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Page Title: Types of Appropriation Accounts
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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. FUNDS 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, let’s take a look at each of these funds. General Fund 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. Trust Fund 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 Ship’s Stores Profits, Navy (SSPN). profits from the ship’s store are held in this account and may only be used for authorized expenses of the ship’s store and the welfare and recreation of Navy personnel. Revolving  Fund 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 Navy’s 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 Navy’s accounting classification code and other accounting components help to provide a uniform system for accumulating, identifying, reporting, and using important accounting information. ACCOUNTING CLASSIFICATION CODE In the Navy’s financial management system, the accounting  classification  code  provides  a  uniform system for accumulating and reporting a variety of accounting   information. 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 and  expenditures. The  detail  required  in  a  particular  accounting classification  code  may  vary,  depending  on  the appropriation and type of transaction involved. An 2-3

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