Conduct Financial Management Battle Rhythm Events (End of Year Operations) SECTION I. ADMINISTRATIVE DATA All Course Masters/POIs Including This Lesson: NA Task(s) Taught(*) or Supported: NA Reinforced Task(s): NA Knowledge: NA Skill: NA Administrative/ Academic Hours: 50 mins Instructor Action Hours: 60 mins Test Lesson(s): NA Prerequisite Lesson(s): NA Training Material Classification: Security Level: This course/lesson will present information that has a Security Classification of: U - Unclassified. Foreign Disclosure Restrictions: FD1. This training product has been reviewed by the training developers in coordination with the FMB/SSI/Fort Jackson, SC 29207 foreign disclosure officer. This training product can be used to instruct international military students from all approved countries without restrictions. References: FM 1-06: Financial Management Operations. http://armypubs.army.mil/doctrine/DR_pubs/dr_a/pdf/fm1_06.pdf Student Study Assignment: All students must review training schedule and scan for all reading assignments and all regulations in advance. Instructor Requirements: Facilitator must review lesson plan material and associated multi-media one day prior to the actual date of instruction. Facilitator should be prepared to add relevant experience to assist in learning. Support Personnel Requirements: Assistant Instructors: All lesson plans material must be reviewed one day prior instruction. Assistant Instructors will be alert to the needs of the learners and assist as necessary. Must be prepared to take over class in the event of an interruption or emergency. Additional Support Personnel Requirements: None Equipment Required for Instruction: Standard FMS Classroom Equipment Materials Required: Instructor Materials: Each primary instructor should possess a lesson plan, slide deck, course handouts, and practical exercise, All required references and technical manuals will be provided by the Schoolhouse. Student Materials: Students should possess standard classroom supplies, course handouts, practical exercises,. all required references and technical manuals will be provided by the Schoolhouse. Classroom, Training Area, and Range Requirements: Classroom, Multipurpose, 1200 Square Feet, 30 Students Ammunition Requirements: None Instructional Guidance/ Conduct of Lesson NOTE: Before presenting this lesson, instructors must thoroughly prepare by studying this lesson and identified reference material. Proponent Lesson Plan Approvals: Reid Bonig, Approver, 15 Jan 2019 Section II. Introduction: Today we are going to discuss Conducting FM Battle Rhythm Events focusing on End of Year Operations Method of Instruction: Conference/Discussion Instructor to Student Ratio: 1:16 Time of Instruction: 5 mins Media: Small or Large Group Instruction Method of Instruction: Discussion (Small or Large Group) Mode of Delivery: Resident Instruction Instr Type (I:S Ratio): Military - ICH (1:25) (Every instructor must meet the qualification standards established in AR 350-1, AR 614-200,TR 350-70, TR 350-10 and the proponent school instructor certification program.) Time of Instruction: 5 mins

Terminal Learning Objective Action: Conduct Financial Management Battle Rhythm Events (End of Year Operations) Conditions: FM Leaders in a classroom environment using doctrinal and administrative publications, DFAS-IN Manual 37-100, DODFMR 7000.14-R, Department of Defense Financial Management Regulation and FM 1-06 Standards: Identify the purpose of End of Year Close Procedures, Identify the UFR Working Group; Understand the Mid Year Review; Identify Year End Roles and Responsibilities; Understand Unfunded Requirements; Understand Commitments and Obligations; Identify requirements reconciliation (contracts, MIPRs, GPC cutoff, fuel keys, GCSS-A); Understand MICC cut off dates; Identify YE preparation keys to success; Define issuing YE guidance to the Brigade Show Slide #2: Terminal Learning Objective Action: Conduct Financial Management Battle Rhythm Events (End of Year Operations) Conditions: FM Leaders in a classroom environment using doctrinal and administrative publications, DFAS-IN Manual 37-100, DODFMR 7000.14-R, Department of Defense Financial Management Regulation and FM 1-06 Standards: Identify the purpose of End of Year Close Procedures, Identify the UFR Working Group; Understand the Mid Year Review; Identify Year End Roles and Responsibilities; Understand Unfunded Requirements; Understand Commitments and Obligations; Identify requirements reconciliation (contracts, MIPRs, GPC cutoff, fuel keys, GCSS-A); Understand MICC cut off dates; Identify YE preparation keys to success; Define issuing YE guidance to the Brigade Facilitator’s Note: Throughout this lesson, solicit from learners the challenges they experienced in the current operational environment (OE) and what they did to resolve them. Encourage learners to apply at least 1 of the 8 critical variables: physical environment, political stability of the state, sociological demographics, infrastructure, military capabilities, information, time, and economics. Safety Requirements: In a training environment, leaders must perform a risk assessment in accordance with DA PAM 385-30, Risk Management. Leaders will complete a DD Form 2977 DELIBERATE RISK ASSESSMENT 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). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation 350-29. Risk Assessment Level: Low - Electrical Shock, Fire, Slippery Floors, Physical Injure/Strain, Tripping Tight Spaces in Classroom, and Influenza Assessment: Low Controls: Primary Facilitator (PF) will ensure: All electrical cords are properly stored under desks, liquid containers have lids on them and all spills are immediately cleaned and mopped and allowed to completely dry before allowing learners/personnel to walk on them. All chairs are ergonomically designed, adjust to individual preference and that all learners are awake and paying attention in class. All cables/cords are properly plugged in, sheathed, and secured along tables, walls, and ceilings. No damaged or frayed cords/cables will be used. PI will brief proper hand washing techniques, the use of hand sanitizer, and evacuation procedures. All trash will be removed daily. Leader Actions: Detailed in-brief covering all aspects of safety to include daily classroom inspections, spills cleaned immediately, emergency exit plans, leader checks, hygiene procedures, and weekly safety briefings. Environmental Considerations: NOTE: Instructor should conduct a risk assessment to include environmental considerations IAW the current environmental considerations publication, and ensure students are briefed on hazards and control measures. 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 ATP 3-34.5 Environmental Considerations and GTA 05-08-002 ENVIRONMENTAL-RELATED RISK ASSESSMENT. Evaluation: Learners will take the S8 Exam during the ______ module . Learners must score 80% or higher and International officers must score 70% or higher. Also, Learners will be assessed using “Go” or “No Go” on their knowledge and execution of S8 activities during the Capstone Exercise. Instructional Lead-In: It is imperative to have the base knowledge of what an S8 does before arriving to the position. Having a solid understanding will allow you hit the ground running on day 1, building relationships and supporting the Commander’s requirements. In this class, I will provide you as Financial Management Officers a basic understanding of the role the S8 provides to the Brigade level unit’s organization, operations and training mission.

Fiscal Year Battle Rhythm FY OPTEMPO $ Spend Freeze – Mid SEP Mid/Late - AUG Show Slide #3: Instructor's Note: Raise your hand if you completed a Year end close? Talk about that experience. Fiscal Year Battle rhythm overview. Notice the right hand bar graph. The red, yellow and green represents, in general, the flow of funding during the course of the fiscal year. The left hand chart demonstrates some of the normal activities that will occur throughout the fiscal year. Allotments Released - JAN CRA / Budget Approval New FY Start Up

Preparing for the New Fiscal Year Preposition documentation Revalidate requirements as necessary Update Legal Reviews Finalize Command Budget Estimate and Spend Plan Prepare prompt receipt, distribution, and recording of funding authorizations Show Slide #4: Instructor's Note: Resource managers need to complete many tasks prior to the start of the next Fiscal Year. The fiscal year process is never ending and is cyclical. Some things RMs need to do in order to prepare for the start of the fiscal year are: Preposition documentation (Fuel Cards, Defense Travel System Lines of Accounting, Contracts beginning Early October) Revalidate requirements that could not be executed in the current fiscal year due to timing consraints. Update legal reviews if current FY funds are being used Finalize the CBE and Spend Plan and prepare to push funding down to subordinate units.

Example Mid Year Review Brief Similar to PBAC Review obligation rates Justify discrepancies Prepare for Year End Show Slide #5: Instructor's Note: This slide shows an example of a Mid-Year Review that will occur in the March April time frame. This meeting is similar to the PBAC and used to discuss upcoming Year End procedures and review obligation rates to ensure commands are executing to standard.

Example Contacting (MICC) Cut Off Dates 3rd / 4th Quarter Actions Publish Year End Memorandum of Instruction / End of year Close guidance Example Contacting (MICC) Cut Off Dates Show Slide #6: Instructor's Note: Part of publishing Year end memorandums is including the cut off dates that the contracting office will publish. Notice that some dates are as early as April of the current year which does not give us much time to execute funds for large requirements.

Year-Round Preparations Establish realistic commitment/obligation limitations and targets Continuously review the SOF reports - Monitor funding execution - Identify overages/shortages - 80/20 Rule Monitor procurement cut-offs (KO) Manage Unfunded Requirement (UFR) list Conduct required joint, quarterly, and mid-year reviews - Joint Review Adhere to lead times - Contracting published requirement cut offs - Logistics Community (GCSS-A curt offs) Make UFR/Year End buys prior to drop dead dates Adhere to Time, Purpose, Amount restrictions Show Slide #7: Instructor's Note: 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

Fiscal Year End Close Fiscal year-end close (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. Commitments = Obligations Show Slide #8: Instructor's Note: Lets define this year end close. The ultimate goal is for commitments to equal obligations.

Perceptions Failure to obligate all available funding may result in fewer funds the next fiscal year (cost culture) 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 Show Slide #9: Instructor's Note: Now, lets look at some perceptions about year end. Cost Culture: 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 Reality Key Individuals: - Commanders; G4 logistics; Contracting; DFAS; G8 (Higher HQs) Identify open transactions that happened over the last year and adjust Includes Prior Year transactions (Remember you are closing the current fiscal year but other fiscal years are Cancelling) Supply system continues to operate Manage Year End Buys/ Execution of UFR list 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 Show Slide #110: Instructor's Note: 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 End Transaction Types for Consideration Contracts MIPRs/WBS GPC TDY GCSS-A Fuel Cards Contingency Appropriations: OCO, CERP, ASFF Show Slide #11: Instructor's Note: All of the common S8 execution methods that we learned about must be considered in Year End Close.

Example Pending Contracts Scrub with MICC Show Slide #12: Instructor's Note: In regard to contracts, this slide shows an example of a pending contracts scrub with the MICC. This forum lets the MICC know what requirements the brigade is working on and when they can expect to receive the funding packets.

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 Show Slide #13: Instructor's Note: 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.

Source Of Year-End Funds Commander’s reserve/contingency funds Cost Transfers De-obligations: downward adjustment or cancellation of an obligation. - Non-Stock Funds Orders and Payables - Miscellaneous obligation documents - Supply ordering system (G- Army) Show Slide #14: Instructor's Note: 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.

S8 Responsibilities Monitor daily execution Prepare unfunded requirements packets for execution Meet with G8 and Contracting Office Daily Prioritize Class II/IX for quick Zpark execution should excess YE funds become available Prepare requirements for the start of the next fiscal year Ensure legal reviews and letters of justification are updated for next fiscal year Show Slide #15: Instructor's Note: The S8 is the primarily responsible for ensuring that the Brigade successfully closes out its resources. The S8 is the direct link between the Brigade Commander and the supporting Division staff to ensure execution of requirements and a successful transition into the next fiscal year.

G8 Responsibilities Chair working PBAC Provide SITREPs to Chief of Staff Ensure issues resolved prior to September Ensure funding requests are processed in a timely manner Participate in daily close-out status brief Ensure fiscal accountability and close-out of their respective headquarters and subordinate units’ resources Show Slide #16: Instructor's Note: The G8 also has specific roles during the year end close. Many of the tools and meetings discussed earlier in the course apply to the G8s involvement in Year End Close. Some key coordination oppurtunites for success are the Working PBAC, Meetings with the MICC, Updates to the CoS, and Meetings with the G8s higher HQ. 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

Accounting and Reconciliation Review Files for possible missing documents (find missing documents 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) Show Slide #17: Instructor's Note: Part of year end close is the continual search for accounting documents to ensure complete packets and to prepare in the result of an audit. Communication with other agencies ensures that S8s can get required documents needed to close out transactions. S8s perform this accounting an reconciliation by completing the tasks on the slide.

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 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 Show Slide #18: Instructor's Note: 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

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 Show Slide #19: Instructor's Note: 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?

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 Publish in the YE OPORD for next year Show Slide #20: Instructor's Note: Most MACOMs require a lessons learned report on year end.

Terminal Learning Objective Action: Conduct Financial Management Battle Rhythm Events (End of Year Operations) Conditions: FM Leaders in a classroom environment using doctrinal and administrative publications, DFAS-IN Manual 37-100, DODFMR 7000.14-R, Department of Defense Financial Management Regulation and FM 1-06 Standards: Identify the purpose of End of Year Close Procedures, Identify the UFR Working Group; Understand the Mid Year Review; Identify Year End Roles and Responsibilities; Understand Unfunded Requirements; Understand Commitments and Obligations; Identify requirements reconciliation (contracts, MIPRs, GPC cutoff, fuel keys, GCSS-A); Understand MICC cut off dates; Identify YE preparation keys to success; Define issuing YE guidance to the Brigade Show Slide #21: Terminal Learning Objective Action: Conduct Financial Management Battle Rhythm Events (End of Year Operations) Conditions: FM Leaders in a classroom environment using doctrinal and administrative publications, DFAS-IN Manual 37-100, DODFMR 7000.14-R, Department of Defense Financial Management Regulation and FM 1-06 Standards: Identify the purpose of End of Year Close Procedures, Identify the UFR Working Group; Understand the Mid Year Review; Identify Year End Roles and Responsibilities; Understand Unfunded Requirements; Understand Commitments and Obligations; Identify requirements reconciliation (contracts, MIPRs, GPC cutoff, fuel keys, GCSS-A); Understand MICC cut off dates; Identify YE preparation keys to success; Define issuing YE guidance to the Brigade Facilitator’s Note: Throughout this lesson, solicit from learners the challenges they experienced in the current operational environment (OE) and what they did to resolve them. Encourage learners to apply at least 1 of the 8 critical variables: physical environment, political stability of the state, sociological demographics, infrastructure, military capabilities, information, time, and economics. Safety Requirements: In a training environment, leaders must perform a risk assessment in accordance with DA PAM 385-30, Risk Management. Leaders will complete a DD Form 2977 DELIBERATE RISK ASSESSMENT 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). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation 350-29. Risk Assessment Level: Low - Electrical Shock, Fire, Slippery Floors, Physical Injure/Strain, Tripping Tight Spaces in Classroom, and Influenza Assessment: Low Controls: Primary Facilitator (PF) will ensure: All electrical cords are properly stored under desks, liquid containers have lids on them and all spills are immediately cleaned and mopped and allowed to completely dry before allowing learners/personnel to walk on them. All chairs are ergonomically designed, adjust to individual preference and that all learners are awake and paying attention in class. All cables/cords are properly plugged in, sheathed, and secured along tables, walls, and ceilings. No damaged or frayed cords/cables will be used. PI will brief proper hand washing techniques, the use of hand sanitizer, and evacuation procedures. All trash will be removed daily. Leader Actions: Detailed in-brief covering all aspects of safety to include daily classroom inspections, spills cleaned immediately, emergency exit plans, leader checks, hygiene procedures, and weekly safety briefings. Environmental Considerations: NOTE: Instructor should conduct a risk assessment to include environmental considerations IAW the current environmental considerations publication, and ensure students are briefed on hazards and control measures. 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 ATP 3-34.5 Environmental Considerations and GTA 05-08-002 ENVIRONMENTAL-RELATED RISK ASSESSMENT. Evaluation: Learners will take the S8 Exam during the ______ module . Learners must score 80% or higher and International officers must score 70% or higher. Also, Learners will be assessed using “Go” or “No Go” on their knowledge and execution of S8 activities during the Capstone Exercise. Instructional Lead-In: It is imperative to have the base knowledge of what an S8 does before arriving to the position. Having a solid understanding will allow you hit the ground running on day 1, building relationships and supporting the Commander’s requirements. In this class, I will provide you as Financial Management Officers a basic understanding of the role the S8 provides to the Brigade level unit’s organization, operations and training mission.