FINANCIAL MANAGEMENT POLICY MANUAL

4. FUNDS ADMINISTRATION RESPONSIBILITIES.
a. The Assistant Secretary of the Navy (Financial Management and
Comptroller) (ASN(FM&C)), in conjunction with the Office of the
Under Secretary of Defense (Comptroller) (OUSD(C)), will prepare
annually an apportionment request (DD 1105) for submission to the
Office of Management and Budget (OMB) to request direct and
reimbursable authority for the NDSF.
b. The OUSD(C) apportions the NDSF funds to the ASN(FM&C),
who in turn allocates the funds to CNO (N82).
c. COMNAVSEASYSCOM is the funds administrator for acquisition
and research and development efforts for DOD sealift vessels. These
funds are allocated to COMNAVSEASYSCOM by CNO (N82). CNO
(N09BF) is the funds administrator for operation and maintenance.
Funds appropriated to NDSF for the operation and maintenance of
DOD sealift vessels and the NDRF/RRF will be allocated to CNO
(09BF) by CNO (N82).
d. Operating funds are provided by the customers of the NDSF,
dependent on operating status. CNO (N09BF) provides funds for all
surge sealift ships in ROS. When a ship is activated to FOS, the
requiring command provides the funds. Operating funds from the
requiring command are provided by reimbursable orders, but classified
as other than automatic reimbursement (OTA) on the accounting
records to CNO (N09BF). The Commanders of the Atlantic and
Pacific Fleets, Army, Air Force, and Defense Logistics Agency are
examples of customers requesting FOS on a reimbursable basis. CNO
(N09BF) receives reimbursable orders from each requesting command
and accepts them into the NDSF account. CNO (N09BF) then
provides reimbursable orders to MSC citing the NDSF account
(X4557).
e. STARS-HQ is the official accounting system for CNO (N09BF)
and COMNAVSEASYSCOM. The specific STARS-HQ functions to
be performed include billing, fiduciary reporting, monitoring of
revenues and expenditures, assisting the funds administrator in the
reconciliation of expenditures, and preparation of management reports
for the funds administrator and program manager, CNO (N09BF) and
COMNAVSEASYSCOM.
f. The issuer of the reimbursable order records the commitments and
obligations. The Defense Finance and Accounting Service - Cleveland
Center records the complete revenue transactions associated with the
NDSF. It is a prescribed practice for CNO (N09BF) to advance bill its
customers upon receipt of an order due to cash flow limitations. The
MSC directly bills CNO (N09BF) for services performed.
Financial Management Policy
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