FINANCIAL MANAGEMENT POLICY MANUAL

075003 CROSS OR COMMON SERVICE
1. GENERAL.
Interservice or intraservice support is provided on either a cross-service
(with reimbursement) or common-service (without reimbursement) basis
as described in subpars. 2 and 3. The application of the Department of
Defense Resource Management System (RMS) does not require that each
activity or unit budget and fund for every cost incurred in the support of
that activity or unit. The assignments of missions and tasks by higher
authority may include the responsibility to provide support to contiguous
or satellite activities as part of the basic mission of an activity. It is the
objective of RMS to charge to the performing activity all those costs
incurred in the performance of its mission even though some part of the
mission relates solely to the support of other activities.
2. CROSS SERVICE.
Ordinarily, when an activity does provide work or services to another
activity not within its common-service mission, it will charge for such
support provided it is significant, identifiable, out-of-pocket, and the costs
can be developed without administrative difficulty. When reimbursement
for support is valid, the RMS concept requires that the support be
measurable.
3. COMMON SERVICE.
When one activity provides support to another activity on a commonservice
basis, the support is considered to be within the mission of the
providing activity. The support functions are included as direct program
costs in the budget of the providing activity. Activities that operate under
the Navy Working Capital Fund (NWCF) will budget for common support
functions under the military support program, and the cost of common
support which is initially financed by the NWCF is recovered by charging
the military support program. Activities governed by NWCF regulations
are permitted to recover the cost of designated common-service functions
in support of their own operations following guidance governing NWCF
operations. Common-service support is directed for certain areas of
intraservice and interservice support (see Sections II and VI, Part B, of this
Chapter).
4. WRITTEN AGREEMENT.
Prudent management prescribes that clear understanding exist between
activities providing or receiving support in order that each budget can be
properly formulated to reflect funding responsibilities. A Support
Agreement (DD Form 1144) or a written memorandum of understanding
may be used for this purpose.
Financial Management Policy
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