Closed Account Adjustments

The CLOSED ACCOUNT ADJUSTMENTS program, represented by Line Item 9900MA9999 in the Army's Other Procurement budget, is designed to address financial transactions related to closed or expired fiscal year accounts. This line item is not associated with the procurement of equipment, research, or development activities. Instead, it serves an administrative and financial management function within the Department of Defense (DoD) budgeting process. The primary goal is to ensure accurate accounting and reconciliation of obligations and expenditures that pertain to prior years, specifically those accounts that have officially expired and are no longer active for new obligations.

The objectives of CLOSED ACCOUNT ADJUSTMENTS include processing adjustments, corrections, and reconciliations for transactions that were not finalized before the closure of the original budget accounts. These adjustments may involve resolving discrepancies, correcting accounting errors, or addressing outstanding obligations identified after the fiscal year ended. The Army utilizes this mechanism to maintain compliance with federal financial management regulations and to ensure that all appropriated funds are properly accounted for, even after the expiration of the original budget authority.

This line item is categorized under Appropriation 2035A: Other Procurement, Army, within Budget Activity 03: Other Support Equipment and Budget Sub Activity 90: Other Support Equipment. The inclusion in these categories reflects the administrative nature of the transactions, which are not tied to specific weapon systems or procurement quantities. Instead, they relate to the financial closure and adjustment of prior year accounts. The program does not have associated Program Elements, MDAP/MAIS codes, or procurement quantities, further indicating its role as a financial adjustment tool rather than a procurement or research initiative.

For Fiscal Year 2024, the resource summary indicates funding for closed account adjustments, with a significantly reduced amount in Fiscal Year 2025. There is no funding requested for Fiscal Year 2026 and beyond, as noted in the justification statement. This pattern reflects the sporadic and as-needed nature of closed account adjustments, which are only funded when specific transactions require resolution. The absence of ongoing or future funding requests suggests that the Army does not anticipate significant closed account adjustments in the upcoming fiscal years.

The justification for the CLOSED ACCOUNT ADJUSTMENTS line item is rooted in the need for sound financial stewardship and compliance with federal laws governing expired appropriations. When transactions from prior years are discovered or require correction, this line item provides the necessary budgetary authority to process those adjustments. This ensures that the Army's financial records remain accurate and that all obligations are properly reconciled, thereby supporting the integrity of the DoD's overall financial management system.

This line item does not support any new procurement, research, or development activities. Instead, it functions as a safeguard for the Army's financial operations, allowing for the resolution of legacy accounting issues that may arise after the closure of budget accounts. The program's existence reflects the complexity of federal financial management and the ongoing need to address adjustments that cannot be anticipated during the initial budget formulation process.