When a ship submits a requisition and the materialis issued, the NSA is reduced. The cost of the issue ischarged to the ship’s OPTAR and credited to the NSF,which may then use the money to procure replacementinventory.The Appropriations Purchases Account (APA) isanother inventory account that is used extensively. APAmaterial has been purchased with appropriated findsand is held in store awaiting issue. It is usually used formajor items such as NAVSEA controlled testequipment. When this material is requisitioned by theship, the OPTAR is not reduced since the material hasalready been charged to end use. A statistical charge ismade to help show the total operating cost within theNavy.FUND CODESUnder current accounting procedures, operatingcosts are accumulated according to the purpose or typeof expenditure and are identified by fund codes. Thetype commander designates the fund codes each shipmay use and the circumstances under which they maybe used. Generally, those fund codes identifyexpenditures for equipage, repair parts, consumables,and services. The OPTAR grant may specify limits foreach of these categories. Assign fund codes carefully onthe NAVSUP 1250 (discussed earlier) to preventincorrect changes to these categories.DEPARTMENTAL BUDGETSCommanding officers distribute their OPTAR fundsin different ways, but one of the most effective ways isto assign department budgets. When departments havebudgets, the supply officer maintains budget recordswith the OPTAR funds records. The supply officermakes 10-day reports to the commanding officer on thestatus of the OPTAR funds and the department budgets,with a copy to each department. The pink copy of eachNAVSUP 1250, which has been processed by supplyand charged to the engineering department budgetduring the preceding week, is included with thedepartmental copy of the budget report. This helps theengineer officer reconcile the department record withsupply records.Engineer officers may or may not keep departmentbudget or expense records. If not, they will normallydepend on the periodic reports of expenditures andbalances issued by the supply officer. However,departmental records can be quite useful. For onereason, Navy directives call for periodic validation ofoutstanding requisitions to justify the continueddemand. You’ll need accurate records of thoserequisitions when the time comes. Figure 5-14illustrates one type of record used to control departmentspending.Figure 5-14.-A sample expenditure record for the engineering department.5-25
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