BY ORDER OF THE AIR FORCE INSTRUCTION 65-601, SECRETARY OF ...

[Pages:413]BY ORDER OF THE SECRETARY OF THE AIR FORCE

AIR FORCE INSTRUCTION 65-601, VOLUME 1

16 AUGUST 2012 Incorporating Change 1, 29 July 2015

Financial Management

BUDGET GUIDANCE AND PROCEDURES

COMPLIANCE WITH THIS PUBLICATION IS MANDATORY

ACCESSIBILITY: Publications and forms are available for downloading or ordering on the e-Publishing website at e-Publishing.af.mil.

RELEASABILITY: There are no releasability restrictions on this publication.

OPR: SAF/FMBMM Supersedes: AFI65-601V1, 3 March 2005

Certified by: SAF/FMB (MGen Edward L. Bolton, Jr.)

Pages: 413

This instruction aligns with and implements AFPD 65-6, USAF Budget Policy. Volume 1 contains rules and procedures for using Air Force appropriated funds. In cases of conflict with other Air Force instructions or policy directives, the funding propriety rules stated here take precedence. This publication applies to all military and civilian Air Force personnel, including the US Air Force Reserve, Air National Guard (ANG), and the Civil Air Patrol.

Refer recommended changes and questions about this publication to SAF/FMBMM using the AF Form 847, Recommendation for Change of Publication; route AF Form 847s from the field through the appropriate functional's chain of command. Ensure that all records created as a result of processes prescribed in this publication are maintained in accordance with AFMAN 33363, Management of Records, and disposed of in accordance with the Air Force Records Disposition Schedule (RDS) located at .

SUMMARY OF CHANGES

This interim change revises AFI 65-601, Volume 1, by (1) adding the Defense Working Capital Fund (DWCF) will not fund the movement of DWCF materiel moving to a Centralized Repair Facility (CRF) to be repaired/refurbished or from a CRF back to the point of use, (2) stating the Second Destination Transportation (SDT) Centrally Managed Allotment (CMA) will also be used to fund Repair Network Manager (RNM) directed shipments to/from CRFs in support of the

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AFI65-601V1 16 AUGUST 2012

Repair Network Enterprise, and (3) to update tables 18.1 and 18.2. A margin bar (|) indicates changed material.

Chapter 1-- FINANCIAL MANAGEMENT IN THE AIR FORCE

27

1.1. Overview................................................................................................................. 27

1.2. Applying This Instruction. ...................................................................................... 27

1.3. Responsibilities. ...................................................................................................... 27

1.4. Related Guidance. ................................................................................................... 27

Chapter 2-- WARRANTS, APPORTIONMENTS, TRANSFERS, AND

REPROGRAMMING

28

2.1. Overview................................................................................................................. 28

2.2. Responsibilities:...................................................................................................... 28

2.3. Reprogrammings:.................................................................................................... 28

2.4. Congressional New Start Notification Procedures.................................................. 29

2.5. Deferrals and Rescissions. ...................................................................................... 31

Chapter 3-- BUDGET AUTHORIZATION, ALLOCATIONS, AND ALLOTMENTS

32

3.1. Administering Budget Authority Documents: ........................................................ 32

3.2. Basis for Budget Authorizations:............................................................................ 33

3.3. Expired Year Budget Authorizations. ..................................................................... 33

3.4. Using Allocations and Suballocations: ................................................................... 33

3.5. Using Allotments and Suballotments: .................................................................... 34

3.6. Issuing Budget Authorizations and Allocations...................................................... 34

3.7. Operating Centrally Managed Allotments (CMA): ................................................ 36

3.8. Year-End Adjustments:........................................................................................... 37

3.9. Using AF Form 401, Budget Authority/Allotment:................................................ 38

3.10. Locally Prescribed Forms and Formats. ................................................................. 39

3.11. Emergency Funding Actions................................................................................... 40

Figure 3.1. Designation of Appropriation Managers. ............................................................... 40

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3

Chapter 4-- BUDGETING AND FUNDING GUIDANCE FOR VARIOUS

APPROPRIATIONS

42

Section 4A-- Obligating Funds During the Last Two Months of the Fiscal Year.

42

4.1. Applying the 20-Percent Limit on Obligations....................................................... 42

Figure 4.1. Exceptions to the 20-Percent Limit on Obligations in August and September....... 42

4.2. This paragraph intentionally left blank. .................................................................. 42

Section 4B-- Information Technology Equipment (ITE) and Resources

43

4.3. Budgeting and Funding for General Purpose ITE. ................................................. 43

4.4. O&M Funded Facilities and Activities. .................................................................. 44

4.5. RDT&E Funded Facilities and Activities. .............................................................. 46

4.6. Defense Working Capital Fund (DWCF) Facilities and Activities. ....................... 46

4.7. Site Preparation....................................................................................................... 46

Table 4.1. Funding for Information Technology Equipment (ITE) Site Preparation. ............. 46

4.8. Embedded Computers............................................................................................. 46

4.9. Funding Other Equipment with Computers. ........................................................... 49

4.10. Information Technology (IT) ? Summary Considerations. .................................... 49

Table 4.2. Information Technology ? Major Considerations (not sequential)......................... 49

Section 4C-- Honoraria

49

4.11. Approving Honoraria and Speaking Fees. .............................................................. 50

Table 4.3. Honoraria Approval Thresholds. ............................................................................ 50

Section 4D-- Emergency and Special Program (ESP) Codes

51

Table 4.4. Assigning ESP Codes. ............................................................................................ 51

4.12. Reserved For Future Use. ....................................................................................... 51

4.13. Using ESP Codes: ................................................................................................... 51

Section 4E-- Technical Data

51

4.14. Financing the Procurement and Printing of Technical Data. .................................. 51

4.15. Funding Engineering Drawing Requirements: ....................................................... 53

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4.16. Commercial Manuals. ............................................................................................. 53

4.17. Technical Data for Replenishment Spares Procurement......................................... 53

4.18. Technical Data for Common Support Equipment................................................... 54

Section 4F-- Space Launch Support Services

54

4.19. Financing Launch Services. .................................................................................... 54

4.20. Propellants Funding. ............................................................................................... 54

Section 4G-- Organizational, Intermediate, and Depot Logistic Support Provided By Contractors 54

4.21. Funding Contractor Support Programs: .................................................................. 54

4.22. Determining the Funds Chargeable. ....................................................................... 56

Section 4H-- Prompt Payment Act (P.L. 97-177, 5CFR Part 1315, 31 U.S.C. Section 3901-3906) 56

4.23. Financing Prompt Payment Charges:...................................................................... 56

4.24. Assigning Data Elements:....................................................................................... 57

Section 4I-- Telephone System Costs

58

4.25. Funding Advance Deposits for Installation Costs of Telephone Cable Required for New Family Housing. ........................................................................................ 58

4.26. Funding Other Telephone Activities:...................................................................... 58

Figure 4.2. Funding for Installation and Maintenance of Telephone Wiring Used for Commercial "Unofficial" Telephone Service. ......................................................... 60

Section 4J-- USAF Heritage Program

60

4.27. USAF Heritage Program (USAFHP) and associated activities. ............................. 62

Section 4K-- Ethnic and Holiday Observances, Traditional Ceremonies, and Entertainment

63

4.28. Ethnic and Holiday Observances Funding Guidance: ............................................ 63

4.29. Traditional Ceremonies........................................................................................... 63

4.30. Entertainment.......................................................................................................... 65

Section 4L-- Awards, Award Ceremonies and Gifts

66

4.31. Awards and Gifts. ................................................................................................... 66

4.32. Civilian Performance Awards................................................................................. 69

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4.33. Refreshments at Awards Ceremonies. .................................................................... 69

Section 4M-- Chapel and Chaplain Programs

71

4.34. Funding Guidance................................................................................................... 71

Section 4N-- Criteria for Determining Expense and Investment Costs

71

4.35. Distinguishing Between Expense and Investment Costs. ....................................... 71

4.36. Investment Cost Decision. ...................................................................................... 72

Figure 4.3. Decision Making Factors for Investment Cost. ...................................................... 72

Section 4O-- Licencing of Intellectual Property

73

4.37. Application.............................................................................................................. 73

4.38. Programmatic Directives. ....................................................................................... 73

4.39. Accounting.............................................................................................................. 73

4.40. Fee/Royalty Purposes. ............................................................................................ 73

4.41. Excess Fees/Royalties............................................................................................. 73

4.42. Accounting Codes................................................................................................... 73

Section 4P-- Other Guidance

74

4.43. Personalized Stationery........................................................................................... 74

4.44. Business and Greeting Cards: ................................................................................. 74

4.45. Housing Damage Liability:..................................................................................... 75

4.46. Buying Books, Periodicals, Newspapers and Pamphlets: ....................................... 75

4.47. Funding Consecutive Overseas Tours. ................................................................... 75

4.48. Appliances and Furnishings. ................................................................................... 75

4.49. Retiree Activities Programs. ................................................................................... 75

Section 4Q-- Meals, Conferences, Training, and Fees

76

4.50. Use of Appropriated Funds for Meals and Light Refreshments. ............................ 76

4.51. Funding for Air Force Sponsored Conferences. ..................................................... 77

4.52. Non-government Sponsored Conferences. ............................................................. 78

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AFI65-601V1 16 AUGUST 2012

4.53. Government (non-Air Force) Sponsored Conferences. .......................................... 78

4.54. Avoiding Double Recovery for Meals. ................................................................... 79

4.55. Scientific, Technical, and Professional Symposiums, Conferences, and Similar Meetings................................................................................................................... 79

4.56. Veterinary Services:................................................................................................ 79

4.57. Membership in Professional Organizations. ........................................................... 79

4.58. Special Drinking Water........................................................................................... 80

4.59. CREEK SWEEP Credits......................................................................................... 80

4.60. Licenses and Certificates for Military Members..................................................... 81

4.61. Service Contracts Crossing Fiscal Years. ............................................................... 81

4.62. Air Navigation and Overflight Fees........................................................................ 82

4.63. Landing and Parking Fees....................................................................................... 82

4.64. Funding for Athletic Supplies and Fitness Equipment. .......................................... 82

4.65. Real Property Damage Recovery. ........................................................................... 83

4.66. Undefinitized Contractual Actions (UCA). ............................................................ 83

4.67. U.S. Flag for Active Duty Military Retirees........................................................... 83

4.68. Memorials and Monuments. ................................................................................... 84

4.69. Cable TV in Dormitories. ....................................................................................... 84

4.70. Heart Link Program. ............................................................................................... 84

4.71. Temporary Authority to Hire Contract Security Guards. ....................................... 84

4.72. Exemption of Certain Firefighting Contracts from Prohibition on Contracts for Performance of Firefighting Functions. ................................................................... 84

Section 4R-- Planning and Tracking Obligations and Outlays

85

4.73. Supplementing OSD Appropriations (97X) with O&M 3400 Funds. .................... 85

4.74. Submitting Outlay Plans. ........................................................................................ 85

4.75. Planning: ................................................................................................................. 85

4.76. Tracking. ................................................................................................................. 86

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Chapter 5-- APPROPRIATION REIMBURSEMENTS AND REFUNDS

87

Section 5A-- Appropriation Reimbursements

87

5.1. General Reimbursement Guidance: ........................................................................ 87

5.2. Responsibilities for Developing Anticipated Reimbursements: ............................. 87

5.3. Responsibilities for Earning Anticipated Reimbursable Programs......................... 88

5.4. Funding Procedures and Application...................................................................... 88

Table 5.1. 3010/3011/3020/3080 Appropriations To Be Charged or Credited For The Purchase or Sale of Investment Items To Fill Customer Orders.............................. 90

5.5. Billing and Collecting Small Amounts: .................................................................. 93

5.6. Reporting Instructions: ........................................................................................... 93

5.7. Statutory Authorities. Attachment 1 (Public Laws) to this AFI shows statutory authorities for appropriation reimbursements commonly used in DoD................... 93

5.8. Obtaining Materiel, Work, or Services from Others............................................... 93

5.9. Deobligation, Reimbursable Economy Act Orders (31 U.S.C. 1535). ................... 94

5.10. Security Assistance Program Reimbursements....................................................... 94

Section 5B-- Appropriation Refunds

95

5.11. Using Refunds......................................................................................................... 95

5.12. Examples of Appropriation Refunds: ..................................................................... 95

5.13. Refunds Receivable. ............................................................................................... 96

5.14. Disposing of Refunds.............................................................................................. 96

5.15. Other Refunds. ........................................................................................................ 97

Section 5C-- Administrative and Accessorial Costs

97

5.16. Special Guidance. ................................................................................................... 97

5.17. Charging Accessorial Costs. ................................................................................... 97

Figure 5.1. Accessorial Charge Rates. ...................................................................................... 98

5.18. Contract Cost Billings............................................................................................. 98

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AFI65-601V1 16 AUGUST 2012

Chapter 6-- EXPIRED AND CANCELED APPROPRIATIONS

100

6.1. Applying this Chapter. ............................................................................................ 100

6.2. Applying Changes in the Appropriation Life Cycle: .............................................. 100

6.3. Determining Contract Changes and Upward Obligation Adjustments (UOA)....... 100

Figure 6.1. Decision Tree - Contract Changes and Obligation Adjustments. ........................... 105

6.4. Using Current and Expired Appropriations. ........................................................... 106

6.5. Controlling Current Appropriation Limitations:..................................................... 107

6.6. Approving Upward Obligation Adjustments and Contract Change Requests: ....... 109

6.7. Processing Unrecorded Obligations and Payments: ............................................... 110

6.8. Complying with the Antideficiency Act. ................................................................ 110

6.9. Handling Foreign Currency Fluctuation Obligations and Payments: ..................... 111

6.10. Using Other DoD Appropriations:.......................................................................... 111

6.11. Obligating Upward Adjustments in the Accounting System: ................................. 112

6.12. Reviewing Unliquidated Obligation (ULO) Balances in the Expired Years: ......... 112

6.13. Charging Prior Year Obligated Due-Outs: ............................................................. 113

6.14. Reprogramming. ..................................................................................................... 114

6.15. Complying With Control Levels in Expired Accounts:.......................................... 115

6.16. Collections. ............................................................................................................. 116

6.17. Monthly and Fiscal Year-end Reporting Requirements for Transactions under $100,000. ................................................................................................................. 116

Chapter 7-- SUPPORT GUIDANCE

118

Section 7A-- Overview

118

7.1. Applying This Chapter............................................................................................ 118

7.2. Complying with Statutory Authority. ..................................................................... 118

7.3. Responsibilities:...................................................................................................... 118

Section 7B-- Intraservice Relationships (Within the Air Force)

120

7.4. General Host-Tenant Responsibilities: ................................................................... 120

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