Original Date: 07/08/2002
Revision Date: 01/18/2007
Information : Financial Management Policies and Procedures
The Directorate for Missiles and Surface Launchers developed a Financial Management Planning Process to manage the sales of missiles to foreign countries. This process encompasses all aspects of the sales, and is expected to streamline acquisitions in a cost effective and efficient manner.
With the signature of a Memorandum of Understanding (MOU) between Allied forces and the U.S. Navy’s Directorate for Missiles and Surface Launchers (PEO TSC-M/L), a financial management process will be established to manage the sales of missiles to foreign governments. Part of this agreement includes the establishment of an International STANDARD Missile (SM) Project Office for the management of the cooperative program, which will include representatives from those participating nations. This project office must establish clear policies and procedures for the management of efforts and funding under the cooperative program. A team was established to develop a Financial Management Policies and Procedures (FMPP) document.
The FMPP document will be a living document and will cover production and R&D MOUs. The document provides policies and procedures to be followed including the process for amending the FMPP. Four appendices to the document include Project Financing Sequence of Events, Annual Production Financial Contributions, R&D Project Arrangement Contribution Plan, and Management of the Foreign Currency Contributions.
A data-sharing database, the Cooperative Projects Management Information System (CPMIS), was developed which can be easily updated/upgraded to keep up with technology, and has the capability of easily extracting data for manipulation in other programs. A competitive U.S. bank will be selected, and a signed agreement by the bank and the Program Office is being developed to effectively manage banking deposits and transfers for payment of services rendered by the contractors and field activities. Each country will appoint Cooperative Project Personnel (CPP) to manage the project under the MOU. The CCP will be responsible for banking transactions, milestone payments, deliverable tracking, reconciliation of accounts, and providing status reports to their respective country.
An annual process overview is conducted to negotiate a plan and execute any reconciliation issues. The effectiveness of this process remains to be seen, but all of the elements of a good process have been established. The process and associated procedures have been instituted to allow for changes in a smooth and efficient manner.
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