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

7/15/2022

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 :

Defense Security Cooperation Agency Policy Memorandum 22-51, Return of Unobligated Pakistan Counterinsurgency Capability Funds

REFERENCE :

1. Security Assistance Management Manual (SAMM) C15.1.2.5 Case Closure
2. Prior Year Adjustment Requests for Building Partner Capacity (BPC) Cases, DSCA Policy 19-03
3. Clarification to DSCA Policy on Prior Year Adjustment Requests, DSCA Policy 20-12

This policy memorandum establishes policy on executing and closing Building Partner Capacity (BPC) cases funded by the Pakistan Counterinsurgency Capability Fund (PCCF). Specifically, the purpose of this memorandum is to provide direction to the Implementing Agencies (IAs) to return funds and close existing PCCF-funded BPC cases.

Effective immediately, DSCA directs IAs to drawdown unobligated balances on all PCCF-funded BPC cases and begin closure activities once all lines are supply service complete. Case closure must be completed no later than July 31, 2022 in accordance with reference (a). For lines with existing obligations, to include fulfilled/unfulfilled requisitions, IAs should continue recording and adjusting valid obligations incurred during the funds' period of availability. If current year funds are needed in order to make an upward adjustment at the line level, IAs must follow the Prior Year Adjustment (PYA) process in accordance with references (b) and (c). The IAs should submit the PYA package, and a Modification if the PYA package is approved, as soon as possible. Upon liquidation of existing obligations, such PCCF-funded cases must be closed.

If new activities arise in connection to the PCCF program, the IA must coordinate with DSCA to obtain concurrence from the Department of State to establish FY2012 Foreign Military Financing (FMF)-funded case with Security Cooperation Customer Code designator of 'PK' in order to continue program-related activities. Activities that may be funded with FMF include, but are not limited to, transportation and storage services associated with equipment purchased under a PCCF program during the funds' period of availability.

If you have questions on this policy memorandum, please contact Justin Lee, DSCA (Office of Business Operations, Financial Policy & Regional Execution Directorate, Financial Policy Division (OBO/FPRE/FP)), (703) 859-2546, Sungjae.j.lee.civ@mail.mil.

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