(a) Administer the planning, programming, and budgeting system of the Department of Defense.

(b) Supervise and direct the formulation and presentation of Defense budgets, the interactions with the Congress on budgetary and fiscal matters, and the execution and control of approved budgets; and maintain effective control and accountability over the use of all financial resources of the Department of Defense.

(c) Establish and supervise the execution of uniform DoD policies, principles, and procedures (including terminologies and classifications, as necessary) for:

(1) Budget formulation and execution; financial management programs and systems; accounting and disbursing systems; cash and credit management; debt collection; financial progress and statistical reporting; and technical, organizational, and administrative matters related to contract

audit.

(2) Relationships with financial institutions, including those operating on DoD installations in the United States and overseas.

(3) International financial matters, including the adequacy of international financial agreements.

(4) Education, training, and career development of comptroller and financial management personnel.

(5) Prices for transactions involving the provision of goods and services by DoD Components, including sales to foreign governments.

(6) Access to DoD budgetary material and other records by the General Accounting Office (GAO).

(d) Provide for the design, development, and installation of management improvement programs and systems throughout the Department of Defense

by:

(1) Improving general management practices within the Department by analyzing current practices, identifying improvements that will result in management efficiencies, measuring cost savings, and implementing changes.

(2) Developing and overseeing implementation of total cost per output

standards for the Department of Defense to be used for budget, management, and productivity improvement purposes.

(3) Establishing and maintaining an internal management control program to control waste, fraud, and mismanagement.

(4) Safeguarding DoD resources against waste, fraud, and inefficiency. (5) Promoting accuracy and reliability in accounting and operating data.

(6) Evaluating the efficiency of financial operations.

(e) Serve as the Chief Financial Officer of the Department of Defense, and shall:

(1) Report directly to the Secretary of Defense on financial management matters.

(2) Oversee all financial management activities on the programs and operation of the Department of Defense.

(3) Develop and maintain an integrated DoD accounting and financial management system, including financial reporting and internal controls that:

(i) Complies with applicable accounting principles, standards, and requirements, and internal control standards established under Public Law 101-576; 104 Stat. 2838–2855 (1990) or other law.

(ii) Complies with such policies and requirements as may be prescribed by the Director of the Office of Management and Budget (OMB).

(iii) Complies with the requirements of law applicable to such systems.

(iv) Provides for:

(A) Complete, reliable, consistent, and timely information that is prepared on a uniform basis and that is responsive to the financial information needs of the Department of Defense.

(B) The development and reporting of cost information.

(C) The integration of accounting and budgeting information.

(D) The systematic measurement of performance.

(4) Make recommendations to the Secretary of Defense about the selection of a Deputy Chief Financial Officer of the Department of Defense.

(5) Direct, manage, and provide policy guidance and oversight of Department of Defense financial management

personnel, activities, and operations, including:

(i) The preparation and annual revision of the DoD plan to:

(A) Implement the 5-year financial management systems plan developed by the Director, OMB.

(B) Comply with the requirements established in Public Law 101-576; 104 Stat. 2838-2855 (1990).

(ii) The development of the Department of Defense's financial management budgets.

(iii) The recruitment, selection, and training of personnel to carry out DoD financial management functions.

(iv) The approval and management of the Department of Defense's financial management systems design or hancement projects.

en

(v) The implementation of Department of Defense's asset management systems, including systems for cash management, credit management, debt collection, and property and inventory management control.

(6) Prepare and transmit, by not later than 60 days after the submission of the audit report required by Public Law 101-576; 104 Stat. 2838-2855 (1990), an annual report to the Secretary of Defense and the Director, OMB that shall include:

(1) A description and analysis of the status of financial management by the Department of Defense.

(ii) The annual financial statements prepared under Public Law 101-576; 104 Stat. 2838-2855 (1990).

(iii) The audit report transmitted to the Secretary of Defense prepared under Public Law 101-576; 104 Stat. 2838-2855 (1990)

(iv) A summary of the reports on internal accounting and administrative control systems submitted to the President and the Congress under the amendments made by Public Law 97255; 96 Stat. 814 (1982).

(v) Other information the Secretary of Defense considers appropriate to fully inform the President and the Congress on the financial management of the Department of Defense.

(7) Monitor the financial execution of the DoD budget for actual expenditures, and prepare and submit to the Secretary of Defense timely performance reports.

(8) Review, on a biennial basis, the fees, royalties, rents, and other charges imposed by the Department of Defense for services and things of value it provides, and make recommendations on revising those charges to reflect costs incurred by it in providing those services and things of value.

(f) Exercise direction, authority, and control over the Defense Contract Audit Agency, including as follows:

(1) Advise and assist the Secretary and Deputy Secretary of Defense on administration and organization of the contract audit function within the Department of Defense.

(2) Establish and supervise uniform DoD policies, principles, and procedures for administrative matters related to contract audit.

(3) Analyze resource requirements and use of personnel to accomplish the contract audit needs of the Department of Defense.

(4) Coordinate and interface with other DoD officials having interest in the contract audit mission and related activities, including the Under Secretary of Defense (Acquisition), the Inspector General of the Department of Defense, the Secretaries of the Military Departments, and the Director of the Defense Logistics Agency.

(5) Interact with the Congress on issues involving the contract audit function of the Department of Defense, including interface with the GAO on pertinent audits.

(6) Conduct analyses, develop plans, provide advice, recommend changes, and issue guidance on DoD contract audit organization structure, charter, and management practices.

(7) Interact with the Defense industry on major areas of concern involving contract audit activity.

(g) Exercise direction, authority, and control over the Defense Finance and Accounting Service (DFAS).

(h) Perform such other functions as may be assigned by the Secretary or Deputy Secretary of Defense.

$352.5 Relationships.

(a) In the performance of §352.4, the C, DoD, shall:

(1) Coordinate and exchange information with other DoD Components having collateral or related functions.

(2) Promote coordination, cooperation, and mutual understanding of matters about assigned functions within the Department of Defense and between the Department of Defense, other Government Agencies, and the public.

(3) Serve on boards, committees, and other groups concerned with matters about assigned functions and represent the Secretary of Defense on assigned functions outside the Department of Defense.

(4) Maintain liaison with congressional budget oversight committees on all DoD budgetary and fiscal matters and serve as focal point for joint Office of Management and Budget (OMB)/OSD budget and management reviews.

(5) Use existing facilities and services, whenever practicable, to achieve maximum efficiency and economy.

(b) The C, DoD, shall be consulted as to professional qualifications of Defense Agency and DoD Field Activity Comptrollers (or equivalents) before their selection to such positions.

(c) All DoD Components shall coordinate with the C, DoD, on all matters related to the functions in § 352.4.

§ 352.6 Authorities.

(a) The C, DoD, is hereby delegated authority to:

(1) Issue DoD Instructions, DoD publications, and one-time directive-type memoranda, consistent with DoD 5025.1-M1, that implement policies approved by the Secretary of Defense in the functions assigned to the C, DoD. Instructions to the Military Departments shall be issued through the Secretaries of those Departments. Instructions to Unified and Specified Commands shall be communicated through the Chairman of the Joint Chiefs of Staff.

(2) Approve or withhold authority to obligate and expend funds authorized and appropriated by Congress for the execution of DoD programs.

(3) Obtain reports, information, advice, and assistance, consistent with

1 Copies may be obtained, at cost, from the National Technical Information Service, 5285 Port Royal Road, Springfield, VA 22161.

DoD Directive 7750.52, in carrying out assigned functions, as necessary.

(4) Communicate directly with the heads of the DoD Components. Communications to the Commanders of Unified and Specified Commands shall be transmitted through the Chairman of the Joint Chiefs of Staff.

(5) Establish arrangements for DoD participation in those nondefense governmental programs for which the C, DoD, has been assigned primary staff cognizance.

(6) Communicate with other Government Agencies, representatives of the legislative branch, and members of the public, as appropriate, in carrying out assigned functions.

(7) Provide fiscal management for the defense and military intelligence and national reconnaissance activities in accordance with part 1.11(j) of E.O. 12333 (3 CFR, 1981 Comp. p. 200).

(b) The C, DoD also is hereby delegated the authorities contained in enclosure 1 to DoD Directive 5105.363 and in enclosure 1 to DoD Directive 5118.54. The C, DoD, may redelegate these authorities, as appropriate, and in writing, except as otherwise provided by law or regulations.

(c) Other authorities specifically delegated by the Secretary of Defense are in appendix A to this part.

APPENDIX A TO PART 352-DELEGATIONS OF AUTHORITY

1. Pursuant to the authority vested in the Secretary of Defense, the C, DoD, is hereby delegated, subject to the direction, authority, and control of the Secretary of Defense, authority to:

a. Approve requests to hold cash at personal risk for authorized purposes, including imprest funds, and to redelegate such authority as appropriate in the administration and control of DoD funds, consistent with provisions of the Treasury Financial Manual (TFM) and under the authority of sections 3321 and 3342 of 31 U.S.C.

b. Approve DoD Component disbursing regulations developed to implement the TFM and to grant waivers when delegated by the Secretary of the Treasury to heads of Executive Departments and Agencies.

c. Approve the establishment of accounts for funds provided to the Department of De

2 See footnote 1 to §352.6(a) (1). 3 See footnote 1 to §352.6(a)(1). 4 See footnote 1 to §352.6(a)(1).

fense and issue regulations for the administration of accounts established pursuant to statutory authority.

d. Exercise the authority of the Secretary of Defense to establish reimbursement rates and prices for DoD goods and services and to approve requests for waivers or reductions of such rates and prices that, by statute, may be exercised by the Secretary of Defense.

e. Pursuant to the authority of sections 113 and 137 of 10 U.S.C., make determinations to effectuate transfers under transfer authorities enacted in DoD and military construction appropriation acts and make any reports or furnish notifications to the Congress or its committees that may be required in connection with the exercise of such transfers.

f. Approve all requests for reprogramming of funds or for use of authority to transfer funds and to make any related determinations required by law. This authority may not be redelegated.

g. Transmit Antideficiency Act reports required by sections 1341, 1342, and 1517 of 31 U.S.C. to the OMB, the President, and the Congress. This authority may not be redelegated.

h. Approve obligation adjustments, in accordance with section 1553 of 31 U.S.C., for fixed appropriations for which the period of availability for obligation has ended, if an obligation of funds from that account to provide funds for a program, project, or activity to cover amounts required for contract changes would cause the total amount of obligation from that appropriation during a fiscal year for contract changes for that program, project, or activity to exceed $4 million.

2. Pursuant to the authority vested in the Secretary of Defense, including 10 U.S.C. 113(d), and subject to the direction, authority, and control of the Secretary of Defense, the C, DoD, is hereby delegated the following authorities on the operations and functions of the DFAS:

a. Under 5 U.S.C. 5584, 10 U.S.C. 2774, and 32 U.S.C. 716 to waive a claim or to make recommendations to the Comptroller General (C.G.) of the United States on the waiver of such claims;

b. Under 31 U.S.C. 3529 to issue payment and certification decisions in cases as authorized by the C.G. of the United States;

c. Under chapter 73 of 10 U.S.C. to make determinations necessary for the administration of the annuity plans covered under such chapter;

d. Under 10 U.S.C. 4837, 6161, and 9837 to remit or cancel an enlisted member's indebtedness;

e. Under 10 U.S.C. 1053 and 1594 to promulgate regulations establishing conditions under which reimbursements for financial institution charges resulting from late or incorrect direct deposits will be made;

f. Under 37 U.S.C. 602 to designate a person to receive amounts due a member determined to be mentally incapable of managing the member's affairs;

g. Under 37 U.S.C. 423 to make findings of good faith on purported marriages;

h. Under 37 U.S.C. and chapter 55 of 10 U.S.C. to make dependency determinations for pay and allowance and medical care entitlements;

i. Under 31 U.S.C. 3711 to collect, compromise, suspend, or end collection action on claims arising out of the activities of, or referred to, the DFAS; and

j. Under chapter 10 of 37 U.S.C. to make determinations necessary for the administration of missing persons' accounts except de, terminations on missing status or death.

3. The C, DoD may redelegate these authorities, as appropriate, and in writing, except as otherwise specifically indicated above, or as otherwise provided by law or regulation.

4. These delegations of authority are effective June 24, 1991.

Pursuant to the authority vested in the Secretary of Defense under provisions of title 10, United States Code, this part establishes the Defense Finance and Accounting Service (DFAS) as an Agency of the Department of Defense with responsibilities, functions, authorities, and relationships.

§ 352a.2 Applicability.

This part applies to the Office of the Secretary of Defense (OSD); the Military Departments; the Chairman, Joint Chiefs of Staff and Joint Staff; the Unified and Specified Commands; the Inspector General of the Department of Defense (IG, DoD); the Defense Agencies; and the DoD Field Activities

(a) The DFAS is established as an Agency of the Department of Defense under the direction, authority, and control of the Comptroller of the Department of Defense (C, DoD).

(b) The DFAS shall consist of a Director, selected by the Secretary of Defense, and such subordinate organizational elements as are established by the Director within resources authorized by the Secretary of Defense.

(c) Military personnel shall be assigned to the DFAS in accordance with approved authorizations and procedures for assignment to joint duty.

§ 352a.4 Responsibilities and functions. (a) The Director, Defense Finance and Accounting Service (DFAS), is the principal DoD executive for finance and accounting requirements, systems, and functions identified in DoD Directive 5118.3,1 and shall:

(1) Organize, direct, and manage the DFAS and all assigned resources.

(2) Direct finance and accounting requirements, systems, and functions for all appropriated, nonappropriated, working capital, revolving, and trust fund activities, including security assistance.

(3) Establish and enforce requirements, principles, standards, systems, procedures, and practices necessary to comply with finance and accounting statutory and regulatory requirements applicable to the Department of Defense.

(4) Provide finance and accounting services for DoD Components and other Federal activities, as designated by the C, DOD.

(5) Direct the consolidation, standardization, and integration of finance and accounting requirements, functions, procedures, operations, and systems within the Department of Defense and ensure their proper relationship with other DoD functional areas (e.g.,

1 Copies may be obtained, at cost, from the National Technical Information Service, 5285 Port Royal Road, Springfield, VA 22161.