applicable budget project. This numbering system
facilitates the classification of data contained in the
accounting register used for posting appropriation
accounts of various offices and commands.
Budget Projects
The budget activities are divided into one or more
projects according to the budget approved by the
Congress. To develop more detailed data essential to
the administration and control of appropriation, budget
projects may be further divided into subprojects. These
subprojects can be summarized directly into the related
budget project.
Allotments
All funds available within an appropriation account
for commitment obligation and expenditure are
administered through the issuance of allotments. An
allotment is an authorization granted within and
according to an appropriation for the purpose of
incurrring commitments, obligations, and expenditures
to accomplish an approved operating budget.
Therefore, an allotment is a subdivision of an
appropriation that provides the funding authority for an
official to accomplish a specific function or mission.
FUNCTIONAL ACCOUNTS
Generally, fictional accounts classify transactions
according to the end use or purpose for which the
obligation, expenditure, or collection is made. This
classification provides the standards of detail required
in various reports and a code number reference for
specifying the content of reports. The fictional
account is composed of a 5-digit number. The first digit
of the account number designates the major heading for
the 6 major series of functional account numbers. For
example, 1 designates naval vessels; 2 designates
ashore naval activities; 5 designates stores; and so forth.
The second digit of the functional account number is
combined with the first digit to designate the applicable
heading for the secondary series. For example, 51
designates Navy stock account (NSA) and 52
designates appropriation purchases account (APA).
Refer to chapter 4 of DFAS-CL (NAVSO P) 1000.2M,
for more information about functional accounts.
OBJECT CLASS
The object class is used in submitting a budget
request to the Office of Management and Budget. It is
also used in reporting data whenever an analysis by
object class is required. This classification is based
upon the nature of the services, articles, or other items
for which funds are expended as distinguished from the
purposes for which such expenditures are made. This
object class should be 000 unless the transaction affects
the international balance of payment (see chapter 7 of
DFAS-CL (NAVSO P) 1000.2M).
UNIT IDENTIFICATION
CODES
The unit identification codes (UICs) are used to
identify specific ships, air organizations, or activities to
which an expenditure is chargeable as cost of plant,
maintenance, or operation.
PROPERTY CLASSES
Property classes are used to segregate the records
of plant property. They also provide data for analyzing
the cost of manufacturing and of operating some
activities. This classification is a refinement of the
object classes.
ACCOUNTING CLASSIFICATION
CODES
The accounting classification codes are also known
as accounting data. They are made up of nine data
elements. They are the appropriation, subhead, object
class, bureau control number, suballotment,
authorization accounting activity, transaction type,
property accounting activity, and cost code. The
accounting classification codes are required on all
purchase requests and resulting obligations and
expenditure documents.
DEFINITIONS
There are numerous terms and phrases that relate to
funding, accounting, and reporting. A thorough
understanding of these terms will help you understand
the financial management functions. The following
terms are used in financial management functions:
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