DEFENSE SECURITY COOPERATION AGENCY  2800 DEFENSE PENTAGON  WASHINGTON, D.C. 20301-2800	3/4/2002

MEMORANDUM FOR :

DEPUTY UNDER SECRETARY OF THE ARMY
(DEFENSE EXPORTS AND COOPERATION)
(DASA(DE&C)/SAAL-ZN)
DEPARTMENT OF THE ARMY

DIRECTOR, NAVY INTERNATIONAL PROGRAMS OFFICE
DEPARTMENT OF THE NAVY

DEPUTY UNDER SECRETARY OF THE AIR FORCE
(INTERNATIONAL AFFAIRS)
DEPARTMENT OF THE AIR FORCE

DIRECTOR, DEFENSE FINANCE AND ACCOUNTING
SERVICE, DENVER CENTER (DFAS-AY/DE)

SUBJECT :

FMS Trust Fund Holding Account Designators Applicable to the Worldwide Warehouse Redistribution Services (WWRS) Program (DSCA 02-10)

With the expanding applicability and execution of the WWRS to Military Departments other than the USAF, this memorandum announces a standardized policy for the holding accounts used to capture WWRS financial transactions in the FMS Trust Fund.

The following WWRS-unique holding accounts apply:

DSCA/COMPT-FM must approve any requests to use holding account identifiers for WWRS-related purposes other than those shown above. Exceptions authorized prior to the issuance of this memorandum remain valid.

These holding accounts are to receive proceeds from the sale of materiel applicable to that Seller's In-Country Service (ICS). Likewise, transfers to cover the WWRS redistribution fee and associated DFAS-assessed administrative surcharge are paid from those same holding accounts.

For WWRS funded with FMF, the proceeds should track through the 6QX holding account, and then progress onward to the 5QQ (FMS Credit) holding account. This ensures that proceeds of FMF-funded assets sold through the WWRS are not commingled with national (cash) funds. In addition, DFAS shall notify DSCA/COMPT-FM of the deposit into 5QQ for WWRS proceeds, in order for DSCA to create a corresponding adjustment to the Seller's uncommitted FMF balance. (DSCA will use a pseudo case identifier Q-WRS for this purpose.) Funds will be transferred from the 5QQ holding account to the 6QX holding account for amounts needed to liquidate the WWRS redistribution fee and administrative surcharge applicable to the FMF-funded portion of the WWRS program for that Seller. In this latter scenario, DFAS will advise DSCA/COMPT-FM so as to adjust the requisite FMF commitments against pseudo case QWRS.

For all WWRS holding accounts already established with a 6QX holding account identifier, and which relate to the Seller's Air Force, the following transition plan applies:

• DFAS will transfer the entire current 6QX balance to the new 6QD holding account.
• DFAS will record an entry in the Seller's next 6QX holding account statement that the transfer was effected per this memorandum.
• All transfers shall be done prior to 31 Mar 02, in order for the transition plan to be completed by the end of the current billing cycle.

USAF is requested to revise the reference handbook to reflect this updated holding account policy.

We appreciate your attention to this matter. Should you have any questions, the DSCA point of contact is Mr. David Rude, Financial Policy team chief, DSN 664-6569, e-mail (unclas): David.rude@osd.pentagon.mil.

James A. McQuality
Comptroller

CC :

AFSAC/COS-W
USASAC Alexandria
DISAM