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“GLOSSARY”
SUMMARY OF MAJOR CHANGES
All changes are denoted by blue font.
Substantive revisions are denoted by an asterisk (*) symbol preceding the section,
paragraph, table, or figure that includes the revision.
Unless otherwise noted, chapters referenced are contained in this volume.
Hyperlinks are denoted by bold, italic, blue, and underlined font.
The previous version dated March 2019 is archived.
PARAGRAPH
EXPLANATION OF CHANGE/REVISION
PURPOSE
All
Updated chapter to comply with current administrative
instructions.
Revision
All
Updated hyperlinks.
Revision
B
Updated with administrative changes and clarifying
language for consistency with current Financial
Management Regulation (FMR) text.
Revision
B
Merged Accountable Official (Departmental) and
Departmental Accountable Official definitions.
Revision
B
Updated Acquisition Costs to align with FMR.
Revision
B
Updated Advances to align with FMR.
Revision
B
Deleted Chargeable Account as it is not referenced in the
FMR.
Deletion
B
Updated Construction in Progress to align with FMR.
Revision
B
Updated Cost Center to align with FMR.
Revision
B
Updated Cost Finding to align with FMR.
Revision
B
Deleted Funding Account as it is arbitrarily referenced
once in the FMR.
Deletion
B
Deleted Information Technology Facility as it is not
referenced in the FMR.
Deletion
B
Added definition for Journal Voucher.
Addition
B
Updated Minimum Lease Payments to align with FMR.
Revision
B
Deleted Reportable Accounting System or Segments as
the definition is ambiguous.
Deletion
B
Added definitions for Standard Financial Information
Structure and Standard Line Of Accounting.
Addition
B
Updated definitions for In-Transit Transactions,
Undistributed Transactions, and Unmatched Transactions
per FMR policy memorandum FPM 20-11.
Revision
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PARAGRAPH
EXPLANATION OF CHANGE/REVISION
PURPOSE
Policy Memo
Incorporated updated definitions from the Deputy Chief
Financial Officer policy memorandum, “Definitions
Related to Fund Balance with Treasury (FPM 20-11),”
dated August 11, 2020.
Cancellation
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GLOSSARY
A. Overview
The following list defines general terms of significance or importance in financial
management policies for the Federal Government or the Department of Defense (DoD) that are
discussed in various chapters of this Regulation. This glossary is provided for general information.
It is not an exhaustive list of all financial management terms, and it does not define terms when
standard dictionary definitions apply. Authoritative guidance with more detailed explanations or
nuances may be found in specific chapters.
B. List of Definitions
Accessorial Charges
Costs incurred for packing, crating, and handling related to sales or shipments of property.
*Accountable Official (Departmental)
An individual—such as a receiving official, contracting officer, purchase card official or
military, civilian, and travel pay officials—responsible for providing a certifying officer with
information, data, or services that the certifying officer relies upon in the certification of vouchers
for payment.
Accounting Entity
In DoD the accounting entity is the DoD Component; that is, the Department of the Army,
the Department of the Navy, the Department of the Air Force, and the Office of the Secretary of
Defense (OSD) and/or the Defense Agencies, regardless of appropriation or fund.
Accounting Objectives
Goals toward which accounting efforts are directed. The goals are derived directly from
legal and regulatory requirements and the needs of intended users.
Accounting System Design Documentation
Documentation supporting the design of an accounting system that assures all relevant
accounting principles, standards, and related requirements have been addressed. It consists of
three distinct documentation packages: (1) the functional accounting system concept design,
(2) the functional detailed design, and (3) various automated data processing documentation
packages that track functional user requirements to specific computer programs. See Volume 1,
Chapter 3 for specific documentation requirements.
Accounts Payable
Amounts owed to other entities for goods and services received (i.e., actual or constructive
receipt), progress in contract performance, and rents due to other entities.
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Accounts Receivable from the Public
All accounts receivable arising from the sale of goods and services and from operations
involving other than Federal Government organizations. Examples are debts owed by military
personnel, civilian employees, and contractors.
Accrued Variance (Foreign Currency Fluctuations)
The difference between un-liquidated obligations at the budget rate (approved execution
rate) and the foreign exchange rate current at the time of payment.
*Acquisition Cost
The amount, net of both trade and cash discounts, paid for property plus transportation
costs and other ancillary costs to bring the item(s) to its current condition and location.
Adjustments to Expired or Closed Accounts (Upward or Downward)
Increases or decreases to obligations or expenditures. Adjustments involve recording
obligations or expenditures that were made or incurred, but not recorded, during the period prior
to expiration or cancellation of the account.
Administrative Subdivision of Funds
Any sub-division or legal restriction of an appropriation or fund that makes funds available
in a specified amount for incurring obligations. Frequently used subdivisions include
apportionments, allocations, sub-allocations, allotments and sub-allotments.
*Advances
Advances are cash outlays made by a federal entity to its employees, contractors, grantees,
or others to cover a part or all of the recipients’ anticipated expenses or as advance payments for
the cost of goods and services the entity acquires. The outlay is made before an authorized DoD
receiving official has certified performance. Common examples include, travel advances
disbursed to employees prior to business trips, and cash or other assets disbursed under a contract,
grant, or cooperative agreement before services or goods are provided by the contractor or grantee.
Agency Financial Management System
The total of agency financial systems, both manual and automated, for planning, budget
formulation and execution, program and administrative accounting; as well as all other systems
for recording and classifying financial data and reporting financial management information,
including purchasing, property, and inventory.
A. Financial Management Information. All information that is expressed in
dollar terms on federal spending, collections, assets, liabilities, equity, and related budgetary and
accounting transactions and balances.
B. Accounting System. The structure of methods and procedures used to record,
classify, accumulate, analyze, summarize, and report information on the financial condition and
operating position. It is comprised of the various functional operations involved in authorizing,
recording, classifying, analyzing, and reporting financial information related to financing sources,
gains, expenses, losses, transfers, assets, liabilities, equity, and internal controls. It encompasses the
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procedures and processes from the point a transaction is authorized through processing the data,
either manually or automatically, to issuance of financial and management information statements
and reports.
1. Primary Accounting Systems. The aggregation of like financial
management information aligned by the major operational areas and summarized to support financial
and management information needs. There are five Primary accounting systems made up of the
single, standard integrated Departmental accounting systems, which controls all financial
management information. The Primary accounting systems are General Fund, Working Capital
Fund, Trust Fund, Civilian Pay, and Military Pay.
2. Administrative Accounting Systems.
a. Accounting Support Systems. The manual or automated
programs, procedures and processes that authorize, record, classify, analyze, and report on financial
management information for one of the Primary accounting systems. Accounting Support systems
provide general ledger control and financial information on operations for consolidation to the
Primary accounting systems.
b. Subsidiary Accounting Systems. The manual or automated
programs, procedures and processes for one of the various functional operations involved with
revenues, expenses, assets, liabilities, and equity. The Subsidiary accounting systems form the
foundation and audit trail for the Primary accounting systems and the Accounting Support systems.
3. Accounting System Modules. Modules are distinguished by the fact
that their functions and systems of internal controls are embodied in the accounting system. As such,
modules are fully integrated subsystems of an accounting system, and they are inventoried and
evaluated in conjunction with the accounting system.
4. Feeder Systems. The manual or automated programs, procedures and
processes which develop data required to initiate an accounting or financial transaction but do not
perform an accounting operation (e.g., personnel, property, or logistics systems).
Allocations
A further subdivision of allotments. Within DoD, the term has been used to refer to
departmental-level accounting entity distributions of apportionments, or funds that do not require
apportionment, to an operating Agency or other intermediate level accounting entity.
Allotments
Subdivisions of apportionments that are made by the heads of agencies, or their designee,
to incur obligations within a prescribed amount. Subdivision and distribution of an allotment (e.g.,
sub-allotments and allocations to operating agencies or installation-level accounting activities)
must contain at least the same legal and other limitations applicable to the original allotment. Such
subdivisions and distributions may establish additional legal and other limitations applicable to
execution of budgetary resources.
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Annual (1-Year) Authority
Budget authority that is available for obligation only during a specified fiscal year and
expires at the end of that time.
Anticipated Reimbursements
The dollar value of orders expected to be received during the forthcoming fiscal year.
Anticipated reimbursements do not create obligational authority until an actual order is received
and accepted.
Antideficiency Act
Legislation enacted by Congress to prevent the incurring of obligations or the making of
expenditures (outlays) in excess of amounts available in appropriations or funds; to fix
responsibility within an agency for the creation of any obligation or the making of any expenditure
in excess of apportionment or reapportionment or in excess of other subdivisions established
pursuant to Title 31, United States Code, sections 1341, 1342 (31 U.S.C. §§ 1341-1342), and 1517
(31 U.S.C. § 1517); and to assist in bringing about the most effective and economical use of
appropriations and funds.
Apportionment
A distribution made by the Office of Management and Budget (OMB) of amounts available
for obligation and expenditures in an appropriation or fund account into amounts available for
specified time periods (usually fiscal quarters), programs, activities, projects, objects, or any
combination of these. The apportioned amount limits the obligations that may be incurred. An
apportionment may be further subdivided by an agency into allotments, sub-allotments, and
allocations.
Appropriation Limitations
Statutory and other special restrictions, which impose a restriction on the availability of
funds or the authority to obligate or expend appropriations for certain objects or purposes; such as,
family housing.
Appropriation Warrant
An official U.S. Treasury document that provides the dollar amounts established in the
general and detailed appropriation accounts of the U.S. Treasury pursuant to Appropriation Acts
authorized by law. It serves as a convenient source document for entries into accounts that
establish the amount of money authorized to be withdrawn from the U.S. Treasury.
Appropriation
A provision of law (not necessarily in an appropriations act) authorizing the expenditure
of funds for a specified purpose. Usually, but not always, an appropriation provides budget
authority, which is authority provided by law to incur financial obligations that will result in
outlays. For purposes of the Antideficiency Act, the term "appropriations" may have a broader
meaning. As defined by the Act, it means all new budget authority and balances of budget
authority as described in OMB Circular No. A-11, OMB A-11, Section 20.4.
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Asset Use Charge
A charge for the use of DoD assets (facilities and/or equipment) to recoup depreciation and
interest on investment.
Authorizing Official (or Officer)
An individual who approves a transaction, and verifies and validates the funds cited on a
commitment or obligation document are accurate and available.
Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA)
Legislation that shaped the budget process, first by setting fixed targets for annual deficits
and then by replacing those with a Pay-As-You-Go requirement for new tax or mandatory
spending legislation and with caps on annual discretionary funding. Most of these requirements
expired in 2002. The Statutory Pay-As-You-Go Act of 2010, which did not amend the BBEDCA,
reinstated a statutory pay-as-you-go rule for revenues and mandatory spending legislation. The
Budget Control Act of 2011, which amended the BBEDCA, reinstated discretionary caps on
budget authority.
Bench Stock (Also Shop Stock)
Inventory held by a cost center for use as indirect material and used in support of numerous
small projects or activities carried out by the cost center. Inventory includes items such as screws,
washers, and lubricants.
Book Value
The recorded cost of a general Property, Plant, and Equipment (PP&E) asset less
accumulated depreciation.
Borrowing Authority
Statutory authority to incur obligations and to make payments for specified purposes out
of borrowed money. Within DoD, borrowing authority is used for mortgage assumptions under
the Homeowners Assistance Program and for loans from the Federal Financing Bank.
Budget Authority
Authority provided by law to incur financial obligations that will result in outlays. Specific
forms of authority include appropriations, borrowing authority, contract authority, and spending
authority from offsetting collections.
Budget Control Act (BCA) of 2011
Legislation that, among other things, amended the Balanced Budget and Emergency Deficit
Control Act of 1985 to reinstate discretionary spending limits on budget authority through 2021
and restored the process for enforcing those spending limits; increased the statutory debt ceiling;
and established a Joint Select Committee on Deficit Reduction that was instructed to develop a bill
to reduce the Federal deficit by at least $1.5 trillion over a 10- year period. It also provided a
process to implement alternative spending reductions in the event that legislation achieving more
than $1.2 trillion of deficit reduction was not enacted by January 15, 2012.
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Budget Rate
A foreign currency exchange rate provided to DoD Components for use in preparing budget
submissions during budget formulation and for recording obligations during budget execution.
Budget rates are provided by the DoD Comptroller and may be modified by the Congress. During
execution, foreign currency obligations are recorded using the budget rate (rates approved for
execution). Also, see “Foreign Currency Fluctuations.”
Budgetary Resources
For purposes of budget execution, budgetary resources include new budget authority,
available unobligated balances at the beginning of the year, reimbursements and other income (also
known as offsetting collections credited to an appropriation or fund account), recoveries of prior
year obligations from unexpired accounts, and restorations. In the case of reimbursable work,
budgetary resources available for obligation are comprised of earned reimbursements and unfilled
customer orders (limited by the amounts collected in advance for orders from the public). In the
case of loan programs, budgetary resources available for obligation from loan repayments and
interest on loans are comprised of actual collections when authorized to be used.
Business Concern
Any person or organization engaged in a profession, trade, or business, and nonprofit
entities (including State and local governments, but excluding Federal entities) operating as
contractors.
Cash-Flow Process
Each process of collecting or disbursing moneys for Agency programs or operations, and
for balances held outside of the U.S. Treasury.
Cash-Flow Report
A document summarizing each unique cash-flow process and corresponding opportunities
for new cash management improvements.
Cash Held at Personal Risk
Cash held by authorized disbursing officers, their cashiers, and their agent officers,
including alternates, for making miscellaneous cash payments, meeting cash payrolls or making
change; funds established for making small purchases; imprest funds; cash held pending delivery
to other disbursing officers; and for other purposes specifically authorized by law.
Cash Management
Practices and techniques designed to accelerate and control collections, ensure prompt
deposit of receipts, improve control over disbursement methods, and minimize idle cash balances.
Cash Management Review
An ongoing study of an Agency's cash flows and corresponding cash management
processes or mechanisms conducted to identify implementable improvement opportunities in an
Agency's cash management practices.
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Centrally Managed Account
Authority issued by the holder of an account (allotment/allocation) for incurring
obligations for a specific purpose and in a specific amount. It is administered by publishing a
centrally managed account number that permits authorized officials to charge the account for
authorized purposes without further determination or certification of fund availability for
individual transactions.
Certifying Officer
An individual designated to attest to the correctness of statements, facts, accounts, and
amounts appearing on a voucher, or other documents. A certifying officer is pecuniary liable for
payments in accordance with 31 U.S.C. § 3528.
Clearing Accounts
Accounts established solely to temporarily hold general, special, or trust fund collections
or disbursements pending clearance to the applicable receipt or expenditure budgetary account.
Except for clearance to the applicable receipt or expenditure budgetary account, clearing accounts
are not available for obligation or expenditure.
Closed/Canceled Accounts
An appropriation that has been closed in accordance with 31 U.S.C. §§ 1551-1557. This
term also includes an appropriation that otherwise would have been closed by
31 U.S.C. §§ 1551-1557, but has not been closed by the Department of the Treasury because the
appropriation has a negative balance. When balances are canceled, the amounts are not available
for obligation or expenditure for any purpose, unless exempt by a provision of an appropriation
law.
Collections
Amounts received during the fiscal year. Collections are classified into two major
categories: budget receipts and offsetting collections. Budget receipts are amounts received by
the Federal Government from the public, e.g. tax revenues, premiums of compulsory social
insurance programs, court fines, and license fees. Offsetting collections are classified into two
major categories: offsetting receipts and collections credited to appropriation or fund accounts.
Commitment
An administrative reservation of funds based on firm procurement requests, unaccepted
customer orders, Directives, and equivalent instruments.
Component Liaison Office
Military Department and Agency formed liaison offices to communicate with the Defense
Finance and Accounting Service to ensure adequate dissemination of information and help
coordinate DoD finance and accounting policy and other issues.
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Conceptual Design of Accounting System
Documentation of the process that leads to a decision to develop a new accounting system
or system segment, or to initiate a major upgrade effort. Documentation reveals the deficiencies
in the current system, the accounting entities involved, the parameters of the accounting system,
the accounting structure, security considerations, the alternatives considered, and the economic
analysis developed to support a decision.
Consolidated Working Fund Accounts
Accounts established to hold funds transferred from other Agencies, DoD Components, or
accounts until transferred to an appropriate account authorized by provisions of law. Applicable
funds are not available for obligation or expenditure.
*Construction in Progress (CIP)
A temporary classification of assets under construction equal to the amount of direct labor,
direct material, and overhead incurred in the construction of General Property, Plant, and
Equipment (PP&E) for which the acquiring DoD agency will be accountable for financial reporting
purposes. General property includes real property such as land and buildings. Upon completion,
these costs will be transferred to the proper capital asset account as the acquisition cost of the item.
CIP is not to be used for information technology software. The Internal Use Software in
Development account is used for information technology software.
Contingency
An existing condition, situation, or set of circumstances that involves an uncertainty as to
possible gain or loss. The uncertainty will be resolved when one or more future events occur or
fail to occur. Resolution of the uncertainty may confirm a gain (i.e., acquisition of an asset or
reduction of a liability) or a loss (i.e., loss or impairment of an asset or the incurrence of a liability).
Contingent Liability
The term has two meanings. As a budgetary term, it represents variables that cannot be
recorded as valid obligations. Such variables include (1) outstanding fixed price contracts
containing escalation, price redetermination, or incentive clauses, or (2) contracts authorizing
variations on quantities to be delivered, or (3) contracts where allowable interest may become
payable by the Federal Government on contractor claims supported by written appeals pursuant to
the "DISPUTES" clause contained in the contract. As a proprietary accounting term, it represents
a contingency posing the possibility of a loss when one or more events occur or fail to occur.
Examples of loss contingencies include the collectability of accounts receivable, pending or
threatened litigation, and possible claims and assessments. DoD recognizes contingent liabilities
when a future loss related to past events or exchange transactions is probable and the loss amount
can be reasonable estimated.
Continuing Resolution
The Congressional resolution, in the absence of an appropriation act, providing authority
for Agencies to continue current operations. Such continuing resolutions are subject to the Office
of Budget and Management apportionment in the same manner as appropriations.
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Contract
As defined by the Federal Acquisition Regulation (FAR) 2.101, “Definitions,” a contract
is a mutually binding legal relationship obligating the seller to furnish the supplies or services
(including construction) and the buyer to pay for them.
Contract Authority
Statutory authority to incur obligations but with liquidation of obligations dependent upon
future actions of the Congress or by the receipt of customer orders or other available resources.
Within the Department, Contract Authority is apportioned budget authority that can be legally
obligated. Contract Authority, however, is not funded and is apportioned and allocated without a
supporting Treasury cash balance. Consequently, before an obligation incurred against Contract
Authority can be liquidated, sufficient budgetary resources should be available for the outlay. For
the Defense Working Capital Funds, obligations against Contract Authority are based on earned
customer orders and cash balances in the fund corpus.
Contract Financing Payment
A Federal Government cash disbursement to a contractor under the contract prior to
acceptance of goods or services by the Federal Government.
Contract Liquidating Authority
An appropriation, or re-appropriation, enacted to pay the obligations incurred under the
contract authority.
Contractor-Acquired Property
General PP&E assets acquired by a contractor on behalf of a DoD Component for use in
the performance of a contract. It does not include federal government furnished material or
equipment. Also, see Government Furnished Equipment.
Cost
A monetary measure of the amount of resources applied to a cost objective. Within DoD,
"costs" are identified following generally accepted accounting principles and standards. The fact
that collections for some cost elements are deposited into Miscellaneous Receipts of the Treasury
does not make those costs "extraneous." It simply means the Congress has not authorized such
amounts to be retained by appropriation accounts. After costs have been identified, following
Federal Accounting Standard Advisory Board standards, including the Statement of Federal
Financial Accounting Standard 4 on cost accounting rules, a DoD Component may proceed to
eliminate cost elements, or process waivers, in accordance with legal authorities.
*Cost Center
An element of a cost accumulation structure—representing the lowest level organization
or activity used to identify obligations or expend resources—to logically group costs of goods and
services for management to assess efficiency, usage, examine trends, and make decisions. Cost
centers enable organizations to apply process costing, one of two primary approaches to cost
accumulation, the other approach being has job order costing. SFFAS 4 requires organizations to
accumulate costs for the identified types of outputs produced for various programs or projects.
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Cost Clearing Account
An account used when standard rates are employed. The actual expenses are debited to the
cost clearing account and the amounts billed to customers are credited to the account. At the end
of the fiscal year, the account is closed with analysis performed to determine if rates require
adjustment.
*Cost Finding
Techniques that produce cost data by analytical or sampling methods for certain kinds of
costs, such as indirect costs, items with costs below set thresholds within programs, or for some
programs in their entirety. These techniques support the overall managerial cost accounting
process and can represent nonrecurring analysis of specific costs.
Cost Objective
An activity, operation, or item whose cost is to be measured for which management decides
to identify, measure, and accumulate costs. The cost objective must be discrete enough and
described in writing to such a level of detail to form a basis to establish cost centers and output
products.
Current Accounts Receivable
All receivables that will be due within the 12 months following the reporting period.
Current Value of Funds Rate (CVFR)
The average investment rate for the U.S. Treasury Tax and Loan accounts expressed as an
annual rate and published by the U.S. Treasury in the "Federal Register" each year. Uses of the
CVFR include determining the effectiveness of taking cash discounts and calculating interest on
overdue federal government accounts receivables.
Customer Order
An order received and accepted by the performing activity from a customer. It is written
evidence that certain goods and services will be provided to the tenderer of the order for payment
of a dollar amount. The order must contain an original signature or equivalent of both the ordering
activity and the receiving activity and must specify a dollar amount. The specified dollar amount
cannot be exceeded.
Cutoff Time
A time prescribed by a financial institution beyond which transactions presented or actions
requested will be deferred to the next banking day's business.
Day
A calendar day, unless otherwise noted. If the day on which an action is required falls on
a nonworking day, then day means the next working day.
Default
Failure to meet any obligation or term of a credit, grant, or other agreement.
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Defense Working Capital Fund (DWCF)
A revolving fund using a business-like buyer and seller approach with a goal of breaking
even over the long term. Stabilized rates or prices are generally established each fiscal year.
DWCF stabilized rates or prices are adjusted for sales to customers to include an amount for
unfunded civilian retirement and post-retirement health benefits costs. The DWCF was established
on December 11, 1996, upon the reorganization of the former Defense Business Operations Fund.
Deferrals
Budgetary resources that have been deferred as reserves to provide for contingencies to
achieve savings made possible by or through changes in requirements or greater efficiency of
operations or as specifically provided by law.
Definite Authority
Authority that is stated as a specific sum at the time it is granted. This includes authority
stated as not to exceed a specified amount. Most DoD appropriations are for definite amounts of
authority.
Delivered Orders
The term used for the credits entered into the budgetary accounts to recognize liabilities
incurred for (1) services performed by employees, contractors, other Government accounting
entities, vendors, carriers, grantees, lessors (2) goods and other tangible property received; and
(3) items such as annuities or insurance claims for which no current service is required. Accrued
expenditures are categorized as either paid or unpaid.
Delivered Orders-Paid
The budgetary account that represents the dollar value of goods and services received for
which payment has been made.
Delivered Orders-Unpaid
The budgetary account matching the proprietary account, "accounts payable." It represents
the dollar value of goods and services received for which payment has not been made. (Also, see
"Accounts Payable.")
Demand Cash Withdrawal
Commercial checks made payable to cash for withdrawal by the cashier.
Deposit (noun)
Money presented for credit to the U.S. Treasury. Such transfers may be made by Agencies
or directly by the remitter. All such transfers are effected through a Federal Reserve Bank or other
financial institution.
Deposit (verb)
The act of presenting moneys for credit to the U.S. Treasury by an Agency official.
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Deposit Funds
Receipts held temporarily and later refunded or paid into some other Treasury fund or other
entity, or held by DoD as banker or agent for others and paid out at the direction of the owner.
Deposit Fund Accounts
Expenditure accounts established to account for deposit fund receipts. Such funds are not
available for paying salaries, grants, or other expenses of the Federal Government. Expenditures
are often offset by receipts within this type of fund.
Depreciation
The systematic and rational allocation of the acquisition cost of an asset, less its estimated
salvage or residual value, over its estimated useful life.
Direct Cite
A financing action by a DoD organization (customer) to procure products and services
from another entity. When direct cite is used, the procuring entity sends the procurement source
documents to the customer for the customer to perform all accounting functions. In the case of the
Foreign Military Sales program, it specifically refers to documents that result in a disbursement to
other than a DoD organization (a contractor, other Federal Agency, or employee).
Direct Delivery
Items shipped directly from a contractor to a customer, whether from a consolidated
military services procurement or a contract solely for that customer.
Direct Loan
An obligation created when the Federal Government disburses the funds and contracts with
the debtor for repayment, with or without interest, or when the Government acquires a guaranteed
private loan in satisfaction of default or other claim.
Direct Program
The budget authority in an appropriation act. (See "Budget Authority.")
Disbursements
Amounts paid by Federal Agencies, by cash or cash equivalent, during the fiscal year to
liquidate government obligations. “Disbursement” is often used interchangeably with the term
“outlay.” In budgetary usage, gross disbursements represent the amount of checks issued and cash
or other payments made, less refunds received. Net disbursements represent gross disbursements
less income collected and credited to the appropriation or fund account, such as amounts received
for goods and services provided. For purposes of matching a disbursement to its proper obligation,
the term disbursement refers to the amount charged to a separate line of accounting.
Disbursing Officer
An officer or employee of a Federal Department, Agency or Corporation designated to
disburse moneys and render accounts according to laws and regulations governing the
disbursement of public moneys.
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Discount (Cash)
A reduction in the amount due on an accounts payable offered by the vendor if paid within
a stated period.
Discount (Trade)
A reduction in price, usually varying in percentage with volume of transactions, made by
vendors to those engaged in certain businesses and allowable irrespective of the time when the
account is paid.
DoD Component
For purposes of this Regulation, unless otherwise noted "DoD Component" includes the
following: OSD; the Chairman, Joint Chiefs of Staff and the Joint Staff; the DoD Inspector
General; the Military Departments including the Coast Guard when assigned to the Department of
the Navy; the Defense Agencies; DoD Field Activities; the Combatant Commands; Washington
Headquarters Services, the Uniformed Services University of the Health Sciences, and all non-
appropriated fund instrumentalities.
DoD Education Benefits Trust Fund
A fund established for education assistance purposes for active and reserve force personnel.
It derives its resources through transfers from military personnel accounts and from interest earned
from investments in Federal Government securities.
Earned Reimbursement
The amount recognized when a performing organization renders actual or constructive
performance on a reimbursable order.
Economy Act Order
An order for goods or services placed by a Federal Agency or Department to another
government agency under provisions of 31 U.S.C. §§ 1535-1536. (See Volume 11A, Chapter 3.)
Electronic Data Interchange (EDI)
The exchange of standardized information between business partners typically
communicated electronically between computers. It is DoD policy that DoD Component EDI
applications must conform to the American National Standards Institute, Accredited Standards
Committee X12 standard.
Electronic Funds Transfer (EFT)
The act of debiting or crediting accounts in financial institutions by wire rather than source
documents, such as, paper checks. Processing typically occurs through the Federal Reserve Bank
clearing houses.
Entitlements
Legally established benefits available to any person or unit of Federal Government meeting
eligibility requirements established by law.
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Executory Costs
Those costs associated with ownership of an asset such as insurance, taxes, and normal
maintenance. In the case of a capital lease, the portion of the lease payment that represents
executory costs is not capitalized, but is expensed.
Expenditure
An actual disbursement of funds in return for goods or services. Frequently used
interchangeably with the term “outlay.”
Expense
The outflow or other depletion of assets or incurrence of liabilities (or a combination of
both) during some period as a result of providing goods, rendering services, or carrying out other
activities related to an entity’s programs and missions, the benefits from which do not extend
beyond the present operating period. In financial accounting and reporting, the costs that apply to
an entity’s operations for the current accounting period are recognized as expenses of that period.
Expired Account or Appropriation
Appropriation or fund account in which the balance is no longer available for incurring
new obligations, but is still available to cover upward adjustments to prior year obligations and
recording, adjusting, and liquidating valid obligations. The account remains available for such
purposes during the five-year expiration period, unless the expiration period has been lengthened
by legislation.
Facilities
Industrial property (other than material, special tooling, special test equipment, and
military property) for production, maintenance, research, development, or test including real
property (other than land) and rights therein, buildings, structures, improvements, and plant
equipment (including capital leases).
Fast Pay
Disbursement to a contractor (within 15 days after receipt of the invoice) based on the
contractor's certification that delivery has been made at the time an invoice is presented for
payment.
Federal Agency
Same meaning as the term "Agency" in 5 U.S.C. § 551(1), and includes any entity that is
operated exclusively as an instrumentality of such an Agency for administering one or more
programs of that Agency. Both DoD appropriated and non-appropriated fund activities are
included under this definition, but non-appropriated fund activities are public/non-federal entities
for purposes of processing receivables. See Volume 4, Chapter 3.
Financial Institution
Bank, Savings Association, or Credit Union eligible under 31 C.F.R. 202 to serve as a
Federal Government depositary.
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Financial Management System
A financial operation that includes the financial system and the financial portion of mixed
systems necessary to support financial management; automated and manual processes, procedures,
and controls; data; hardware; software; and support personnel dedicated to the operation and
maintenance of system functions.
Financing Interest
Interest charged as a cost of extending credit as distinguished from interest charged because
of delinquency.
Financing Payment
Disbursement of funds after performance has occurred but before physical delivery. The
most common type of financing payment is the progress payment made to DoD contractors to
reimburse incurred cost before ordered items or material are delivered. See “Contract Financing
Payment.”
Fixed Accounts
Appropriation or fund accounts with balances that are available for a definite period of
time. The fixed accounts are comprised of annual and multiyear accounts. The universe of
appropriation or fund accounts is made up of fixed accounts and no-year accounts.
Foreign Currency Fluctuations
The difference between budget rates approved for execution and actual foreign currency
exchange rates in effect at time of payment that cause changes in obligations or contractual
liabilities. Obligations are recorded using the budget rate, and payments are made using the current
foreign currency exchange rate.
Foreign Currency Unliquidated or Liquidated Obligations
Foreign currency un-liquidated obligations are derived by taking obligations at the budget
rate less the disbursements at the budget rate. Foreign currency liquidated obligations is the actual
disbursement at the budget rate.
Fund Groups
The range of numeric or alpha and/or numeric account symbols assigned by the Treasury
to identify groups of accounts, such as, 0000 to 3799 = General Funds.
Fund Holder
An individual holding an administrative subdivision of funds or an operating target, who
is responsible for incurring obligations against the administrative subdivision or target and for
managing the use of such funds.
Funded Carryover
The incomplete portion of a job order for goods or services to be provided by a working
capital fund activity. Usually, funded carryover is measured at the end of a fiscal period, that is, a
fiscal year.
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Funds Certifying Official
An individual responsible for the proper assignment of funding on a commitment or
obligation document before the obligation has incurred.
General Fund Accounts
These consist of (1) receipt accounts used to account for collections not dedicated to
specific purposes and (2) expenditure accounts used to record financial transactions arising under
congressional appropriations or other authorizations to spend general revenues.
General Fund Receipt Accounts
Accounts established for receipts of the Federal Government that are not earmarked by law
for specific purpose and that are not available for obligation and expenditure.
Government Furnished Equipment
Property provided to a contractor by DoD. It is used in producing an end product. It is not
consumed, but is returned in the same form at the end of the contract.
Government Furnished Material
Property provided to a contractor by DoD. It may be incorporated into an end item (a change
in form) or may be consumed in the performance of a contract.
Grants
Assistance awards for which no substantial involvement is anticipated between DoD and the
recipient during performance of the contemplated activity.
Guaranteed Loan
A contingent liability created when the Federal Government insures the private lender who
disbursed the funds that the lender will be repaid to the extent of the amount or percentage guaranteed
in the event of default by the debtor; a DoD Component pledge to pay part or all of the loan principal
and interest to a lender, or holder, of a security in the event of default by a third party borrower.
Holdback
The amount withheld from payments to contractors to assure compliance with contract terms.
Usually the amount to be withheld is expressed as a percentage in the contract provisions.
Imputed Cost
Imputed cost is a reporting entity’s share of an expense not incurred directly, but borne by
another reporting entity and not reimbursed.
Indefinite Appropriations
Appropriations of a current or permanent nature in which a definite amount is not stated but
is to be determined on the basis of stipulated subsequent events.
Indefinite Authority
Authority for which a specific sum is not stated, but is determined by other factors such as
the receipts from a certain source or obligations incurred.
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Interagency Allocations
According to OMB Circular A-11, section 20.4(l), “Allocation means a delegation,
authorized in law, by one agency of its authority to obligate budget authority and outlay funds to
another agency. When an agency makes such a delegation, the Treasury Department establishes a
subsidiary account called a "transfer appropriation account," and the receiving agency may obligate
up to the amount included in the account. The budget does not show the transfer appropriation
account separately. The budget schedules for the parent account include the obligations by the other
agency against the subsidiary account. Allocations are appropriate where the receiving agency is
acting as the agent for the allocating agency.”
Internal Control Documentation
Written policies, organization charts, procedural write-ups, Manuals, memoranda, flow
charts, decision tables, completed questionnaires, software, and related written materials used to
describe the internal control methods and measures, to communicate responsibilities and authorities
for operating such methods and measures, and to serve as a reference for persons reviewing the
internal controls.
Internal Controls
The manner in which financial, manpower, and property resources are to be controlled and
safeguarded by the regular authorization, approval, documentation, recording, reconciling, reporting,
and related accounting processes.
Internal Control Standards
The standards issued by the Comptroller General for use in establishing and maintaining
systems of internal control. Those standards are applicable to all operations and administrative
functions, but are not intended to limit or interfere with duly granted authority for the development
of legislation, rulemaking, or other discretionary policymaking.
Internal Control Techniques
The application of prescribed processes and documents to efficiently and effectively
accomplish an internal control objective and to help safeguard an activity from waste, loss,
unauthorized use, or misappropriation.
*In-transit Transactions
Disbursements or collections that have been reported by a disbursing office, through a
paying center, to the Department of the Treasury and charged against the Department’s fund
balances but have not yet been received by the accounting system.
Inventory Price
For non-stock fund items the inventory price is the acquisition cost. For stock fund items,
the inventory price is acquisition cost plus prescribed surcharges. (See "Acquisition Cost.")
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Investment
As a budget term, investment refers to equipment financed with procurement appropriation
accounts. As an accounting term, investments represent the value of securities and other assets held
for the production of revenues in the form of interest, dividends, rentals or lease payments, net of
premiums or discounts.
Invoice
As defined by FAR 2.101, Definitions, an invoice is a contractor’s bill or written request for
payment under the contract for supplies delivered or services performed.
Invoice Payment
A Federal Government disbursement of monies to a contractor under a contract or other
authorization for supplies or services accepted by the Government.
*Journal Voucher
Adjustments recorded in the system transaction registers and the General Ledger identifying
summary-level adjustments.
Letter Contract
An offer and acceptance that is specific and definitive enough to show the purpose and scope
of the final contract to be executed. When accepted in writing by the contractor, documentary
evidence exists to support the recording of an obligation.
Loan Guarantees
Agreements by which a DoD Component pledges to pay part or all of the loan principal and
interest to lenders or holders of securities in the event of default by third-party borrowers.
Management Fund Accounts
Working fund accounts authorized by law to facilitate accounting for collections from two
or more appropriations or funds to finance an activity not involving a continuing cycle of
business-type operations and that are available for obligation and expenditure. Those are combined
receipt and expenditure accounts established by law, with receipts derived from such operations
usually available in their entirety for use by the fund without further action by the Congress.
Military Interdepartmental Purchase Request (MIPR)
An order issued by one military service to another to procure services, supplies, or equipment
for the requiring service. The MIPR (DD Form 448) may be accepted on a direct citation or
reimbursable basis. It is an Economy Act (31 U.S.C . §§ 1535-1536) order subject to downward
adjustment when the obligated appropriation is no longer valid for obligation.
Military Retired Pay (Includes Fleet Reserve/Fleet Marine Corps Reserve Retainer Pay)
(A reduced pay entitlement for reduced services.) The gross entitlement for a retired service
member based on terms and conditions of law, pay grade, years of service, percentage of disability,
if applicable, and date of retirement (transfer to the retired reserve).
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Military Retirement Trust Fund
A trust fund established to finance the retirement cost of active and reserve military
personnel. An accrual amount is transferred monthly from the military personnel accounts to the
Fund based on a fixed percentage of basic pay for full-time and part-time personnel. The accrual
amounts are determined by the DoD Board of Actuaries who are appointed by the President for
15-year terms. In addition, amounts are deposited into the Fund to liquidate the unfunded liability
of retired pay earned prior to establishment of the Fund. Interest on investments of the Fund assets
in Federal Government securities are also transferred into the Fund.
*Minimum Lease Payments
The payments that the lessee is obligated to make or may be required to make in connection
with leased property. Minimum lease payments exclude contingent rentals and any guarantee by
the lessee of the lessor’s debt and the lessee’s obligation to pay (apart from rental payments)
executory costs such as insurance, maintenance, and taxes in connection with the leased property.
Multiple-Year Authority
Budget authority that is available for original obligation for a specified period in excess of 1
fiscal year.
Negative In-transit Disbursements
The opposite of in-transit disbursement. The accounting office has processed
disbursements for recordation against the applicable corresponding obligation but the disbursing
office has not reported the disbursements, through a paying center, to the Department of the
Treasury and charged against DoD’s fund balances. (See “In-transit Disbursements.”)
Negative Unobligated Balance
An appropriation or fund in which the amount of obligations exceeds the amount of
obligational authority. In closed appropriations, the available obligational authority is equal to the
unobligated balance.
Negative Unliquidated Obligation
A disbursement transaction that has been matched to the cited detail obligation, but the
total disbursement(s) exceeds the amount of that obligation.
Noncurrent Accounts Receivable
A receivable that will not be due within 12 months following the reporting period.
Non-expenditure Transfers
A redistribution of either unobligated balances of budget authority provided in a previous
year, or budget authority provided in the current year between appropriations or funds for the benefit
of the gaining appropriation or fund. Transfers of obligated balances and sometimes re-
appropriations also require non-expenditure transfers.
No-Year Authority
Budget authority that remains available for obligation for an indefinite period of time.
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Obligation
Amount representing orders placed, contracts awarded, services received, and similar
transactions during an accounting period that will require payment during the same, or a future,
period. Includes payments for which obligations previously have not been recorded and adjustments
for differences between obligations previously recorded and actual payments to liquidate those
obligations. The amount of obligations incurred is segregated into undelivered orders and accrued
expenditures - paid or unpaid. For purposes of matching a disbursement to its proper obligation, the
term obligation refers to each separate obligation amount identified by a separate line of accounting.
Obligational Authority
The sum of (1) budget authority provided for a given fiscal year, (2) balances of amounts
brought forward from prior years that remain available for obligation, and (3) amounts authorized to
be credited to a specific fund or account during that year, including transfers between funds or
accounts. See "Budget Authority."
Offsetting Collections
Collections from Federal Government accounts or from transactions with the public. The
two major categories of offsetting collections are offsetting receipts (amounts deposited to receipt
accounts) and offsetting collections credited to appropriation or fund accounts.
Offsetting Receipts
Collections that are deposited into proprietary Miscellaneous Receipt Accounts of the
Department of the Treasury. Applicable deposits offset the collecting Agency's budget authority and
outlays.
Operating Agency
A major organizational unit within a Military Department or Defense Agency that is
responsible for (1) the active planning, direction, and control of a program or segment, thereof, and
(2) the control of the funds allocated to it.
Outlays
The amount of checks issued or other payments made (including advances to others), net of
refunds and reimbursements. Outlays are net of amounts that are adjustments to obligational
authority. The terms "expenditure" and "net disbursement" are frequently used interchangeably with
the term "outlay." Gross outlays are disbursements and net outlays are disbursements (net of refunds)
minus reimbursements collected.
Overaged Disbursement
A disbursement that is not matched to a corresponding obligation within specified
timeframes.
Overhead Rate
The rate determined by performing organizations to allocate operating costs not directly
identifiable to the work order. The rate may include supervisory, general, and administrative
expenses as well as miscellaneous material and supplies.
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Participation Loan
A loan that consists of both direct and guaranteed portions.
Pass-throughs (Current Year)
Revolving fund revenues received during the current fiscal year which: (1) are in addition to
amounts provided for in the customer stabilized rate structure and (2) represent reimbursement for
current year costs or amounts in excess of amounts budgeted, or otherwise provided for, in the
President's budget on which approved customer stabilized rates for the [current] year were based.
Pass-throughs (Prior Year)
Revolving fund revenues, which provide for the recoupment of amounts associated with prior
year efforts or sales. These amounts represent the recoupment of amounts beyond those contained
in the DoD stabilized rate structure for the applicable prior fiscal year for which the efforts were
performed. These amounts are generally intended to offset prior year losses and/or amounts in
excess of amounts previously budgeted.
Pay Account
The part of each individual civilian and Military Service member's master pay record that
contains all transaction information on payments and deductions with an audit trail to the authorizing
documents. The pay account includes information such as pay grade, record of payments, all
earnings separately identified by type (basic pay, bonuses, danger pay); allowances; allotments;
year-to-date gross earnings; taxable earnings, taxes withheld, and leave data (amount earned, taken,
lost, forfeited, advanced, or used).
Pay and Allowances
Payment to active duty, Reserve, National Guard, and retired members and their surviving
annuitants, other than travel and transportation reimbursements, and to all civilian employees and
direct hire employees in foreign locations, other than travel and transportation expenses.
Paying Office
A disbursing office. In the case of contracts, the place named in the contract for forwarding
invoices for payment.
Period of Availability
The period of time in which budget authority is available for original obligation.
Planning, Programing, Budgeting, and Execution (PPBE)
A cyclic process containing four distinct, but interrelated phases: planning, programing,
budgeting, and execution. In addition to establishing the framework and process for decision making
on future programs, the process permits prior decisions to be examined and analyzed from the
viewpoint of the current environment (threat, political, economic, technological, and resources) and
for the time period being addressed. The ultimate objective of PPBE is to provide operational
commanders the best mix of forces, equipment, and support attainable within fiscal constraints.
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Political Subdivision of Local Government
A local unit of government, including specifically a county, municipality, city, town,
township, school district, or other special district created by State law, or combination of these units.
Port Loading and Unloading Costs
A subset of accessorial costs. The costs incurred for loading, unloading, and handling at the
ports of embarkation and debarkation.
Prepositioning Costs
The accessorial costs incurred to store items at locations outside the United States in
anticipation of support to other authorized customers.
Predetermined Rate
The rate established by appropriate authority for use in computing recoverable amounts.
Prevalidation
A procedure that requires a proposed payment be identified/matched to its applicable
proper supporting obligation that has been recorded in the official accounting system and that the
line(s) of accounting cited on the payment match the data recorded in the accounting system.
Private Parties
Consists of non-U.S. Government activities; foreign governments, firms, and organizations;
and international organizations, other than Foreign Military Sales (FMS) customers and
FMS/International Military Education and Training Program (IMET) recipients.
Project Order
An order for goods or services issued under the authority in 41 U.S.C. § 6307 to a separately
managed and financed Federal Government owned and operated establishment. See
Volume 11A, Chapter 2.
Property Book
A documentary record of every item on a "Table of Organization and Equipment List," or
other type of allowance list, showing that a unit is prepared to accomplish its assigned mission. The
property book lists both capitalized and expensed assets, shows quantities on hand, items due in,
open requisitions, unit prices, hand receipts.
Realized Variance (Foreign Currency Fluctuations)
The difference between actual obligations at the budget rate (approved execution rate) and
the foreign exchange rate in effect at the time of payment (liquidation of the obligation). The
variance is equal to the amount disbursed from the applicable centrally managed allotments.
Real Property
Fixed assets that are comprised of land and the rights to land; buildings to include capitalized
additions, alterations, improvements, and rehabilitations; and other structures and facilities. Real
property does not include personal property (weapons systems and other military equipment).
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Reapportionment
An Office of Management and Budget approved change to the previously approved
apportionment for the current year. See “Apportionment.”
Reappropriation
Statutory authority to restore or extend the obligational availability, whether for the same or
different purpose, of all or part of the unobligated balance of budget authority that has expired or
otherwise would expire in an annual or multiple-year appropriation. Reappropriation transactions
require non-expenditure transfer of the funds involved from the expired or otherwise expiring
account to the designated current account when the unobligated balance has not been withdrawn to
the surplus fund of the U.S. Treasury. If the unobligated balance has been withdrawn, then the
transaction requires a warrant. Reappropriations that provide funds to a fiscal year for which they
were not previously available constitute new budget authority in the receiving account.
Refunds
Recoveries of overpayments that result from errors in paying invoices or from items returned
to vendors. Also see "Refunds and/or Transfers (Current Year)" and "Refunds and/or Transfers
(Prior Year)."
Refunds and/or Transfers (Current Year)
Industrial fund amounts transferred on a non-expenditure basis which represent the transfer
of revenue collected through stabilized rates which: (1) is in excess of current year costs or
(2) otherwise exceeds the purpose for which initially intended in the current year. These transfers
are generally made to appropriated funds and provided for in a general provision contained in the
applicable annual appropriation act.
Refunds and/or Transfers (Prior Year)
Industrial fund amounts transferred on a non-expenditure basis, which represent the transfer
of amounts associated with prior year efforts or sales. These amounts usually represent the transfer
of revenue collected through stabilized rates which: (1) were in excess of [then] current year costs
or (2) otherwise exceeded the purpose for which initially intended. These transfers are generally
made to appropriated funds and provided for in a general provision contained in the applicable annual
appropriation act.
Reimbursable Order
An order for services, supplies, material, or equipment placed by a requiring (or ordering)
DoD Component (or Federal Agency) and furnished by another DoD Component (or Federal
Agency) without separate identification of the items, or separate citation of the funds of the
requiring DoD Component; and with subsequent delivery to and reimbursement by the requiring
DoD Component. The requiring DoD Component records the reimbursable order as an obligation
when the servicing (or performing) DoD Component accepts the reimbursable order in writing.
Reimbursements
Amounts earned and collected for property sold or services furnished either to the public or
to another Federal accounting entity. To be an appropriation reimbursement, the collection must be
authorized by law for credit to the specific appropriation or fund account.
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Replacement Cost
Obligations to be incurred at a future time to procure equipment or material in place of items,
which have been sold or transferred. There are two methods used to determine replacement cost:
(1) Applying the OSD prescribed inflation factor to the most recent contract price of the item to be
replaced. The inflation factor is applied to each fiscal year between the year the item sold or
transferred was acquired and the fiscal year in which the replacement item will be delivered.
(2) Obtaining a current contractor quote for the replacement item. Normally the second method is
the most accurate method.
Reprogramming
Realignment of budget authority from the purpose for which appropriated to finance another
(usually emergent, unfunded) requirement. A necessary, desirable, and timely device during
execution of Defense programs for achieving flexibility in the use of DoD funds provided in
appropriation acts.
Reschedule
(Restructure, refinance, forbear, re-amortize, or defer) to establish new terms or conditions
in order to facilitate the repayment of debt. For example, stretching out or extending into the future
such payments.
Rescission
Legislation that cancels budget authority previously provided by Congress before the time
when the authority would otherwise lapse, that is, cease to be available for obligation.
Reserves
Portions of budgetary resources set aside by OMB to (1) provide for contingencies, or
(2) effect savings made possible by or through changes in requirements or greater efficiency of
operations.
Residual Value
Residual value is the estimated value remaining at the end of a capital asset's useful life to
DoD or the amount that can be expected to be recovered from the asset's disposal when it is removed
from service.
Resource Manager
An individual who ensures proper assignment of funds, validates the funds cited on a
commitment or obligation document are accurate and available, and maintains funds control to
include funding and spending limits.
Restoration
An unobligated amount previously withdrawn by administrative action to the merged surplus
balances that is again made available to fund within scope increases to original obligations or to fund
other Congressionally approved programs pursuant to law.
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Revolving Fund Accounts
Accounts authorized by specific provisions of law to finance a continuing cycle of
business-type operations, and which are authorized to incur obligations and expenditures that
generate receipts.
Sequestration
Sequestration means the permanent cancellation of budgetary resources. The Statutory
Pay-As-You-Go Act of 2010 requires such cancellations if revenue or direct spending legislation
is enacted that, in total, increases projected deficits or reduces projected surpluses relative to the
baseline. Under the law, selected mandatory programs would be subject to across-the-board
cancellations. BBEDCA, as amended, requires such cancellations if discretionary appropriations
exceed the statutory limits on discretionary spending.
Special Fund Accounts
Separate receipt and expenditure accounts established to account for receipts of the
Government that are earmarked by law for a specific purpose but are not generated by a cycle of
operations for which there is continuing authority to reuse such receipts.
Special Fund - Expenditure Accounts
Accounts established to record amounts appropriated, or otherwise made available by
transfers from a special fund receipt account to be obligated and expended for special programs in
accordance with specific provisions of law.
Special Funds - Receipt Accounts
Accounts credited with receipts from specific sources that are earmarked by law for a specific
purpose, but which are not generated from a continuing cycle of operations.
Specialized or Technical Services
Statistical and other studies and compilations, developmental projects, technical tests and
evaluations, technical information, training activities, surveys, reports, documents, and any other
similar service functions that any Federal Agency is especially equipped and authorized by law to
perform.
*Standard Financial Information Structure (SFIS)
The SFIS is a comprehensive data structure that supports requirements for budgeting,
financial accounting, cost/performance, interoperability, and external reporting needs across the
DoD enterprise. It is a common business language that enables budgeting, performance-based
management, and the generation of financial statements. SFIS standardizes financial reporting
across DoD and allows revenues and expenses to be reported by programs that align with major
goals, rather than basing reporting primarily on appropriation categories.
*Standard Line of Accounting (SLOA)
The SLOA, a series of alpha and numeric characters appearing on accounting source
documents, is a subset of the Standard Financial Information Structure (SFIS) data standard
elements. Also referred to as the accounting classification code, the SLOA is comprised of the
minimum SFIS data elements that must be exchanged for business events that have an accounting
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impact at any point from the initial commitment to the final posting in the appropriate general
ledger. This includes commitments, obligations, expenditures, and disbursements. The characters
provide the information necessary to enter transactions into DoD accounting systems.
Suballotments
Subdivisions of allotments. (See “Allotments” and “Apportionment.”)
Suspense Account
A clearing account established by the U.S. Treasury’s Financial Management Service to
temporarily hold unidentifiable general, revolving, special, or trust fund collections that belong to
the Federal Government. The funds remain in the suspense accounts until they can be reclassified
to the proper receipt or expenditure accounts. Collections should be reclassified from suspense
accounts within 60 days.
Tangible Assets
Depreciable property, plant, equipment, and software developed, manufactured, transferred
or acquired for a determinable cost meeting or exceeding the established capitalization threshold; are
used over a period (useful life) estimated to be 2 years or greater; and generally become economically
worthless (except for residual value) at the end of their estimated useful lives.
Transfer
Movement or shifting of budgetary resources from one budget account to another.
Agencies may transfer budget authority only as specifically authorized by law. For budgetary
accounting purposes, the nature of the transfer determines whether the transaction is recorded as
an expenditure transfer, which means a transfer that involves an outlay, or as a nonexpenditure
transfer, which means a transfer that does not involve an outlay.
Transportation Costs
The costs incurred for shipment of material.
Treasury Financial Communications System
The computer-to-computer link between the U.S. Treasury and the Federal Reserve Bank of
New York.
Trust Fund
A type of account, designated by law as a “trust fund,” regardless of any other meaning of
the term “trust fund.” A trust fund account is usually either a receipt, an expenditure, or a revolving
fund account (trust revolving fund account). Trust revolving fund accounts have no receipt
account and the collections are credited directly to the expenditure account.
Trust Fund Expenditure Accounts
Accounts that are established to record amounts appropriated, or otherwise made available
by transfer from a trust fund receipt account to be obligated and expended in carrying out the specific
purposes, or programs, in accordance with the terms of the trust agreement or statute.
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Trust Fund Receipt Accounts
Receipt accounts that are credited with collections (governmental receipts or offsetting
receipts) generated by the terms of a trust agreement or statute.
Trust Revolving Fund
The name given to a fund entity when a trust fund corpus is established to perform a
continuing cycle of business-type operations in accordance with the trust agreement or statute, in
which case a combined receipt and expenditure account is used.
Undelivered Orders
The value of goods and services ordered and obligated that have not been received. This
amount includes any orders for which advance payment has been made but for which delivery or
performance has not yet occurred.
*Undistributed Transactions
Undistributed disbursements or collections represent transactions that have occurred and
been reported to the Department of the Treasury but have not yet been recorded in the general
ledger of the accounting system.
Unearned Revenue
Revenue from DoD customers collected in advance of earnings and prior to delivery of goods
or services.
Unexpended Balance
The sum of the unobligated balance and the un-liquidated obligation balance of an
appropriation.
Unexpired Accounts
Appropriation or fund accounts in which the balances are available for new obligations.
Audit requirements, limitations on obligations, and reporting requirements applicable to unexpired
accounts must continue to apply after the end of the period of availability for obligation or
expenditure of that account.
Unfilled Customer Orders
The amount of orders accepted from ordering accounting entities within the U. S.
Government for goods and services to be furnished on a reimbursable basis; or, in the case of
transactions with the public, amounts collected in advance, for which the accounting entity has not
yet performed as requested.
Unfunded Cost
Costs not financed by the performing activity's current appropriations or fund accounts.
Applicable types of cost include interest on investment and accrued annual leave.
2BDoD 7000.14-R Financial Management Regulation Glossary
* September 2021
G-30
Unified Combatant Command
A unified combatant command is a military command which has broad, continuing missions
and which is composed of forces from two or more Military Departments. Unified combatant
commands are established by the President, through the Secretary of Defense, with the advice and
assistance of the Chairman, Joint Chiefs of Staff.
Unliquidated Obligation Balance
The amount of obligations that have not been liquidated by payments (disbursements).
*Unmatched Transactions
A disbursement and/or collection transaction that has been received and accepted by an
accounting office, but has not been matched to the correct detail obligation. This includes
transactions that have been rejected back to the paying office or central disbursement clearing
organization by an accounting office.
A. Unposted Unmatched: Transaction (disbursement or collection) that has
been reported to the Treasury Central Accounting Reporting System (CARS) and has been
received and processed by an accounting system, but was unable to post to Fund Balance with
Treasury (FBWT) 101000 and point account in the accounting system general ledger because it
failed to match a detailed document obligation or work order.
B. Posted Unmatched: Transaction (disbursement or collection) that has been
reported to the Treasury CARS, has been received and processed by an accounting system, and
posted to FBWT 101000 and point account in the accounting system general ledger, but failed to
match a detailed document obligation or work order.
Unobligated Balance
The cumulative amount of budget authority in an unexpired account that is not obligated
and that remains available for obligation under law.
Unrecorded Obligations
Obligations that were incurred legitimately during the period of fund availability, but were
not recorded in the Component’s records prior to expiration or cancellation of the appropriation or
fund. For purposes of this guidance, “unrecorded” obligations are included in obligation
adjustments. Current accounts may be used to pay previously unrecorded obligations chargeable
to a closed account.
User
An individual, organization, or accounting entity that receives services. A user may be
internal or external to the DoD Component.
Warehousing
Costs normally incurred for labor, materiel, or services in packing item(s) that are removed
from DoD storage, preparing item(s) for shipment, and processing related materiel release
documents.
2BDoD 7000.14-R Financial Management Regulation Glossary
* September 2021
G-31
Withdrawal
The transfer of the unobligated balance from an expired annual or multiple-year
appropriation to the surplus account of the U.S. Treasury's general fund, or, if appropriate, to the
special fund or trust fund from which derived.
Write off
As a budgetary term, write-off means the withdrawal from availability for obligation of an
unobligated balance from a no-year appropriation. It excludes amounts withdrawn from expired
accounts and amounts rescinded by the Congress. As an accounting term, write-off refers to the
removal of a delinquent accounts receivable that is considered not collectible or not cost effective to
pursue further collection efforts. A write-off is not a correction to the accounting records resulting
from an accounting error.
Work in Process
Costs of the materials, labor, and indirect costs used in producing an end item (customized
equipment or personal property), whether fabricated by a DoD working capital fund or by a non-DoD
organization under contract.
Year-end Adjustments for Reimbursements
Accounting entries made to eliminate anticipated reimbursements for orders not accepted,
eliminate those unobligated accepted orders that are no longer valid obligations of the ordering
activity, and transfer valid unobligated reimbursable balances from expiring and non-expiring
accounts to the most current ensuing fiscal year accounts. The exception is for unobligated balances
resulting from earned reimbursements (that is, sales from inventory or performance of in-house
services), which must be retained in non-expiring accounts until account expiration.
