AFI 65-601 Vol 1 – Budget Guidance and Procedures

Current as of 5 Dec 2017

View AFI65-601 Vol 1 pdf

Reference

Table of Contents (page)

Chapter 1— FINANCIAL MANAGEMENT IN THE AIR FORCE 27

1.1. Overview. …………………………………………………………………………………………………. 27

1.2. Applying This Instruction. ………………………………………………………………………….. 27

1.3. Responsibilities. ………………………………………………………………………………………… 27

1.4. Related Guidance. ……………………………………………………………………………………… 27

Chapter 2— WARRANTS, APPORTIONMENTS, TRANSFERS, AND REPROGRAMMING 28

2.1. Overview. …………………………………………………………………………………………………. 28

2.2. Responsibilities: ………………………………………………………………………………………… 28

2.3. Reprogrammings: ………………………………………………………………………………………. 28

2.4. Congressional New Start Notification Procedures. …………………………………………. 29

2.5. Deferrals and Rescissions. ………………………………………………………………………….. 31

Chapter 3— BUDGET AUTHORIZATION, ALLOCATIONS, AND ALLOTMENTS 32

3.1. Administering Budget Authority Documents: ……………………………………………….. 32

3.2. Basis for Budget Authorizations: …………………………………………………………………. 33

3.3. Expired Year Budget Authorizations. …………………………………………………………… 33

3.4. Using Allocations and Suballocations: …………………………………………………………. 33

3.5. Using Allotments and Suballotments: ………………………………………………………….. 34

3.6. Issuing Budget Authorizations and Allocations……………………………………………… 34

3.7. Operating Centrally Managed Allotments (CMA): ………………………………………… 36

3.8. Year-End Adjustments: ………………………………………………………………………………. 37

3.9. Using AF Form 401, Budget Authority/Allotment: ………………………………………… 38

3.10. Locally Prescribed Forms and Formats. ……………………………………………………….. 39

3.11. Emergency Funding Actions. ………………………………………………………………………. 40

Figure 3.1. Designation of Appropriation Managers. ……………………………………………………… 40

Chapter 4— BUDGETING AND FUNDING GUIDANCE FOR VARIOUS APPROPRIATIONS 42

Section 4A— Obligating Funds During the Last Two Months of the Fiscal Year. 42

4.1. Applying the 20-Percent Limit on Obligations. ……………………………………………… 42

Figure 4.1. Exceptions to the 20-Percent Limit on Obligations in August and September. …… 42

4.2. This paragraph intentionally left blank. ………………………………………………………… 42

Section 4B— Information Technology Equipment (ITE) and Resources 43

4.3. Budgeting and Funding for General Purpose ITE. …………………………………………. 43

4.4. O&M Funded Facilities and Activities. ………………………………………………………… 44

4.5. RDT&E Funded Facilities and Activities. …………………………………………………….. 46

4.6. Defense Working Capital Fund (DWCF) Facilities and Activities. ………………….. 46

4.7. Site Preparation. ………………………………………………………………………………………… 46

Table 4.1. Funding for Information Technology Equipment (ITE) Site Preparation. …………. 46

4.8. Embedded Computers. ……………………………………………………………………………….. 46

4.9. Funding Other Equipment with Computers. ………………………………………………….. 49

4.10. Information Technology (IT) – Summary Considerations. ……………………………… 49

Table 4.2. Information Technology – Major Considerations (not sequential). …………………… 49

Section 4C— Honoraria 49

4.11. Approving Honoraria and Speaking Fees. …………………………………………………….. 50

Table 4.3. Honoraria Approval Thresholds. …………………………………………………………………. 50

Section 4D— Emergency and Special Program (ESP) Codes 51

Table 4.4. Assigning ESP Codes. ……………………………………………………………………………….. 51

4.12. Reserved For Future Use. …………………………………………………………………………… 51

4.13. Using ESP Codes: ……………………………………………………………………………………… 51

Section 4E— Technical Data 51

4.14. Financing the Procurement and Printing of Technical Data. ……………………………. 51

4.15. Funding Engineering Drawing Requirements: ………………………………………………. 53

4.16. Commercial Manuals. ………………………………………………………………………………… 53

4.17. Technical Data for Replenishment Spares Procurement. …………………………………. 53

4.18. Technical Data for Common Support Equipment…………………………………………… 54

Section 4F— Space Launch Support Services 54

4.19. Financing Launch Services. ………………………………………………………………………… 54

4.20. Propellants Funding. ………………………………………………………………………………….. 54

Section 4G— Organizational, Intermediate, and Depot Logistic Support Provided By Contractors 54

4.21. Funding Contractor Support Programs: ………………………………………………………… 54

4.22. Determining the Funds Chargeable. …………………………………………………………….. 56

Section 4H— Prompt Payment Act (P.L. 97-177, 5CFR Part 1315, 31 U.S.C. Section 3901-3906) 56

4.23. Financing Prompt Payment Charges: ……………………………………………………………. 56

4.24. Assigning Data Elements: …………………………………………………………………………… 57

Section 4I— Telephone System Costs 58

4.25. Funding Advance Deposits for Installation Costs of Telephone Cable Required for New Family Housing. ……………………………………………………………………………. 58

4.26. Funding Other Telephone Activities: ……………………………………………………………. 58

Figure 4.2. Funding for Installation and Maintenance of Telephone Wiring Used for Commercial “Unofficial” Telephone Service. ………………………………………………… 60

Section 4J— USAF Heritage Program 60

4.27. USAF Heritage Program (USAFHP) and associated activities. ……………………….. 62

Section 4K— Ethnic and Holiday Observances, Traditional Ceremonies, and Entertainment 63

4.28. Ethnic and Holiday Observances Funding Guidance: …………………………………….. 63

4.29. Traditional Ceremonies. ……………………………………………………………………………… 63

4.30. Entertainment. …………………………………………………………………………………………… 65

Section 4L— Awards, Award Ceremonies and Gifts 66

4.31. Awards and Gifts. ……………………………………………………………………………………… 66

4.32. Civilian Performance Awards. …………………………………………………………………….. 69

4.33. Refreshments at Awards Ceremonies. ………………………………………………………….. 69

Section 4M— Chapel and Chaplain Programs 71

4.34. Funding Guidance. …………………………………………………………………………………….. 71

Section 4N— Criteria for Determining Expense and Investment Costs 71

4.35. Distinguishing Between Expense and Investment Costs. ………………………………… 71

4.36. Investment Cost Decision. ………………………………………………………………………….. 72

Figure 4.3. Decision Making Factors for Investment Cost. ……………………………………………… 72

Section 4O— Licencing of Intellectual Property 73

4.37. Application……………………………………………………………………………………………….. 73

4.38. Programmatic Directives. …………………………………………………………………………… 73

4.39. Accounting. ………………………………………………………………………………………………. 73

4.40. Fee/Royalty Purposes. ……………………………………………………………………………….. 73

4.41. Excess Fees/Royalties. ……………………………………………………………………………….. 73

4.42. Accounting Codes. …………………………………………………………………………………….. 73

Section 4P— Other Guidance 74

4.43. Personalized Stationery. ……………………………………………………………………………… 74

4.44. Business and Greeting Cards: ……………………………………………………………………… 74

4.45. Housing Damage Liability: …………………………………………………………………………. 75

4.46. Buying Books, Periodicals, Newspapers and Pamphlets: ………………………………… 75

4.47. Funding Consecutive Overseas Tours. …………………………………………………………. 75

4.48. Appliances and Furnishings. ……………………………………………………………………….. 75

4.49. Retiree Activities Programs. ……………………………………………………………………….. 75

Section 4Q— Meals, Conferences, Training, and Fees 76

4.50. Use of Appropriated Funds for Meals and Light Refreshments. ………………………. 76

4.51. Funding for Air Force Sponsored Conferences. …………………………………………….. 77

4.52. Non-government Sponsored Conferences. ……………………………………………………. 78

4.53. Government (non-Air Force) Sponsored Conferences. …………………………………… 78

4.54. Avoiding Double Recovery for Meals. …………………………………………………………. 79

4.55. Scientific, Technical, and Professional Symposiums, Conferences, and Similar Meetings……………………………………………………………………………………………………. 79

4.56. Veterinary Services: …………………………………………………………………………………… 79

4.57. Membership in Professional Organizations. ………………………………………………….. 79

4.58. Special Drinking Water………………………………………………………………………………. 80

4.59. CREEK SWEEP Credits. ……………………………………………………………………………. 80

4.60. Licenses and Certificates for Military Members…………………………………………….. 81

4.61. Service Contracts Crossing Fiscal Years. ……………………………………………………… 81

4.62. Air Navigation and Overflight Fees. …………………………………………………………….. 82

4.63. Landing and Parking Fees. ………………………………………………………………………….. 82

4.64. Funding for Athletic Supplies and Fitness Equipment. …………………………………… 82

4.65. Real Property Damage Recovery. ………………………………………………………………… 83

4.66. Undefinitized Contractual Actions (UCA). …………………………………………………… 83

4.67. U.S. Flag for Active Duty Military Retirees. …………………………………………………. 83

4.68. Memorials and Monuments. ……………………………………………………………………….. 84

4.69. Cable TV in Dormitories. …………………………………………………………………………… 84

4.70. Heart Link Program. ………………………………………………………………………………….. 84

4.71. Temporary Authority to Hire Contract Security Guards. ………………………………… 84

4.72. Exemption of Certain Firefighting Contracts from Prohibition on Contracts for Performance of Firefighting Functions. …………………………………………………………. 84

Section 4R— Planning and Tracking Obligations and Outlays 85

4.73. Supplementing OSD Appropriations (97X) with O&M 3400 Funds. ……………….. 85

4.74. Submitting Outlay Plans. ……………………………………………………………………………. 85

4.75. Planning: ………………………………………………………………………………………………….. 85

4.76. Tracking. ………………………………………………………………………………………………….. 86

Chapter 5— APPROPRIATION REIMBURSEMENTS AND REFUNDS 87

Section 5A— Appropriation Reimbursements 87

5.1. General Reimbursement Guidance: ……………………………………………………………… 87

5.2. Responsibilities for Developing Anticipated Reimbursements: ……………………….. 87

5.3. Responsibilities for Earning Anticipated Reimbursable Programs. …………………… 88

5.4. Funding Procedures and Application. …………………………………………………………… 88

Table 5.1. 3010/3011/3020/3080 Appropriations To Be Charged or Credited For The Purchase or Sale of Investment Items To Fill Customer Orders. ……………………….. 90

5.5. Billing and Collecting Small Amounts: ………………………………………………………… 93

5.6. Reporting Instructions: ………………………………………………………………………………. 93

5.7. Statutory Authorities. Attachment 1 (Public Laws) to this AFI shows statutory authorities for appropriation reimbursements commonly used in DoD. ……………… 93

5.8. Obtaining Materiel, Work, or Services from Others. ………………………………………. 93

5.9. Deobligation, Reimbursable Economy Act Orders (31 U.S.C. 1535). ………………. 94

5.10. Security Assistance Program Reimbursements………………………………………………. 94

Section 5B— Appropriation Refunds 95

5.11. Using Refunds. ………………………………………………………………………………………….. 95

5.12. Examples of Appropriation Refunds: …………………………………………………………… 95

5.13. Refunds Receivable. ………………………………………………………………………………….. 96

5.14. Disposing of Refunds. ………………………………………………………………………………… 96

5.15. Other Refunds. ………………………………………………………………………………………….. 97

Section 5C— Administrative and Accessorial Costs 97

5.16. Special Guidance. ……………………………………………………………………………………… 97

5.17. Charging Accessorial Costs. ……………………………………………………………………….. 97

Figure 5.1. Accessorial Charge Rates. ………………………………………………………………………….. 98

5.18. Contract Cost Billings. ……………………………………………………………………………….. 98

Chapter 6— EXPIRED AND CANCELED APPROPRIATIONS 100

6.1. Applying this Chapter. ……………………………………………………………………………….. 100

6.2. Applying Changes in the Appropriation Life Cycle: ………………………………………. 100

6.3. Determining Contract Changes and Upward Obligation Adjustments (UOA). …… 100

Figure 6.1. Decision Tree – Contract Changes and Obligation Adjustments. ……………………… 105

6.4. Using Current and Expired Appropriations. ………………………………………………….. 106

6.5. Controlling Current Appropriation Limitations: …………………………………………….. 107

6.6. Approving Upward Obligation Adjustments and Contract Change Requests: ……. 109

6.7. Processing Unrecorded Obligations and Payments: ……………………………………….. 110

6.8. Complying with the Antideficiency Act. ………………………………………………………. 110

6.9. Handling Foreign Currency Fluctuation Obligations and Payments: ………………… 111

6.10. Using Other DoD Appropriations: ……………………………………………………………….. 111

6.11. Obligating Upward Adjustments in the Accounting System: …………………………… 112

6.12. Reviewing Unliquidated Obligation (ULO) Balances in the Expired Years: ……… 112

6.13. Charging Prior Year Obligated Due-Outs: ……………………………………………………. 113

6.14. Reprogramming. ……………………………………………………………………………………….. 114

6.15. Complying With Control Levels in Expired Accounts: …………………………………… 115

6.16. Collections. ………………………………………………………………………………………………. 116

6.17. Monthly and Fiscal Year-end Reporting Requirements for Transactions under $100,000. ………………………………………………………………………………………………….. 116

Chapter 7— SUPPORT GUIDANCE 118

Section 7A— Overview 118

7.1. Applying This Chapter. ………………………………………………………………………………. 118

7.2. Complying with Statutory Authority. …………………………………………………………… 118

7.3. Responsibilities: ………………………………………………………………………………………… 118

Section 7B— Intraservice Relationships (Within the Air Force) 120

7.4. General Host-Tenant Responsibilities: …………………………………………………………. 120

Figure 7.1. Host-Tenant Funding Responsibility by Type of Service. ……………………………….. 120

7.5. Handling Unfunded Requirements. ……………………………………………………………… 120

7.6. This paragraph intentionally left blank. ………………………………………………………… 126

7.7. This paragraph intentionally left blank. ………………………………………………………… 126

7.8. Defense Working Capital Fund (DWCF): …………………………………………………….. 126

7.9. Disposing of Turn-in Credits: ……………………………………………………………………… 127

7.10. Billing Tenants: …………………………………………………………………………………………. 127

7.11. Making Jurisdictional Transfers. …………………………………………………………………. 128

7.12. Reimbursing Landing Fees and Base Maintenance for Transient Aircraft. ………… 128

7.13. Reserved for future use. ……………………………………………………………………………… 129

7.14. Investigating Aircraft Accidents, Including Remotely Piloted Aircraft, and Environmental Cleanup. ……………………………………………………………………………… 129

Section 7C— Interservice Relationships 129

7.15. Overview. …………………………………………………………………………………………………. 129

7.16. Cross-Servicing: ………………………………………………………………………………………… 129

7.17. Determining Cross-Servicing Charges. ………………………………………………………… 130

7.18. Accepting Cross-Service Orders: …………………………………………………………………. 131

7.19. Financing Cross-Service Orders: …………………………………………………………………. 132

7.20. Processing Commitments and Obligations. …………………………………………………… 134

7.21. Resolving Service Disagreements………………………………………………………………… 134

7.22. Joint-Use Guidance. …………………………………………………………………………………… 135

Section 7D— Support of Non-DoD Departments and Agencies 135

7.23. Overview. …………………………………………………………………………………………………. 135

7.24. Financing Economy Act Orders. ………………………………………………………………….. 136

7.25. Executing Economy Act Orders. …………………………………………………………………. 136

Table 7.1. Authorized Advance Payment Economy Act Orders. …………………………………….. 137

7.26. Economy Act Order Procedures: …………………………………………………………………. 137

7.27. Other Methods of Funding. …………………………………………………………………………. 138

7.28. Transactions with GSA for Leased Facilities: ……………………………………………….. 138

7.29. Air Transportation Provided to Non-Defense Agencies: …………………………………. 139

7.30. Terms for Support Agreements. …………………………………………………………………… 139

Section 7E— Civil Air Patrol (CAP) and Air Force Civil Air Patrol Liaison Offices 139

7.31. Overview. …………………………………………………………………………………………………. 139

7.32. Supporting CAP with the use of Appropriated Funds. ……………………………………. 139

7.33. Non-Allowable Expenses……………………………………………………………………………. 142

7.34. Supporting Air Force-CAP Liaison Offices. …………………………………………………. 142

Section 7F— Disaster Relief in the United States, Its Territories and Possessions 143

7.35. Overview:…………………………………………………………………………………………………. 143

7.36. Air Force Responsibilities: …………………………………………………………………………. 143

7.37. Funding Procedures: ………………………………………………………………………………….. 144

Section 7G— Disaster Relief in Foreign Countries 145

7.38. Overview. …………………………………………………………………………………………………. 145

7.39. Air Force Guidance. …………………………………………………………………………………… 146

7.40. Funding Procedures. ………………………………………………………………………………….. 146

7.41. Documentation Requirements. …………………………………………………………………….. 147

Section 7H— International Military Activities 147

7.42. Overview:…………………………………………………………………………………………………. 147

7.43. Responsibility for National Support: ……………………………………………………………. 148

Figure 7.2. Administrative Agents for National Support. ………………………………………………… 149

7.44. Cross-Servicing. ………………………………………………………………………………………… 150

7.45. Reimbursable Support: ………………………………………………………………………………. 150

7.46. Reimbursement Procedure: …………………………………………………………………………. 151

7.47. DoD Guidance. …………………………………………………………………………………………. 152

7.48. Paying United States Personnel: ………………………………………………………………….. 153

7.49. Costs Included and Excluded from International Budgets. ………………………………. 153

Section 7I— Use of Air Force Research and Test Facilities 156

7.50. Overview. …………………………………………………………………………………………………. 156

7.51. Budgeting and Funding of the Air Force Research Laboratory (AFRL): …………… 156

7.52. Funding Responsibilities for Designated Major Range and Test Facility Base (MRFTB) Activities. …………………………………………………………………………………… 158

Table 7.2. Major Ranges and Test Facilities. ………………………………………………………………… 158

Section 7J— Support of Civil Disturbances 160

7.53. Funding Guidance: …………………………………………………………………………………….. 160

Section 7K— Support of Civil Authorities in Airplane Hijacking Emergencies 161

7.54. Funding Guidance. …………………………………………………………………………………….. 161

Section 7L— Support of the United States Secret Service 161

7.55. Statutory Basis and Implementing Directives: ………………………………………………. 161

7.56. Funding Guidance: …………………………………………………………………………………….. 161

Section 7M— Joint-Use Facilities 162

7.57. Overview. …………………………………………………………………………………………………. 162

7.58. Responsibilities for Military Construction. ……………………………………………………. 162

7.59. Maintenance and Service Support. ………………………………………………………………. 163

Chapter 8— AIR FORCE PROCUREMENT APPROPRIATIONS (57*3010, 57*3011, 57*3020, AND 57*3080) 164

Section 8A— General Guidance 164

8.1. Scope and Availability of Appropriations: ……………………………………………………. 164

8.2. Depot Level Reparables (DLR): ………………………………………………………………….. 165

8.3. Full Funding. …………………………………………………………………………………………….. 165

8.4. Weapon System Engineering. ……………………………………………………………………… 165

8.5. Exceptions:……………………………………………………………………………………………….. 166

8.6. Modification Engineering. ………………………………………………………………………….. 166

Section 8B— Aircraft (57*3010) 166

8.7. Aircraft Structural Integrity Program (ASIP). ……………………………………………….. 166

8.8. Retrofitting or Converting Aircraft: ……………………………………………………………… 167

8.9. Modifying Aircraft to Drone Configuration. …………………………………………………. 167

Section 8C— Weapons (57*3020) 168

8.10. Intercontinental Ballistic Missile (ICBM) Force. …………………………………………… 168

8.11. Missile Site Updating. ………………………………………………………………………………… 168

8.12. Logistic Support of Fixed Installed Missile Support Equipment. ……………………… 168

8.13. Missile Modification or Reconfiguration. ……………………………………………………… 168

8.14. Missile Propellants. ……………………………………………………………………………………. 168

Section 8D— Investment Equipment (57*3080) 168

8.15. Investment Equipment for Major Range and Test Facilities. …………………………… 168

8.16. Base Procured Investment Equipment (BPIE): ………………………………………………. 169

8.17. Finance the Following Items with 57*3080, BPAC 84501X Funds:…………………. 169

8.18. Do Not Finance the Following Items with 57*3080, BPAC 84501X Funds: ……… 170

8.19. Turn-Key Procurement: ……………………………………………………………………………… 171

Section 8E— Real Property Installed Equipment 171

8.20. Procuring Real Property Installed Equipment and Portable Equipment: ……………. 171

8.21. Procuring and Installing Communications-Electronic Systems. ……………………….. 173

8.22. Equipment (Other than Communications Systems) Procured on an Installed Basis. ………………………………………………………………………………………………………… 174

Section 8F— Production Activities 175

8.23. Government-furnished Expense Items to Production Contractors: …………………… 175

8.24. Pilot Production. ……………………………………………………………………………………….. 175

8.25. Costs for Closing Down a Production Line. ………………………………………………….. 175

Section 8G— Guidance for Funding Maintenance and Modification 176

8.26. Financing Maintenance and Modifications: …………………………………………………… 176

8.27. Intentionally left blank. ………………………………………………………………………………. 178

Section 8H— Value Analysis and Engineering 178

8.28. Value Analysis of Spare Parts: ……………………………………………………………………. 178

Table 8.1. Appropriations to Charge for Value Analysis of Spare Parts. ………………………….. 179

8.29. Guidance for Funding Value Engineering (VE). ……………………………………………. 179

8.30. Sharing VE Incentive and Program Requirement Clauses: ……………………………… 179

Section 8I— Other Investment Procurement Policies 181

8.31. Funding Test and Evaluation. ……………………………………………………………………… 181

8.32. Purchasing Information Technology Equipment (ITE). ………………………………….. 181

8.33. Funding the Local Manufacture of Investment Items. …………………………………….. 181

8.34. Funding Support Equipment. ………………………………………………………………………. 182

8.35. Funding Technical and Engineering Data. …………………………………………………….. 182

8.36. Training:…………………………………………………………………………………………………… 183

8.37. Repairing Government-Furnished Materiel (GFM). ……………………………………….. 183

8.38. Industrial Responsiveness/Facilities and Equipment. ……………………………………… 183

8.39. Funding Supplies and Equipment for the National Air and Space Intelligence Center (NASIC) and the Air Force Technical Application Center (AFTAC): …….. 184

8.40. Production-Related Travel. …………………………………………………………………………. 184

8.41. First Destination Transportation (FDT). ……………………………………………………….. 185

8.42. General Use Vehicles for Research and Development (R&D) Activities: …………. 185

8.43. Buying Back Materiel an FMS Customer Offers for Return. …………………………… 185

8.44. Funding for Reliability Improvement Warranty (RIW). ………………………………….. 185

Table 8.2. Reliability Improvement Warranty (RIW) Funding Support. …………………………… 186

8.45. Procedures for Replacement and Deposits to the General Fund of the Treasury. .. 186

8.46. Small Weapons Procurement. ……………………………………………………………………… 188

8.47. Power Conditioning and Continuation Interfacing Equipment (PCCIE): …………… 188

Table 8.3. Test Program Sets (TPS) Follow these procedures for funding: ………………………. 188

8.48. Bid Sample Testing for Non-Development Items (NDI). ………………………………… 188

8.49. Investment Funded Acquisition Costs: …………………………………………………………. 188

Table 8.4. Program Management Administration (PMA) Funding. …………………………………. 190

Chapter 9— MILITARY CONSTRUCTION APPROPRIATIONS 192

Section 9A— Planning and Programming, Authorizations and Appropriations 192

9.1. Composition of Program. ……………………………………………………………………………. 192

Table 9.1. Military Construction Appropriations. ………………………………………………………….. 192

9.2. Obtaining Congressional Authorizations: ……………………………………………………… 192

9.3. Obtaining Congressional Appropriations. …………………………………………………….. 193

9.4. Relating Budget: ……………………………………………………………………………………….. 193

Section 9B— Funding Relocatable Buildings, Stress Tension Shelters, Aircraft Sun Shades and other modular structures 195

9.5. Relocatable Buildings. ……………………………………………………………………………….. 195

9.6. Funding Relocatable Buildings, STSs and Aircraft Sunshades. ……………………….. 195

Table 9.2. Funding For Relocatable Buildings, Stress Tension Shelters, Aircraft Sun Shades, And Other Modular Structures. ………………………………………………………… 196

9.7. Prewired Work Stations, Systems Furniture, Communications Prewiring: ………… 196

9.8. Unspecified Minor Construction (P-341): …………………………………………………….. 197

Table 9.3. Unspecified Minor Construction Approval and Reporting. ……………………………… 198

9.9. O&M Minor Construction. …………………………………………………………………………. 198

9.10. Acquiring Air Conditioning Systems for New Construction or Additions. ………… 198

Section 9C— Financial Management for Military Construction Projects 199

9.11. Financial Management Guidance. ……………………………………………………………….. 199

9.12. Funding for Planning and Design: ……………………………………………………………….. 199

9.13. Under the authority of planning and design, the Military Departments may also: . 199

9.14. Costs Financed with Military Construction Appropriations. ……………………………. 205

9.15. Financing Efforts by Other than Military Construction Appropriations: ……………. 207

9.16. Authorization, Appropriation, Obligation, and Expenditure Restrictions: …………. 209

Table 9.4. Excluded Indirect Costs from 6 Percent Threshold. ……………………………………….. 210

9.17. Phases of Military Construction. ………………………………………………………………….. 211

Chapter 10— OPERATION AND MAINTENANCE, AIR FORCE, APPROPRIATION 212

Section 10A— Scope 212

10.1. Purpose…………………………………………………………………………………………………….. 212

Section 10B— Temporary Duty Travel (TDY) 212

10.2. Funding TDY Costs: ………………………………………………………………………………….. 212

10.3. Funding Travel Related to Training Courses. ………………………………………………… 214

10.4. Funding TDY for Special Technical and Flying Training. ………………………………. 216

10.5. Funding TDY for Field and Mobile Training (AF1 36-2201). …………………………. 216

10.6. Funding Travel of Air Force Military Applicants for the United States Air Force Academy (USAFA). …………………………………………………………………………………… 216

10.7. Funding Travel to Support Initial Operational Test and Evaluation (IOT&E) or Developmental Test and Evaluation (DT&E). ………………………………………………… 216

10.8. Not Used. …………………………………………………………………………………………………. 216

10.9. Funding Travel for Air Force Recruiters. ……………………………………………………… 216

10.10. Funding Travel Related to Ferrying Aircraft. ………………………………………………… 216

Table 10.1. Budgeting and Funding for Aircraft Ferrying: ……………………………………………….. 217

10.11. Funding Travel of Escorts for Dependents of Deceased or Missing Air Force Military Personnel. ……………………………………………………………………………………… 219

10.12. Funding Travel to Attend Meetings of Technical, Professional, Scientific, and Other Similar Organizations. ……………………………………………………………………….. 219

10.13. Funding Attendance at National Rifle and Pistol Matches by Air Force Personnel. ………………………………………………………………………………………………….. 219

10.14. Funding Travel Related to Logistics Evaluation of Independent Research and Development (LEIR&D). ……………………………………………………………………………. 219

10.15. Funding Travel Related to Disability Retirement Processing Under AFI 36-3212, Physical Evaluation for Retention, Retirement, and Separation . ………………………. 219

10.16. Funding Witness Travel. …………………………………………………………………………….. 219

Table 10.2. Funding for Travel Connected with Administrative Boards or Disciplinary Procedures. ………………………………………………………………………………………………… 219

10.17. Funding Travel Related to Equal Employment Opportunity (EEO) Complaints. .. 219

10.18. Funding Travel Related to Emergency Leave………………………………………………… 223

10.19. Funding Dependent Student Travel. …………………………………………………………….. 223

10.20. Funding Medical Related Travel. ………………………………………………………………… 223

10.21. Funding Travel for the USAF Occupational Measurement Center (USAFOMC). 223

10.22. Financing Contract Quarters for Air Force and DoD Employees in a Travel Status (Includes Members of the Active and Reserve Forces). …………………………. 223

Section 10C— Medical Support 224

10.23. Financing Medical Support: ………………………………………………………………………… 224

10.24. Executing the Medical Budget. ……………………………………………………………………. 225

10.25. Expenses Chargeable to Medical Support. ……………………………………………………. 225

10.26. Do Not Charge to Medical Support: …………………………………………………………….. 230

10.27. Sales of Subsistence at Medical Facilities. ……………………………………………………. 232

10.28. Sales of Medical Services. ………………………………………………………………………….. 232

10.29. Third Party Payers. ……………………………………………………………………………………. 233

10.30. Procurement of Medical Publications and Printed Material. ……………………………. 233

10.31. Managing the Reimbursable Program: …………………………………………………………. 233

10.32. Health and Wellness Centers (HAWC). ……………………………………………………….. 233

Section 10D— Property Disposal Programs 234

10.33. Defense Reutilization and Marketing Office (DRMO): ………………………………….. 234

10.34. Foreign Equity Property. …………………………………………………………………………….. 234

10.35. Information Technology Equipment (ITE) owned by General Services Administration (GSA). ………………………………………………………………………………… 234

10.36. Funding for Sale of Forest Products. ……………………………………………………………. 234

10.37. Precious Metal Recovery Program (PMRP). …………………………………………………. 235

10.38. Funding Responsibilities for the Qualified Recycling Program (QRP) (10 U.S.C. 2577). ……………………………………………………………………………………………………….. 235

Section 10E— Transportation of Property 236

10.39. Funding First Destination Transportation (FDT): …………………………………………… 236

10.40. Funding Second Destination Transportation………………………………………………….. 237

10.41. Budgeting, Funding, and Expensing Transportation Charges: …………………………. 237

10.42. Charging Domestic Freight Shipments Using Commercial Forms……………………. 238

10.43. SDT Exceptions: ……………………………………………………………………………………….. 238

10.44. Land Transportation Within Overseas Areas. ………………………………………………… 238

10.45. DWCF Property. ……………………………………………………………………………………….. 238

10.46. Funding Redistribution Order (RDO) Type Shipments. ………………………………….. 238

10.47. Funding Army-Air Force Exchange Service (AAFES) Property: …………………….. 239

10.48. Funding Demurrage, Detention, and Storage Costs. ……………………………………….. 239

10.49. Funding Unit Deployments, Redeployments, Relocations, and Deactivations: ….. 239

10.50. Funding Transportation from Contractor’s Bonded Storage: …………………………… 240

10.51. Funding Transportation from Defense Property Disposal Offices. …………………… 240

10.52. Funding the Shipment and Nontemporary Storage of Household Goods. ………….. 240

Section 10F— Education of Dependents 240

10.53. Supporting Department of Defense Dependents Schools (DoDDS) in Foreign Countries. ………………………………………………………………………………………………….. 240

Section 10G— Licensing Agreements 241

10.54. Using Copyrighted Music in Overseas Areas. ……………………………………………….. 241

Section 10H— JCS Exercises 241

10.55. CJCS Exercise Program (PE 28011F). …………………………………………………………. 241

Section 10I— Funding for Individual Clothing 241

10.56. Using O&M-Type Funds for Clothing Sales Store Charges. ……………………………. 241

10.57. Other Military Clothing. …………………………………………………………………………….. 242

Table 10.3. Military Clothing – Enlisted Personnel. ………………………………………………………… 243

Table 10.4. Military Clothing – Officer Personnel. …………………………………………………………. 244

Section 10J— Funding Responsibilities for Organizational Clothing 245

10.58. Funding Distinctive Uniforms and Functional Clothing. …………………………………. 245

10.59. Civilian Uniforms. …………………………………………………………………………………….. 245

10.60. Financing the Introduction of New Clothing Items. ……………………………………….. 245

Section 10K— Unaccompanied Personnel Housing 245

10.61. Leasing Unaccompanied Personnel Housing. ………………………………………………… 245

Section 10L— Type 1 Factory Training 245

10.62. Funding of Factory Training. ………………………………………………………………………. 246

Section 10M— Lease or Rental of Equipment 246

10.63. Leasing or Renting Equipment. …………………………………………………………………… 246

Section 10N— Land Purchases 246

10.64. Funding Minor Land Purchases. ………………………………………………………………….. 246

10.65. Funding Environmental Surveys of Land Interests Prior to Acquisition or Disposal. …………………………………………………………………………………………………… 247

10.66. Funding Environmental Non-Compliance Fines and Penalties (Federal Facility Compliance Act (FFCA)). …………………………………………………………………………… 247

Section 10O— Air Force Claims 247

10.67. Claims Payable From O&M Funds………………………………………………………………. 247

10.68. Carrier Recoveries. ……………………………………………………………………………………. 247

Section 10P— The Subsistence Program 247

10.69. Funding the Subsistence Program. ……………………………………………………………….. 247

Section 10Q— Counternarcotics and Drug Demand Reduction Programs 248

10.70. Counternarcotics Programs and Reprogramming Process. ………………………………. 248

Chapter 11— MANAGEMENT FUNDS 251

11.1. Purpose of Management Funds. …………………………………………………………………… 251

11.2. Purpose…………………………………………………………………………………………………….. 251

11.3. Responsibilities: ………………………………………………………………………………………… 251

11.4. Procedures:……………………………………………………………………………………………….. 252

Figure 11.1. Uniform Format for Management Fund Account Charters. …………………………….. 253

Chapter 12— MILITARY PERSONNEL (MILPERS) APPROPRIATION (57*3500) 255

12.1. General Guidance: …………………………………………………………………………………….. 255

12.2. Using Centrally Managed Allotment (CMA) Procedures. ……………………………….. 255

12.3. Responsibilities: ………………………………………………………………………………………… 255

12.4. Complying with Statutory Entitlements. ……………………………………………………….. 256

12.5. Budgeting and Funding for Permanent Change of Station (PCS) Movements. …… 257

12.6. Travel of Indigent Army, Navy, and Air Force Enlisted Personnel: …………………. 262

12.7. Other Military Personnel Costs. …………………………………………………………………… 263

12.8. Travel of Guards: ………………………………………………………………………………………. 264

12.9. Participation of USAFR and ANG Units in Regular Air Force Exercises (MPA Man-Day Program). ……………………………………………………………………………………. 264

12.10. Nontemporary Storage Charges. ………………………………………………………………….. 264

12.11. Reimbursements for Military Personnel Services. ………………………………………….. 264

12.12. The Subsistence Program. …………………………………………………………………………… 264

12.13. Emergency Evacuation Allowances. ……………………………………………………………. 265

12.14. Consecutive Overseas Tours. ………………………………………………………………………. 265

12.15. Housing Moves at a Permanent Duty Station (PDS) for Government Convenience. ……………………………………………………………………………………………… 265

12.16. Program 780, Reserve Officer Training Corps (ROTC). …………………………………. 265

Chapter 13— RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) APPROPRIATION (57*3600) 267

Section 13A— General Guidance 267

13.1. Applying the Uniform Budget Structure. ………………………………………………………. 267

Table 13.1. RDT&E Budget Structure. ………………………………………………………………………….. 267

13.2. Managing RDT&E Funds. ………………………………………………………………………….. 267

13.3. Applying Incremental Programming and Financing for RDT&E……………………… 267

13.4. Delineating Funding Responsibility Between RDT&E and Procurement Appropriations: ………………………………………………………………………………………….. 268

13.5. Family Housing. ………………………………………………………………………………………… 268

13.6. Tenant Activities. ………………………………………………………………………………………. 268

13.7. Managing Uncommitted and Unobligated Balances in RDT&E. ……………………… 268

13.8. Charging Cost Increases for Incrementally-funded R&D Contracts: ………………… 269

13.9. Aircraft Engine Component Improvement. …………………………………………………… 269

13.10. Information Technology Equipment (ITE). …………………………………………………… 269

13.11. Value Engineering. ……………………………………………………………………………………. 269

13.12. Factory Training. ………………………………………………………………………………………. 269

13.13. General Use Vehicles for Research and Development (R&D) Activities. …………. 269

Section 13B— Funding to Acquire Research and Development (R&D) Facilities and Install R&D Equipment 269

13.14. Acquiring Facilities with RDT&E Funds. …………………………………………………….. 269

13.15. Installing R&D Equipment. ………………………………………………………………………… 272

13.16. Installing Air Conditioning. ………………………………………………………………………… 273

13.17. Funding Criteria. ……………………………………………………………………………………….. 273

13.18. Approving RDT&E Funds: …………………………………………………………………………. 274

13.19. Responsibilities of SAF/IEI. ……………………………………………………………………….. 274

13.20. Responsibilities of HQ AFMC and HQ AFSPC: ……………………………………………. 274

13.21. Accounting Records: ………………………………………………………………………………….. 275

13.22. Disposing of Records. ………………………………………………………………………………… 275

13.23. Environmental Certification: ………………………………………………………………………. 275

Chapter 14— TEST AND EVALUATION 276

14.1. Applying This Chapter. ………………………………………………………………………………. 276

14.2. Funding Test and Evaluation (T&E) Costs. …………………………………………………… 276

14.3. Funding for Operational Testing. …………………………………………………………………. 278

14.4. Funding Qualification Tests and PAT&E Tests. ……………………………………………. 279

14.5. Budgeting and Funding DT&E. …………………………………………………………………… 279

14.6. Budgeting and Funding for Operational Testing: …………………………………………… 280

Figure 14.1. Examples of Test and Evaluation Support Costs. …………………………………………… 281

Chapter 15— AIR FORCE RESERVE APPROPRIATIONS (57*3700, 57*3740) 282

15.1. Overview. …………………………………………………………………………………………………. 282

15.2. Using the Reserve Personnel, Air Force Appropriation (57*3700). ………………….. 282

15.3. Using the Operation and Maintenance, AFR, Appropriation (57*3740). …………… 283

Table 15.1. Operations and Maintenance, AFR, Budget Activity Codes (BAC). ………………… 284

15.4. Using Other Appropriations:……………………………………………………………………….. 284

15.5. Preparing Budget Estimates and Financial Plans. …………………………………………… 284

15.6. Supporting AFRC Conversions. ………………………………………………………………….. 285

15.7. Funding Call-up to Active Duty (10 U.S.C. 12302): ………………………………………. 285

15.8. Travel and Per Diem. …………………………………………………………………………………. 285

15.9. Reserve Training on Unit-Equipped AFRC Aircraft. ……………………………………… 285

Chapter 16— AIR NATIONAL GUARD (ANG) APPROPRIATIONS 286

16.1. Supporting the ANG. …………………………………………………………………………………. 286

16.2. Using National Guard Personnel, Air Force Appropriation (57*3850): …………….. 286

16.3. Using the O&M, ANG Appropriation (57*3840):………………………………………….. 288

Table 16.1. Operation and Maintenance, ANG, Budget Activity Codes. ……………………………. 288

16.4. Basis for Reimbursing for Depot Maintenance………………………………………………. 291

16.5. Supporting ANG Conversions. ……………………………………………………………………. 292

Chapter 17— SECURITY ASSISTANCE PROGRAM 293

17.1. The Security Assistance (SA) program is composed of six major components: …. 293

17.2. FMS Trust Fund and Antideficiency Act. ……………………………………………………… 293

Chapter 18— DEFENSE WORKING CAPITAL FUND (DWCF) 294

Section 18A— General Guidance 294

18.1. Defense Working Capital Funds (DWCF) Overview: …………………………………….. 294

Section 18B— Financial Administration of the DWCF 296

18.2. Issuing and Complying with Budget Authority Documents. ……………………………. 296

18.3. Recovering Full Costs and Setting Prices: …………………………………………………….. 298

18.4. Setting Rates: ……………………………………………………………………………………………. 299

18.5. Applying Depreciation: ………………………………………………………………………………. 300

18.6. Including Costs in the DWCF. …………………………………………………………………….. 300

18.7. Excluding Costs from the DWCF: ……………………………………………………………….. 303

18.8. Recognizing Revenue. ……………………………………………………………………………….. 305

18.9. Paying for Military Personnel. …………………………………………………………………….. 305

18.10. Acquiring Capital Assets: …………………………………………………………………………… 305

Section 18C— Guidance for Specific Business Areas 307

18.11. Depot Maintenance: …………………………………………………………………………………… 307

18.12. Supply Management: …………………………………………………………………………………. 308

Table 18.1. Budgeting And Funding For Consolidated Sustainment Activity Group – Supply Division (CSAG-Supply) Supply Transportation Charges, Excluding Bulk Fuels. 308

Table 18.2. Budgeting and Funding for General Support Division (GSD) Transportation Charges, Excluding Fuels. …………………………………………………………………………… 316

Table 18.3. Budgeting and Funding For Medical-Dental Division (MDD) Transportation Charges, Excluding Bulk Fuel. …………………………………………………………………….. 321

Chapter 19— OFFICIAL VISITS CONCERNING BUDGET MATTERS 325

19.1. Conducting Budget Liaison. ……………………………………………………………………….. 325

19.2. Notifying Budget Officials about Visits: ………………………………………………………. 325

19.3. Reporting Official Visits Concerning Budget Matters: …………………………………… 325

19.4. Command Actions. ……………………………………………………………………………………. 326

Chapter 20— WILDLIFE CONSERVATION, ETC., MILITARY RESERVATIONS, AIR FORCE (57X5095) 327

20.1. Using Wildlife Conservation Funds. …………………………………………………………….. 327

20.2. Sourcing Funds. ………………………………………………………………………………………… 327

20.3. Budgeting for Funds. …………………………………………………………………………………. 327

Chapter 21— MILITARY FAMILY HOUSING (MFH) APPROPRIATIONS 328

Section 21A— The Defense Family Housing Property Account 328

21.1. Determining Properties to Include in the Defense Family Housing Property Account: ……………………………………………………………………………………………………. 328

Section 21B— Military Family Housing Construction Account (57*/*0740) 329

21.2. Budget Program 710, Construction and Improvements after Acquisition. …………. 329

Figure 21.1. Design and Inspection Costs – P-713, P-714, and P-722 Requirements Matrix. …. 331

Figure 21.2. shows budget projects, account codes and types of costs for MFH construction. .. 333

Figure 21.2. MFH Construction Matrix. …………………………………………………………………………. 333

Section 21C— Military Family Housing Operation and Maintenance Account (MFH O&M, 57*0745 335

21.3. Charging Costs to MFH O&M: …………………………………………………………………… 335

21.4. Budget Program 720, Operation and Maintenance. ………………………………………… 338

21.5. Limiting Spending: ……………………………………………………………………………………. 339

21.6. Transferring and Reprogramming Funds: ……………………………………………………… 340

21.7. Obligating Funds for Materiel. ……………………………………………………………………. 340

21.8. Buying Washers and Dryers in Continental United States (CONUS). ………………. 340

21.9. Buying Tableware for Special Command Positions. ………………………………………. 340

21.10. Paying Taxes. ……………………………………………………………………………………………. 340

21.11. Providing Common-Service and Interagency Support for MFH Occupancy and Services. ……………………………………………………………………………………………………. 340

21.12. Charging for Occupancy of MFH by Contractors and Other Nonmilitary People: 340

21.13. Occupying Substandard Housing: ………………………………………………………………… 341

Section 21D— Debt Payments 341

21.14. Charging the Debt Payment Program. ………………………………………………………….. 341

21.15. Administering and Controlling Debt Payments: …………………………………………….. 342

Section 21E— Reimbursements MFH O&M 342

21.16. Reimbursing MFH O&M. …………………………………………………………………………… 342

21.17. Determining Other Reimbursements: …………………………………………………………… 343

Chapter 22— CIVILIAN PERSONNEL SERVICES 344

22.1. Overview. …………………………………………………………………………………………………. 344

22.2. Coordinating Personnel Authorizations and Workyears with Fund Authorizations. …………………………………………………………………………………………… 344

22.3. Permanent Change of Station (PCS) Travel: …………………………………………………. 344

22.4. Paying Civilian Personnel Working on Major Repair Projects. ……………………….. 344

22.5. Awards Guidance. ……………………………………………………………………………………… 345

22.6. Pay of Civilian Personnel Employed in Certain Specialized Functions. ……………. 345

22.7. Subsistence and Quarters to Civilian Employees. ………………………………………….. 346

22.8. Witness and Jury Fees. ……………………………………………………………………………….. 346

22.9. Lump-Sum Leave Payment…………………………………………………………………………. 346

22.10. Unliquidated Leave. …………………………………………………………………………………… 346

22.11. Travel Over-Advances. ………………………………………………………………………………. 346

22.12. Reimbursement of Professional Liability Insurance Premiums. ……………………….. 347

Chapter 23— BASE CLOSURE AND REALIGNMENT (BRAC) APPROPRIATIONS 348

Section 23A— Appropriation Structure and Data Codes 348

23.1. BRAC Appropriations. ………………………………………………………………………………. 348

Table 23.1. BRAC 88 (Round I). ………………………………………………………………………………….. 348

Table 23.2. BRAC 91 (Round II). …………………………………………………………………………………. 348

Table 23.3. BRAC 93 (Round III). ……………………………………………………………………………….. 349

Table 23.4. . BRAC 95 (Round IV). ……………………………………………………………………………… 349

23.2. Structure of the Account. ……………………………………………………………………………. 350

Section 23B— Funds Administration and Budget Execution 351

23.3. Financial Responsibilities: ………………………………………………………………………….. 351

23.4. Budget Process: …………………………………………………………………………………………. 351

23.5. Operating Under Continuing Resolution Authority: ……………………………………….. 351

23.6. Reprogramming: ……………………………………………………………………………………….. 352

23.7. Tenant Requirements: ………………………………………………………………………………… 352

Section 23C— Funding Guidance 353

23.8. Availability of Appropriations for BRAC Costs: …………………………………………… 353

23.9. Election Rule. ……………………………………………………………………………………………. 354

Section 23D— Other Funding Guidance 354

23.10. Military PCS Costs: …………………………………………………………………………………… 354

23.11. Civilian Personnel Costs. ……………………………………………………………………………. 354

23.12. Tenant Employees Costs. ……………………………………………………………………………. 355

23.13. Training Costs For AFRPA Employees. ……………………………………………………….. 355

23.14. Packing, Crating, And Transportation of MWR Equipment. …………………………… 355

23.15. Congressional Approval for Construction. ……………………………………………………. 355

23.16. Non-Appropriated Fund Instrumentalities (NAFI) Costs Including Facilities Construction: ……………………………………………………………………………………………… 356

23.17. Funds Request and Issue Process. ………………………………………………………………… 356

Figure 23.1. BRAC Funds Flow. ……………………………………………………………………………………. 358

Table 23.5. Financing BRAC Costs. ……………………………………………………………………………… 359

Table 23.6. BAANs (2005 BRAC Recommendations). …………………………………………………… 361

Table 23.7. Budget Program (BP) and Budget Project Numbers. ……………………………………… 364

Attachment 1— GLOSSARY OF REFERENCES AND SUPPORTING INFORMATION 367

Attachment 2— STATEMENT OF FINANCIAL MANAGEMENT GUIDANCE FOR RESOURCE MANAGERS 404

Attachment 3— ADVISORY AND ASSISTANCE SERVICES (A&AS) 407

Attachment 4— DEFERRALS AND RESCISSIONS 408

Attachment 5— PHASES OF MILITARY CONSTRUCTION 410

Attachment 6— BASE CLOSURE: COMPTROLLER DEACTIVATION CHECKLIST 412

Attachment 7— FINANCIAL IMPROVEMENT AND AUDIT READINESS (FIAR) 413