(FMR) is issued under the authority of DoD Instruction 7000.14, “DoD Financial Management. Policy and Procedures.” The DoD FMR directs statutory and
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2BDoD 7000.14 -R Financial Management Regulation Introduction * December 2021 I-1 fiINTRODUCTION fl SUMMARY OF MAJOR CHANGES Changes are identified in this tabl e and also denoted by blue font . Substantive revisions are denoted by a n asterisk (*) symbol preceding the section, paragraph, table, or figure that includes the revision. Unless otherwise noted, volumes referen ced are contained in this Regulation . Hyperlinks are denoted by bold, italic, blue , and underlined font . The previous version dated May 2019 is archived. PARAGRAPH EXPLANATION OF CHANGE/REVISION PURPOSE Paragraph Structure Page I-4 Revised the description of the Financial Management Regulation paragraph structure. Revision
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2BDoD 7000.14 -R Financial Management Regulation Introduction * December 2021 I-3 INTRODUCTION The Department of Defense (DoD) 7000.14 -R, DoD Financial Management Regulation (FMR ) is issued under the authority of DoD Instruction 7000.14, fiDoD Financial Management Policy .fl The DoD FMR directs statutory and regulatory financial management requirements, systems, and fu nctions for all appropriated and non appropriated, working capital, revolving, and trust fund activities. VOLUMES No. Title 1 General Financial Management Information, Systems , and Requirements 2A Budget Formulation and Presentation (Chapters 1 -3) 2B Budget Formulation and Presentation (Chapters 4 -19) 3 Budget Execution ΠAvailability and Use of Budgetary Resources 4 Accounting Policy 5 Disbursing Policy 6A Reporting Policy 6B Form and Content of the Department of Defense Audited Financial Statements 7A Military Pay Policy ΠActive Duty and Reserve Pay 7B Military Pay Policy ΠRetired Pay 8 Civilian Pay Policy 9 Travel Policy 10 Contract Payment Policy 11A Reimbursable Operations Policy 11B Reimbursable Operations Policy ΠWorking Capital Funds (WCF) 12 Special Accounts, Funds and Programs 13 Nonappropriated Funds Policy 14 Administrative Control of Funds and Antideficiency Act Violations 15 Security Cooper ation Policy 16 Department of Defense Debt Management 00 Glossary APPLICABILITY The DoD FMR applies to the Office of the Secretary of Defense, the Military Departments, the Office of the Chairman of the Joint Chiefs of Staff and the Joint Staff, the Combatant Commands, the DoD Office of the Inspector General , the Defense Agencies, the DoD Field Activities, and all other organizational entities within the DoD (hereinafter referred to collectively as fiDoD Componentsfl).
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2BDoD 7000.14 -R Financial Management Regulation Introduction * December 2021 I-4 *PARAGRAPH STRUCTURE The paragraph numbering system is consistent across the Regulation . The section and paragraph levels are 2 -digits, and there are five additional subparagraph level designators formulated as follows: SECTION PARAGRAPH SUBPARAGRAPHS 1.0 1.1 1.1.1.1.1 INFORMATION REQUIREMENTS DoD Components should forward recommend ed changes to this Regulation through appropriate channels to the Office of the Under Secretary of Defense (Comptroller) (OUSD(C)) , Office of the Deputy Chief Financial Officer (ODCFO ). Requests for deviations from o r exceptions to this Regulation must be submitted via formal m emo randum through your organization™s appropriate coordination and approval process to the OUSD(C), ODCFO. The memorandum must provide justification and supporting documentation as applicable. Mailing address: OUSD(C) , ODCFO Fina ncial Management Policy and Reporting 1100 Defense Pentagon Washington, DC 20301 -1100 The DoD FMR is available on line at : http://comptroller.defense.gov/FMR.aspx .
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2BDoD 7000.14-R Financial Management Regulation Volume 1, Chapter 1 * December 2020 1-2 Table of Contents VOLUME 1, CHAPTER 1: fiCHIEF FINANCIAL OFFICER OF THE DEPARTMENT OF DEFENSEfl . 1 1.0 GENERAL (0101) . 3 1.1 Purpose (010101) .. 3 1.2 Authoritative Guidance (010102) .. 3 2.0 CHIEF FINANCIAL OFFICER APPOINTMENT (0102) .. 3 3.0 ROLES AND RESPONSIBLITIES (0103) . 4 3.1 Financial Management (010301) .. 4 3.2 Financial Management Systems (010302) 4 3.3 Agency Financial Report (010303) .. 5 *3.4 Budget Execution (010304) . 5 3.5 Biennial Review (010305) 6 *4.0 CHIEF FINANCIAL OFFICER AUTHORITY (0104) 6 4.1 Title 10 United States Code (010401) . 6 4.2 Title 31 United States Code (010402) . 6 5.0 CHIEF FINANCIAL OFFICERS COUNCIL (0105) . 7 6.0 ESTABLISHMENT OF THE DEPUTY CHIEF FINANCIAL OFFICER (0106) . 7 *7.0 DEPARTMENT OF DEFENSE STAFF ORGANIZATIONS (0107) .. 7 7.1 Deputy Comptroller (Program/Budget) (010701) . 7 7.2 Deputy Chief Financial Officer (010702) . 8 7.3 Director, Defense Finance and Accounting Service (010703) 9 7.4 Director, Defense Contract Audit Agency (010704) 10 8.0 DEPARTMENT OF DEFENSE COMPONENTS (0108) . 11 *Figure 1 -1: UNDER SECRETARY OF DEFENSE (COMPTROLLER)/CHIEF FINANCIAL OFFICER STRUCTURE . 12
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2BDoD 7000.14-R Financial Management Regulation Volume 1, Chapter 1 * December 2020 1-3 CHAPTER 1 CHIEF FINANCIAL OFFICER OF THE DEPARTMENT OF DEFENSE 1.0 GENERAL (0101) 1.1 Purpose (010101) This chapter describes the establishment, roles, responsibilities , and authority of the Department of Defense (DoD) Chief Financial Officer (CFO) as established by the CFO Act of 1990. The DoD CFO is also the Under Secretary of Defense (Comptroller) (USD(C). The USD(C)/CFO is charged with the responsibility of developing and implementing DoD -wide financial management systems and overseeing financial management activities relating to the CFO programs and operations of the DoD. 1.2 Authoritative Guidance (010102) The CFO establishment, roles, responsibilities , and authority prescribed in this chapter are in accordance with the applicable provisions of the following sources: 1.2.1. Title 10, United States Code, section 192 (10 U.S.C. § 192) , fiDefense Agencies and Department of Defense Field Activities: oversight by the Secretary of Defensefl; 1.2.2. 10 U.S.C. § 2222 , fiDefense business systems: business process reengineering; enterprise architecture; managementfl; 1.2.3. 31 U.S.C. § 3515 , fiFinancial statements of agenciesfl; 1.2.4. 31 U.S.C. § 901 , fiEstablishment of agency Chief Financial Officersfl; 1.2.5. 31 U.S.C. § 902 , fi Authority and functions of agency Chief Financial Officers fl; 1.2.6. 31 U.S.C. § 903 , fiEstablishment of agency Deputy Chief Financial Officers fl; 1.2.7. DoD Directive (DoDD ) 5105.36 , fiDefense Contract Audit Agencyfl; 1.2.8. Dodc5118.03 , fiUnder Secretary of Defense (Comptroller)/Chief Financial Officer, Department of Defense (USD(C)/CFO )fl; and 1.2.9. DoDD DoDD 5118.05 , “Defense Finance and Accounting Service (DFAS)”. 2.0 CHIEF FINANCIAL OFFICER APPOINTMENT (0102) The CFO Act designates DoD as an agency whose CFO is either appointed by the President, by and with the advice and consent of the U.S. Senate; or designated by the President, in consultation with the head of the agency, from among officials of the agency who are required by law to be so
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2BDoD 7000.14-R Financial Management Regulation Volume 1, Chapter 1 * December 2020 1-4 appointed. The USD(C), who is appointed by the President and confirmed by the U.S. Senate, is also the DoD CFO. The USD(C)/CFO must be appointed or designated, as applicable, from among individuals who possess demonstrated ability in general management of, and knowledge of and extensive practical experience in financial management practices in large governmental or business entities. 3.0 ROLES AND RESPONSIBLITIES (0103) The USD(C)/CFO is the Principal Staff Assistant and advisor to the Secretary of Defense for budgetary and fiscal matters including financial management, accounting policy and systems, managers™ internal control systems, budget formulation and execution, contract audit administration and organization, and general management improvement programs. See Figure 1 -1 for the DoD Chief Financial Officer Structure. Consistent with the CFO Act, the following roles and responsibilities are assigned USD(C)/CFO: 3.1 Financial Management (010301) Direct, manage and provide policy guidance and oversight of DoD financial management activities , person nel, and operations, including: 3.1.1. Establish financial management policies for the DoD including its component parts. Ensure compliance throughout the DoD with applicable accounting policy and standards. 3.1.2. Establish, review and enforce internal control policies, standards and compliance guidelines involving financial management. 3.1.3. Provide oversight of financial management activities and operations including: (a) preparation and annual revision of the Financial Improvement and Audit Remediation plan and (b) development o f financial management budgets. 3.1.4. The preparation and annual revision of a DoD plan to implement the 5 -year financial management plan prepared by the Director of the Office of Management and Budget ( OMB ) and to comply with the audited financial statements provisions of the CFO Act. 3.1.5. The recruitment, selection and training of personnel to carry out DoD financial management functions. 3.2 Financial Management Systems (010302) Develop and maintain an integrated agency accounting and financial management system, including but not limited to financial reporting, internal controls, cash management, credit management, debt collection, property management, and inventory management. In coordination with the Chief Management Officer (CMO) , provide for the design, development, and installation of financial systems (as defined in the Glossary) and for management improvement programs throughout the DoD, especially those related to financi al management. Ensure system:
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2BDoD 7000.14-R Financial Management Regulation Volume 1, Chapter 1 * December 2020 1-5 3.2.1. Compli ance with applicable accounting principles, standards and requirements, and internal control standards. 3.2.2. Compli ance with such policies and requirements as may be prescribed by the Director of OMB. 3.2.3. Provides for: * 3.2.3.1. Complete, reliable, consistent and timely budgetary and proprietary transaction -level information in accordance with the Standard Financial Information Structure (SFIS ); and recorded in general ledgers of the accounting systems of record to produce auditable budgetary, proprietary, and managerial cost accounting reports for use by external and internal stakeholders , and which is responsive to the financial information needs o f DoD management. All such financial management systems are required to establish a data sharing agreement with Advana. 3.2.3.2. The development and reporting of cost information. 3.2.3.3. The integration of accounting and budgeting information . 3.2.3.4. Financial and/or program performance data used in budget development and financial statements preparation . 3.2.3.5. The adequate controls over real property, equipment and inventories . 3.2.3.6. The systematic measurement of performance. 3.3 A gency Financial Report (010303) As required by OMB Circular A -136 , DoD must p repare and transmit an Agency Financial Report (AFR) to the Secretary of Defense, OMB, U.S. Department of the Treasury ( Treasury ), the Government Accountability Office, and the Congress . The Department™s financial reporting requirements and related information on the preparation of the AFR are identified in V olume 6B, Chapter 3. *3.4 Budget Execution (010304) 3.4.1. Monitor the financial execution of the DoD budget in relation to actual expenditures, and prepare and submit to the Secretary of Defense timely performance reports. 3.4.2. Administer and provide analysis and recommendations for the budgeting and execution phases of the Planning, P rogramming, Budgeting, and E xecution (PPBE) process of the DoD, utilizing advice from the Director, Cost Assessment and Program Evaluation and the CMO. 3.4.3. Direct the formulation and presentation of DoD budgets, the interactions with the OMB and Congress on budgetary and fiscal matters, and the execution and control of approved budgets. Maintain effective control and accountability over the use of all financial resources of the
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