Chapter 4 Financial Management and Logistics

CHAPTER 4 FINANCIAL MANAGEMENT AND LOGISTICS A budget has been defined as “a statement of the financial position of an administration for a definite period of time based on estimates of expenditures during the period and proposals for financing them.” No business or activity could survive very long without planning, formulating, and adhering to some form of budget. The one source of income used to cover Command Reli- gious Program (CRP) expenses is appropriated funds. These funds are monitored through a care- fully programmed and prioritized spending plan. APPROPRIATED FUNDS Each year commands throughout the Navy submit their financial plan to Congress via the chain of command. Most allocations are planned for the Navy some 24 months in advance and are authorized for a controlled amount. Hence, each command within the Department of the Navy has a certain funding authorization approved by Congress each year for operations. These authori- zations are known as appropriated funds and are used to buy supplies and equipment, make repairs, and cover other costs for each command. OPERATIONS AND MAINTENANCE (NAVY) (O&M,N) While all operations and maintenance funds are distributed from government revenue and taxes, all funds are not authorized for the same purpose. Certain authorizations are for the Army, Navy, Air Force, and Marine Corps. After each branch of service receives an authorization, the authorized amount is distributed according to the needs reflected in the various budgets submitted. This type of appropriated fund is allocated to the Office of the Chief of Naval Operations each fiscal year and is used by each command having input to the Navy budget. (This is assuming all cumulative budgets for the entire Navy are fully funded.) The purpose of the allocation is to provide commanders the means to maintain their units in a continuous state of operational readiness throughout the fiscal year, with a spending plan to cover needs incurred in maintaining such readiness—buying equipment, maintaining equip- ment, stocking supplies, and so forth. Other branches of service submit similar budget requests for O&M dollars. These budgets are for operational and maintenance needs to maintain the armed forces in a constant state of readiness. From this O&M allocation, the commanding officer finances command operations, including the operation of the Command Religious Program. LOGISTIC SUPPORT OF THE COMMAND RELIGIOUS PROGRAM Logistic support of the Command Religious Program may include, but is not limited to, the following areas: . Contracting for music services, such as organists and choir directors . Purchasing literature for use in the Com- mand Religious Program . Purchasing multimedia equipment and material for use in the Command Religious Program l Providing equipment, transportation, print- ing, or other services to enable chaplains and Religious Program Specialists to perform their duties effectively . Supporting the professional development of chaplains in short-term training courses or other training opportunities BUDGETING Budgeting is a forecasting process and pre- sents a cumulative structure similar to the one shown in figures 4-1 through 4-20. Commands 4-1