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  • Question

    What regulations dictate the use of funded versus automatic reimbursable authority uses? Can we use our Army automatic reimbursable authority as long as it is issued to us? If either is an option, what are the benefits of using one over the other?


    Answer

    The regulation is the Financial Management Regulation (FMR, DOD 7000.14R)
     

    Volume 3 of the FMR chapter 15, paragraph 150205, B2 says:
     
    “Obligations may be incurred only upon acceptance of a customer order. The reimbursable program does not have to be specifically allotted. Apportionment, allotment, and allocation of the reimbursable program may be treated as “automatic” when written OMB approval is obtained by the DoD Component responsible for the appropriation concerned.”
     
     
    For a better understanding of reimbursable activities and requirements, and which may be the better option if you have both options, read DoD Financial Management Regulation (FMR) 7000.14-R, Volume 3, Chapters 8 and 15, Volume 11A, Chapters 1, 2 and 3, and Volume 11B, Chapter 11.  Second, read your Service’s financial management regulation, paying particular attention to those areas that deal with reimbursable activities.  Finally, we most strongly recommend that you contact your local comptroller organization and legal counsel for more information on your specific reimbursable work authorization process and their policy interpretation of this issue.

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