FINANCIAL MANAGEMENT POLICY MANUAL

organizations of the private economy which are available to provide private
parties the services or materials requested from the DON.
2. FINANCING
a. General. Advances from private parties for work or services are
credited to the Suspense, Navy (SN) account. As work is performed or
material is issued by Navy and Marine Corps activities, the cost of
performance including overhead and applicable surcharges is charged to
the SN account. Any balances remaining in the SN account after the work
or materials have been furnished are refunded to the private party. Certain
aeronautical contractors and commercial airlines having continuous need
to use Navy or Marine Corps air stations to land their aircraft provide
bonds rather than advances of funds. In the latter case, the applicable
company is billed after the fact for material or services received. In the
event that a company becomes delinquent or defaults in payment, the
DON can redress from the bonding company.
b. Exception. The cost for space occupied by private parties in Navy
controlled facilities including utilities, maintenance and related support
services provided may be waived by an installation commander when
benefits contributed to the morale and welfare of DoD personnel are
considered within mission responsibilities of the activity.
(Change 48)
075261 PRIVATE ORGANIZATIONS
1. GENERAL.
Private organizations are self-sustaining, non-Federal entities, incorporated or
unincorporated, which are operated on a Department of Defense (DoD)
installation, with the written consent of the installation commander or higher
authority, by individuals acting exclusively outside the scope of any official
capacity as officers, employees, or agents of the Federal Government. It is
DoD policy under DoD Directive 5124.5 that procedures be established for
the operation of private organizations on DoD installations to prevent the
official sanction, endorsement, or support by DoD Components except as in
DoD 5500.7-R (Joint Ethics Regulation). Private organizations are not
entitled to sovereign immunity and privileges accorded to Federal entities and
instrumentalities. Private organizations are not Federal entities and are not to
be treated as such, in order to avoid conflicts of interest and unauthorized
expenditures of appropriated, commissary surcharge, or nonappropriated
funds.
2. BUDGET POLICY
a. General. Private organizations are self-sustaining, primarily through
dues, contributions, service charges, fees, or special assessment of
Financial Management Policy
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