Reimbursable Program

1. Managerial Accounting Division Reimbursable Program • What is a reimbursement? It is one activity providing goods and services to another activity, utilizing their own funds, with the expectation of repayment thru a billing procedure. 2. What are the two types of reimbursements? Automatic Reimbursements: Authority is received on a Funding Authorization Document (FAD), amount is estimated only- no specific dollar ceiling. Funded Reimbursements: Authority is received on a FAD amount is specific and cannot be exceeded.

2. Managerial Accounting Division Reimbursable Program 3. Who are your customers? They can be another on post activity, another installation, another branch of service, another government agency, a non-government agency, state government agency, or an individual. 4.What documentation is needed to establish a customer account? Normally, a Military Interdepartmental Purchase Request (MIPR) is used but, it can be a support agreement such as an inter-service support agreement (ISSA) or most any agreement as long as it is in writing with a fund cite, signed and accepted by both parties. The customer will prepare and sign a MIPR (DD Form 448) and the performing activity will prepare and sign an Acceptance of MIPR (DD Form 448-2). The customer decides the category in which funds are to be used (i.e. Category I = To Be Provided Through Reimbursement; Category II = To Be Procured By Direct Citation of Funds). The category block is located and marked on the DD Form 448-2.

3. Managerial Accounting Division Reimbursable Program 5. What are the accounting stages of the reimbursement transaction? Receipt of reimbursement authority (FAD) Orders received Earned reimbursement Collection or transfer of accounts receivable NOTE: The following are exception conditions: Collections greater than Earnings Earnings greater than Orders Orders greater than Quarterly Ceiling Quarterly Ceiling greater than Annual Ceiling

4. Managerial Accounting Division Reimbursable Program 6. What are the type action codes used for reimbursement transactions? Automatic Reimbursement: AV – FYTD Reimbursement Ceiling 11 – Automatic Annual Reimbursement Program 1L – Orders Received 52 – Reimbursements Earned 43 – Collections 4L – Collections by Others (TBOs) Funded Reimbursement: AV – FYTD Reimbursement Ceiling 19 – Funded Annual Reimbursement Program 1K – Funded Orders Received 51 – Funded Reimbursements Earned 43 – Collections 4L – Collections by Others (TBO) NOTE: Type Actions AV, 11, 1L, and 1K are NEVER processed on prior year accounts. There are no ceilings in prior year and all orders are process created.

5. Managerial Accounting Division Reimbursable Program NOTE: For current FY, if FAC-3 (Direct APC) then manual TA 52 must be input to generate a 1080 bill. If FAC-8 (Reimbursable APC), when the accrual (TA32) is input, TA 20s and 52 will be process created (STANFINS will automatically generate the 1080 bill). DFAS inputs ALL reimbursable related transactions. NEVER process TA 21 adjustments for document numbers that use FAC-8 APCs.