DODFMR Vol. 3 - Use It or Lose It: The High-Stakes Game of DoD Funds

DoD FMR Volume 3,“Budget Execution - Availability and Use of Budgetary Resources,” establishes the comprehensive standards and procedures for the administrative control and execution of the Department’s budget. It details the multi-level process for the receipt and distribution of budgetary resources, tracing funds from departmental-level receipt and Office of Management and Budget (OMB) apportionment down through intermediate-level allocation to the final execution level where obligations are incurred. The volume provides extensive guidance on mechanisms for financial flexibility, including the reprogramming of appropriated funds, appropriation transfer authorities, and the specialized "Feed and Forage" authority used for emergency procurement of necessities like clothing and subsistence. It also mandates rigorous standards for recording and reviewing commitments and obligations, while providing specific procedures for researching and correcting unmatched disbursements (UMDs), negative unliquidated obligations (NULOs), and in-transit disbursements. Furthermore, the regulation prescribes specialized accounting requirements for major programs and funds, including Military Construction, Public Enterprise and Trust Funds, and the Defense Working Capital Fund. Finally, it governs the entire lifecycle of budgetary resources, establishing strict accounting requirements for expired and closed accounts to ensure compliance with federal law