- Policy Memos
|Memo Status : Active|
DEFENSE SECURITY COOPERATION AGENCY
MEMORANDUM FOR :
Availability Foreign Military Financing (FMF) and Peacekeeping Operations (PKO) Funds (DSCA 06-51) [SAMM E-Change 54]
This memorandum transmits the Assistant Secretary of State for Political-Military Affairs' letter of October 27, 2006 and updates the Security Assistance Management Manual (SAMM) concerning when transfers of Foreign Military Financing (FMF) and Peacekeeping Operations (PKO) funds to the FMS Trust Fund are treated as expended. As explained in the letter, once transferred to the 8242 trust fund account, FMF and PKO funds are expended and remain available indefinitely for disbursements consistent with the purposes for which there were appropriated, obligated, and expended.
Effective immediately, the SAMM, is updated as follows to provide guidance on the expenditure of FMF funds.
Insert: C184.108.40.206.4. Expenditure of FMF Funds. Transfers of FMF funds to the FMS Trust Fund account are expenditure transfers. Once transferred, FMF funds are expended and remain available indefinitely for disbursements consistent with the purposes for which they were appropriated, obligated, and expended.
My point of contact for this action is Ms. Patricia Higgins, DSCA/DBO/FPA, firstname.lastname@example.org, (703)604-6570.
Keith B. Webster
DEPUTY ASSISTANT SECRETARY OF THE ARMY
DEFENSE EXPORTS AND COOPERATION (DASA-DEC)
DEPARTMENT OF THE ARMY
DEPUTY ASSISTANT SECRETARY OF THE NAVY
INTERNATIONAL PROGRAMS (NAVIPO)
DEPARTMENT OF THE NAVY
DEPUTY UNDER SECRETARY OF THE AIR FORCE
INTERNATIONAL AFFAIRS (SAF/IA)
DEPARTMENT OF THE AIR FORCE
DIRECTOR, DEFENSE LOGISTICS AGENCY
DIRECTOR, NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY
DIRECTOR, DEFENSE THREAT REDUCTION AGENCY
DIRECTOR, DEFENSE REUTILIZATION AND MARKETING SERVICE
DIRECTOR, DEFENSE CONTRACT MANAGEMENT AGENCY
DIRECTOR, DEFENSE INFORMATION SYSTEMS AGENCY
DIRECTOR, DEFENSE LOGISTICS INFORMATION SERVICE
DEPUTY DIRECTOR FOR INFORMATION ASSURANCE,
NATIONAL SECURITY AGENCY
DEPUTY DIRECTOR FOR SECURITY ASSISTANCE,
DEFENSE FINANCE AND ACCOUNTING SERVICE - DENVER CENTER
United States Department of State
Assistant Secretary of State for Political-Military Affairs
Washington DC, 20520
Lieutenant General Jeffrey B. Kohler, USAF
Defense Security Cooperation Agency
2800 Defense Pentagon
Washington, DC 20301-2800
Dear General Kohler:
On September 28, State and DSCA legal and financial officials met to discuss the availability of Foreign Military Financing (FMF) and Peacekeeping Operations (PKO) funds. As a follow-up to my letter dated January 3, 2006 regarding fiscal practices concerning "expenditure" of the Foreign Military Financing (FMF) funds, I wanted to let you know that DSCA and State are in agreement that once transferred to the 8242 trust fund account held at DSCA, both FMF and PKO funds are expended and would e treated, as in the past, as remaining available indefin9itelyt for disbursements consistent with the purposes for which they were appropriated, obligated or expended. This includes any residual funds that may remain after closing or otherwise modifying a case. In the future, State may wish to discuss the possibility of a mechanism whereby PKO could be obligated but remain unexpended for a longer period of time so as to maintain maximum flexibility to achieve policy goals.
I appreciate your staff's effort to work cooperatively with State officials to resolve this long-standing issue. I look forward to working with you in the future.