Security Assistance Management Manual E-Change 741 
TREATIES AND OTHER INTERNATIONAL AGREEMENTS IN SECURITY ASSISTANCE ACCOUNT FINANCIAL STATEMENTS

1. Update SAMM section C11.2.5.4.:

   Current:

   C11.2.5.4. International Agreements and Treaties in Force. The USG uses international agreements and arrangements with partners, which are required to execute BPC programs. These agreements can be binding as the USG and partners determine the need, or nonbinding if there is not time to complete the binding agreement. See Section C11.3.3.1. for a definition of BPC program funding. Once the agreements and arrangements are in place, the Requesting Authorities (RAs) may plan BPC programs for execution in accordance with these applicable bilateral and multilateral international agreements and arrangements. The appropriate USG entity initiates specific agreements and arrangements with each partner. See Table C11.T1. for a listing of the more common agreements. The Security Cooperation Organization (SCO) will maintain copies of these documents, as applicable, and be familiar with their contents. See Chapter 2 for SCO responsibilities. SCOs should share copies with the Combatant Command (CCMD), USG planners, and partner Ministry of Defense (MoD) counterparts, as necessary, to ensure all contributors are cognizant of the contents. SCOs also forward a copy of any international agreement to DSCA (Front Office, Office of the General Counsel (FO/OGC)) for its Agreements Repository. The SCO obtains a copy of the partner's Section 505 Agreement (as amended by any diplomatic notes) from the Political/Military Officer within the U.S. Embassy. Some SC authorities, like 10 U.S.C. 333 and the Indo-Pacific Maritime Security Initiative (MSI) (P.L. 117-81 (FY22 NDAA)) require compliance with Section 505 as a legal matter. As a matter of policy, the DoD requires 505 agreements for all BPC train and equip programs.

   Revised:

   C11.2.5.4. International Agreements and Treaties in Force. The USG uses relies on a variety of international agreements and arrangements with partners which are required to execute BPC programs. These instruments may be concluded as legally binding agreements or nonbinding arrangements depending on the subject matter and partner involved. agreements can be binding as the USG and partners determine the need, or nonbinding if there is not time to complete the binding agreement. See Section C11.3.3.1. for a definition of BPC program funding. BPC programs must be executed in accordance with these multilateral international agreements and arrangements, as applicable. Once the agreements and arrangements are in place, the Requesting Authorities (RAs) may plan BPC programs for execution in accordance with these applicable bilateral and multilateral international agreements and arrangements. The appropriate USG entity initiates specific agreements and arrangements with each partner. See Table C11.T1. for a listing of the more common agreements that are used to execute security cooperation programs. The Security Cooperation Organization (SCO) will maintain copies of these documents, as applicable, and be familiar with their contents. See Chapter 2 for SCO responsibilities. SCOs should share copies with the Combatant Command (CCMD), USG planners, and partner Ministry of Defense (MoD) counterparts, as necessary, to ensure all contributors are cognizant of the contents. SCOs also forward a copy of any new international agreement relevant to security cooperation/assistance to DSCA (Front Office, Office of the General Counsel (FO/OGC)) for its Agreements Repository. For example, the SCO obtains a copy of the partners' partner's Section 505 Agreement (as amended by any diplomatic notes) from the Political/Military Officer within the U.S. Embassy. Some SC authorities, like 10 U.S.C. 333 and the Indo-Pacific Maritime Security Initiative (MSI) (P.L. 117-81 (FY22 NDAA)) require compliance with Section 505 as a legal matter. As a matter of policy, the DoD requires 505 agreements for all BPC train and equip programs. For Security Assistance Accounts, see Section C14.8.4. Treaties and Other International Agreements in Financial Statements.

2. Add SAMM Section C14.8.4. - C14.8.4.1.:

   C14.8.4. Treaties and Other International Agreements in Financial Statements. DSCA (Office of Business Operations, Comptroller Directorate, Financial Reporting and Oversight Division (OBO/CMP/FRO)), in coordination with the Implementing Agencies (IAs), will perform a documented assessment of Security Assistance Account (SAA) programs and activities to identify the types and sources of contingent and/or related liabilities that may exist. The assessment should include reviewing treaties and international agreements that are relevant to the U.S. foreign military sales or Building Partnership Capacity programs as determined by DSCA. See Section C11.2.5.4. International Agreements and Treaties in Force.

   C14.8.4.1. Twice a year, DSCA CMP/FRO will coordinate with DSCA (Front Office, Office of the General Counsel (FO/OGC)) to assess the security cooperation portfolio of international agreements and identify any agreements affecting or involving SAA programs. Should any international agreements be identified that materially affect the SAA, DSCA (OBO/CMP/FRO) will ensure that the liability is recognized in the SAA financial statements.