FINANCIAL MANAGEMENT POLICY MANUAL

2. INTERNATIONAL BUDGET COSTS. International budget costs are
those costs normally accepted into the international budget on the basis of
international agreements and understandings. In general, they include the
costs directly related to the operation and maintenance of international
headquarters organizations and the provisions of appropriately equipped
facilities for that purpose. The United States' share of international budget
costs is provided from the operating funds of the designated administrative
agent.
3. NATIONAL BUDGET COSTS. National budget costs are those costs
related to participation by agencies of the Department of Defense in support of
international military headquarters normally not accepted into the
international budget. Generally, these include all military personnel costs,
whether for personnel who are on international staffs or who are attached to
support units of a U.S. element; expenses for U.S. civilian personnel not
assigned to international functions; and all other support costs excluded from
international funding. The national budget costs, except for military personnel
costs and personally assigned equipment provided by the assigning service,
are generally the responsibility of the administrative agent.
(Change 48)
075242 NORTH ATLANTIC TREATY ORGANIZATION
INFRASTRUCTURE PROGRAM
1. DERIVATION OF NAVY FUNDING RESPONSIBILITY. The
participation of the United States as a member nation of the North Atlantic
Treaty Organization (NATO) requires a sharing of the financial responsibility
for the common infrastructure program. The United States' share of the
funding of each infrastructure facility is determined on the basis of costsharing
agreements negotiated for each funding period between host and user
nations and approved by the North Atlantic Council (NAC). The Department
of the Navy is the sponsoring U.S. military department for those facilities
required for support of U.S. Naval Forces assigned to NATO missions.
2. DEFINITIONS
a. Infrastructure. The term "infrastructure" as employed in connection
with NATO facilities includes all those fixed installations required for the
training, deployment, and operation of military forces; e.g., airfield, fuel
and ammunition storage, pipelines, communications, navigational aids,
anchorages, and waterfront facilities.
b. Common Funding. The term "common funding" describes the usual
method of financing NATO infrastructure projects, which involves the
sharing of costs of construction by NATO member nations. Each nation's
share is determined on the basis of periodically negotiated cost-sharing
agreements, which are approved by NAC.
Financial Management Policy
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