution of the command
financial management plan. Constant vigilance is