THRESHOLD CONCEPT

Much time and effort has been spent by the OPTAR holders and the FAADC in researching and verifying or correcting all transactions appearing in the various transaction listings. Due to the volume of transactions, significant processing delays by both parties have in the past resulted in unworkable backlogs of corrections to the official accounting records. Therefore, threshold procedures have been established to prevent spending undue time and effort on small dollar transactions for operation and maintenance material and services. The dollar level at which the threshold is established is a management prerogative of the fleet commanders. Currently, the threshold is $100 per order in both Atlantic and Pacific Fleets. Under this procedure, when a below threshold category expenditure document ($100 and less) does not match with a corresponding unfilled order document during the second monthly reconciliation process, the FAADC is authorized to lodge the charge against the OPTAR holder without achieving a match. Expenditure documents above threshold ($100 and above) are charged to the OPTAR under similar procedures, if remaining unmatched during the second monthly reconciliation process. These above and below threshold charged expenditures are reported to the OPTAR holder as part of the difference by the FAADC on the Summary Filled Order/Expenditure Difference Listing (SFO/EDL). In addition, the OPTAR holder is authorized to administratively cancel unfilled orders when material has been received 60 days before the date of the Aged Unfilled Order Listing, thereby permitting recoupment of OP-TAR funds on the assumption that either the expenditure has been threshold charged or that no expenditure document will be received. The $100 value per line item has equal application in the review and validation or rejection of expenditures charged to open operating budget transactions.

GENERAL FUNDING AND ACCOUNTING

The TYCOMs issue an operating budget from the applicable FYDP expense limitation to finance the operations, maintenance, administrative, and temporary additional duty (TAD) travel requirements of their own staff and of units assigned. Records are maintained to show the value of transactions incurred and the available balance of the operating budget, including the values for each OPTAR granted. In addition, submissions of budget reports are required to report the expenditures incurred by expense elements, Each ship, aviation squadron, or command issued an OPTAR is responsible for the efficient and effective use including accurate and timely accounting and reporting according to procedures outlined in NAVSO P-3013. Prompt action must be taken in the search and validation of transactions reported by the FAADC relative to the status of each OPTAR held by the command.

To accomplish these accounting and reporting requirements, copies of chargeable requisitions (unfilled orders) are forwarded by each OPTAR holder to the designated FAADC for reconciliation with corresponding expenditures. During the second monthly reconciliation process, unmatched expenditure documents for material or services below the dollar threshold amount established by the fleet commander will be automatically threshold charged to the OPTAR by the FAADC as a difference. Above threshold unmatched expenditures will also be recorded to the OPTAR in the same manner. However, if the expenditure (debit or credit) is $1,000 or greater, the transaction will be held in suspense pending validation by the FAADC. Expenditures applicable to reimbursable OPTARS are exceptions to the threshold concept and require reconciliation with corresponding unfilled orders in every case. Since the threshold charge procedure has the effect of reducing the OPTAR balances, threshold procedures are also applied to aged unfilled orders, which allow for administrative cancellation and reclamation of OPTAR funds.

Therefore, upon receipt of the various transaction listings from the FAADC, it is necessary that the OPTAR holder initiate the required validation and specified action to make sure the maximum use is made of the OPTAR funds provided. The accuracy and timeliness of OPTAR record-keeping and reporting determine the accuracy and timeliness of financial management information available to each successive level of command for management of available resources. Figure 2-7 shows the flow of accounting data.

REQUISITION ACCOUNTING DATA

A fund code is cited on all requisitions to identify the chargeable operating budget and expense element. The accounting data is entered on each purchase document and on all other supply documents that require a complete field of accounting data. Travel orders, work requests, and project orders are not considered as supply documents and should be prepared according to paragraph 4403 of the NAVSO P-3013-2. Each of the nine data fields of a complete line of accounting requires a specific number of data elements to complete its data field. When a data field does not contain sufficient digits to completely fill the data field, zeros are entered preceding the first significant digit to complete the field. When a data field is not required, zeros are entered to completely fill the data field. Country codes are NOT considered as one of the nine data fields of a complete line of accounting data and blocks printed with the term country are to be left blank. The disbursing office assigns the country codes according to the NAVCOMPT Manual, paragraphs 027002 and 046027.

Here is an example of a complete line of accounting data (for material or services) with an explanation of each element.

Figure 2-7.-Flow of accounting data.

Fund codes and accounting classifications for use by the Operating Forces are contained in appendix II of NAVSO P-3013.