BY ORDER OF THE SECRETARY OF THE AIR FORCE AIR FORCE INSTRUCTION 65-601 ...

413 Pages·2015·3.2 MB·English

BY ORDER OF THE AIR FORCE INSTRUCTION 65-601,
SECRETARY OF THE AIR FORCE VOLUME 1
16 AUGUST 2012
Incorporating Change 1, 29 July 2015
Financial Management
BUDGET GUIDANCE AND
PROCEDURES
COMPLIANCE WITH THIS PUBLICATION IS MANDATORY

ACCESSIBILITY: Publications and forms are available for downloading or ordering on the
e-Publishing website at www.e-Publishing.af.mil.
RELEASABILITY: There are no releasability restrictions on this publication.

OPR: SAF/FMBMM Certified by: SAF/FMB
(MGen Edward L. Bolton, Jr.)
Supersedes: AFI65-601V1, 3 March 2005 Pages: 413

This instruction aligns with and implements AFPD 65-6, USAF Budget Policy. Volume 1
contains rules and procedures for using Air Force appropriated funds. In cases of conflict with
other Air Force instructions or policy directives, the funding propriety rules stated here take
precedence. This publication applies to all military and civilian Air Force personnel, including
the US Air Force Reserve, Air National Guard (ANG), and the Civil Air Patrol.
Refer recommended changes and questions about this publication to SAF/FMBMM using the AF
Form 847, Recommendation for Change of Publication; route AF Form 847s from the field
through the appropriate functional’s chain of command. Ensure that all records created as a
result of processes prescribed in this publication are maintained in accordance with AFMAN 33-
363, Management of Records, and disposed of in accordance with the Air Force Records
Disposition Schedule (RDS) located at https://www.my.af.mil/afrims/afrims/afrims/rims.cfm.
SUMMARY OF CHANGES
This interim change revises AFI 65-601, Volume 1, by (1) adding the Defense Working Capital
Fund (DWCF) will not fund the movement of DWCF materiel moving to a Centralized Repair
Facility (CRF) to be repaired/refurbished or from a CRF back to the point of use, (2) stating the
Second Destination Transportation (SDT) Centrally Managed Allotment (CMA) will also be
used to fund Repair Network Manager (RNM) directed shipments to/from CRFs in support of the
2 AFI65-601V1 16 AUGUST 2012
Repair Network Enterprise, and (3) to update tables 18.1 and 18.2. A margin bar (|) indicates
changed material.

Chapter 1— FINANCIAL MANAGEMENT IN THE AIR FORCE 27
1.1. Overview. ................................................................................................................ 27
1.2. Applying This Instruction. ...................................................................................... 27
1.3. Responsibilities. ...................................................................................................... 27
1.4. Related Guidance. ................................................................................................... 27
Chapter 2— WARRANTS, APPORTIONMENTS, TRANSFERS, AND
REPROGRAMMING 28
2.1. Overview. ................................................................................................................ 28
2.2. Responsibilities: ...................................................................................................... 28
2.3. Reprogrammings: .................................................................................................... 28
2.4. Congressional New Start Notification Procedures. ................................................. 29
2.5. Deferrals and Rescissions. ...................................................................................... 31
Chapter 3— BUDGET AUTHORIZATION, ALLOCATIONS, AND ALLOTMENTS 32
3.1. Administering Budget Authority Documents: ........................................................ 32
3.2. Basis for Budget Authorizations: ............................................................................ 33
3.3. Expired Year Budget Authorizations. ..................................................................... 33
3.4. Using Allocations and Suballocations: ................................................................... 33
3.5. Using Allotments and Suballotments: .................................................................... 34
3.6. Issuing Budget Authorizations and Allocations...................................................... 34
3.7. Operating Centrally Managed Allotments (CMA): ................................................ 36
3.8. Year-End Adjustments: ........................................................................................... 37
3.9. Using AF Form 401, Budget Authority/Allotment: ................................................ 38
3.10. Locally Prescribed Forms and Formats. ................................................................. 39
3.11. Emergency Funding Actions. .................................................................................. 40
Figure 3.1. Designation of Appropriation Managers. ............................................................... 40
AFI65-601V1 16 AUGUST 2012 3
Chapter 4— BUDGETING AND FUNDING GUIDANCE FOR VARIOUS
APPROPRIATIONS 42
Section 4A— Obligating Funds During the Last Two Months of the Fiscal Year. 42
4.1. Applying the 20-Percent Limit on Obligations. ...................................................... 42
Figure 4.1. Exceptions to the 20-Percent Limit on Obligations in August and September. ...... 42
4.2. This paragraph intentionally left blank. .................................................................. 42
Section 4B— Information Technology Equipment (ITE) and Resources 43
4.3. Budgeting and Funding for General Purpose ITE. ................................................. 43
4.4. O&M Funded Facilities and Activities. .................................................................. 44
4.5. RDT&E Funded Facilities and Activities. .............................................................. 46
4.6. Defense Working Capital Fund (DWCF) Facilities and Activities. ....................... 46
4.7. Site Preparation. ...................................................................................................... 46
Table 4.1. Funding for Information Technology Equipment (ITE) Site Preparation. ............. 46
4.8. Embedded Computers. ............................................................................................ 46
4.9. Funding Other Equipment with Computers. ........................................................... 49
4.10. Information Technology (IT) – Summary Considerations. .................................... 49
Table 4.2. Information Technology – Major Considerations (not sequential). ........................ 49
Section 4C— Honoraria 49
4.11. Approving Honoraria and Speaking Fees. .............................................................. 50
Table 4.3. Honoraria Approval Thresholds. ............................................................................ 50
Section 4D— Emergency and Special Program (ESP) Codes 51
Table 4.4. Assigning ESP Codes. ............................................................................................ 51
4.12. Reserved For Future Use. ....................................................................................... 51
4.13. Using ESP Codes: ................................................................................................... 51
Section 4E— Technical Data 51
4.14. Financing the Procurement and Printing of Technical Data. .................................. 51
4.15. Funding Engineering Drawing Requirements: ....................................................... 53
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4.16. Commercial Manuals. ............................................................................................. 53
4.17. Technical Data for Replenishment Spares Procurement. ........................................ 53
4.18. Technical Data for Common Support Equipment................................................... 54
Section 4F— Space Launch Support Services 54
4.19. Financing Launch Services. .................................................................................... 54
4.20. Propellants Funding. ............................................................................................... 54
Section 4G— Organizational, Intermediate, and Depot Logistic Support Provided By Contractors 54
4.21. Funding Contractor Support Programs: .................................................................. 54
4.22. Determining the Funds Chargeable. ....................................................................... 56
Section 4H— Prompt Payment Act (P.L. 97-177, 5CFR Part 1315, 31 U.S.C. Section 3901-3906) 56
4.23. Financing Prompt Payment Charges: ...................................................................... 56
4.24. Assigning Data Elements: ....................................................................................... 57
Section 4I— Telephone System Costs 58
4.25. Funding Advance Deposits for Installation Costs of Telephone Cable Required
for New Family Housing. ........................................................................................ 58
4.26. Funding Other Telephone Activities: ...................................................................... 58
Figure 4.2. Funding for Installation and Maintenance of Telephone Wiring Used for
Commercial "Unofficial" Telephone Service. ......................................................... 60
Section 4J— USAF Heritage Program 60
4.27. USAF Heritage Program (USAFHP) and associated activities. ............................. 62
Section 4K— Ethnic and Holiday Observances, Traditional Ceremonies, and Entertainment 63
4.28. Ethnic and Holiday Observances Funding Guidance: ............................................ 63
4.29. Traditional Ceremonies. .......................................................................................... 63
4.30. Entertainment. ......................................................................................................... 65
Section 4L— Awards, Award Ceremonies and Gifts 66
4.31. Awards and Gifts. ................................................................................................... 66
4.32. Civilian Performance Awards. ................................................................................ 69
AFI65-601V1 16 AUGUST 2012 5
4.33. Refreshments at Awards Ceremonies. .................................................................... 69
Section 4M— Chapel and Chaplain Programs 71
4.34. Funding Guidance. .................................................................................................. 71
Section 4N— Criteria for Determining Expense and Investment Costs 71
4.35. Distinguishing Between Expense and Investment Costs. ....................................... 71
4.36. Investment Cost Decision. ...................................................................................... 72
Figure 4.3. Decision Making Factors for Investment Cost. ...................................................... 72
Section 4O— Licencing of Intellectual Property 73
4.37. Application.............................................................................................................. 73
4.38. Programmatic Directives. ....................................................................................... 73
4.39. Accounting. ............................................................................................................. 73
4.40. Fee/Royalty Purposes. ............................................................................................ 73
4.41. Excess Fees/Royalties. ............................................................................................ 73
4.42. Accounting Codes. .................................................................................................. 73
Section 4P— Other Guidance 74
4.43. Personalized Stationery. .......................................................................................... 74
4.44. Business and Greeting Cards: ................................................................................. 74
4.45. Housing Damage Liability: ..................................................................................... 75
4.46. Buying Books, Periodicals, Newspapers and Pamphlets: ....................................... 75
4.47. Funding Consecutive Overseas Tours. ................................................................... 75
4.48. Appliances and Furnishings. ................................................................................... 75
4.49. Retiree Activities Programs. ................................................................................... 75
Section 4Q— Meals, Conferences, Training, and Fees 76
4.50. Use of Appropriated Funds for Meals and Light Refreshments. ............................ 76
4.51. Funding for Air Force Sponsored Conferences. ..................................................... 77
4.52. Non-government Sponsored Conferences. ............................................................. 78
6 AFI65-601V1 16 AUGUST 2012
4.53. Government (non-Air Force) Sponsored Conferences. .......................................... 78
4.54. Avoiding Double Recovery for Meals. ................................................................... 79
4.55. Scientific, Technical, and Professional Symposiums, Conferences, and Similar
Meetings................................................................................................................... 79
4.56. Veterinary Services: ................................................................................................ 79
4.57. Membership in Professional Organizations. ........................................................... 79
4.58. Special Drinking Water........................................................................................... 80
4.59. CREEK SWEEP Credits. ........................................................................................ 80
4.60. Licenses and Certificates for Military Members..................................................... 81
4.61. Service Contracts Crossing Fiscal Years. ............................................................... 81
4.62. Air Navigation and Overflight Fees. ....................................................................... 82
4.63. Landing and Parking Fees. ...................................................................................... 82
4.64. Funding for Athletic Supplies and Fitness Equipment. .......................................... 82
4.65. Real Property Damage Recovery. ........................................................................... 83
4.66. Undefinitized Contractual Actions (UCA). ............................................................ 83
4.67. U.S. Flag for Active Duty Military Retirees. .......................................................... 83
4.68. Memorials and Monuments. ................................................................................... 84
4.69. Cable TV in Dormitories. ....................................................................................... 84
4.70. Heart Link Program. ............................................................................................... 84
4.71. Temporary Authority to Hire Contract Security Guards. ....................................... 84
4.72. Exemption of Certain Firefighting Contracts from Prohibition on Contracts for
Performance of Firefighting Functions. ................................................................... 84
Section 4R— Planning and Tracking Obligations and Outlays 85
4.73. Supplementing OSD Appropriations (97X) with O&M 3400 Funds. .................... 85
4.74. Submitting Outlay Plans. ........................................................................................ 85
4.75. Planning: ................................................................................................................. 85
4.76. Tracking. ................................................................................................................. 86
AFI65-601V1 16 AUGUST 2012 7
Chapter 5— APPROPRIATION REIMBURSEMENTS AND REFUNDS 87
Section 5A— Appropriation Reimbursements 87
5.1. General Reimbursement Guidance: ........................................................................ 87
5.2. Responsibilities for Developing Anticipated Reimbursements: ............................. 87
5.3. Responsibilities for Earning Anticipated Reimbursable Programs. ........................ 88
5.4. Funding Procedures and Application. ..................................................................... 88
Table 5.1. 3010/3011/3020/3080 Appropriations To Be Charged or Credited For The
Purchase or Sale of Investment Items To Fill Customer Orders. ............................. 90
5.5. Billing and Collecting Small Amounts: .................................................................. 93
5.6. Reporting Instructions: ........................................................................................... 93
5.7. Statutory Authorities. Attachment 1 (Public Laws) to this AFI shows statutory
authorities for appropriation reimbursements commonly used in DoD. .................. 93
5.8. Obtaining Materiel, Work, or Services from Others. .............................................. 93
5.9. Deobligation, Reimbursable Economy Act Orders (31 U.S.C. 1535). ................... 94
5.10. Security Assistance Program Reimbursements....................................................... 94
Section 5B— Appropriation Refunds 95
5.11. Using Refunds. ........................................................................................................ 95
5.12. Examples of Appropriation Refunds: ..................................................................... 95
5.13. Refunds Receivable. ............................................................................................... 96
5.14. Disposing of Refunds. ............................................................................................. 96
5.15. Other Refunds. ........................................................................................................ 97
Section 5C— Administrative and Accessorial Costs 97
5.16. Special Guidance. ................................................................................................... 97
5.17. Charging Accessorial Costs. ................................................................................... 97
Figure 5.1. Accessorial Charge Rates. ...................................................................................... 98
5.18. Contract Cost Billings. ............................................................................................ 98
8 AFI65-601V1 16 AUGUST 2012
Chapter 6— EXPIRED AND CANCELED APPROPRIATIONS 100
6.1. Applying this Chapter. ............................................................................................ 100
6.2. Applying Changes in the Appropriation Life Cycle: .............................................. 100
6.3. Determining Contract Changes and Upward Obligation Adjustments (UOA). ...... 100
Figure 6.1. Decision Tree - Contract Changes and Obligation Adjustments. ........................... 105
6.4. Using Current and Expired Appropriations. ........................................................... 106
6.5. Controlling Current Appropriation Limitations: ..................................................... 107
6.6. Approving Upward Obligation Adjustments and Contract Change Requests: ....... 109
6.7. Processing Unrecorded Obligations and Payments: ............................................... 110
6.8. Complying with the Antideficiency Act. ................................................................ 110
6.9. Handling Foreign Currency Fluctuation Obligations and Payments: ..................... 111
6.10. Using Other DoD Appropriations: .......................................................................... 111
6.11. Obligating Upward Adjustments in the Accounting System: ................................. 112
6.12. Reviewing Unliquidated Obligation (ULO) Balances in the Expired Years: ......... 112
6.13. Charging Prior Year Obligated Due-Outs: ............................................................. 113
6.14. Reprogramming. ..................................................................................................... 114
6.15. Complying With Control Levels in Expired Accounts: .......................................... 115
6.16. Collections. ............................................................................................................. 116
6.17. Monthly and Fiscal Year-end Reporting Requirements for Transactions under
$100,000. ................................................................................................................. 116
Chapter 7— SUPPORT GUIDANCE 118
Section 7A— Overview 118
7.1. Applying This Chapter. ........................................................................................... 118
7.2. Complying with Statutory Authority. ..................................................................... 118
7.3. Responsibilities: ...................................................................................................... 118
Section 7B— Intraservice Relationships (Within the Air Force) 120
7.4. General Host-Tenant Responsibilities: ................................................................... 120
AFI65-601V1 16 AUGUST 2012 9
Figure 7.1. Host-Tenant Funding Responsibility by Type of Service. ...................................... 120
7.5. Handling Unfunded Requirements. ........................................................................ 120
7.6. This paragraph intentionally left blank. .................................................................. 126
7.7. This paragraph intentionally left blank. .................................................................. 126
7.8. Defense Working Capital Fund (DWCF): .............................................................. 126
7.9. Disposing of Turn-in Credits: ................................................................................. 127
7.10. Billing Tenants: ....................................................................................................... 127
7.11. Making Jurisdictional Transfers. ............................................................................ 128
7.12. Reimbursing Landing Fees and Base Maintenance for Transient Aircraft. ............ 128
7.13. Reserved for future use. .......................................................................................... 129
7.14. Investigating Aircraft Accidents, Including Remotely Piloted Aircraft, and
Environmental Cleanup. .......................................................................................... 129
Section 7C— Interservice Relationships 129
7.15. Overview. ................................................................................................................ 129
7.16. Cross-Servicing: ...................................................................................................... 129
7.17. Determining Cross-Servicing Charges. .................................................................. 130
7.18. Accepting Cross-Service Orders: ............................................................................ 131
7.19. Financing Cross-Service Orders: ............................................................................ 132
7.20. Processing Commitments and Obligations. ............................................................ 134
7.21. Resolving Service Disagreements........................................................................... 134
7.22. Joint-Use Guidance. ................................................................................................ 135
Section 7D— Support of Non-DoD Departments and Agencies 135
7.23. Overview. ................................................................................................................ 135
7.24. Financing Economy Act Orders. ............................................................................. 136
7.25. Executing Economy Act Orders. ............................................................................ 136
Table 7.1. Authorized Advance Payment Economy Act Orders. ............................................ 137
7.26. Economy Act Order Procedures: ............................................................................ 137
10 AFI65-601V1 16 AUGUST 2012
7.27. Other Methods of Funding. ..................................................................................... 138
7.28. Transactions with GSA for Leased Facilities: ........................................................ 138
7.29. Air Transportation Provided to Non-Defense Agencies: ........................................ 139
7.30. Terms for Support Agreements. .............................................................................. 139
Section 7E— Civil Air Patrol (CAP) and Air Force Civil Air Patrol Liaison Offices 139
7.31. Overview. ................................................................................................................ 139
7.32. Supporting CAP with the use of Appropriated Funds. ........................................... 139
7.33. Non-Allowable Expenses........................................................................................ 142
7.34. Supporting Air Force-CAP Liaison Offices. .......................................................... 142
Section 7F— Disaster Relief in the United States, Its Territories and Possessions 143
7.35. Overview:................................................................................................................ 143
7.36. Air Force Responsibilities: ..................................................................................... 143
7.37. Funding Procedures: ............................................................................................... 144
Section 7G— Disaster Relief in Foreign Countries 145
7.38. Overview. ................................................................................................................ 145
7.39. Air Force Guidance. ................................................................................................ 146
7.40. Funding Procedures. ............................................................................................... 146
7.41. Documentation Requirements. ................................................................................ 147
Section 7H— International Military Activities 147
7.42. Overview:................................................................................................................ 147
7.43. Responsibility for National Support: ...................................................................... 148
Figure 7.2. Administrative Agents for National Support. ......................................................... 149
7.44. Cross-Servicing. ...................................................................................................... 150
7.45. Reimbursable Support: ........................................................................................... 150
7.46. Reimbursement Procedure: ..................................................................................... 151
7.47. DoD Guidance. ....................................................................................................... 152