FINANCIAL MANAGEMENT POLICY MANUAL

y the activity that provides the services and/or supplies.
4. FOREIGN COURTS AND TRIBUNALS.
SECNAVINST 5820.4 establishes criteria for the payment of counsel fees,
bail, court costs and other necessary and reasonable expenses, authorized
by 10 U.S.C. 1037, incident to representation in civil and criminal
proceedings before foreign tribunals that involve members of the Armed
Forces, civilian personnel, and dependents and should be funded from the
operating funds of the activity to which the individual is assigned. If the
individual is not assigned to a Navy activity, then costs are properly
chargeable to the funds of the activity to which the individual is assigned
for administrative purposes. Costs for military personnel en route between
duty stations should be charged to operating funds administered by the
Bureau of Naval Personnel (BUPERS) or Headquarters, U.S. Marine
Corps (HQ, USMC), as appropriate.
5. NONCONTRACTUAL CLAIMS.
a. Budget Policy.
In accordance with 10 U.S.C. 2732, noncontractual claims are funded
by appropriations available to claimants for operation and
maintenance, unless stated otherwise. The procedure for paying
claims is contained in DOD 7000.14-R, Financial Management
Regulation, Volume 5. Claims usually fall into the following
categories:
(1) Private Property Losses.
The payment of claims for personal property loss or damage
incident to military service is authorized by the Military Personnel
and Civilian Employees' Claims Act of 1964, as amended (31
U.S.C. 3721). The maximum amount which may be paid for any
loss or damage arising from a single incident is limited to $40,000.
In general, written estimates of the cost of repair or of the
replacement cost on any item is required when the amount claimed
is more than $100, but this requirement may be waived by the
adjudicating officer. Transportation claims involving liability of
carriers and/or insurers may be filed concurrently with the claim
without the claimant awaiting settlement from the carrier and/or
insurer.
(2) Correction of Records.
The correction of records due to an error, inequity or injustice may
result in an entitlement to active, reserve, or retired pay and/or
allowances. Claims arising from the correction of military records
are authorized by 10 U.S.C. 1522 and are paid from appropriations
available for active duty, reserve or retired pay.
Financial Management Policy
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