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An example of a centrally managed allotment is
Navy payroll. Disbursing officers are the designated
officials for expending the funds, but they are not
limited in the amount they can legally expend.
Like allotments, FANs represent important
accounting data in many disbursing transactions. In the
following sections, we will describe how you, the senior
DK, will become involved with this important
information.
FUNCTIONAL ACCOUNT NUMBERS
FANs classify transactions according to the use for
which the transactions were made. They are used as
reference numbers to determine the content of certain
accounts used in various reports. The FANs themselves
will often not be evident in the accounting classification
code, but will appear as part of the cost code. In some
cases, the FAN will be used in some other element,
such as the bureau
permanent-change-of-station
data.
Cost Accounting Use
control number in
(PCS) travel accounting
As part of the functional account structure, the
FANs provide important cost accounting data. These
data are used in the cost analyses procedures necessary
for the administration and management of monies
provided through appropriations and funds. Generally,
the cost analysis data items provided by the functional
account structure are required so that the following
financial goals can be accomplished:
Effective administrative knowledge of the
purposes for which the appropriations and funds
are being used
Accumulation of detailed costs that in some
cases can be projected into determination of
future budget estimates
Preparation of statistical reports required by
Congress showing the purposes for which the
appropriations and funds were used
Cost information for use in determining the
effectiveness of the use of the appropriated funds
Comparison of the costs of performing work
among selected activities within the Naval
Establishment
Numbering Plan
Each functional account has been assigned a
five-digit number. The accounts are grouped under six
major headings. The first digit of each account number
designates the applicable major heading. The second
digit is combined with the first digit to designate a
secondary series of account numbers, which are
subdivisions of the major series of accounts. The
remaining three digits provide a further breakdown, by
purpose or type of expenditure, of the major and
secondary series of accounts. In the following
paragraphs, we will explain how these numbers work.
MAJOR SERIES.— The six major headings under
which all functional accounts are grouped and the
numbers assigned to each of these headings are as
follows:
10000 Naval vessels
40000 Ashore naval activities
50000 Stores
60000 Stores manufacturing and repair
70000 Military personnel pay, allowances,
and direct support expenses
90000 Miscellaneous, asset, liability,
income, and expense accounts
SECONDARY SERIES.— Many secondary
headings can be used to subdivide the six major
headings. The most familiar and most often used in
disbursing are the ones for the major series 70000.
Following are the secondary headings and assigned
numbers for this series:
71000
72000
73000
74000
75000
76000
77000
Pay and allowances
Outfitting (other than clothing
allowance in pay)
Subsistence
Transportation
Other military expenses
Training
Medical care and care of the dead
You have just read about the significance of
allotments and FANs and how they are used to identify
important data items in appropriation accounting. In
the following section, you will read about UICs and the
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