Who does what in Foreign Military Sales financial management?

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).

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.

A USG Letter of Offer and Acceptance (LOA), and any subsequent Amendment or Modification, that is the legal instrument used by the USG to transfer defense articles and defense services under the FMS program. See also "FMS" and "LOA."

The legal instrument used by the USG to transfer itemized defense articles, defense services, and design and construction services to foreign partners.

When used under the authorities provided in the Arms Export Control Act for Foreign Military Sales, the LOA is a binding agreement signed by the USG and the foreign partner to transfer such articles and services.

When used under Building Partnership Capacity (BPC) authorities, the BPC LOA is not signed by the Benefitting Partner.

A group of programs authorized by federal statutes by which the United States provides defense articles, military training, and other defense-related services by grant, lease, loan, credit, or cash sales in furtherance of national policies and objectives, and those that are funded and authorized through the Department of State to be administered by Department of Defense/Defense Security Cooperation Agency, which are considered part of security cooperation.

An agency, under the authority, direction, and control of the Under Secretary of Defense for Policy (USD(P)), that directs, administers, and provides DoD-wide guidance to the DoD Components and DoD representatives to U.S. missions abroad for the execution of DoD security assistance and security cooperation programs over which DSCA has responsibility, in accordance with Chapter 32 and Chapter 39 of title 22 U.S.C., DoD Directive (DoDD) 5132.03, other laws, and DoDD 5105.65.

A Department of Defense element that is part of the United States Diplomatic mission located in a foreign country to carry out security assistance and security cooperation management functions under the supervision and coordination authority of the senior defense official/defense attaché.

That component of the U.S. Security Assistance program which provides training to selected foreign military and defense associated civilian personnel on a grant basis. Training is provided at U.S. military facilities and with U.S. Armed Forces in the United States and overseas, and through the use of Mobile Training Teams. Training also may be provided by contract technicians, contractors (including instruction at civilian institutions), or by correspondence courses. The IMET Program is authorized by the Foreign Assistance Act.

Authority issued by Defense Finance and Accounting Service Security Cooperation Accounting to a certifying officer or a disbursing activity authorizing the subsequent disbursement of a Foreign Military Sales country’s funds when such funds are available.

A financial system providing DoD-level financial management functions for the security assistance (SA) program. This includes centralized Foreign Military Sales (FMS) trust fund accounting, foreign customer billing, and financial management reporting. DIFS consolidates FMS data from the Army, Navy, Air Force, and other implementing agencies, and provides efficient accountability for oversight of the financial and program management aspects of SA.

An account established for each Foreign Military Sales country/international organization for the purpose of recording and safeguarding unidentified and certain earmarked funds for future use

The military department or defense agency responsible for the execution of military assistance programs. With respect to FMS, the military department or defense agency assigned responsibility by the Defense Security Cooperation Agency to prepare an LOA and to implement an FMS case. The implementing agency is responsible for the overall management of the actions that will result in delivery of the materials or services set forth in the LOA that was accepted by a foreign country or international organization.

The planning, negotiating, and implementation of supporting logistics arrangements between nations, their forces and agencies. It includes furnishing logistics support (major end items, materiel, and/or services) to, or receiving logistics support from, one or more friendly foreign governments, international organizations, or military forces, with or without reimbursement. It also includes planning and actions related to the intermeshing of a significant element, activity, or component of the military logistics systems or procedures of the United States with those of one or more foreign governments, international organizations, or military forces on a temporary or permanent basis. International logistics involves planning and actions related to the utilization of U.S. logistics, policies, systems, and/or procedures to meet requirements of one or more foreign governments, international organizations, or forces.

Implementing Agencies’ (IAs) (Military Department organizations and Defense Agencies) response to requests from a foreign government or international organization (partner) for preliminary pricing and availability for international competitions and requests from authorized USG requesting authorities for building partner capacity. Furnishing of this data does not constitute a commitment for the USG to offer for sale the articles and services for which the data is provided.