applicable  budget  project.  This  numbering  system facilitates the classification of data contained in the accounting  register  used  for  posting  appropriation accounts  of  various  offices  and  commands. Budget  Projects The budget activities are divided into one or more projects  according  to  the  budget  approved  by  the Congress. To develop more detailed data essential to the  administration  and  control  of  appropriation,  budget projects may be further divided into subprojects. These subprojects  can  be  summarized  directly  into  the  related budget  project. Allotments All funds available within an appropriation account for  commitment  obligation  and  expenditure  are administered through the issuance of allotments. An allotment  is  an  authorization  granted  within  and according  to  an  appropriation  for  the  purpose  of incurrring  commitments,  obligations,  and  expenditures to  accomplish  an  approved  operating  budget. Therefore,  an  allotment  is  a  subdivision  of  an appropriation that provides the funding authority for an official  to  accomplish  a  specific  function  or  mission. FUNCTIONAL ACCOUNTS Generally,  fictional  accounts  classify  transactions according  to  the  end  use  or  purpose  for  which  the obligation,  expenditure,  or  collection  is  made.  This classification provides the standards of detail required in various reports and a code number reference for specifying  the  content  of  reports.  The  fictional account is composed of a 5-digit number. The first digit of the account number designates the major heading for the 6 major series of functional account numbers. For example,  1  designates  naval  vessels;  2  designates ashore naval activities; 5 designates stores; and so forth. The second digit of the functional account number is combined with the first digit to designate the applicable heading  for  the  secondary  series.  For  example,  51 designates  Navy  stock  account  (NSA)  and  52 designates  appropriation  purchases  account  (APA). Refer  to  chapter  4  of  DFAS-CL  (NAVSO  P)  1000.2M, for more information about functional accounts. OBJECT CLASS The object class is used in submitting a budget request to the Office of Management and Budget. It is also used in reporting data whenever an analysis by object class is required. This classification is based upon the nature of the services, articles, or other items for which funds are expended as distinguished from the purposes  for  which  such  expenditures  are  made.  This object class should be 000 unless the transaction affects the international balance of payment (see chapter 7 of DFAS-CL (NAVSO P) 1000.2M). UNIT  IDENTIFICATION CODES The unit identification codes (UICs) are used to identify  specific  ships,  air  organizations,  or  activities  to which an expenditure is chargeable as cost of plant, maintenance,  or  operation. PROPERTY CLASSES Property classes are used to segregate the records of plant property. They also provide data for analyzing the  cost  of  manufacturing  and  of  operating  some activities. This classification is a refinement of the object  classes. ACCOUNTING CLASSIFICATION CODES The accounting classification codes are also known as accounting data. They are made up of nine data elements. They are the appropriation, subhead, object class,   bureau   control   number,   suballotment, authorization accounting activity, transaction type, property  accounting  activity,  and  cost  code.  The accounting  classification  codes  are  required  on  all purchase   requests   and   resulting   obligations   and expenditure   documents. DEFINITIONS There are numerous terms and phrases that relate to funding,   accounting,   and   reporting.   A   thorough understanding  of  these  terms  will  help  you  understand the financial management functions. The following terms  are  used  in  financial  management  functions: 6-2