The cost of military labor applied to work performed at a DBOF activity and
the amount paid by the DBOF to the military personnel appropriations are
generally not equal.
The reason they are not equal is that the amount paid
to the military personnel appropriations is the amount estimated in the
budget; however, the cost of military labor applied to work performed is a
function of the actual number and grade of military personnel at an activity.
The difference, gain or loss, between the amount paid and the cost applied to
work is not recoverable in stabilized billing rates.
Therefore, this line
shall show an adjustment of Net Operating Results to arrive at the amount
that is to be used for stabilized rate development.
The adjustment shall be
equal to the amount to the account 1451.1, "Prepaid Expenses - Military
Personnel - DBOF,"
adjustment amount recorded to Account 3311.1, "Cumulative
Results of Operations-DBOF."
When the military personnel expense is more
than the amount paid to military personnel appropriations, the adjustment
shall be shown as a positive amount.
When the military personnel expense is
less than the amount paid to military personnel appropriations, the
adjustment shall be shown as a negative amount.
7.
Line 2.e - Capital Asset Surcharge. Capital surcharge amounts
included in revenue should be deducted to avoid the return of an apparent
gain in the development of the subsequent year rate structure. This line is
left blank when there is no capital surcharge revenue. A capital surcharge
shall be included in customer rates only if approved by the Office of the
Deputy Comptroller (Program/Budget).
A capital surcharge might be approved
when the amount of depreciation expense of existing capital assets included
in stabilized rates is less than the budgeted Capital Investment Program. As
the capital surcharge does not have an offsetting expense, in isolation from
other transactions, it would be anticipated to result in a gain to net
operating results.
That gain must be deducted from Net Operating Results to
prevent its return to customers in subsequent years through stabilized rates
that are lower than they would be otherwise.)
Capital surcharge amounts may
be reported without the prior approval of the Office of the Deputy Comp-
troller (Program/Budget).
8.
Line 2.f. - Other Applicable Gains and Losses. Report any other
nonrecoverable or deferred gains or losses not reportable on lines 2.a.
through 2.e.
above when approved by the Office of the Deputy Comptroller
(Program/Budget).
9.
Line 2.g. - Total - Nonrecoverable/Deferred Amounts. Report the
total of lines 2.a. through 2.f.
10.
Line 3. Net Operating Results that are Comparable to Budgeted
Amounts.
Report the net difference between line 1 less line 2.g. This
amount should be comparable to the amount of Net Operating Results provided
or otherwise approved by the Office of the Deputy Comptroller
(Program/Budget) in the applicable DoD Component’s current budget.
11.
Line 4. Amount Budgeted for the Return/Recovery of Prior Year(s)
Gain/Loss.
This includes the gain or loss occurring in the reporting period
that were deliberately included in stabilized rates for the current year to
correct (offset) over- or underpricing in a prior fiscal year(s).
(For
example, if accumulated operating results were a loss for the prior fiscal
year(s), the stabilized rate for the current year normally would recover, in
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