The Marjorie Sterrett Battleship Fund Award is presented annually by the U.S. Navy's Chief of Naval Operations to one ship in the U.S. Atlantic Fleet and one in the U.S. Pacific Fleet.
Generally the recipient is the ship with the highest score in the fleet's annual competitions for Battle Effectiveness Awards, and is therefore often thought of as the fleet's most battle-ready ship. This isn't strictly correct, because it has been the policy to rotate eligibility for the award annually among the various type commands (aircraft carriers, submarines, amphibious ships, etc.).
The award includes a small monetary stipend (about $500 in 2004). Commanding officers receiving the award must put the money into the ship's recreation fund, where it can be spent on athletic equipment, prizes for athletic or marksmanship competitions, recreation room furniture, dances, parties, and similar recreational activities.