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

11/3/2021

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 :

Requirement to use the Standard Line of Accounting (SLOA) for Security Assistance Accounts (SAA), DSCA Policy 21-65

REFERENCE :

1. Office of the Under Secretary of Defense (Comptroller) (OUSD(C)) Memorandum, Department of Defense Standard Line of Accounting (SLOA)/Accounting Classification, September 14, 2012
2. Defense Security Cooperation Memorandum, Requirement of the Standard Financial Information Structure (SFIS) Implementation, DSCA Policy 21-07, May 25, 2021

This memorandum provides guidance to the Implementing Agencies (IA) on the use of the Standard Line of Accounting (SLOA)/Accounting Classification when executing Title 10 and Title 22 financial transactions as directed by reference (a). For all financial systems that are not currently SLOA compliant, the Defense Security Cooperation Agency (DSCA) requests IAs to submit a SLOA implementation plan to DSCA by 30 March 2022 outlining how the IA will ensure that your financial system will become SLOA compliant prior to 30 September 2022.

The SLOA was established as a subset of the Standard Financial Information Structure (SFIS) in order to create standardization and a common business language within Department of Defense lines of accounting. There are 26 SLOA attributes that correlate directly to SFIS data elements. Reference (a) provides the complete list of data element names and the SFIS reference. These attributes should be considered as a part of planning for each component's SFIS plan [reference (b)].

DSCA assesses that a failure to comply with OUSD(C) established SFIS and SLOA requirements by the end of the current fiscal year will cause significant execution challenges for fiscal year 2023 and beyond. Specifically, use of non-compliant financial systems will result in IAs undertaking corrective action plans to resolve financial reporting errors and unmatched transactions. IAs may also be unable to obtain continued funding for any financial system that cannot accept a fully compliant line of accounting.

The use of SLOA will enhance interoperability, link budget to execution, improve reconciliations, and reduce unsupported accounting adjustments. Not all data elements must be populated or zero filled, depending on function, accounting system software, or SFIS business rules. IAs should carefully review the SFIS compliance requirements outlined in reference (b).

If you have questions on this memorandum, please contact Mr. Lucas Rose, lucas.j.rose1.civ@mail.mil or (202) 853-5693.

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