jp 1-06, joint tactics, techniques, and procedures …99).pdf · joint tactics, techniques, and...

22 December 1999

Joint Tactics, Techniques,and Procedures for

Financial Management DuringJoint Operations

Joint Publication 1-06

PREFACE

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1. Scope

This publication provides tactics,techniques, and procedures for the financialmanagement process in support of a US jointforce.

2. Purpose

This publication has been prepared underthe direction of the Chairman of the JointChiefs of Staff. It sets forth doctrine andselected joint tactics, techniques, andprocedures (JTTP) to govern the jointactivities and performance of the ArmedForces of the United States in joint operationsand provides the doctrinal basis for USmilitary involvement in multinational andinteragency operations. It provides militaryguidance for the exercise of authority bycombatant commanders and other jointforce commanders and prescribes doctrineand selected tactics, techniques, andprocedures for joint operations and training.It provides military guidance for use by theArmed Forces in preparing their appropriateplans. It is not the intent of this publication torestrict the authority of the joint forcecommander (JFC) from organizing the forceand executing the mission in a manner the JFCdeems most appropriate to ensure unity ofeffort in the accomplishment of the overallmission.

3. Application

a. Doctrine and selected tactics,techniques, and procedures and guidanceestablished in this publication apply to thecommanders of combatant commands,subunified commands, joint task forces, andsubordinate components of these commands.These principles and guidance also may applywhen significant forces of one Service areattached to forces of another Service or whensignificant forces of one Service supportforces of another Service.

b. The guidance in this publication isauthoritative; as such, this doctrine (or JTTP)will be followed except when, in the judgmentof the commander, exceptional circumstancesdictate otherwise. If conflicts arise betweenthe contents of this publication and thecontents of Service publications, thispublication will take precedence for theactivities of joint forces unless the Chairmanof the Joint Chiefs of Staff, normally incoordination with the other members of theJoint Chiefs of Staff, has provided morecurrent and specific guidance. Commandersof forces operating as part of a multinational(alliance or coalition) military commandshould follow multinational doctrine andprocedures ratified by the United States. Fordoctrine and procedures not ratified by theUnited States, commanders should evaluateand follow the multinational command’sdoctrine and procedures, where applicable.

C. W. FULFORD, JR.Lieutenant General, US Marine CorpsDirector, Joint Staff

For the Chairman of the Joint Chiefs of Staff:

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TABLE OF CONTENTS

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PAGE

EXECUTIVE SUMMARY ............................................................................................. v

CHAPTER IFINANCIAL MANAGEMENT FOR JOINT OPERATIONS

• Introduction.............................................................................................................. I-1• Overview.................................................................................................................. I-1• Purpose of Financial Management............................................................................ I-2• Financial Management Executive Agent................................................................... I-2• Stewardship.............................................................................................................. I-3• Objectives of Joint Financial Management................................................................ I-3• Principles of Joint Financial Management................................................................. I-4• Roles and Missions of the Supported Combatant Commander Comptroller

and Joint Task Force Comptroller........................................................................... I-5• Supported Combatant Commander’s Comptroller Responsibilities........................... I-7• JTF Comptroller Responsibilities............................................................................. I-7• Organization and Functions of a JTF Comptroller.................................................... I-8• Component FM Responsibilities............................................................................... I-9• DOD FM Responsibilities......................................................................................... I-9

CHAPTER IIRESOURCE MANAGEMENT OPERATIONS

• Overview................................................................................................................. II-1• Essential Elements of Resource Management........................................................... II-1

CHAPTER IIIFINANCE OPERATIONS

• Overview............................................................................................................... III-1• Essential Elements of Finance Operations.............................................................. III-1

APPENDICES

A Financial Management Responsibilities Within the Department of Defense...... A-1B Joint Task Force Comptroller Checklist............................................................. B-1C Guide to OPLAN Development......................................................................... C-1D Legal ................................................................................................................ D-1E Authorities and Agreements............................................................................... E-1F Financial Support to Military Operations in a Multinational Environment.......... F-1G Contingency Contracting.................................................................................. G-1H Joint Operations Entitlements and Pay Matrix................................................... H-1

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J References.......................................................................................................... J-1K Administrative Instructions.............................................................................. K-1

GLOSSARY

Part I Abbreviations and Acronyms................................................................... GL-1Part II Terms and Definitions.............................................................................. GL-4

FIGURES

I-1 Financial Management Processes.................................................................... I-2I-2 Elements of the Resource Management Mission.............................................. I-3I-3 Objectives of Joint Financial Management...................................................... I-4I-4 Financial Management Principles.................................................................... I-5I-5 Flow of Missions and Resources Within the Department of Defense............... I-6I-6 Joint Task Force Comptroller Organization..................................................... I-8II-1 Determining an Operation’s Cost.................................................................... II-4II-2 Incremental Costs........................................................................................... II-5II-3 Reimbursable Organizations........................................................................... II-9III-1 Essential Elements of Finance Operations.................................................... III-1III-2 Additional Factors in Analyzing the Economic Impact of an Operation........ III-2III-3 Providing Pay Support................................................................................. III-4H-1 Joint Operations Entitlements and Pay Matrix............................................... H-1

EXECUTIVE SUMMARYCOMMANDER’S OVERVIEW

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Financial management (FM) support is important to the moraleand welfare of a deployed force, but is essential to the missionsupport of a joint operation. This publication provides asingle source financial management document forcommanders, staffs, logisticians, and resource management andfinancial personnel at the joint operational level. It describesthe role of financial management across the range of joint andmultinational operations and provides useful information toassist financial managers in the support of the overall mission.

The purpose of joint FM is to support mission accomplishmentby providing necessary FM capabilities. The comptroller isthe officer responsible for providing the elements of resourcemanagement (RM) and finance operations. The RM processof the joint force comptroller is normally comprised of costingfunctions, and the effort to leverage appropriate fund sources.Finance operations provide the necessary funds to conductcontracting and the full range of pay support needed by membersof the joint force.

Financial Management for Joint Operations

Discusses Financial Management for Joint Operations

Covers Resource Management and Finance Operations

Provides Objectives of Joint Financial Management

Discusses the Role of the Executive Agent

Covers Financial Advice and Recommendations

Discusses Contingency Operations and Sources of Funds

Resource Management and Finance Operations

Financial management(FM) support is essentialto the mission support of ajoint operation and is anissue that many parties injoint operations mustunderstand.

The comptroller’sresponsibilities includemaking resourcesavailable when needed andassisting the commanderin maintaining fiscalresponsibilities.

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The joint force comptroller management of these elementsprovides the joint force commander (JFC) with many necessarycapabilities, from contracting and banking support to costcapturing and fund control. Joint task forces may conductoperations in austere environments and, in many cases, at greatdistances from home station support. Requirements forcontracting, subsistence (to include fresh fruit and water),billeting, transportation, communications, labor, and a myriadof other supplies and services will be necessary for successfulmission support.

This publication establishes common objectives of jointfinancial management for all Department of Defense (DOD)components that form the joint force. These objectives enablethe joint force comptroller to provide a common unity of effortin the use of fiscal resources to support the JFC. Theseobjectives are:

• Ensure that mission essential funding is quicklyprovided in the most efficient manner;

Objectives of Joint Financial Management

There are four commonobjectives of joint FM thatprovide a unity of effort inusing fiscal resources.

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Executive Summary

• Reduce the impact of joint operations fundingrequirements on readiness;

• Prevent funding shortfalls from compromising missionsuccess; and

• Conduct detailed FM planning and coordinate efforts.

Appointment of an FM executive agent (EA) clarifies thefunding responsibilities and simplifies reimbursementduring contingency operations. The Secretary of Defensemay elect to designate an EA for the purpose of funding allor part of an operation. The EA is normally the Secretary of aMilitary Department. The FM EA will normally fund multi-Service contract costs, unique joint force operational costs,special programs, joint force headquarters operationalcosts, and any other designated support costs.

The joint force comptroller, in conjunction with the legaladvisor, provides to the JFC advice and recommendationson legal aspects of FM. The requirement for FM is derivedfrom fiscal law. One of the most important FM laws is theAntideficiency Act, codified in Chapters 13 and 15 of title 31,United States Code. This law contains prohibitions withrespect to the use of funds in excess of amounts availableand has punitive provisions for violations of these prohibitions.DOD policy requires that controls, accounting systems, andprocedures provide proper identification and records of costssupporting contingency operations.

Preventing funding shortfalls during contingency operationspresents unique challenges. In the past, supplemental fundingof contingency operations has been uncertain and untimely.Financial resources, therefore, are not always identified as beingspecifically available for these operations in the annual budgetrequests of DOD components. When financial resources havenot been programmed and made available in a budget request,components must accomplish directed contingency operationsusing military pay and operation and maintenance funds.

Role of the Executive Agent

Financial Advice and Recommendations

Contingency Operations and Sources of Funds

Whether funding multi-Service contract costs orspecial programs, theappointment of an FMexecutive agent will clarifyfunding responsibilitiesand simplifyreimbursement issuesduring contingencyoperations.

The joint forcecommander has the jointforce comptroller and thelegal advisor available onstaff to assist with allaspects of FM.

Occasionally, operationand maintenance fundsare used as supplementalfunding for contingencyoperations by the authorityof the Secretary ofDefense.

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These funds are used by the DOD components, independentof the receipt of specific funds for the operations. The authorityfor the components to expend available funds comes from theSecretary of Defense.

The joint force comptroller must perform two key functionsfor the commander: first, ensure that resources are availablewhen and where they are needed; second, aid the commanderin maintaining his or her fiscal responsibilities.

CONCLUSION

CHAPTER IFINANCIAL MANAGEMENT FOR JOINT OPERATIONS

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1. Introduction

a. The Services do not operate alone whenpart of a joint or multinational operation.Together, the Services contribute a full rangeof unique functions tailored to a specificmission. This is true not only when themilitary is the prime strategic option, as it isin war, but when other elements of nationalpower are the preferred option and the ArmedForces of the United States provide supportto other US Government (USG) agencies.Joint forces must be prepared to conductboth warfighting and other smaller scalecontingencies with a variety of US agencies,other nations, and international agencies.

b. Commanders must understand theimportance of integrating financialmanagement (FM) support with missionneeds in order to successfully execute

“Have money and a good army; they ensure the glory and safety of a prince.”

Frederick Wilhelm I of Prussia1724

operations. Every mission, to includepeacekeeping, noncombatant evacuations, andforeign humanitarian relief efforts, requiresaccomplishment with a variety of fundingsources and authorities. In addition, financialmanagers may provide fund control and USand foreign currency that are essential forexecuting the joint acquisition process.

2. Overview

This chapter delineates the purpose,objectives, and principles of FM for jointoperations as well as the role, mission,responsibilities, and organization of thesupported combatant commander comptrollerand the subordinate joint force commander(JFC) comptroller. By executing thetechniques and procedures outlined in thischapter, FM will more effectively support theJFC.

Financial management supports mission accomplishment by providingresource management and finance capabilities.

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3. Purpose of FinancialManagement

The purpose of FM is to support theaccomplishment of the mission by providingnecessary resource management (RM) andfinance capabilities. FM is composed of twocore processes: RM and finance operations(see Figure I-1). These two processes aredifferent, but mutually supporting. Theexecution of the RM mission includes thefollowing elements: providing advice andrecommendations to the commander;developing command resource requirements;identifying sources of funding; determiningcosts; acquiring funds; distributing andcontrolling funds; tracking costs andobligations; capturing costs; conductingreimbursement procedures; and establishinga management control process (see FigureI-2). The essential elements of financeoperations are: providing financial adviceand recommendations; supporting theprocurement process; providing pay support;and providing disbursing support. Byensuring that these elements of RM andfinance operations are provided, the joint forcecomptroller will accomplish the objectives ofjoint FM.

The essential elements of RM and financeoperations will be discussed in Chapter II,“Resource Management Operations,” andChapter III, “Finance Operations,”respectively.

4. Financial ManagementExecutive Agent

a. The Secretary of Defense (SecDef) mayelect to designate an executive agent (EA)for the purpose of funding all or part of anoperation. The EA is normally the Secretaryof a Military Department. The supportedcombatant commander will confirm, throughthe operation plan (OPLAN) and/or operationorder (OPORD), the designated financialmanagement EA for the joint operation.

b. The financial management EA willnormally fund multi-Service contract costs,unique joint force operational costs, specialprograms, JFC headquarters operational costs,and any other designated support costs.Department of Defense (DOD) componentswill fund their pre-deployment, deployment,operating tempo (OPTEMPO), sustainment,redeployment, reconstitution, and militarypersonnel costs. During the planning for an

Figure I-1. Financial Management Processes

FINANCIAL MANAGEMENT PROCESSES

Financial Management iscomposed of two different but

mutually supporting processes.

RESOURCEMANAGEMENT

RESOURCEMANAGEMENT

FINANCEOPERATIONS

FINANCEOPERATIONS

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operation the subordinate JFC, based oncombatant commander guidance, mustdesignate what the EA will be required tofund and what the components must fund.When required by the Department of Defense,separate cost accounts are established tocapture direct costs incurred in support ofother activities such as coalition forces andhumanitarian agencies.

5. Stewardship

Stewardship of resources is extremelyimportant. Available resources shall be usedin the most efficient means possible. Thestewardship tenet states that the Departmentof Defense is entrusted by the Americanpeople as steward of the vital resources (funds,people, materiel, land, facilities) provided todefend the nation.

6. Objectives of Joint FinancialManagement

The establishment of common FMobjectives assists in ensuring both unity ofeffort and the prudent use of resources insupport of the JFC. The FM objectives whichsupport JFC mission accomplishment areshown in Figure I-3 and include the following.

a. Ensure that mission-essential fundingis quickly provided in the most efficientmanner to ensure the operational success ofthe mission. This includes using the propersource and authority of funds, as well asreviewing applicable agreements.

b. Reduce the impact of joint operationsfunding requirements on readiness.Financial managers achieve this by seeking

Figure I-2. Elements of the Resource Management Mission

ELEMENTS OFTHE RESOURCEMANAGEMENT MISSION

Provide financial advice and recommendations to thecommander

Develop command resource requirements

Identify sources of funding

Determine costs

Acquire funds

Distribute and control funds

Track costs and obligations

Costing and reimbursement procedures

Establish a management control process

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alternative funding sources and ensuring thatcost estimates are provided to assist in thetimely reimbursement of Service componentappropriated expenses.

c. Prevent funding shortfalls fromcompromising mission success. Fiscal yearintegrity and possible antideficiencyviolations become a major concern,particularly when substantial contingenciesoccur in the third or fourth quarter. Basic fiscalcontrols on appropriated funds requireobligations to occur within the time limitsapplicable to the appropriation (e.g., operationand maintenance [O&M] funds are availablefor one fiscal year) and to be within theamounts author ized, otherwise anantideficiency violation may occur.

d. Conduct detailed FM planning andcoordinate efforts to provide and sustainresources in support of the logistics effort sothe JFC may best accomplish the mission.

7. Principles of Joint FinancialManagement

a. To effectively support jointoperations, FM must be responsive and

capable of meeting the JFC resourcerequirements. The following FM principlesare based on sound concepts and operatingexperience. Their use as guidelines willcontribute to development of an appropriateand successful FM concept of support (seeFigure I-4).

b. FM Principles

• Integrate the funding responsibility ofthe DOD components and the operationalrequirements of the combatantcommanders. As portrayed in Figure I-5,the combatant commander may chooseto conduct operations throughsubordinate joint force commanders(subunified and joint task force [JTF]commanders), Service componentcommanders, or functional componentcommanders. However, funding for themissions in support of the JFC flowsthrough either a Military Department,US Special Operations Command(USSOCOM), or a Defense agency.Financial managers must understand theserelationships and be able to integratethose un ique FM responsibilitiesassociated with joint operations.

Figure I-3. Objectives of Joint Financial Management

OBJECTIVES OF JOINT FINANCIAL MANAGEMENT

Ensure that mission-essential funding is quickly provided in themost efficient manner

Reduce the impact of joint operations funding requirements onreadiness

Prevent funding shortfalls from compromising mission success

Conduct detailed financial management planning and coordinateefforts

Ensure that mission-essential funding is quickly provided in themost efficient manner

Reduce the impact of joint operations funding requirements onreadiness

Prevent funding shortfalls from compromising mission success

Conduct detailed financial management planning and coordinateefforts

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• Provide consistent FM guidance insupport of joint operations. This includesbeing involved in the staff estimateprocess, development of the FMappendix and, when necessary,conducting an economic analysis of thejoint operations area (JOA).

• Ensure consistency of financial servicesupport. The Department of Defense andthe military Services financial managerswill coordinate to ensure that consistentfinancial services are provided to allpersonnel assigned to the JFC. Thisincludes making appropriate provisionsfor military pay and services, paymentof travel entitlements, and cashoperations to support Service memberrequirements.

• Ensure the most efficient use of allavailable resources. At some level andto some degree, resources are alwayslimited. When prioritizing and allocatingresources, the commander mustcontinuously consider economy, butnot to the detriment of missionaccomplishment.

8. Roles and Missions of theSupported CombatantCommander Comptroller andJoint Task Force Comptroller

a. Combatant commanders’ headquartersare organized differently. In some cases, acomptroller is a principal staff officer. In otherinstances, they are collocated with theLogistics Directorate of a joint staff (J-4) orconstitute a special staff section under theChief of Staff or Deputy Commander in Chief(CINC). The goal, however, is to provide asingle staff element to oversee all FMrequirements for the combatantcommander and to act as a liaison to anysubordinate JFCs.

b. As outlined in JP 5-00.2, “Joint TaskForce Planning Guidance and Procedures,”the JTF comptroller can be either a principalstaff officer or on the special staff of a jointforce responsible for FM support. In mostcases, the commander, joint task force (CJTF)will designate the JTF comptroller as aprincipal staff officer. However, based on thetype and duration of the mission and specificsupport requirements, the JTF comptroller

Figure I-4. Financial Management Principles

FINANCIAL MANAGEMENT PRINCIPLES

Integrate the funding responsibility of the DOD Components andthe operational requirements of the combatant commanders

Provide consistent financial management guidance in support ofjoint operations

Ensure consistency of financial service support

Ensure the most efficient use of all available resources

Integrate the funding responsibility of the DOD Components andthe operational requirements of the combatant commanders

Provide consistent financial management guidance in support ofjoint operations

Ensure consistency of financial service support

Ensure the most efficient use of all available resources

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may have a more limited role and act inthe capacity as a special staff officer. Inany case, the JTF comptroller, along withthe supported combatant commander’scomptroller, must be involved early in theplanning process to clearly define theresponsibilities for FM. Although the

component commands have the primaryresponsibility for providing resources to aparticular mission, the JTF comptroller isresponsible for integrating the efforts of RMand finance policy planning and executionamong all components participating in a jointoperation. The CJTF may designate a

Figure I-5. Flow of Missions and Resources Within the Department of Defense

FLOW OF MISSIONS AND RESOURCES WITHINTHE DEPARTMENT OF DEFENSE

MISSION versus RESOURCESMISSION versus RESOURCES

MISSION FLOW RESOURCE FLOW

CombatantCommander

Military DepartmentsUSSOCOM

Defense Agencies

National CommandAuthorities

Congress

State

Chairmanof theJoint

Chiefs ofStaff

Office of theSecretary of

Defense

ServiceComponents

DODComponents

Linkage/CoordinationLinkage/Coordination

SubordinateJoint Forces

FunctionalComponents

USSOCOM United States Special Operations Command

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component commander’s comptroller orfinance staff officer to have the dual missionof supporting its component and, if furtherdirected by the CJTF, as the JTF comptroller.

9. Supported CombatantCommander’s ComptrollerResponsibilities

The supported combatant commander’scomptroller is responsible for the following.

a. Serve as principal advisor to thesupported combatant commander on matterspertaining to FM.

b. Coordinate with the Joint Staff,supporting combatant commander’scomptroller, and supporting governmentagencies to ensure timely receipt of FMinstructions and authorities.

c. Provide funding guidance and, whennecessary, coordinate with the Joint Staff andthe Secretary of Defense for designation ofan EA.

d. Prepare the FM appendix to OPLANsand OPORDs issued by the supportedcombatant commander.

e. Transfer responsibilities to the JTFcomptroller as soon as possible after activationof the JTF and identification of the JTFcomptroller. This includes updating the JTFcomptroller on the status of funding actions,financial support, and other mission-uniquerequirements.

f. Coordinate with the supported andsupporting governmental agencies andpromulgate appropriate reimbursementprocedures.

10. JTF ComptrollerResponsibilities

The JTF comptroller is responsible for thefollowing.

a. Serve as principal FM advisor to theCJTF and as the focal point for CJTF financialmanagement matters.

b. Prepare the FM appendix to the JFCOPLANs and OPORDs.

c. Establish JOA financial managementresponsibilities. Based on the mission andgeographic locations of components, the JTFcomptroller may coordinate the designationof an EA for specific FM functions or specialsupport requirements.

d. Review estimated and actual costs of theoperation when available.

e. Establish management controls toensure the efficient use of resources.

f. Coordinate entitlement policy with theJTF Manpower and Personnel Directorate(J-1) on pay and allowances for the JTFpersonnel to include a recommendation to theJFC on the per diem status for JTF personnel.

g. Coordinate with JTF J-4 on logisticsand contracting requirements to ensure thatthey complement the FM responsibilities.Participate in the JTF J-4 planning groups andboards as required. Develop a system withthe JTF J-4 for prevention of fraud, waste,and abuse.

h. Coordinate with other staff membersconcerning their FM requirements, andprovide them guidance on meeting their FMresponsibilities.

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i. Determine sources of funding andobligation authority . Review any applicableagreements that require FM support.

j. When directed, account for the cost ofallied or other support.

k. Coordinate with contracting officials toverify funding availability for localcontracting needs and determine contractpayment requirements.

l. Coordinate with the finance unit(s)supporting the JFC to ensure early deploymentof finance personnel into the JOA. Thepurpose is to meet the immediate contractingrequirements of the deploying force that arenot readily available from USG sources.

m. Coordinate, when necessary, thedesignation of a limited depository account(LDA) with the Department of State (DOS).

11. Organization andFunctions of a JTFComptroller

Figure I-6 depicts a typical JTF comptrollerorganization. The actual composition willbe dictated by the overall organization ofthe joint force and type of operations.

The following are specific functions of theJTF comptroller organization.

a. The RM Policy Section

• Participates in the staff estimate processand develops the FM appendix to theCJTF OPLAN or OPORD.

• Obtains and interprets economic analysisinformation.

b. The RM Budget Section

Figure I-6. Joint Task Force Comptroller Organization

JOINTTASK FORCECOMPTROLLER ORGANIZATION

Financial Management

Policy

Budget

Resource Management

Policy

Funding

Finance

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• Identifies sources of funding.

See Appendix E, “Authorities andAgreements.”

• Utilizes funding authority and determinescosts, acquires funds, distributes andcontrols funds, tracks costs andobligations, and captures cost.

• Establishes a management controlprocess.

c. The Finance Policy Section

• Coordinates pay entitlement policy withJTF J-1.

• Coordinates and establishes JOA fundsecurity policy, disbursing policy, andguidance.

• Coordinates local procurement supportwith the JTF J-4, joint contracting cell,and other staff principals having resourceallocation responsibilities.

• Obtains and interprets economic analysisinformation.

d. The finance funding sectioncoordinates host nation (HN) banking supportand supports the procurement process withneeded currency.

e. Liaison officers from the componentsand representatives from the Defense Financeand Accounting Service (DFAS) willparticipate as needed on the staff of the JTF

comptroller to effectively accomplish itsmission.

See Appendix A, “Financial ManagementResponsibilities Within the Department ofDefense,” for further information.

12. Component FMResponsibilities

The component FM is responsible for thefollowing.

a. Allocate funds and monitor execution.

b. Prepare cost estimates and submitbudget justifications.

c. Provide monthly incremental costreports to the DFAS.

d. Provide billing documents to DFAS inthose instances where reimbursement isrequested.

13. DOD FM Responsibilities

Joint operations involve a vast web ofcomptroller and RM agencies. Thisincludes both those FM personnel in the JOAand those supporting the operations as far backas the sustaining base located in the UnitedStates.

Appendix A, “Financial ManagementResponsibilities Within the Department ofDefense,” identifies the key DOD participantsand their responsibilities for the successfulplanning and execution of FM operations.

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CHAPTER IIRESOURCE MANAGEMENT OPERATIONS

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1. Overview

a. The RM mission is to analyze thecommander’s tasks and priorities to ensurethat proper financial resources areavailable to best accomplish the mission.RM operations will be performed early andinvolve a majority of the planning effort forthe resource managers. Because jointoperations vary greatly in the type of mission,size, intensity, and duration, RM operationsmust be flexible to support changingrequirements. For certain funding authorityand component resource managers for Serviceappropriations, the JTF comptroller may berequired to identify, allocate, distribute,control, and report fund execution. However,the majority of the RM operation will occurat the component command level. As thesenior resource manager, the JTF comptrolleralso advises the commander on the bestallocation of resources during the staffestimate process. Depending on missioncomplexity and duration, JTF comptrollerRM duties may include directing orcoordinating financial analysis of operations;ensuring the effective and efficient use offunding resources during support operations;and developing and maintaining closecoordination with the JTF J-4, contractingpersonnel, legal, and DFAS.

b. RM functions will be performed duringall operations. During high intensity conflicts,however, some RM functions may betemporarily suspended. Upon resumingnormal operations, resource managers mustmake every effort to capture and report

“Now the whole art of war is in a manner reduced to money; and nowadaysthat prince who can best find money to feed, clothe, and pay his army, nothe that hath the most valiant troops, is surest to success and conquest.”

Charles DavenantEssay on W ays and Means of Supplying the W ar, 1695

costs incurred during these periods of highintensity.

A JTF comptroller checklist is furnished inAppendix B, “JTF Comptroller Checklist,”that provides, by phase of a militaryoperation, recommended RM planning andexecution considerations.

2. Essential Elements ofResource Management

Though each contingency operation has aunique set of parameters associated with itsexecution, all operations involve essentialelements of RM: providing financial adviceand recommendations to the commander,developing command resource requirements,identifying sources of funding, determiningcosts, acquiring funds, distributing andcontrolling funds, tracking costs andobligations, capturing costs, conductingreimbursement procedures, and establishinga management control process.

a. Provide Financial Advice andRecommendations to the Commander.Once approved by the National CommandAuthorities (NCA), the supported combatantcommander will issue notification thatincludes appropriate fiscal and logisticsguidance to component commanders. TheJTF comptroller advises the commanderconcerning the effective use of availableresources. Financial managers activelyparticipate in joint planning groups and thejoint planning process. Early and activeparticipation in the deliberate and crisis

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action planning processes assists insuccessful integration of all FM efforts. TheJTF comptroller will also advise thecommander on the responsibilities of an EA.

b. Develop Command ResourceRequirements

• Budget estimates, operating budgets, andfinancial plans do not include funds, norin most cases have funds been reservedfor costs incurred in support of unplannedcontingency operations. Funding for anoperation will be drawn from currentappropriations and authority , unlessprovided by a reimbursable agreementwith another government or internationalorganization. Thus, it is necessary foreach commander to absorb these costsinitially from within existing funds. Thecomponent command resource managershave the responsibility for ensuring thatthe capability exists within the JOA forfunding all participation costs, separatingand collecting the incremental and totalcosts, and reporting these costs to DFAS.To assist in reprogramming andsupplemental funds requests, componentcommand resource managers must

accumulate all costs and promptly submitbills to DFAS.

• When developing command resourcerequirements, existing agreements mustbe reviewed by the appropriate staffsection. Based on this review, thecomponent resource managers willensure adherence to proper billing andreimbursement procedures. It isimportant that the command resourcerequirements adequately reflect theconcept of logistic support. Resourcerequirements include, but are not limitedto, contracting, transportation,multinational support, support to otheragencies and international organizations,foreign humanitarian assistance, andforce sustainment.

• Host-nation support (HNS) can be asignificant force multiplier. Wheneverpossible, available and suitable HNSshould be considered as an alternativeto deploying logistic support from theUnited States. HNS agreements shouldinclude the authority for the JFC tocoordinate directly with the HN forsupport, acquisition, and use of facilities

Command resource requirements must adequately reflect theconcept of logistic support.

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Resource Management Operations

and real estate. The legal advisor mustbe involved in determining specificsupport requirements contained in HNSagreements. Authority for negotiationsmust be obtained through the supportedcombatant commander, Joint Staff,Department of Defense, and the DOS.

• Once a course of action (COA) isselected, the JTF comptroller developsthe FM appendix to the OPLAN orOPORD that provides RM policy andguidance. This appendix must alsoinclude which component is funding anyunique aspects of the operation. The FMappendix should adequately reflectsupport of logistics requirements.

Refer to Appendix C, “Guide to OPLANDevelopment,” for guidance in thepreparation of the OPLAN or OPORDFM appendix.

c. Identify Sources of Funding

• Funding the operation can present achallenge because of diverse fiscalrequirements, sources, and authorities offunds. Multiple funding sources (e.g.,the Department of Defense, DOS, UnitedNations [UN]) may have to be used inorder to accommodate the constraintsimposed by fiscal law. The JTFcomptroller should work closely with thelegal advisor when making thesedeterminations.

See Appendix D, “Legal.”

• Resource managers must also be awareof extraordinary measures, includingemergency funding authorities such asthe Feed and Forage Act, which may beused to incur obligations in excess of, orin advance of, available appropriations.A thorough understanding of sources andauthorities can provide resourcemanagers with a means of remaining

within the limits of the law and a methodto develop alternative funding options tobest accomplish the mission. To theextent that a specific funding source hasnot been identified for a joint operation,components should pursue additionalfunding authority, reprogramming,and supplemental appropriationrequests to minimize the effect on thereadiness of their component.

See Appendix D, “Legal,” for furtherinformation. Appendix E, “Authoritiesand Agreements,” contains a completediscussion of potential authorities andagreements.

d. Determine Costs

• For emergent operations, preliminarycost estimates are developed beforeor early in the deployment of militaryforces by the Under Secretary of Defense(Comptroller) (USD[C]), workingin consonance with the Joint Staff,the Services, USSOCOM, and otheragencies, as appropr iate. DODrequests for supplemental funds orreprogramming are based on detailedbudget estimates developed by theServices, USSOCOM, and otheragencies. As needed, resource managersshould apply the policies contained inDepartment of Defense FinancialManagement Regulation (DODFMR)Volume II that cover estimating costs ofadditional personnel plus mutual logisticsupport with other countries and NorthAtlantic Treaty Organization (NATO)components.

• Preparing the estimates involves makingassumptions about a variety of factorssuch as the operation’s duration, logisticsupport, force size, environmentalconditions, transportation, and specialpay and allowances. Generally, allfactors of mission, enemy, terrain,

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troops, and available time must beconsidered in developing assumptionsand cost estimates. Costs are estimatedusing standard cost factors developedfrom historical costs, and judgmentwhere there are no standard cost factors.This process requires input from variousstaff sections.

• Figure II-1 depicts the formula fordetermining an operation’s cost. Serviceswill utilize the contingency cost report

format issued by USD(C) to provideDFAS and the Department of Defensewith an operation’s total incremental cost.

• When developing an estimate, misuse ofterminology (e.g., confusing incrementaland offset costs) can lead to an inaccuratecost estimate. An understanding andconsistent use of these terms areessential when determining costs. Thefollowing are approved definitions of theterms in question.

Preparing cost estimates involves making assumptions about a variety of factors,including the operation’s duration, logistic support, force size, and transportation.

Figure II-1. Determining an Operation’s Cost

DETERMINING AN OPERATION'S COST

TotalCostsTotalCosts

BaselineCosts

BaselineCosts

OffsetCostsOffsetCosts

IncrementalCosts

IncrementalCosts

An operation's cost is calculated as follows:

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•• Baseline Costs. Baseline costs are thecontinuing annual costs of militaryoperations funded by O&M and militarypersonnel appropriations. Essentially,baseline costs are programmed andbudgeted costs that would be incurredwhether or not a contingency operationtook place (e.g., scheduled flying hours,steaming days, training days, exercises).

•• Offset Costs. In some instances,costs for which funds have beenappropriated may not be incurred asa result of a contingency operation andthose funds may then be applied to thecost of the operation. Examples include

basic allowance for subsistence not paid,training not conducted, and baseoperations support not provided.Reported incremental costs should bereduced by the amount of these costoffsets.

•• Incremental Costs. Incrementalcosts are additional costs to theappropriations and are only incurredupon execution of a contingencyoperation (see Figure II-2). TheDepartment of Defense reports theincremental costs of its participation incontingency operations. The followingare examples of incremental costs. (1)

INCREMENTAL COSTS

Military entitlements Transportation costs

Cost of rents, communications, andutilities

Cost of materiel, equipment, andsupplies

Costs incurred which are paidfrom reimbursable funds

Replacement costs ofattrition losses

Allowance amount increases

Travel and per diem costs

Equipment overhaul andmaintenance costs

Service-specific costs requireindividual determinations

Mobilization costs ofReserve Components

Overtime, travel, hazardous dutypay, and per diem of permanent

DOD civilian personnel

Wages, travel, hazardous duty pay,and per diem of temporary DOD

civilian personnel

Cost of work, services, andtraining

Incremental costs are additional costs to the appropriations and areonly incurred upon execution of a contingency operation.

Incremental costs are additional costs to the appropriations and areonly incurred upon execution of a contingency operation.

Figure II-2. Incremental Costs

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Military entitlements such as imminentdanger pay, family separationallowance, or other payments madeover and above the normal monthlypayroll costs. (2) Increases in the amountof allowances due to changes in thegeographic assignment area due to anoperation (i.e., basic allowance forsubsistence). (3) Travel and per diemcosts of active duty military personnel.(4) Mobilization costs of ReserveComponents called to active duty by afederal official and assigned solely tosupport the operation. (5) Overtime,travel, and per diem of permanent DODcivilian personnel in support of anoperation. (6) Wages, travel, and perdiem of temporary DOD civilianpersonnel hired or assigned solely toperform services supporting theoperation. (7) Transportation costs ofmoving personnel, materiel, equipment,and supplies to the operation or stagingarea, including port handling charges;packing, crating, and handling(P,C,&H); first and second destinationcharges; and other related areas. Theexception is when the CINC, USTransportation Command receives anNCA order requiring transportation of

non-US owned equipment and/or non-US personnel. In these instances, theArmy will pay Military TrafficManagement Command costs, the Navywill pay Military Sealift Command costs,and the Air Force will pay Air MobilityCommand costs. (8) Cost of rents,communications, and utilities attributableto the operation. Telephone service, andcomputer and satellite time are examples.(9) Cost of work, services, training, andmateriel procured under contract for thespecific purpose of providing assistancein an operation. (10) Cost of materiel,equipment, and supplies from regularstocks used in providing directedassistance. Materiel, equipment, andsupplies from stock will be priced at thestandard prices used for issue to DODactivities. Included in this category willbe consumables such as field rations,medical supplies, office supplies,chemicals, petroleum, and itemsordinarily consumed or expendedwithin 1 year after they are put into use.Materiel, equipment, and suppliesdetermined to be excess to theDepartment of Defense may be madeavailable for transfer under excessproperty disposal authority, without

Incremental costs include cost of work and services procured undercontract for providing assistance in an operation.

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reimbursement. However, in theseinstances, charges for P,C,&H andtransportation will be added to theincremental cost. (11) Costs incurredwhich are paid from the working capitalof trust, revolving, or other funds, whosereimbursement is required. (12)Replacement costs of attrition lossesdirectly attributable to support of theoperation. (13) The portion of equipmentoverhaul and maintenance costs that,when computed on a fractional use basis,reflect an additive cost attributable to theoperation. (14) Component-specificcosts for increased OPTEMPO, such assteaming costs for the Navy.

e. Acquire Funds. Once potential sourcesand authority of funds are determined, thecomponent resource managers will requestuse of various funding authorities. In manycases, contingency operations require suppliesand services not available to the JFC throughthe normal funding process. One example isfunding for transportation required in supportof humanitarian relief operations. In suchcases, component resource managers will seekseparate obligation authority through theappropriate channel.

NOTE: Assistance under this section iscommonly referred to as the Denton Programand is jointly administered by the US Agencyfor International Development (USAID),DOS, and Department of Defense. TheDefense Security Cooperation Agency(DSCA) manages the program and the funds.Requests should be forwarded by thesupported combatant commander to the JointStaff for approval by DSCA.

f. Distribute and Control Funds.Normally the distribution and control of fundsremains with the Services. Procedures willadhere to US laws, regulations, and applicablepolicies even when RM functions may betemporarily suspended due to high intensity

conflict. Effective and efficient fundcontrol and certification is critical in theconduct of FM operations.

g. Track Costs and Obligations. Uponnotification of an impending jointoperation, each participating DODcomponent will develop special programcodes for cost capture and reportingpurposes. These relate to the three digitChairman of the Joint Chiefs of Staffproject code published by the Joint Stafffor contingency operations.

h. Cost Capture Procedures

• Resource managers will establishreporting procedures for units to reporttheir estimated and/or actual commitments,obligations, reimbursable costs, andestimated future costs. Reportingprocedures should be simple and flexibleenough to ensure accurate reporting underany circumstances. Each componentresource manager must comply with thereporting requirements issued by theDepartment of Defense for these operations.The component must be able to accountfor and receive reimbursement for thecosts of supporting contingencyoperations by meeting three conditions.First , follow consistent and approvedprocedures in determining and calculatingbaseline and incremental costs recorded inaccounting records. Second, use specialinterest and/or program accounting codes,object class codes, and customer codes asapplicable to trace costs. Third , useautomated accounting systems thatinterface with a designated DFAS centralbilling system or provide a means togenerate a manual bill. Cost reports areconsolidated monthly and submittedthrough appropriate command channels toDFAS. Resource managers will capturecosts using existing finance and accountingsystems and procedures.

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• Contingency cost reports areimportant for monitoring theadequacy of funding for suchoperations as well as for a variety ofother purposes. They assist theDepartment of Defense in monitoring theresources necessary to supportcontingency operations and helpdetermine the impact on readiness whendrawing from previously appropriatedO&M funds to cover contingency costs.The reports also help the Department ofDefense develop requests forsupplemental appropriations andreprogramming of funds and inresponding to Congressional and publicinterest inquiries about the incrementalcost of contingency operations. Inaddition, the cost reports facilitateCongressional oversight of theexpenditure of appropriated funds andtheir assessment of the financial impactof contingency operations on DODspending plans.

i. Reimbursement Procedures

• Reimbursable costs may occur fromproviding support to organizations suchas the UN, NATO, HNs, foreign nations,nongovernmental organizations (NGOs),private voluntary organizations (PVOs),or other federal agencies. Provisions ofsaid support must be authorized bylaw. Throughout operations, carefulconsideration must be given to funding,monitoring expenditure authority (seeDODFMR, Volume 15, Section 406),maintaining accountability, trackingcosts, and tracking support received fromor provided to the HN, UN, other foreignnations, or other designated agencies.This is necessary to determine thedetailed costs of an operation and tosupport the process of billing forreimbursement at all levels. Congressrequires detailed reports on the projectedand actual costs of operations. Accurate,

detailed cost reports are needed todetermine how costs should beapportioned and billed. Financialmanagers will capture these costs andprovide the required reports and detailedbillings (see Figure II-3).

• When support agreements are establishedby the JFC, the JTF comptroller shouldensure that it is clearly understood whatassistance can be rendered to requestingunits and agencies. If a current agreementexists, the JTF comptroller will, withlegal assistance, review the agreement forproper procedures and support. If anagreement does not exist, the JTFcomptroller will coordinate with the JTFJ-4 and legal for required support.

Some of the types of authorities andagreements that may be in place arelisted in Appendix E, “Authorities andAgreements.”

• Only billable costs are submitted todesignated agencies, internationalorganizations, or foreign governments inaccordance with the provisions of theForeign Assistance Act (FAA), other USlaws, and the requirements of theorganization being billed. Billinginformation provided by componentswill include documentation as requiredby applicable agreements. The JTFcomptroller may provide specificguidance for those costs incurred that arereimbursable by another USG agency,foreign government, or private andinternational organizations. Given thelegal restrictions on the use of reimbursedexpenses and to ensure timelyrecoupment of reimbursable costs to thecomponents, each DOD componentmust closely follow contingencyoperations billing procedures.

See Appendix F, “Financial Support toMilitary Operations in a Multinational

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Environment,” for a detailed discussionof financial support to militaryoperations in a multinationalenvironment.

The following are approved definitions.

•• Noncombatant EvacuationOperation (NEO). Reimbursementp r o c e d u r e s f o r N E O w i l l b eaccomplished in accordance withmemorandum of agreement (MOA)between DOS and the Department ofDefense. Contact USD(C) or Servicecomptrollers for provisions of existingMOAs.

•• UN Reimbursement Procedures.For UN operations, reimbursements fall

into one of four categories: UNdetermined costs, invoiced costs, lettersof assist (LOAs), and leases. (1) UNDetermined Costs. Reimbursement forthese costs is accomplished at the DODlevel. Components should ensure thataccurate personnel figures are reportedto the UN headquarters in-theater andincluded on monthly cost reportssubmitted to DFAS. These personnelcounts form the basis for reimbursementcalculations. (2) Invoiced Costs.Request for reimbursement for invoicedcosts will be prepared by the resourcemanager, based upon cost reports. Theresource manager should ensure thatauditable documentation is availableto validate and substantiate amountsreported on the cost reports. In most

Figure II-3. Reimbursable Organizations

UnitedNations

NorthAtlantic TreatyOrganization

Reimbursable costs may occurfrom providing support to

organizations, foreign nations,or other federal agencies.

Accurate, detailed cost reports areneeded to determine how costs

should be apportioned and billed.

HostNations

REIMBURSABLE ORGANIZATIONS

ForeignNations

NongovernmentalOrganizationsand/or Private

VoluntaryOrganizations

OtherFederal

Agencies

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cases, only the incremental amount isbillable to the UN (for additionalinformation, refer to DODFMR Volume12, Chapter 23, “ContingencyOperations”). (3) Letter of Assist Costs.Reimbursement for LOA costs isaccomplished using a voucher fortransfer Standard Form (SF) 1080.Resource managers should prepare an SF1080 voucher for the cost of the goodsor services provided and reference theLOA number. All LOAs must beforwarded to the DSCA for execution andbilling procedures. Forward the voucher,with sufficient detailed documentationand the appropriate UN receipt records,through channels to the UN. A UNofficial authorized to commit fundsshould validate the voucher before it issent through US financial channels forreimbursement. This validation willexpedite the processing of the bill at UNHeadquarters in New York. Timely andaccurate voucher submission isessential to ensure the most efficientrepayment of funds. The SF 1080 isforwarded to DFAS-Denver (DFAS-DE)with supporting documentation and acertified contingency operations cost

report to support the bill. All vouchersmust provide adequate documentationfor accountability and certification.DFAS-DE will verify the LOA numberand item for which a voucher is beingsubmitted, summarize in a separateattachment, and forward the voucher tothe US Mission to the UN fortransmission to the UN. The UN willnot accept a bill that exceeds the UNLOA ceiling. The JTF comptroller mustnotify DSCA if the billable costs willexceed the UN LOA. DSCA will thennegotiate an LOA amendment or revisionwith the UN to allow for additional costs.(4) Leases. Leases of major end items,and the associated foreign militarysales (FMS) support cases, will bemanaged by the DSCA. Developmentof leases for DOD equipment will follownormal procedures in DOD Directive5105.38M, “Security AssistanceManagement Manual,” Chapter 12,which are governed by the Arms ExportControl Act.

•• NATO Reimbursement Procedures.(1) Support Arrangements withNATO. The NATO theater headquarters

Accurate personnel counts are required to ensure properreimbursement calculations.

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(HQ) will sometimes require specializedlogistic support from one or more ofthe contributing nations. Such support,when included in the mission statementof requirements, is generally requestedas a mission contribution on anonreimbursable basis (e.g., provision ofmedical capabilities). In other instances,the NATO HQ may request consumablesupplies or other support (e.g., fuel) on areimbursable basis. Submit the SF 1080to DFAS with sufficient detaileddocumentation and a certifiedcontingency operations cost report tosupport the request for reimbursement.During out-of-area operat ions,reimbursable arrangements with NATOare usually executed in one of thefollowing forms. (a) Requests for Case-by-Case Reimbursable Support. Suchrequests (e.g., military equipment suchas vehicles) must originate with NATOand should include an advancecommitment by the NATO TheaterFinancial Controller that reimbursementwill be provided. Such costs should beinvoiced to the NATO theater HQ to bereimbursed by the NATO TheaterFinancial Controller. (b) NATOAcquisition Cross-Service Agreement

(ACSA). Bilateral ACSAs exist withmany allied nations and the NATOMaintenance and Supply Organization,enabling operational commanders toarrange mutual support under paymentin cash (PIC), replacement in kind(RIK), or equal value exchange(EVE) procedures. (2) SupportArrangements with Allied Nations.NATO doctrine establishes that logisticsupport is a national responsibility;however, efficiencies should be soughtwherever possible. Other allied nations’forces may require logistic support,which may be provided in a number ofdifferent ways. During peacetime, thisis generally accomplished through theFMS program. During Article V (withinNATO territories) or non-Article V(outside of NATO territory) operations,such support may be provided under thefollowing arrangements: (a) RoleSpecialization Arrangements. Prior toan operation, the nations providing forcesmay mutually agree to a division ofresponsibility in the theater. Such anarrangement, for example, could resultin one nation establishing a field medicalfacility, with another nation providing anairlift capability. Ideally, the tasks

NATO theater headquarters will sometimes require specialized logisticsupport from one or more of the contributing nations.

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should be divided such that mutualbenefit and equity are apparent andsupported by law. This is an extremelyvaluable tool, since it provides aframework for exchange of availableitems to support time-sensitive missionrequirements. (b) StandardizationAgreements (STANAGs). NATOnations have made commitmentst o pursue standard izat ion andinteroperability in a number of areas.One means of achieving this is throughadaptation of common technicalstandards and procedures, documentedin STANAGs. A body of suchstandardization documents exists,covering functions ranging fromcommunications procedures to refuelingother nations’ aircraft. Many suchagreements also include standardreimbursement procedures. (c) DirectReimbursement. In the absence of othersuitable arrangements, nations maynegotiate for support subject toreimbursement procedures of the nationproviding the required supplies orservices.

•• HNS Reimbursement Procedures.Once the HNS agreement is established,the JTF J-4 provides a detailed statementof requirements to the HN and begins thenegotiations for logistic support. The useof O&M funds are authorized to supportHN requirements. Specific proceduresfor cost capturing and billing must benegotiated with the HN. This willprevent locally negotiated agreementsthat may not be legal or authorized.Submit the SF 1080 to DFAS withsufficient detailed documentation and acertified contingency operations costreport to support the request forreimbursement.

•• Foreign Nation Support (FNS)Reimbursement Procedures. (1) FNSis support provided to foreign forces

from countries other than the countryin which the contingency operation isoccurring. This support is generallyprovided under one of threecircumstances. First , support can beprovided under the existing rules of aparent organization that is controlling theoperation (e.g., NATO, UN). Billingprocedures under these circumstancesshould follow standing agreements forsupport.

See Appendix E, “Authorities andAgreements,” for a detailed discussionon several of the legal authorities forreimbursement such as the ACSA,Sections 607 and 632 of the FAA, andthe Economy Act.

Second, support may be provided if theUnited States and the supported countryhave a bilateral agreement in place priorto the operation. The United States hasmany of these cooperative agreementswith allies. The resource manager mustconsult with the legal advisor for a copyof any existing bilateral agreements andfollow the procedures outlined in theagreement for reimbursement. Third ,support can be provided based upon anagreement that is negotiated expressly forthe operation. Any negotiated agreementfor support should include billing andreimbursement instructions. (2) Billsprepared for support during a UN orNATO operation should followprocedures established by thoseorganizations. Bills prepared for eitherstanding or negotiated bilateral supportagreements should be processed as setout in the agreement. The resourcemanager must send these bills as requiredthrough Service funding channels.

•• Assistance in Kind (AIK). AIKoperations, dealing directly with thegovernments of these eligible countries,provide material and services for a

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NGO and PVO expectations for military support, including supplies, services,and assistance, must be reviewed with the organizations and agreements forpossible reimbursement by the NGOs and PVOs secured.

logistic exchange of materials andservices of equal value. These items areaccountable as future reimbursements tothe country that initially provides themon a gratis basis. Costs for these itemshave a current value that is captured asfuture reimbursements. The JTFcomptroller will develop and implementprocedures, in coordination with logisticselements, to track the value of supportprovided in order to ensure an equalexchange of valued materials andservices throughout the operation.Particular care must be taken inaccounting for these authorizedexchanges due to the political sensitivityinherent in multinational operations.Ideally, these in kind reimbursementsshould derive no monetary gain andshould provide mutual benefit and equitybetween the participating countries.

•• NGO and PVO ReimbursementProcedures. NGOs and PVOs do notoperate within the military orgovernmental hierarchy. However,because NGOs and PVOs operate inremote areas of high risk, they may needthe logistic, communication, and securitysupport that military forces can

provide. Expectations of militarysupport (including supplies, services, andassistance) must be reviewed with theorganizations. Consult with a legaladvisor to determine authority to providesupport on a reimbursable or non-reimbursable basis. Each organizationnormally has some type of financialcontrol officer. Military activities shouldonly provide support after they receiveapproval. Resource managers shouldensure that all supply activities,especially fuel, maintain a status of whatis provided; submit bills to supportedorganizations as required; and, if theorganization is not authorized to makepayment locally, forward thedocumentation (signed by bothorganizations) through Service fundingchannels.

•• Non-DOD Governmental AgenciesReimbursement Procedures. Congressprovides the Department of Defense withfunds for very specific needs. Therefore,support directly to other governmentalagencies can be complex. Whenpresented with a request for support by agovernmental agency, resource managersshould consult with the legal advisor. An

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MOA or letter requesting supportshould form the basis for anyreimbursable relationship with non-DOD governmental agencies. Thisagreement can be used to ensure that onlyauthorized support is provided andsupply and service activities capture thecost of support. Bills should be compiledas required, using a manual SF 1080 bill,through the supported agency. The SF1080 must have a copy of the agreementwith attached substantiating documents.

j. Establish a Management ControlProcess. The JTF comptroller shouldcoordinate internal controls throughout theJOA that will provide reasonableassurance that obligations and costscomply with applicable laws; funds andother assets are protected; and properaccounting is kept of all expenditures. Thismanagement control process should beestablished as soon as possible, but not atthe expense of operational or tacticalconsiderations.

CHAPTER IIIFINANCE OPERATIONS

III-1

1. Overview

The finance mission during joint operationsensures banking and currency supportneeded to pay the US military, other USagencies and, if required, non-US personnel.The mission also involves financial analysisand recommendations to help the joint forcemake the most efficient use of its fiscalresources. Effective finance support acrossthe range of military operations is a combatmultiplier by providing the commander thefinancial resources necessary for successfulmission accomplishment. The financesupport structure must provide the funding(cash and negotiable instruments) essentialto support contracting requirements andaccomplish joint special programs.

The JTF comptroller checklist in AppendixB, “Joint Task Force Comptroller Checklist,”

“Financial potency determines the issues of war.”

RADM Alfred T. Mahan1905

provides an example of the resourceconsiderations by phase of a joint mission.

2. Essential Elements ofFinance Operations

Though each contingency operation has aunique set of parameters associated with itsexecution, all operations involve the essentialelements of finance operations discussed inthis chapter (see Figure III-1).

a. Provide Financial Advice andRecommendations. Early and activeparticipation by the JTF comptroller in thedeliberate and crisis action planning processesis critical to successful integration of allcomponents’ finance operations. The JTFcomptroller must obtain and analyze theeconomic assessment of the JOA and begininitial coordination with the DFAS Crisis

Figure III-1. Essential Elements of Finance Operations

ESSENTIAL ELEMENTS OFFINANCE OPERATIONS

Provide financial advice and recommendations

Support the procurement process

Provide pay support

Provide disbursing support

Provide essential accounting support

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Coordination Center. The DFAS CrisisCoordination Center will provide advice andact as the primary DFAS liaison. The JTFcomptroller will recommend JOA financialmanagement policies and develop the conceptof finance operations support outlined in theFM appendix to the OPLAN/OPORD.

See Appendix C, “Guide to OPLANDevelopment,” for a guide to preparing theFM appendix.

• In order to provide the JFC with accurateand complete FM guidance, the JTFcomptroller must analyze theeconomic impact of an operation onthe local economy in the JOA and itsability to support FM operations. Toobtain needed information, the JTFcomptroller should coordinate with theJTF Intelligence directorate (J-2), J-4,and civil affairs (CA) to ensure thatrequests for information are forwardedto appropriate sources. Other sources ofinformation available to the JTF

comptroller include the DOS, localembassy, Department of Treasury,Department of Commerce, and CentralIntelligence Agency World Factbookcountry reports.

• The analysis includes, but is not limitedto, how well the local infrastructure cansupport the logistics and bankingoperations; how US currency wouldaffect the economy; and which currenciesor scrip should be used. Effective useof the support available from the localeconomy is an important factor in thesuccessful sustainment of joint forces.Procurement of additional labor,materials, food, lodging, sanitation, andother services in the JOA allows forscarce strategic lift to be used for otherpurposes. The results of a thorougheconomic assessment are utilized by bothresource managers and financialoperations personnel. Additional factorsto consider in analyzing this informationare listed below (see Figure III-2).

ADDITIONAL FACTORS IN ANALYZING THEECONOMIC IMPACT OF AN OPERATION

The BankingSystem

The Prices of Goodsand Services

The Developmentof the Economy

The Currency

The Customs andCourtesies

Figure III-2. Additional Factors in Analyzing the Economic Impact of an Operation

III-3

Finance Operations

•• The Development of the Economy.If the economy is very rudimentary, suchas a barter economy, it may provide onlylimited capabilities. Conversely, a highlydeveloped, industrialized economy maybe capable of providing a greater levelof support.

•• The Banking System. Highlydeveloped economies can providemodern banking services such as localcurrency, checking accounts, andautomated teller machines. These bankscan also provide an inexpensive sourceof foreign currency or US coin andcurrency. Cash requirements may bereduced by local acceptance of theGovernment Purchase Card. It may evenbe possible to establish a partneringrelationship to effect the payment ofaccounts payable through an HN bank.Access to a local electronic fundstransmission network may also bepossible. All of these factors mayreduce the cost of providing financesupport to JOA forces.

•• The Currency. Some currencies arenot readily available on the open market.This can be critical in the early stages ofa covert or low visibility operation. Theavailability of currency must bedetermined as early as possible in thedeliberate planning process. Availabilityof currency can have a major effect onexchange rates and lead to largediscrepancies between the official andblack market exchange rates. Anotherconsideration is the impact of a suddenlarge influx of US dollars on the localeconomy.

•• The Prices of Goods and Services.Determination of fair and reasonablelabor rates is essential, as skilled andunskilled labor may be needed early inthe operation. This information alsoshould be disseminated to ordering

officers in the joint force. Prices forgoods should also be determined anddisseminated early in the operation so thatordering officers have a measure againstwhich to judge the reasonableness ofprospective procurements. Availabilityof this information aids control of theoverall costs of the operation.

•• The Customs and Courtesies.Customs and courtesies of the culture inthe JOA must also be considered. Forexample, personal checks, travelerschecks, and credit cards are notacceptable in some countries.

b. Support the Procurement Process.Support of the logistics system andcontingency contracting efforts is criticalto the success of all joint operations.Component finance units, when required, willprovide funds for the local purchase of goodsand services. Normally, it is more economicalto purchase locally than transport from a homestation. A large percentage of the financeunit’s contingency effort may be directedtowards execution of this function.Procurement support is divided into twoareas: contracting support and commercialvendor services (CVS) support.

• Contracting support is normallyconducted by a component’s finance unitand involves the payment for contractedservices and supplies. The finance unit,to the maximum extent feasible, appliesthe principles of electronic commerceand/or electronic data interchange, whichincludes maximizing the use of electronicfunds transfer (EFT) payments tovendors. Another contracting relatedfunction is the CINC LogisticsProcurement Support Board (LPSB).Increased demand for locally procureditems will tend to inflate prices. Thepurpose of this board is to manage theprioritization and allocation of limitedservices and supplies. Component

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finance officers should work with theLPSB to eliminate instances ofunwarranted price inflation.

See Appendix G, “ContingencyContracting,” for a more detaileddiscussion of contingency contracting.

• CVS support is used to satisfyrequirements that cannot be reasonablyprovided through established logisticchannels. If Government Purchase Cardsare not recognized, the vendors arenormally paid in cash by finance supportteams and paying agents, normally inlocal currency. Services and suppliessuch as day labor, rations supplement,and construction materials are commonlypaid using these procedures.

c. Provide Pay Support

• Military (US). The JTF comptroller willcoordinate as necessary with the

component commands to facilitate thesepayments and ensure that Servicemembers from all components arereceiving financial support. Thissupport includes answering pay inquiries,local payments, check cashing, and localcurrency conversion. The distribution ofleave and earnings statements is a DFASresponsibility, in coordination with theJTF comptroller and subordinate Servicecommanders (see Figure III-3).

•• Various entitlements have beenestablished to compensate militarymembers for the rigors and sacrificescaused by different types of militaryoperations. In recent years, JFCs andstaffs have become more involved inmaking entitlement determinations andensuring equity among participantsin joint operations. Thoroughconsideration of pay and entitlementsissues in the early stages of operationalplanning ensures a level of consistency

Figure III-3. Providing Pay Support

PROVIDING PAY SUPPORT

Military (US)

Civilian (US)

Special Paymentsto Non-US Military

Forces

Non-US PaySupport

NoncombatantEvacuationOperations

answering pay inquiries, local payments, checkcashing, and local currency conversion

travel pay, civilian pay, check cashing, and foreigncurrency conversion

overseas evacuation of US citizens is the responsibilityof Department of State (DOS), but there will be timeswhen the DOS requests military assistance

multinational operations may require special paymentsto members of friendly forces in support of transitionassistance programs

day labor pay, Enemy Prisoners of War and/or Civilian Interneespay, Solatium payments, support to special programs, and othersupport to migrant camps, refugees, and dislocated civilians

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Finance Operations

throughout the operation. Thesupported combatant commanderspecifies conditions of duty andentitlement for operations in the theater,an important element in ensuringequitable treatment of all components ofa joint force. Subordinate commandersare expected to adhere closely to fieldduty, group travel, and similardeterminations.

•• The JTF comptroller, in coordinationwith the JTF J-l, will ensure that arecommendation pertaining to Servicemembers entitlements, includingauthorization of per diem allowances, ismade to the supported combatantcommander. Critical among these is theneed to determine the duty status for theinitial deployment as either per diem,field duty, or essential mess. The intentis to avoid situations where soldiers,sailors, airmen, and Marines serving side-by-side under similar circumstances earndifferent entitlements due solely todiffering determinations made bysubordinate Service commanders.

•• Decisions made by the JFCregarding pay and allowances of JTFService members apply equally to allcomponents serving under similarcircumstances. The JFC shouldannounce the conditions of the operationsaffecting entitlements as soon as possibleto ensure that deploying Servicemembers are financially prepared. Thisinformation is particularly important asit must appear in many cases ondeployment orders. Actions to requestentitlements should be initiated so theyare in place when the operation begins.Entitlement policy is a J-1 responsibilityand will be accomplished in accordancewith the applicable DODFMR, JointFederal Travel Regulations (JFTR), andthe entitlement matrix provided in

Appendix H, “Joint OperationsEntitlements and Pay Matrix.”

• Civilian (US). If necessary, the JTFcomptroller will establish the JFC policyfor finance support for USG civilianpersonnel. The policy should include,at a minimum, travel pay, civilian pay,check cashing, and foreign currencyconversion. Eligible personnel shouldinclude contractors and their employees,US cit izens who are federalemployees, employees of authorizednongovernmental agencies operatingwith USG agencies, dependents orderedto safe haven posts, and other designatedUSG personnel.

• Noncombatant Evacuation Operations.Overseas evacuations of US citizens arethe responsibility of DOS; however, therewill be times when the DOS requestsmilitary assistance to execute themission. Based on the situation, theevacuee population may consist ofnonessential military personnel, federalemployees and their families, DODfamily members, private US citizens, anddesignated foreign nationals.

•• The NEO (i.e., the militarymovement of personnel) is oftenconfused with the DOS-authorized or-ordered departure, which is an officialorder recognizing the hostilities or athreat and establishing the effective datefor beginning of entitlements for officialgovernment employees and theirfamilies.

•• The Department of StateStandardized Regulation (DSSR)defines travel and safe havenentitlements for eligible federalemployees and their family members. Areprint of the applicable DSSR chaptermay be found in the Joint Travel

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Regulations (JTR). The JFTR definestravel and safe haven entitlements formilitary family members. Except in veryunusual cases, deploying JTF personnelshould not be required to make advancepayments for evacuees. Safe havenentitlements are normally paid by theestablished repatriation center(s) whenthe safe haven is in the continentalUnited States. If the safe haven isoverseas, the JTF comptroller willcoordinate with the joint receptioncoordination center (JRCC) in thePentagon. Fund cites for safe havenentitlements for eligible personnel arefound in the joint plan for DODnoncombatant repatriation.

•• Eligible federal employees and theirfamilies, as identified in the JTR andJFTR, are entitled to transportation to afinal safe haven location and/ordesignated place at government expense.Costs borne by the JTF for these evacueeswill be charged against the respectiveService fund cites or in accordance withDODFMR Volume 12, Chapter 23,“Contingency Operations” submitted toDFAS-DE for reimbursement againstthe respective federal agency. All otherindividuals must sign a promissory noteto DOS before boarding a military ormilitary-chartered conveyance at the pointof departure from the subject country.

•• Any finance unit (including those atports of debarkation) may make anadvance of pay, dislocation allowancepayment, and/or travel entitlement fordeploying personnel supporting a NEOas identified in subparagraph 2c above.The Service components have theauthority (37 US Code [USC] Section405a) to provide special allowances fortheir Service members and familymembers under an authorized and/orordered evacuation from overseaslocations. Federal employees and their

family members are also authorized (5USC Sections 5521-5527) pay andspecial allowances during an authorizedand/or ordered evacuation. US citizenswill receive financial assistance throughthe Department of Health and HumanServices or the Red Cross. Payments ofall authorized allowances will beprovided at the repatriation site(s)used for processing evacuees. For DODfamilies caught in a “stop movement” dueto the evacuation, toll-free numbers foreach Service and federal agency will beprovided by the JRCC. These are theonly locations outside the repatriationsite(s) authorized to provide separationallowances. For follow-on paymentseach Service and DFAS have establishedcentral sites to support payments whilethe family is in a safe haven status.

• Special Payments to Non-US MilitaryForces. Multinational operations mayrequire special payments authorized tomembers of friendly forces in support oftransition assistance programs. The JTFcomptroller should coordinate with stafflegal personnel concerning support tothese and other non-US military forces.The supported combatant commander’scomptroller must ensure that specificauthority and funding is obtained fromthe Department of Defense and providedto the JFC before any payments areauthorized. The supported combatantcommander’s comptroller will obtaincopies of such agreements and makethem available to the JTF comptrollerearly in the planning process. When anagreement has been negotiatedbetween the United States and anallied nation, US disbursing officers maybe authorized to advance currency on anemergency basis to cashiers, disbursingofficers, or individual members of the alliednation’s armed forces. Such agreementsmay require allied forces to providereciprocal support to US forces.

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Finance Operations

• Non-US Pay Support

•• Day Labor Pay. HN employee andday labor pay are provided througharrangements with the HN or by adesignated component of the JFC. TheJFC has the authority to contract HNemployees and day labor and to makepayments. If required, this can bedelegated to contracting officers.Payment rates are determined by theDOS. These rates, if available, shouldbe obtained by the supported combatantcommander and provided to the JTFcomptroller in the planning phase of anoperation.

•• Enemy Prisoners of War (EPWs)and Civilian Internees (CIs). The JFCis responsible for providing EPW andCI pay. The JTF comptroller maydesignate a component to providecurrency and other required support. Thedesignated component will also ensurethat controls are established to properlyprocess deposits to and payments fromdesignated accounts. The supportedcombatant commander’s comptrollermust secure the appropriate pay ratesfrom the Joint Chiefs of Staff and providethem to the JTF comptroller. If paymentsto EPW and/or CI are required, O&Mfunds are authorized. The JTFcomptroller must coordinate with theassigned staff judge advocate on EPWand/or CI matters.

•• Claims Payments. Claims paymentsare monetary payments made by the USGfor non-combat injuries or propertydamages. Claims are paid pursuant tothe Personnel Claims Act (USpersonnel), Federal Torts Claims Act (UScitizens), Military Claims Act (UScitizens), Foreign Tort Claims Act(FTCA) (foreign personnel), or claimsarising under a status-of-forcesagreement. Claims will be processed

and adjudicated by an area claims officeor, in the case of FTCA, by a foreignclaims commission. Claims paymentscan reach significant dollar amounts.The finance unit is responsible for thedisbursement and accounting of allclaims payments.

•• Solatium Payments. A solatiumpayment is monetary compensationgiven to indigenous personnel toalleviate grief, suffering, and anxietyresulting from injuries and property orpersonal loss. Sometimes solatiumpayments are made in order to meetcultural expectations. A solatiumpayment is nominal in amount and is notan admission of liability by the UnitedStates. The geographic combatantcommander in whose area ofresponsibility the incident occurred isresponsible for determining entitlementfor solatium payments. The finance unitis responsible for the disbursing andaccounting of all solatium payments.

•• Support to Special Programs —Weapons for Cash. The weapons forcash exchange, also called the weapons“buy back” program, has been usedsuccessfully in operations in Panama,Somalia, and Haiti. This force protectionprogram may be implemented by the JFCin an attempt to reduce the overallnumber of weapons held by thecivilians within the JOA . Thesupported combatant commander mustrequest special funding authority andimplementing instructions through theJoint Staff. O&M funding has normallybeen authorized for this mission with aseparate limitation. The DOS, incoordination with DFAS and USD(C),establishes prices and procedures forspecified weapons. The JTF comptrollermay designate a component to providethis service and fund the requirement.To conduct this mission, the JTF

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comptroller may be required to procure“coupons” that can be used to exchangea weapon for a specified amount of cash.These coupons could also containinstructions about where to go to redeemthe weapons for cash. The JTFcomptroller must establish internalcontrols to support the execution ofthis special program. Disbursementdocumentation is determined by theDFAS.

•• Other Support. Authorized missionrequirements or agreements may requirecomponent finance sections to supportoccupants of migrant camps, refugees,and dislocated civilians.

d. Provide Disbursing Support

• Establishment and Control ofFinancial Institutions. The supportedcombatant commander, in coordinationw i t h D O S a n d U S E m b a s s yrepresentatives, will designate an HNbanking activity with US Treasuryapproval. Banking support will beprovided, when appropriate, by militarybanking facilities or the banking industryof HNs. When the JFC has authorizedthe establishment of an FM EA from acomponent, the FM EA will procure andprovide US and local currency for theJFC’s forces. The JTF comptroller, whenrequired, will negotiate and provideliaison with designated bankinginstitutions of an HN to establish LDAsand banking procedures. Coordinationwith DFAS and the Treasury Departmentwill be required when negotiating withHN banking facilities.

• Currency Control and Support

•• Currency Contr ol. T h e J T Fcomptroller, when required, isresponsible for coordinating US andlocal currency procurement and

control in support of JFC requirements.The JFC may set conversion limits andpolicies as recommended by the USTreasury and the DOS.

•• Currency Support. Currencysupport includes supplying UScurrency, foreign currencies, USTreasury checks, foreign military scrip,military payment certificates (MPC) and,in some operations, precious metals(gold, silver) to US and multinationalforces in the JOA. Currency and coinsmay also be provided to designatedfacilities as operational considerationspermit. Finance units will exchangecurrency for US Treasury checks or EFTfor Service members, nonappropriatedfund instrumentalities, and postal units.Finance units can also provide cash forautomated teller machines in the JOA.Commanders must maximize use ofexisting technology (to include EFT) inorder to minimize the use of cash in theJOA. The FM EA should synchronizecentral funding locations with supportedelements of all components. The centralfunding agency must ensure thatcurrencies are available to supportfinance and contracting missions for allcomponent commands and all elementsnot supported by assigned financeelements.

•• Other Currency Exchange. TheUSD(C) approves the implementation,conversion, or withdrawal of MPC.MPC will not be implemented unlessthe expected period of utilization willexceed 6 months. JFCs requesting MPCneed to develop plans to transport theMPC to the theater of operations.Planning must also include the processfor securing and distributing the funds.

e. Provide Essential AccountingSupport. The ability to report to Congresson the use of appropriated and

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Finance Operations

nonappropriated funds is critical in meetingthe EA’s responsibility for stewardship ofpublic resources. Appropriated andnonappropriated accounting requirements fora military operation are immense, and theybegin before the first troop deployment. Thequality of accounting records is totallydependent upon the timely receipt andaccuracy of cost data. The level of accounting

support depends upon the level of conflictand the complexity of the operation. Effectivecost capturing is achieved through a jointeffort between finance and resourcemanagement personnel. From home station,DFAS issues guidance and operates thefinancial systems, which process all thefinance and accounting informationtransmitted from the operational area.

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Intentionally Blank

APPENDIX AFINANCIAL MANAGEMENT RESPONSIBILITIES WITHIN

THE DEPARTMENT OF DEFENSE

A-1

1. Under Secretary of Defensefor Policy

The Under Secretary of Defense for Policy(USDP) has responsibility within theDepartment of Defense for certaincontingency operations (peace operations,foreign humanitarian disaster relief, andnoncombatant evacuation). The USDP doesnot have responsibility for domestic disasterrelief. The Assistant Secretary of Defense forSpecial Operations and Low-IntensityConflict (ASD[SO/LIC]) provides USDPwith overall coordination of DOD activitiesin support of NEO as chair of the evacuationmanagement task force. In that capacity, theASD(SO/LIC) ensures that existing policyand procedures for NEO remain current, toinclude a memorandum of understanding withthe DOS.

2. Under Secretary of Defense(Comptroller)

The USD(C) is responsible for overallfinancial policy for contingency operationsand works with USDP to determine the mostresponsive method of financing forcontingency operations. In addition, theUSD(C) is responsible for pursuing promptreimbursement to the Department of Defensefrom the UN and other multinationalorganizations, other nations, and US agencies.USD(C) will coordinate with the Joint StaffDirector for Force Structure, Resource, andAssessment (J-8) to ensure that warning ordersand execute orders to the combatantcommanders and DOD components includeFM guidance. Guidance should includeaccounting and logistic codes to track anoperation’s costs, billing procedures forreimbursable support, responsibilities of thesupported combatant commander staff for

coordination of FM issues, and any other FMinstructions pertinent to the specific operation.

3. Under Secretary of Defensefor Personnel and Readiness

The Under Secretary of Defense forPersonnel and Readiness ensures thatexisting policy and procedures for NEO arecurrent and serves as a member of theevacuation management task force.

4. Chairman of the Joint Chiefsof Staff

The Chairman of the Joint Chief of Staff isresponsible for transmitting SecDefdeployment and execute orders to thecombatant commanders. Whenever possible,execute orders will include a fundingparagraph outlining the financialresponsibilities, as directed by the USD(C)and USDP, and a logistics guidance annexproviding organizational identification oflogistics responsibility.

5. Director, DFAS

a. DFAS plays a critical role in support ofjoint operations as the DOD EA for financeand accounting. Defense managementresource decision (DMRD) 910, 13 December1991, directed the consolidation of finance andaccounting operations into a single DODagency, DFAS. In implementing the DMRD,the Deputy Secretary of Defense decided notto consolidate the Services tactical financepersonnel into DFAS. The Services retainedthese personnel to provide the finance andlimited accounting support required for theirdeployable forces during contingencyoperations. DFAS has the responsibility forDOD finance and accounting policies,

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procedures, standards, systems andoperations in support of the combatantcommanders and the Services. In addition,DFAS has responsibility for centralized costcapturing of the operation for the Departmentof Defense and the Service components.

b. To facilitate this support role, DFAS hasestablished the defense finance and accountingsupport element. Operating from DFAS HQs’Crisis Coordination Center, this organizationis the single point of contact for guidance andresolution of issues. It is available to assist inthe development of finance and accountingplans, policies, and procedures. In addition,this support element has the responsibility toorganize DFAS activities to maximize thesupport provided deployed forces. DFAS canprovide liaison personnel to augment the staffof a JTF comptroller in order to assist inestablishing unique accounting requirements.

6. Secretaries of the Army,Navy, and Air Force, Headsof DOD Agencies, and UnitedStates Special OperationsCommand

a. The Services are the proponents for FMand provide guidance and implementinginstructions regarding all FM issues.USSOCOM provides management andauthority on use of major force program-11funding. They allocate funds appropriated forprograms established by Congress, monitortheir execution, and recommend majorreprogramming of funds. The heads of theDOD components are responsible forpreparing cost estimates and submittingbudget justifications to the USD(C), and alsoproviding monthly incremental cost reportsto the DFAS in accordance with policy fromthe USD(C). In addition, the DODcomponents’ HQs are responsible forproviding to the DFAS, on a monthly basis,certified cost statements, supporting

documentation, and completed billingdocuments (SF 1080 Vouchers for Transfer)for each LOA or incurred cost for whichpayment is requested.

b. DOD components and supportingcombatant commanders can issue specific FMinstructions to their subordinate activities asrequired to support a contingency operation.These instructions will be coordinated withUSD(C) and Joint Staff J-8 to eliminate conflictand normally include requests for cost estimates,reporting requirements, and further component-unique accounting and billing procedures.

7. Director, Defense SecurityCooperative Agency

The DSCA is responsible for providingleased equipment and using FMS systems andprocedures, when required, to supportcontingency operations. The DSCA is alsoresponsible for supporting the implementationof those contingency operations supportedunder the applicable sections of the FAA,when directed by the USDP to provide thissupport. Such support may be in response torequests from the DOS or requests from theUN for articles and services to supportequipment leased under FMS procedures. TheDSCA is authorized to use the FMS systemnetwork to provide such support.

8. US Mission to the UN(Military Advisor)

The Office of the Military Advisor to theUS mission determines the appropriate USagency to support UN requests for assistance.For the Department of Defense, all requestsshould be forwarded to the USDP for approvaland action. The Military Advisor’s office willbe the focal point for receipt of billings fromDFAS, transmittal of information to the UNrequesting offices, and follow-up to UNqueries when necessary.

APPENDIX BJOINT TASK FORCE COMPTROLLER CHECKLIST

B-1

1. Introduction

The JTF comptroller is the principal orspecial staff assistant to the JFC on FMmatters. The following is a checklist, by phaseof military operations, of FM-related activitiesthat the JTF comptroller should consider inplanning and executing operations. Activitiesare not necessarily limited to a single phase.

2. Predeployment andLodgment Phase

a. RM Operations

• Provide RM advice and assistance.

• Analyze all support agreements for RMimplications.

• Ensure that the EA has been designated,when appropriate.

• Maintain an awareness of costs;participate in the staff estimate and jointplanning process.

• Prepare FM appendix and reviewOPLANs, to include the concept ofsupport.

• Review requirements for resourcemanagement support and establishmentof funding responsibility, to includecontracting and procurement. Ensure thatmechanism for cost capturing isestablished.

• Review interagency financial supportagreements.

• Determine if support is required for otheragencies, such as morale, welfare, andrecreation (MWR), Red Cross, NGOs,PVOs, and public affairs (PA).

• In coordination with the JTF J-4,determine availability of HNS and/orAIK support and establish reporting andreimbursement requirements. Incoordination with the JFC J-4 and staffengineer, initiate wartime militaryconstruction requests or reprogrammingaction.

• Determine any unique reimbursementprocedures through the UN, if necessary,to capture incremental costs.

• Request special appropriations, ifrequired.

• Implement procedures to trackmultinational support costs and reviewbilling procedures.

• Review cost estimates, when required.

• Coordinate with Staff Judge Advocate(SJA) to ensure that legal considerationsare reviewed.

b. Finance Operations

• Prepare finance portion of the FMappendix and review OPLANs todevelop the concept of support.

• Consolidate and analyze economicassessment within the JOA.

• Provide financial advice and assistance.

• Determine if foreign currencies are to beused and their exchange rates.

• Develop requirements for checkcashing, emergency payments, currencyconversion, funding of paying agents,foreign currency conversion, solatiumpayments, recording of cost data, travel,

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civilian pay, funds disbursement, andother pay support.

• Determine what duty conditions havebeen designated for the operation by thecommander.

• Determine if group travel has beendeclared.

• Coordinate entitlement, if required, forReserve and/or National Guardparticipation.

• Coordinate with the JTF J-1 to ensureconsistency of entitlements and levelof support. If required, requestdetermination of hostile fire pay,imminent danger pay, hardship duty pay,family separation allowance, specialleave accrual, combat zone taxexclusion, and sea duty pay.

• Publish guidance, when required, on UNentitlements, leave, and observers topeacekeeping organizations.

• Determine check cashing limits.

• Coord ina te w i th DFAS Cr is isCoordination Center.

• Determine, if necessary, accounting andcentral funding support necessary for theoperation.

• Determine banking support requirements.

• If required, determine appropriatequantities of foreign currencies andformalize resupply procedures.

• Support, if necessary, NEO.

• Provide, if necessary, currency fundingsupport to other US and alliedorganizations in the JOA.

• Coordinate the establishment of HNLDA.

• Prepare for solatium payments andpayments for other claims.

• Coordinate with SJA to ensure that legalconsiderations are reviewed.

3. Combat and EngagementPhase

a. RM Operations

• Coordinate FM aspects of HNS and AIK.

• Capture costs, when required.

• Provide reports as required, includingthose needed for reimbursement by a HN,foreign nation, NGOs and/or PVOs, orother federal agencies.



• Perform, if necessary, central funding andaccounting (both appropriated andnonappropriated) support.

• Support contracting and localprocurement requirements.

• Control currency.

• Provide, if necessary, EPW and/or CI paysupport.

• Support, if necessary, NEO.

• Provide pay support to joint andmultinational forces as well as designatedcivilians.


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Joint Task Force Comptroller Checklist

4. Follow-Through and PostHostilities Phase

a. RM Operations

• Identify additional sources of funds inorder to continue sustainment of theoperation.

• Obtain MWR funds for support of jointoperation personnel.

• Determine requirements, whennecessary, for civic assistance funding.



• Provide banking and currency support.

• Provide pay support to joint andmultinational forces as well asdesignated civilians.

• Provide local procurement and/or CVSsupport.

• Establish pay support procedures forremaining forces in-theater.


5. Redeployment Operations

a. Coordinate and develop FMrequirements for redeployment support.

b. Close out contingency fundingoperations and conduct hand-off procedureswith responsible component.

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Intentionally Blank

APPENDIX CGUIDE TO OPLAN DEVELOPMENT

C-1

CLASSIFICATION

HEADQUARTERSDATE

APPENDIX 7 TO ANNEX D TO XXXXX OPLAN XXXX-XX

REFERENCES: Cite the documents necessary for a complete understandingof this appendix.

1. Situation

a. Purpose. This appendix provides broad policy and procedural guidance and assignstasks for FM operations. This appendix describes the mission and responsibility of the JTFcomptroller during deployment and sustainment for both the joint headquarters and componentswithin the JOA.

1. General

The following sets forth administrativeinstructions and format to govern thedevelopment of Appendix 7 (FinancialManagement) to Annex D (Logistics) toOPLANs.

2. Procedures

a. Unless otherwise indicated, thefollowing format for Appendix 7 (FinancialManagement) to Annex D (Logistics) in JointOperation, Planning and Execution Systemis mandatory for the Joint Staff, all unifiedcombatant commands, the Services, and thecombat support agencies responsive to theChairman of the Joint Chiefs of Staff.

Pertinent FM-related references are listed inAppendix J, “References,” of thispublication.

b. Development of Appendix 7 (FinancialManagement) to Annex D (Logistics) will be

accomplished in conjunction with, and insupport of, the staff estimate and operationalplanning process. The appendix will identifyand resolve FM support problems and fundingresponsibilities in advance of planimplementation.

c. Command responsibilities andfunctional alignments for providing FMsupport should be described and defined insufficient detail to ensure that provisions aremade to support all mission essential tasks.

d. The following format and guidance mustbe followed in preparation of Appendix 7(Financial Management) to Annex D(Logistics). Note: Entitlement informationto Service financial managers and DFAS iscritical to accurate payment of personneldeploying to support joint force operationsand should be communicated as soon aspossible.

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b. Enemy. Refer to Annex B, Intelligence. Assess the impact of enemy capabilities andprobable COAs on FM support.

c. Friendly. List the component FM organizations and the specific tasks assigned to eachsupporting the FM operations of the plan. Summarize their capabilities. Include non-USmilitary forces and US civilian agencies, such as banking institutions or embassies, that maysupport assigned forces in the provision of FM support (or may themselves require support).

d. Assumptions. State realistic assumptions and consider the effect of current operationson FM operations. These could be similar assumptions used by the components whendeveloping cost estimates for the operation.

e. Limitations. List key limiting factors affecting FM capability.

2. Mission. State in a clear concise statement the FM mission in support of the basicplan.

3. Execution

a. Concept of Operations. Summarize the intended COA and state the general conceptfor FM support in the operational area. In separate numbered subparagraphs, provide specificguidance on the following, as applicable.

Predeployment and Lodgment

(1) Ensure that the EA has been appointed, when required.

(2) Obtain and analyze available economic assessment data of the operational area andany financial implications.

(3) Analyze all support agreements.

(4) Identify missions that will require special funding and authority, when required.

(5) Determine if foreign currencies are to be used and, if necessary, determine exchangerates.

(6) Coordinate entitlement policies with the JTF J-1 prior to deployment.

(7) Establish joint and combined FM operational requirements, to include disbursingsupport, contracting support, commercial vendors payment support, and any other uniquefinance requirements.

(8) Coordinate the establishment of HN-limited depositories account.

(9) Determine if support is required for other organizations, such as MWR, Red Cross,NGOs, PVOs, and PA.

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Guide to OPLAN Development

Combat and Engagement Phase

(1) Support contracting and local procurement requirements.

(2) Provide reports as required.

Follow-Through and Post Hostilities Phase

(1) Provide policy guidance, if necessary, for EPW and/or CI, NEO, MWR, Red Cross,NGOs, PVOs, and PA.

(2) Obtain, if required, MWR funds.

(3) Identify and task component(s) for continued FM support, if required.

(4) Ensure that a management control process is in place.

Redeployment Operations

(1) Identify, when necessary, funding requirements for redeployment support.

(2) Close out contingency funding operations and conduct hand-off with responsiblecomponent.

b. Assignment of Tasks. In separate numbered subparagraphs, address unique tasksrequired of the components to accomplish the joint FM mission.

c. Coordinating Instructions. This subparagraph will include, but need not be limited tothe following.

(1) Items common to two or more subordinate commands and any unique FM relationships.

(2) Coordination with adjacent commands and other agencies.

(3) Agreements with the host country, allied forces, and USG and nongovernmentalagencies.

(4) DFAS Crisis Coordination Center responsibilities.

4. Administration and Logistics. Provide FM guidance for furnishing logisticsand administrative support. As appropriate, include guidance on the following.

a. Contracting requirements.

b. Logistic support relationships.

c. Reporting requirements.

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d. Identify any particular personnel or augmentation requirements.

e. Coordinate with JTF J-2 to determine time frame after which all FM plans and budgetscan be declassified.

5. Command and Control

a. Command relationships.

b. Discuss command, control, communications, and computer systems requirements forFM support.

APPENDIX DLEGAL

D-1

1. Introduction

This appendix provides background onseveral important laws that provide the basisfor FM operations. It is not meant to be all-inclusive or a source of legal guidance.Financial managers who have questionsregarding the legality of payments shouldcontact their local SJA or legal advisor.

2. Fiscal Law

a. Of primary concern to financialmanagers is fiscal law. Failure to apply fiscallaw principles properly may lead tounauthorized expenditures of funds andconsequent administrative or criminalsanctions against those responsible. Theauthority to obligate USG funds is derivedfrom Congress. The law of federalappropriations has constitutional and statutoryaspects that generally identify clear rules theGeneral Accounting Office (GAO) and otheragencies apply to fiscal decisions. OnceCongress has passed an appropriation and thePresident has signed it into law, agencies mustrequest an apportionment from the TreasuryDepartment within 10 days and the Office ofManagement and Budget (OMB) must makeapportionment within 30 days after signature.Once OMB apportions funds to theDepartment of Defense, the Department ofDefense subapportions funds to the militaryservices, USSOCOM, or Defense agencies toallocate to major commands, which in turnallot funds to operating units. Theapportionment process must be completebefore funds can be committed.

b. Federal agencies require Congressionalappropriation to operate. In some cases, anauthorization must also be enacted before anappropriation can be obligated. Anappropriation is a law passed by a majority of

members of the House and Senate and signedby the President, which provides budgetauthority for the stated purposes. No otherstatutes and resolutions passed by Congress,including budget resolutions and authorizationacts, authorize withdrawal of money from theUS Treasury.

c. Budget authority is the authorization toincur a legal obligation to pay a sum of moneyfrom the US Treasury. Budget authority isnot money; it is the authority to spend moneythat has been appropriated. The US Treasuryactually disburses cash only after an agencyrequests (or, in the case of the Department ofDefense, issues) an EFT or a check towithdraw money from the US Treasury toliquidate an obligation.

d. DOD regulations mandate the use ofcommitment accounting for all appropriations,both unexpired and expired. Commitmentsare administrative reservations of funds, basedupon firm procurement directives, orders, orrequests, that authorize the creation ofobligations without further approval by theofficial responsible for certifying theavailability of funds. Issuing a commitmentthat authorizes an obligation in excess of anappropriation or formal subdivision of fundscould result in a violation of theAntideficiency Act (See paragraph 3 on theAntideficiency Act).

e. Obligations are amounts of ordersplaced, contracts awarded, services receivedor similar transactions made which legallybind the USG to make payments. Congresshas imposed fiscal controls which limit theability of the Executive Branch to obligateand expend appropriated funds. Funds maybe obligated only for the purposes for whichthey were appropriated; further, they may onlybe used to satisfy the bona fide needs of the

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fiscal year for which the appropriations arevalid. In most cases, they may not be usedbeyond their period of availability. No onemay obligate funds in excess of (or in advanceof) an appropriation, an apportionment, or aformal subdivision of funds without specificstatutory authority. If administrative lead timerequires contract award prior to the receipt offunds, execute contracts “subject to theavailability of funds” to ensure timely deliveryof the goods or services. If this clause is used,accept no services or supplies until afterreceipt of funds.

f. A corollary to the purpose and bona fideneeds requirements regarding obligation offunds is the general prohibition againstaugmentation. Transfers from oneappropriation to another are prohibited exceptas authorized by law. Appropriated fundsdesignated for a general purpose may not beused to pay for an effort for which Congresshas specifically appropriated other funds.

g. Continuing Resolution Authority (CRA)is an interim legislation enacted by Congressto provide authority to specific ongoingactivities where the normal fiscal yearappropriation has not been enacted by thebeginning of the fiscal year, pending theannual appropriation enactment by Congress.CRA authorizes continuation of normaloperations at a rate not to exceed the latestCongressional action or the previous year’srate. CRA does not authorize new starts orexpansions to a program. A funding gap mayoccur in the absence of either anappropriations act or a CRA, or when thePresident vetoes a duly passed appropriationsbill or continuing resolution followingexpiration of either of their predecessors. TheAttorney General has determined that, absentan appropriation or a CRA, executive agenciesmust take immediate steps to cease normaloperations. Disbursements supporting newfiscal year obligations may not be made duringa funding gap unless specifically authorizedby the USD(C).

3. Antideficiency Act

The Antideficiency Act is codified at 31USC Sections 1341, 1342, 1344, and 1511-1517 and is implemented by OMB CircularA-34, “Instructions on Budget Execution;”DOD Directive 7200.1, “AdministrativeControl of Appropriations;” and Volume14 of the DODFMR (DOD 7000.14-R,“Security Assistance Policy andProcedures”). It states that an officer oremployee may not make or authorize anobligation or expenditure that exceeds anamount available in an appropriation orformal subdivisions of funds. The GAOhas determined that this statute prohibitsobligations in excess of appropriatedamounts and obligations that violatestatutory restrictions or other limitationson obligations or spending. Officers oremployees who authorize or makeprohibited obligations or expenditures aresubject to criminal sanctions andadministrative discipline, includingsuspension without pay and removal fromoffice. Good faith or mistake of fact does notrelieve an individual from responsibility fora violation. Factors such as “a heavyworkload at year end” or an employee’s “pastexemplary record” generally are relevant onlyto determine the appropriate level ofdiscipline, not to determine whether thecommander should impose discipline.

4. Law Of Armed Conflict

The Law of Armed Conflict deals with awide variety of areas, including monetaryissues pertaining to prisoners of war. Actionsregarding the treatment of prisoners of war,from what to do with money that prisoners ofwar are carrying to how much and when topay them for their labor, are covered withinthe Law of Armed Conflict.

Additional information on payments to EPWsis contained in Chapter III, “FinanceOperations.”

D-3

Legal

5. Feed And Forage Act

a. The Feed and Forage Act (41 USC 11and 11a) permits the Department of Defenseto incur obligations in excess of or in advanceof available appropriations to ensure necessaryfunding to support members of the ArmedForces of the United States conductingmilitary operations. Clothing, subsistence,forage, fuel, quarters, transportation, andmedical and hospital supplies, not in excessof the necessities of the current year, may beincurred at the direction of the Secretary ofDefense. The USD(C) issues instructions toimplement the order.

b. Although authority to act under the Feedand Forage Act is granted by the Departmentof Defense, forward-deployed units must beprepared to request urgent obligation authorityduring contingency operations. Units willsubmit requests through command and/orresource management channels.

6. Chief Financial Officers Actof 1990

The 1990 Chief Financial Officers Actestablished a centralized FM structure withinthe OMB and in major departments andagencies. It strengthened FM internal controlsby requiring the following.

a. Preparation of 5-year FM systemsimprovement plans, both government-wideand in the 23 agencies covered by the act.

b. Preparation of audited financialstatements and audits of selected activities ofagencies to hold agency heads accountablefor their operations.

c. Reporting to the President and Congresson the annual status of general and financialmanagement in the Federal government.

7. Federal Managers’ FinancialIntegrity Act — Public Law97-255

The Federal Managers’ Financial IntegrityAct was enacted in September 1982 tostrengthen internal control and accountingsystems throughout the federal governmentand to help reduce fraud, waste and abuse,and misappropriation of federal funds. TheAct holds agency managers accountable forcorrecting noted deficiencies and requires thatagencies annually identify and report internalcontrol and accounting system problems andplanned remedies.

8. Government ManagementReform Act of 1994 and theFederal FinancialManagement Act of 1994

The Government Management ReformAct and the Federal Financial ManagementAct were enacted to provide a moreeffective, efficient, and responsiblegovernment. These Acts mandatedstatutory requirements for reports toCongress, the use of EFTs for payments,the establishment of a franchise fund ineach of four executive agencies, and thesubmission of annual audited financialstatements to the Director of the OMB.

9. 31 USC

This title of the US Code contains the basicstatutory requirements for the use, control, andaccounting of public funds.

10. 31 USC S1301 (the PurposeStatute)

This section imposes the requirement touse appropriated funds only for their intendedpurpose.

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11. FM in MultinationalOperations

In addition to the statutes listed above,financial managers must be aware of the legalramifications of operating in a multinationalenvironment. Reimbursement and otherfunding issues often are complex, requiringknowledgeable financial managers.

In addition to the specific agreementsgoverning each operation, important

references on multinational funding issuesare contained in Volume 15, DODFMR DOD7000.14-R, “Security Assistance Policy andProcedures.” Appendix E, “Authorities andAgreements,” provides additionalinformation regarding funding authorities formultinational operations. Appendix F,“Financial Support to Military Operationsin a Multinational Environment,” discussesfinancial support to military operations in amultinational environment.

APPENDIX EAUTHORITIES AND AGREEMENTS

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1. Introduction

This appendix describes DOD and non-DOD authorities and procedures and, whenpossible, gives examples of how theseauthorities and sources of funds have beenutilized to support a variety of joint operations.Some of the more important agreements,useful to a complete understanding offinancial management in joint andmultinational operations, are also discussed.This appendix provides only an overview; inmost cases, financial managers, along withtheir appropriate legal advisors, will want toconsult the proper US Code, regulation, ordirective prior to any expenditure of resources.

2. DOD Authorities

a. O&M Appropriations

• Purpose. These appropriations pay forthe day-to-day expenses of DODcomponents in garrison, during exercises,deployments, and military operations.However, there are threshold dollarlimitations for certain types ofexpenditures such as purchases of majorend items of equipment and constructionof permanent facilities. Once expended,O&M accounts may be replenished forspecific operations through supplementalappropriations from Congress,reprogramming actions, or the UN.

• Procedures. The Chairman of the JointChiefs of Staff provides an execute orderto a combatant commander describingmission requirements. Normally, thecombatant commanders’ Servicecomponents will fund their participationin an operation with O&M funds.

• Examples. O&M funds were used todeploy US forces on operations in Haiti,Bosnia, Rwanda, and Somalia. O&Mfunds were also used to construct migrantcamps in Guantanamo Bay, Cuba andtransport migrants, based on aPresidential Determination. O&M wasalso spent during the initial stages ofOperation UPHOLD DEMOCRACY torestore power and repair bridges in Haiti.These expenditures were approvedbecause the US commander wasauthorized to expend DOD funds foractivities essential to performance of themission. The on-scene commanderdetermined that these civic improvementswere necessary to enhance security of USforces.

b. Military Construction (MILCON)Appropriations

• Purpose. Congressional oversight ofMILCON is extensive. Specific approvalis required for any project above anestablished dollar threshold. Funds forthese large construction projects requirespecific Congressional approval and areprovided in the annual Specified MilitaryConstruction Program. MILCONappropriations also fund part of theUnspecified Minor Military ConstructionProgram. The Secretary concerned,under the authority of 10 USC Section2805a, may use minor MILCON fundsfor minor projects not specificallyapproved by Congress. Statutoryauthority contained in US Code, title 10,sections 2803 and 2804 addresses thisissue. This authority is limited to projectswithin prescribed dollar threshold limits.O&M funds may be used for unspecified

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minor construction under $500K.Maintenance and repair are notconsidered construction, and expenditureof O&M for these purposes is not subjectto the construction expenditurelimitation. Maintenance is recurrent workto prevent deterioration and to maintainthe facility in usable condition. Repairis the restoration of a facility in order thatit may be used for its original purpose.When construction and maintenance orrepair are performed together as anintegrated project, each type of work isfunded separately, unless the work is sointegrated that separation of constructionfrom maintenance or repair is notpossible. In such cases, fund all work asconstruction.

• The Secretary of Defense is authorizedto undertake emergency constructionprojects not otherwise authorized by lawthat are necessary to support the ArmedForces. Such projects are funded withany unobligated MILCON and familyhousing appropriations. See 10 USCSection 2808.

c. Traditional CINC Activity (TCA)Funding

• Purpose. These funds are intended foruse by the combatant commander topromote regional security and other USnational security goals. These fundsfulfill the combatant commanders needfor flexible resources to interact with themilitaries in their areas of responsibilityto promote regional security and othernational security goals. TCA funds arenot intended to replace or duplicateany other specifically authorizedappropriated fund sources available to thecombatant commanders. Servicesprovide this funding with both O&M andmilitary personnel appropriations.

• Procedures. Combatant commandersare responsible for direct oversight andexecution of traditional CINC activitieswithin established policy and legalguidelines. The Department of Defenseand members of appropriate interagencyworking groups exercise broad reviewand policy oversight.

• Examples. Some examples of the useof TCA funding include military liaisonteams, traveling contact teams, statepartnership programs, regionalconferences and seminars, unitexchanges, staff assistance andassessment visits, joint and combinedexercise observers, and bilateral stafftalks.

d. CINC Initiative Fund (CIF), 10 USCSection 166a

• Purpose. CIFs provide combatantcommanders with funds to supportunprogrammed new emergen trequirements that occur during the fiscalyear. Funds may be used for commandand control; joint exercises; humanitarianand civic assistance; military educationand training to military and relatedcivilian personnel of foreign countries;personnel expenses of defense personnelparticipating in bilateral or regionalcooperation programs; and forceprotection.

• Procedures. The combatant commanderrequests the Chairman of the Joint Chiefsof Staff to provide funds for a specificpurpose.

• Examples. This authority was used toprovide initial JTF communication supportin Rwanda and some of the initial supportrequired to establish the migrant campoperations at Guantanamo Bay, Cuba.

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Authorities and Agreements

e. Official Representation Funds

• Purpose. Occasionally, there will berequirements for supporting foreignmilitary forces at official functions.Examples of this are Fourth of Julycelebrations, changes of command,special meals, or gifts to foreigncontingent commanders.

• Procedures. Service regulations and/ordirectives should be referenced regardingproper obligation and expenditure ofthese funds.

f. Humanitarian Assistance, 10 USCSection 2551

• Purpose. This provision authorizesappropriated funds to be used to transportUSG-procured humanitarian reliefsupplies and for other authorizedhumanitarian purposes.

• Procedures. To the extent that funds areauthorized and appropriated forhumanitarian assistance purposes, DODfunds can be used for military orcommercial transportation. Currently,the DSCA manages these funds, whichare contained in the OverseasHumanitarian, Disaster and Civil AidAccount. Requests should be forwardedby the supported combatant commanderto the Joint Staff for review and approvalby DSCA and ASD(SO/LIC).

• Examples. Humanitarian assistancefunds were provided to the US EuropeanCommand for combined joint task forcePROVIDE COMFORT in 1993-1994 totransport food, staples, and sheltermaterials to the refugees in Northern Iraq.

g. Transportation of HumanitarianAssistance, 10 USC Section 402

• Purpose. This legal authority providesfor the military transportation of donatedhumanitarian relief supplies, subject tocertain conditions. Assistance under thissection is commonly referred to as theDenton Program and is jointlyadministered by USAID, DOS, and theDepartment of Defense.

• Procedures. The Department of Defenseis authorized to transport donatedsupplies from NGOs and PVOs intendedfor humanitarian assistance purposes.This transportation is authorized withoutcharge but on a space-available basis.Before supplies can be transported, theDepartment of Defense must determinethat the transportation of the supplies isconsistent with US foreign policy; thesupplies to be transported are suitable forhumanitarian purposes and in usablecondition; a legitimate humanitarian needexists for the supplies by the people forwhom the supplies are intended; thesupplies will be used for humanitarianpurposes; and adequate arrangementshave been made for the distribution ofthe supplies in the destination country bythe NGO or PVO. DSCA manages theprogram and the funds. Requests shouldbe forwarded by the supported combatantcommander to the Joint Staff for approvalby DSCA.

• Examples. This authority was invokedto transport food and clothing to Rwandafor NGOs such as World Relief in 1994.

h. Humanitarian and Civic Assistance(HCA) Provided in Conjunction withMilitary Operations, 10 USC Section 401

• Purpose. This provision of law allowsthe Service components to carry outhumanitarian and civic assistanceactivities abroad. Projects must promote

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US and HN security interests as well asenhance readiness skills of the US forcesthat participate. These projects are tobe conducted in conjunction withauthorized military operations and cancomplement, but not duplicate, otherassistance provided by the USG. HCAis confined to five general areas whichare defined by statute: medical, dental,and veterinary care; construction ofrudimentary surface transportation; welldrilling and construction of basicsanitation facilities; rudimentaryconstruction of public facilities; anddetection and clearance of landmines,including education, training, andtechnical assistance. HCA projectscannot benefit any individual ororganization engaged in military orparamilitary activity.

• Procedures. HCA projects must benominated by the HN government andmust be supported by the US Embassy,DOS, USAID, and the Department ofDefense. Section 401 activities arefunded from the Services’ operations andmaintenance accounts. The ASD(SO/LIC) provides oversight within theDepartment of Defense.

• Examples. HCA projects have includedsuch activities as rudimentaryconstruction and repair of publicfacilities, drilling wells for water, and theprovision of medical, dental, andveterinary care in rural areas to suchcountries as Ethiopia, Panama, Haiti, andBangladesh.

i. Emergency and ExtraordinaryExpense Authority (E&E), 10 USC Section127

• Purpose. E&E provides SecDef andService Secretaries authority to expendO&M funds without regard tocontracting and purpose limitations. This

authority is provided annually in theO&M appropriations. Each Secretaryhas different amounts, depending onpreviously established needs. E&E fundsare funds that may be used to supportcertain unique requirements ofoperations. The DOD and Serviceregulations that cover these funds definethe types of acceptable expenditures.

• Procedures. Very small amounts of thisauthority exist. The combatantcommander can request the Servicecomponent to provide this E&E. If E&Eis available and no other funds areappropriate to resource an essentialactivity, then normally the combatantcommander’s Service component willrequest approval of the Service Secretarythrough the Service HQ. This authoritydoesn’t provide cash or foreign currencyto conduct an activity. Rather, E&Eprovides the capability to obligateService funds for an activity normally notauthorized for O&M funding. If foreigncurrency is required to perform theactivity, a Service finance office must benotified to obtain the appropriatecurrency.

• Examples. This authority was used to“buy-back” weapons in Panama duringOperation JUST CAUSE. It was alsocited initially for purchasing weapons inHaiti during Operation UPHOLDDEMOCRACY. Standing authorizationsinclude special operations, criminalinvestigation purposes, and intelligencecontingencies. These requests must haveapproval on a case-by-case basis.

j. Acquisition and Cross-ServicingAgreement (ACSA), 10 USC Section 2342

• Purpose. This agreement’s purpose isto acquire or transfer logistic supportoutside the Arms Export Control Act(AECA) channels. This is a limited,

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DOD-specific authority to both acquirelogistic support without resort tocommercial contracting procedures andto transfer logistic support outside ofAECA channels. Under this authority,the Department of Defense, afterconsultation with DOS, may enter intoagreements with NATO countries,NATO subsidiary bodies, otherdesignated eligible countries, the UN,and other international regionalorganizations of which the United Statesis a member that provide for thereciprocal provision of logistic support,supplies, and services. This authority islimited to the purchase and sale oflogistic support and does not extend tomajor end items of equipment (e.g.,trucks, weapons systems). As a resultof the FY 1995 National DefenseAuthorization Act changes, theDepartment of Defense is authorizedgeneral purpose vehicles and othernonlethal items of military equipmentwhich are not designated as significantlymilitary equipment on the US munitionslist. Examples include vehicles,communications equipment, andtraining aids.

• Procedures. After consulting with DOS,the Department of Defense may enterinto agreements with NATO countries,NATO subsidiary bodies, and otherdesignated eligible countries forreciprocal logistic support, supplies, andservices. However, major end items areexcluded. Acquisitions and transfers areon a PIC, RIK, or EVE basis. RIK orEVE must be accomplished within 12months after the date of delivery of thelogistic support, supplies, or services.After 12 months, reimbursement must beon a cash basis.

• Examples. This authority was usedextensively in the early phase of Somaliaoperations. This authority also provided

logistic support, supplies, and servicesto the French-led coalition peaceenfo rcement e f fo r t Opera t ionTURQUOISE in Rwanda. This authorityhas also been used in peace operationsconducted by member state coalitionsunder UN auspices (for example, theUnified Task Force phase of the Somaliaoperations with Canadian and Australianforces). ACSAs have been used inBosnia and Kosovo.

k. Foreign Disaster Assistance, 10 USCSection 404

• Purpose. This section provides thePresident with the authority to direct theDepartment of Defense to conductforeign disaster assistance whennecessary to prevent loss of life. Thissection enables the Department ofDefense to utilize its unique airlift andrapid deployment capabilities to addresshumanitarian problems caused by naturalor manmade disasters worldwide.Assistance provided under this sectionmay include transportation, supplies,services, and equipment.

• Procedures. This legal authorityprovides for the military transportationof donated humanitarian relief subject tocertain conditions. Assistance under thissection is commonly referred to as TheDenton Program and is jointlyadministered by USAID, DOS, and theDepartment of Defense. FY 1995 wasthe first year the Department of Defensehad specific authority to conductworldwide disaster relief activities.

• Examples. This authority was cited top r o v i d e b l a n k e t s , w a t e r , a n dtransportation to the earthquake-strickenpeople in Japan.

l. Excess Nonlethal Defense Supplies, 10USC Section 2547

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• Purpose. This makes nonlethal excessDOD supplies available for humanitarianrelief purposes.

• Procedures. The Department of Defenseshall transfer to the State Departmentnonlethal excess supplies for distribution.

• Examples. This authority could be citedto transfer medical supplies, meals readyto eat, and equipment in support of ahumanitarian relief effort.

3. Other Authorities

a. Drawdown Authorities

• There are three drawdown authoritiescontained within the FAA of 1961. Allt h r e e r e q u i r e a P r e s i d e n t i a lDetermination and some form ofnotification to Congress. They areavailable for use within each fiscal yearup to a specified dollar amount. Thecalculation of costs for all goods andservices provided under these authorities,and reported to Congress, is on the basisof “full cost to the government.” Thecalculation of costs includes the full costof all military and civilian laborassociated with the drawdown. Althoughthese authorities are limited to existingdefense stocks, a reduction of items frominventory below the reorder point maycause a new procurement action toreplenish stocks. Such authoritygenerally does not have funding attached.Drawdown authority does not draw adistinction between stocks that are at theretail or wholesale level.

• This authority provides defense articles,equipment, military education, andtraining. It can also provide DODservices. Examples include militarytransportation, military sealift, andmilitary personnel offloading ships. Thisauthority cannot be used for new

contracting or procurement. It can becited by the Department of Defense tocontract for commercial air- or sealift ifmore economical. However, it cannot beused to provide housing and food undera logistic civil augmentation programcontract to members of a foreign countryor international organization.

• When drawdown authority is granted,there are very specific statutes thatrequire the President to report toCongress the extent that stocks andservices are drawndown. The DODagency responsible for reporting thisinformation is the DSCA. As such,DSCA is the DOD central point ofcontact for accounting how muchdrawdown authority has been used andestablishes the reporting requirements forthis type of support.

• Normally using this authority, DSCAmay direct the provision of supplies intwo ways. First, DSCA may assemble apush package to be sent to the appropriateforeign contingent. Second, DSCA maydirect, through an execute order, thatcertain stocks be provided to a specificforeign contingent.

•• Drawdown for an UnforeseenEmergency, FAA Section 506(a)(1), 22USC Section 2318 (a)(1). (1) Purpose.Under section 506(a)(1) of the FAA,military assistance (defense articles andservices) can be furnished to a foreigncountry or international organization ona nonreimbursable basis due to anunforeseen emergency. It requires aPresidential Determination and report inadvance to Congress that an unforeseenemergency exists that cannot be metunder the AECA or any other law.Peacekeeping is a recognized purpose foruse of this drawdown authority. (2)Procedures. Normally, requests areinitiated by the US embassy in the

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concerned country and forwarded to theDepartment of Defense. The combatantcommander may also identify needs tothe Plans Directorate (J-5) for forwardingto DOS or National Security Council.Once the concept is approved, the DOSinitiates documentation for the Presidentto approve and to notify Congress. Oncedrawdown authority has beenapproved, DSCA manages the programfor the Department of Defense andprovides detailed accounting procedures.(3) Examples. This authority wasinvoked during Operation UPHOLDDEMOCRACY to provide vehicles andpersonal equipment to many of thecountries providing soldiers for themultinational force in Haiti. It was alsoinvoked to provide equipment to theDominican Republic for securing theborder with Haiti prior to USintervention. Draw down authority wasused in Bosnia.

•• Drawdown for Refugee Assistance,FAA Section 506(a)(2), 22 USC Section2318 (a)(2). (1) Purpose. The Presidentcan drawdown DOD stocks forcounterdrug, disaster relief, and refugee andmigrant assistance purposes. This authorityprovides articles, equipment, and training.It can also provide DOD services.Examples include military transportation,military sealift, and military personneloffloading ships. This authority can be usedfor new contracting or procurement or itcan be cited by the Department of Defenseto contract for commercial air- or sealift ifmore economical. However, it cannot beused to provide housing and food bycontract. Under this provision, thePresident may authorize the drawdown ofarticles and services for disaster relief andcounterdrug purposes and for refugee andmigrant assistance under the Migration andRefugee Assistance Act of 1962. It requiresa Presidential Determination and report,in advance, to Congress that it is in the

national interest to execute the drawdown.(2) Procedures. The same as Drawdownfor an Unforeseen Emergency. (3)Examples. The President invoked thisauthority to provide airlift fornongovernmental humanitarian reliefagencies for Rwanda. It was also used topay for military air- and sealift of DODwater purification equipment, generators,and other related equipment. This authoritywas used extensively ($75 million) forHurricane Mitch disaster relief efforts inCentral America.

•• Drawdown for Peacekeeping FAASection 552(c), 22 USC Section 2348a.(1) Purpose. The President can drawdowncommodities and services from any USagency for unforeseen emergencies tosupport peacekeeping activities. Thisauthority can be used for new contractingor procurement it can be cited by theDepartment of Defense to contract forcommercial air- or sealift if moreeconomical. However, it cannot be used toprovide housing and food. It requires aPresidential Determination and report, inadvance, to Congress that an unforeseenemergency exists that requires theimmediate provision of assistance. (2)Procedures. The same as Drawdown foran Unforeseen Emergency. (3) Examples.This authority was invoked to providevehicles to the Palestinians in support ofpeace operations with Israel and wasconsidered for helicopter support to themultinational observers in the Peru-Ecuador border dispute. This was also theauthority to provide 25 million dollars insupport to the reconstitution of the Somaliapolice force.

b. Foreign Military Sales Arms ExportControl Act, 22 USC Section 2761

• Purpose. FMS is used to sell defensearticles and services to the UN andforeign governments. Foreign

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governments and the UN may enter intoa standard FMS contract with theDepartment of Defense (LOA) for thesale of defense articles and services. Thisis the primary authority to lease defensearticles to third world countries andinternational organizations. This was theauthority used to lease armored personnelcarriers (APCs), tanks, and helicoptersto the UN for use in Somalia and to leaseAPCs to the UN for use by the Ghanianbattalion in UN Assistance Mission inRwanda (UNAMIR). Sales of relatedequipment, repair parts, and airliftservices were done under the 607Agreement (See paragraph 3g). FMS isgenerally regarded as the least preferableauthority because of inflexible contractterms, higher costs, and lengthyprocessing time.

• Procedures. The UN or another countrycan enter into an FMS contract with theDepartment of Defense through an LOA.Ordinarily, the country pays theDepartment of Defense in advance forall costs plus an administrative surcharge.FMS as well as ACSA are the onlyauthorities available to the Departmentof Defense to lease defense articles.Leases are processed as standard FMScases and are generally on a reimbursablebasis. However, leases of defense articlesmay be made on a nonreimbursable basisif the article has passed three-quarters ofits normal service life.

• Examples. This authority was used tolease 40 APCs to the UN for use by theGhanaian battalion as part of UNAMIR.

c. Excess Defense Articles (EDA), 22USC Sections 2321j

• Purpose of Section 2321j. EDA is usedto sell or grant articles no longer neededby the Armed Forces of the United Statesto eligible countries. It authorizes lethal

and nonlethal support on a priority basisto countries on the southern andsoutheastern flank of NATO. Defensearticles no longer needed by the ArmedForces of the United States may be madeavailable for sale under FMS proceduresor on a grant (no cost) basis to eligiblecountries. The purpose is to modernizedefense capabilities of eligible NATOcountries on the southern andsoutheastern flank of NATO and to majornon-NATO allies on these flanks.Eligible countries include Greece,Portugal, Turkey, Israel, Egypt, Morocco,Pakistan, Senegal, and Oman.

d. Economic Support Fund (ESF), FAASection 531, 22 USC 2346

• Purpose. The purpose of ESF is tofurnish assistance to countries based onspecial economic, political, or securityinterests of the United States. Most ESFassistance is provided as cash granttransfers to help other countries improvetheir balance of payments. Theremainder is spent on commodity supportto import US goods for developmentprojects. ESF shall be available foreconomic programs only and may not beused for military or paramilitarypurposes.

• Procedures. The President is authorizedto furnish assistance to countries andorganizations, on such terms andconditions as may be determined, in orderto promote economic or political stability.DOS usually provides funds directly tothe countries involved. However, DOScan provide these funds to theDepartment of Defense through anagreement pursuant to the FAA, Section632. The agreement is developed byUSD(C) and their counterparts at DOS.If the combatant commander determinesa need for these funds, the Joint Staff J-5 may be contacted.

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• Examples. This authority was used forSomalia police salaries. In Haiti, it wasused to distribute miscellaneouspaymen ts t o members o f t hemultinational force and for specialtransportation requirements.

e. Peacekeeping Operations (PKO)Fund, FAA Section 551, 22 USC 2348

• Purpose. PKO Fund is used to furnishassistance to friendly countries andinternational organizations pursuant tothe national interests of the United States.The President is authorized to furnishassistance to countries and organizations,on such terms and conditions as mayb e de te rm ined , f o r PKO andprograms. Such assistance may includereimbursement to the Department ofDefense for expenses incurred pursuantto Section 7 of the United NationsParticipation Act (See paragraph 3h).

• Procedures. DOS usually providesfunds directly to the countries involved.However, DOS can provide these fundsto the Department of Defense through anagreement pursuant to FAA Section 632.The agreement is developed by USD(C)and their counterparts at DOS. If thesupported combatant commanderdetermines a need for these funds, theJoint Staff J-5 may be contacted.Preferably, the Service funding theoperation for the combatant commanderwill contact USD(C).

• Examples. This authority was used byDOS to pay lodging and meals for non-US members of the Military ObserverGroup on the border between Haiti andthe Dominican Republic. It was also usedto pay for equipment and supplies in Haitithat couldn’t be drawndown fromexisting DOD stocks. (See FAAS506[a][1].)

f. International Military Education andTraining (IMET), FAA Section 541-545, 22USC Sections 2347-2347e

• Purpose. IMET provides militaryeducation and training to military andrelated civilian personnel of foreigncountries.

• Procedures. DOS obtains a request fortraining from the HN government andpasses the request to the Department ofDefense. If the combatant commanderdesires to provide military education ortraining to countries in the area ofresponsibility, this would usually bearranged through the country team at theembassy. CINCs may also submit theproposal to the Joint Staff J-5 for reviewby the interagency. Once approved byDOS, the Department of Defense,through DSCA, will attempt to providethe services directly. If the Departmentof Defense is unable, then a securityassistance tasking can be prepared, citingIMET funds. DSCA will then contractfor the required support.

• Examples. Many foreign defense andnon-defense establishments have beentrained through IMET. Through theirattendance at IMET-sponsored training,these personnel receive exposure to USvalues, regard for human rights,democratic institutions, and the value ofa professional military under civiliancontrol.

g. Reimbursable Authority, FAASection 607, 22 USC Section 2357

• Purpose. Section 607 of the FAAauthorizes any federal agency to furnishcommodities and services to friendlycountries, the American Red Cross,voluntary non-profit relief agencies, andinternational organizations, when the

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President determines that suchassistance furthers the purposes of Part1 of the FAA. Support may only beprovided on a reimbursable or advance-of-funds basis.

• Procedures

•• DOS obtains requests forcommodities and services from the UNas well as other nations. After review,these requests may be forwarded throughDOD Assistant Secretary of Defense(Strategy and Requirements) to theDSCA for execution. Once DSCAapproves shipment of the commodities,DFAS will submit a billing statement tothe UN or other organization, which willthen reimburse the Service. Thedetermination required by the statutemust be made each time a new operationwill be supported under this authority.The authority for making thisdetermination has been delegated to theSecretary of State and to theAdministrator of USAID.

•• Support of each new operationrequires the negotiation and conclusionof a separate 607 agreement. Section 607agreements set the overall terms andconditions that govern the provision ofassistance and have been used in UNoperations in Somalia, the FormerRepublic of Yugoslavia, Rwanda, andHaiti. The UN LOA procedure is theordering mechanism specified in thoseagreements.

• Reimbursements. Under Section 607,assistance may only be furnished on anadvance-of-funds or reimbursable basis.Reimbursement cannot be waived.Reimbursements received may bedeposited by the Service providing theassistance back into the appropriationoriginally used (or, if received within 180days of the close of the fiscal year in

which the assistance was furnished, intothe current account concerned). Theseamounts then remain available for thepurposes for which they wereappropriated. Reimbursements receivedafter this 180-day period cannot beretained by the Department of Defenseand must be deposited in themiscellaneous receipts account of thegeneral treasury.

• Examples. This authority was used bythe Department of Defense to support UNoperations, the Organization of AfricanUnity, and friendly third world countriesparticipating in peacekeeping andhumanitarian operations in Rwanda. Itwas also cited for Operation SAFEBORDER when Peru and Ecuadoragreed to reimburse the United States forits costs of providing the observer groupto monitor their common border.

h. Section 7 of the United NationsParticipation Act (UNPA), 22 USC Section287d-1

• Purpose. This section authorizes supportto UN PKO. This authority permits theDepartment of Defense to contributepersonnel, nonlethal equipment, supplies,and services to UN operations.

• Procedures. The UN will issue a LOAto the US Mission to the UN in New York(USUN). USUN forwards the LOA tothe State Department, where it isreviewed and transmitted to theDepartment of Defense with arecommendation as to approval andfunding. Within the Department ofDefense, the USDP coordinates the UNrequest. Upon approval, the Departmentof Defense will direct a Service toimplement the LOA.

• Reimbursements. Reimbursement isordinarily required from the UN.

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However, reimbursement may be waivedwhen the President finds exceptionalcircumstances or that such waiver is inthe national interest. DOS also has theauthority to waive reimbursement afterconsultation with the Department ofDefense.

• Examples. DOD support to UNoperations in Cambodia, Angola, andWestern Sahara.

i. Sections 628 and 630 of the FAA, 22USC Sections 2388 and 2390

• Purpose. Upon determination of thePresident that it is consistent with thepurposes of the FAA, Section 628authorizes the head of an agency to detailor assign any officer or employee of thatagency to an international organizationto serve on the agency international staffor “to render any technical, scientific, orprofessional advice or service” to suchorganization. There is no limit on thenumber of personnel that may be detailedunder this authority. This authority hasbeen interpreted broadly and has beenused as authority to detail US military topeace enforcement operations (e.g., USlogisticians in Somalia).

• Reimbursements. Reimbursements forSection 628 details are governed bySection 630 of the FAA. US policy isthat the Department of Defense will bereimbursed the incremental costsassociated with the participation of theUS military in a UN operation.

j. The Economy Act, 31 USC 1535. Thisact provides general authority for federalinteragency transactions. It authorizesinteragency transactions when no other statutepermits the providing agency to render therequested service. The act requires fullreimbursement to the providing agency,including indirect costs. It authorizes the

provision of defense articles and servicesindirectly to third world countries, the UN,and international relief organizations on areimbursable basis. Under this approach, theDOS or other Federal agencies submit afunded interagency request for support to theDepartment of Defense. Until recently, thishas been the primary authority to providedisaster assistance to third world countries.

k. Stafford Disaster Relief andEmergency Assistance Act, 42 USC Section5121

• Purpose. The Stafford Act provides foran orderly and continuing means ofassistance by the Federal government tostate and local governments in carryingout their responsibilities to alleviatedisaster-related suffering and damage.

• Procedures. Upon the request of theaffected state’s governor, the Presidentmay declare an emergency or majordisaster, thereby permitting mobilizationof Federal assistance under the Act. TheStafford Act requires reimbursement tothe Department of Defense for theincremental costs of providing support.Approval authority and reportingrequirements vary depending on theduration and type of support requested.The President may direct any agency ofthe Federal government to undertakemissions and tasks on either areimbursable or nonreimbursable basis.

4. Agreements

a. United Nations Letter of Assist (LOA)

• A UN LOA is a document issued by theUN to a contributing governmentauthorizing that government to providegoods or services to UN peacekeepingforces. An LOA typically detailsspecifically what is to be provided by thecontributing government and establishes

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a funding limit that cannot be exceeded.General support LOAs can be negotiatedwith the UN (if such LOAs areadvantageous to both parties) to covermore generic categories such assubsistence, fuel, sustainment, and spareparts. More than one item or service canbe included on an LOA. LOAs areconsidered by the UN to be contractingdocuments and must be signed and issuedby the UN Director, Field OperationsDivision. The LOA is not considered afunded order, and the UN does notnormally provide an advance of funds forthe value of the LOA.

• The UN will reimburse contributingcountries for the costs of their activitiesin accordance with UN standardprocedures covered in the “UnitedNations Guidelines to ContributingGovernments” and specific and generalLOAs. The UN should approve allelements of national contributions andthe extent of reimbursement prior to anactual deployment, if possible.Therefore, activities undertaken, troopsdeployed, or costs incurred for items andservices rendered which are not agreedto in advance by the UN will not normallybe reimbursed by the UN. Onlyexpenditures in support of an operationapproved by the Security Council andauthorized by the General Assembly asa legitimate charge to the UN are eligiblefor reimbursement.

b. Memoranda of Agreement. MOAs areagreements between countries or eligibleorganizations that delineate responsibilitiesamong the participants. Among theseresponsibilities are the participants’ financialliabilities for support. These agreements

define the specific mechanisms required forreimbursement of costs. An example of theuse of this authority is when coalition partnerscooperate in a military operation. In this case,support can be provided to foreign forces withwhich the United States has an MOA. MOAsbetween the Department of Defense and thedefense ministries of other nations or betweenthe Department of Defense and internationalorganizations must be based on specific legalauthority and negotiated in accordance withproper procedures.

c. 632 Agreements (Department of StateFunds)

• Purpose. DOS and the Department ofDefense may negotiate agreementswhere the Department of Defense agreesto initially fund requirements that arelegally a DOS responsibility. Theseagreements are called 632 Agreements.They are generally negotiated for aspecific purpose with a specific amountof funds attached. Once these agreementsare signed, they provide the legalauthority for the Department of Defenseto incur obligations on a reimbursablebasis for the purpose intended. Thedocumentation will be consolidated andsent to DOS for reimbursement.

• Examples. Examples of the use of thisagreement by the Department of Defenseand the reimbursement by DOS includethe paying of stipend payments to foreignmilitary forces, providing support toforeign military forces not covered under506 (a)(1) Drawdown Authority, fundsto cover emergency medical evacuationof foreign soldiers to US medicalfacilities, and providing special dietaryrequirements for foreign contingents.

APPENDIX FFINANCIAL SUPPORT TO MILITARY OPERATIONS IN A

MULTINATIONAL ENVIRONMENT

F-1

1. General

a. Multinational operations is a collectiveterm describing military actions conducted byforces of two or more nations, typicallyorganized within the structure of a coalitionor alliance. An alliance is a result of formalagreements (i.e., treaties) between two or morenations to meet broad, long-term objectives(e.g., NATO). A coalition is an ad hocarrangement between two or more nations forcommon action (e.g., Operation DESERTSTORM). Financial considerations for ad hocarrangements are similar to those for UNoperations as stated in paragraph two. Sincearrangements will differ based on need,applicable technical changes will be necessaryto properly support the operation.

b. Military operations such as PKO andhumanitarian assistance have evolvedalongside the traditional forms of militaryaction exemplified by deterrence andwarfighting. International organizations andagencies will perform an increasing role inthe management of future crises andcontingency operations. The level of USparticipation in these operations is dependenton the objectives agreed to at the nationallevel. Nations must also agree separately orthrough cooperative agreements to theprovision of FM resources or specific supportrequirements for their forces. Financialmanagers must ensure that available supportassets meet not only US standards, but alsothose of supported multinational forces. FMsupport, however, remains a nationalresponsibility for multinational operations.

2. UN Operations

Specific FM considerations for UNoperations are listed below.

a. A variety of missions may be conductedin conjunction with the UN. Section 7 of theUNPA authorizes support to UN PKO. Thisauthority allows the Department of Defenseto contribute personnel, nonlethal equipment,supplies and services to UN operations.Support provided to the UN under Section 7UNPA authority does not require thenegotiation of an agreement. However, thereare formal agreements, such as Section 607,628 agreements, and UN LOAs, establishedin most cases to facilitate reimbursement forservices provided.

b. Any support provided to UN forces mustbe preapproved by a UN official authorizedto commit funds. This will normally be thechief administrative officer or the chiefprocurement officer. Therefore, activitiesundertaken, troops deployed, or costs incurredfor items which are not agreed to in advanceby the UN, as identified and detailed in theGuidelines, Aides Memoire, Notes Verbal orspecific or general LOAs, will normally notbe reimbursed by the UN. Financialresponsibilities will normally be included aspart of the agreement between the contributingcountries and the UN and will include thedetails of the financial responsibilities of eachparty. The US position is normally negotiatedby the Department of Defense in coordinationwith DOS. Close coordination with UNofficials throughout the operation shouldensure proper reimbursement for all UN-authorized expenditures.

c. When participating with the UN, thereare two types of documents that are critical toFM. The first are those standing agreementsthat are in place related to contributing countryparticipation in a UN operation. Thesedocuments are general in nature and provideguidelines on what the UN is willing to pay

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for without any further, specificallynegotiated, agreements. An understanding ofthese documents, early in an operation, isessential to ensure proper reimbursement forUS participation in a UN operation. Listedbelow are some examples of the types ofsupport arrangements listed in the standingUN procedures.

• Predeployment Actions. Preparation ofpersonnel and equipment for deploymentis the responsibility of the contributingcountry and includes all preparation costsinvolved to get the personnel orequipment to the point of embarkation.Billing the UN for reimbursement ofthese expenses will be based on advancenegotiations with the UN.

• Deployment and RedeploymentActions. Transportation to and from thearea of operation normally will be by airor sealift. The UN can fund alldeployments and redeployments. Theseactivities may be organized by thecontributing government, but thearrangements must be agreed to inadvance by the UN. All transportationto be provided by the contributingcountry must be coordinated andapproved by the UN. If reimbursementis requested, it will be made only up tothe amount it would have cost the UN toaccomplish the move.

• Self-Sufficiency Period. Eachcontingent force must be self-sufficientin theater until UN operations and controlare sufficiently established to providesustainment. Normal and agreed-to costsincurred during the self-sustainmentperiod will be reimbursed by the UN. Alldeployed military units should be self-sufficient in rations, water, andpetroleum, oils, and lubricants (POL) fora minimum of 30 days, and other classesof supplies for a minimum of the first 60days after deployment.

d. The other method the UN uses to requestsupport is LOAs. A UN LOA is a document,issued by the UN to a contributinggovernment, authorizing that government toprovide goods or services to the UN. An LOAdetails specifically what is to be provided bythe contributing government and establishesa funding limit that cannot be exceeded forthat specific LOA. General support LOAscan be negotiated with the UN, if such LOAsare advantageous to both parties, to covermore generic categories such as subsistence,POL, sustainment, and repair parts. LOAsare considered by the UN to be contractingdocuments and must be signed and issued byan authorized UN official.

e. The approved LOA is issued by the UNto the USUN, where it is acted on by theMilitary Advisor. The Office of the MilitaryAdvisor determines the appropriate USagency to receive the request. From theDepartment of Defense, all requests shouldbe forwarded to USDP for approval andaction. The USDP will determine theappropriate organization and provide a copyof the LOA to that organization and DFAS.DFAS is responsible for maintaining a statusof all active LOAs.

f. The LOA is not considered a fundedorder, and the UN does not ordinarily providean advance of funds for the value of therequest. Therefore, an LOA does not provideto a Service any additional obligationauthority to accomplish the order. The Servicemust accomplish the requirement usingexisting O&M funds or other appropriatedfunds and prepare an SF 1080 bill for the costof the goods or services provided, referencingthe appropriate LOA.

g. UN Personnel Reporting. The UNreimburses participating countries forpersonnel provided. The UN pays providingcountries a basic monthly rate per person forpay and allowances plus a usage factor forclothing and equipment. The UN

F-3

Financial Support to Military Operations in a Multinational Environment

reimbursement rate to providing nations in1997 was $988 per soldier per month, plus ausage factor per soldier and a supplementarypayment for specialists.

3. NATO Operations

Specific FM considerations for NATOoperations are listed below.

a. Background. NATO is an alliance of19 member nations who have entered into amutual defense treaty. Under Article V of theNorth Atlantic Treaty, an attack upon theterritorial integrity of a member state is to beconsidered an attack on all member states.While mutual defense remains the primarymission of the Alliance, NATO has recentlyexpanded its sphere of activities to includepeace support missions outside the territorialboundaries of the allied nations. Such non-Article V, or “out-of-area,” operations maybe undertaken upon the request of the UN withthe unanimous consensus of all member states.

b. NATO Funding Eligibility. NATOconducts missions on the basis of force andcapability contributions from its memberstates. Unlike the UN, it does not providereimbursement for peacekeeping forces or inany other way underwrite the costs of nationalparticipation. As a result, NATO operatingbudgets are small in relation to those ofnational forces deploying in support of anoperation. NATO funding is generallyrestricted to establishment and support of theNATO HQ in theater. In exceptionalcircumstances, the NATO nations may fundtheater-wide projects which benefit both theNATO HQ and all nations with forces in-theater (e.g., theater communications systemsor certain engineering projects supportingmain supply routes or ports). The NATO HQmay establish a multinational logistics centerto coordinate this effort among the forces in-theater.

c. NATO Funding Sources. The supportof national forces in the theater is a nationalresponsibility and is funded through nationalsystems and budgets. In the exceptionalcircumstance that a category of expendituremight be considered eligible for NATOfunding, the requirement must be submittedthrough the NATO theater HQ for inclusionin the budgetary plans described above.NATO funds its command and controlstructure through two primary sources.

• The NATO Security Investment Programis generally used to support majorinvestments in operational infrastructure,such as construction or communicationssystems. Projects originate with theNATO theater HQ engineers and aresubsequently screened by the NATOchain of command prior to beingreviewed by the NATO InfrastructureCommittee at NATO HQ in Brussels.Funding is approved and provided on aproject-by-project basis and funds cannotbe transferred between projects.

• The NATO Military Budget is the normalsource of funding for O&M costs ofsupporting NATO HQ in the theater ofoperations. NATO theater HQ fundingrequirements are assembled by the theaterfinancial controller and consolidated intoan operational budget. This budget isscreened by the NATO chain ofcommand prior to submission to theMilitary Budget Committee, also locatedin Brussels. Funding is approved inaccordance with the proposedexpenditure plan; however there isgenerally some flexibility betweenbudgetary line items.

d. Centralized Contracts. To reducecompetition for resources in the theater, theNATO HQ may solicit and consolidatetheater-wide requirements in order to

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JP 1-06

negotiate basic ordering agreements with localvendors. Such agreements typically establishthe prices, ordering procedures, and paymentterms, but do not obligate NATO or the nationsto purchase specific quantities of goods orservices. While allied nations are generallyauthorized to utilize such contracts on the

same basis as the NATO HQ in-theater, theexistence of such agreements does notpreclude nations from negotiating their ownbilateral contracts. NATO will not financenational requirements; such contracts call fornations to make direct payment to vendorsfor goods and services they order.

APPENDIX GCONTINGENCY CONTRACTING

G-1

1. General

a. Providing support to a joint operationmay require contracting between foreigngovernments, commercial entities, NGOs, andPVOs. Contracting can be an effective forcemultiplier of combat service support fordeployed forces. Contingency contractingrequires an understanding of the legal aspects,funding issues, duties, and responsibilities ofprocurement personnel, their relationship withsupport staff, and requirements in deploymentpreparation. The ability to work with peoplewho have vastly different cultures,backgrounds, perspectives and, mostimportantly, business practices is anotheraspect of contingency contracting that willhave considerable impact on successfulsupport of a joint operation. Contingencycontracting officers continue to follow FederalAcquisition Regulation and Service-specificsupplemental guidance.

b. Local business practices, a less thanstable environment, and the contractor’s lackof knowledge of US payment and contractingprocedures may require contracting officersto arrange for immediate payment. Immediatepayment can be made through credit cards,the finance officer, or check. Payment forservices may be appropriate at the conclusionof each workday, workweek, or uponcompletion of each specified period ofperformance. In many cases, responsivenessof contractors is directly attributed to thetimeliness of the payment. Advance paymentsare the least preferred method of payment, andshould only be used on rare occasions whenit is in the best interest of the government.Recouping money or forcing a contractor toperform according to contract standardsthrough negotiation and litigation after anadvance payment may not get the missionaccomplished in a timely manner.

2. Host-Nation Support

a. It is essential to establish a link with theHNS teams and obtain cooperation from HNauthorities and personnel to enhance thecontracting officer’s ability to fulfill thecontingency contracting obligation. Contactwith local authorities and higher HQ will helpdetermine whether there is HNS available.Before deployment, it is useful to coordinatewith legal advisors, civil affairs units, and theDefense Intelligence Agency as possiblesources for identifying contractor informationin the area. A liaison officer should haveknowledge of the HN laws, regulations, andmilitary command structure and be able tocoordinate with the HN to initiate on-sitesurveys. The liaison officer for the area ofoperation can be located through the Rosterof Key Security Assistance PersonnelWorldwide, published by the DSCA.

b. Reconnaissance visits to proposeddeployment locations will identify whatsupport can be provided by the HN. Itemssuch as banking system stability,transportation capability, infrastructure, andvendor base should be investigated. It mustbe emphasized that any preliminary joint sitesurvey or reconnaissance visit is a militarylogistic liaison effort only and not forcontractual arrangements.

c. To facilitate the contracting process withthe HN, all requirements should be preparedin a consistent format. This reduces confusionand delays in later negotiations with the HN.

3. Planning

The contracting officer must have a basicunderstanding of legal authorities, fundingpractices, and duties of contingencycontracting. Advance planning and

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JP 1-06

preparation is critical to the success of thecontracting effort. In the event of adeployment, the HCA and senior contractingofficial (SCO) will specify organizationalrequirements tailored to the mission andlocation.

4. Deployment

a. Advance Team. The officer in chargeof the procurement function and a fieldcontracting officer should arrive with theadvance team to begin immediateprocurements. Depending on the mission,the advance team may include a financeofficer, resource manager, and a legal advisor.

b. Typical Organization Structure. TheSCO will arrive with a support staff ofcontracting and FM personnel to establishthe contracting organization within the first30 days to augment the initial deployment ofadvance team contracting officers.Contracting personnel will coordinate withagencies that will assist in the contractingfunction (e.g., legal advisors, RMs, and CA).The JFC will include contingency contractingofficers and contracting support personnelearly in the deployment flow.

5. Funding

a. Finance and ContractingRelationships. Contracting officers mustcoordinate with the finance and accountingofficers to ensure timely and accuratepayments for supplies and services.Regardless of the method of procurement (i.e.,credit card, purchase order-invoice voucher, SF44, blanket purchasing agreement, purchaseorder, or contract), contractors conductingoperations in an austere environment mayrequire immediate payments.

b. RM Support Relationships. Theappropriate resource manager will verify,through signature certification, theavailability of appropriate funds. Theresource manager and contracting officermust work closely together during any typeof contingency operation to ensure that fundsare appropriate, valid, and sufficient.

c. Funding Procedures. Accounting datais required on all contractual documents.

6. Contracting Officer WarrantLimitations

In most instances, contracting officer’swarrants are limited as to what they canprocure. The contingency contracting officerhas the mission to provide all services andsupplies necessary to sustain the operation.In most cases, the contracting officer will nothave the authority to contract for theprocurement or lease of real property orconstruction contracts. These specificengineering contracting functions are usuallydelegated to a contracting officer warrantedto support civil engineering missions requiredduring the operation.

7. Contract Close-Out

As the mission is concluding, thecontracting organization will begin thecontract close-out process. The regionalcontracting offices will close out contracts andprocurement actions and shift contractswithout outstanding deliveries to thecontracting HQ. A team of contractingpersonnel will remain in the area of operationsuntil contracting requirements cease and theongoing procurement activity is terminated.FM support must continue in order to processclaims and final payments of contracts.

APPENDIX HJOINT OPERATIONS ENTITLEMENTS AND PAY MATRIX

H-1

Figure H-1. Joint Operations Entitlements and Pay Matrix

JOINT OPERATIONS ENTITLEMENTS AND PAY MATRIXENTITLEMENT REFERENCE REMARKS

Basic Pay 37 USC S203, 204, 1009 Varies by grade.

Basic Allowance for Housing(BAH)

37 USC S403, 403a, 405bDODFMR 7a, Chapter 26

Reservists are authorized full BAHif called to active duty in supportof a contingency. All otherdeployments, non contingency, thereserve member must be called toactive duty for more than 140 daysto be entitled to full BAH. If thedeployment is less than 140 days,non contingency, then the memberis only entitled to the BAH-II rate.

Basic Allowance for Subsistence(BAS)

37 USC S402DODFMR 7a, Chapter 25

Enlisted members performing TDY(not associated with permanentchange of station travel), temporaryfield or afloat assignments of 180days or less, essential unit messingor group travel will retain the BASentitlement held at their permanentduty station.

Travel Options and/or Per Diem JFTR CINC determination of regularTDY, essential unit messing, orfield duty. Per diem and incidentalexpense payment may vary bylocation.

Hostile Fire Pay 37 USC S310DODFMR 7a, Chapter 10DODI 1340.9

Commander (lowest level ofcommand appropriate) issuesstatement detailing hostile fireand/or hostile mine explosionincident (identifying each memberentitled to the hostile fire pay), andsends certification to servicingfinancial support office, with copyto regional combatant commander.Death certificate or injury reportsuffices if it establishes cause ofdeath or injury was due to hostilefire and/or explosion of hostilemine in a foreign area.

Imminent Danger Pay (IDP) 37 USC S310DODFMR 7a, Chapter 10DODI 1340.9

Specific geographic area must bedesignated as IDP area. Effectiveupon approval by the Office of theSecretary of Defense.

Hardship Duty Pay -- Location 37 USC S305DODFMR 7a, Chapter 17DODI 1340.10

Paid to enlisted members only indesignated (foreign duty) areas.

Family Separation Allowance 37 USC S427DODFMR 7a, Chapter 27

Separation from dependents formore than 30 days.

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Appendix H

JP 1-06

Figure H-1. Joint Operations Entitlements and Pay Matrix (cont'd)

JOINT OPERATIONS ENTITLEMENTS AND PAY MATRIXENTITLEMENT REFERENCE REMARKS

Special Leave Accrual 10 USC SS704-704DODI 1327.5

Members can accrue a leavebalance of up to 90 days ifdeployed at least 120 days to IDParea or in direct support of missionas certi fied by the commander.

Combat Zone Tax Exclusion

Qualified Hazardous Duty AreaTax Exclusion

26 USC S112DODFMR 7a, Chapter 44

P.L. 104-177, 20 Mar 96DODFMR 7a, Chapter 44440102-440103

Full basic pay exempt for enlistedpersonnel and warrant officers.Commissioned officers exemptionis equal to the highest amountapplicable for enl isted personnel.Combat zone is designated byexecutive order. Qualifiedhazardous duty are has beendeclared for contingencyoperations in the formerYugoslavia by public law 104-177.

Sea Duty Pay 37 USC S305a Elig ibili ty varies by grade and seaduty time.

UN Entitlements, Leave, PerDiem, and/or Mission SubsistenceAllowance and Station Allowances

SecDef Memorandum, 27 Jan1994SecDef Memorandum, 1 Dec 1994JFTR, Vol 1, para U 4155 and U9302

US personnel may not acceptdirect compensation from the UNwhen serving in peacekeepingoperations. Special rules apply touse of UN leave.

Savings Deposit Program DODFMR, Volume 7A, Chapter 51 Amounts up to $10K can bedeposited at the rate of 10% perannum.

APPENDIX JREFERENCES

J-1

The development of JP 1-06 is based upon the following primary references.

1. Title 10, USC.

2. Title 22, USC.

3. Title 31, USC.

4. Title 32, USC.

5. Title 41, USC.

6. Public Law 97-255, “Federal Managers’ Financial Integrity Act.”

7. Public Law 100-461, “Foreign Operations, Export Financing, and Related ProgramAppropriation Act.”

8. Public Law 101-165, Title V, “Emergency Response Fund.”

9. Public Law 103-139, Sec 8131, “Emergency Response.”

10. Arms Export Control Act.

11. Foreign Assistance Act, 1961.

12. Foreign Assistance Act, Sec 506. “Special Authority Foreign Assistance Act,” Sec 607.“Furnishing of Services and Commodities.”

13. Foreign Assistance Act, Sec 632. “Allocation and Reimbursement Among Agencies.”

14. Chief Financial Officers Act of 1990.

15. Federal Financial Management Act of 1994.

16. Government Management Reform Act of 1994.

17. OMB Circular A-34, “Instructions on Budget Execution.”

18. DMRD 910, December 1991.

19. Joint Federal Travel Regulation.

20. Joint Plan for DOD Noncombatant Repatriation.

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JP 1-06

21. DOD Directive 1404.10, “Emergency-Essential DOD US Citizen Civilian Employees.”

22. DOD Directive 5100.1, “Functions of the Department of Defense and Its MajorComponents.”

23. DOD Directive 5100.3, “Support of the Headquarters of Unified, Specified, andSubordinate Joint Commands.”

24. DOD Directive 5105.38M, “Security Assistance Management Manual.”

25. DOD Directive 7200.1, “Administrative Control of Appropriations.”

26. DODFMR 7000.14-R, “Security Assistance Policy and Procedures,” Volume 4, 5, 7 ,10,11, 14, 15, 23.

27. DODFMR Volume 12 Chapter 23, “Contingency Operations.”

28. JP 1-01, “ Joint Doctrine Development System.”

29. JP 1-02, “DOD Dictionary of Military and Associated Terms.”

30. JP 3-0, “Doctrine for Joint Operations.”

31. JP 3-07, “Joint Doctrine for Military Operations Other Than War.”

32. JP 3-07.3, “Joint Tactics, Techniques, and Procedures for Peace Operations.”

33. JP 3-08, “Interagency Coordination During Joint Operations.”

34. JP 3-16, “Joint Doctrine for Multinational Operations.”

35. JP 5-0, “Doctrine for Planning Joint Operations.”

36. JP 5-00.2, “Joint Task Force Planning Guidance and Procedures.”

37. JP 5-03.1, “Joint Operation Planning and Execution System Vol I: (Planning Policiesand Procedures.)”

38. CJCS Instruction 3290.01, “Program for Enemy Prisoners of War, Retained Personnel,Civilian Internees, and Other Detained Personnel.”

39. CJCS Memorandum 3122.03, “Joint Operation Planning and Execution System VolumeII, (Planning Formats and Guidance).”

40. FM 14-100, “Financial Management Operations.”

41. FM 100-23, “Peace Operations.”

J-3

References

42. Army Regulation 27-20, “Claims.”

43. Army Regulation 190-8, “Enemy Prisoners of War-Administration, Employment andCompensation.”

44. Army Regulation 190-57, “Civilian Internees-Administration, Employment andCompensation.”

45. Air Force Instruction 10-213, “Comptroller Operations Under Emergency Conditions.”

46. Air Force Policy Directive 65-1, “Management of Financial Services.”

47. Air Force Instruction 65-601, Volume 1, “USAF Budget Guidance and Procedures.”

48. Air Force Pamphlet 65-110, “Deployed Agent Operations.”

49. Department of the Navy Manual NAVSO P-1000, “Financial Management PolicyManual.”

J-4

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Intentionally Blank

APPENDIX KADMINISTRATIVE INSTRUCTIONS

K-1

1. User Comments

Users in the field are highly encouraged to submit comments on this publication tothe United States Joint Forces Command Joint Warfighting Center, Attn: DoctrineDivision, Fenwick Road, Bldg 96, Fort Monroe, VA 23651-5000. These commentsshould address content (accuracy, usefulness, consistency, and organization), writing,and appearance.

2. Authorship

The lead agent for this publication is the US Joint Forces Command. The Joint Staffdoctrine sponsor for this publication is the Director for Force Structure, Resources, andAssessment (J-8).

3. Change Recommendations

a. Recommendations for urgent changes to this publication should be submitted:

TO: USCINCJFCOM NORFOLK VA//JW100//INFO: JOINT STAFF WASHINGTON DC//J7-JDD/J-8//

Routine changes should be submitted to the Director for Operational Plans andInteroperability (J-7), JDD, 7000 Joint Staff Pentagon, Washington, DC 20318-7000.

b. When a Joint Staff directorate submits a proposal to the Chairman of the JointChiefs of Staff that would change source document information reflected in thispublication, that directorate will include a proposed change to this publication as anenclosure to its proposal. The Military Services and other organizations are requestedto notify the Director, J-7, Joint Staff, when changes to source documents reflected inthis publication are initiated.

c. Record of Changes:

CHANGE COPY DATE OF DATE POSTEDNUMBER NUMBER CHANGE ENTERED BY REMARKS__________________________________________________________________________________________________________________________________________________________________________________________________________________

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4. Distribution

a. Additional copies of this publication can be obtained through Service publicationcenters.

b. Only approved pubs and test pubs are releasable outside the combatant commands,Services, and Joint Staff. Release of any classified joint publication to foreigngovernments or foreign nationals must be requested through the local embassy (DefenseAttaché Office) to DIA Foreign Liaison Office, PSS, Room 1A674, Pentagon,Washington, DC 20301-7400.

c. Additional copies should be obtained from the Military Service assignedadministrative support responsibility by DOD Directive 5100.3, 1 November 1988,“Support of the Headquarters of Unified, Specified, and Subordinate Joint Commands.”

By Military Services:

Army: US Army AG Publication Center SL1655 Woodson RoadAttn: Joint PublicationsSt. Louis, MO 63114-6181

Air Force: Air Force Publications Distribution Center2800 Eastern BoulevardBaltimore, MD 21220-2896

Navy: CO, Naval Inventory Control Point700 Robbins AvenueBldg 1, Customer ServicePhiladelphia, PA 19111-5099

Marine Corps: Marine Corps Logistics BaseAlbany, GA 31704-5000

Coast Guard: Coast Guard Headquarters, COMDT (G-OPD)2100 2nd Street, SWWashington, DC 20593-0001

d. Local reproduction is authorized and access to unclassified publications isunrestricted. However, access to and reproduction authorization for classified jointpublications must be in accordance with DOD Regulation 5200.1-R.

GLOSSARYPART I — ABBREVIATIONS AND ACRONYMS

GL-1

ACSA acquisition cross-Service agreementAECA Arms Export Control ActAIK assistance in kindAPC armored personnel carrierASD(SO/LIC) Assistant Secretary of Defense (Special Operations and Low

Intensity Conflict)

CA civil affairsCI civilian interneeCIF combatant commander (CINC) Initiative FundCINC commander in chiefCJTF commander, joint task forceCOA course of actionCRA Continuing Resolution AuthorityCVS commercial vendor services

DFAS Defense Finance and Accounting ServiceDFAS-DE Defense Finance and Accounting Service-DenverDMRD defense management resource decisionDOD Department of DefenseDODFMR Department of Defense Financial Management RegulationDOS Department of StateDSCA Defense Security Cooperative AgencyDSSR Department of State Standardized Regulation

E&E emergency and extraordinary expense authorityEA executive agentEDA Excess Defense ArticlesEFT electronic funds transferEPW enemy prisoner of warESF Economic Support FundEVE equal value exchange

FAA Foreign Assistance ActFM financial managementFMS foreign military salesFNS foreign nation supportFTCA Foreign Tort Claims Act

GAO General Accounting Office

HCA humanitarian and civic assistanceHN host nation

GL-2

Glossary

JP 1-06

HNS host-nation supportHQ headquarters

IMET international military education and training

J-1 Manpower and Personnel Directorate of a joint staffJ-2 Intelligence Directorate of a joint staffJ-4 Logistics Directorate of a joint staffJ-5 Plans Directorate of a joint staffJ-8 Director for Force Structure, Resource, and Assessment,

Joint StaffJFC joint force commanderJFTR Joint Federal Travel RegulationsJOA joint operations areaJP joint publicationJRCC joint reception coordination centerJTF joint task forceJTR Joint Travel Regulations

LDA limited depository accountLOA letter of assistLPSB Logistics Procurement Support Board

MILCON military constructionMOA memorandum of agreementMPC military payment certificatesMWR morale, welfare, and recreation

NATO North Atlantic Treaty OrganizationNCA National Command AuthoritiesNEO noncombatant evacuation operationNGO nongovernmental organization

O&M operation and maintenanceOMB Office of Management and BudgetOPLAN operation planOPORD operation orderOPTEMPO operating tempo

PA public affairsP,C,& H packing, crating, and handlingPIC payment in cashPKO peacekeeping operationsPOL petroleum, oils, and lubricantsPVO private voluntary organization

RIK replacement in kindRM resource management

GL-3

Glossary

SCO senior contracting officialSecDef Secretary of DefenseSF Standard FormSJA Staff Judge AdvocateSTANAG standardization agreement (NATO)

TCA traditional CINC activity

UN United NationsUNAMIR United Nations Assistance Mission in RwandaUNPA United Nations Participation ActUSAID US Agency for International DevelopmentUSC United States CodeUSD(C) Under Secretary of Defense (Comptroller)USDP Under Secretary of Defense for PolicyUSG United States GovernmentUSSOCOM United States Special Operations CommandUSUN United States Mission to the United Nations in New York

antideficiency violations. The incurring ofobligations or the making of expenditure(outlays) in excess of amounts available inappropriations or funds. (This term and itsdefinition are approved for inclusion in thenext edition of JP 1-02.)

baseline costs. Baseline costs are thecontinuing annual costs of militaryoperations funded by the operations andmaintenance and military persoonelappropriations. (This term and itsdefinition are approved for inclusion in thenext edition of JP 1-02.)

combatant commander. A commander inchief of one of the unified or specifiedcombatant commands established by thePresident. (JP 1-02)

component. 1. One of the subordinateorganizations that constitute a joint force.Normally a joint force is organized with acombination of Service and functionalcomponents. 2. In logistics, a part orcombination of parts having a specificfunction, which can be installed or replacedonly as an entity. (JP 1-02)

contingency contracting. Contractingperformed in support of a peacetimecontingency in an overseas location pursuantto the policies and procedures of the FederalAcquisition Regulatory System. (JP 1-02)

contracting officer. A US military officeror civilian employee who has a validappointment as a contracting officer underthe provisions of the Federal AcquisitionRegulation. The individual has theauthority to enter into and administercontracts and determinations and findingsabout such contracts. (This term and itsdefinition are approved for inclusion in thenext edition of JP 1-02.)

dislocated civilian. A broad term thatincludes a displaced person, an evacuee,an expellee, or a refugee. (JP 1-02)

executive agent. A term used in Departmentof Defense and Service regulations toindicate a delegation of authority by asuperior to a subordinate to act on behalfof the superior. An agreement betweenequals does not create an executive agent.For example, a Service cannot become aDepartment of Defense Executive Agent fora particular matter with simply theagreement of the other Services; suchauthority must be delegated by theSecretary of Defense. Designation asexecutive agent, in and of itself, confers noauthority. The exact nature and scope of theauthority delegated must be stated in thedocument designating the executive agent.An executive agent may be limited toproviding only administration and support orcoordinating common functions, or it maybe delegated authority, direction, and controlover specified resources for specified purposes.Also called EA. (JP 1-02.)

finance operations. The execution of the jointfinance mission to provide financial adviceand guidance, support of the procurementprocess, providing pay support, and providingdisbursing support. (This term and itsdefinition are approved for inclusion in thenext edition of JP 1-02.)

financial management. Financialmanagement encompasses the two coreprocesses of resource management andfinance operations. Also called FM.(This term and its definition areapproved for inclusion in the next editionof JP 1-02.)

foreign nation support. The identification,coordination, and acquisition of foreign

PART II — TERMS AND DEFINITIONS

GL-4 JP 1-06

nation resources such as material and laborto support US military forces andoperations. Also called FNS. (This termand its definition are provided forinformation and are proposed for inclusionin the next edition of JP 1-02 by JP 3-16.)

host nation. A nation that receives the forcesand/or supplies of allied nations and/orNATO organizations to be located on, tooperate in, or to transit through its territory.Also called HN. (JP 1-02)

host-nation support. Civil and/or militaryassistance rendered by a nation to foreignforces within its territory during peacetime,crisis or emergencies, or war based onagreements mutually concluded betweennations. Also called HNS. (JP 1-02)

humanitarian assistance. Programsconducted to relieve or reduce the resultsof natural or manmade disasters or otherendemic conditions such as human pain,disease, hunger, or privation that mightpresent a serious threat to life or that canresult in great damage to or loss of property.Humanitarian assistance provided by USforces is limited in scope and duration. Theassistance provide is designed tosupplement or complement the efforts ofthe host nation civil authorities or agenciesthat may have the primary responsibility forproviding humanitarian assistance. Alsocalled HA. (JP 1-02)

incremental costs. Costs which areadditional costs to the Serviceappropriations that would not have beenincurred absent support of the contingencyoperation. (This term and its definitionare approved for inclusion in the nextedition of JP 1-02.)

joint force commander. A general term appliedto a combatant commander, subunifiedcommander, or joint task force commanderauthorized to exercise combatant command

(command authority) or operational controlover a joint force. Also called JFC. See alsojoint force. (JP 1-02)

joint operations area. An area of land, sea,and airspace, defined by a geographiccombatant commander or subordinateunified commander, in which a joint forcecommander (normally a joint task forcecommander) conducts military operationsto accomplish a specific mission. Jointoperations areas are particularly usefulwhen operations are limited in scope andgeographic area or when operations are tobe conducted on the boundaries betweentheaters. Also called JOA. (JP 1-02)

joint task for ce. A joint force that isconstituted and so designated by theSecretary of Defense, a combatantcommander, a subunified commander, oran existing joint task force commander.Also called JTF. (JP 1-02)

letter of assist. A contractual documentissued by the United Nations (UN) to agovernment authorizing it to provide goodsor services to a peacekeeping operation; theUN agrees either to purchase the goods orservices or authorizes the government tosupply them subject to reimbursement bythe UN. A letter of assist typically detailsspecifically what is to be provided by thecontributing government and establishes afunding limit that cannot be exceeded. Alsocalled LOA. (This term and its definitionmodify the existing term and its definitionand are approved for inclusion in the nextedition of JP 1-02.)

military payment certificates. Aninstrument (scrip) denominated in USdollars that is used as the official mediumof exchange in US military operationsdesignated as military payment certificateareas. Also called MPC. (This term andits definition are approved for inclusion inthe next edition of JP 1-02.)

GL-5

Glossary

GL-6

Glossary

JP 1-06

multinational operations. A collective termto describe military actions conducted byforces of two or more nations, typicallyorganized within the structure of a coalitionor alliance. (JP 1-02)

nation assistance. Civil and/or militaryassistance rendered to a nation by foreignforces within that nation by foreign forceswithin that nation’s territory duringpeacetime, crises or emergencies, or war,based on agreements mutually concludedbetween nations. Nation assistanceprograms may include, but are not limitedto, security assistance, foreign internaldefense, other United States Code title 10(DOD) programs, and activities performedon a reimbursable basis by Federal agenciesor international organizations. (JP 1-02)

noncombatant evacuation operations.Operations directed by the Department ofState, the Department of Defense, orother appropriate authority wherebynoncombatants are evacuated from foreigncountries when their lives are endangeredby war, civil unrest, or natural disaster tosafe havens or to the United States. Alsocalled NEOs. (This term and its definitionmodify the existing term and its definitionand are approved for inclusion in the nextedition of JP 1-02.)

nongovernmental organizations.Transnational organizations of privatecitizens that maintain a consultativestatus with the Economic and SocialCouncil of the United Nations.Nongovernmental organizations may beprofessional associations, foundations,multinational businesses, or simplygroups with a common interest inhumanitarian assistance activities(development and relief).“Nongovernmental organizations” is aterm normally used by non-United Statesorganizations. Also called NGOs. (Thisterm and its definition modify the

existing term and its definition and areapproved for inclusion in the next editionof JP 1-02.)

offset costs. Costs for which funds havebeen appropriated but will not beobligated because of a contingencyoperation. (This term and its definitionare approved for inclusion in the nextedition of JP 1-02.)

operation. A military action or the carryingout of a strategic, tactical, service, training,or administrative military mission; theprocess of carrying on combat, includingmovement, supply, attack, defense andmaneuvers needed to gain the objectives ofany battle or campaign. (JP 1-02)

private voluntary organizations. Private,nonprofit humanitarian assistanceorganizations involved in development andrelief activities. Private voluntaryorganizations are normally United States-based. “Private voluntary organization” isoften used synonymously with the term“nongovernmental organizations.” Alsocalled PVOs. (This term and its definitionmodify the existing term and its definitionand are approved for inclusion in the nextedition of JP 1-02.)

resource management operations. Theexecution of the resource managementmission which includes providing adviceand guidance to the commander, developingcommand resource requirements,ident i fy ing sources o f fund ing,determining cost, acquiring funds,distributing and controlling funds, trackingcosts and obligations, cost capturing andreimbursement procedures, and establishinga management control process. (This termand its definition are approved for inclusionin the next edition of JP 1-02.)

solatium payments. Monetary compensationgiven to alleviate grief, suffering, and anxiety

GL-7

Glossary

resulting from injuries, and property orpersonal loss. (This term and its definitionare approved for inclusion in the next editionof JP 1-02.)

status-of-forces agreement. Anagreement which defines the legalposition of a visiting military forcedeployed in the territory of a friendlystate. Agreements delineating the statusof visiting military forces may bebilateral or multilateral. Provisionspertaining to the status of visiting forcesmay be set forth in a separate agreement,or they may form a part of a morecomprehensive agreement. Theseprovisions describe how the authoritiesof a visiting force may control membersof that force and the amenability of theforce or its members to the local law orto the authority of local officials. To theextent that agreements delineate mattersaffecting the relations between a militaryforce and civilian authorities andpopulation, they may be considered ascivil affairs agreements. Also calledSOFA. (JP 1-02)

supported commander. The commanderhaving primary responsibility for allaspects of a task assigned by the JointStrategic Capabilities Plan or other jointoperation planning authority. In thecontext of joint operation planning, thisterm refers to the commander who preparesoperation plans or operation orders inresponse to requirements of the Chairmanof the Joint Chiefs of Staff. (JP 1-02)

supporting commander. A commander whoprovides augmentation forces or other supportto a supported commander or who developsa supporting plan. Includes the designatedcombatant commands and Defense agenciesas appropriate. (JP 1-02)

unified command. A command with a broadcontinuing mission under a singlecommander and composed of significantassigned components of two or more MilitaryDepartments, and which is established andso designated by the President, through theSecretary of Defense with the advice andassistance of the Chairman of the Joint Chiefsof Staff. Also called unified combatantcommand. (JP 1-02)

GL-8

Glossary

JP 1-06

Intentionally Blank

Assess-ments/

Revision

CJCSApproval

TwoDrafts

ProgramDirective

ProjectProposal

J-7 formally staffs withServices and CINCs

Includes scope ofproject, references,milestones, and who willdevelop drafts

J-7 releases ProgramDirective to Lead Agent.Lead Agent can beService, CINC, or JointStaff (JS) Directorate

STEP #2Program Directive

The CINCs receive the JP andbegin to assess it during use

18 to 24 months followingpublication, the Director J-7,will solicit a written report fromthe combatant commands andServices on the utility andquality of each JP and theneed for any urgent changes orearlier-than-scheduledrevisions

No later than 5 years afterdevelopment, each JP isrevised

STEP #5Assessments/Revision

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ENHANCEDJOINT

WARFIGHTINGCAPABILITY

Submitted by Services, CINCs, or JointStaff to fill extant operational void

J-7 validates requirement with Services andCINCs

J-7 initiates Program Directive

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STEP #1Project Proposal

All joint doctrine and tactics, techniques, and procedures are organized into a comprehensive hierarchy asshown in the chart above. is in the series of joint doctrinepublications. The diagram below illustrates an overview of the development process:

Joint Publication (JP) 1-06 Personnel

JOINT DOCTRINE PUBLICATIONS HIERARCHYJOINT DOCTRINE PUBLICATIONS HIERARCHY

JP 1-0 JP 2-0 JP 3-0

PERSONNEL

JP 4-0 JP 5-0 JP 6-0

LOGISTICSINTELLIGENCE OPERATIONS C4 SYSTEMSPLANS

JOINTDOCTRINE

PUBLICATION

Lead Agent forwards proposed pub to JointStaff

Joint Staff takes responsibility for pub,makes required changes and prepares pubfor coordination with Services and CINCs

Joint Staff conducts formal staffing forapproval as a JP

STEP #4CJCS Approval

Lead Agent selects Primary ReviewAuthority (PRA) to develop the pub

PRA develops two draft pubs

PRA staffs each draft with CINCs,Services, and Joint Staff

STEP #3Two Drafts

JP 1

JOINTWARFARE

JP 0-2

UNAAF

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