FINANCIAL MANAGEMENT POLICY MANUAL

c. Prefinancing. The term "prefinancing," as related to NATO
infrastructure, means the act of financing by NATO host country or
NATO user with its own funds, in accordance with agreed NATO
common-funding procedures, with intent to recoup the prefinanced funds
from NATO eventually, of projects or items which are required
immediately and have been approved for common financing, or are still
being considered for possible inclusion in a NATO infrastructure program.
3. BUDGET POLICY
a. Construction of Infrastructure Facilities
(1) Common Funding. The Under Secretary of Defense, Comptroller
has assigned the Department of the Army as executive agent with the
responsibility for programming, budgeting, funding, accounting, and
reporting of the United States' share of the NATO infrastructure
program as an item in the military construction program.
(2) Correlation. The Department of Defense military construction
program and the NATO infrastructure program must be closely
correlated beginning at the initiating level and by each higher echelon
of command, so the maximum amount of the U.S. construction
requirements will be funded in the NATO common-funded
infrastructure program in conformance with U.S. policy to keep to a
minimum the amount of U.S. dollars being invested in real property
facilities in the NATO area.
(3) NATO Host Nation Infrastructure Support. Standard life safety,
fire protection, environmental, and energy conservation items which
exceed the NATO minimum military requirement are not eligible for
NATO infrastructure funding and normally must be conjunctively
funded. In those instances when the United States acts as a host
nation, these items will be funded by the annual MILCON project,
"NATO Host Nation Infrastructure Support." In addition, the "NATO
Host Nation Infrastructure Support" project will provide funding for
roads, utilities, and unfunded administrative costs.
(4) Prefinancing. If a decision is made that U.S. military urgencies,
when weighed against the risk of failing to secure common funding,
require that a project for U.S. use be prefinanced by Department of
Defense (DoD) appropriations, it may be funded, as appropriate, from
appropriations for military construction, procurement, or if the project
costs not more than 20 percent of the amount specified by law as the
maximum amount for a minor military construction project,
appropriations available for operation and maintenance (O&M and
RDT&E) may be utilized. In such instances, the prescribed NATO
procedures for prefinancing will be followed in order to assure
ultimate recoupment of U.S. funds. Such recoupments, when
collected, are credited to the North Atlantic Treaty Organization
Financial Management Policy
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