Proportionate liquidating distribution

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This chapter provides an overview of SA policies and procedures for financial management. IAs must make prudent choices when expending FMS Administrative Surcharge funds.

See Do D 7000.14-R, Do D Financial Management Regulation (FMR), Volume 15, for detailed SA financial policy and procedures. In budgeting FMS Administrative Surcharge funds, priority should be placed upon providing support to IA case execution activities.

Accessorials and/or surcharges that are not included within a line item value may be referred to as “below-the-line” charges (e.g., transportation surcharge and packing, crating, and handling (PC&H)).

Do D policy is to provide a single unit estimated price for articles offered under FMS.

USG-furnished engineering services are charged directly to an FMS case as follows.

Performance of the service is necessary for production, configuration control, or reliability of the procured item.

The FMS Trust Fund is used for payments received from purchasers and disbursements made against implemented FMS cases.

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The following outlines the process for an FMS case to refund FMS Administrative Surcharge funds to the FMS Administrative Surcharge Account for the specific instances where authorized. Upon case implementation, either a journal voucher (i.e., Optional Form 1017-G, Journal Voucher, or other agency-approved form) or SF 1081, Voucher and Schedule of Withdrawals and Credits, may be used to transfer the prior disbursements from the FMS Administrative Surcharge fund cite to the FMS case fund cite.Refer to the Do D FMR, Volume 10, Chapter 10, paragraph 100201, Completion of Intra-governmental Reimbursement and Transfer Vouchers.The journal voucher or SF 1081 must be supported by and reference prior disbursement vouchers being refunded to the FMS Administrative Surcharge Account by the FMS case.The charge is based on the proportionate share of work years needed for the FMS items.The charge is pro-rated based on the ratio of items produced for FMS purchasers to the total items produced in the same time frame.

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