You should know the costs of the various types of jobs your division performs. You should weigh these costs against the importance of the various jobs in helping the command accomplish its mission. Once you have done that, you can identify those jobs which give the command its greatest return on investment. At the same time, you can tag those less vital jobs that contribute little or nothing to mission accomplishment. You may find they could be handled in a more cost-effective way or perhaps shouldn’t be done at all. ACTIVITY-LEVEL BUDGETING Cost  estimates  to  meet  activity-level  budget requirements for nonconsumable resources (such as major procurement items) are developed by a cognizant headquarters under its budget system. Operating budgets (OBs) provide the plans against which commands can measure performance, analyze variances, and make adjustments, as necessary. By using the OBs, commands can assure effective, efficient management of resources at the local level. OBs are a major tool for obtaining, managing, and accounting for resources for operating commands, units, and divisions. Large Activity Budgets Budgeting is usually decentralized at large naval activities. At a large activity, the CO usually asks the various components of the command to develop their own operating budget estimates and supporting data. The CO provides guidelines based on guidance received through command channels and the projection of local program and workload objectives. The guidelines include actions required of each station component in the formulation, summarization, coordination, and review processes and the schedule of completion for these actions. The guidelines also include information on specific budget procedures and the approved flow of budget data from the point of origin to the review levels. The CO may appoint a planning board or committee to assist in the overall planning, coordination, and review of the budget. This board or committee is composed  of  the  activity’s  principal  management officials and comptroller. Budget responsibilities at a large activity are usually divided between the station’s operating departments and the  financial  (comptroller)  staff.  This  division  of responsibilities prevents duplication of effort and provides for a smooth formulation process as follows: OPERATING  DEPARTMENTS.  Operating departments have authority and responsibility for program accomplishment, performance standards, and work schedules. They are responsible for preparing the initial budget estimates for their departments, reviewing intradepartmental (divisional) estimates, and justifying their budgets to the CO. COMPTROLLER  STAFF.  Members  of  the comptroller’s staff are available for technical guidance on budgeting matters. They recommend budget procedures and schedules and provide procedural and analytical assistance to the heads of operating departments. They review and recommend adjustments in completed departmental estimates to arrive at a balanced station budget and assist in the CO’s review as requested. The comptroller’s staff also prepares the budget in finished form for submission to higher review levels. Small Activity Budgets The comptroller or budget office of a small activity may develop its entire budget estimate with assistance from operating personnel as required. The activity must inform key station officials of guidance received, pertinent station policy, scheduling, and other applicable planning data. Most activities use simple and direct procedures to inform these officials. Some commanding officers, for example, present such information at regular  staff  meetings.  They  provide  handouts containing essential information to be retained by personnel for reference as needed. The staff then asks questions and discusses the information to clarify budgetary issues. In developing estimates for a small activity’s organizational subdivisions and assigned functions, the comptroller consults responsible people in these areas. By doing that, the comptroller ensures the data used reflects  realistic  forecasts  of  workloads  and requirements in relation to overall command plans and guidance received. When completed, estimates are reviewed by the commanding officer, who has final responsibility for their validity and for defending them to higher authority. Following any adjustments made by the commanding officer, the comptroller combines the estimates into a single budget request for submission to higher commands. 6-12