ACCOUNTING PERIOD
Continuing appropriations become available for
obligation and expenditure at the beginning of the
The accounting period of the Navy is the fiscal
fiscal year following the passage of the appropriation
year. fiscal year differs from the calendar year in that it
act. They may become immediately available if
begins on 1 October and ends on the following 30
specified in the act. When the purpose of a continuing
September. The fiscal year is designated by the
appropriation has been accomplished, the balance
calendar year in which it ends. Thus, fiscal year 2000
equal to the total of unliquidated obligations, less the
began on 1 October 1999 and ended on 30 September
total of reimbursements to be collected, is transferred
2000.
to the successor "M" account. Any remaining
unobligated balance is transferred to the surplus of the
TYPES OF APPROPRIATIONS
Treasury.
Three types of appropriations may be used in the
Multiple-Year Appropriations
Navy, depending upon the purpose for which they are
issued. Most appropriations are for 1 fiscal year and are
Multiple-year appropriations are generally made
used to finance the normal operating costs of the Navy.
for purposes that require long lead-time of planning
Other types may be granted without a time limitation or
and execution such as procurement of Aircraft and
for a specific period of time that is more than 1 year.
Missiles Navy and Shipbuilding and Conversion Navy.
Multiple-year appropriations become available for
Annual Appropriations
obligation and expenditure at the beginning of the
fiscal year designated in the appropriation act unless
Annual appropriations generally cover the current
otherwise stated in the act. They are available for
operating and maintenance expenses of the Navy. They
incurring obligations only during the fiscal years
become available at the beginning of the fiscal year
specified in the act. However, they are available for the
stated in the appropriation act. From that time on
payment of such obligations for an additional 2 years
throughout the fiscal year, they may be either directly
thereafter.
expended or obligated. An obligation occurs when an
order is placed by an afloat unit or material is issued to
At the end of the last fiscal year included in the
an ashore activity, or similar transactions during a
appropriation, the appropriation expires for obligation
given period that requires future payments.
purposes. The unobligated balance is transferred to the
surplus of the Treasury. At the end of the 2 years
After the end of the fiscal year, the Navy must
following the expiration of obligation availability, the
return any unobligated balance to the Treasury.
balance remaining in the account, representing
Obligated funds remain available for an additional 2
unliquidated obligations less reimbursements to be
years. At the end of the additional 2-year period, the
collected, is transferred to the successor "M" account.
balance remaining in the account is transferred to the
successor "M" account. These funds represent
STATUS OF APPROPRIATIONS
unliquidated obligations less reimbursement to be
collected. The successor "M" account is available for
Three terms are used to designate the status of
disbursement of appropriated funds.
appropriations.
CURRENT APPROPRIATION--An appropriation
Continuing Appropriations
that is available for incurring obligations during the
An appropriation is available for incurring
current fiscal year.
obligations until the appropriation is exhausted or until
EXPIRED APPROPRIATION--An appropriation
the purpose for which the appropriation was made is
that is no longer available for incurring obligations. It
accomplished. An appropriation without restriction to
does remain available to liquidate existing obligations.
a freed period is called a continuing appropriation or a
LAPSED APPROPRIATION--The undisbursed
no-year appropriation. Examples of continuing
balance of an appropriation. It is no longer available
appropriations are Military Construction Navy and
for disbursement by the department and is called a
revolving funds such as the Defense Business
lapsed appropriation.
Operating Fund.
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