Marine Corps Orders 7300

1 DEPARTMENT OF THE NAVY HEADQUARTERS UNITED STATES Marine Corps 3000 Marine Corps PENTAGON WASHINGTON, DC 20350-3000 DISTRIBUTION STATEMENT A: Approved for public release; distribution is unlimited. MCO RFA 18 MAY 2015 Marine Corps ORDER From: Commandant of the Marine Corps To: Distribution List Subj: Marine Corps FINANCIAL MANAGEMENT STANDARD operating PROCEDURE MANUAL Ref: See Enclosure (1) Encl: (1) Reference List (2) Financial Management Standard operating procedures , Guidance and References 1. Situation. To publish policy which provides Comptrollers and Fund Managers with standard operating procedures (SOPs) pertaining to the preparation, recording, reconciling, reporting and maintenance of financial records through all stages of funds management. 2. Cancellation. MCO 3.

2 Mission. Direct and standardize effective and efficient financial principles and operations in support of organizational goals and objectives. 4. Execution a. Commander s Intent and Concept of Operations (1) Commander s Intent. Demonstrate financial excellence through improved policy and guidance in order to develop and sustain workforce competence, comply with applicable laws and regulations, and employ best practices that effectively and efficiently support the Marine Corps in meeting its mission directives. (2) Concept of Operations. This Order directs the execution of Financial Management (FM) operations at the Headquarters, Marine Corps (HQMC) and subordinate command levels, MCO 18 MAY 2015 3 Enclosure (1) Reference List (a) CFR Title 5 (b) Title 10, (c) Title 31, (d) Title 37, (e) Title 41, (f) Title 48, (g) National Archives and Records Administration (NARA) General Records Schedules (GRS) (h) DoD , Department of Defense Financial Management Regulation (DoD FMR), June 2011 ( (i) Joint Travel Regulations (JTR) (j) DoDI , Support Agreements, April 25, 2013 (k) DoD Guidebook for Miscellaneous Payments, Feb.)

3 2014 (l) SECNAVINST (m) NAVSUPINST (n) NAVMC W/CH1 (o) Marine Corps Manual W/CH 1-3 (p) MCO (q) MCO (r) MCO (s) MCO (t) MCO (u) MCO (v) USMC GCPC SOP (Guidance Pursuant to NAVSUPINST Series, Distributed by HQMC I&L LB) (w) Marine Corps Acquisition procedures Supplement (MAPS) (x) OMB Circular A-11 (y) OMB Circular A-123 (z) 5 552a (aa) SECNAVINST (ab) SECNAV MCO 18 MAY 2015 i Enclosure (2) LOCATOR SHEET Subj: Marine Corps FINANCIAL MANAGEMENT STANDARD operating PROCEDURE MANUAL Location: _____ (Indicate the location(s) of the copy(ies) of this Order) MCO 18 MAY 2015 ii Enclosure (2) RECORD OF CHANGES Log completed change action as indicated.

4 Change Number Date of Change Date Entered Signature of Person Incorporated Change MCO 18 MAY 2015 iii Enclosure (2) TABLE CONTENTS IDENTIFICATION TITLE PAGE Chapter 1 AUTHORIZATION AND AVAILABILITY OF BUDGETARY 1-1 1000 1-3 1001 Appropriations 1-3 1002 Fund Flow 1-5 1003 Marine Corps 1-6 1004 Funds Distribution and Marine Corps Funds Flow Organizational 1-10 1005 Availability Of Budgetary 1-11 1006 Guidance for Administration of Appropriations After Period of 1-14 Figure 1-1 Appropriation and Funds Flow 1-3 Chapter 2 ROLES AND 2-1 2000 2-3 2001 Legal and Administrative 2-3 2002 Enterprise Level Management 2-3 2003 Commander 2-8 2004 Comptroller Functions and Responsibilities. 2-10 2005 Resource Manager (RM) and Fund Manager Duties and 2-17 2006 Defense Finance and Accounting Service (DFAS).

5 2-18 Figure 2-1 Programs and Resources Organizational 2-6 Figure 2-2 Comptroller Organizational 2-11 Chapter 3 RECORDING OF 3-1 3000 3-3 3001 Financial Transaction 3-3 3002 The Standard Accounting, Budgeting, and Reporting System (SABRS).. 3-5 3003 Transaction Recording 3-7 3004 SABRS System Generated Cycle 3-9 3005 SABRS Financial 3-9 3006 Financial Code 3-9 MCO 18 MAY 2015 iv Enclosure (2) TABLE CONTENTS IDENTIFICATION TITLE PAGE 3007 Document 3-11 3008 Accounting Classification Code (ACC).. 3-15 3009 Other Codes Required to Track Financial 3-17 3010 Standard Financial Information Structure (SFIS).. 3-21 3011 Marine Corps Programming Codes (MCPCs).. 3-22 3012 Document Retention 3-22 3013 Audit Readiness/Control 3-22 Figure 3-1 Financial Transaction 3-3 Figure 3-2 SABRS Source 3-6 Figure 3-3 Transaction Recording 3-8 Table 3-1 Financial Codes 3-10 Table 3-2 Organizational Codes 3-10 Table 3-3 SDN 3-11 Table 3-4 MILSTRIP 3-12 Table 3-5 PIIN 3-13 Table 3-6 Position 9 3-14 Table 3-7 LOA 3-15 Table 3-8 Data Elements 3-18 Table 3-9 O&M Key 3-20 Chapter 4 PROCUREMENT OF GOODS, SERVICES, AND 4-1 4000 4-3 4001 Procurement from Commerical 4-3 4002 4-3 4003 Government Commercial Purchase Card (GCPC).

6 4-10 4004 Miscellaneous 4-15 4005 Direct Cite 4-15 4006 4-17 4007 Procurement from Government 4-17 4008 Military Interdepartmental Purchase Request (MIPR).. 4-17 4009 Work Requests (WR).. 4-21 4010 Military Standard Requisitioning and Issue procedures (MILSTRIP).. 4-22 4011 4-26 4012 Source 4-31 4013 Financial 4-31 MCO 18 MAY 2015 v Enclosure (2) TABLE CONTENTS IDENTIFICATION TITLE PAGE 4014 Audit Readiness/Control 4-34 Figure 4-1 GCPC Procurement Process 4-14 Figure 4-2 MILSTRIP Requisition 4-23 Table 4-1 Procurement 4-4 Table 4-2 Key Process/Management Control 4-25 Chapter 5 5-1 5000 5-3 5001 Process 5-3 5002 Roles and 5-4 5003 Types of Reimbursable 5-5 5004 Support 5-7 5005 Buyer 5-9 5006 Seller Responsibilities (When the Marine Corps is Performing at the Seller).. 5-15 5007 Source 5-23 5008 Audit Readiness/Control 5-25 Table 5-1 Create a Document 5-17 Table 5-2 Reimbursable BEA 5-18 Chapter 6 6-1 6000 6-3 6001 Process 6-3 6002 Roles and 6-4 6003 Permanent Change of Station (PCS).

7 6-10 6004 Temporary Duty (TDY) Station .. 6-11 6005 Group 6-13 6006 Source 6-14 6007 Financial 6-14 6008 Audit Readiness/Control 6-16 Figure 6-1 Travel-PCS 6-10 Figure 6-2 TDY Process 6-13 Figure 6-3 Group Travel 6-14 MCO 18 MAY 2015 vi Enclosure (2) TABLE CONTENTS IDENTIFICATION TITLE PAGE Chapter 7 CIVILIAN 7-1 7000 7-3 7001 Process 7-3 7002 Roles and 7-4 7003 Civilian Payroll 7-5 7004 Establishing Employee 7-6 7005 Defense Civilian Payroll System (DCPS).. 7-6 7006 Labor 7-7 7007 SABRS Labor 7-8 7008 System Generated Labor 7-8 7009 Labor Accrual 7-8 7010 Key Steps for Proper Labor 7-9 7011 Federal Employees Compensation Act (FECA) 7-9 7012 Work Year and Personnel Costs (WYPC) 7-10 7013 Financial 7-10 7014 Audit Readiness/Control 7-11 Chapter 8 COST 8-1 8000 8-3 8001 Process 8-3 8002 Roles and 8-4 8003 Civilian 8-5 8004 Labor 8-5 8005 Material 8-6 8006 Appropriate 8-6 8007 Inappropriate 8-8 8008 Use of Memorandum 8-8 8009 Source 8-9 8010 Financial 8-11 8011 Audit Readiness/Control 8-12 Table 8-1 Types of 8-4 Table 8-2 8-7 Table 8-3 Allocation 8-8 Table 8-4 Memorandum Field 8-9 Table 8-5 Allocation Process Supporting Documentation 8-10 Table 8-6 Reducing/Eliminating Allocations Impacting 8-11 MCO 18 MAY 2015 vii Enclosure (2) TABLE CONTENTS IDENTIFICATION TITLE PAGE Chapter 9 PAYMENTS AND 9-1 9000 9-3 9001 Process 9-3 9002 Prompt Payment Act (PPA).

8 9-3 9003 Interest 9-7 9004 Discounts 9-8 9005 Pre-Validation 9-9 9006 Liquidation 9-12 9007 Problem 9-12 9008 Unmatched Disbursements (UMDs).. 9-13 9009 Negative Unliquidated Obligations (NULO).. 9-15 9010 Over-Aged Problem 9-17 9011 Duplicate or Erroneous Payments .. 9-18 9012 Requests to Discontinue 9-23 9013 Source 9-24 9014 Financial 9-24 9015 Audit Readiness/Control 9-24 Chapter 10 MONITORING, CORRECTING, AND VALIDATING 10-1 1000 10-3 1001 Fund/Resource Manager (RM) 10-3 1002 Transaction 10-4 1003 SABRS Error Correction 10-7 1004 SABRS Data Elements Correction 10-8 1005 Aged And Abnormal 10-8 1006 Bulk 10-15 1007 Tri-Annual Review (TAR).. 10-18 1008 Reconciling Available 10-22 1009 Reconciliation 10-24 1010 Contract 10-24 1011 Audit Readiness/Control 10-28 Table 10-1 Common Causes of Aged 10-15 Chapter 11 YEAR-END 11-1 1100 11-3 1101 Process 11-3 1102 Roles and 11-3 1103 Pre-Close 11-4 MCO 18 MAY 2015 viii Enclosure (2)

9 Table Contents Identification Title Page 1104 Year-End 11-4 1105 Open-Up 11-9 1106 Year-End Certification of Authorizations, Obligations, And Unobligated 11-9 1107 Source 11-10 1108 Financial 11-10 1109 Audit Readiness/Control 11-10 Appendix A LIST OF A-1 Appendix B B-1 Appendix C SABRS C-1 Appendix D FINANCIAL MANAGEMENT D-1 MCO 18 MAY 2015 1-1 Enclosure (2) Chapter 1 Authorization and Availability of Budgetary Resources Identification Title Page 1000 1-3 1001 Appropriations 1-3 1002 Fund Flow 1-5 1003 Marine Corps 1-6 1004 Funds Distribution and Marine Corps Funds Flow Organizational 1-10 1005 Availability Of Budgetary 1-11 1006 Guidance for Administration of Appropriations After Period of 1-14 Figure 1-1 Appropriation and Funds Flow 1-3 MCO 18 MAY 2015 1-2 Enclosure (2) (PAGE INTENTIONALLY LEFT BLANK) MCO 18 MAY 2015 1-3 Enclosure (2) Chapter 1 Authorizations and Availability of Budgetary Resources 1000.

10 General. This chapter outlines the appropriation process for availability of budgetary resources and funds flow to support Marine Corps mission requirements. See Figure 1-1 below for an overview of the appropriation and funds flow process. Refer to volume 2A, Budget Formulation and Presentation, volume 2B, Budget Formulation and Presentation, and volume 3, Budget Execution-Availability and Use of Budgetary Resources of reference (h), for additional information and guidance on this process. Figure and Funds Flow Process. 1001. Appropriations Process. All Marine Corps funds are provided by Congress, principally through two separate laws passed annually known as the National Defense Authorization Act and the Department of Defense (DoD) Appropriation Act. The passage of the authorization act provides authorization for the appropriation of funds; although, it does not provide authority to obligate funds. An approved appropriation act (passed by Congress and signed into law by the President) constitutes the authority for the government to incur liabilities ( , make obligations to obtain goods or services and to make payments for ordered and received goods and services) out of the Department of the Treasury (hereafter referred to as Treasury ).