DEFENSE SECURITY COOPERATION AGENCY 2800 DEFENSE PENTAGON WASHINGTON, D.C. 20301-2800

3/18/2022

MEMORANDUM FOR :

DEPUTY UNDER SECRETARY OF THE AIR FORCE FOR INTERNATIONAL AFFAIRS
DEPUTY ASSISTANT SECRETARY OF THE ARMY FOR DEFENSE EXPORTS AND COOPERATION
DEPUTY ASSISTANT SECRETARY OF THE NAVY FOR INTERNATIONAL PROGRAMS
DIRECTOR, DEFENSE CONTRACT MANAGEMENT AGENCY
DIRECTOR, DEFENSE INFORMATION SYSTEMS AGENCY
DIRECTOR, DEFENSE LOGISTICS AGENCY
DIRECTOR, DEFENSE THREAT REDUCTION AGENCY
DIRECTOR, MISSILE DEFENSE AGENCY
DIRECTOR, NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY
DIRECTOR FOR SECURITY ASSISTANCE, DEFENSE FINANCE AND ACCOUNTING SERVICE - INDIANAPOLIS OPERATIONS
DIRECTOR OF CYBERSECURITY DIRECTORATE AND DEPUTY NATIONAL MANAGER FOR NATIONAL SECURITY SYSTEMS, NATIONAL SECURITY AGENCY

SUBJECT :

Security Assistance Management Manual Policy Memorandum 22-29, Business Process Review Procedures Update [SAMM E-Change 577]

REFERENCE :

1. United States Government Accountability Office (GAO) Report to Congressional Committees, GAO 18-553, "Foreign Military Sales: Financial Oversight of the Use of Overhead Funds Needs Strengthening," July 30, 2018

This memorandum updates policy on Business Process Reviews to ensure the Security Cooperation community is appropriately spending Foreign Military Sales (FMS) administrative funds. This policy is in direct response to recommendation six of the referenced United States GAO report, which requires DSCA to conduct periodic reviews of other Department of Defense Components' business processes for administrative funds based on a risk-based approach. This memorandum is effective immediately.

Based on the findings of an initial FY2021 feasibility study on risk-based criteria, the Defense Security Cooperation Agency (DSCA) Office of Business Operations (OBO), with concurrence from GAO, identified random selection as an acceptable risk-based approach.

DSCA OBO will work with the Security Cooperation community to further refine and strengthen the random selection methodology by identifying additional risk-based criteria to incorporate into the methodology. DSCA OBO will coordinate and communicate any changes or updates to the random selection methodology

The policy in the attachment is incorporated into the DSCA Security Assistance Management Manual (SAMM) at https://samm.dsca.mil. Cleared for public release.

If you have questions on this memorandum, please contact Ms. Wendy Pouliot, DSCA OBO/FPRE/FP, 703-692-1316 or wendy.pouliot.civ@mail.mil.

J. Aaron Harding
Chief Operating Officer and Chief Financial Officer
Defense Security Cooperation Agency

ATTACHMENT :
As stated