FINANCIAL RECORDS

The duties and responsibilities of the financial recordskeeper are vitally important, especially at Shipboard Uniform Automated Data Processing System-Real Time (SUADPS-RT) activities. The financial recordskeeper performs both end-use OPTAR accounting and Defense Business Operations Fund (DBOF) accounting. TYCOMs issue separate OPTARs for the operation and maintenance of the activity, for the repair of other vessels, and for flight operations. These

OPTARS are administered and reported as prescribed by the Financial Management of Resources Operating Procedures (Operating Forces), NAVSO P-3013. The

DBOF is administered and reported as prescribed by various Naval Supply Systems Command (NAVSUP), Navy Comptroller (NAVCOMPT), and DFAS-CL manuals. The financial recordskeeper must recognize that the OPTAR funds are separate from the DBOF. However, there is a relationship between these two funds that must be understood.

DEFENSE BUSINESS OPERATIONS FUND (DBOF)

The DBOF is a consolidation of the Navy Stock Fund (NSF) and the Navy Industrial Fund (NIF). The term DBOF replaces the terms NSF, NIF, and Navy Stock Account (NSA). However, other documentation, reports and associated correspondence may continue to refer to NSA, NSF, or NIF.

The DBOF is a revolving fund established by Congress to purchase material carried in stock ashore as inventory by the Navy stock points, and material carried afloat by destroyer tenders (ADs), repair ships (ARs), submarine tenders (ASs), combat stores ships (AFSs), aircraft carriers (CVs), nuclear-powered aircraft carriers (CVNs), amphibious assault ships (LPHs), helicopter assault landing ships (LHAs), and marine air groups (MAGs). These activities spend DBOF dollars to procure items expended to an end-use customer. The fund is reimbursed when material is requisitioned for use by charging the customer's OPTAR and crediting the DBOF. This transaction returns the money to the DBOF so that replacement material may be purchased and the revolving fund continued, as shown in figure 6-3.

The DBOF also finances the operations that were previously managed under the Navy Industrial Fund (NIF). These are the operations of all industrial-type or commercial-type activities approved by the Secretary of Defense as specific projects under the fund.

The operations of the DBOF are governed by the regulations of the Office of Secretary of Defense. Any request for exceptions is submitted to the Comptroller of the Navy via the Naval Supply Systems Command (NAVSUPSYSCOM).

SPECIAL ACCOUNTING CLASS (SAC) 207

The activities operating under SUADPS-RT procedures are considered intermediate supply facilities. These SUADPS-RT activities are authorized to carry DBOF items as inventory material. This material is categorized as SAC-207 material to separate

Figure 6-3.-The DBOF revolving fund.

them from material carried in other special account classes. The SAC-207 activities include afloat units such as tenders, repair ships, combat stores ships, aircraft carriers, amphibious assault ships, and marine air groups.

Transactions

The SUADPS-RT activities use DBOF to requisition material for stock or direct turn-over (DTO) by citing a SAC-207 fund code on the external requisitions. When the material is received, it is recorded as a receipt in the DBOF. When the material is issued, the OPTAR fund of the end-user is charged to reimburse the DBOF. This is done by citing the activity's UIC and the TYCOM's fund code on the issue document, resulting in a charge to the OPTAR funds and

a reimbursement to the DBOF. For DTO receipts, the SUADPS-RT computer will process the receipt into the SAC 207 fund and generate a charge to the end user's OPTAR fund.

When a SUADPS-RT activity issues material to an end-use funded activity, charges are made to the receiving activity's OPTAR by citing the activity's OPTAR and the TYCOM's fund code on the issue document. This results in a charge to the customer's OPTAR and a reimbursement to the DBOF.

When there is an issue of DBOF material from one SUADPS-RT activity to another SUADPS-RT activity, the requisition is processed as an Other Supply Officer (OSO) transfer.

Financial Reports

Activities stocking DBOF material are required to submit a financial inventory return monthly to the appropriate accounting office. The financial inventory report (FIR) is an accounting of the value of the DBOF SAC 207 inventory of the activity submitting the report. The FIR data is reported to the Defense Finance Accounting Service (DFAS) through the Defense Accounting Office (DAO). All the transactions that change the value of the SAC 207 inventory are posted to the FIR for reporting. The three types of FIRs maintained in SUADPS-RT are as follows:

APA FIR.- The appropriation purchase account (APA) provides the FIR code value for all items with a cognizant symbol starting with an even number. The APA FIR is the official accounting that is forwarded to the type commander (not to DAO) monthly for statistical purposes only.

NSA FIR.- The NSA FIR provides the FIR code values for all items with cognizant symbol starting with an odd number. The NSA FIR is forwarded monthly with the supporting documentation to the DAO for stores accounting of DBOF.

END-USE FIR.- The end-use FIR gives the money value including the value of transactions for items with cognizance symbols starting with 7. The end-use FIR is submitted to the type commander (not to DAO) on a monthly basis.

A copy of the financial report will be retained by the reporting activity. This report should be filed in a single binder for reference and should be kept for a period of 3 years.

The FIR codes consist of two digits that identify the types of transactions affecting the DBOF financial records. The data required for financial management reporting are accumulated by the FIR caption codes established by the transactions to the inventory. For example, different types of receipt transactions, different types of material transfers, and different types of issue transactions are assigned different FIR codes. The NAVSUP P-437, chapter 5, lists the FIR codes, their definitions, and their related transaction document identifiers (DIs).

The DAO SAC 207 Feedback Exception Reports

All receipts that are processed during a month's period are reported to DAO on the NSA Monthly Receipt Report. The DAO reconciles the activity's receipts with the abstracts, billings, or summaries for that activity. Figure 6-4 illustrates the receipts and billings document flow. The reconciliation is performed to account for the changes in the inventories of the issuing activity and the receiving SAC 207 activity. The reconciliation process prevents large losses in DBOF. The procedures ensure that SAC 207 activities submit all receipts and that all expenditures against the DBOF are valid. After the reconciliation process, the documents will fall into one of the following categories:

1. Perfectly matched documents

2. Imperfectly matched documents

3. Partially matched documents

4. Unmatched documents

After completing the monthly reconciliation process, the DAO produces the exception reports and distributes the listings to the appropriate activities. Some of the listings include the unmatched expenditure listing, unmatched receipt listing, unmatched OSO receipts, and so forth. For automated activities, the DAO also provide a magnetic tape of Unmatched receipt and expenditure records for input to SUADPS-RT unmatched expenditures (UNMEX) function. Refer to NAVSUP P-567, volume 2, for a complete list of the feedback reports produced by DAO.