Conduct End of Year Operations SHOW SLIDE: EXPENDITURES SECTION I. ADMINISTRATIVE DATA Academic Hours / Methods 1 hrs / min /Large Group Instruction 0 hrs / min /Practical Exercise 0 /Test 1 hrs /Total Hours SECTION II. INTRODUCTION: Today we are going to discuss End of Year Operations. Method of Instruction. Conference / Discussion Instructor to Student Ration: 1:24 Time of Instruction: 5 min Media: Large Group Instruction Concrete Experience b. Concrete Experience (05 minutes) The concrete experience serves as a trigger of past experience, knowledge, and it is also a focusing mechanism for the lesson that follows to support the teaching of new content. The collective intent is to force the student to connect to the lesson and is the precursor to intuitive thinking of experiential learning model. Note: Concrete experience: click on “Identify Year End Procedures“to open the “82 CONS, CPTS, team up for EOY closeout” hyperlink: https://www.youtube.com/watch?v=hDve2_4QBnA Instructor Note: To open the discussion canvas the class to see how many have deployed. Find out what they did on the deployment. c. Publish and Process (15 Minutes) During this phase of the Army Learning Model the instructor will solicit responses of the student’s reaction to the concrete experience. The students will reflect on their experience and knowledge of the topic and they will begin a reconciliation of where they are and, if successful, where they will be at lesson end. The critical portion of this part of the ALM process is to force the students to reflect. As the instructor you can achieve this by asking a series of thought influencing questions, for example: What happened in the video/skit/slide and how could it relate to this lesson? How did it make you feel about the personal responsibility that must be taken to mitigate causing undue hardship to Soldier’s and their Family’s? What did you hear/see that makes you relate it to your own experiences? What was your reaction to the magnitude of miscues? Having the students think critically is the ultimate goal of publish and process. Force the students to explain their answers; meaning, how and why did they arrive at the solution to the questions. As the instructor, you should also be looking for responses that will help the student’s transition from publish and process to generalize new information. During this process, remind the students of lesson objectives as they transition from publish and process into generalize new information. You will now learn procedures used in the Tear End Close process. You must pay careful attention to this block of instruction because a large portion of this course is centered on the craddle to grave process for a deployed Financial Manager. Show Slide 2

Terminal Learning Objective Action: Conduct End of Year Operations Conditions: In a classroom, given reference material Handbook 09-27 at http://usacac.army.mil/cac2/call/docs/09-16/app-d.asp, DFAS-IN Manual 37-100, DFAS-IN Regulation 37-1, DODFMR 7000.14-R, Vol 10, Department of Defense Financial Management Regulation Standards: Identify purpose of End of Year Close Procedures, key players, their functions, the process, the reporting requirements, and the controls. Slide 2 SAFETY REQUIREMENTS: In a training environment, leaders must perform a risk assessment in accordance with FM 5-19, Composite Risk Management. Leaders will complete a DA Form 7566 COMPOSITE RISK MANAGEMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations, (METT-TC). Note: During MOPP training, leaders must ensure personnel are monitored for potential heat injury. Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the MOPP work/rest cycles and water replacement guidelines IAW FM 3-11.4, NBC Protection, FM 3-11.5, CBRN Decontamination. RISK ASSESSMENT LEVEL: Low ENVIRONMENTAL STATEMENT: Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so, you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Refer to FM 3-34.5 Environmental Considerations and GTA 05-08-002 ENVIRONMENTAL-RELATED RISK ASSESSMENT. EVALUATION. You will be given an exam which will include Review Detailed Expenditure Accounting Documents. A passing score on this examination is 80% and for International Students (70%). INSTRUCTIONAL LEAD-IN. To ensure every vendor is paid properly and promptly, the DoD initiated policies and procedures that govern expenditures. This lesson will focus on the streamlined business practices that DoD has lined out to ensure documents are completed accurately and efficiently. Also, this lesson will show the flow process of documents in order for projects to be awarded and tracked. Show Slide 3  

Definition Fiscal year-end closing (year-end): The culmination of year-round resource management and fund control. Specifically those actions taken by resource managers, in the 4th quarter (July-Sep) of the FY, to ensure effective management and utilization of resources. Slide 3 Lets define this task Show Slide 4

Perceptions Failure to obligate all available funding may result in fewer funds the next fiscal year Obligation should occur as long as valid (bona-fide) requirements exist Next year’s fund distribution is based on the mission or functions to be accomplished, not on the obligation rate of the current year Slide 4 Now, lets look at some perceptions about year end. Not really. What you did last year doesn’t completely effect next year’s funding level. However, it may effect the program years. Arguments from higher headquarters concerning what you said you wanted versus what you did will erupt. True! Fiscal Law does not go away at year end. However, remember there are exceptions: lead time, delivery order time. Right! Funding levels ARE effected by the missions or OPTEMPO established for the year. For example, if this year your division had 4 NTC rotations and none next year. Then, the total AFP would decrease. Realize that you don’t have the same level of OPTEMPO/Exercises/Taskings/CONOPS each year Show Slide 5

Year End Close Out Letter of Instruction (LOI) DFAS publishes a Letter of Instruction (LOI) with specific guidance for all fiscal year end close out actions. The LOI contains milestone dates and suspense actions for all items which must be completed prior to 30 Sep. Financial managers are responsible for maintaining a current version of the LOI and for meeting all applicable suspense actions. The current version of the Year End LOI can be found at any of the links below: https://dfas4dod.dfas.mil/centers/dfasin/yearend/FY14.htm https://www.us.army.mil/suite/files/29931696 https://intranet.campbell.army.mil/division/g8/Shared%20Documents/Forms/AllItems.aspx

Year End Close Out Letter of Instruction (LOI) Key Dates (example) 17 Sep - Cut-off for Supply Turn-ins (LOI Item 198) 17 Sep - GCSS-Army will apply a catalog price update to all Material Master data with an effective date of 1 October 2014. 18 Sep - FCM; 1st Mock Catalog will be ran 24 Sep - FCM; 2nd Mock Catalog will be ran 25 Sep - DFAS will upload the last inferfund bill to DCAS. ODS will continue to send IFBs to FCM up to 27 Sep so Commands can obligate funds 26 Sep - Cutoff for clearing Unmatched Transactions 26 Sep - Final Day for input to DTS, FCM, SARSS, FAS, IFS and all other interfacing systems. 26 Sep - Final Day for purchases on the Government Credit Cards 27 Sep - Army Supply System Cutoff at midnight EDT. 27 Sep - DTS will cease processing transactions at 2359 hours EDT 28 Sep - FCM; 3rd Mock Catalog will be ran 29 Sep - FY Close Out Group 2 FORSCOM 1200 hours EDT

End of Year Close Out July September EoY Procedures Published Unfinanced Requirements (UFR) OPORD Systems Offline Credits Expenses (TDY & CLS IX) The EoY procedures are published by various organization and if they are not then it is the responsibility of the RM to seek the guidance from that organization. -ABO down to the Army Command or Army Service Component Command, each command then publishes their own guidance based upon the higher command’s guidance -DFAS will publish guidance concerning Unmatched transaction, interest buckets and civilian pay -Contracting office will publish guidance on dollar value and when they must be turned in by IOT contract prior to close -G4 will publish guidance when supply systems shut down for year end and start up for next FY, credits Daily “Hot Wash” Accounts Buy Ahead Executable UFRs

Year End Reality Not done in a vacuum! - Commander - G4 logistics - DMMC, CSSAMO - Contracting - DFAS - G8 (Higher HQs) Identify open transactions that happened over the last year and adjust Prior Year transactions also Slide 5 Don’t think for a second you the RM performs year end close on your own. There are several key staff members involved, plus the commander has a say. The Commander gives guidance on priority, issues, controls G4 handles all the stock fund issues, automation, credits, orders etc Contracting also has some key dates. They can’t process large contracts >$100 without a 90 day bidding process. DFAS provides cycle runs, reporting formats, etc DCSRM gives you nearly half of your year end guidance: reports, fund withdrawal, centralized processes, FAD flow, distribution, etc We have review everything that has happened in our systems over the past year and solve open transactions, ensure products or services were performed, check on open issues in the prior years, especially for the FY about to become closed. Acronym: Division Materiel Management Center (DMMC) Combat Service Support Automation Management Office (CSSAMO) Show Slide 6

Year End Reality (Cont.) Mission doesn’t stop! Supply system continues to operate - Higher managerial controls imposed Manage Year End Buys/ Execution of UFR list - One requisition/document for large $$ New FY challenges - Continuing Resolution Authority (CRA) - Subject to Availability of Fund (SAF) statements on obligating documents for new FY purchases Bona Fide Need dilemmas Slide 6 While all these year end tasks are being done, the MISSION NEVER STOPS! We still have to train, maintain, and sustain the force. However, we add more managerial controls at this time of year Supplies are still ordered, TDYs still continue, things continue to march per say We have year end buy lists: list of things that we want to buy that are one requisition for a large amount of $$. Example, NBC suit stock replenishment We also must prepare for the new FY. CRA means that we continue as normal, but with no new initiatives/buys. All FY cross over requirements must have the SAF statement. Bona fide need dilemma; can you order something that isn’t a current year need? Don’t know, call JAG! Show Slide 7

Year-Round Preparations Establish realistic commitment/obligation limitations and targets Prepare prompt receipt, distribution, and recording of funding authorizations Reconcile the NSFOP list Continuously review the SOF reports - Monitor [Functional Area] AMSCO execution - Identify overages/shortages Monitor procurement cut-offs (KO) Manage UFR list Monitor and promptly adjust reimbursable orders Slide 7 The key to year end success is paying attention to the “books” year round. Set targets and stick to them. If off target, then adjust fire. Prompt action/resolution prevents headaches when time is short We talked about how important the NSFOP is. If you monitor this all year the open transactions/ULOs/NULOs will be small. Watch what is happening by AMSCO! Know when contracting starts to freeze requirement processing: it will effect your year end procurements Monitor, manage, and recommend when UFRs should be executed. 1Q, Mid Year? Make sure the drop dead dates haven’t passed when you’ve decided to fund UFRs. You should see a theme with this slide; monitor, monitor and quickly adjust. Yes, to get a 99.9% obligation rate, you have to start 1 OCT. Acronym: Non Stock Fund Orders/Payables (NSFOP) Army Management Structure Code (AMSCO) Unfinanced Requirement (UFR) Show Slide 8 Year End Starts 1 OCT of the FY

Year-Round Preparations (Cont.) Conduct required joint, quarterly, and mid-year reviews - August Joint Review recommended Adhere to lead times - Contracting - Logistics Community Make UFR/Year End buys prior to drop dead dates Avoid the appearance of impropriety - Time, Purpose, Amount restrictions Slide 8 The tool that’s available for you throughout the year is the Joint Review. Painful as it may be, it provides you the chance to clear up issues and open transaction before year end.. Year end is not the time to find out you have 10,000 open transactions We believe Aug is the best time for the 3rd review. Lead times. When will contracting stop processing contracts, the logisticians run the stock fund cycles, etc UFRs, buy when you can before they’re void Again, TPA still applies at year end Show Slide 9

Joint Review Program 3 Joint Reviews per FY August Review recommended Tool to clean/maintain accounts for Year End 3 Joint Reviews per FY August Review recommended Unliquidated Obligation Reviews: Reviews should concentrate on goals Example Goal list: Slide 9 Note: Prompt Payment Act (PPA) Negative Unliquidated Obligation (NULO) Joint Review continued Here is an example of goals for the FY close Show Slide 10

4th Quarter Actions Publish Year End Memorandum of Instruction Establish internal control, involve commanders/ staff Maintain daily records of current balances of available funds - plan for use of all funds Obligate funds as programmed Review obligations daily - adjust immediately Review open commitments daily Slide 10 What to do as the RM have to do to get the command, staff, and subordinate units ready? Publish the MOI. Tell them the who, what, when, where and why for year end. We have an example in the summary sheets for you. Year end: everything is passed through your office for approval Daily and sometimes hourly check the FIN systems for SOF. Does the SOF support your year end spend plan Through out the year, obligate as you programmed. At year end, attempt to fulfill the programmed amount. If you were following your spend plan, then this shouldn’t be a problem. Monitor obligations. Do you see a trend yet? Review your open commitments daily and coordinate with the contracting office to review on a weekly basis. This is important so you will know as soon as possible if you are going to need to shift funding from one priority to another. Show Slide 11

General Policies/Procedures G8 is central point for control of funds Comptrollers ensure fiscal accountability and close-out of their respective headquarters and subordinate units’ resources G8s: Published year-end MOI Chair the year-end Working PBAC Develop year-end spend plan Oversee execution of that plan Slide 11 At year end, you’re the main man/woman What do you have to do? Read bullet two What specifically do you do? Read bullets three Show Slide 12

Source Of Year-End Funds De-obligations: downward adjustment or cancellation of an obligation. - Non-Stock Funds Orders and Payables - Miscellaneous obligation documents - Supply ordering system (ULLS/SARSS) Commander’s reserve/contingency funds Cost Transfers Slide 12 Where can you find funds? Deobligations- should have found all this during Joint Review. Did you have and MODs that didn’t come occur? Any credits in the supply system? Commander’s want their reserve. At year end, its time to ask to use it. But, always have enough set aside until the last day. You never know if an Apache helicopter engine breaks down on 30 SEP. Cost transfers. If you have performed any reimbursable work or need to properly charge an AMSCO, you cost transfer the disbursement. At year end disbursements are worked hard at the DFAS. Acronym: Unit Level Logistics System (ULLS) Standard Army Retail Supply System (SARSS) Show Slide 13

Tactical Units Conducted within command/logistical channels IAW commander’s guidance Strict adherence to PLL procedures - PLL “fill or kill” simultaneous obligation - PLL back order for deliveries current year only - Readiness requirement/bona fide need, submit requisition regardless Slide 13 The Commander, G4, and you make it happen. Fill or kill in logistic terms means that if the requisition is valid, fill it. If it is backordered or invalid, kill it. For pacing items, missile reportable items, aircraft, etc, you must place on order. Example, if a tank blows its engine, you must order it because the vehicle is deadlined (inoperable). Equipment like this must have requisitions in the system. The commander can make the call to wait to order the part(s) only. Show Slide 14

G8 Responsibilities Chair working PBAC Provide SITREPs to Chief of Staff weekly Ensure issues resolved prior to September Ensure funding requests are processed in a timely manner Participate in daily close-out status brief Slide 14 Specific tasks RMs perform at year end: Chair the working PBAC (budget meeting) Inform the COS on status Solve issues Handle funding decisions quickly Brief daily Show Slide 15

Year-End Milestones MIPR, TDY, etc close date Centralized budget date G8 flash reporting cycle(s) Final report date AAR/lessons learned Slide 16 Admin Higher HQ Make a report Submit lessons learned. Show Slide 17

Year-End Milestones (Cont.) Contracting Procurement cut off for type and amount Government Purchase Card freeze PR&C Processing for micro purchases Logistical ULLS/SARRS freeze Credit processing Restock plan Stock Fund orders for year end buys TDY processing DFAS cycle runs Slide 15 Milestones to consider from the other staff: KO G4 Admin DFAS Show Slide 16

Fiscal Year Closeout Review Files for possible missing documents (missing document then…) Get missing documents (From Finance and Contracting) Obligate/Deobligate/Close once File is complete (if file is not complete…) Make a list of files with missing documents Identify status and deficiency Recommend Action Un-obligated commitments Established NLT obligation date for Contracting Officer (KO)s Identify easily obligated requirement to execute residual cash Create Miscellaneous Obligation Document (MOD) Slide 18 Year end closing is the culmination of year-round resource management and fund control. Specifically those actions taken by resource managers, in the 4th quarter (July-Sep) of the fiscal year, to ensure the effective management and utilization of resources. The RM must publish a Year-End Memorandum of Instruction to prepare the command, staff, and subordinate units ready. Tell them who, what, when, where, and why they are doing the year end closing. There are some general policies or procedures for year end. RM is the central point for control of funds. Comptrollers ensure fiscal accountability and close-out of their respective headquarters and subordinate unit's resources. Resource Manager's: Published year-end MOI. Chair the year-end Working PBAC. Develop year-end spending plan. Oversee execution of that plan. Show Slide 19

Year End Close Modifications Utility or phone bills for current year that will come in after year end close Travel that will cross fiscal years but not voucher until after YEC Transportation (TAC codes) bills normally come in 60 to 120 days after completion of movement Other known bills for current year but haven’t been paid YEC memorandum to support the FMZ for audit purposes Generally any utility or phone bills will be paid as of the closing date on the bill. This means the close date for the bill may be 30 Sept ** and you will need to FMZ funds for this bill. It is important that you know you the dates for any bills of this type and plan accordingly You will need to check DTS for travel crossing FYs and keep a list so you can keep up with the amount. It is best to try and avoid this but sometimes the mission doesn’t permit TAC code bills must be tracked so you an keep up with the amount. Just know that often these type of bills don’t come in for 60-120 days Every time you create a year end close FMZ you must justify it and the amount. Saying this is what we did last year isn’t an excuse for audit readiness. Recommend you have copy of bills or estimates to justify the FMZ

MIPR and WBS Close Out Contact any organizations you have a Military Interdepartmental Purchase Request for close out Adjust any Purchase Orders and then adjust the Purchase Request Contact organizations you have funded a Work Breakdown Structure to ensure use of available funding Pull any funding from WBS’s and push it back to the Army level Many organizations will not completely use all funding on a MIPR. When the funding is sent generally it is an estimate. That being said it is very important to track these and to get the final 448-2 with any unused funds Once the funds are returned the PO must be adjusted to the lower amount and then the PR needs to be lowered as well. Ensure the correct CLINs are adjusted if not this could cause a UMT or a payment to be late If you have funded a WBS and all of the funding hasn’t been obligated then you need to contact the organization prior to pulling the funding. Don’t just pull the funds because the organization may be awaiting a modification. If you are unable to contact the organization then pull the funding and they will call you if they still need it. Pull any unused funding from your WBS’s and push it to the ARMY level so your higher head quarters can pull the funding. You will need to watch this until the end since funding can fall out at any time.

Goals Close the year without any Anti-deficiency Act (ADA) violations Meet FY Joint Review/Reconciliation Program goals Close FY with all expired year accounts drawn down (zero ULO balance) Be postured to execute any year-end funds - UFR list - Year End Buy list Slide 19 As with any major task, arm yourself and your staff with some goals on completing year end ADA- makes sense and mandatory Joint review- what do you want the outcome to look like ULOs- no wasted money You’ll be ready, but what about the UFR action officer? Did he research, is the requisition ready, with the end item manager or supplier be able to fulfill the order? Show Slide 20

Document Lessons Learned Lessons learned report required   All lessons learned during FY Lessons learned during close-out All learn from each others experiences Improvements for future Center For Army Lessons Learned http://usacac.army.mil/cac2/call/docs/09-16/app-d.asp Slide 17 Most MACOMs require a lessons learned report on year end. This is what you submit Center For Army Lessons Learned; http://usacac.army.mil/cac2/call/docs/09-16/app-d.asp Show Slide 18

Terminal Learning Objective Action: Identify Year End Close Procedures Conditions: In a classroom, given reference material Handbook 09-27 at http://usacac.army.mil/cac2/call/docs/09-16/app-d.asp, DFAS-IN Manual 37-100, DFAS-IN Regulation 37-1, DODFMR 7000.14-R, Vol 10, Department of Defense Financial Management Regulation Standards: Identify purpose of Year End Close Procedures, key players, their functions, the process, the reporting requirements, and the controls. Slide 28 Note: Summarize and Restate TLO Show Slide 29

Appendix A Assessment Plan Slide 29 Appendix A Contribution to Group Work 30% Written Communication 10% Oral Communication Module Post Assessment 50% Total  100% Contribution to Group Work. See FM DORMC Contribution to Group Work Rubric for specific grading criteria.   Written Communication. See FM DORMC Written Communication Rubric for specific grading criteria. Oral Communication. See FM DORMC Oral Communication Rubric for specific grading criteria. Module Post Assessment. A comprehensive post assessment consisting of multiple-choice, matching, fill-in-the-blank and ordering questions will be administered via Blackboard Academic Suite upon completion of the module.

Appendix B Presentation Outline Appendix B Slides Slide Number Description Slide 1 Identify Year End Close Slide 2 Terminal Learning Objective Slide 3 Definition Slide 4 Perceptions Slide 5 Year End Reality Slide 6 Year End Reality (Cont.) Slide 7 Year-Round Preparations Slide 8 Year-Round Preparations (Cont.) Slide 9 Joint Review Program Slide 10 4th Quarter Actions Slide 11 General Policies/Procedures Slide 12 Source Of Year-end Funds Slide 13 Tactical Units Slide 14 G8 Responsibilities Slide 15 Year-End Milestones Slide 16 Year-End Milestones (Cont.) Slide 17 Document Lessons Learned Slide 18 Fiscal Year Closeout Slide 19 Goals Slide 20 Antideficiency Act Slide 21 Antideficiency Act Reports Slide 22 Antideficiency Act Reports Slide 23 Antideficiency Act Reports Slide 24 Antideficiency Act Reports Slide 25 Antideficiency Act Reports Slide 26 Antideficiency Act Slide 27 Antideficiency Act Close Calls Slide 28 Terminal Learning Objective Slide 29 Appendix A Slide 30 Appendix B