FINANCIAL MANAGEMENT POLICY MANUAL

commands, bureaus, offices or activities which earn them. Where the
use of reimbursements is controlled at organizational levels above that
at which they are earned, the reimbursements shall be budget and
accounted for at the level at which they are controlled. Any diversion
of intended delivery for Navy use to a reimbursable customer (see
subpar. 2b(2)(a), item 1) will be provided through a stores inventory
account to ensure financial control, the proper processing of
documentation to effect reimbursement, and to generate credits to the
applicable procurement appropriation and reimbursable subhead. As a
general policy, to preclude unnecessary layering of accounting, when
one headquarters organization receives an order which requires the
total work effort to be performed or administered by one of its field
activities or a field activity of another headquarters organization, the
reimbursable order shall be passed directly to the field activity for
acceptance and performance. Under procurement and the Research,
Development, Test and Evaluation, Navy appropriations, intraappropriation
reimbursements between program managers within the
same headquarters command/office are prohibited.
c. Waiver of Reimbursements.
Some areas of support provided to others are designated to be
performed on a common-service basis without reimbursement. In
areas where Department of Defense (DoD) or DON policy requires
that support be provided on a common-service basis, the furnishing of
the designated support is considered to be within the mission and
direct program responsibility of the performing activity. Intraservice
and interservice support normally furnished on a reimbursable basis
may be furnished on a common-service basis when the value of
transactions with a customer activity aggregates less than $100 within
a quarterly period. In addition, a waiver of reimbursement may be
granted by OUSD(C) in specific cases where not contrary to law and
where substantial evidence exists that it is in the interest of DoD and
the United States Government to furnish material or services to other
governmental agencies or foreign governments without
reimbursement.
d. Application of Reimbursements.
Unless specifically mandated by law, reimbursements are to be
credited to accounts current when the reimbursements are earned
rather than accounts current when reimbursements are collected.
2. PROCUREMENT APPROPRIATIONS
a. Scope.
In procurement appropriations, the reimbursable budget program
consists of those items of material sold from existing stocks or
material purchased for customers, including work or services
Financial Management Policy
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