Foreign military sales : O&MN appropriations are subsidizing accessorial costs

Abstract

The rapid expansion of the Foreign Military Sales (FMS) program during the 1970's dramatized the need for adequate measures to recoup the costs of sales of defense stocked material. In implementing FMS cases the U.S. Navy utilizes the same resources and support organizations that are employed to manage and implement U.S. Navy support programs. To reimburse the O&MN appropriated funds used to finance the FMS transactions, a universal language must be utilized to transmit expenditure information to the billing, collecting and accounting activity, the Security Assistance Accounting Center (SAAC) . Accuracy of the information is critical for the full recoupment of expenditures. The thesis addresses the problems associated with the accuracy of expenditure information for the recoupment of packing, crating, handling and transportation costs incurred by U.S. Navy activities. To improve the accuracy of expenditure information, recommendations are made for the Navy to utilize the previously established transportation billing code (TBC).