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.
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