Volume 1, Definitions DoD Financial Management Regulation
of goods and services received for which pay-
ment has been made.
Accrued Expenditure-Unpaid - The budgetary
account which matches the proprietary account
"accounts payable." It represents the dollar value
of goods and services received for which pay-
ment has not been made. (Also see "Accounts
Payable.")
Accrued Variance (Foreign Currency Fluctua-
tions) - The difference between unliquidated
obligations at the budget rate (approved execu-
tion rate) and the foreign exchange rate current
at the time of payment.
Acquisition Cost - Consists of the amount, net of
both trade and cash discounts, paid for the
property, plus the transportation costs. (See
"Discount (Cash)" and "Discount (Trade).")
Administrative Subdivision of Funds - Any
subdivision or legal restriction of an appropria-
tion or fund that makes funds available in a
specified amount for incurring obligations.
Frequently used subdivisions include apportion-
ments, OSD release documents, allocations,
suballocations, allotments and suballotments.
Advance of Pay - A prepayment made available
to an employee in a pay status.
Advances - Disbursements of funds from Depart-
ment of Treasury accounts before performance
has been certified by an authorized DoD receiv-
ing official. It differs from a financing payment
in that no performance has occurred.
Agency Financial Management System. The total
of agency financial systems, both manual and
automated, for planning, budget formulation and
execution, program and administrative account-
ing; as well as all other systems for recording
and classifying financial data and reporting
financial management information, including
purchasing, property, and inventory.
1. Financial Management Information.
All information that is expressed in dollar terms
on federal spending, collections, assets, liabilities,
equity, and related budgetary and accounting
transactions and balances.
2. Accounting System. The structure
of methods and procedures used to record,
classify, accumulate, analyze, summarize, and
report information on the financial condition and
operating position. It is comprised of the vari-
ous functional operations involved in autho-
rizing, recording, classifying, analyzing, and
reporting financial information related to financ-
ing sources, gains, expenses, losses, transfers,
assets, liabilities, equity, and internal controls. It
encompasses the procedures and processes from
the point a transaction is authorized through
processing the data, either manually or automati-
cally, to issuance of financial and management
information statements and reports.
a. Primary Accounting Systems.
The aggregation and consummation of like
financial management information aligned by the
major operational areas and summarized to
support financial and management information
needs. There are five Primary accounting sys-
tems made up of the single, standard integrated
Departmental accounting systems which controls
all financial management information. The
Primary accounting systems are General, Busi-
ness Operations Fund (Stock Fund and Industrial
Fund), Trust Fund, Civilian Pay, and Military
Pay.
b. Administrative Accounting
Systems:
1. Accounting Support
Systems. The manual or automated programs,
procedures and processes which authorize,
record, classify, analyze, and report on financial
management information for one of the Primary
accounting systems. Accounting Support sys-
tems provide general ledger control and financial
information on operations for consolidation to
the Primary accounting systems.
2. Subsidiary Accounting
Systems. The manual or automated programs,
procedures and processes for one of the various
functional operations involved with revenues,
expenses, assets, liabilities, and equity. The
Subsidiary accounting systems form the founda-
tion and audit trail for the Primary accounting
systems and the Accounting Support systems.
x