FINANCIAL MANAGEMENT POLICY MANUAL

4. MANAGEMENT.
In addition to general responsibilities assigned to the Office of the
Assistant Secretary of the Navy (Financial Management and Comptroller)
(OASN (FM&C)) and the Chief of Naval Operations (CNO), as indicated
in par. 074741, the following budgetary functions related to the FMS Trust
Fund are performed by OASN (FM&C) (Office of Budget) and by CNO
(Fiscal Management Division):
1. Navy Trust Fund estimates of sales (obligational authority),
obligations, expenditures and collections, and unfunded contract
authority are developed and submitted to the Defense Security
Assistance Agency (DSAA);
2. phased obligations and expenditures are developed and submitted
to DSAA and internal organizations;
3. budget calls are issued to major claimants for civilian and military
personnel expenses funded by reimbursements from administrative
surcharge collections. These reimbursements are made to the military
personnel and operation and maintenance appropriations. Based on
the data received, unfunded obligational authority is assigned to major
claimants;
4. estimates of Research, Development, Test and Evaluation, Navy
(RDT&E,N) nonrecurring cost recoveries, developed by the systems
commands and project managers, are reviewed and adjusted as
necessary. Nonrecurring cost recoveries are required to be deposited in
either the Special Defense Acquisition Fund (SDAF) or the General
Fund of the Treasury;
5. FMS case pricing on DD Forms 2061 is validated to ensure that all
appropriate cost elements are included and that calculations are
correct;
6. based upon DFAS-DENVER approved DD Forms 2060,
obligational authority (OA) allowing execution of FMS cases is
conveyed through two channels on Program/Fund allocation (FMS)
(NAVCOMPT Forms 2058F). OA for FMS training cases, including
training conducted by the U.S. Marine Corps, is passed directly to the
Commander, Naval Education and Training Command (COMNETC)
while OA for all other FMS cases is conveyed to the Naval Inventory
Control Point (NAVICP);
7. quarterly or as required, DFAS-DENVER issues expenditure
authority (EA) at the country-level to NAVICP via OASN (FM&C),
NAVICP maintains internal controls to ensure that payment
authorizations issued do not exceed the current country-level
expenditure authorization. Country-level EA is used to pay for FMS
Financial Management Policy
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