DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-1
SUMMARY OF MAJOR CHANGES TO
DoD 7000.14-R, VOLUME 11B, CHAPTER 4
“FUND BALANCE WITH TREASURY, RECEIVABLES, ADVANCES,
AND CASH MANAGEMENT
Substantive revisions are denoted by a
preceding the section or paragraph with the
substantive change or revision.
PARA EXPLANATION OF CHANGE/REVISION PURPOSE
040203 Allows for recognition of an accounts receivable
for costs in excess of the amount specified in the
customer order if the performing activity will be
reimbursed for the additional costs.
Revised
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-2
TABLE OF CONTENTS
FUND BALANCE WITH TREASURY, RECEIVABLES, ADVANCES, AND CASH
MANAGEMENT
0401 Fund Balance with Treasury
0402 Receivables
0403 Advances and Prepayments
0404 Cash Management
0405 Transfers of Cash and Associated Budgetary Resources
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-3
CHAPTER 4
FUND BALANCE WITH TREASURY, RECEIVABLES, ADVANCES,
AND CASH MANAGEMENT
0401 FUND BALANCE WITH TREASURY
040101. General Information. Additional information relating to fund balance with
Treasury, cash, receivables and advances can be found in Volume 4 of this Regulation.
040102. Definition.
A. A federal entity’s fund balance with the Treasury is the aggregate amount
of funds in the entity’s accounts with Treasury for which the entity is authorized to make
expenditures and pay liabilities. The fund balance with Treasury of the Defense Working Capital
Fund (DWCF) is primarily increased through the receipt of reimbursements from Department of
Defense (DoD) and other entities. It is also increased through the receipt of appropriations,
reappropriations, continuing resolutions, appropriation restorations, and allocations, and
nonexpenditure transfer of funds from other entities. The fund balance is reduced by transfers to
other entities or to the Treasury, and disbursements made to pay liabilities resulting from
purchase of goods and services.
B. The fund balance does not include contract authority or unused authority
to borrow. Contract authority merely permits a federal entity to incur certain obligations but does
not, in itself, add funds to the agency’s accounts with Treasury. By definition, contract authority
is unfunded and must subsequently be funded by an appropriation to liquidate obligations
incurred under the contract authority, or by the collection and use of offsetting collections.
040103. Treasury Account Symbol. A Treasury account symbol, 97X4930, has
been assigned to the DWCF for the purpose of maintaining fund balances with the Treasury.
Additionally, the Treasury established subnumbered Military Department and Defense Agency
DWCF accounts to accommodate separate accounting for DWCF cash balances. The Military
Departments and the Defense Agencies DWCF subnumbered account identifiers assigned by the
Treasury are shown in the below table.
DoD Component Treasury Assigned
Account No.
Army 97X4930.001
Navy 97X4930.002
Air Force 97X4930.003
Defense Commissary Agency 97X4930.004
Defense Agencies 97X4930.005
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-4
040104. Recordation/Reconciliation of Cash Transactions
A. All cash transactions shall be recorded in the individual activity accounts
and shall be reconciled to total monthly cash transactions reported by the departmental finance
network.
B. The reporting entity shall reconcile the Department’s “Fund Balance With
Treasury” general ledger account at the DWCF subnumbered account level to Treasury.
040105. Treasury Cash Balance. The cash on hand at the Treasury account levels
must always be sufficient to pay liabilities when due. The responsibility for DWCF cash
management is prescribed in paragraph 0404 of this chapter. A transaction that causes a negative
balance in the funds with the Treasury account shall be investigated immediately and reported as
an apparent violation of the Antideficiency Act as prescribed in Volume 14, “Administrative
Control of Funds and Antideficiency Act Violations,” of this Regulation.
040106. Outlays. Gross outlays should be equal to the cumulative amount of
disbursements made for the fiscal year to date. Net outlays should be equal to gross outlays less
the cumulative amount of collections received for the fiscal-year-to-date.
040107. Current Balance. The current balance of funds with Treasury is equal to
the amount as of the beginning of the fiscal year plus the cumulative fiscal-year-to-date amounts
of collections, appropriations, and transfers-in of fund balances with Treasury received minus the
cumulative fiscal-year-to-date amounts of withdrawals, transfers-out, and disbursements.
040108. Fund Balance with Treasury Accounts. A collection or disbursement shall
be recorded only when documentary evidence supports an increase or decrease to the Treasury
account. Cash collections and cash disbursements should be segregated between those for the
DWCF operating program (i.e., noncapital outlays) and the DWCF capital program (i.e.,
acquisition of capital assets) to comply with Title 10, United States Code (USC) Section 2208
(m). Additionally, undistributed cash collections and undistributed cash disbursements should be
recorded and reported at the lowest organizational level. The authorized Fund Balance with
Treasury (Account 1010) accounts for use by the DWCF is listed below.
Fund Balance with Treasury (Funds Collected-Operating Program)
Fund Balance with Treasury (Funds Collected-Capital Program)
Fund Balance with Treasury (Funds Disbursed-Operating Program)
Fund Balance with Treasury (Funds Disbursed-Capital Program)
Fund Balance with Treasury (Undistributed Collections)
Fund Balance with Treasury (Undistributed Disbursements)
A. Fund Balance with Treasury Increases
1. Advances Received. A cash advance received shall be recorded as
a collection and a liability. The usual entry for the receipt of advances is as follows:
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-5
Dr 4222 Unfilled Customer Orders With Advance (Reimbursable)
Cr 4210 Reimbursements and Other Income (Reimbursable)
and
Dr 4590 Apportionments Unavailable-Anticipated Resources
Cr 4610 Allotments-Realized Resources (Reimbursable)
Dr 1010 Fund Balance with Treasury (Funds Collected-Operating Program)
Cr 2310 Advances from Others
2. Refunds. Refunds are the repayments of excess payments
(outlays). The amounts are directly related to previous obligations incurred and outlays made.
Refunds receivable are not a budgetary resource. Refunds are not available for obligations until
the refund is collected. Refunds collected in the same fiscal year as the obligations incurred will
be credited to the appropriation or fund account charged with the original obligation. Refunds of
prior year obligations are not available for obligation until collected and reapportioned by the
Office of Management and Budget (OMB). A refund received is a reduction of a previous
disbursement and shall, therefore, be recorded as a decrease to disbursements (negative
disbursement) with an offsetting credit to the previously recorded accounts receivable (refunds).
If a refund is received for which an accounts receivable was not previously established, the
offsetting credit should be to the asset or expense account that was originally debited. The usual
entry for the receipt of a refund (when the collection is in the same fiscal year discovered) is as
follows:
Dr 1010 Fund Balance with Treasury (Funds Disbursed-Operating Program)
Cr 1310 Accounts Receivable (Refunds)
Dr 4902 Delivered Orders-Obligations, Paid
Cr 4610 Allotments-Realized Resources
3. Fund Balance with Treasury (Funds Collected - Operating
Program). Collections may be due to advances from outside sources, performance of
reimbursable work, collection of receivables, sale of assets, and other sources. All collections
related to the operating program should be recorded to Account 1010, (Funds Collected -
Operating Program).
a. The usual entry to record a reimbursable collection without
an advance is as follows:
Dr 1010 Fund Balance with Treasury (Funds Collected-Operating Program)
Cr 1310 Accounts Receivable
Dr 4252 Reimbursements and Other Income Earned-Collected (Reimbursable)
Cr 4251 Reimbursements and Other Income
Earned-Receivable (Reimbursable)
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-6
b. The usual entry to record a reimbursable collection with an
advance is as follows:
Dr 2310 Advances from Others
Cr 5100 Revenue From Goods Sold
Cr 5200 Revenue From Services Provided
Dr 4252 Reimbursements and Other Income Earned-Collected (Reimbursable)
Cr 4222 Unfilled Customer Orders With Advance
4. Fund Balance with Treasury (Funds Collected-Capital Program).
Collections may be due to advances from outside sources, performance of reimbursable work,
collection of receivables, sale of assets, and other sources. All collections related to the capital
program should be recorded to Account 1010, (Funds Collected-Capital Program). The usual
entry to record a reimbursable collection with an advance is shown in paragraph 3.b., above. The
usual entry to record a reimbursable collection without an advance for funds collected-capital
program is as follows:
Dr 1010 Fund Balance with Treasury (Funds Collected-Capital Program)
Cr 4251 Accounts Receivable
Dr 4252 Reimbursements and Other Income Earned-Collected (Reimbursable)
Cr 4251 Reimbursements and Other Income
Earned-Receivable (Reimbursable)
B. Fund Balance with Treasury Decreases. The fund balance with Treasury
of the DWCF is primarily reduced by disbursements made to pay liabilities or to purchase assets,
goods, and services and reimbursements to other entities or to the Treasury. It is also reduced by
cancellation of expired appropriations, nonexpenditure transfers, and sequestration or rescission
of appropriations.
1. Fund Balance with Treasury (Funds Disbursed - Operating
Program). Account 1010, (Funds Disbursed - Operating Program) has been established to record
cash outflows that occurred due to activity attributable to the operating program (vice capital
program). The usual entry to record a cash disbursement applicable to the operating program is
as follows:
Dr 2110 Accounts Payable
Cr 1010 Fund Balance with Treasury (Funds
Disbursed-Operating Program)
Dr 4901 Delivered Orders-Obligations, Unpaid (Reimbursable)
Cr 4902 Delivered Orders-Obligations, Paid (Reimbursable)
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-7
2. Fund Balance with Treasury (Funds Disbursed-Capital Program).
The usual entry to record a cash disbursement applicable to the capital program is as follows:
Dr 2110 Accounts Payable
Cr 1010 Fund Balance with Treasury (Funds
Disbursed-Capital Program)
Dr 4901 Delivered Orders-Obligations, Unpaid (Capital Program)
Cr 4902 Delivered Orders-Obligations, Paid (Capital Program)
3. Advances Paid. A cash advance made for an anticipated
procurement shall be recorded as a cash disbursement and an asset. The usual entry for the
payment of advances is as follows:
Dr 1410 Advances to Others
Cr 1010 Fund Balance with Treasury (Funds
Disbursed-Capital Program)
Dr 4801 Undelivered Orders-Obligations, Unpaid (Reimbursable)
Cr 4802 Undelivered Orders-Obligations, Prepaid/Advanced
(Reimbursable Program)
040109. Undistributed Collections and Undistributed Disbursements. Additional
information relating to financial control over disbursements, collections and adjustment
transactions affecting the fund balances with the Treasury can be found in Volume 3, Chapter 11,
of this Regulation. Undistributed cash collections and undistributed cash disbursements should
be recorded and reported at the lowest organizational level.
A. Undistributed cash transactions should be identified to the subnumbered
Treasury account level, activity group level and installation-level.
1. Subnumbered Treasury Account Level Adjustments. The DWCF
Component-level undistributed collections and undistributed disbursements that are identifiable
in the finance network databases to a DWCF subnumbered account but do not contain sufficient
information to identify them to a lower organizational (activity group/installation) level.
2. Activity Group Level Adjustments. The DWCF activity
group-level undistributed collections and undistributed disbursements that are identifiable to the
activity group level but do not contain sufficient information to identify them to an installation.
Undistributed collections and undistributed disbursements are defined as the difference between
the two or three position activity group rollup in the finance network databases and the activity
group collections and disbursements reported through the accounting network.
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-8
3. Installation-Level Adjustments. The DWCF installation-level
undistributed (unmatched) collections and undistributed (unmatched) disbursements that are
identifiable through the finance networks to the installation-level but have not yet been matched
at the installation-level to specific obligation or receivable subsidiary ledgers.
B. Collections or disbursements should be identified by the finance network
to the lowest level to which they can be identified. That level shall record the undistributed
collection or undistributed disbursement and provide documentation necessary to research the
account for proper disposition.
C. Undistributed collections and undistributed disbursements are necessary to
properly reflect the fund balance with the Treasury as contained in finance network reports.
Amounts recorded as Account 1010, (Undistributed Collections) and (Undistributed
Disbursements) shall be researched for proper disposition by the lowest organizational level to
which they can be identified. Erroneous collections and disbursements reported by the finance
network shall be reversed.
040110. Accounting for Undistributed Collections and Undistributed
Disbursements
A. Account 1010, (Undistributed Collections). Account 1010, (Undistributed
Collections) is used to record collections reported by the finance network which cannot be
identified to a specific transaction, organization or organizational level. Collections to Account
1010, (Funds Collected-Operating Program and Funds Collected-Capital Program) should be
recorded on a transaction basis. If the finance network reports cash collections in an amount in
excess of the recorded transactions for an organization or organizational level, the receiving
entity should record the excess amount as an increase in undistributed collections. If the finance
network reports cash collections in an amount less than the recorded transactions for an
organization or organizational level, the receiving entity should record that amount as a decrease
in undistributed collections. An illustrative entry to record an undistributed collection is as
follows:
1. Entries When Reported Collections Are Greater Than Recorded
Collections
Dr 1010 Fund Balance with Treasury (Funds Collected-Operating Program)
Cr 1010 Fund Balance with Treasury
(Undistributed Collections)
Dr 4252 Reimbursements and Other Income Earned-Collected (Reimbursable)
Cr 4252 Reimbursement and Other Income
Earned-Collected (Undistributed)
Entry to record undistributed collections when the collections reported by
the finance network exceed the amount of collections shown on the
records of the reporting entity.
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-9
2. Entries When Reported Collections Are Less Than Recorded
Collections
Dr 1010 Fund Balance with Treasury (Undistributed Collections)
Cr 1010 Fund Balance with Treasury (Funds
Collected-Operating Program)
Dr 4252 Reimbursement and Other Income Earned-Collected (Undistributed)
Cr 4252 Reimbursements and Other Income
Earned-Collected (Reimbursable)
Entry to record undistributed collections when the collections reported by
the finance network are less than the amount of collections known to the
reporting entity.
3. Monthly Entry For Financial Reporting Purposes. Prior to
financial report preparation, the balance in Account 1010, (Undistributed Collections) shall be
transferred to Account 1310, “Accounts Receivable” or other appropriate accounts based upon
the best information available as to the proper account. Immediately after financial report
preparation, the value previously transferred shall be reversed and reestablished within the
Account 1010, (Undistributed Collections) for further research. The following entries illustrate
this for financial reporting purposes when Account 1010, (Undistributed Collections) has a credit
balance:
Dr 1010 Fund Balance with Treasury (Undistributed Collections)
Cr 1310 Accounts Receivable (Undistributed)
Dr 4252 Reimbursement and Other Income Earned-Collected (Undistributed)
Cr 4251 Reimbursements and Other Income
Earned- Receivable (Reimbursable) (Undistributed)
To reduce accounts receivable by the amount of undistributed collections
for financial report presentation purposes only.
Dr 1310 Accounts Receivable (Undistributed)
Cr 1010 Fund Balance with Treasury (Undistributed Collections)
Dr 4251 Reimbursement and Other Income Earned-Receivable)
(Reimbursable) (Undistributed)
Cr 4252 Reimbursements and Other Income
Earned-Collected (Undistributed)
To reverse undistributed collections reported by the finance network
following financial report preparation.
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-10
4. Abnormal Balances in Receivables. In some cases, adjustments for
undistributed collections may cause abnormal balances in receivables (Account 1310, Accounts
Receivable and/or Account 4251, Reimbursements and Other Income Earned-Receivable). If
abnormal balances occur because of these adjustments, the following additional adjustments
should be made at the same level that the entries for undistributed collections are made that
caused the abnormal balances.
Dr 4251 Reimbursements and Other Income Earned-Receivable
Cr 4221 Unfilled Customer Orders Without Advance
Dr 1310 Accounts Receivable
Cr 5900 Other Revenue
Dr 4801 Undelivered Orders-Obligations, Unpaid (Reimbursable)
Cr 4901 Delivered Orders-Obligations, Unpaid (Reimbursable)
Dr 1310 Accounts Receivable
Cr 5900 Other Revenue
Dr 1*** Asset Account
Dr 6100 Operating Expenses/Program Cost
Cr 2110 Accounts Payable
5. Abnormal Balances in Unfilled Customer Orders - Without
Advance. If the above entry results in an abnormal balance in Account 4221 Unfilled Customer
Orders Without Advance, at the appropriation level, the DFAS Center is to report the abnormal
balance and work with the customer to relieve the abnormal balance. If the above entry results in
an abnormal balance at the installation-level (applicable to the DWCF only), the center must
coordinate with the customer to have the customer record additional valid unfilled orders to
cover the negative value.
Dr 4221 Unfilled Customer Orders Without Advance (Reimbursable)
Cr 4610 Allotments-Realized Resources (Reimbursable)
6. Disposition of Undistributed Collections. The following illustrate
entries to record the identification of undistributed collections to the proper account as a result of
determining the specific transaction that resulted in the collection:
Dr 1010 Fund Balance with Treasury (Undistributed Collections)
Cr 1310 Accounts Receivable
Dr 4252 Reimbursements and Other Income Earned-Collected (Undistributed)
Cr 4251 Reimbursement and Other Income
Earned-Receivable (Reimbursable)
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-11
B. Account 1010 Fund Balance with Treasury (Undistributed
Disbursements). Account 1010, Fund Balance with Treasury (Undistributed Disbursements) is
used to record the disbursements reported by the finance network which cannot be identified to a
specific transaction, organization or organizational level. Disbursements against Account 1010,
(Funds Disbursed-Operating Program and Funds Disbursed-Capital Program) should be recorded
on a transaction basis. If the finance network reports cash disbursements in an amount in excess
of the recorded transactions for an organization or organizational level, the receiving entity
should record that amount as an increase of undistributed disbursements. If the finance network
reports cash disbursements in an amount less than the recorded transactions for an organization
or organizational level, the receiving entity should record that amount as a decrease in
undistributed disbursements. An illustrative entry to record an undistributed disbursement is as
follows:
1. Entries When Reported Disbursements Are Greater Than Recorded
Disbursements
Dr 1010 Fund Balance with Treasury (Undistributed Disbursements)
Cr 1010 Fund Balance with Treasury (Funds
Disbursed-Operating Program)
Dr 4902 Delivered Orders-Obligations, Paid (Undistributed)
Cr 4902 Delivered Orders-Obligations, Paid (Reimbursable)
To record undistributed disbursements when disbursements reported by
the finance network exceed the amount of disbursements shown on the
records of the reporting entity.
2. Entries When Reported Disbursements Are Less Than Recorded
Disbursements
Dr 1010 Fund Balance with Treasury (Funds Disbursed-Operating Program)
Cr 1010 Fund Balance with Treasury (Undistributed Disbursements)
Dr 4902 Delivered Orders-Obligations, Paid (Reimbursable)
Cr 4902 Delivered Orders-Obligations, Paid (Undistributed)
To record undistributed disbursements when disbursements reported by
the finance network are less than the amount of disbursements shown on
the records of the reporting entity.
3. Monthly Entry For Financial Reporting Purposes. Prior to
financial report preparation, the balance in Account 1010, (Undistributed Disbursements) shall
be transferred to Account 2110, “Accounts Payable” or other appropriate accounts based upon
the best information available as to the proper account. Immediately after financial report
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-12
preparation, the value previously transferred shall be reversed and reestablished within the
Account 1010, (Undistributed Disbursements) for further research. The following entries
illustrate this for financial reporting purposes when Account 1010, (Undistributed
Disbursements) has a debit balance:
Dr 2110 Accounts Payable (Undistributed)
Cr 1010 Fund Balance with Treasury (Undistributed Disbursements)
Dr 4901 Delivered Orders-Obligations, Paid (Reimbursable) (Undistributed)
Cr 4902 Delivered Orders-Obligations, Paid (Undistributed)
To reduce accounts payable by the amount of undistributed disbursements
for financial report presentation purposes only.
Dr 1010 Fund Balance with Treasury (Undistributed Disbursements)
Cr 2110 Accounts Payable (Undistributed)
Dr 4902 Delivered Orders-Obligations, Paid (Undistributed)
Cr 4901 Delivered Orders-Obligations, Unpaid
(Reimbursable)(Undistributed)
To reverse undistributed disbursements reported by the finance network
following financial report preparation.
4. Abnormal Balances in Payables. In some cases, adjustments for
undistributed disbursements may cause abnormal balances in payables, (Account 2110, Accounts
Payable and/or Account 4901 Delivered Orders-Obligations, Unpaid). If abnormal balances
occur because of these monthly adjustments, the following additional adjustments should be
made at the same level that the entries for undistributed disbursements are made that caused the
abnormal balances.
Dr 4801 Undelivered Orders-Obligations, Unpaid (Reimbursable)
Cr 4901 Delivered Orders-Obligations, Unpaid (Reimbursable)
Dr 1*** Asset Account
Dr 6100 Operating Expenses/Program Cost
Cr 2110 Accounts Payable
5. Abnormal Balances in Undelivered Orders-Obligations, Unpaid. If
the above entry results in an abnormal balance in Account 4801, Undelivered
Orders-Obligations, Unpaid, at the appropriation level, the DFAS Center is to report the
abnormal balance and work with the customer to relieve the abnormal balance. If the above entry
results in an abnormal balance at the installation-level (applicable to DWCF only), the DFAS
Center must coordinate with the customer to have the customer record additional obligations to
cover the negative value.
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-13
Dr 4610 Allotments-Realized Resources (Reimbursable)
Cr 4801 Undelivered Orders-Obligations, Unpaid (Reimbursable)
6. Disposition of Undistributed Disbursements. The following
illustrate entries to record the identification of undistributed disbursements to the proper account
as a result of determining the specific transaction that resulted in the disbursement:
Dr 2110 Accounts Payable
Cr 1010 Fund Balance with Treasury (Undistributed Disbursements)
Dr 4901 Delivered Orders-Obligations, Unpaid (Reimbursable)
Cr 4902 Delivered Orders-Obligations, Paid (Undistributed)
0402 RECEIVABLES
040201. General Information. Additional information relating to receivables can
be found in Volume 4, Chapter 3, “Receivables,” of this Regulation.
040202. Scope. Accounts receivable arise from claims to cash or other assets of
other entities.
040203. Recognition of Receivables
A. A receivable should be recognized when a federal entity establishes a
claim to cash or other assets against other entities, based on legal provisions, such as a payment
due date, or goods or services provided based on a funded customer order. If the exact amount is
unknown, a reasonable estimate should be made.
B. Each activity operating under the DWCF shall be reimbursed for the costs
of all goods and services ordered and produced. The DWCF activities shall not accept customer
orders without funding. The DWCF activities must record accounts receivables that they have
earned from the sale (actual delivery and acceptance) of goods and services for which money is
owed. In addition, work, services, or materials provided to a customer in an amount or cost
greater than the funding provided by the customer order may constitute an accounts receivable if
the performing activity will be reimbursed for the additional cost. Accounts receivable and
reimbursement collected in excess of the amount specified in the order should be a rare
occurrence.
C. Reimbursement policy for contingency operations and humanitarian
efforts can be found in Chapter 11, of this volume.
040204. Supporting Records. General ledger receivable balances shall be
supported by detailed records of each amount receivable from each customer such as the date
recorded, bill number, and date billed.
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-14
040205. Reconciliations. At least quarterly, the subsidiary records shall be
reconciled to the general ledger balances. Differences between subsidiary records and general
ledger balances shall be investigated to determine the cause(s) of the difference. Errors found
during the investigation shall be corrected.
040206. Requirements for Separate Reporting of Receivables
A. Federal and Nonfederal Receivables. Receivables from federal entities are
intragovernmental receivables, and should be reported separately from receivables from
nonfederal entities. Intragovernmental receivables are claims of a federal entity against other
federal entities.
B. Entity Versus Nonentity Receivables. Receivables should be distinguished
between entity receivables and nonentity receivables as discussed below.
1. Entity Receivables. Entity receivables are amounts that a federal
entity claims for payment from other federal or nonfederal entities and that the federal entity is
authorized by law to include in its obligational authority or to offset its expenditures and
liabilities upon collections. An entity may have receivables that, once collected, can be used as
offsets to the entity’s budget authority and outlays only when authorized by the Congress
(offsetting collections). Before receiving the authorization, however, those receivables are
nonentity receivables.
2. Nonentity Receivables. Nonentity receivables are amounts that the
entity collects on behalf of the U.S. Government or other entities, and the entity is not authorized
to spend. Receivables not available to an entity are nonentity assets and should be reported
separately from receivables available to the entity.
040207. Recognition of Losses on Accounts Receivable
A. An allowance for estimated loss on receivables for debt due from the
public must be established and maintained to reduce the gross amount of receivables to net
realizable value in order to avoid overstating materially the amount of reported receivables. An
allowance for loss on accounts receivable is not required for federal intragovernmental debt.
Amounts owed by state, local, and foreign governments are considered debt due from the public.
B. Due to the possible impact on future DWCF customer rates with the
establishment of an allowance for loss on accounts receivable due from the public, DWCF
activities shall notify the Office of Undersecretary of Defense (Comptroller) (OUSD(C)), Office
of the Deputy Comptroller (Program/Budget) (ODC(P/B)), Revolving Funds Directorate when an
allowance for loss on accounts receivable due from the public is established or reestimated.
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-15
C. The allowance for loss on accounts receivable due from the public should
be reestimated on each annual financial reporting date and when information indicates that the
latest estimate is no longer correct. Losses due to uncollectible amounts should be measured
through a systematic methodology. The systematic methodology should be based on analysis of
both individual accounts and a group of accounts as a whole.
1. Individual Account Analysis. Accounts that represent significant
amounts should be individually analyzed to determine the loss allowance. Loss estimation for
individual accounts should be based on: (1) the debtor’s ability to pay; (2) the debtor’s payment
record and willingness to pay; and (3) the probable recovery of amounts from secondary sources
including liens, garnishments, cross collections, and other applicable collection tools.
2. Group Analysis. To determine the loss allowance on a group basis,
receivables should be separated into groups of homogeneous accounts with similar risk
characteristics. The groups should reflect the operating environment. For example, accounts
receivable can be grouped by: (1) debtor category (business firms, state and local governments,
and individuals); (2) reasons that gave rise to the receivables (erroneous payments or trade
accounts based on goods and services sold); or (3) geographic regions (foreign countries and
domestic regions). Within a group, receivables can be further stratified by risk characteristics.
Examples of risk factors are economic stability, payment history, alternative repayment sources,
and aging of the receivables. Statistical estimation by modeling or sampling is one appropriate
method for estimating losses on groups of receivables. Statistical estimation should take into
consideration factors that are essential for estimating the level of losses, including historical loss
experience, recent economic events, current and forecast economic conditions, and inherent risks.
D. Losses on receivables should be recognized when it is more likely than not
that the receivables will not be totally collected; the phase “more likely than not” means more
than a 50 percent chance of loss occurrence.
E. Bad Debts. Provisions made for an allowance for loss on accounts
receivable due from the public shall result in a corresponding increase to the Account 6720, Bad
Debt Expense.
F. Uncollectible Receivables from the Public. Termination of collection
actions for receivables due from the public should be initiated in accordance with the provisions
of the Code of Federal Regulations (CFR), Title 4, Volume 1, Part 104. Part 104.3 states that an
agency should terminate collection action and write off the debt when one or more of the
following criteria apply. Information must be retained so that a discontinuance of collection
action can be reinstated if new evidence or other pertinent data or circumstances warrant.
1. The debt is erroneous or otherwise without merit. In these cases,
the debt was never owed in the first place and should not have been classified as an accounts
receivable. The entries that established the accounts receivable should be reversed when it
becomes clear that the debt is erroneous or otherwise without merit.
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-16
2. The debt cannot be substantiated by evidence. In these cases, the
agency does not have or cannot produce the evidence or witnesses necessary to validate a claim
and has not been able to obtain the voluntary repayment of the debt. If the debt cannot be
substantiated by evidence it should not have been classified as an accounts receivable. The
entries that established the accounts receivable should be reversed when it becomes clear that the
debt cannot be substantiated by evidence. Issues that should be addressed in response to this
criteria include, but are not limited to, the following:
a. Does the ordering entity acknowledge receipt of the goods
or service?
b. Is there an acceptable explanation of nonpayment by the
ordering entity?
c. Is there sufficient auditable detailed documentary evidence
to support the debt?
d. Is there sufficient data available to reconstruct the required
documentation to substantiate the debt?
3. The costs of further collection action will probably exceed the
amount which could be recovered.
4. The agency is unable to locate the debtor and finds that either:
(a) there is no security to be liquidated to recover the amount owed; or (b) the statute of
limitations has expired and the chances of recovering the debt do not justify retaining the debt as
a receivable.
5. The agency is unable to collect any substantial amount.
6. Further, debts due from the public that are $100,000 or more must
be referred to the Department of Justice for concurrence in terminating collection action (see
Volume 5, Chapter 29, of this Regulation).
G. Uncollectible Receivables From Other Federal Government Entities
1. As a rule, a federal entity should not provide goods or services to
another federal entity without receipt of a reimbursable order unless such provision is the mission
of the providing entity and it is funded to do so. However, instances do arise when goods or
services must be furnished to a federal entity prior to receipt of a reimbursable order. Most such
occurrences are the result of a public law which directs such action, or an emergency situation, or
other imminent situation for which time or circumstances do not permit normal funding
arrangements. The CFR, Title 4, Volume 1, Part 101.3 states that federal agencies should
attempt to resolve interagency claims by negotiation. There is no statutory authority to
discontinue collection action of a debt owed by another federal government entity. However,
discontinuance of collection action of debt owed by another federal government entity may occur
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-17
when one or more of the following criteria apply. Information must be retained so that a
discontinuance of collection action can be reinstated if new evidence or other pertinent data or
circumstances warrant.
a. The debt is erroneous or otherwise without merit. In these
cases, the debt was never owed in the first place and should not have been classified as an
accounts receivable. The entries that established the accounts receivable should be reversed
when it becomes clear that the debt is erroneous or otherwise without merit. Issues that should
be addressed in response to this criteria include, but are not limited to, the following:
(1) Was a valid reimbursable order received which
constituted, or appeared to constitute, an obligation to pay by the ordering entity?
(2) Is the amount billed in excess of the amount
authorized by the reimbursable order?
(3) If a valid reimbursable order was not received, was
there sufficient reason (public law, emergency or other imminent situation) to provide the goods
or services in absence of an order?
b. The debt cannot be substantiated by evidence. In these
cases, the agency does not have or cannot produce the evidence necessary to establish a claim
and has not been able to obtain the voluntary repayment of the debt. If the debt cannot be
substantiated by evidence it should not have been classified as an accounts receivable. The
entries that established the accounts receivable should be reversed when it becomes clear that the
debt cannot be substantiated by evidence. Issues that should be addressed in response to this
criteria include, but are not limited to, the following:
(1) Does the ordering entity acknowledge receipt of the
goods or service?
(2) Is there an acceptable explanation of nonpayment by
the ordering entity?
(3) Is there sufficient auditable detailed documentary
evidence to support the debt?
(4) Is there sufficient data available to reconstruct the
required documentation to substantiate the debt?
2. Disputed Billings. Guidance on disposition of a disputed bill with
another federal government entity for goods or services provided may be found in Volume 4,
Chapter 3 of this Regulation.
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-18
040208. Accounting Entries for Receivables. The DoD receivables normally result
from the performance of work authorized by the formal receipt and acceptance of customer
reimbursable orders. Customer orders from the public, unless specifically authorized by law,
require advance payment. However, receivables may also result from cash overpayments,
erroneous payments, unliquidated advances or orders from other government agencies and the
public without payment in advance. When orders are received with advance payment, the
performing activity is assured of reimbursement. However, when orders are received without
advance payment, reimbursements may not always materialize. The following entries illustrate
simplified transactions in proprietary and budgetary accounts where performance has been
accomplished and revenue earned (accounts receivable) based on the acceptance of a
reimbursable order without an advance.
A. To record allowance for loss on receivables
Dr 6720 Bad Debt Expense
Cr 1319 Allowance for Loss on Accounts Receivable
To record establishment of an allowance for loss on accounts receivable
due from the public and a corresponding estimate of bad debts expense for
the fiscal year. (There is no corresponding budgetary entry for this entry.)
(An allowance for loss on accounts receivable is not required for federal
intragovernmental debt.)
B. To Record Recognition of Revenue
Dr 1310 Accounts Receivable
Cr 5200 Revenue From Services Provided
Dr 4251 Reimbursements and Other Income Earned-Receivable
Cr 4221 Unfilled Customer Orders Without Advance
To establish the receivable and recognize earned revenue from performance. The
sources of entry for the above entry are billing documents, interfund billings, job
cost reports, receiving reports, payroll records, etc.
C. To Record Actual Collection
Dr 1010 Fund Balance with Treasury (Funds Collected-Operating Program)
Cr 1310 Accounts Receivable
Dr 4252 Reimbursements and Other Income Earned-Collected
Cr 4251 Reimbursements and Other Income Earned-Receivable
To record receipt of cash payment for reimbursable services. The source
of entry for the above entry is cash collection vouchers.
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-19
D. Proprietary Account Entries to Record Write-Off of Uncollectible
Receivables
Dr 1319 Allowance for Loss on Accounts Receivable
Dr 6720 Bad Debt Expense (If the allowance was not sufficient
or
if an allowance had not previously been established)
Cr 1310 Accounts Receivable
To record actual write-off of bad debt. (An amount for actual bad debts
expense is not recorded in those instances when an Allowance for Loss on
Accounts Receivable was previously established unless: (a) the previously
established Allowance for Loss on Accounts Receivable is not sufficient to
cover the bad debt; or (b) an Allowance for Loss on Accounts Receivable
had not previously been established. If, under condition (a), the
Allowance for Loss on Accounts Receivable is not sufficient, then the bad
debt expense recorded is the difference between the amount of the write-
off and the balance in the Allowance account.) For example, in the
illustration above, if Account 1319 had only a $3,000 credit balance, then
the $4,000 write-off would be recorded as follows:
Dr 1319 Allowance for Loss on Accounts Receivable
Dr 6720 Bad Debt Expense (If the allowance was not sufficient
Cr 1310 Accounts Receivable
E. Budgetary Account Entries to Record Write-Off of Uncollectible
Receivables. Whenever a receivable which was earned by performance on a reimbursable order
is written off, appropriate entries in the budgetary accounts must be made to ensure the removal
of the corresponding uncollected reimbursement amount and removal of unobligated
reimbursable program authority equal to the receivable amount written off. This requires the
complete reversal of all budgetary transactions in the reimbursable program accounts and
accounts relating to the performance on the uncollected reimbursable order. Accounting entries
for receipt of customer order, performance of customer order and recognition of reimbursements
earned that should be reversed are provided in Chapter 3, paragraph 303, of this volume and
accounting entries for refunds are provided in paragraph 040108 A.2, above. Only the amount of
the order that is uncollectible shall be written off. For example, if $4,000 of a $10,000
reimbursable order is determined uncollectible, then the write off should be only for the $4000
uncollectible amount--not the entire $10,000. If expenses were incurred in the performance of
the customer order, they must be absorbed by the budgetary resources provided by other
customer orders.
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-20
0403 ADVANCES AND PREPAYMENTS
040301. General Information. Additional information relating to advances and
prepayments can be found in Volume 4, Chapter 5, “Advances and Prepayments,” of this
Regulation.
040302. Advances. Advances are cash outlays made by a federal entity to its
employees, contractors, other federal entities, or others to cover a part or all of the recipients’
anticipated expenses or as advance payments for the cost of goods and services the entity
acquires. Subsidiary records of individual advances shall be maintained to support the amount
recorded in the general ledger account. The subsidiary record shall include the amount advanced,
the date advanced, the applicable contract number, and the disposition of the advance. At least
quarterly, the subsidiary record shall be reconciled with the general ledger balance.
040303. Prepayments. Prepayments are payments made by a federal entity to cover
certain periodic expenses before those expenses are incurred. Typical prepaid expenses are rents
paid to a lessor at the beginning of a rental period. (Progress payments, cost reimbursement
payments, and payments for partial deliveries made to a contractor or other federal entity based
on partial completion of a contract or work request are not advances or prepayments but rather
are payments based upon performance.) Progress payments based on costs and performance
based payments (financing payments) are considered prepayments (see Volume 10, Chapter 1 of
this Regulation).
040304. Recording of Advances and Prepayments. Advances and prepayments
should be recorded as assets. Advances and prepayments are reduced when goods or services are
received, contract terms are met, or prepaid expenses expire. (An example of the accounting
entries when a DWCF activity pays for goods or services in advance is shown in Chapter 3,
paragraph 030303 of this volume.) A travel advance, for example, should be initially recorded as
an asset and should be subsequently reduced when travel expenses are actually incurred.
Amounts of advances and prepayments that are subject to refund (for example, a settled travel
claim indicating the traveler owes part of the advance to the government) should be transferred to
refunds receivable.
040305. Classification of Advances and Prepayments. Advances and prepayments
paid out by an entity are assets of the entity. On the other hand, advances and prepayments
received by an entity are liabilities of the entity. In financial reports of an entity, advances and
prepayments the entity paid out (assets) should not be netted against advances and prepayments
that the entity received (liabilities).
040306. Reporting of Advances and Prepayments. Advances and prepayments
made to federal entities are intragovernmental items and should be accounted for and reported
separately from those made to nonfederal entities.
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-21
0404 CASH MANAGEMENT
040401. General Information. Additional information relating to DWCF cash
management can be found in Volume 2B, Chapter 9 of this Regulation.
040402. Applicability & Scope
A. Cash Management. Cash Management is defined as actions necessary to
maintain appropriate balances of cash to meet operational and capital requirements.
B. Cash Balance. Cash generated from operations is the primary means of
maintaining adequate cash balances within the DWCF. The ability to generate cash is dependent
on rates that recover full costs to include prior year losses, accurate work load projections, and
meeting established operational goals. Cash shortage correction efforts, when required to meet
cash requirements and prevent a violation of the Antideficiency Act, will initially focus on those
activity groups failing to meet operational plans and, therefore, contributing to cash shortages.
C. Cash Balance Criteria. Effective cash management is directly dependent
on the availability of accurate and timely data on cash balance and operational results.
Improvements in management data as well as changes in operational needs and capital
requirements may dictate subsequent changes in the established cash balance criteria. The
criteria shall be reviewed at least annually by the ODC(P/B) as part of the budget review and
documented in a Program Budget Decision (PBD).
D. Cash Transfer Authorization. Cash transfers may be authorized for
DWCF activities to augment either working capital or accumulated operating results. Any
transfers of cash outside of the DWCF or between activity groups within the DWCF, whether
directed internally by the DoD Component, as the result of audit, departmental guidance, or
Congressional direction, shall be included in the affected activity group’s budgets. Cash
transfers shall not be made without prior consultation and written authorization of the Director
for Revolving Funds, ODC(P/B). Further, all such transfers shall be formally documented in a
PBD, and shall be reflected in both the gaining and losing activity groups’ supplementary budget
justification books for the President’s Budget Submission.
040403. Purpose
A. The DWCF cash management policy is to maintain the minimum cash
balance necessary to meet both operational requirements and to meet disbursement requirements
in support of the capital program.
B. The Department relies on the use of cash managers to maintain the cash
necessary to operate its DWCF. Cash has been distributed to the cash managers for the five
DWCF subnumbered Treasury accounts (see paragraph 040103, above). Antideficiency
limitations associated with the cash has been distributed to four of the five DWCF subnumbered
Treasury accounts. Antideficiency limitations associated with the cash has not been distributed
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-22
to the DWCF subnumbered Treasury account 97X4930.005. The distribution of cash and its
associated antideficiency limitations to the individual Treasury subnumbered accounts properly
aligns cash management with cost management and provides improved incentives for better
business decision. The cash manager for each Treasury subnumbered account has been
authorized to realign (delegate) cash to the activity group or installation-level at their discretion.
C. Since the DWCF rates are established at levels estimated to recover the
cost of products and services, the budget process is the mechanism used to ensure that adequate
resources are budgeted in the customers’ appropriated fund accounts to pay established rates.
The amount of profit or loss does not relate to whether cash was made or lost because in
determining the profit or loss, non-cash transaction, such as depreciation is included.
040404. Cash Management Responsibilities. The division of responsibilities for
cash management is as follows:
A. ODC(P/B)
1. Monitor DWCF Component cash balances.
2. Establish procedures to correct short-term cash shortages.
B. DFAS
1. Provide timely and accurate reporting of cash balances by DoD
Component and activity group.
2. Work with DoD Components to correct finance and accounting
problems and provide DoD Components details of DFAS changes made to accounting reports.
3. Ensure collections and disbursements are processed and recorded
accurately and timely consistent with DoD policy.
C. DoD Components
1. Establish and maintain cash plans based on the approved budget.
2. Monitor collections and disbursements to assess operational or
financial problems.
3. Take necessary action to correct operational problems contributing
to deviations from cash plans.
4. Ensure revenue recognition, progress billing, and collection
policies are followed including the minimization of outstanding receivables.
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-23
5. Work with the DFAS to correct finance and accounting problems
contributing to deviations from the cash plan.
040405. Overview
A. The DWCF Fund Balance with Treasury is subdivided at the Treasury into
five subnumbered Treasury accounts. It is at the subnumbered account level that the Fund
Balance with Treasury exists for the DWCF. Each of the five subnumbered Treasury accounts
reporting entities within the Department report a Fund Balance with Treasury amount on their
balance sheet. Some DWCF activities below the subnumbered Treasury accounts level do not
have an actual Fund Balance with Treasury amount. For these DWCF activity groups, the Fund
Balance with Treasury amount reported is not reflective of an actual Fund Balance with Treasury
but rather a clearing account for recording collection and disbursement activity that reflect a net
of collections and disbursements incurred during the year. The entities below the subnumbered
Treasury accounts level transfer collections and disbursements to the appropriate subnumbered
Treasury accounts at year end.
B. One of the five subnumbered accounts is the Defense-wide Treasury
account (97X4930.005). The Defense-wide account includes a number of Defense Agencies
operating under the DWCF. The Defense Agencies within the Defense-wide account provide
and use funds from the centralized cash pool that is managed under the Defense-wide Treasury
account. The Defense Logistics Agency (DLA) has been designated as the cash manager for the
Defense-wide Treasury subnumbered account. Entities provide or use funds depending on
whether an entity needs to provide a collection or make a disbursement. If an entity’s cash
collections exceed the entity’s cash disbursements, the entity is provided funds to the centralized
cash pool for other entities’ use. If an entity’s cash disbursements exceed the entity’s cash
collections the entity is using funds from the centralized cash pool to make disbursements.
C. Maintaining one Treasury subnumbered account for the Defense Agencies
allows the Department to meet its objective of maintaining a much smaller cash balance to
support ongoing operations compared to the level of cash required if each Defense Agency
operated under a unique Treasury subnumbered account. The Department in consultation with
the Congress agreed to minimize the amount of Treasury cash needed to operate the DWCF. The
DLA has not delegated cash below the 97X4930.005 account level. Therefore the “cash balance”
below the Defense-wide Treasury account level should only consist of current year collections
and disbursements.
D. A federal entity’s Fund Balance with Treasury is the aggregate amount of
funds in the entity’s accounts with Treasury for which the entity is authorized to make
expenditures and pay liabilities. However, from the perspective of the federal government as a
whole, it is not an asset; and while it represents a commitment to make resources available to
federal departments, agencies, programs and other entities, it is not a liability. (See the Statement
of Federal Financial Accounting Standard Number 1, “Accounting for Selected Assets and
Liabilities.”)
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-24
E. For audited financial statements and the Report on Budget Execution and
Budgetary Resources (SF 133), the transfer of current year cash disbursements and collections
from the activity group level to the appropriate DoD Component Treasury subnumbered account
shall be completed as of September 30. Fund Balance With Treasury amounts for the
Defense-wide Treasury subnumbered account shall be included in the component column on the
consolidating balance sheet. The individual activity group shall not report a balance on the
balance sheet for Fund Balance with Treasury. For the Accounting Report 1307, the transfer of
current year cash disbursements and collections from the activity group level to the appropriate
DoD Component Treasury subnumbered account shall be completed as of October 1.
F. The transfers are reflected at the activity group and subnumbered account
level in account 5720, Financing Sources Transferred In Without Reimbursement (subnumbered
account) and 5730 Financing Sources Transferred Out Without Reimbursement (activity group).
The transfer of the current fiscal year cash disbursements and collections to the subnumbered
account level shall be recorded as follows.
1. Transactions at the Activities
Dr 1010 Fund Balance with Treasury (Disbursements)
Dr/Cr 5730 Financing SourcesTransferred Out Without Reimbursement
(Cash Transfers)
Cr 1010 Fund Balance with Treasury (Collections)
2. Transactions at the DoD Component (subnumbered)
Dr 1010 Fund Balance with Treasury (Collections)
Dr/Cr 5730 Financing SourcesTransferred In Without Reimbursement
(Cash Transfers)
Cr 1010 Fund Balance with Treasury (Disbursements)
G. Financial Reporting Footnote. Footnote disclosures for the organizations
operating under the Defense-wide DWCF Subnumbered Treasury account .005 are as follows.
These organizations are: DFAS; DLA; Defense Information Systems Agency; Defense Security
Service; Defense Technical Information Center; Joint Logistics Systems Center, Management
Support Office; Corporate Information Management, Office of the Secretary of Defense; and
Component level.
1. Note 1X. Significant Accounting Policies, Funds with the United
States (U.S.) Treasury and Cash. The DWCF Fund Balance with Treasury is subdivided at the
Department of the Treasury into five subnumbered Treasury accounts. It is at the subnumbered
account level that the Fund Balance with Treasury (cash) exists for the DWCF. The [Reporting
Entity] and nine other DWCF activities operate under one Defense-wide subnumbered Treasury
account. As a result, the [Reporting Entity] does not have an individually identifiable Fund
Balance with Treasury. The collections, disbursements and/or cash transfers applicable to
[Reporting Entity] operations are recorded on the [Reporting Entity] financial records during the
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-25
fiscal year. However, since the [Reporting Entity] does not have a Fund Balance with Treasury, it
is inappropriate to report a Fund Balance with Treasury in these accounts at year end. Therefore,
the collections and disbursements and current year cash transfers are posted, as of September 30
each fiscal year, to the Defense-wide DWCF subnumbered Treasury account. The collection,
disbursement, and current year cash transfers balances are recorded as financing sources
transferred out without reimbursement and that account is later closed to cumulative results of
operations. At the subnumbered Treasury account level, the disbursement, collection, and
current year cash transfers amounts are recorded with an offset to the financing sources
transferred in without reimbursement. Specific disclosures of the amounts involved are
contained in note X, Fund Balance with Treasury and note X, Disclosures Related to the
Statement of Changes in Net Position.
2. Note X. Fund Balance with Treasury. As described in note 1X,
the following amounts were posted to the Defense-wide DWCF subnumbered Treasury account.
Collections XXX
Disbursements XXX
Cash Transfers XXX
Appropriated Funds XXX
Total X,XXX
3. Note X. Disclosures Related to the Changes in Net Position
a. Line X, Transfers-in/out without reimbursement (Other
Financing Sources) includes [dollar amount] of FY XXXX collections, disbursements, and/or
cash transfers and appropriated funds from the [Reporting Entity] to the Defense-wide DWCF
subnumbered Treasury account level as described in note 1X.
b. Line X, Net Position End of Period includes the cumulative
amount of collections, disbursements and/or cash transfers and appropriated funds posted to the
Defense-wide DWCF subnumbered Treasury account level as described in note 1X.
0405 TRANSFERS OF CASH AND ASSOCIATED BUDGETARY BALANCES
040501. Transfers Among or Within DWCF Subnumbered Accounts. Cash
managers for each Treasury subnumbered account have been authorized to realign (delegate)
cash to the activity group or installation-level at their discretion. If the cash managers realign
cash within their subnumbered account, all such approved cash transfers from one DWCF
subhead or limit to another--whether intra- or inter-subhead or limit--shall be documented on a
Nonexpenditure Transfer Authorization (SF 1151). The SF 1151 prepared to transfer cash from
one DWCF subhead or limit to another subhead or limit shall be prominently marked “Internal
DoD Subnumbered Account Transfer.” Since all intra or inter subhead or limit transfers
represent a zero balance transaction for Treasury reporting purposes, all SF 1151 used to
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-26
document the intra or inter subnumbered transfers shall not be included in the monthly reports to
the Treasury but shall be retained as an audit trail to support these transfer actions. A cash
transfer shall not be made that is in excess of the cash balance available at the transferring
DWCF activity or installation.
040502. Transfers Between DWCF Subnumbered Treasury Accounts. Cash
transfers between the DWCF subnumbered accounts (97X4930.001 through .005) of the DWCF
Components are accomplished by the Treasury Department and are requested through a SF 1151.
A cash transfer shall not be made that is in excess of the cash balance available in the transferring
DWCF subnumbered account.
040503. Transfers of Cash and Associated Budgetary Resources
A. Transfer Out of Cash and Associated Budgetary Resources. The
proprietary and budgetary accounting entries to be recorded by the DWCF entity from which cash
is transferred are as follows. The budgetary entry to be recorded depends upon whether the
budgetary resource associated with the cash transfer is transferred from the departmental-level or
from an installation-level. The proprietary entry is the same regardless of the organizational level
from which the cash transfer is made.
1. Transfer Out From a Departmental-Level Entity
Dr 5765 Nonexpenditure Financing Sources-Transfer-Out (Cash Transfers)
Cr 1010 Fund Balance with Treasury
(Funds Disbursed-Operating Program)
Dr 4510 Apportionments
Cr 4147 Actual Transfers To Treasury)
or
Cr 4170 Transfers-Current Year Authority
or
Cr 4190 Transfers-Prior Year Balances
2. Transfer Out From an Installation-Level Entity
Dr 5765 Nonexpenditure Financing Sources-Transfer-Out (Cash Transfers)
Cr 1010 Fund Balance with Treasury
(Funds Disbursed-Operating Program)
Dr 4610 Apportionments
Cr 4147 Actual Transfers To Treasury)
or
Cr 4170 Transfers- Prior Year Authority
or
Cr 4190 Transfers- Current Year Balances
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-27
B. Transfer-In of Cash and Associated Budgetary Resources. The proprietary
and budgetary accounting entries to be recorded by the DWCF entity to which cash is transferred
are as follows. The budgetary entry to be recorded depends upon whether the budgetary resource
associated with the cash transfer is transferred into the Departmental-level or to an
installation-level. The proprietary entry is the same regardless of the organizational level into
which the cash transfer is made.
1. Transfer In to a Departmental-Level Entity
Dr 1010 Fund Balance with Treasury (Funds Collected-Operating Program)
Cr 5755 Nonexpenditure Financing Sources-Transfer-In
(Cash Transfers)
Dr 4170 Transfers-Current Year Authority
or
Dr 4190 Transfers-Prior Year Balances
Cr 4510 Apportionments
2. Transfer In to an Installation-Level Entity
Dr 1010 Fund Balance with Treasury (Funds Collected-Operating Program)
Cr 5755 Nonexpenditure Financing Sources-Transfer-In
(Cash Transfers)
Dr 4170 Transfers-Current Year Authority
or
Dr 4190 Transfers-Prior Year Balances
Cr 4610 Allotments-Realized Resources
040504. Transfers of Cash Without Budgetary Resources
1. Transfer Out From a Departmental-Level Entity or
Installation-Level Entity
Dr 5730 Financing Sources Transferred Out Without Reimbursement
(Cash Transfers)
Cr 1010 Fund Balance with Treasury
(Funds Disbursed-Operating Program)
2. Transfer-In to a Departmental-Level Entity or Installation-Level
Entity
Dr 1010 Fund Balance with Treasury (Funds Collected-Operating Program)
Cr 5720 Financing Sources Transferred In Without Reimbursement
(Cash Transfers)
DoD Financial Management Regulation Volume 11B, Chapter 4
May 2005
4-28
