FINANCIAL MANAGEMENT POLICY MANUAL

. A current, or future, appropriation available for the same purpose
as the one that originally funded the contract is to be used as the
funding source of the reimbursement.
c. Expired appropriations that were current at the time judgment was
rendered may be used for reimbursement.
d. Closed Accounts may not be charged.
e. Should more than one appropriation be involved in the monetary
judgment, the reimbursement is to be prorated against those
appropriations. Any proration must be based on the nature of the
claim and the basis of the monetary judgment in that particular case.
3. Accounting and Reporting of Reimbursement.
A unique line of accounting, called “Judgment Fund Reimbursement”, is
to be assigned for the recording and reporting of all such reimbursements
in official accounting and reporting systems. Funds are to be
reprogrammed into this line from existing allocated funds within the
appropriation being charged for the reimbursement. Although these
reprogrammed funds are not subject to normal reprogramming rules with
respect to the increase, they must conform to reprogramming guidance
governing delegated authority for program reductions.
4. Approval Authority.
Approval of the Assistant Secretary of the Navy (Financial Management
and Comptroller) is required for all Judgment Fund reimbursements in
excess of $1 million. A copy of the signed monetary judgment, as well as
the Department of the Treasury request for reimbursement, must
accompany all requests submitted for approval to FMB-5.
5. Payment.
Once funds to be charged for reimbursement have been identified and
reprogrammed, and any required approvals have been obtained, a Voucher
for Transfer Between Appropriations and/or Funds (SF 1080) is to be
prepared and forwarded to the appropriate Operating Location (OPLOC)
of the Defense Finance and Accounting Service (DFAS) site for payment.
The DFAS OPLOC can then process the transfer of funds for the payment
to the Treasury Judgment Fund using the Treasury’s Intra-Governmental
Payment and Collection (IPAC) system.
6. Applicability of Antideficiency Act.
Judgments should not cause violations of the Antideficiency Act.
Financial Management Policy
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