FINANCIAL MANAGEMENT POLICY MANUAL

Section III:
SECURITY ASSISTANCE
074740 SECURITY ASSISTANCE PROGRAM
1. SCOPE.
The United States Security Assistance Program is predicated on a policy
of providing military equipment and services to eligible foreign
governments and international organizations through Grant Aid and
Foreign Military Sales so that they may maintain their security.
2. ADMINISTRATION.
The Comptroller is responsible for Foreign Military Sales budgetary and
fiscal matters and development of related policies and procedures and is
the central point of contact regarding these matters with the Under
Secretary of Defense (Comptroller), Defense Security Assistance Agency
(DSAA) (Comptroller), and the Defense Finance and Accounting Service
(DFAS-DENVER). The Office of the Chief of Naval Operations
(OPNAV) has management responsibility for the Defense Finance and
Accounting Service Security Assistance Program (SAP). Within OPNAV,
this responsibility has been assigned to the Deputy Chief of Naval
Operations (DCNO) for Plans and Policy. However, the Fiscal
Management Division is the OPNAV control point for pricing, estimating,
accounting, earnings measurement, reimbursables, and the financial
interface with the Office of the Under Secretary of Defense (Comptroller)
(OUSD (C)) and DSAA (Comptroller) in FMS and Grant Aid matters.
With respect to the Foreign Military Sales Program, sales transactions are
recorded against the Advances, Foreign Military Sales Trust Account.
With respect to the Grant Aid Program, the Military Assistance (MA) and
International Military Education and Training (IMET) appropriations are
appropriated to the President of the United States to provide Grant Aid to
foreign countries. The MA and IMET (Transfers to Navy) funds are
allocated to the Department of the Navy by the Defense Security
Assistance Agency (DSAA). The allocation is supported by incrementally
approved program execution documents, i.e., funded Military Assistance
Program (MAP) orders for various foreign countries. These MAP orders
are simultaneously distributed for information and action, as necessary, to
various OPNAV offices, the Military Assistance Advisory Groups, and the
Naval Inventory Control Point (NAVICP).
(Change 67)
Financial Management Policy
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