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Fundamentals of finance management overesas
Posted 7/12/2012 Updated 7/24/2012
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by Staff Sgt. Ryan Whitney
31st Fighter Wing Public Affairs
7/12/2012 - AVIANO AIR BASE, Italy -- It's no surprise to most Airmen that different locations provide changes from what they may have grown accustomed to at their prior stations, but one area where these changes aren't expected are in their paychecks, particularly when stationed overseas.
Though the concept remains the same, there are key differences in pay that Airmen should be aware of and monitor; Basis Allowance for Housing becomes an Overseas Housing Allowance and is augmented by an additional utilities allowance, and member receive an addition Cost of Living allowance to offset the increased cost of living overseas.
With BAH stateside, Airmen receive a fixed amount of money each month, and any excess money was then pocketed to be used for other expenses like utilities. On the other hand, OHA provides Airmen a fixed value allowance equal to the amount listed on their housing contract, in addition to a utilities allowance to cover the cost of gas, electric and other utilities.
Although different from BAH, OHA and Utilities allowances are combined under the BAH label under leave and earnings statements. Airmen should ensure this amount reflects the current utilities allowance and their actual rent amount, not their rent cap.
According to 1st Lt. Greg Cappuzzo, 31st Comptroller Squadron Finance Management Flight commander, the thing to remember with the utilities allowance is how sporadic the billing cycles can be. Many Airmen have heard stories of how after 3 years of not receiving a bill, Airman So-and-So finally received one covering three years for more than 10,000 dollars.
"This money is set aside to pay your bills whenever you get them, but some of the utility companies don't bill on time," said Cappuzzo. "It's best to set aside your utilities allowance so when you get hit with a big bill it isn't as intimidating. The Air Force provides enough to cover most costs as long as you spend the money on what it's supposed to be used for."
Cappuzzo recommends opening another bank or savings account that the utilities and housing allowance are directly deposited into, which doesn't get touched until time to pay a bill.
In addition to OHA and utilities, members also receive COLA to offset day-to-day expenses that come with living in another country.
This amount varies month to month depending on current currency exchange. Because the amount is constantly fluxing, members should not rely on this for day to day living, as that amount of money may not be available in the following month.
These pay changes, if managed properly, could turn from confusing to profitable if Airmen follow certain guidelines from the 31st Comptroller Squadron.
"The biggest solution to the problem's Airmen here have with their pay is making the effort to understand their leave and earning statement," said Cappuzzo. "A lot of the problems we see at finance could be caught and fixed early if Airmen would have paid attention to what the LES was telling them."
When Airmen receive too much pay, once the error is corrected that money must be returned, either through a single lump sum, or over a payment plan. When Airmen notice they are receiving too much, they should isolate the money and not spend it, then report the error to the 31st CPTS as soon as possible.
"When people are overpaid, we will work with them to figure out the best payment method for them depending on their situation," said Cappuzzo. "In the same way that we overpay people, if someone isnt getting something they should be getting, we will work as fast as we can to backpay the individual the full amount. That is why it's so important that people pay attention to their LES and make sure the information is correct."
When reviewing information on LES's, members should ensure all information is correct, especially rank, time in service, BAH/OHA and number of dependents.
Airmen can visit the following sites for more information on pay allowances, the current rates for each of the allowances, and calculate their current allowances in dollars: www.dfas.mil and www.defensetravel.dod.mil.
For more information or to contact the 31st CPTS, you may email 31cpts.fmfl@aviano.af.mil or call 632-7468.
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