Potential impact of the elimination of the M Account on the Department of the Navy

Abstract

This thesis addresses the impact of Public Law 101-510, which eliminated the M Account, on financial management within the Department of the Navy. The M Account was established for the payment of prior year obligations from appropriations which had lapsed. The M Account process provides the necessary flexibility to Navy contract administrators and financial managers to manage resources related to the closure of prior year contracts. Public Law 101-510 was enacted in 1990 based on congressional concern over Department of Defense management of the M Account. This study examines this law and the impact this legislation will have on future financial decision-making in the Department of the Navy. The assessment focuses specifically on the Procurement and Operations and Maintenance appropriations for the Navy.