Closed Account Adjustment

The CLOSED ACCOUNT ADJUSTMENT program, detailed under Line Item 9900AZ9999 in the Army's Aircraft Procurement budget, serves a specialized financial management function rather than a procurement or research objective. This line item is utilized to process transactions associated with closed or expired fiscal year accounts, ensuring that any necessary adjustments to prior appropriations are accurately recorded and reconciled. The program is managed by the Army and falls under Budget Activity 04: Support Equipment and Facilities, specifically within the sub-activity for Other Support.

The primary goal of the CLOSED ACCOUNT ADJUSTMENT is to maintain the integrity of the Army's financial records by addressing residual obligations, corrections, or reconciliations that arise after an account has officially closed. This process is essential for compliance with federal financial regulations and for supporting accurate reporting to oversight agencies such as the Department of Defense Comptroller and the Government Accountability Office.

By ensuring that expired year transactions are properly handled, the Army can avoid audit discrepancies and maintain transparency in its budget execution. Unlike typical procurement or research and development line items, the CLOSED ACCOUNT ADJUSTMENT does not fund the acquisition of equipment, systems, or services. Instead, it is used exclusively for financial adjustments related to previous years' appropriations. If an obligation or payment needs to be corrected after the fiscal year has ended and the account has closed, this line item provides the mechanism for making that adjustment within the Army's accounting system.

Budget documentation indicates minimal recent activity, with no funding requested for FY 2026 or beyond, reflecting the ad hoc nature of this line item. Funding levels are driven by the occurrence of closed account transactions rather than planned programmatic activity, and as such, the amounts can vary significantly from year to year.

There are no associated procurement quantities, weapon system costs, or initial spares tied to the CLOSED ACCOUNT ADJUSTMENT line item. The absence of these typical budgetary metrics underscores its role as a financial management tool rather than a program supporting operational capabilities. The line item does not contribute directly to Army readiness or modernization, but it is vital for ensuring the accuracy and completeness of the Army's financial records.

Justification for the existence of the CLOSED ACCOUNT ADJUSTMENT line item centers on compliance with federal appropriations law and sound financial stewardship. The Army must have a mechanism to address adjustments that arise after accounts have expired, and this line item provides that capability. The documentation for FY 2026 explicitly notes that AZ9999 has no funding, indicating that no closed account adjustments are anticipated for that year, but the line item remains available should the need arise in future cycles.