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MAINTENANCE OF PUBLICATIONS AND INSTRUCTIONS
BACKGROUND - 14016_38

Aviation Storekeeper 2 - Aviation theories and other practices - index
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CHAPTER 2 FINANCIAL MANAGEMENT OF RESOURCES Each year the Navy must have billions of dollars to carry out its mission. This money comes from the taxpayers of the United States as determined by Congress. The Navy must keep accounts to show how the money is spent. The accounts show the receipt and expenditure of public funds; the amount of government money, materials, and property on hand; and the cost of all operations, broken down by projects and programs. All these functions are part of financial management. Financial manage- ment is necessary to guarantee that government property and money are economically used in the public interest. Cost data assembled by projects and programs are used for budget planning and justification. Although as an Aviation Storekeeper (AK), you are not an accountant or bookkeeper, you will often account for large amounts of public funds in the form of materials and stores. You are also involved in the preparation and process- ing of requisitions that constitute an expenditure of public funds. In addition, in keeping ship’s operating target (OPTAR) records and submitting required reports, you are accounting for public funds. Accounting for material and accounting for cash are basically the same. All government accounting is performed with the objective of guaranteeing that expenditures are made accord- ing to the desires expressed by Congress when the program was approved and the funds appropriated. According to this objective, records must be kept so that transactions can be examined at a later date and reconstruction of events made. Also within this objective, the disposition of funds and material must be provable. The logic of this recordkeeping is easy to understand if you have some knowledge of the overall financial operation of the government. RESOURCE MANAGEMENT SYSTEM The resource management system (RMS) is a series of systems designed to promote better management procedures throughout the Depart- ment of Defense (DOD) by providing managers with improved methods of obtaining and con- trolling resources required to accomplish the assigned missions. A resource manager is any individual, either military or civilian, who is accountable and responsible for carrying out a significant mission or function and who makes decisions that will have a significant effect on the resources used. As an AK you have daily contact with some aspect of the RMS. An understanding of the background, objectives, and terms used will provide you with a clearer picture of the system. The following paragraphs contain some RMS definitions and information about the background and objectives applicable to all activities within the DOD. DEFINITIONS For a better understanding of the RMS, take a look at the following definitions of terms used throughout the AK community. Accrual accounting is the method used where operating costs are accounted for in the fiscal (accounting) period during which the costs of resources consumed or applied are received. Aviation Operating Forces include aviation squadrons, units, staffs, and ships supporting air- craft (for aviation funds only) assigned to the fleet accounting and disbursing centers (FAADCs) for accounting purposes. Expense element codes are codes established by DOD to classify expenses for cost accounting and reporting purposes. They are listed and defined in the Navy Comptroller (NAVCOMPT) Manual, volume 2, chapter 4. 2-1







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