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Questions and Answers
What is the significance of the * symbol in the document's table?
What is the significance of the * symbol in the document's table?
- It denotes a change in formatting.
- It indicates a substantive revision. (correct)
- It marks the end of a section.
- It highlights hyperlinks to external resources.
Why was the order of definitions rearranged in the document?
Why was the order of definitions rearranged in the document?
- To simplify the language used in definitions.
- To add more definitions.
- To comply with new regulations.
- To enhance understanding of the process. (correct)
What is the date of the previous version of this document?
What is the date of the previous version of this document?
- June 2020
- September 2019 (correct)
- November 2021
- March 2022
What does 'hyperlinks are denoted by bold, italic, blue, and underlined font' indicate?
What does 'hyperlinks are denoted by bold, italic, blue, and underlined font' indicate?
What does the abbreviation 'DoD' stand for in the context of this document?
What does the abbreviation 'DoD' stand for in the context of this document?
What is the purpose of the substantive revisions noted in the document?
What is the purpose of the substantive revisions noted in the document?
What is the main focus of Volume 6A, Chapter 7?
What is the main focus of Volume 6A, Chapter 7?
Which section outlines the definitions related to foreign currency management?
Which section outlines the definitions related to foreign currency management?
What document is associated with reporting foreign currency fluctuations in Monthly reports?
What document is associated with reporting foreign currency fluctuations in Monthly reports?
Which reporting guideline focuses on the correction of report errors?
Which reporting guideline focuses on the correction of report errors?
What is a key requirement stated under the reporting formats section?
What is a key requirement stated under the reporting formats section?
What type of report is referred to as 'FCF, D'?
What type of report is referred to as 'FCF, D'?
What does the section on appropriations transfers primarily address?
What does the section on appropriations transfers primarily address?
Which of the following is NOT listed under the reporting formats section?
Which of the following is NOT listed under the reporting formats section?
What should be charged to the applicable FCF account when payment is made?
What should be charged to the applicable FCF account when payment is made?
How should obligations be recorded in the accounting system for a military construction project funded in FY 2018?
How should obligations be recorded in the accounting system for a military construction project funded in FY 2018?
What happens to the military construction FCF account prior to FY 2019 when no disbursements are made?
What happens to the military construction FCF account prior to FY 2019 when no disbursements are made?
What is used to identify the projected disbursement requirements of the component FCF account?
What is used to identify the projected disbursement requirements of the component FCF account?
When is the realized foreign currency variance recorded against the military construction FCF account?
When is the realized foreign currency variance recorded against the military construction FCF account?
Who is responsible for determining the total foreign currency unliquidated obligations at the budget exchange rate?
Who is responsible for determining the total foreign currency unliquidated obligations at the budget exchange rate?
What is the primary purpose of establishing Foreign Currency Fluctuation (FCF) accounts?
What is the primary purpose of establishing Foreign Currency Fluctuation (FCF) accounts?
Which legislative act initially established the Foreign Currency Fluctuation program?
Which legislative act initially established the Foreign Currency Fluctuation program?
Which office grants specific written exceptions to the provisions of the FCF chapter?
Which office grants specific written exceptions to the provisions of the FCF chapter?
What do FCF accounts allow service components to manage?
What do FCF accounts allow service components to manage?
Who manages the FCF, D and FCF, C, D appropriations?
Who manages the FCF, D and FCF, C, D appropriations?
Which of the following statements about the FCF appropriations is NOT true?
Which of the following statements about the FCF appropriations is NOT true?
What form is used for the Nonexpenditure Transfer Authorization?
What form is used for the Nonexpenditure Transfer Authorization?
What should not be adjusted due to fluctuations in foreign currency exchange rates?
What should not be adjusted due to fluctuations in foreign currency exchange rates?
What is the codified title for the Public Law that established the FCF program?
What is the codified title for the Public Law that established the FCF program?
Which of the following is a key component of program management concerning FCF accounts?
Which of the following is a key component of program management concerning FCF accounts?
When must the components holding an FCF account review the status of that account?
When must the components holding an FCF account review the status of that account?
What is typically included in a component’s annual funding authorization related to FCF accounts?
What is typically included in a component’s annual funding authorization related to FCF accounts?
Which of the following is true regarding recalculating obligations for reimbursable programs?
Which of the following is true regarding recalculating obligations for reimbursable programs?
What is required when notifying the benefiting activity of obligated amounts requiring payment in foreign currency?
What is required when notifying the benefiting activity of obligated amounts requiring payment in foreign currency?
What is true regarding adjustments to the original obligation until disbursement is made?
What is true regarding adjustments to the original obligation until disbursement is made?
What must the performing activity do regarding the foreign currency exchange rate?
What must the performing activity do regarding the foreign currency exchange rate?
Study Notes
Major Changes Summary
- Reorganization of definitions for better clarity and understanding.
- Changes identified in blue font, substantive revisions marked with an asterisk (*).
- Archived previous version dated September 2019.
Chapter Overview
- Discusses foreign currency reports and related financial management regulations.
- Focuses on FCF (Foreign Currency Fluctuation) accounts established to mitigate budget impacts due to currency fluctuations.
Purpose of Chapter
- Establishes requirements for tracking transactions affecting FCF accounts.
- Aims to protect the DoD budget from substantial currency-related gains and losses.
Authoritative Guidance
- Rooted in the DoD Appropriation Act of 1979, Public Law 95-457.
- Codified under Title 10, United States Code, § 2779.
Program Management
- Applies to all DoD Components, unless exceptions are granted by OUSD(C).
Definitions
- FCF Account: Used to manage gains and losses from foreign exchange fluctuations.
- Funding provided as part of annual budget, variances charged to applicable FCF accounts.
Reporting Requirements
- Appropriation Transfers: Managed by OUSD(C), funds transferred by DFAS using Standard Form 1151.
- General Reporting Guidance: Variances calculated monthly; adjustments only made upon disbursement or appropriation closure.
- Specific guidance for reimbursable programs and recording obligations at current exchange rates.
Specific Regulations
- FCF requirements exempt for reimbursable programs.
- No adjustments to operating budgets for fluctuations in exchange rates.
- Year-end review of FCF account status required for each component.
Reporting Formats
- Mandates specific reporting formats (e.g., DD-COMP (M) 1506 for fluctuations).
- Figures included to illustrate foreign currency fluctuation reports.
Additional Notes
- DFAS determines total foreign currency unliquidated obligations using budget exchange rates.
- Realized foreign currency variances recorded in FCF accounts at the time of disbursement.
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Description
Test your knowledge on the major changes in Volume 6A, Chapter 7 of the DoD 7000.14-R Financial Management Regulation, focusing specifically on foreign currency reports. This quiz covers substantive revisions and the implications of those changes as outlined in the latest October 2022 update.
