COMPLIANCE WITH THIS PUBLICATION IS MANDATORY

Transcription

1 BY ORDER OF THE SECRETARY OF THE AIR FORCE AIR FORCE INSTRUCTION , VOLUME 1 16 AUGUST 2012 Incorporating Change 1, 29 July 2015 Financial Management BUDGET GUIDANCE AND PROCEDURES COMPLIANCE WITH THIS PUBLICATION IS MANDATORY ACCESSIBILITY: Publications and forms are available for downloading or ordering on the e-publishing website at RELEASABILITY: There are no releasability restrictions on this publication. OPR: SAF/FMBMM Supersedes: AFI65-601V1, 3 March 2005 Certified by: SAF/FMB (MGen Edward L. Bolton, Jr.) Pages: 413 This instruction aligns with and implements AFPD 65-6, USAF Budget Policy. Volume 1 contains rules and procedures for using Air Force appropriated funds. In cases of conflict with other Air Force instructions or policy directives, the funding propriety rules stated here take precedence. This publication applies to all military and civilian Air Force personnel, including the US Air Force Reserve, Air National Guard (ANG), and the Civil Air Patrol. Refer recommended changes and questions about this publication to SAF/FMBMM using the AF Form 847, Recommendation for Change of Publication; route AF Form 847s from the field through the appropriate functional s chain of command. Ensure that all records created as a result of processes prescribed in this publication are maintained in accordance with AFMAN , Management of Records, and disposed of in accordance with the Air Force Records Disposition Schedule (RDS) located at SUMMARY OF CHANGES This interim change revises AFI , Volume 1, by (1) adding the Defense Working Capital Fund (DWCF) will not fund the movement of DWCF materiel moving to a Centralized Repair Facility (CRF) to be repaired/refurbished or from a CRF back to the point of use, (2) stating the Second Destination Transportation (SDT) Centrally Managed Allotment (CMA) will also be used to fund Repair Network Manager (RNM) directed shipments to/from CRFs in support of the

2 2 AFI65-601V1 16 AUGUST 2012 Repair Network Enterprise, and (3) to update tables 18.1 and A margin bar ( ) indicates changed material. Chapter 1 FINANCIAL MANAGEMENT IN THE AIR FORCE Overview Applying This Instruction Responsibilities Related Guidance Chapter 2 WARRANTS, APPORTIONMENTS, TRANSFERS, AND REPROGRAMMING Overview Responsibilities: Reprogrammings: Congressional New Start Notification Procedures Deferrals and Rescissions Chapter 3 BUDGET AUTHORIZATION, ALLOCATIONS, AND ALLOTMENTS Administering Budget Authority Documents: Basis for Budget Authorizations: Expired Year Budget Authorizations Using Allocations and Suballocations: Using Allotments and Suballotments: Issuing Budget Authorizations and Allocations Operating Centrally Managed Allotments (CMA): Year-End Adjustments: Using AF Form 401, Budget Authority/Allotment: Locally Prescribed Forms and Formats Emergency Funding Actions Figure 3.1. Designation of Appropriation Managers

3 AFI65-601V1 16 AUGUST Chapter 4 BUDGETING AND FUNDING GUIDANCE FOR VARIOUS APPROPRIATIONS 42 Section 4A Obligating Funds During the Last Two Months of the Fiscal Year Applying the 20-Percent Limit on Obligations Figure 4.1. Exceptions to the 20-Percent Limit on Obligations in August and September This paragraph intentionally left blank Section 4B Information Technology Equipment (ITE) and Resources Budgeting and Funding for General Purpose ITE O&M Funded Facilities and Activities RDT&E Funded Facilities and Activities Defense Working Capital Fund (DWCF) Facilities and Activities Site Preparation Table 4.1. Funding for Information Technology Equipment (ITE) Site Preparation Embedded Computers Funding Other Equipment with Computers Information Technology (IT) Summary Considerations Table 4.2. Information Technology Major Considerations (not sequential) Section 4C Honoraria Approving Honoraria and Speaking Fees Table 4.3. Honoraria Approval Thresholds Section 4D Emergency and Special Program (ESP) Codes 51 Table 4.4. Assigning ESP Codes Reserved For Future Use Using ESP Codes: Section 4E Technical Data Financing the Procurement and Printing of Technical Data Funding Engineering Drawing Requirements:... 53

4 4 AFI65-601V1 16 AUGUST Commercial Manuals Technical Data for Replenishment Spares Procurement Technical Data for Common Support Equipment Section 4F Space Launch Support Services Financing Launch Services Propellants Funding Section 4G Organizational, Intermediate, and Depot Logistic Support Provided By Contractors Funding Contractor Support Programs: Determining the Funds Chargeable Section 4H Prompt Payment Act (P.L , 5CFR Part 1315, 31 U.S.C. Section ) Financing Prompt Payment Charges: Assigning Data Elements: Section 4I Telephone System Costs Funding Advance Deposits for Installation Costs of Telephone Cable Required for New Family Housing Funding Other Telephone Activities: Figure 4.2. Funding for Installation and Maintenance of Telephone Wiring Used for Commercial "Unofficial" Telephone Service Section 4J USAF Heritage Program USAF Heritage Program (USAFHP) and associated activities Section 4K Ethnic and Holiday Observances, Traditional Ceremonies, and Entertainment Ethnic and Holiday Observances Funding Guidance: Traditional Ceremonies Entertainment Section 4L Awards, Award Ceremonies and Gifts Awards and Gifts Civilian Performance Awards

5 AFI65-601V1 16 AUGUST Refreshments at Awards Ceremonies Section 4M Chapel and Chaplain Programs Funding Guidance Section 4N Criteria for Determining Expense and Investment Costs Distinguishing Between Expense and Investment Costs Investment Cost Decision Figure 4.3. Decision Making Factors for Investment Cost Section 4O Licencing of Intellectual Property Application Programmatic Directives Accounting Fee/Royalty Purposes Excess Fees/Royalties Accounting Codes Section 4P Other Guidance Personalized Stationery Business and Greeting Cards: Housing Damage Liability: Buying Books, Periodicals, Newspapers and Pamphlets: Funding Consecutive Overseas Tours Appliances and Furnishings Retiree Activities Programs Section 4Q Meals, Conferences, Training, and Fees Use of Appropriated Funds for Meals and Light Refreshments Funding for Air Force Sponsored Conferences Non-government Sponsored Conferences

6 6 AFI65-601V1 16 AUGUST Government (non-air Force) Sponsored Conferences Avoiding Double Recovery for Meals Scientific, Technical, and Professional Symposiums, Conferences, and Similar Meetings Veterinary Services: Membership in Professional Organizations Special Drinking Water CREEK SWEEP Credits Licenses and Certificates for Military Members Service Contracts Crossing Fiscal Years Air Navigation and Overflight Fees Landing and Parking Fees Funding for Athletic Supplies and Fitness Equipment Real Property Damage Recovery Undefinitized Contractual Actions (UCA) U.S. Flag for Active Duty Military Retirees Memorials and Monuments Cable TV in Dormitories Heart Link Program Temporary Authority to Hire Contract Security Guards Exemption of Certain Firefighting Contracts from Prohibition on Contracts for Performance of Firefighting Functions Section 4R Planning and Tracking Obligations and Outlays Supplementing OSD Appropriations (97X) with O&M 3400 Funds Submitting Outlay Plans Planning: Tracking

7 AFI65-601V1 16 AUGUST Chapter 5 APPROPRIATION REIMBURSEMENTS AND REFUNDS 87 Section 5A Appropriation Reimbursements General Reimbursement Guidance: Responsibilities for Developing Anticipated Reimbursements: Responsibilities for Earning Anticipated Reimbursable Programs Funding Procedures and Application Table /3011/3020/3080 Appropriations To Be Charged or Credited For The Purchase or Sale of Investment Items To Fill Customer Orders Billing and Collecting Small Amounts: Reporting Instructions: Statutory Authorities. Attachment 1 (Public Laws) to this AFI shows statutory authorities for appropriation reimbursements commonly used in DoD Obtaining Materiel, Work, or Services from Others Deobligation, Reimbursable Economy Act Orders (31 U.S.C. 1535) Security Assistance Program Reimbursements Section 5B Appropriation Refunds Using Refunds Examples of Appropriation Refunds: Refunds Receivable Disposing of Refunds Other Refunds Section 5C Administrative and Accessorial Costs Special Guidance Charging Accessorial Costs Figure 5.1. Accessorial Charge Rates Contract Cost Billings

8 8 AFI65-601V1 16 AUGUST 2012 Chapter 6 EXPIRED AND CANCELED APPROPRIATIONS Applying this Chapter Applying Changes in the Appropriation Life Cycle: Determining Contract Changes and Upward Obligation Adjustments (UOA) Figure 6.1. Decision Tree - Contract Changes and Obligation Adjustments Using Current and Expired Appropriations Controlling Current Appropriation Limitations: Approving Upward Obligation Adjustments and Contract Change Requests: Processing Unrecorded Obligations and Payments: Complying with the Antideficiency Act Handling Foreign Currency Fluctuation Obligations and Payments: Using Other DoD Appropriations: Obligating Upward Adjustments in the Accounting System: Reviewing Unliquidated Obligation (ULO) Balances in the Expired Years: Charging Prior Year Obligated Due-Outs: Reprogramming Complying With Control Levels in Expired Accounts: Collections Monthly and Fiscal Year-end Reporting Requirements for Transactions under $100, Chapter 7 SUPPORT GUIDANCE 118 Section 7A Overview Applying This Chapter Complying with Statutory Authority Responsibilities: Section 7B Intraservice Relationships (Within the Air Force) General Host-Tenant Responsibilities:

9 AFI65-601V1 16 AUGUST Figure 7.1. Host-Tenant Funding Responsibility by Type of Service Handling Unfunded Requirements This paragraph intentionally left blank This paragraph intentionally left blank Defense Working Capital Fund (DWCF): Disposing of Turn-in Credits: Billing Tenants: Making Jurisdictional Transfers Reimbursing Landing Fees and Base Maintenance for Transient Aircraft Reserved for future use Investigating Aircraft Accidents, Including Remotely Piloted Aircraft, and Environmental Cleanup Section 7C Interservice Relationships Overview Cross-Servicing: Determining Cross-Servicing Charges Accepting Cross-Service Orders: Financing Cross-Service Orders: Processing Commitments and Obligations Resolving Service Disagreements Joint-Use Guidance Section 7D Support of Non-DoD Departments and Agencies Overview Financing Economy Act Orders Executing Economy Act Orders Table 7.1. Authorized Advance Payment Economy Act Orders Economy Act Order Procedures:

10 10 AFI65-601V1 16 AUGUST Other Methods of Funding Transactions with GSA for Leased Facilities: Air Transportation Provided to Non-Defense Agencies: Terms for Support Agreements Section 7E Civil Air Patrol (CAP) and Air Force Civil Air Patrol Liaison Offices Overview Supporting CAP with the use of Appropriated Funds Non-Allowable Expenses Supporting Air Force-CAP Liaison Offices Section 7F Disaster Relief in the United States, Its Territories and Possessions Overview: Air Force Responsibilities: Funding Procedures: Section 7G Disaster Relief in Foreign Countries Overview Air Force Guidance Funding Procedures Documentation Requirements Section 7H International Military Activities Overview: Responsibility for National Support: Figure 7.2. Administrative Agents for National Support Cross-Servicing Reimbursable Support: Reimbursement Procedure: DoD Guidance

11 AFI65-601V1 16 AUGUST Paying United States Personnel: Costs Included and Excluded from International Budgets Section 7I Use of Air Force Research and Test Facilities Overview Budgeting and Funding of the Air Force Research Laboratory (AFRL): Funding Responsibilities for Designated Major Range and Test Facility Base (MRFTB) Activities Table 7.2. Major Ranges and Test Facilities Section 7J Support of Civil Disturbances Funding Guidance: Section 7K Support of Civil Authorities in Airplane Hijacking Emergencies Funding Guidance Section 7L Support of the United States Secret Service Statutory Basis and Implementing Directives: Funding Guidance: Section 7M Joint-Use Facilities Overview Responsibilities for Military Construction Maintenance and Service Support Chapter 8 AIR FORCE PROCUREMENT APPROPRIATIONS (57*3010, 57*3011, 57*3020, AND 57*3080) 164 Section 8A General Guidance Scope and Availability of Appropriations: Depot Level Reparables (DLR): Full Funding Weapon System Engineering Exceptions:

12 12 AFI65-601V1 16 AUGUST Modification Engineering Section 8B Aircraft (57*3010) Aircraft Structural Integrity Program (ASIP) Retrofitting or Converting Aircraft: Modifying Aircraft to Drone Configuration Section 8C Weapons (57*3020) Intercontinental Ballistic Missile (ICBM) Force Missile Site Updating Logistic Support of Fixed Installed Missile Support Equipment Missile Modification or Reconfiguration Missile Propellants Section 8D Investment Equipment (57*3080) Investment Equipment for Major Range and Test Facilities Base Procured Investment Equipment (BPIE): Finance the Following Items with 57*3080, BPAC 84501X Funds: Do Not Finance the Following Items with 57*3080, BPAC 84501X Funds: Turn-Key Procurement: Section 8E Real Property Installed Equipment Procuring Real Property Installed Equipment and Portable Equipment: Procuring and Installing Communications-Electronic Systems Equipment (Other than Communications Systems) Procured on an Installed Basis Section 8F Production Activities Government-furnished Expense Items to Production Contractors: Pilot Production Costs for Closing Down a Production Line

13 AFI65-601V1 16 AUGUST Section 8G Guidance for Funding Maintenance and Modification Financing Maintenance and Modifications: Intentionally left blank Section 8H Value Analysis and Engineering Value Analysis of Spare Parts: Table 8.1. Appropriations to Charge for Value Analysis of Spare Parts Guidance for Funding Value Engineering (VE) Sharing VE Incentive and Program Requirement Clauses: Section 8I Other Investment Procurement Policies Funding Test and Evaluation Purchasing Information Technology Equipment (ITE) Funding the Local Manufacture of Investment Items Funding Support Equipment Funding Technical and Engineering Data Training: Repairing Government-Furnished Materiel (GFM) Industrial Responsiveness/Facilities and Equipment Funding Supplies and Equipment for the National Air and Space Intelligence Center (NASIC) and the Air Force Technical Application Center (AFTAC): Production-Related Travel First Destination Transportation (FDT) General Use Vehicles for Research and Development (R&D) Activities: Buying Back Materiel an FMS Customer Offers for Return Funding for Reliability Improvement Warranty (RIW) Table 8.2. Reliability Improvement Warranty (RIW) Funding Support Procedures for Replacement and Deposits to the General Fund of the Treasury Small Weapons Procurement

14 14 AFI65-601V1 16 AUGUST Power Conditioning and Continuation Interfacing Equipment (PCCIE): Table 8.3. Test Program Sets (TPS) Follow these procedures for funding: Bid Sample Testing for Non-Development Items (NDI) Investment Funded Acquisition Costs: Table 8.4. Program Management Administration (PMA) Funding Chapter 9 MILITARY CONSTRUCTION APPROPRIATIONS 192 Section 9A Planning and Programming, Authorizations and Appropriations Composition of Program Table 9.1. Military Construction Appropriations Obtaining Congressional Authorizations: Obtaining Congressional Appropriations Relating Budget: Section 9B Funding Relocatable Buildings, Stress Tension Shelters, Aircraft Sun Shades and other modular structures Relocatable Buildings Funding Relocatable Buildings, STSs and Aircraft Sunshades Table 9.2. Funding For Relocatable Buildings, Stress Tension Shelters, Aircraft Sun Shades, And Other Modular Structures Prewired Work Stations, Systems Furniture, Communications Prewiring: Unspecified Minor Construction (P-341): Table 9.3. Unspecified Minor Construction Approval and Reporting O&M Minor Construction Acquiring Air Conditioning Systems for New Construction or Additions Section 9C Financial Management for Military Construction Projects Financial Management Guidance Funding for Planning and Design: Under the authority of planning and design, the Military Departments may also:. 199

15 AFI65-601V1 16 AUGUST Costs Financed with Military Construction Appropriations Financing Efforts by Other than Military Construction Appropriations: Authorization, Appropriation, Obligation, and Expenditure Restrictions: Table 9.4. Excluded Indirect Costs from 6 Percent Threshold Phases of Military Construction Chapter 10 OPERATION AND MAINTENANCE, AIR FORCE, APPROPRIATION 212 Section 10A Scope Purpose Section 10B Temporary Duty Travel (TDY) Funding TDY Costs: Funding Travel Related to Training Courses Funding TDY for Special Technical and Flying Training Funding TDY for Field and Mobile Training (AF ) Funding Travel of Air Force Military Applicants for the United States Air Force Academy (USAFA) Funding Travel to Support Initial Operational Test and Evaluation (IOT&E) or Developmental Test and Evaluation (DT&E) Not Used Funding Travel for Air Force Recruiters Funding Travel Related to Ferrying Aircraft Table Budgeting and Funding for Aircraft Ferrying: Funding Travel of Escorts for Dependents of Deceased or Missing Air Force Military Personnel Funding Travel to Attend Meetings of Technical, Professional, Scientific, and Other Similar Organizations Funding Attendance at National Rifle and Pistol Matches by Air Force Personnel Funding Travel Related to Logistics Evaluation of Independent Research and Development (LEIR&D)

16 16 AFI65-601V1 16 AUGUST Funding Travel Related to Disability Retirement Processing Under AFI , Physical Evaluation for Retention, Retirement, and Separation Funding Witness Travel Table Funding for Travel Connected with Administrative Boards or Disciplinary Procedures Funding Travel Related to Equal Employment Opportunity (EEO) Complaints Funding Travel Related to Emergency Leave Funding Dependent Student Travel Funding Medical Related Travel Funding Travel for the USAF Occupational Measurement Center (USAFOMC) Financing Contract Quarters for Air Force and DoD Employees in a Travel Status (Includes Members of the Active and Reserve Forces) Section 10C Medical Support Financing Medical Support: Executing the Medical Budget Expenses Chargeable to Medical Support Do Not Charge to Medical Support: Sales of Subsistence at Medical Facilities Sales of Medical Services Third Party Payers Procurement of Medical Publications and Printed Material Managing the Reimbursable Program: Health and Wellness Centers (HAWC) Section 10D Property Disposal Programs Defense Reutilization and Marketing Office (DRMO): Foreign Equity Property Information Technology Equipment (ITE) owned by General Services Administration (GSA)

17 AFI65-601V1 16 AUGUST Funding for Sale of Forest Products Precious Metal Recovery Program (PMRP) Funding Responsibilities for the Qualified Recycling Program (QRP) (10 U.S.C. 2577) Section 10E Transportation of Property Funding First Destination Transportation (FDT): Funding Second Destination Transportation Budgeting, Funding, and Expensing Transportation Charges: Charging Domestic Freight Shipments Using Commercial Forms SDT Exceptions: Land Transportation Within Overseas Areas DWCF Property Funding Redistribution Order (RDO) Type Shipments Funding Army-Air Force Exchange Service (AAFES) Property: Funding Demurrage, Detention, and Storage Costs Funding Unit Deployments, Redeployments, Relocations, and Deactivations: Funding Transportation from Contractor s Bonded Storage: Funding Transportation from Defense Property Disposal Offices Funding the Shipment and Nontemporary Storage of Household Goods Section 10F Education of Dependents Supporting Department of Defense Dependents Schools (DoDDS) in Foreign Countries Section 10G Licensing Agreements Using Copyrighted Music in Overseas Areas Section 10H JCS Exercises CJCS Exercise Program (PE 28011F) Section 10I Funding for Individual Clothing 241

18 18 AFI65-601V1 16 AUGUST Using O&M-Type Funds for Clothing Sales Store Charges Other Military Clothing Table Military Clothing Enlisted Personnel Table Military Clothing Officer Personnel Section 10J Funding Responsibilities for Organizational Clothing Funding Distinctive Uniforms and Functional Clothing Civilian Uniforms Financing the Introduction of New Clothing Items Section 10K Unaccompanied Personnel Housing Leasing Unaccompanied Personnel Housing Section 10L Type 1 Factory Training Funding of Factory Training Section 10M Lease or Rental of Equipment Leasing or Renting Equipment Section 10N Land Purchases Funding Minor Land Purchases Funding Environmental Surveys of Land Interests Prior to Acquisition or Disposal Funding Environmental Non-Compliance Fines and Penalties (Federal Facility Compliance Act (FFCA)) Section 10O Air Force Claims Claims Payable From O&M Funds Carrier Recoveries Section 10P The Subsistence Program Funding the Subsistence Program Section 10Q Counternarcotics and Drug Demand Reduction Programs Counternarcotics Programs and Reprogramming Process

19 AFI65-601V1 16 AUGUST Chapter 11 MANAGEMENT FUNDS Purpose of Management Funds Purpose Responsibilities: Procedures: Figure Uniform Format for Management Fund Account Charters Chapter 12 MILITARY PERSONNEL (MILPERS) APPROPRIATION (57*3500) General Guidance: Using Centrally Managed Allotment (CMA) Procedures Responsibilities: Complying with Statutory Entitlements Budgeting and Funding for Permanent Change of Station (PCS) Movements Travel of Indigent Army, Navy, and Air Force Enlisted Personnel: Other Military Personnel Costs Travel of Guards: Participation of USAFR and ANG Units in Regular Air Force Exercises (MPA Man-Day Program) Nontemporary Storage Charges Reimbursements for Military Personnel Services The Subsistence Program Emergency Evacuation Allowances Consecutive Overseas Tours Housing Moves at a Permanent Duty Station (PDS) for Government Convenience Program 780, Reserve Officer Training Corps (ROTC)

20 20 AFI65-601V1 16 AUGUST 2012 Chapter 13 RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) APPROPRIATION (57*3600) 267 Section 13A General Guidance Applying the Uniform Budget Structure Table RDT&E Budget Structure Managing RDT&E Funds Applying Incremental Programming and Financing for RDT&E Delineating Funding Responsibility Between RDT&E and Procurement Appropriations: Family Housing Tenant Activities Managing Uncommitted and Unobligated Balances in RDT&E Charging Cost Increases for Incrementally-funded R&D Contracts: Aircraft Engine Component Improvement Information Technology Equipment (ITE) Value Engineering Factory Training General Use Vehicles for Research and Development (R&D) Activities Section 13B Funding to Acquire Research and Development (R&D) Facilities and Install R&D Equipment Acquiring Facilities with RDT&E Funds Installing R&D Equipment Installing Air Conditioning Funding Criteria Approving RDT&E Funds: Responsibilities of SAF/IEI Responsibilities of HQ AFMC and HQ AFSPC: Accounting Records:

21 AFI65-601V1 16 AUGUST Disposing of Records Environmental Certification: Chapter 14 TEST AND EVALUATION Applying This Chapter Funding Test and Evaluation (T&E) Costs Funding for Operational Testing Funding Qualification Tests and PAT&E Tests Budgeting and Funding DT&E Budgeting and Funding for Operational Testing: Figure Examples of Test and Evaluation Support Costs Chapter 15 AIR FORCE RESERVE APPROPRIATIONS (57*3700, 57*3740) Overview Using the Reserve Personnel, Air Force Appropriation (57*3700) Using the Operation and Maintenance, AFR, Appropriation (57*3740) Table Operations and Maintenance, AFR, Budget Activity Codes (BAC) Using Other Appropriations: Preparing Budget Estimates and Financial Plans Supporting AFRC Conversions Funding Call-up to Active Duty (10 U.S.C ): Travel and Per Diem Reserve Training on Unit-Equipped AFRC Aircraft Chapter 16 AIR NATIONAL GUARD (ANG) APPROPRIATIONS Supporting the ANG Using National Guard Personnel, Air Force Appropriation (57*3850): Using the O&M, ANG Appropriation (57*3840): Table Operation and Maintenance, ANG, Budget Activity Codes

22 22 AFI65-601V1 16 AUGUST Basis for Reimbursing for Depot Maintenance Supporting ANG Conversions Chapter 17 SECURITY ASSISTANCE PROGRAM The Security Assistance (SA) program is composed of six major components: FMS Trust Fund and Antideficiency Act Chapter 18 DEFENSE WORKING CAPITAL FUND (DWCF) 294 Section 18A General Guidance Defense Working Capital Funds (DWCF) Overview: Section 18B Financial Administration of the DWCF Issuing and Complying with Budget Authority Documents Recovering Full Costs and Setting Prices: Setting Rates: Applying Depreciation: Including Costs in the DWCF Excluding Costs from the DWCF: Recognizing Revenue Paying for Military Personnel Acquiring Capital Assets: Section 18C Guidance for Specific Business Areas Depot Maintenance: Supply Management: Table Table Table Budgeting And Funding For Consolidated Sustainment Activity Group Supply Division (CSAG-Supply) Supply Transportation Charges, Excluding Bulk Fuels. 308 Budgeting and Funding for General Support Division (GSD) Transportation Charges, Excluding Fuels Budgeting and Funding For Medical-Dental Division (MDD) Transportation Charges, Excluding Bulk Fuel

23 AFI65-601V1 16 AUGUST Chapter 19 OFFICIAL VISITS CONCERNING BUDGET MATTERS Conducting Budget Liaison Notifying Budget Officials about Visits: Reporting Official Visits Concerning Budget Matters: Command Actions Chapter 20 WILDLIFE CONSERVATION, ETC., MILITARY RESERVATIONS, AIR FORCE (57X5095) Using Wildlife Conservation Funds Sourcing Funds Budgeting for Funds Chapter 21 MILITARY FAMILY HOUSING (MFH) APPROPRIATIONS 328 Section 21A The Defense Family Housing Property Account Determining Properties to Include in the Defense Family Housing Property Account: Section 21B Military Family Housing Construction Account (57*/*0740) Budget Program 710, Construction and Improvements after Acquisition Figure Design and Inspection Costs - P-713, P-714, and P-722 Requirements Matrix Figure shows budget projects, account codes and types of costs for MFH construction Figure MFH Construction Matrix Section 21C Military Family Housing Operation and Maintenance Account (MFH O&M, 57* Charging Costs to MFH O&M: Budget Program 720, Operation and Maintenance Limiting Spending: Transferring and Reprogramming Funds: Obligating Funds for Materiel Buying Washers and Dryers in Continental United States (CONUS) Buying Tableware for Special Command Positions

24 24 AFI65-601V1 16 AUGUST Paying Taxes Providing Common-Service and Interagency Support for MFH Occupancy and Services Charging for Occupancy of MFH by Contractors and Other Nonmilitary People: Occupying Substandard Housing: Section 21D Debt Payments Charging the Debt Payment Program Administering and Controlling Debt Payments: Section 21E Reimbursements MFH O&M Reimbursing MFH O&M Determining Other Reimbursements: Chapter 22 CIVILIAN PERSONNEL SERVICES Overview Coordinating Personnel Authorizations and Workyears with Fund Authorizations Permanent Change of Station (PCS) Travel: Paying Civilian Personnel Working on Major Repair Projects Awards Guidance Pay of Civilian Personnel Employed in Certain Specialized Functions Subsistence and Quarters to Civilian Employees Witness and Jury Fees Lump-Sum Leave Payment Unliquidated Leave Travel Over-Advances Reimbursement of Professional Liability Insurance Premiums

25 AFI65-601V1 16 AUGUST Chapter 23 BASE CLOSURE AND REALIGNMENT (BRAC) APPROPRIATIONS 348 Section 23A Appropriation Structure and Data Codes BRAC Appropriations Table BRAC 88 (Round I) Table BRAC 91 (Round II) Table BRAC 93 (Round III) Table BRAC 95 (Round IV) Structure of the Account Section 23B Funds Administration and Budget Execution Financial Responsibilities: Budget Process: Operating Under Continuing Resolution Authority: Reprogramming: Tenant Requirements: Section 23C Funding Guidance Availability of Appropriations for BRAC Costs: Election Rule Section 23D Other Funding Guidance Military PCS Costs: Civilian Personnel Costs Tenant Employees Costs Training Costs For AFRPA Employees Packing, Crating, And Transportation of MWR Equipment Congressional Approval for Construction Non-Appropriated Fund Instrumentalities (NAFI) Costs Including Facilities Construction: Funds Request and Issue Process

26 26 AFI65-601V1 16 AUGUST 2012 Figure BRAC Funds Flow Table Financing BRAC Costs Table BAANs (2005 BRAC Recommendations) Table Budget Program (BP) and Budget Project Numbers 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

27 AFI65-601V1 16 AUGUST Chapter 1 FINANCIAL MANAGEMENT IN THE AIR FORCE 1.1. Overview. Financial management is the process of determining requirements, obtaining resources, and effectively and efficiently applying those resources to meet the Air Force's direct mission and support responsibilities. Commanders are responsible for this process. Financial management also has oversight responsibilities to include evaluation of internal controls, procedures, and protection of government assets Applying This Instruction. All activities that prepare, justify, and execute Air Force appropriations, including Air Force business areas of the Defense Working Capital Fund, must follow this guidance Responsibilities. The following responsibilities are established: The Deputy Assistant Secretary of the Air Force, Budget (SAF/FMB): Establishes Air Force appropriated fund budget guidance and procedures for preparing, justifying, and executing budgets Provides guidance on organizational and appropriation funding responsibilities and use of funds (propriety) issues Develops and maintains the budget structure and associated codes Serves as a member of the Air Force Services Council (SAF/FMB), serves as Chairperson, NAF Finance Committee (SAF/FMB) and provides the Chairperson for the Air Force Services Audit Committee (SAF/FMBO). See details in AFI , NonAppropriated Funds Financial Management Oversight Responsibilities, and Committee Charters MAJCOMs, Air Force Reserve (AFR), Air National Guard (ANG), Headquarters Air Force (HAF), Field Operating Agencies (FOA), Direct Reporting Units (DRU), and Civil Air Patrol (CAP) program managers and installations will program, budget and administer appropriated funds according to the guidance and procedures in this instruction Related Guidance. See related guidance in Department of Defense (DoD) R, Department of Defense Financial Management Regulation, authorized by DoD Instruction , Department of Defense Financial Management Policy and Procedures; Volume 2 of this AFI, Budget Management for Operations; AFMAN , Appropriation Symbols and Budget Codes, and AFI , Appropriated Fund Support of Morale, Welfare, and Recreation (MWR) and Nonappropriated Fund Instrumentalities (NAFI). See financial regulations of the Defense Finance and Accounting Service (DFAS) for related accounting guidance available at

28 28 AFI65-601V1 16 AUGUST 2012 Chapter 2 WARRANTS, APPORTIONMENTS, TRANSFERS, AND REPROGRAMMING 2.1. Overview. The Congress, the Office of Management and Budget (OMB), the Treasury Department, and Office of the Under Secretary of Defense Comptroller OUSD(C) must take certain actions before the Air Force can legally obligate and expend appropriated funds.an appropriation bill becomes law (is enacted) when the President signs it, or when the Congress passes it over the President s veto (unless the bill gives a different effective date). After the Congress enacts an appropriation, the Treasury issues an appropriation warrant and OMB apportions the appropriation. Title 31 U.S.C., Section 1512 contains apportionment criteria Responsibilities: SAF/FMB requests apportionment from the DoD Comptroller When the DoD operates under a continuing resolution authority (CRA), SAF/FMB must request apportionment from the Office of Management and Budget (OMB) for amounts needed during the period of the CRA. SAF/FMB will issue funding documents to major commands (MAJCOM) and other Air Force field activities. OMB approves apportionment requests If the Congress has not enacted the DoD appropriation act and has not passed a CRA, SAF/FMB will provide guidance on how to operate without funding authorization. Usually, federal agencies cannot initiate new program starts under continuing resolutions The transfer of funds between appropriations resulting from congressionally directed transfers or reprogramming actions are accomplished by SAF/FMB using SF Form 1151, Nonexpenditure Transfer Authorization, processed through and validated by the Treasury Department. SAF/FMB can make transfers only with legal authority, e.g., congressionally directed transfers in appropriation language, or specific Congressional direction/approval, e.g. reprogrammings Reprogrammings: Reprogramming involves realigning funds from one purpose (or program) to another; a program may be defined as a line item on the Base for Reprogramming Actions (DD 1414) for a given year. Within DoD, reprogramming includes transferring funds between appropriations and moving funds between programs (which can include line items, subprograms, sub-projects as applicable) in the same appropriation The Congress authorizes and appropriates funds for programs that are either stated in statutory language or discussed in the committee reports that accompany authorization and appropriation acts. However, Congress recognizes unforeseen requirements occur during the execution phase of a budget and, therefore, permits reprogramming of funds in execution within certain guidelines, which are subject to annual Congressional guidance. Both statutory and regulatory rules govern reprogramming Follow these rules: The Congress must provide prior approval of a reprogramming if it:

29 AFI65-601V1 16 AUGUST Transfers funds between appropriation accounts or working capital funds that involve the use of transfer authority For Internal Reprogramming actions, transfer of funds from one appropriation to another for the same purpose does not require Congressional Approval. However, there may be exceptions; see DoD FMR R, Volume 3, Chapter 6. The transfer is requested via a DD Form Internal Reprogramming. DoD FMR R details audit-trail type actions that fall under internal reprogramming. Example: A congressional add to the O&M, AF appropriation for research and development work this activity is properly funded in RDT&E, AF. See OSD Reprogramming Authority Policy for additional details; reference DoD FMR R, Volume 3, Chapter Affects an item known to be of special interest to one or more Congressional oversight committees. In rare instances, when funds from special interest items are to be reprogrammed from an existing program, subprogram, project, or subproject to another program, subprogram, project, or subproject within the same procurement line item or program element, letter notification to the congressional committees may be made Increases the quantity of a procurement line item authorized by Congress in quantity terms, unless specific Congressional language allows for additional quantities to be procured within appropriated funds. Increases resulting from such language require approval via a DD , Reprogramming Action See Chapter 6 for guidance on within-scope contract changes and upward obligations for canceled accounts See Chapter 18 for Reprogramming in Defense Working Capital Fund Business Areas See DoD FMR R, Volume 3, Chapters 6 and 7 for further details Congressional New Start Notification Procedures Congressional new start notification procedures are delineated in DoD FMR R, Volume 3, Chapter 6. Appropriation thresholds are established by the OUSD(C); contact the SAF/FMB appropriation manager for threshold, etc. matters New Start: A program, subprogram, modification, project or subproject, regardless of amount, not explicitly and previously justified to, and funded by, the Congress in a given appropriation through the normal budget process. This includes any effort that is not described in the Research, Development, Test and Evaluation (RDT&E) or Procurement Justification Books accompanying the President s Budget (PB). Budget justification documentation submitted to Congress can be found on the SAF/FM web site at For purposes of this paragraph, the following definitions apply Program For investment accounts, the aggregate level of budget line items as identified in the President s Budget P-1 and R-1 justification documents and related classified annexes and reports as subsequently modified by Congressional action.

30 30 AFI65-601V1 16 AUGUST For O&M and Military Personnel accounts, new starts would be significant new programs that have not been explicitly justified to Congress in budget justification material. Refer to the subactivity group on the O-1 for the program level identification and the detailed narrative justification for specific activities Sub-Program/Project/Sub-Project: The most specific level of budgeted items identified in the President's Budget justification documents and related classified annexes. These sub-programs, project, and sub-projects are shown as separate efforts below the P-1/R-1 line For RDT&E refer to R-2A budget exhibits by fiscal year. The Budget Program Activity Code (BPAC) may also indicate the level of detail that should be reviewed For Aircraft, Missile, and Other Procurement refer to P-40 narrative and supporting exhibits such as P-3As, P-5s Note that the RDT&E BPAC may exist and have funds in the year of the effort under consideration; however, if this new effort is not included in the budget documentation, a new start notification is still required Modifications: Modifications are the alteration, conversion, modernization, or major service life extension of an end item of investment equipment which changes or improves either the original purpose or operational capacity in relation to effectiveness, efficiency, reliability or safety of that item. P-1 line items are considered programs, and modification number identified on the P-3 report would be the sub-program or project All modifications, regardless of amount, not previously justified and appropriated by Congress require Congressional notification or prior approval (depending upon dollar value) before obligations can occur. See OSD Reprogramming Authority Policy for additional information Safety Modification. Safety modifications and safety programs costing less than $20 million for the entire effort can be initiated immediately following submission of Congressional notification. See DoD FMR R, Volume 3, Chapter 6, paragraph D. A modification that corrects a material deficiency which caused a Class A Mishap (per AFI , Safety Investigations and Reports), as determined by the AFSC Memorandum of Final Evaluation, shall be classified a safety modification. Other modifications may be classified as a safety modification as described in AFI , Modification Management Low cost Modification (Mod #9999X): Individual modifications funded in the Low Cost Modification line generally satisfy an unforeseen requirement estimated to complete within one year. Total funding for efforts on the Low cost Mod line for each fiscal year should not exceed $2.0M per year. Any effort not consistent with the Low Cost Mod line budget documentation or efforts exceeding the $2.0M dollar threshold are not considered low cost and must be documented on a separate P3A and are subject to new start guidelines Service Bulletin. Service bulletins are airworthiness directives issued by the FAA or the weapon system manufacturer. These modifications are required to

31 AFI65-601V1 16 AUGUST keep the weapon system in compliance with FAA standards and to maintain FAA certification. Modifications as a result of FAA service bulletins are considered new starts if they occur during execution years and are not consistent with the Service Bulletin modification line budget documentation Spares and Repair Parts: Items procured by these lines are normally not individually justified; therefore, procurement of additional items, based upon demand, would normally not be considered to be new starts. New Start notification procedures do apply whenever it results in a new program or P-1 line item Refer to AFI , Acquisition and Sustainment Life Cycle Management for additional guidance Deferrals and Rescissions. Initiate deferral actions only with SAF approval. Forward requests for deferrals through MAJCOMs/FOAs to SAF/FMB for review and approval. See Attachment 4 for specific DoD Comptroller guidance on using deferrals and rescissions.

32 32 AFI65-601V1 16 AUGUST 2012 Chapter 3 BUDGET AUTHORIZATION, ALLOCATIONS, AND ALLOTMENTS 3.1. Administering Budget Authority Documents: This chapter explains procedures for using budget authorizations, allocations, suballocations, allotments, and suballotments for appropriations that are not administered under the accounting system for operations. AFI , Volume 2, explains how to use the operating budget authority document (OBAD) for appropriations administered under the accounting system for operations The Air Force goal is to provide optimum fund flexibility at all levels. Therefore, Air Force funds issuing activities will: Issue budget authorizations and other management type authorizations at the highest practical level within an appropriation, consistent with the requirements of management and limitations imposed by the executive and legislative branches of the federal government Issue allocations and allotments (including suballocations and suballotments) at the appropriation level at all echelons except as indicated in paragraph Include limitations on funds use required by law and limitations on funds use required by the legislative and executive branches of the federal government and the Department of the Air Force on allocation documents. Limitations subject to Title 31 U.S.C. (and DoD FMR R, Volume 14) must apply to total availability or total obligations for specific purposes. Clearly identify each specific limitation in the "Limitations" portion of the allocation document Operating agencies that receive budget authorizations and allocations from SAF/FMB must issue budget authorizations and suballocations or allotments to themselves for direct administration and obligation, or to subordinate or lateral activities Operational activities that receive budget authorizations and suballocations or allotments must use these authorizations for direct administration and obligation. However, if performance is to be by another activity, issue budget authorizations and allotments, suballotments, AF Form 616, Fund Cite Authorization, or other citation of funds to those activities Recipients who subissue budget authorizations, suballocations, allotments, or suballotments may not remove nor add to restrictions contained in the instruments they receive The ultimate end user may subdivide the budget authorizations, allotments, or suballotments as necessary to maintain control over funds, provide data for budget estimates and reports, and provide for local management requirements Commands, subcommands, or installations that receive budget authorizations and allotments or suballotments from parent organizations, which are to be obligated for the requirements of tenant units located on or supported by the host organization, will subdivide them when necessary to: