the divisional budget, divisional goals and
objectives, and different types of budgeting.
THE BUDGET PROCESS
The budget process starts when the President
submits his budget to Congress in mid-January.
Congress can accept the budget as is, or make
changes to the budget through a series of Con-
gressional committees. Congress develops a
budget resolution or an outline of the budget with
spending targets set. Next, Congress passes an
authorization bill which gives authorization to the
various programs in the budget. Still, no money
has been allocated. Money is allocated by the
appropriations bill. The appropriations bill gives
money to the various programs authorized under
the authorizations bill. Once given both authoriza-
tion and appropriations, the Navy can begin to
spend money. Sometimes Congress will authorize
a program but not provide appropriations.
Congress can also provide appropriations but not
authorize the program. The Navy’s A-6F Intruder
is an example of a program that was appropriated
but not authorized.
The next step in the budget process is called
execution. Execution is when the Navy can actually
spend money. During execution, apportionment
takes place. Apportionment is when the Office of
Management and Budget (OMB) places the Con-
gressionally appropriated funds into the Navy’s
account. See figure 4-1 for the fund flow of the
operation and maintenance account.
The cost center or operating target (OPTAR)
holder at the bottom of figure 4-1 is your ship,
squadron, or unit. Your commanding officer is
responsible for ensuring the OPTAR is met. He
also must make periodic reports to the type
commander showing the status of the ship or unit
funds.
The Navy recognizes that commanding
officers need help in administering their budget.
Comptrollers or budget administrators, depending
on the size of the command, are assigned to assist
Figure 4-1.-Fund flow for operation and maintenance.
4-2
