Attachment A
Offsetting Collections to the Special Defense Acquisition Fund Updates

Overview:

The Special Defense Acquisition Fund (SDAF) is a revolving fund used to finance the procurement of defense articles and defense services in anticipation of their future transfer to foreign governments and international organizations. As authorized in Section 51(b) of the AECA, there are three sources of collections that fund the SDAF account: items not requiring replacement, nonrecurring cost charges, and asset use charges. This attachment provides updates for developing and processing collection packages including: (1) proper documentation when submitting offsetting collection vouchers to the DFAS; and (2) the appropriate line of accounting attributes that must be included on the Standard Form (SF) 1080 voucher to be compliant with the SFIS for the office receiving funds.

FMS Offsetting Collection Vouchers:

Implementing Agencies (IAs) and Military Departments (MILDEPs) must provide complete and accurate offsetting collections packages to DFAS. The guidance below ensures each offsetting collections package developed by the IAs and MILDEPs is standardized to enable more efficient DFAS processing. Complete packages include:

1. A complete and electronically signed and certified SF 1080;
2. A copy of the obligating document at a case/line level;
3. Confirmation that delivery has occurred for articles on the case or charges have been billed for non-recurring cost and asset use charges;
4. The most current implemented version of the FMS case; and
5. Additional documentation DFAS can use to validate the collection type (e.g., pricing reports, contracting information, RP069 reports, etc.).

The voucher must be sent to the appropriate MILDEP/IA DFAS servicing office within 30 calendar days of delivery reporting being complete or charges being billed to the foreign partner. Additionally, the package should not be sent to DFAS without confirmation of delivery or charges billed. The certifying official should review packages for accuracy and completeness before signing. The below SFIS attributes must be included for the Office receiving funds (the SDAF side) of the voucher. These attributes include:

Table 1-1: SFIS Attributes and Names 

Identifying the SFIS on Offsetting Collection Vouchers:

All vouchers must have the required SFIS attributes in the line of accounting with all funds being provided to the SDAF account 97-11X 4116. Starting October 1, 2021 (FY 2022), IAs and MILDEPs identifying offsetting collections and preparing vouchers to transfer funds to the SDAF account must use appropriate SFIS attributes in the line of accounting consistent with Table 1-1. DSCA will use these lines of accounting to review and reconcile the SDAF offsetting collection data monthly. No Foreign Military Sales (FMS) or Building Partner Capacity (BPC) case implemented prior to FY 2022 needs to be amended.

SDAF Account Crosswalk:

The limits previously used to identify offsetting collections eligible to be collected to the SDAF account are being updated for FY 2022 and forward. Previous offsetting collections limits from FY 2012 - FY 2021 will remain valid. Table 1-2 on the following page identifies the new limits and the appropriate SFIS attributes to use when completing a voucher. For questions on the Table 1-2 or the SFIS attributes reference the DFAS Manual 7097, please contact the POCs provided to this memorandum.

Table 1-2: SDAF Account Crosswalk for New SFIS Attributes: