Guide
What is the difference between direct cite and reimbursable funding in Foreign Military Sales?
A case pays for its work in one of two ways. puts the 's accounting citation on the contract or order itself, so the fund pays the contractor. Reimbursable funding lets a pay from its own appropriation first and recover the cost from the case's funds in the .
What is the difference between direct cite and reimbursable funding?
At the time the initial DD Forms 2060 and 2061 (or automated equivalents) are prepared, it is necessary to determine the planned funding source. The two funding authorities identified on DD Forms 2060 and 2061 (or automated equivalents) are and reimbursable.
method involves entering and maintaining an accounting citation on documents relating to transactions. For example, the accounting data is shown on a DoW contract and is the direct funding source for a paying office to make payment to a contractor. In accordance with the , new procurement actions should be accomplished to the maximum extent feasible and appropriate through direct citation of the (97-11X8242) on applicable contractual documents.
Reimbursable method is used when the MILDEP or DoW agency cites its own performing appropriation as the funding source (e.g., the U.S. Army’s missiles procurement appropriation). The DoW component’s performing appropriation is subsequently reimbursed by from case funds held in the .
EA may be requested and accounted for by one of two methods:
1. Reimbursement: Reimbursement transactions result in a disbursement for credit to the specific appropriation or fund account
2. : transactions result in a disbursement to other than a DoW organization (i.e., a contractor, other federal agency, or employee)
References
SAMM
- SAMM GLOSSARY/direct-cite — Direct Cite
- SAMM C9.3.10 — Foreign Military Sales Trust Fund.
- SAMM GLOSSARY/expenditure-authority-ea — Expenditure Authority (EA)
- SAMM GLOSSARY/military-interdepartmental-purchase-request-mipr — Military Interdepartmental Purchase Request (MIPR)
Related
Foreign Military Sales (FMS)
A process, authorized by the Arms Export Control Act, through which eligible foreign governments and international organizations may purchase defense articles, services, and training from the United States Government.
SAMM Glossary, as of 12 September 2026
Glossary entry →Open the manual’s entry → (opens in new tab)
Direct Cite (Foreign Military Sales)
A financing action by a DoD organization (ordering entity) to procure products and services from another entity. When direct cite is used, the procuring entity sends the procurement source documents to the customer for the customer to perform all accounting functions. In the case of the Foreign Military Sales (FMS) program, it specifically refers to documents that result in a disbursement to other than a DoD organization (a contractor, other Federal Agency, or employee).
SAMM Glossary, as of 12 September 2026
Glossary entry →Open the manual’s entry → (opens in new tab)
FMS — Foreign Military Sale
SAMM Acronyms, as of 12 September 2026
Trust Fund
A type of account, designated by law as a “trust fund,” regardless of any other meaning of the term “trust fund.” A trust fund account is usually either a receipt, an expenditure, or a revolving fund account (trust revolving fund account).
SAMM Glossary, as of 12 September 2026
Glossary entry →Open the manual’s entry → (opens in new tab)
Military Department (MILDEP)
One of the departments within the DoD created by the National Security Act of 1947, as amended. The Military Departments are: the Department of the Air Force, the Department of the Army, and the Department of the Navy.
SAMM Glossary, as of 12 September 2026
Glossary entry →Open the manual’s entry → (opens in new tab)
Security Cooperation
Activities undertaken by the DoD to encourage and enable international partners to work with the United States to achieve strategic objectives. It includes all DoD interactions with foreign defense and security establishments, including all DoD-administered security assistance programs, that: build defense and security relationships that promote specific U.S. security interests, including all international armaments cooperation activities and security assistance activities; develop allied and friendly military capabilities for self-defense and multinational operations; and provide U.S. forces with peacetime and contingency access to host nations.
SAMM Glossary, as of 12 September 2026
Glossary entry →Open the manual’s entry → (opens in new tab)
DFAS-IN — Defense Finance and Accounting Service - Indianapolis
SAMM Acronyms, as of 12 September 2026
DSCA — Defense Security Cooperation Agency
SAMM Acronyms, as of 12 September 2026
Glossary entry →Defense Security Cooperation Agency (DSCA) →
MIPR — Military Interdepartmental Purchase Request
SAMM Acronyms, as of 12 September 2026
Glossary entry →Military Interdepartmental Purchase Request (MIPR) →