FUND CODES

When a ship submits a requisition and the material is issued, the NSA is reduced. The cost of the issue is charged to the ship’s OPTAR and credited to the NSF, which may then use the money to procure replacement inventory. The Appropriations Purchases Account (APA) is another inventory account that is used extensively. APA material has been purchased with appropriated finds and is held in store awaiting issue. It is usually used for major items such as NAVSEA controlled test equipment. When this material is requisitioned by the ship, the OPTAR is not reduced since the material has already been charged to end use. A statistical charge is made to help show the total operating cost within the Navy. FUND CODES Under current accounting procedures, operating costs are accumulated according to the purpose or type of expenditure and are identified by fund codes. The type commander designates the fund codes each ship may use and the circumstances under which they may be used. Generally, those fund codes identify expenditures for equipage, repair parts, consumables, and services. The OPTAR grant may specify limits for each of these categories. Assign fund codes carefully on the NAVSUP 1250 (discussed earlier) to prevent incorrect changes to these categories. DEPARTMENTAL BUDGETS Commanding officers distribute their OPTAR funds in different ways, but one of the most effective ways is to assign department budgets. When departments have budgets, the supply officer maintains budget records with the OPTAR funds records. The supply officer makes 10-day reports to the commanding officer on the status of the OPTAR funds and the department budgets, with a copy to each department. The pink copy of each NAVSUP 1250, which has been processed by supply and charged to the engineering department budget during the preceding week, is included with the departmental copy of the budget report. This helps the engineer officer reconcile the department record with supply records. Engineer officers may or may not keep department budget or expense records. If not, they will normally depend on the periodic reports of expenditures and balances issued by the supply officer. However, departmental records can be quite useful. For one reason, Navy directives call for periodic validation of outstanding requisitions to justify the continued demand. You’ll need accurate records of those requisitions when the time comes. Figure 5-14 illustrates one type of record used to control department spending. Figure 5-14.-A sample expenditure record for the engineering department. 5-25