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Storekeeper 3 & 2 - Manual for watching over inventory and other things needed in a store
Annual Appropriations
CHAPTER 9 ACCOUNTING CLASSIFICATIONS Each year the Navy must have billions of dollars to carry out its mission. This  money  comes  from  the taxpayers of the United States as determined by the Congress. The  Navy  must  keep  accounts  to  show  the  receipt and expenditure of public funds. Also for the amount of  government  money,  materials,  and  property  on  hand, and  the  cost  of  all  operations.  These  accounts  are broken   down   by   projects,   programs,   and   other functional/subfunctional   categories   (i.e.,   budget classification, expense element, cost account codes, and object classes). All these function as part of financial management, which is necessary to make sure that government property and money are economically used in the public interest. Cost data assembled by the above methods  are  used  for  budget  planning  and  justification. This  chapter  explains  how  the  Navy  gets  its  money, and the procedures used to account for it. As a Storekeeper, you need to know the types of accounting and their uses in the Navy. They are: APPROPRIATION    ACCOUNTING—tells    how much money has been spent, how much is obligated, and how much is available under each appropriation or subdivision (e.g., operating budget). Thus, the Navy controls expenditures to keep them within the monetary limits established by the appropriation act. COST  ACCOUNTING-through  which  the  Navy can accumulate all costs according to activity or unit, purpose, and type of expenditure. INVENTORY   (STORES)   ACCOUNTING— which  is  used  to  maintain  records  of  material  and supplies   on   hand. These   records   provide   the information  necessary  to  prepare  returns  or  reports. PLANT  PROPERTY  ACCOUNTING—which  is used  to  maintain  records  of  all  Navy-owned  or Navy-controlled  real  property  and  equipment  of  a capital nature ashore. PAYROLL   ACCOUNTING—which   is   used   to maintain  records  of  payments  to  civilian  and  military personnel of the Navy. For   accounting   purposes,   Navy   activities   are designated  either  shore  activities  or  operating  forces. As a general rule, shore activities perform all of the accounting functions listed above. In the interest of economy,  large  shore  activities  frequently  perform some of these functions for the smaller activities. If accounting is to be performed accurately, the correct accounting classifications must be assigned by the Originator of any document This could be your job. The Navy expends money from one of two major classifications, appropriations or funds. This chapter explains the purpose and use of the two classifications so  that  you  have  some  understanding  of  what appropriations  and  funds  are,  and  the  difference between  them. The  accounting  performed  to  control  expenditures is  covered  in  another  chapter. 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. It is in this form that the Navy receives money to pay for ships and the cost of their operation and maintenance. It also covers the cost of training, the pay for those who operate  them,  and  the  money  to  operate  the  shore establishment  that  supports  the  fleet. ACCOUNTING PERIOD The  accounting  period  of  the  Navy  is  the  fiscal year. Fiscal year differs from the calendar year in that it begins on 1 October and ends on the following 30 September.  The  fiscal  year  is  designated  by  the calendar year in which it ends. Thus, Fiscal Year 1996 began  on  1  October  1995  and  ended  on  30  September 1996. TYPES OF APPROPRIATIONS Three types of appropriations maybe used in the Navy,  depending  upon  the  purpose  for  which  they  are issued. Most appropriations are for 1 fiscal 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 which is more than 1 year. 9-1

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