UNOBLIGATED BALANCES Unobligated balances in the Navy are the dollar resources required for the "full funding" of essential segments of approved programs which have not developed to the status requiring their utilization. Included in this category are funds for the completion of ships, the procurement of short leadtime items, spare parts, and engineering changes. To the extent that program adjustments generate unprogramed funds during 1 fiscal year, these resources are applied as reductions to our next year's budget requests. Exhibit 7 provides three tables to show the unobligated balances in the general accounts, by functional title, from the start of fiscal year 1960 and as projected to the close of fiscal year 1962. Here, we see the flow of funds for each of the 3 years. It will be noted that the unobligated balances at the start of fiscal year 1960 amounted to almost $3 billion and that the unobligated balances have decreased each year. They are projected at $2.4 billion at the end of fiscal year 1961 and $1.8 billion by the close of fiscal year 1962. Procurement accounts for 94 percent of the total unobligated balance. A more detailed analysis of the unobligated balances of the procurement and research appropriations is shown in exhibit 8. This exhibit breaks the total of the unobligated balances between committed and uncommitted funds and between programed and unprogramed funds. The programed balances in the procurement accounts are further analyzed by purpose, to show their intended use. From this exhibit, it can be seen that all but a small amount of these balances were programed at the end of fiscal year 1960 and at the end of fiscal year 1961. It is important to note that the $296 million in unprogramed funds at the end of fiscal year 1961 have been applied as a reduction to the fiscal year 1962 requests. There are no unpro gramed funds at the end of fiscal year 1962. STATUS OF APPORTIONMENTS An analysis of the availability of funds and the apportionment o these funds in the general accounts as of January 16, 1961, is provided by exhibit 9. The apportionment plan for fiscal year 1961 totaled $14.6 billion As of January 16, the Navy had requested the apportionment o $14.2 billion. All of this amount has been apportioned with mino exceptions. The remainder of the funds in the fiscal year 1961 appor tionment plan will be requested during the last half of the year as the are required to implement approved programs. CONCLUSION Before concluding my statement I would like to touch briefly on the matter of limitations. I am hopeful that after reviewing our fiscal year 1962 budget request the Congress will not find it necessary to include language and dollar limitations on such items as travel and departmental administration. I believe that in most cases Congress will not find it necessary to resort to limitations of this type if we can do a better job of informing the Congress of our problems and our plans for corrective action in those areas where the need for improvement has been indicated. We are most anxious to aid you in understanding our problems and will welcome the opportunity to amplify our position in those areas where you consider we have not stated our case clearly. This completes my statement. I will endeavor to answer your questions and provide any additional information you may need from the Department of the Navy. (The exhibits referred to above follow:) EXHIBIT 1 Comparison of new obligational availability, direct obligations, and net expenditures by appropriation title with adjustments by functional title to reflect comparability with current budget structure includes fiscal year 1961 supplemental appropriation requests—fiscal years 1960, 1961, and 1962 (adjusted) [In thousands of dollars] New obligational availability Direct obligations Net expenditures Functional title and appropriation title Fiscal year Fiscal year Fiscal year Fiscal year Fiscal year Fiscal year Fiscal year Fiscal year Fiscal year 1960 1961 1962 1960 1961 1962 1960 1961 1962 Total, adjusted for comparability ture Research, development, test, and evaluation, Navy. Adjustment to reflect comparability with current budget struc 4, 944, 000 1,356,000 5, 169, 000 1,253,000 +245, 017 Total adjusted for comparability 1,311, 541 1,209, 419 1,267, 000 +261, 398 1,297, 850 1,356,000 1,253,000 4, 414, 307 766, 532 +362, 202 1, 128, 734 -84, 218 4,342, 782 161,000 1,070,000 150,000 4, 572,000 -19, 627 4,552, 373 1,249,000 +65, 523 1,314, 523 Adjustment to reflect comparability with current budget structure. -657 -859, 075 -78, 542 12, 388, 510 12, 601, 000 11, 354, 343 +35 -57, 340 -62, 500 11, 526, 000 11, 884, 500 11, 155, 997 12, 293, 685 12,036, 000 11, 486, 096 12,388, 545 12, 601, 000 11, 354, 343 11, 526,000 Military construction, Naval Reserve.. Total military construction.. 11, 884, 500 185,000 APPROVED BUDGET ADJUSTMENT FOR ACCELERATION OF FISCAL YEAR 1961 POLARIS PROGRAM 1 Comparative transfers in connection with the transfer of Kansas City and St. Louis Records Centers to General Services Administration are shown under both Department of Defense and General Services Administration appropriations in the budget document. However, ther is no provision for showing related comparability adjustments of the General Services Administration estimates of new obligational authority and expenditures and consequently, none can be shown for the Department of the Navy. 2 In the absence of a contra account, there is no provision for showing comparability adjustments to new obligational authority and expenditures. 12, 237, 000 11,727, 715 12, 578, 510 12, 802, 000 11, 641, 550 11,765,000 12,078,000 |