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

4/14/2022

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 22-28, Financial Statement Audit Note for International Partner Awareness [SAMM E-Change 576]

REFERENCE :

1. Chief Financial Officers (CFOs) Act of 1990 (P.L. 101-576)
2. Government Management Reform Act (GMRA) of 1994 (P.L. 103-356)
3. Federal Financial Management Improvement Act of 1996 (P.L. 104-208)

The purpose of this memorandum is to incorporate a new note to Letters of Offer and Acceptance (LOA) to inform international partners that Security Assistance Accounts (SAAs) are subject to U.S. government financial audits. This note is mandatory on all Foreign Military Sales (FMS) LOAs implemented after the date of this memorandum. Additionally, this note must be included on future amendments when the note is not currently listed on the implemented LOA.

As of FY 2022, the SAAs will undergo a financial statement audit on an annual basis as required by references (a), (b), and (c). The SAAs are a group of U.S. Treasury accounts used to execute security assistance activities including the FMS, Foreign Military Financing, Foreign Military Loan and Subsidiary Accounts, and the Special Defense Acquisition Fund. The addition of the financial statement audit note ensures international partners understand that a LOA and any associated transactions may be reviewed by an Independent Public Accountant to ensure transactions meet all applicable U.S. laws and regulations.

The policy memorandum E-Change 576 in the attachment is incorporated into the DSCA Security Assistance Management Manual (SAMM) at https://samm.dsca.mil in Appendix A6 - LOA Notes Listing. Cleared for public release.

If you have questions on this memorandum, please contact Lucas Rose, DSCA (Office of Business Operations, Financial Policy & Regional Execution Directorate, Financial Policy Division (OBO/FPRE/FP)), (202) 853-5693, lucas.j.rose1.civ@mail.mil.

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

ATTACHMENT :
Security Assistance Management Manual (SAMM) E-Change 576