DoDFMR Vol 6A: Reporting Policy

Questions and Answers

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?

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?

June 2020

September 2019 (correct)

November 2021

March 2022

What does 'hyperlinks are denoted by bold, italic, blue, and underlined font' indicate?

They provide links to related content. Signup and view all the answers

What does the abbreviation 'DoD' stand for in the context of this document?

Department of Defense Signup and view all the answers

What is the purpose of the substantive revisions noted in the document?

To provide clearer guidance and operations. Signup and view all the answers

What is the main focus of Volume 6A, Chapter 7?

Guidelines for foreign currency reports Signup and view all the answers

Which section outlines the definitions related to foreign currency management?

Program Management Signup and view all the answers

What document is associated with reporting foreign currency fluctuations in Monthly reports?

DD-COMP (M) 1506 Signup and view all the answers

Which reporting guideline focuses on the correction of report errors?

Report Error Correction Signup and view all the answers

What is a key requirement stated under the reporting formats section?

Format compliance with DD-COMP guidelines Signup and view all the answers

What type of report is referred to as 'FCF, D'?

Foreign Currency Fluctuation Report for DoD activities Signup and view all the answers

What does the section on appropriations transfers primarily address?

Procedures for transferring funds between accounts Signup and view all the answers

Which of the following is NOT listed under the reporting formats section?

Annual Financial Audit Report Signup and view all the answers

What should be charged to the applicable FCF account when payment is made?

The variance between the budget rate and the current rate Signup and view all the answers

How should obligations be recorded in the accounting system for a military construction project funded in FY 2018?

Using the FY 2017 budget rates Signup and view all the answers

What happens to the military construction FCF account prior to FY 2019 when no disbursements are made?

There is no effect on the account Signup and view all the answers

What is used to identify the projected disbursement requirements of the component FCF account?

The accrued variance from obligations at the FY 2017 budget rate Signup and view all the answers

When is the realized foreign currency variance recorded against the military construction FCF account?

At the time of the actual disbursements Signup and view all the answers

Who is responsible for determining the total foreign currency unliquidated obligations at the budget exchange rate?

The Defense Finance and Accounting Service (DFAS) Signup and view all the answers

What is the primary purpose of establishing Foreign Currency Fluctuation (FCF) accounts?

To mitigate the impact of currency fluctuations on the DoD budget Signup and view all the answers

Which legislative act initially established the Foreign Currency Fluctuation program?

Public Law 95-457 Signup and view all the answers

Which office grants specific written exceptions to the provisions of the FCF chapter?

Office of the Under Secretary of Defense (Comptroller) Signup and view all the answers

What do FCF accounts allow service components to manage?

Realized gains and losses due to currency fluctuations Signup and view all the answers

Who manages the FCF, D and FCF, C, D appropriations?

OUSD(C) Signup and view all the answers

Which of the following statements about the FCF appropriations is NOT true?

FCF appropriations can completely eliminate currency fluctuations. Signup and view all the answers

What form is used for the Nonexpenditure Transfer Authorization?

Standard Form 1151 Signup and view all the answers

What should not be adjusted due to fluctuations in foreign currency exchange rates?

Normal operating budgets Signup and view all the answers

What is the codified title for the Public Law that established the FCF program?

Title 10, United States Code, section 2779 Signup and view all the answers

Which of the following is a key component of program management concerning FCF accounts?

Maintaining realized gains and losses from exchanges Signup and view all the answers

When must the components holding an FCF account review the status of that account?

Prior to closing financial records at year-end Signup and view all the answers

What is typically included in a component’s annual funding authorization related to FCF accounts?

A budgetary line item for funding Signup and view all the answers

Which of the following is true regarding recalculating obligations for reimbursable programs?

No adjustments are necessary for direct programs. Signup and view all the answers

What is required when notifying the benefiting activity of obligated amounts requiring payment in foreign currency?

Recording at the budget rate. Signup and view all the answers

What is true regarding adjustments to the original obligation until disbursement is made?

No adjustments are required until disbursement or account closure. Signup and view all the answers

What must the performing activity do regarding the foreign currency exchange rate?

Bill for reimbursement at the current foreign currency exchange rate. Signup and view all the answers

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.