USG.Many of the above considerations identified for purchasers pertain to the USG FMS community also. Consistent reconciliation also allows for prompt resolution of inconsistency between what was requested and what was delivered/performed.Ĭ16.1.2.2. If there is an unanticipated cost overrun, it may adversely affect the availability of funds for other projects. Also, funding is often provided for projects in specific purchaser fiscal years. It is important to the purchaser that reconciliation occurs as expeditiously as possible in order to ensure the return of surplus funds to the purchaser for other projects and purchases, as well as enabling projects to be completed in a timely manner. Effective reconciliation serves two separate but related constituencies: the purchaser and the United States Government (USG):Ĭ16.1.2.1.

In other words, a case never closes from a DoD accounting perspective.” Reference DoD FMR Volume 15, Chapter 3 for general closure policies in addition to the information contained in this chapter.Ĭ16.1.2. However, the DoD FMR Volume 15, Chapter 3, states 'Case closure does not stop the billing/reporting process, but results in a re-categorization of the case records from active status to inactive status to ensure accessibility for recording subsequent activity.

From a practical and operational standpoint, such 'final' case closure marks the conclusion of the life of a given case. Closure occurs in the life of a case when all material was delivered, services were performed, other requirements of the Letter of Offer and Acceptance (LOA) were satisfied, known financial transactions (including collections) were completed, and the purchaser receives a final statement of account in the next DD Form 645, 'Foreign Military Sales Billing Statement'. In turn, successful reconciliation throughout the life of a case expedites case closure.Ĭ16.1.1.2. Reconciliation refers to the financial and logistical actions that ensure proper accounting, accuracy and thoroughness of data, currency of schedules, and timeliness and completeness of reporting. Two critical functions during the life of a case are reconciliation and closure.Ĭ16.1.1.1.

Introduction to Reconciliation and Closure.

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