DODFMR Vol. 15 - Global Reach, Global Ledger

Department of Defense Financial Management Regulation (DoD FMR) Volume 15, titled “Security Cooperation Policy,” establishes the comprehensive financial management, accounting, and pricing framework for Security Cooperation and Security Assistance programs, primarily focusing on Foreign Military Sales (FMS) and Building Partner Capacity (BPC) activities. The volume dictates the rigorous procedures for managing the FMS Trust Fund and the Special Defense Acquisition Fund (SDAF), detailing the processes for recognizing budget and obligational authority, as well as strict cash management practices to ensure sufficient purchaser funds are collected in advance to liquidate obligations. Furthermore, it mandates precise pricing methodologies for defense articles, services, and international training to ensure the Department accurately recoups all applicable costs, including nonrecurring research and development expenses, administrative surcharges, and transportation accessorials. Finally, Volume 15 governs the complete lifecycle of case financial execution by prescribing standardized billing and reimbursement procedures, detailed case file documentation requirements, and rigorous accounting controls to facilitate timely case closure and prevent Antideficiency Act (ADA) violations