FINANCIAL POLICYNEWSLETTER

Enclosure (1)

FINANCIAL POLICY NEWSLETTER

TABLE OF CONTENTS

ENCLOSURE (1)RECURRING FINANCIAL POLICY ISSUES

I. LEASES 1-2

II. EXPENSE / INVESTMENT 2-4

III. STATUTORY LIMITATIONS AND ADMINISTRATIVE 4-6CONTROL OF FUNDS

IV. PURCHASE OF EMBLEMATIC ITEMS 6-7

V. EXTERNAL PUBLIC AFFAIRS PURCHASES 7-8

VI. OMBUDSMAN FUNDING 8-9

VII. ECONOMY ACT ORDERS, PROJECT ORDERS, AND 9-10REQUEST FOR CONTRACTUAL PROCUREMENT

VIII. DEPARTMENT OF DEFENSE STANDARD TRAVEL 10-11POLICY

IX. CURRENT POLICY ISSUES IN DEALING WITH 11-12FOREIGN GOVERNMENTS, OVERSEAS COMMUNITYRELATIONS (COMREL) FUNDS

X. FOREIGN COUNTRY-EMERGENCY DISASTER RELIEF 12

XI. FUEL EXCHANGE AGREEMENTS 12-13

XII. COUNSEL FEES AND COURT COSTS OF CIVILIAN 13AND MILITARY PERSONNEL IN FOREIGN COUNTRIES

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FINANCIAL POLICY NEWSLETTER

TABLE OF CONTENTS

XIII. LATIN AMERICAN COOPERATION FUNDS 13-15

XIV. NORTH ATLANTIC TREATY ORGANIZATION 15

XV. TENDER AND REPAIR SHIP WORK ON FOREIGN 15-16GOVERNMENT VESSELS

XVI. SALES OF SUPPLIES AND SERVICES TO FOREIGN 16-17GOVERNMENTS

XVII FACILITIES PROJECTS AT NAVY SHORE ACTIVITIES 17-18

ENCLOSURE (2)FREQUENTLY ASKED QUESTIONS 1-15

ENCLOSURE (3)FINANCIAL MANAGEMENT REGULATIONS 1

ENCLOSURE (4)SUPPLEMENTAL NAVY GUIDANCE 1-3

ENCLOSURE (5)ADDITIONAL RESOURCES 1

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FINANCIAL POLICY NEWSLETTER

RECURRING FINANCIAL POLICY ISSUES

I. LEASES

Leasing remains a viable alternative for temporarily using various types of equipment, and reviewing refreshed technology (i.e., ADP, machinery, automobiles, etc.). However, with the implementation of NMCI, all computer and ADP equipment will be secured through the NMCI contract.

A. Definitions1. Lease Term. For non-operating leases, the lease term is the fixed non-cancelable

term of the lease plus all periods, if any, representing renewals or extensions of the lease that can be reasonably anticipated.

2. Noncancelable. Means the lease is cancelable only on the occurrence of a remote contingency, which can occur when Congress does not appropriate funds in future years to cover the lease.

3. Bargain Purchase Option. A lessee’s option to purchase leased property for a price which is sufficiently lower than the expected fair value of the property at the date the option becomes exercisable that, at inception of the lease, makes the exercise of the option reasonably assured.

4. Estimated Economic Life. The estimated remaining period during which the property is expected to be economically usable (by one or more users with normal repairs and maintenance) for the purpose for which it was intended at the inception of the lease, without limitation by the lease term.

5. Minimum Lease Payments. The payments that the lessee is obligated to make or can be required to make in connection with the leased property (contingent rentals are excluded from the minimum lease payments).

6. Fair Value. The price for which the property could be sold in an arm’s-length transaction between unrelated parties.

7. Interest Rate Implicit in the Lease. The discount rate that, when applied to the minimum lease payments (less executory costs and the unguaranteed residual value) causes the aggregate present value at the beginning of the lease term to be equal to the fair value of the leased property at the inception of the lease.

8. Renewal or Extension of a Lease. The continuation of a lease agreement beyond the original lease term, including a new lease under which a lessee continues to use the same property.

B. Types of Leases

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1. Operating Lease. An operating lease is an agreement, which conveys the right to use real or personal property for 12 months or less. Payments made for an operating lease are operating costs, and are considered expenses, regardless of the amount.

2. Capital Lease. Capital leases are considered investments and usually require authorizing legislation with an amount equal to the yearly lease payment appropriated annually. One of the following criteria must be met to be classified as a capital lease:a. The lease transfers ownership of the property to the lessee by the end of the lease

term. b. The lease contains an option to purchase the leased property at a bargain price. c. The lease term (noncancelable portion plus all periods representing renewals or

extensions that can be anticipated) is equal to or greater than 75 percent of the estimated economic life of the leased property.

d. The present value of the rental and other minimum lease payments (excluding costs such as insurance, maintenance, and taxes to be paid by the lessor) equals or exceeds 90 percent of the fair value of the leased property.

C. Lease - Purchase AnalysisAll capital asset leases must be justified as preferable to direct government purchase and ownership. A lease-purchase analysis is required when the following two tests are met:

1. A capital asset is leased for a term of 3 years or more; or a new asset with an economic life of less than 3 years is leased for 75 percent or more of its economic life; or the asset is built for the purpose of being leased to the government; or the asset is leased to the government and has no alternative commercial use.

2. The capital asset or group of related assets has a total fair market value in excess of $1 million.

References:NAVSO P-1000, 075001, OMB Circular A-94.http://www.dtic.mil/comptroller/fmr/04/04_07.pdfhttps://66.89.193.126/FMA/FMA3Publications.htm

II. EXPENSE/INVESTMENT

Expenses are the costs incurred to operate and maintain the organization, such as personal services, supplies, and utilities. Investments are the costs that result in the acquisition of, or an addition to end items. These costs benefit future periods and are generally of a long-term nature such as real property and personal property. The criteria for cost definitions consider the innate qualities of the item such as durability in the case of an investment cost or consumability in the case of an operating cost, and the conditional circumstances under which an item is used or the way it is managed. In all cases where the definitions appear to conflict, the conditional circumstances will prevail (see DoD FMR Vol.2A, para 010201). The following guidance is provided to determine whether a cost is either an expense or an investment:

A. Expense1. Civilian, military, and contract labor.2. Rental charges for equipment and facilities.

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3. Food, clothing, and fuel.4. Maintenance, repair, overhaul and rework of equipment.5. Supplies and material designated for supply management of Defense Working Capital

Funds (DWCF).6. Assemblies, spares and repair parts, and equipment items (not for centralized item

management) which have a system unit cost less than $100,000. If these individual items are part of a system, the total system costs must be less than $100,000.

7. Cost of incidental material and items that are not known until the end item is under modification are conditional requirements and considered expenses because the material is needed to sustain or repair the end item.

8. Engineering efforts to determine what a modification will ultimately be or to determine how to satisfy a deficiency are expenses.

9. Real property maintenance, including facility maintenance and repair, and O&MN-funded minor construction projects. Limits for O&MN-funded minor construction are not more than $1.5 million in the case of an unspecified minor military construction project intended solely to correct a deficiency that is life-threatening, health-threatening, or safety-threatening; or not more than $750,000, in the case of any other unspecified minor military construction project.

B. Investment1. All items of equipment, including assemblies, ammunition and explosives,

modification kits, and spares and repair parts not managed by DWCF that are subject to centralized item management and asset control.

2. All equipment items that are not subject to centralized item management and asset control, and have a system unit cost equal to or greater than the current investment threshold of $100,000. Items may not be purchased piecemeal to circumvent the threshold (see system definition below).

3. Construction, including the cost of land, site preparation, land improvements, and real property equipment installed that is an integral part of the facility.

4. Modification kits, assemblies, equipment and material for modernization programs, ship conversions, major reactivations, major remanufacture programs, major service life extension programs, and the labor associated with incorporating these efforts into an end item.

5. Supply management items of the DWCF designated for weapon system outfitting, government-furnished material on new procurement contracts, or for installation as part of a weapons system.

6. Support elements such as data, factory training, support equipment, and interim contractor support which are required to support the procurement of a new weapon system or modification.

C. Definition of SystemThe term system used in these guidelines refers to a collection of equipment, which is part of and functions within the context of a whole unit to satisfy a particular documented functional requirement. Although usually thought of in ADP terms, system can also apply to telecommunications, air purification, access control systems, etc. Submission of

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formal life cycle management documentation, such as the Abbreviated System Decision Paper (ASDP) constitutes one acceptable form of a documented requirement.

D. Examples1. When dealing with equipment acquisitions, first consider the functionality to

determine if the cost of separate equipment components, or the entire cost of the end product is the appropriate means for expense/investment determination. For example, when adding a new PC to an existing network, the equipment that comprises the PC (i.e., CPU, monitor, and keyboard) should be considered together when applying the unit value concept. An addition must extend existing functional capabilities, (i.e., used by more people or used over a broader geographic area) not provide new functional capabilities, like desktop publishing in addition to the old word processing, or database capability when no database software existed before. Increasing RAM from 16M to 32M, or purchasing new software may/may not add functionality. These items are O&MN funded.

2. The following demonstrates that OPN vs. O&MN decisions require consideration with regard to the complete project as described, or planned: For example, the ASDP is valued at $500K, and therefore only fundable with OPN dollars. After approval it is determined that $85K is available and the project is started. At a later time (same or different FY) $240K of OPN is available, and an additional $240K of the system is purchased. Later again, (FY not material) $135K of OPN is available, and another $135K of the system is purchased. The system is $40K short of completion. Finally, (FY still not material) the remaining $40K of OPN is available, and the remaining components are purchased. It appeared that two increments of equipment purchased clearly required OPN funds, yet two other increments could have been funded with O&MN dollars. However, those two smaller increments were part of a larger system, which was only fundable with OPN dollars. If a master plan is achieved through a series of steps some or all of which require less than $100K, but with a total system price of over $100K, OPN is the only appropriate funding. All due caution must be exercised in defining requirements to avoid acquisition in a piecemeal fashion of items which function as a system, since requirements may not be fragmented to circumvent this criterion.See Frequently Asked Questions (FAQ) numbers 36, 37, and 38.

References:NAVSO P-1000, 075001, 075386.http://www.dtic.mil/comptroller/fmr/02a/Chapter01.pdfhttps://66.89.193.126/FMA/FMA3Publications.htm

III. STATUTORY LIMITATIONS AND ADMINISTRATIVE CONTROL OF FUNDS

NAVSO P-1000 identifies two basic types of limitations, statutory and administrative. Statutory limitations are those fiscal constraints on the obligation and expenditure of appropriated funds imposed by law. The two major statutory limitations are 31 U.S. Code § 1301(a), and 31 U.S. Code § 1517 (Anti-Deficiency Act).

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A. 31 U.S. Code § 1301(a) limits the expenditure of funds to the purpose for which they were appropriated. CINCLANTFLT and its subordinates generally receive two types of appropriated funds, O&MN for expense and OPN for investment purchases. Typically, a 1301 violation occurs when equipment (other than supply system materials/equipment or systems like ADP, telephone, etc.) costing $100,000 or more is purchased incorrectly with O&MN funds. While a U.S. Code § 1301 violation has occurred, no criminal penalties can be levied, however, any discovered misapplication of appropriated funds must be immediately corrected. When the correcting entry is recorded in the official accounting records, charges will be transferred to the applicable current or expired appropriation. If no appropriated funds were granted, or insufficient funds are available, a 31 U.S. Code § 1517 violation has occurred, and the reporting requirements of DoD FMR Vol. 14, "Administrative Control of Funds and Antideficiency Act Violations" must be followed.

B. 31 U.S. Code § 1517 prohibits any act, which will result in an obligation, or expenditure in excess of the funds allocated to CINCLANTFLT or its subordinates on a funding document (allotment, sub-allotment, expense limitation, or operating budget). Operating Target (OPTAR) holders cannot individually incur a 1517 violation. However, they can be cited as a culpable party if their actions cause their funding operating budget, or sub-allotment holder to incur a 1517 violation. When it is determined that an apparent or actual 1517 violation exists, it must be reported to CNO. Inadvertent incurrence of a 1517 violation will result in both administrative discipline and/or criminal prosecution, dependent upon the severity of the violation. Administrative discipline for civilians includes written admonishment, reprimand, grade reduction, suspension, or removal from office. Military members are subject to action under the Uniform Code of Military Justice (Article 92). Criminal penalties for both military and civilian members include fines up to $5,000 and/or 2 years in prison. The individuals responsible for the violation must be identified in the Formal Investigative Report. In addition, appropriate disciplinary actions must be levied against the culpable parties.

C. Anti-deficiency Act Violations1. Obligations or expenditures are authorized or incurred in excess of the amount of

funds available at the formal subdivision of funds level.2. Obligations exceed cost authority for Working Capital Funds.3. Using O&MN dollars in excess of the $750,000/$1.5 million minor construction

limit, including building in stages to circumvent the threshold.4. Using Family Housing, Navy dollars for repairs in excess of the Congressionally

established statutory limit, without prior approval.5. Using annual funds to place orders under contracts or leases that commit the

government to a longer term than the availability of the funds, if the option to renew does not remain with the contracting officer. Future year renewals constitute contracting in advance of an appropriation.

D. Administrative Limitations These are restrictions on the use of funds, but they are not legal limitations. Guidance concerning administrative limitations (SRM, Depot Maintenance, Aircraft/Ship

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Operations targets or floors, etc.) is generally provided by CINCLANTFLT upon issuance of the allotment, sub-allotment, expense limitation, or operating budget.See FAQ number 39.

References:NAVSO P-1000, 073200.http://www4.law.cornell.edu/uscode/31/1301.htmlhttp://www4.law.cornell.edu/uscode/31/1517.htmlhttps://66.89.193.126/FMA/FMA3Publications.htmhttp://www.dtic.mil/comptroller/fmr/14/index.htmlMilitary Law Linkshttp://navweb.secnav.navy.mil/fmc/deskbook/current/part7.dochttp://www.gao.gov/special.pubs/vol1.pdfhttp://www.gao.gov/special.pubs/vol2.pdfhttp://navweb.secnav.navy.mil/fmc/tnginfo.htm

IV. PURCHASE OF EMBLEMATIC ITEMS

A. SECNAVINST 3590.4A authorizes the purchase of emblematic awards with appropriated funds in recognition of unique professional achievements, special accomplishments, or superior professional performance of assigned civilian personnel (i.e., Navy Distinguished Civilian Service Award, Navy Superior Civilian Service Award, or Navy Meritorious Civilian Service Award, not simply receipt of an annual Outstanding Performance Rating). Comparable awards for military personnel that would warrant a command plaque include Legion of Merit, Meritorious Service Medal, Navy Achievement Medal, and the Navy Commendation Medal. Emblematic items include medals, plaques, trophies, badges, and similar devices. The awards are to be modest in cost (activities may spend up to $100 per award) and have no utilitarian value. The name of the providing activity must be reflected on all awards. Awards for accomplishments and competitions should be officially established, announced, and generally of a continuing nature. One-time awards, normally recognizing extraordinary achievements, are permitted if the accomplishment is (1) unique (2) clearly contributes to increased effectiveness, or efficiency, and (3) is not covered by other implementing instructions. Emblematic items that have been purchased with appropriated funds will not be provided to all newly reporting or departing personnel, or for re-enlistments and retirements.

B. BUPERSINST 1710.11C authorizes the use of allocated non-appropriated funds for purchasing of emblematic items to be presented to personnel upon advancement, special recognition, or reenlistment. A maximum unit cost of $10 per person, per occasion applies to any presentation. Not more than 25 percent of the unit’s annual non-appropriated allocation can be used to purchase emblematic items. For ships and other decentralized activities, recreation funds can be used provided the $10 limitation is not exceeded. Uniform items like rank insignia, and qualification devices are personal expenses. Command plaques may be purchased with O&MN funds for display within

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the command, such as on a quarterdeck, main conference room, or other locations used to welcome/host dignitaries.

References:SECNAVINST 3590.4A, BUPERSINST 1710.11C.http://neds.nebt.daps.mil/Directives/3590a4.pdf

V. EXTERNAL PUBLIC AFFAIRS PURCHASES

A. External Public Affairs Funds, issued as separate Budget Activity 4 OPTARs by CINCLANTFLT are provided to cover costs for establishing good community relations. Public affairs functions may include public displays, base bus tours, media escorts, etc. The following costs, if directly related to the performance of the aforementioned functions, are chargeable to the External Public Affairs Funds:1. Salaries of civilian employees who spend more than 50 percent of their time engaged

in public (community) relations activities including directly related costs for material, supplies, and services, if pre-approved by the CINCLANTFLT PAO.

2. Cameras, projectors, and related equipment and supplies not to exceed $5,000 per item.

3. Selected subscriptions to publications, periodicals, and brochures used as handouts to enhance public relations and public affairs efforts and initiatives of the Navy and Atlantic Fleet.

4. Miscellaneous charges, such as printing/reproduction of brochures and pamphlets, news services, official photos, and other display material for the general public.

5. Travel that is not mission (operationally) oriented, but is directly performed for external public affairs functions including (a) travel associated with escort of media representatives by public affairs officers (b) travel by commanding officers, or their direct representatives to their ship's namesake city for the express purpose of fostering better community relations, and (c) travel in support of public affairs functions other than media escort (i.e., color guards for ceremonial purposes, bands, etc.).

6. Inexpensive souvenirs with Navy or command theme such as ship photos, bumper stickers, command patches, pennants, balloons, postcards, pens, pencils, etc. for dispensing to the general public at special events like Armed Forces Day, Fleet Week, Navy Day, etc. Funds for this purpose are extremely limited and expenditures are carefully audited. O&MN funds from other budget activities are not authorized for these expenses.

B. The following costs are not chargeable to External Public Affairs Funds:1. Material, supplies, equipment, services, and related items, which are intended for

internal command use not directly related to external public affairs with the media or general public.

2. Subscriptions to publications, periodicals, and brochures that are exclusively for internal command use, and do not contribute to the enhancement of external public affairs.

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3. Miscellaneous charges for items such as food/refreshments, fireworks, change of command/retirement ceremonies, membership dues, and fees associated with the hiring of professional entertainment/services for events such as air shows and open houses.

4. Mission/operational travel that is not strictly for public affairs purposes.5. Indirect costs for products and services that were developed to meet DoD or service

initiatives, or requests by the public or media. Speeches delivered by other than public affairs employees are not considered public affairs expenditure, because their primary mission is not public information or community relations, and they do not devote more than 50 percent of their time to such functions.

6. Costs incurred for the entertainment of high-ranking visitors, or the purchase of mementos, plaques, flags, pennants, bumper stickers, and other memorabilia for presentation to distinguished visitors or military personnel. Official Representation Funds or Latin American Cooperation Funds are possible sources for these types of expenditures.

References:CINCLANTFLTINST 5726.3H, CINCLANTFLTINST 7042.1R, SECNAVINST 5720.44A.http://neds.nebt.daps.mil/5720_44.htmhttp://www.atlanticfleet.navy.mil/clfinst.htm

VI. OMBUDSMAN FUNDING

A. Command family ombudsmen stimulate better communication between commanding officers and family members, foster a better understanding of the needs and viewpoints of Navy members and their families, and provide information and assistance to family members within the command. To support their efforts, appropriated funds can be used to pay for the following costs of performing ombudsmen duties:1. Paper, envelopes.2. Pens.3. Copier service.4. Clerical assistance.5. Government telephones and command telephone credit cards.6. Government transportation.7. Internet access (interpretation of OPNAVINST 1750.1D from FMB-5).8. Answering machine.9. FAX machine.

B. The FY 1992 Defense Authorization and Appropriation Acts and subsequent years’ legislation authorized appropriated or non-appropriated funds (NAFs) reimbursement for certain expenses incurred by ombudsman volunteering in Family Service Center programs. Reimbursement will be available on an equitable basis to all command ombudsmen, and must be approved by the commanding officer administering the funds. Specific expenses authorized for reimbursement include:

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1. Childcare, not to exceed the local rate of the Navy Child Development Center. 2. Mileage at the published government POV rate.3. Parking and tolls for actual costs incurred; receipt required.4. Telephone (toll) calls not covered by command telephone credit cards.5. Incidental expenses not to exceed $25 per ombudsman, per event at the discretion of

the commanding officer. See FAQ number 40.

References:OPNAVINST 1750.1D.http://neds.nebt.daps.mil/Directives/1750d1.pdf10 U.S.C.1588

VII. ECONOMY ACT ORDERS, PROJECT ORDERS, AND REQUEST FOR CONTRACTUAL PROCUREMENT

A. Economy Act Orders1. As provided in the DoD FMR Vol. 11A Chap. 3, "Economy Act Orders shall be

specific, definite, and certain both as to the work encompassed by the order and the terms of the order itself."

2. Economy Act Orders must serve a bona fide need arising or existing in the fiscal year for which the appropriation is available.

3. Economy Act Orders are subject to the same fiscal limitations as the appropriation from which they are funded.

4. An Economy Act order cannot be used as an intra-claimant reimbursable.5. Previously, when an activity accepted a reimbursable order, the activity must perform

at least 51 percent of the work with in-house labor. As of April 2000, the DoD FMR Vol.11A Chap. 3 no longer requires the accepting activity to perform 51 percent of the work in house.

6. Economy Act orders are severable. Examples are custodial services, fire protection, routine maintenance, and work or services performed for a set period of time (not an end product).

B. Project Orders1. Project orders may be issued only between DoD activities.2. Project orders call for work or services that are not severable, but result in an entire

end item or service, for example overhauling an aircraft. Although the overhaul may involve repairing individual components, the work is not severable because the desired end product is an aircraft in a serviceable state. Other examples include construction of a building, developing software, and renovation of equipment.

3. If work does not begin in the current FY, or is not expected to begin prior to January 1st of the following calendar year, the project order should be returned by the performing activity for cancellation.

4. The activity performing the work should incur at least 51 percent of the total costs of goods or services provided.

C. Request for Contractual Procurement (RCP)

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A RCP is not a reimbursable document; instead the contracting activity direct cites the customer's line of accounting on applicable contracts issued to vendors for required materials, work, or services.

References:http://www.dtic.mil/comptroller/fmr/11a/11a02.pdfhttp://www.dtic.mil/comptroller/fmr/11a/11A03.pdf

VIII. DEPARTMENT OF DEFENSE STANDARD TRAVEL POLICY A. The Government Travel Charge Card's (GTCC) use is mandated for official business

travel by all government employees, military and civilian. Personnel exempt from using the GTCC include:1. Personnel with a GTCC application pending.2. Personnel traveling on invitational travel orders.3. New appointees.4. Members of the Reserve Officer Training Corps, and military personnel undergoing

initial training prior to reporting to their first permanent duty station. 5. Personnel who have been denied the travel card, or have had their card canceled or

suspended for financial irresponsibility.6. Hospital patients. 7. Prisoners.8. DoD may exempt personnel during war or national emergency declared by Congress

or the President, or mobilization, deployment, or contingency operations. 9. Travel to foreign countries where political, financial, or communications

infrastructures do not support use of the travel card.10. If use of the travel card would pose a threat to national security, endanger life or

physical safety, or compromise a law enforcement activity.11. Direct and indirect hire foreign nationals.12. For temporary or intermittent employees - supervisor determines necessity of the

travel card.13. Infrequent travelers, defined as traveling no more than 2 times per year.

B. An ASN (FM&C) memo dated 8 Feb 99 encourages all travelers to charge official travel expenses whenever possible, however, the DoD FMR Vol. 9 Chap. 3 exempts mandatory use of the travel card for the following expenses:1. Vendor does not accept the travel charge card. 2. Laundry/dry cleaning. 3. Parking.4. Local transportation systems.5. Taxi fares.6. Tips.7. Meals and incidentals covered by the per diem allowance.8. Local and long distance calls.

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C. Per Diem is payable in whole days, with the exception of the first and last day of travel, which are reimbursed at 75 percent of the Meals and Incidental Expenses (M&IE) rate.

D. Receipts must accompany the travel voucher for expenses of $75 or more, and lodging regardless of cost.

E. Travel advances for personnel exempt from using the GTCC are calculated at 80 percent of the per diem and M&IE rate. All other travelers should use the GTCC to obtain cash (up to 100 percent of M&IE only) from an automated teller machine (ATM). The cash advance fee, and the applicable bank/credit union ATM usage charge are reimbursable expenses. If a frequent traveler's GTCC is revoked or suspended, a local disbursing officer may advance 100 percent of the M&IE.

References:http://www.dtic.mil/comptroller/fmr/09/09_03.pdfhttp://www.dtic.mil/comptroller/fmr/09/09_05.pdfhttp://www.dtic.mil/perdiem/trvlregs.html

IX. CURRENT POLICY ISSUES IN DEALING WITH FOREIGN GOVERNMENTS,OVERSEAS COMMUNITY RELATIONS (COMREL) FUNDS

Each year CINCLANTFLT's Major Claimant Operating Budget (MCOB) provides BA IV funds earmarked for overseas community relations. CINCLANTFLT's subordinate commands use these funds for projects that promote greater understanding and goodwill between the citizens of the U.S. and foreign countries. Project material is usually provided by the Embassy or the Office of the Defense Attaché. Ships, squadrons, CBs, or overseas stations' personnel provide volunteer labor during off-duty hours. Examples of events and activities suitable for BA IV funding are:

A. Materials for specific repairs to equipment on playgrounds, schools, orphanages, hospitals, and similar institutions.

B. Shipment of equipment necessary in support of certain projects as part of overseas community relations.

C. Expenses incidental to command participation in local celebrations.D. Inexpensive souvenirs with Navy or command theme/logo (i.e., ship photos, bumper

stickers, command patches/pennants, balloons, postcards, pens/pencils, etc.) for dispensing to the general public at special events like Armed Forces Day, Fleet Week, Navy Day, etc. Funds for this purpose are extremely limited and expenditure should be carefully considered.

E. Neither Overseas Community Relations Funds nor any other CINCLANTFLT funds will be used for projects that require continuing expenditures, such as long-term scholarships.

References:CINCLANTFLTINST 5726.3H, CINCLANTFLTINST 7042.1R, NAVSO P-1000, 075153, and SECNAVINST 5720.44A. http://neds.nebt.daps.mil/5720_44.htmhttp://www.atlanticfleet.navy.mil/clfinst.htm

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https://66.89.193.126/FMA/FMA3Publications.htm

X. FOREIGN COUNTRY - EMERGENCY DISASTER RELIEF

Emergency disaster relief is aid which can be used to immediately alleviate the suffering of disaster victims, and which does not constitute a substantial permanent contribution to the economy of the country concerned. Normally, it includes humanitarian services and transportation of victims; the provision of food, clothing, medicines, beds and bedding; the furnishing of hospital equipment, medical and technical personnel; and repairs to essential services. When not in the immediate proximity of the disaster, prior approval of reimbursement from the Agency for International Development is required before obligation of funds. When time is of the essence and humanitarian considerations make it advisable to do so, a military commander at or near the scene of a foreign disaster may undertake prompt relief operations without specific authority by charging his operating budget or OPTAR dollars (without exceeding his funding limitation or intent of the O&MN appropriation). When such an event occurs, the Chief of Diplomatic Mission and the Joint Chiefs of Staff must be notified immediately via the chain of command.

References:DoD Directive 5100.46 "Foreign Disaster Relief", NAVSO P-1000, 075154, and DFAS-CL Appropriation, Cost & Property Accounting (Field) Manual 035510, 033511, 035511(formerly NAVCOMPT Vol.3). https://66.89.193.126/FMA/FMA3Publications.htmhttp://www.dtic.mil/comptroller/fmr/11b/11B55.pdfhttp://www.dtic.mil/whs/directives/corres/pdf/d510046_120475/d510046p.pdf

XI. FUEL EXCHANGE AGREEMENTS

Pursuant to law and as implemented by Navy regulations, fuel may be provided to or received from a friendly foreign government on a replacement-in-kind or reimbursable basis under a Fuel Exchange Agreement (FEA). Specifically, the sale of a given quantity of fuel to a FEA country entitles the U.S. Government to buy an equal quantity of fuel from that country. Issues of fuel by U.S. Navy ships/aircraft to military units of friendly foreign governments participating in an FEA will be processed through the Navy Working Capital Fund (NWCF) via preparation of a DD Form 1149 or similar document. Quantity of fuel issued will be mutually agreed upon, or if in dispute, the issuers' records will be accepted. The DD Form 1149 cites the NWCF line of accounting for the issue of fuel. Ships must report receipt of FEA fuel to CINCLANTFLT via the NEURS reporting system and by naval message to DFAS OPLOC Norfolk/VA/NIBMD specifying the name of the foreign vessel, nationality, quantity, date of receipt, product grade, and requisition number. Countries currently holding bilateral and/or fuel exchange agreements are: Argentina; Australia; Canada; Chile; United Kingdom; Korea (Air Force and Navy); Pakistan; Turkey; Malaysia; Peru; Japan; Indonesia; Ecuador; and France (FEA only applies to ships).

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References:CINCLANTFLTINST 4100.3B, OPNAVINST 4100.11B, and NAVSO P-1000, 075244. http://www.atlanticfleet.navy.mil/clfinst.htmhttps://66.89.193.126/FMA/FMA3Publications.htmhttp://neds.nebt.daps.mil/Directives/4100b11.pdf

XII. COUNSEL FEES AND COURT COSTS OF CIVILIAN AND MILITARY PERSONNEL IN FOREIGN COUNTRIES

Provision of counsel, bail, payment of court costs, and other necessary and reasonable expenses may be made on behalf of U.S. military personnel, civilian employees, dependents in foreign courts, and foreign administrative agencies. Such costs and other expenses may include travel and per diem expenses of trial observers, interpreters, and foreign national direct/indirect attorneys employed by the Navy. Payment will be in accordance with the contract, or letter of understanding entered into between the selected counsel, and the responsible contracting officer or his designee acting on behalf of the United States. Payment will be made in local currency. For military and civilian personnel assigned to shore activities, charges will be applied to the current O&MN appropriation of the activity where the member was assigned at the time the alleged act was committed. This assistance is not available to NAF employees, indirect hires, or contract workers. For military personnel assigned to operating forces, charges will be applied to the current O&MN appropriation financing the operating forces unit the member was assigned to at the time the alleged act was committed. Ordinarily, repayments will not be required. The Staff Judge Advocate, legal advisor of the designated country representative, or designated commanding officer should be contacted when specific questions arise, as different rules apply to criminal and civil cases.

References:DoD Directive 5525.1, SECNAVINST 5820.4G, and NAVSO P-1000, 075159. http://www.dtic.mil/whs/directives/corres/pdf/d55251wch2_080779/d55251p.pdfhttp://neds.nebt.daps.mil/Directives/5820_4g.pdfhttp://www.dtic.mil/comptroller/fmr/0510 U.S.C. 1037

XIII. LATIN AMERICAN COOPERATION FUNDS (LATAM COOP)

A. The Secretary of the Navy may provide for travel expenses, subsistence, special compensation, and other expenses the Secretary considers necessary for officers and students of Latin American countries. The Secretary has delegated this authority to the Director, Office of Operations, Plans, and Politico-Military Affairs Division, Chief of Naval Operations. OP-N523 provides an annual resource authorization to CINCLANTFLT for LATAM. Funds are distributed quarterly by letter of authority, message or fax to subordinate commanders. Commanders are authorized to allocate these funds to affected units for expenditures.

B. LATAM funds may be used for:

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1. Travel and subsistence for official DON representatives to and from Latin American countries and official travel and subsistence of Latin Americans while in the United States for the purpose of fostering cooperation with Latin American countries.

2. Official Functions and Courtesies. If the number of persons at the function is less than 30, 30 percent must be non-DoD guests. If the function is for 30 or more guests, 50 percent must be non-DoD guests. In all cases, 30 percent of the guests must be Latin Americans.

3. Extending official courtesies to or sponsoring official entertainment in honor of Latin American distinguished citizens, military personnel, students in the United States, government officials, or members of the diplomatic community whose rank, position, function, or stature justify official entertainment such as receptions, luncheons, and dinners.

4. Certain expenses associated with port visits by Latin American naval vessels to the U.S. for exchange of social courtesies with local military and civilian officials; participation in events depicting American life and customs; U.S. ship visits to Latin American countries for similar purposes as Latin American navy visits to the U.S.

5. Mementos and other gifts such as flowers exchanged at official ceremonies, dedications, and functions. These gifts should have a command or official theme, and are limited to $260.

6. Graduation gifts for distinguished Latin American naval or military students at U.S. or Latin American military schools.

C. LATAM funds may not be used for:1. Expenses that are considered personal in nature, such as membership fees and dues.2. Normal mission related activities, which should be charged to other funds.3. Greeting cards.4. Gifts to repay courtesies or hospitality received.5. Payments or gratuities for services performed at, or in preparation of official

functions for U.S. military and civilian employees.6. Expenses related to launchings, commissionings, etc. of U.S. ships, except for

expenses that involve fostering of goodwill for Latin American personnel.D. All claims must provide the following supporting documents:

1. For official functions, provide date, location, type of function, purpose, number of DoD, non-DoD, and Latin American guests, and a list of expenses for food, refreshments, decorations, tips, and labor. Food expenses do not have to be itemized.

2. For gifts and mementos, provide description of occasion; official designation of recipient; nature, quantity, and cost of the items presented; and statement that the presentation was made on behalf of the DON or U.S. government.

E. Funding for LATAM COOP is enhanced if requirements are submitted at least one fiscal year in advance, otherwise requirements may not be funded unless CNO N523 or CLF N02F has excess funds available based on under-execution of submitted requirements. Budget input for a fiscal year is submitted to CNO N523 in the summer (around August) of the previous calendar year (i.e., FY 03 input should be submitted in August 2002). If significant funding increases are anticipated for the outyears, they should be addressed in the CNO N523 budget calls.

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References:CINCLANTFLT 7042.4B, SECNAVINST 7042.13 A, and NAVSO P-1000, 075245. http://neds.nebt.daps.mil/Directives/7042a13.pdfhttp://www.atlanticfleet.navy.mil/clfinst.htm10 U.S.C. 1050

XIV. NORTH ATLANTIC TREATY ORGANIZATION (NATO)

Participation of the U.S. as a member nation of NATO requires a sharing of the financial responsibility between member countries. This includes costs of fixed installations required for the training, deployment, and operation of military forces including airfield, fuel, ammunition storage, pipelines, communications, navigational aids, anchorages, and waterfront facilities. CNO has assigned CINCLANTFLT responsibility for base services such as cargo port handling and local delivery in all areas other than the continental European theater. Routine port services may be furnished without reimbursement (normal O&MN operational cost of the host base/station) to naval vessels of an allied country, if such services are covered by an agreement providing for the reciprocal furnishing of routine port services to U.S. naval vessels. In all other instances, settlement for the acquisition or transfer of logistic support, supplies, and services will be accomplished by either reimbursement in the currency of the supplying country or by exchange/replacement-in-kind.

References:NAVSO P-1000, 075242, and SECNAVINST 7300.29B.http://neds.nebt.daps.mil/Directives/7300b29.pdfTITLE 10, Subtitle A, PART IV, CHAPTER 169, SUBCHAPTER I, Sec. 2806.https://66.89.193.126/FMA/FMA3Publications.htm

XV. TENDER AND REPAIR SHIP WORK ON FOREIGN GOVERNMENT VESSELS

Foreign Military Sales (FMS) is a non-appropriated program through which eligible foreign governments purchase defense articles, services, and training from the U.S. The purchasing government pays all costs that may be associated with the sale. Tenders or repair ships do not normally perform repairs on ships of foreign governments, however, in the absence of available shore industrial/commercial facilities or under special circumstances, the Chief of Naval Operations (CNO, OP-43) may authorize a SIMA, tender, or repair ship to perform repair work on foreign government owned vessels. Separate standard man-day rates have been established for both the Navy FMS program, and repair work performed on foreign government vessels not under the FMS program. Methodologies for the calculation of these rates are agreed upon annually by DFAS-DE and CINCLANTFLT. Advance deposits for tender or repair ship work on vessels owned by foreign governments belonging to NATO or foreign governments with which we have some type of reciprocal agreement are not required, if those alliances or agreements preclude the need for such deposits.

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References:DFAS-CL Appropriation, Cost & Property Accounting (Field) Manual 032102, 035950 (formerly NAVCOMPT Vol.3) http://www.dtic.mil/comptroller/fmr/15/15_08.pdfhttps://66.89.193.126/FMA/FMA3Publications.htm

XVI. SALES OF SUPPLIES AND SERVICES TO FOREIGN GOVERNMENTS

As authorized by Navy regulations, work may be performed for or supplies and services provided to friendly foreign governments on a reimbursable basis, without a formal logistical services agreement between the DON and the foreign country. One condition of sale is that the friendly foreign government reciprocates by providing supplies and materials to U.S. vessels and aircraft when requested. Supplies and services that may be furnished are (1) routine port services to naval vessels in territorial waters of the U.S. or in waters under U.S. control, including pilotage, tugs, garbage removal, line handling, and utilities (2) routine services to military aircraft, including landing and takeoff assistance, use of runways, parking and aprons, and servicing (3) miscellaneous supplies to naval vessels and military aircraft including fuel, provisions, spare parts, and general stores, but not including ammunition, and (4) subject to the approval of the CNO in each instance, overhauls, repairs, and alterations to naval vessels and military aircrafts including necessary equipment and installation.

Routine port services and/or routine aircraft services performed by military personnel without direct cost to DON may be furnished to friendly foreign governments without charge. Additionally, routine port services may be provided without reimbursement to naval vessels of allied countries provided there is an agreement for reciprocal services (without charge) to U.S. naval vessels. The Navy O&MN appropriations or the NWCF initially finance all reimbursable work performed or supplies and services provided. In the case of a reimbursable transaction, an advance deposit must be collected. All charges for work performed or supplies/services provided are invoiced promptly to the foreign government on the Requisition and Invoice/Shipping Document (DD Form 1149). If the foreign government does not offer a cash settlement, a Voucher for Disbursement and/or Collection (NAVCOMPT Form 2277) is forwarded to DFAS-DE within 30 days following the date services or materials were rendered. The NAVCOMPT Form 2277 must indicate the complete accounting classification to be credited upon collection. For issues of materials from SERVMARTS or other walk-in type stores, a separate NAVCOMPT Form 2277 is required.

References:DFAS-CL Appropriation, Cost & Property Accounting (Field) Manual 032102, 035950-035952 (formerly NAVCOMPT Vol.3), and NAVSO P-1000, 075243.https://66.89.193.126/FMA/FMA3Publications.htm

XVII. FACILITIES PROJECTS AT NAVY SHORE ACTIVITIES

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Facilities projects at Navy shore activities involve work on real property. The four classifications of facilities projects are construction, maintenance, repair, and equipment installation. Each classification has different approval levels, funding requirements and sources, and cost limitations:

A. Construction projects are for the production of new facilities or additions, alterations, expansions, extensions, conversions, replacement, or relocation of existing facilities. A minor construction project is a single undertaking, which produces a complete and usable facility or improvement to an existing facility, including land acquisition, construction work and installation of built-in equipment. Minor construction projects are funded by various sources including the Military Construction, Navy appropriation (MILCON), and activity or major claimant O&MN funds. MILCON minor construction projects must not exceed $1.5 million with the exception of Life, Safety, Health, or ATFP projects, which may have an approved cost of up to $3 million. Generally, minor construction projects costing more than $750,000 must be funded by MILCON. O&MN funds may be used for minor construction projects of $750,000 or less, or in the case of Life, Safety, Health, or ATFP projects the limitation is $1.5 million. O&MN funded minor construction projects costing more than $300,000 require CNO approval, and Assistant Secretary of the Navy (Installations and Environment) approval if over $500,000. MILCON minor construction projects costing more than $750,000 require ASN (I&E) approval, written approval from Congress, and a 21-day waiting period. Combination repair and construction projects require separating out the construction item on planning documentation, which is then subject to the same requirements and thresholds as other construction projects.

B. Maintenance is the recurring, day-to-day, periodic, or scheduled work to preserve a real property facility so it may be used for its designated purpose. This includes work undertaken to prevent damage to a facility that otherwise would be more costly to repair. Generally maintenance differs from repair in that maintenance does not involve the replacement of major constituent parts of a facility. There are two types of maintenance, specific and recurring. Specific maintenance is generally performed on a specific job order, and is not of a continuing nature. Recurring maintenance is preventative and repetitive in order to maintain the facility in an operable condition. The activity or major claimant funds maintenance projects, and there are no upper limits requiring ASN or Congressional approval, however, documentation is required for maintenance projects over $500,000. For specific maintenance, the major claimant approves and funds projects over $500,000. Recurring maintenance projects are funded and approved by the activity without limitation.

C. Repair projects restore a real property facility, system, or component to such a condition that it may be effectively used for its designated functional purpose. Repair projects include the repair by replacement of building components such as roofing, siding, HVAC, electrical, plumbing, interior non-load bearing walls, and windows; cosmetic repairs; or local repairs to failed/damaged systems. Replacement components can be state-of-the-art and provide for more capacity than the original due to increased demands/standards. Repair projects also include upgrading building systems to meet life/safety codes (sprinkler, fire alarm, elevators, handicap access, etc.). Additionally,

17 Enclosure (1)

interior rearrangements (except for load bearing walls) and restoration of the existing facility, which allows for the efficient use of existing space to meet current building code requirements may be included as repair. The activity or major claimant funds repair projects, with major claimant approval required for projects over $500,000. Based on 10 U. S. Code § 2811, projects over $5 million require advance approval from ASN, and if costs exceed $10 million, Congress must be notified as well. A recent Congressional committee report reduced the $10 million threshold to $7.5 million. Committee reports, though not law, reflect Congressional intent, and accordingly NAVFAC has lowered their threshold for Congressional notification to $7.5 million.

D. An equipment installation project is defined as modifications to Class 2 real property required solely for the installation of an item of personal property. Personal property (Class 3 & 4) includes accessory equipment and furnishings that are moveable in nature, and not affixed as an integral part of a real property facility. It also includes specialized equipment that is not moveable in nature, but necessary for a specified function in a real property facility, like production, training, and medical equipment. Equipment installation projects require major claimant approval if over $200,000, and are funded by the activity, major claimant, or the agency funding the procurement of the equipment.

References:OPNAVINST 11010.20F, NAVSO P-1000, 074500,074501, Fiscal Year 2002 National Defense Authorization Act (P.L. 107-107)https://66.89.193.126/FMA/FMA3Publications.htm10 U.S. Code, Sec. 2805.10 U.S. Code, Sec. 2811.http://neds.nebt.daps.mil/Directives/11010f20.pdf

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FREQUENTLY ASKED QUESTIONS

1. Can appropriated funds be used to pay for seasonal greeting cards?

Answer: No, the cost of seasonal greeting cards is a personal expense, as are greeting letters and the necessary postage.

References: 64 Comp.Gen. 382 (1985), and B-247563.4 (1996).

2. Can appropriated funds be used for seasonal decorations?

Answer: Yes, installation commanders have discretionary authority to use their appropriated funds for seasonal decorations within the context of local customs and practice. They must ensure that prudence and discretion are exercised before authorizing the purchase and display of seasonal decorations.

Reference: Comp Gen decision B-226781, 11 Jan. 1988.

3. Can appropriated funds be used to pay for food for government employees?

Answer: No, but there are some exceptions: 60 Comp.Gen. 303 allows for small samples of ethnic foods prepared and served during a

formal ethnic awareness program as part of the agency’s Equal Employment Opportunity program. Guidance requires that the sample foods be of minimal proportion and clearly not presented as a meal.

General operating appropriations may be used to provide refreshments at award ceremonies under the Government Employees Incentive Awards Act, 65 Comp. Gen 738 (1986).

Meals that are part of a formal meeting or conference as long as the meals are incidental to the meeting, attendance at the meals is necessary for full participation at the meeting, and employees would miss essential formal discussions, lectures, or speeches concerning the purpose of the meeting if they had their meals elsewhere.

Light refreshments may be allowed at government-sponsored conferences. The following guidelines apply: Not intended to be a meal; buffet lines are not allowed. The government may pay a registration fee (a single fee) that covers both attendance at a

non-government sponsored meeting, and meals. When the meal is charged separately, the government may pay only if the meal is incidental to the training, attendance at the meal is necessary to fully participate in the conference, and the employee is not free to take the meal elsewhere without missing essential formal discussions, lectures, or speeches concerning the conference.

A conference is defined as a meeting, retreat, seminar, symposium, or event that involves attendee travel (TAD/TDY).

1 Enclosure (2)

A periodic meeting normally would not qualify as a conference, when the majority of the participants are not in a TAD/TDY status, and special approval to hold the conference has not been granted.

Not all COs have contracting authority, but they can request that a warranted contracting officer make a legitimate purchase for them. When the authorized conference is held at a government owned facility, the Government Purchase Card is the preferred vehicle for payment.

Expenses to rent a facility that includes food provided to agency employees at an agency workshop. The fee must be all-inclusive, not negotiable, and competitively priced with facilities not providing food.

Food may be allowed if 24 hour staffing is required, and circumstances involve imminent danger to human life, or the destruction of federal property.

The Government Employees Training Act allows the government to provide meals if the agency determines that providing meals is necessary to achieve the objectives of the training program. The government may also furnish meals to non-government speakers as an expense of conducting the training (48 Comp. Gen 185). Training is defined under the Government Employees Training act as the process of providing for and making available to an employee, and placing or enrolling the employee in, a planned, prepared, and coordinated program, course, curriculum, subject, system, or routine of instruction or education, in scientific, professional, technical, mechanical, trade, clerical, fiscal, administrative, or other fields which will improve individual and organizational performance and assist in achieving the agency's mission and performance goals.

References: 5 U.S.Code § 5536, 60 Comp. Gen. 303, 65 Comp. Gen. 738 (1986), 48 Comp. Gen. 185.

4. What are the procedures for emergency/disaster general mess feeding?

Answer: Military/civilian personnel, their dependents, and other persons who are on base may be fed in accordance with NAVSUP P-486, Vol. I (para 2002), which allows subsistence to be provided during disasters and emergencies to persons other than those normally authorized. If payment cannot be secured upon receipt of the meal, later collection might be impractical. After the disaster/emergency has passed, the food service officer must attempt prompt collection from appropriate sources, which include relief organizations, or the individuals themselves. If circumstances prevent or make collection impractical, the food service officer should submit (via the appropriate chain of command) a request for relief from collection, along with a brief summary of the situation and results of reimbursement efforts to ASN (FM&C).

For other civilian personnel, the correct funding policy is found in DFAS-CL Appropriation, Cost & Property Accounting (Field) Manual, 035875 (formerly NAVCOMPT Vol. 3). This reference states that the CO has authority to provide services and supplies to private parties, and must ordinarily charge for the articles/services. As an exception to normal practice (during disasters/emergencies), the CO may determine that it is not reasonable or practicable to collect

2 Enclosure (2)

from those individuals involved. In such cases, approval from ASN (FM&C) must be obtained prior to waiving charges.

References: NAVFSSO Washington DC 052145Z Oct 89 (NOTAL), NAVSO P-486, DFAS-CL Appropriation, Cost & Property Accounting (Field) Manual 035875 (formerly NAVCOMPT Vol. 3), and NAVCOMPT ltr 7480 NCB-512 of 5 Aug 1988.

5. Can OPTAR funds be used for inactivation and/or decommissioning ceremonies for ships?

Answer: Yes, allowable costs and guideline are the same as those outlined in the NAVSO P-1000, 075373.5, subpara d. Decommissioning ceremonies are usually modest, but may be significant for ships with noteworthy combat records, or special significance.

References: NAVSO P-1000, 075373.5, and SECNAVINST 5720.44A.http://neds.nebt.daps.mil/5720_44.htm

6. Can appropriated funds be used for common support to MWR?

Answer: MWR activity categories are: Category A, Mission Sustaining - primarily supported by O&MN funds; Category B, Basic Community Support Activities - generates some revenue due to collection of fees, receives some O&MN support, but not expected to be self-sustaining; and Category C, Business Activities - expected to be self-sustaining, therefore receives limited O&MN support. All MWR activities, regardless of category are authorized to receive appropriated fund common support. This support includes: fire protection, acquisition and installation of extinguishers, sprinkler and alarm systems; security protection, alarm systems and security bars, protection of funds (the O&MN funds provider can provide audit services); pest control; sewage disposal; trash and garbage removal (not authorized for military exchanges in the CONUS); snow removal; safety; medical, veterinary, and sanitary inspections; rescue operations; and facility maintenance or repair necessary to maintain the structural integrity and external appearance of the Navy-owned buildings (includes electrical, mechanical, roofing, foundations, windows, and doors) or to correct fire and safety deficiencies. When these costs are additional, identifiable, and can be segregated on a reasonable and meaningful basis, they should be identified as MWR costs and reported against the MWR appropriated funds authorized. In addition, all MWR activities may utilize other common support services that are provided by a base or installation commander, and are not directly related to the health and safety of personnel and property. Such common support services typically include, but are not limited to custodial services, communication (telephones), legal service and advice, technical guidance, administration, assistance in accounting, financial management, procurement, and civilian personnel. In the case of Category C activities, NAFs must be charged for these latter costs.

Reference: NAVSO P-1000, 075500.

7. Can O&MN funds be used for payment of conference fees?

3 Enclosure (2)

Answer: When an individual is acting in a capacity as the official representative of an activity, registration fees for attendance at meetings, conferences, seminars, or similar activities may be authorized for government or non-federal technical, scientific, professional, or comparable private societies, associations, or organizations. As a general rule, the Comptroller General of the U.S. has taken the position that appropriated funds cannot be used to pay for personal expenses such as meals, refreshments, and coffee unless specifically authorized by statute. He has recognized, however, that refreshments may be provided for federal employees as a necessary expense under the Government Employees Training Act, 5 U.S.C. § 4109(a) (2) (f) (1988) which provides that the head of an agency may pay the necessary expenses of training including the necessary cost of "other services or facilities directly related to the training of the employee." Generally, this requires a determination that attendance at the refreshment periods is necessary for the employees and service members to obtain the full benefit of the training.

References: 5 U.S.C. para 4110-38, and Comp. Gen. Decision B-247966 of 16 Jun 1993.

8. Since ship commissioning costs are funded by the SCN appropriation, if SCN funding is insufficient, can OPTAR/O&MN or ORF funding be used to make up the difference between SCN funds available and funding required?

Answer: No.

Reference: NAVSO P-1000, 075373.

9. If a member of one service branch causes damage to property owned by another service branch, who pays for the repairs?

Answer: Under the concept that service branches all belong to the same government, whichever service branch owns the damaged property pays for its repair. Depending on circumstances, the responsible person could be subject to discipline.

References: 65 Comp.Gen. 464-1986, and 65 Comp. Gen. 910-1986.

10. Who owns promotional gifts (i.e., free airline tickets/hotel rooms, rental car usage) received as a result of official travel?

Answer: The FY 2002 National Defense Authorization Act allows civil service, military, and Foreign Service employees to accept promotional items including frequent flyer miles, upgrades, and access to carrier clubs obtained on government travel. The change includes allowing personal use of the promotional items regardless of when accrued. People who have accumulated mileage in frequent flyer accounts through official travel over the past years now own all that mileage. "The promotional material must be obtained under the same terms as those offered to the general public, and must be at no additional Government cost."

Reference: Fiscal Year 2002 National Defense Authorization Act (P.L. 107-107)

4 Enclosure (2)

11. Can incentive awards be used to recognize employees with good sick leave records?

Answer: No, the use of incentive awards for this purpose is inappropriate.

Reference: 67 Comp. Gen. 349 (1988).

12. May appropriated funds be used to pay employee utility costs under work-at-home programs?

Answer: Work-at-home arrangements may increase an employee's home utility costs. Balanced against these increases are potential savings to the employee resulting from reduced commuting, childcare (during the period the employee would otherwise be commuting to and from work), meals, and clothing expenses. Potential cost and savings to the employee and the Government cannot be viewed in isolation of each other. An agency may not use appropriated funds to pay for items of personal expenses unless there is specific statutory authority. Exceptions to this rule have been permitted where the item primarily benefited the government. Incremental costs associated with the residential work place cannot be said to primarily benefit the government.

References: Comp. Gen. Decision B-225159 of 19 Jun 1989.http://www1.opm.gov/wrkfam/telecomm/telecomm.htm

13. Are business phone calls reimbursable if placed from home?

Answer: Yes, an employee may be reimbursed for business related long distance phone calls placed from the employee's personal phone. GSA regulations (41 CFR 101.7) provide for reimbursement on SF 1164 for telephone calls approved by the supervisor. Agencies may also provide employees with Government telephone credit cards.

Reference: GSA regulations (41 CFR 101.7).

14. Can appropriated funds be used to install telephones in private residences?

Answer: The installation of telephone lines is usually prohibited under 31 U.S. Code §1348, however, Public Law 104-52, § 620 allows (not requires) appropriated funds for the installation of telephone lines, necessary equipment, and payment of monthly charges in any private residence or private apartment of an employee who has been authorized to work at home in accordance with guidelines issued by the Office of Personnel Management. The head of the department, division, bureau, or office must certify that adequate safeguards against private misuse exist, and that the service is necessary for direct support of the agency's mission.

References: 31 U.S. Code §1348, Public Law 104-52, § 620

5 Enclosure (2)

15. Can appropriated funds be used to pay for identification/business/calling cards?

Answer: Yes, previously the cost of these cards was considered a personal rather than an official expense, however, Comp. Gen. Decision B-280759 now permits the purchase of business cards with appropriated funds, provided the agency determines the purchase is a necessary expense. Department of the Navy memorandum dated August 26, 1999 allows the printing of business cards using existing software and agency purchased card stock. Additionally, business cards may be purchased from The Lighthouse for the Blind, if the cost is equal to or less than the cost of producing the cards on a personal computer. General flag rank or civilian Senior Executive Service members must authorize the printing of business cards, which are to be used for official business only.

Reference: Comp. Gen Decision B-280759, (1998).

16. Can appropriated funds be used to purchase employee identification tags?

Answer: An agency may use appropriated funds to purchase employee identification tags which are not personal in nature, and are reasonably necessary to the operations of the agency. Each tag will be engraved with the command crest and identify the individual by name, rank and/or title.

Reference: Comp. Gen. B-237236, 11 Dec. 1989.

17. Can a non-exempt employee receive compensatory time in lieu of overtime, if requested?

Answer: Both Title 5 and the Fair Labor Standards Act govern non-exempt employee compensation to ensure that the employee is paid in the manner giving him/her the greatest benefit. If the non-exempt employee requests compensatory time in lieu of overtime, the request can be honored.

Reference: CFR 550.114, as defined in 5 USC 5541 (3).

18. Can agencies use appropriated funds to pay for Federal Employees News Digest subscriptions?

Answer: Yes, as long as the agency deems this a necessary expense.

Reference: Comp. Gen. Decision B-185591 of 5 May 1976.

19. Is it permissible for a spouse to ride in an official vehicle with the official traveler?

Answer: Yes, but the traveler must be on authorized official travel; the spouse accompanying him/her must be going to the same location as the traveler (without deviation); and there must be space available without the requirement for a larger vehicle.

6 Enclosure (2)

Reference: DODINST 4500.36-R, Chapter 2.

20. If a contract is canceled due to contractor default or for the convenience of the government, can a replacement contract be awarded citing either the current or expired line of accounting as applicable?

Answer: Yes, when a reprocurement action results in a replacement contract, it may be funded from either current or expired accounts if all of the following conditions are met: The DoD component has a continuing bona fide need for the goods or services involved. The original contract was made in good faith. The original contract was canceled due to a protest filed with the agency, federal court, or for

discrepancies discovered by the government in the absence of a protest. The replacement contract is substantially of the same size and scope as the original contract

(i.e. provides the same functionality). The cost may be more or less. Replacement is executed without undue delay (within 90 working days) after the original

contract is terminated.

References: DoD FMR Vol. 3 Chap.8, NAVCOMPT memo NCB-32 of Apr 1992.http://www.dtic.mil/comptroller/fmr/03/03_08.pdf

21. Can DoD personnel accept gifts of minimal value from foreign governments? Can government personnel accept gifts from other outside sources?

Answer: Gifts from foreign governments or other foreign dignitaries/companies are permissible if the gift is of minimal value. The acceptable minimal value increases every three years and is currently $260. 5 C.F.R. Part 2635, "Standards of Ethical Conduct for Employees of the Executive Branch" permits some gifts from outside sources including: unsolicited gifts valued at $20 or less; gifts based on a personal relationship (rather than the employee's position); discounts and similar benefits offered to all members of a class or group; awards and honorary degrees; and gifts based on an outside business or employment relationship.

References: Foreign Gifts Act (5 U.S.C. § 7342), 65 FR 45539, 5 C.F.R. Part 2635, and DOD 5500.7-R (JER).

22. Are there any limits on gifts given by a group?

Answer: Yes, regardless of the number of DoD employees contributing to a gift or gifts on a special infrequent occasion, a DoD employee may not accept a gift or gifts from a donating group if the market value exceeds an aggregate of $300, and if the DoD employee knows or has reason to know that any member of the donating group is his subordinate. The cost of food, refreshments, and entertainment provided to the DoD employee, and his personal guests to mark the occasion for which the gift is given shall not be included in determining whether the value of a gift or gifts exceeds the $300 aggregate limit. The value of a gift or gifts from 2 or more

7 Enclosure (2)

donating groups shall be aggregated and shall be considered as if from a single donating group, if the DoD employee offered the gift knows or has reason to know that an individual who is his subordinate is a member of more than one of the donating groups. The exception to the $300 limit is if the gift is to commemorate the termination of the superior/subordinate relationship, and the gift is appropriate to the occasion and uniquely related to the departing employee’s position or tour of duty.

Reference: DOD 5500.7-R, JER 2-203(a)(2).

23. Can appropriated funds be used to lease commercial parking spaces for government employees?

Answer: Yes, if an activity head or CO determines that the lack of parking facilities will significantly impair the operating efficiency at the activity, and will be detrimental to the hiring and retention of personnel. Additionally, if severely disabled employees are forced to pay parking costs higher than those paid by non-disabled employees working at the same facility, the agency can subsidize the difference.

References: Comp. Gen. Decision B-248247 of 15 Mar 1993, 63 Comp. Gen 270 (1984).

24. Can appropriated funds be used to buy bicycle safety helmets for all children on base, to be distributed during the National Safe Kids Campaign?

Answer: No, however, as an alternative, the applicable NAFI can purchase and then sell these helmets (at cost) to parents.

Reference: NAVSO P-1000, 073200.6, 075512.4.

25. Can the Navy negotiate with on-site colleges (providing classes for Naval personnel) to have the colleges pay for some of the services they receive from the base?

Answer: The host base, in negotiating an agreement with the college, can specify some reimbursement for services (i.e., telephone charges). However, usually these services are provided without cost, as they benefit Navy personnel. Reference: NAVSO P-1000, 075120, 75202.

26. Can air stations provide fuel (without cost) to non-governmental aircraft participating in air shows?

Answer: No, however, the air stations can use NAFs, or donations can be collected to pay for the fuel.

Reference: Guidebook for Navy MWR Involvement in Air Shows (March 1994).

8 Enclosure (2)

27. Can appropriated funds be used to pay for computers, telephone lines, etc. used by volunteers as part of the Volunteer Tax Assistance (VITA) program?

Answer: Yes, every VITA program is essentially a local program on each base supported by area commanders, who provide the necessary personnel, material, and resources to carry out the program to the extent permitted by local resources. The VITA program is generally executed as a component part of the Legal Assistance Program, or the Navy Family Service Center Program. The Legal Assistance Program is statutorily recognized as a resources permitting program under 10 U.S. Code § 1044. The Family Service Center Program and the Personal Financial Management Program operate under the SECNAV’s general authority for department leadership governed by 10 U. S. Code § 5013.

References: OJAG ltr 5801 Ser 36/055 dtd 6 May (Notal), CNO msg R 130010Z Dec 97.

28. Can appropriated funds be used to pay for the printing of placemats promoting Family Services, to be distributed on base at the McDonald’s?

Answer: No.

Reference: NAVSO P-1000, 073200.

29. What is the DON Policy regarding use of DoD telephones for personal calls? What is the policy regarding use of the Internet?

Answer: Employees are permitted to make personal calls to check in with a spouse and children; schedule necessary medical, home, and automobile appointments; and arrange bank or financial transactions. To ensure that such use does not adversely affect the performance of official duties and serves a legitimate public interest, this permission is subject to the following: Whenever possible, make calls before or after work hours, during lunch or other authorized

breaks. If calls are made during normal work hours, keep the communications infrequent and short. Do not incur any long distance charges or other usage fees for the Government. Use toll-free

numbers or charge the communications, access, or other fees to personal credit cards.

In addition, the Internet provides a tremendous resource of information interchange and other communication through mail list servers, databases, files, and web sites: Government computers may be used to access Internet resources for professional

development purposes, subject to ensuring that primary duties and mission are accomplished. Computers may also be used to access internet resources for other personal reasons, such as

routine e-mail correspondence with children away at college, reading business magazines, or checking stock quotes, but only before and after work hours, during lunch or other authorized breaks.

9 Enclosure (2)

In appropriate cases and with proper authorization, e-mail and other Internet access may be used in support of personal and private participation in non-Federal and not-for-profit professional organizations (see JER 3-305).

The Internet may not be used for the following: Introducing classified information into an unclassified system. Pornography, racist material, material promotive of hate crimes, or material that may have

an adverse effect on good order and discipline. To obtain, install, transfer, copy, or use software or other material in violation of patents,

copyrights, trade secrets, or licenses. Knowingly writing, coding, compiling, storing, transmitting, or transferring malicious

software code, including viruses, logic bombs, worms, and macro viruses. Promoting partisan political activity. Disseminating religious material outside an established command religious program. Using the system for personal financial gain, such as advertising or solicitation of services,

or sale of personal property, with the exception of utilizing a command approved mechanism such as a welfare and recreation electronic bulletin board for advertising personal items for sale.

Participating in gambling, chain letters, and chat rooms. Subscribing to mailing lists, and instant messenger. Initiating any type of hack into government networks either classified or unclassified.

References: DoD Regulation 5500.7, JER 3-305.http://www.atlanticfleet.navy.mil/clfinst.htm

30. Can appropriated funds be used to purchase items such as a refrigerator or microwave for the work duty area?

Answer: No, the government has no general responsibility to provide luncheon facilities for its employees. Exceptions have been made if employees are required to remain at their duty station for a full eight-hour shift, and no other readily accessible eating facilities are available.

References: 10 Comp.Gen 140 (1930), B173149 (1974), B-276601 (1997).

31. Can appropriated funds be used to print invitations for retirement ceremonies for military members?

Answer: Yes, however, if the retirement does not coincide with a change of command, the printing request needs to be signed by the activity officer-in-charge or other designated activity representative. This does not apply to civilian employees.

Reference: SECNAVINST 5603.2D.http://neds.nebt.daps.mil/Directives/5603d2.pdf

10 Enclosure (2)

32. Can O&MN funds (via GSA contract) be used to purchase sweat suits for military divers to wear (instead of wearing uniforms) while in transit from a completed mission? Can exercise clothing be purchased for ships' crew use?

Answer: No to both questions, exercise clothing is a personal expense. The only special clothing authorized for purchase with O&MN funds is organizational clothing like flight jackets, and clothing for food handling personnel. Initial issue of military clothing is under the MPN and RPN appropriations.

References: NAVSO P-1000, 075152, and Navy Uniform Regulations, para 6801.

33. Can service contracts extend beyond 30 September?

Answer: As a general rule, a service contract is funded by the current annual appropriation, however, severable service contracts may be entered into at any time during the fiscal year, and charges for up to twelve months of continuous service may be applied to that fiscal year. This does not apply to leases, as leases are not services.

Reference:http://www4.law.cornell.edu/uscode/10/2410a.html

34. Can a command grant a full day of administrative leave to create the effect of a holiday?

Answer: No, only the President can grant a holiday. Time off awards cannot be granted to create the effect of a holiday or treated as administrative excusals or leave.

Reference: DoD 1400.25-M, Subchapter 451, N.1.http://www.cpms.osd.mil/cpm/docs/451.pdf

35. Can an agency donate old computers to schools?

Answer: Yes, Executive Order 12999 provides authority to directly transfer excess computer equipment to schools and educational nonprofit organizations. Federal computer equipment must first be offered to other activities within an agency before being determined excess. After the determination is made, agencies can directly transfer excess computer equipment to schools and educational nonprofit organizations.

Reference:http://computers.fed.gov/School/user.asp

36. Can appropriated funds be used to purchase special water?

11 Enclosure (2)

Answer: Yes, provided the public water is unsafe for human consumption, an emergency failure of the water source on the installation has occurred, or the facility is temporary and does not have drinking water available within a reasonable distance.

Reference: DoD FMR Vol.10 Chap.12 120203.http://www.dtic.mil/comptroller/fmr/10/10_12.pdf

37. We are turning in leased servers that need replacing at a cost of $292,000. I have been reading the DoD FMR Vol. 2A, Chap.1, 010201 "Criteria for Determining Expense and Investment Costs", and based on what I have read it looks like these servers fall under investment guidelines. Am I correct?

Answer: No, with ADP always talk to the experts, and look carefully at the ASDP for system determination. After careful research, it was determined this was not a wholesale replacement of a system's components from leased to purchased equipment, instead, it was an expansion realized over the years matching recent server upgrades. This procurement would be an investment only if the unit cost of each server equaled or exceeded $100,000.

Reference: DoD FMR Vol. 2A Chap. 1 010201.http://www.dtic.mil/comptroller/fmr/02a/Chapter01.pdf

38. A 40-ton portal crane requires extensive repair. Specifically, it requires a new rotate bearing to maintain its current capability and useful life. The crane was purchased in FY 87 with Capital Purchase Program funds. At the time of purchase, the estimated useful life of the crane was 20 years. It appears the crane has been overburdened, and at the current wear rate the projected life expectancy will be the end of 2001. The bearing is not a stock item, but requires a 13-15 month lead-time to construct plus 30 days for installation. The cost of the bearing is $125K with installation estimated at $180K, for a total cost of $305K. Is this an investment or expense?

Answer: Two criteria for determining expenses are: Maintenance, repair, overhaul, rework of equipment. Assemblies, spares and repair parts, and other items of equipment that are not designated for

centralized item management and asset control, and which have a system unit cost less than the currently approved threshold of $100,000.

While the crane repair meets the first criterion, it fails the second since the cost of the rotate bearing exceeds the current threshold.Investments are: All items of equipment, including assemblies, ammunition and explosives, modification kits

(the components of which are known at the outset of the modification), and spares and repair parts not managed by the DWCF that are subject to centralized item management and asset control.

All equipment items that are not subject to centralized item management and asset control, and have a system unit cost equal to or greater than the current threshold.

12 Enclosure (2)

The investment criteria refer to repair parts, which are centrally managed and imply that other non-centrally managed items exceeding the expense and investment threshold are investments. To determine the correct appropriation for purchase of the crane’s repair part, CINCLANTFLT requested clarification from OUSD(C). It was determined that repair or rework of equipment to maintain its designated service life is an expense regardless of the cost. In this case, since there are no changes to the capability of the equipment, the repair part would be an expense.

Reference: DoD FMR Vol. 2A Chap.1 010201.http://www.dtic.mil/comptroller/fmr/02a/Chapter01.pdf

39. The photo lab aboard one of our carriers needs replacement, as it no longer meets the requirement for providing the latest real-time imagery. Replacement costs are in excess of $100k. Is this an expense or investment?

Answer: Initially this appeared to be a repair-by-replacement issue, which in the past was an expense regardless of cost, however, according to the latest guidance this expenditure is treated as a full item (not internal component) replacement, and the current investment threshold of $100,000 applies. OPN funding is required for procurement.

Reference: DoD FMR Vol. 2A Chap.1 010201.http://www.dtic.mil/comptroller/fmr/02a/Chapter01.pdf

40. Can command coins purchased with OPTAR/O&MN money be given away to dignitaries, visitors, personnel of other naval activities, etc.? Moreover, are the rules governing the purchase of momentos different for Admirals given their constant goodwill exposure to the public?

Answer: One of the basic rules in appropriations law is that appropriated funds can only be used for authorized purposes. 31 U.S.C.§ 1301(a) states that there has long been a prohibition against the use of appropriated funds for the purchase of items classified as personal gifts. These are generally defined as items of intrinsic value that are usually given away to non-employees, although they may also be given to employees of the federal government, see 68 Comp. Gen. 226 (1989), 52 Comp. Gen. 770 (1974), and 54 Comp. Gen. 976 (1975). Such items can only be purchased if one of these requirements is satisfied: (1) there is specific statutory authority permitting its purchase; or (2) the purchase of such items is shown to be reasonably necessary to the proper execution of an authorized purpose or function of the agency. Examples are the Government Employees Incentives Awards Act, 5 U.S.C.§ 4501, which authorizes agencies to make monetary and honorary awards to outstanding civilian employees of the federal government, and the Navy Incentives Awards Program, which allows the same for military personnel. Additionally, SECNAVINST 7042.7J authorizes the use of Official Representation Funds (ORF) to procure gifts and mementos for official dignitaries. It must be shown that purchasing the item in question furthers the purpose of the appropriation. The relationship between the expenditure and the authorized function must not be attenuated. A strong link must exist between the expenditure and the policy, goal, and/or intent of the law, B-260260,

13 Enclosure (2)

December 28, 1995. In SECNAVINST 7042.7J, the Navy reiterates the long established rule prohibiting the purchase of personal gifts. Moreover, it states that mementos purchased with ORF funding must carry a command or official theme, and must be given to an appropriately designated person. If not, these mementos may be designated personal gifts, and therefore unauthorized. According to a memo from the Office of the Under Secretary of the Navy, R. L. Carter, dated 10 June 1996 "Official Representation Funds", the purchase of clothing apparel with ORF money is still prohibited. However, the purchase of ship/command baseball-caps continues to be authorized under ORF since they have become “symbolic of Navy activities afloat and ashore.” Finally, in so far as these rules are concerned, neither the law nor DoD/DON policy distinguishes between officers with extensive goodwill exposure to the public, and military personnel with a more limited public relations role. All Navy personnel, including Admirals, Captains, and Commanders must adhere to these appropriations expenditures guidelines.

References: 31 U.S.C.§ 1301(a), 5 U.S.C.§ 4501, 68 Comp. Gen. 226 (1989), 52 Comp. Gen. 770 (1974), 54 Comp. Gen. 976 (1975), B-260260 Dec 28, 1995, and SECNAVINST 7042.7J.

41. Can we use appropriated funds to pay for telephone lines (carelines) in the ombudsman's residence? What about cellular phones, per-minute charges for personal cellular phones, or beepers?

Answer: No, these are unauthorized expenditures and constitute a 31 U.S. Code §1301(a) violation.

Reference: OPNAVINST 1750.1D.

42. When secure communication/NMCI equipment and attendant connectivity is required by the occupant of General and Flag Officer's Quarters (GFOQ) to perform his or her mission, how is this equipment and connectivity funded?

Answer: Any infrastructure cost that is built-in and becomes part of the GFOQ, like wiring or fiber optics associated with specialized communication/NMCI equipment is charged to the Family Housing appropriation. According to the DoD FMR, the Family Housing appropriation pays for "roads, driveways, walks, and utility systems, which primarily serve family housing units or areas." If a secure communications line must be installed from the Host's communication trunk infrastructure to the GFOQ, this installation must be funded by the Family Housing appropriation. In the case of NMCI service, the NMCI equipment is also funded by the Family Housing appropriation. Only the specialized voice communication equipment and associated installation costs may be charged to the O&MN appropriation. Specialized communication equipment does not include normal telephone requirements.

References: NAVSO P-1000 074542, DoD FMR Vol 2b Chap.6.https://66.89.193.126/FMA/FMA3Publications.htmhttp://www.dtic.mil/comptroller/fmr/02b/Chapter06.pdf

14 Enclosure (2)

FINANCIAL MANAGEMENT REGULATIONS

Volume Document Title Change Date

1 GENERAL FINANCIAL MANAGEMENT INFORMATION, SYSTEMS AND REQUIREMENTS APR 2001

2A BUDGET FORMULATION AND PRESENTATION (CHAPTERS 1-3) JUN 2000

2B BUDGET FORMULATION AND PRESENTATION (CHAPTERS 4-19) JUN 2000

3 BUDGET EXECUTION - AVAILABILITY AND USE OF BUDGETARY RESOURCES JAN 2001

4 ACCOUNTING POLICY AND PROCEDURES JAN 2001

5 DISBURSING POLICY AND PROCEDURES DEC 2001

6A REPORTING POLICY AND PROCEDURES MAR 2002

6B FORM AND CONTENT OF THE DEPARTMENT OF DEFENSE AUDITED FINANCIAL STATEMENTS JAN 2002

7A MILITARY PAY POLICY AND PROCEDURES - ACTIVE DUTY AND RESERVE PAY FEB 2002

7B MILITARY PAY POLICY AND PROCEDURES - RETIRED PAY JUN 2001

7C SPECIAL MILITARY PAY/PERSONNEL PROGRAMS AND OPERATING PROCEDURES NOV 2000

8 CIVILIAN PAY POLICY AND PROCEDURES FEB 2002

9 TRAVEL POLICY AND PROCEDURES SEP 2000

10 CONTRACT PAYMENT POLICY AND PROCEDURES MAR 2002

11A REIMBURSABLE OPERATIONS, POLICY AND PROCEDURES MAY 2001

11B REIMBURSABLE OPERATIONS, POLICY AND PROCEDURES - WORKING CAPITAL FUNDS (WCF) DEC 1994

12 SPECIAL ACCOUNTS, FUNDS AND PROGRAMS JAN 2002

13 NONAPPROPRIATED FUNDS POLICY AND PROCEDURES AUG 1994

14 ADMINISTRATIVE CONTROL OF FUNDS AND ANTIDEFICIENCY ACT VIOLATIONS MAR 2001

15 SECURITY ASSISTANCE POLICY AND PROCEDURES APR 2002

NOTE: The Navy Disbursing Manual, NAVCOMPT Vol. 4 was superseded by the DoD FMR, volume 5. Because this Manual does not address all of the specific Navy issues, the NAVCOMPT volume 4 is still being used within the Navy for specific Navy guidance. Former NAVCOMPT Manuals are still in force, with most being maintained by DFAS. In cases of conflict between the DoD FMR guidance and the older NAVCOMPT manuals, the DoD FMRs have precedence. DoD FMRs are available on the World Wide Web at:

http://www.dtic.mil/comptroller/fmr/

1 Enclosure (3)

SUPPLEMENTAL NAVY GUIDANCE

NAVSO P-409 MILSTRIP/MILSTRAP Desk Guide

NAVSO P-1000 Financial Management Policy Manual MS Word file

NAVSO P-1000-2Navy Comptroller Manual Vol. 2, Accounting Classifications

CHANGE 373

NAVSO P-1000-2-5 Unit Identification Codes Rev. 73-1   (Available on CD ROM)

NAVSO P-1000-3 Navy Comptroller Manual Vol. 3, Appropriation Cost and Property Accounting (Field)

NAVSO P-1000-5 Navy Comptroller Manual Vol. 5, Navy and Marine Corps Industrial Fund

NAVSO P-1000-8 Navy Comptroller Manual Vol. 8, Financial Inventory, Accounting, Reporting and Billing

NAVSO P-2345 Index of Forms & Publications

NAVSO P-3006 Financial Management Resources Operation and Maintenance (Shore Activities)

NAVSO P-3013-1 Financial Management of Resources Fund Administration (Operating Forces)

NAVSO P-3013-2 Financial Management of Resources, Operating Procedures (Operating Forces)

NAVSO P-3014 Financial Management of Resources (Department Level of Accounting)

NAVSO P-3062-1 Financial Management of Resources - RDT&E Part 1 (Department Level)

NAVSO P-3062-2 Financial Management of Resources - RDT&E Part 2 (Activity Level)

NAVSO P-3582 Financial Management Guidebook for Commanding Officers

NAVSO P-3670 Navy Acquisition Procedures Supplement

NAVSO P-3680 Environmental Guidelines

NAVSO P-3687 Producibility System Guidelines for Successful Companies, ".... The Five Steps to Success."

NAVSO P-5239-01 Introduction to Information Systems Security

NAVSO P-5239-02 Terms, Abbreviations and Acronyms

1 Enclosure (4)

NAVSO P-5239-03 Designated Approving Authority Guidebook

NAVSO P-5239-04 Information Systems Security Manager Guidebook

NAVSO P-5239-07 Information Systems Security Officer Guidebook

NAVSO P-5239-08 Network Security Officer Guidebook

NAVSO P-5239-10 Assessed Product List

NAVSO P-5239-11 System Security Requirements Development

NAVSO P-5239-12 Acquisition Life Cycle Guidebook (PMs/Developers)

NAVSO P-5239-13 Certification & Accreditation Guidebook

NAVSO P-5239-14 Security Architecture Guidebook

NAVSO P-5239-15 Controlled Access Protection Guidebook

NAVSO P-5239-16 Risk Assessment Guidebook

NAVSO P-5239-18 Security Test & Evaluation Guidebook

NAVSO P-5239-19 Computer Incident Response Guidebook

NAVSO P-5239-23 COMSEC Embedding Guidebook

NAVSO P-5239-26 Reemergence Security Guidebook

NAVSO P-5239-29 Controls Over Copyrighted Computer Software

NAVSO P6034 Joint Travel Regs Volumes 1 and 2 (Available on CD ROM)

2 Enclosure (4)

ADDITIONAL RESOURCES

NAVSO Publicationshttps://66.89.193.126/FMA/FMA3Publications.htm

General Accounting Office, Comptroller General Decisions http://www.access.gpo.gov/su_docs/aces/aces170.shtml

The U.S. Codehttp://www4.law.cornell.edu/uscode/topn/U.S. Code Search

SECNAV/OPNAV Instructionshttp://neds.nebt.daps.mil/Directives/dirindex.html

Office of the Assistant Secretary of the Navy Financial Management and Comptrollerhttp://navweb.secnav.navy.mil/

Appropriations Law and other Federal Travel Policyhttp://www.cfo.doe.gov/policy/travel/travel2.htm

Joint Travel Regulationshttp://www.dtic.mil/perdiem/trvlregs.html

Joint Financial Management Improvement Programhttp://www.jfmip.gov/jfmip/default.asp

The Code of Federal Regulationshttp://www.access.gpo.gov/nara/cfr/

CINCLANTFLT Notices and Instructionshttp://www.atlanticfleet.navy.mil/clfinst.htm

Fiscal Law Traininghttp://navweb.secnav.navy.mil/fmc/tnginfo.htm

DoD Directives and InstructionsWHS Directives

1 Enclosure (5)