TAB 1 - Defense Security Cooperation Agency Standard Operating Procedure (SOP)

Financial Management of FY 2010 Afghanistan Security Forces Fund, Iraq Security Forces Fund, Pakistan Counterinsurgency Fund and 1206 Train and Equip Programs

1. Background. Managing expiring funds through the FMS process is a challenge. All participants must work together to overcome obstacles with adequate planning and timely execution. By realizing the inherent limitations of managing expiring funds in the FMS system, and following the guidelines outlined in this Standard Operating Procedure, we can continue to improve the procedures for program execution.
2. Deadlines. DSCA developed timelines establishing deadlines for the Military Services to meet in order to obligate funds prior to the close of the fiscal year. ¹
   1. February 10, 2010. February 10, 2010, is the deadline to send the requirements to the Services, for new contracts, so they can begin to write the pseudo-cases. The activity which develops the requirement is responsible for submitting sufficient detail such that a person not familiar with the item can order the proper item from the supply system or purchase it through the acquisition process. Please consider complex new contract cases or high dollar value cases, as they will require the longest time of all case types to process. The risk of failure increases if the requirements for these cases are not sent to the Services by this deadline. In the event funds are withheld for program allocation later in the year, later cases should be executed using existing contract vehicles. By meeting the February 10 suspense for the majority of cases, there is less risk of failure for the remaining cases.
   2. March 10, 2010. March 10, 2010, is the deadline to send to the Services requirements that can be supported by existing contracts, so the Services can write the cases. Some existing contracts will allow identification of requirements after this March 10 deadline; however, experience has shown these particular requirements should be simple and readily available. The length of time to develop a pseudo-case and then obligate funds on an existing contract vehicle will ultimately depend on the complexity of the requirement.
      Because the current practice of using tranche notifications for Section1206 cases, meeting these dates for final tranche notifications may prove impossible. As such, these remaining cases will be treated on an exceptional basis.
   3. May 11, 2010. May 11, 2010, is the deadline for the Implementing Agency (IA) Case Managers to complete and submit to the DSCA Case Writing Division (CWD) all pseudo Letters of Offer and Acceptance (pseudo-LOAs), requiring contracting of items not currently supported by an existing contract vehicle. Initial procurement actions may require the acquisition community to take more extensive contractual actions in order to complete the contracting action, get the item on contract, and identify residual excess funding. This deadline allows DSCA, the Defense Finance and Accounting Service (DFAS), the Department of State (STATE), and the IA, adequate processing time to ensure contracting actions are provided to the Military Service contracting elements by June 30, 2010. In turn the Military Services will then have three months to establish the obligation.
   4. June 10, 2010. June 10, 2010, is the deadline for the IA Case Managers to complete and submit to the DSCA CWD, all pseudo LOAs requiring the contract for items or services currently supported by an existing contracting vehicle. This deadline applies to Defense Working Capital Fund (DWCF) items or any off-the-shelf requisition items. This will allow DSCA, DFAS, STATE, and the Office of the Secretary of Defense (OSD) processing time to ensure contracting action delivery to the Military Service contracting elements by August 3, 2010. Once received, the Military Services will then have two months to establish the obligation- up to September 30, 2010.
3. Residuals: The Foreign Military Sales (FMS) process requires IAs to develop a pseudo LOA, which creates the obligation authority for the contracting community. Often the funds estimated on the LOA are greater than those actually needed to execute the contract. Excess funds on these pseudo FMS cases are referred to as residual funds. Using these residual funds can be a significant challenge because of the short time remaining. The first choice should be to use the funds within the case; second choice is to move those residual funds to another case or another country program, if 1206. IAs must identify residual funds on new contracts in accordance with the dates outlined below, starting with identifying the funds requiring to be used on a new line or case by July 9, 2010 or as soon as possible.
   1. 1206. Once IA Case Managers identify residual funds from the 2010 submissions and determine they cannot be used within the current pseudo FMS case, even if the pseudo-case were to be amended, funds must be released from the current case immediately. The DSCA 1206 Program Manager will evaluate whether other pieces of the specific country program were notified to Congress and could be increased with the residual funds. If not, the DSCA 1206 Program Manager will discuss the issue with OSD and will propose potential re-notification to Congress, if remaining time exists. Late-identified residual funds should only be used for items that are on existing contracts or requisition items from the IAs' existing systems.
   2. ASFF. Once the IA Case Manager identifies residual funds that cannot be used within the current case, a case modification reducing the case value must be submitted to the DSCA CWD allowing CSTC-A to:
      1. Apply to other new cases identified by CSTC-A for the appropriate Budget Activity Groups/Sub-Budget Activity Groups (BAG/SAG) funds. CSTC-A must select this option no later than July 9, 2010.
      2. Reimburse the Government of Afghanistan for Army or Guard Forces salaries. CSTC-A must select this option no later than September 1, 2010.
      3. Donate to the United Nations Law and Order Trust Fund Afghanistan (U.N. LOTFA) program for Afghan Police salaries. CSTC-A must select this option no later than September 1, 2010.
   3. ISFF. Once the IA Case Manager identifies residual funds from the May 11, 2010 submissions and determines there is no further use for them on the case, the IAs must identify them to DSCA. The IA Case Manager must also immediately initiate a case modification to return residual funds. During the modification's countersignature process, DSCA will initiate and issue the appropriate documentation to return the funds to MNSTC-I. Case modifications returning residual funds must be at DSCA CWD no later than July 20, 2010, in order to ensure funds are returned to MNSTC-I and are available for other uses prior to their expiration.
   4. PCF. Once the IA Case Manager identifies residual funds that cannot be used within the current case, a case modification reducing the case value must be submitted to the DSCA CWD allowing the ODR-P to apply the funds to other cases within the applicable BAG/SAG.
4. July 6, 2010. July 6, 2010 is the deadline for cases requiring new contracts to be sent to acquisition.
5. August 3, 2010. August 3, 2010 is the deadline for cases with existing contracts to be sent to acquisition.

LOR Submissions to Services

LOA Submissions to CWD

RESIDUALS

5. STATE, DFAS, and IA processing requirements. The following times should be used as general guidance for DSCA, STATE, DFAS, and IA process requirements.

TOTAL PROCESSING REQUIREMENTS

6. Total standard DSCA/STATE/DFAS, IA processing time. The following times should be used as general guidance for DSCA, STATE, DFAS, and IA total processing requirements.

TOTAL PROCESSING TIME

7. Extraordinary cases. DSCA will address extraordinary processing requirements, emergency late submissions, and late residual fund identification issues on a case-by-case basis. Attachment 2 outlines the processing steps from the time the pseudo cases arrive at the DSCA CWD through its release to the Services and subsequent delivery to the contracting community. Attachment 3 documents emergency procedures for managing late-developing end-of-year requirements.
8. Additional guidelines. The following are additional guidelines to follow when working ASFF, PCF, ISFF and 1206 pseudo case programs:
   1. As soon as possible, identify residual funds and reprogram them within the existing pseudo case to another line for items already on an existing contract as a first choice to ensure prompt use of the funding.
   2. Although deadlines are provided, submission of Letters of Request (LORs) and LOAs prior to the deadline are highly encouraged.
   3. When at all possible, request items already on existing Service contracts. For ASFF, the first option is to buy more quantities of the item being purchased.
9. This SOP is effective immediately.

====== Notes: ====== ¹
Both Combined Security Transition Command- Afghanistan (CSTC-A) and Multi National Security Transition Command- Iraq (MNSTC-I) already have obligation plans. The timeline chart at Attachment 1 will be expanded to incorporate those plans where possible.

TAB 2 - Financial Timeline and Milestones

TAB 3 - DFAS Emergency End-Of-Year Process Procedure

PLEASE NOTE: All year-end emergency transactions must be communicated with ALL parties prior to execution. Year-end timeframes/availability may change suddenly, so it is imperative to ensure all tasks can be completed as described below prior to beginning the process.

Year-end procedures for 1206 & ASFF & PCF emergency case implementation

1. DSCA submits the memo or funding letter, containing the appropriation where the funds currently reside and sends this letter to DFAS SAA for action. This funding letter authorizes DFAS to move the funds from this appropriation and into the Trust Fund (97 8242) holding account as authorized by the memo.
2. DSCA will provide the FAD for funding, as well as a flat-file for obligations to the DFAS Accounts Maintenance and Control (AM&C) office supporting their general fund accounting.
3. DFAS AM&C will manually load the FAD and the obligations into WAAS.
4. Depending on the type of appropriation listed in the funding letter from DSCA, JAXBC (Country Programs Branch) will prepare a voucher and submit it to JAXBA (Corporate Accounting) for processing.
   1. 1081 voucher: 97* or 21* appropriations with FSN of 012141
   2. IPAC voucher: All other appropriations and/or FSNs
5. JAXBA processes the voucher and sends to JAXAA (Continuing Government Activities - Operations) for Certification. Per DFAS Legal Office the funds are considered in the Trust Fund once the voucher is certified.
6. JAXAA will notify JAXBA once the voucher is certified and JAXBA will notify JAXBC the voucher has been certified.
7. JAXBC will notify DSCA when the voucher is certified.
8. DSCA will emergency implement the case within DSAMS and notify the Implementing Agency (IA) that funds are available for obligation.
9. For Army cases only:
   1. CISIL will pass the basic case information into Program and Budget Accounting System (PBAS). The IA will contact JAXBA EA Team to request the LOA information be manually implemented in PBAS.
   2. JAXBA EA Team will notify the IA upon implementing the LOA in PBAS and the IA will enter the "OA Approval," "FINIMP," and "MILIMP" milestones in DSAMS.
10. JAXBA will send the voucher to DFAS-IN Disbursing for posting to Treasury (collection posted to Trust Fund).
11. The voucher will be posted in DIFS (collection showing in holding account) and WAAS.
12. After an over-night DIFS update loading the case, JAXBC loads basic case information and moves the case to "A" status.
13. JAXBC processes a SM transaction to move the funds from the holding account to the case for implementation. This action will catch DIFS up with the emergency implementation.

Year-end procedures for ISFF Emergency Case Implementation

NOTE: Due to year-end cut-offs all IPAC transactions must be coordinated in writing by those issuing and accepting the transactions in advance.

1. DSCA sends MIPR Acceptance (DD Form 448-2) to MNSTC-I/J8 -Gulf Region Division (GRD)
2. GRD obligates
3. USACE Finance Center disburses funds to the appropriation
4. DSCA sends billing document to USACE; info copy to DFAS
5. USACE inputs IPAC transaction
6. DFAS accepts IPAC Transaction
7. JAXBA creates 1081 to move funds from IPAC Suspense to Holding Account
8. JAXAA will notify JAXBA once the voucher is certified and JAXBA will notify JAXBC the voucher has been certified.
9. JAXBC will notify DSCA when the voucher is certified.
10. JAXBA will send the voucher to DFAS-IN Disbursing for posting to Treasury (collection posted to Trust Fund).
11. The voucher will be posted in DIFS with the collection showing in a holding account.
12. After an over-night DIFS update loading the case, JAXBC loads basic case information and moves the case to "A" status.
13. JAXBC processes a SM transaction to move the funds from the holding account to the case for implementation. This action will catch DIFS up with the emergency implementation.

DFAS EMERGENCY END-OF-YEAR PROCESS PROCEDURE POINTS OF CONTACT
DFAS-IN SAA: Director: Tim Kuhl, 317-510-6565

JAXBC (Country Programs)

• Supervisor (Acting): Betty Maxey, 317-510-1721
• 1206 Funds, Frontier (S7): Colin Nowling, 317-510-7707
• ISFF, ASFF: Colin Nowling, 317-510-7707
• PCF: Emma Lawrence, 317-510-7662

JAXBA (Corporate Accounting)

• Supervisor: Robert Spriggs, 317-510-7262
• Voucher Team: Casey Dressler, 317-510-1844
• Voucher Team: Marsha White, 317-510-1198
• EA Team: Thomas Robinson, 317-510-7687
• EA Team: Lynn Henderson, 317-510-1409

JAXAA (CGA, Operations)

• Supervisor: Kelly Pickett, 317-510-3281
• Certifier: Darryl Wheeler, 317-510-1568
• Certifier: Margaret Brewer, 317-510-1763

DFAS-IN AM&C:

• Supervisor: Kelly Anderson, 317-510-8041
• Accountant: Jan Brewer, 317-510-7787

DFAS-IN DISBURSING:

• IPAC Supervisor: Beth Ziliak, 317-510-2753
• IPAC: Mark Angellotti, 317-510-8510
• IPAC: Chun Lin, 317-510-8920
• IPAC: Thomas Davis, 317-510-8828
• Voucher Processing Supervisor: Karen Flint, 317-510-5414
• Voucher Processing: Liz Duncan, 317-510-6308
• Voucher Processing: Timothy Iams, 317-510-8601

USACE:

• Deputy Director, Finance: Anne. M. Schmitt-Shoemaker, 901-874-8648
• Disbursing Officer: Kevin Heath, 901-874-8535
• Supervisory Accountant: Miranda Gibson, 901-874-8426