1. Analyze Reimbursement Concepts
U.S. ARMY SOLDIER SUPPORT INSTITUTE
NONCOMMISSIONED OFFICER ACADEMY
Show Slide #1: Analyze Reimbursement Concepts
Title: Analyze Reimbursement Concepts
References:
FM 1-06, Financial Management Operations, 04/15/2014
DFAS-IN 37-1, Finance and Accounting Policy Implementation, Chapter 12, Section 1210, 1211, 01/01/2000
DFAS-IN 37-1, Finance and Accounting Policy Implementation, Chapter 4, Section 0403, 01/01/2000
DOD R VOL 3, Chapter 8, Budget Execution - Availability and Use of Budgetary Resources, 01/05/2015
Section I. Administrative Data
Academic Hours/Methods
00 hrs. / 20 mins. ELM – Concrete Experience
03 hrs. / 30 mins. DSL (large or small group discussion)
01 hrs. / 00 mins. PE (practical exercise (Hands On)
00 hrs. / 00 mins. Test
00 hrs. / 00 mins. Test Review
05 hrs. / 00 mins. Total Hours
Section II. Introduction:
Method of Instruction: CE- ELM Concrete Experience
Facilitator to Learner Ratio: 1:16
Time of Instruction: 00 hrs. / 20 min.
Media: PowerPoint Presentation
Facilitator Material: Each primary facilitator should possess a lesson plan, slide deck, course handouts, and a summary sheet containing the above noted references.
Learners Material: Learners should possess all required printed reference material, course handouts, a summary sheet containing the above noted references and standard classroom supplies.
Note: All required printed reference material, and technical manuals will be provided by the Schoolhouse.
Method of Instruction: DSL - Discussion (large or small group)
Learning Domain - Level: Cognitive / Applying
Motivator: Starts on next two slides, concrete experience dealing getting the learners to think and compare the different funding authorities. 1

2. (Concrete Experience Part 1)
Agenda / Dots
(Concrete Experience Part 1)
List topics from your read ahead assignment that you feel:
- are the most important for this lesson
- need more clarification
- need extra emphasis
List a topic of discussion, if it has not already been posted and place a dot next to the topic that you feel is the most important and should be covered in this lesson.
Show Slide #2: Agenda / Dots (Concrete Experience Part 1)
Facilitator’s Note: Allow learners several minutes to post the topics and place their dots next to the topic within the lesson that they feel is most important; hash marks, checks, or similar marks may be used in place of the dots. The topics listed should give the instructor an idea where additional discussion time may be needed to ensure students have a full understanding of the lesson.
List topics from your read ahead assignment that you feel;
are the most important for this lesson
need more clarification
need extra emphasis
List a topic of discussion, if it has not already been posted and place a dot next to the topic that you feel is the most important and should be covered in this lesson.

3. (Concrete Experience Part 2)
Funding Authorities
(Concrete Experience Part 2)
Discussion:
Many public schools institute a revolving account for travel expenses. The revolving account works by having the school district place pre-determined money amounts into an account for the local school. Once employees incur a travel expense, they may use the funds within the account to pay for those expenses. When the travel is complete and settled, the employee will then reimburse the school for the charged expenses and remit any receipts to the officials over that account. The funds received from the employee are then re-deposited back into the account.
What are the three types of funding authorities?
Which funding authority does this scenario most closely resemble and why?
Show Slide #3: Funding Authorities (Concrete Experience Part 2)
Facilitator’s Note: Facilitate discussion base on the questions posted on the screen.
Notes: Inform Learner’s
There is no right/wrong answer to the question proposed above.
The question is designed to get learners to think about the topic amongst their group and with the class.
This is designed to help learners relate to different funding authorities.
Allow several minutes to discuss and propose an argument.
Afterwards, groups will present their argument to the class.
Facilitator’s Note: Break the class into groups of 3 to 4. Give the class/groups several minutes to read and discuss the scenario and the questions. Poll each group to see what answer they came up with.
Discussion:
Many public schools institute a revolving account for travel expenses. The revolving account works by having the school district place pre-determined money amounts into an account for the local school. Once employees incur a travel expense, they may use the funds within the account to pay for those expenses. When the travel is complete and settled, the employee will then reimburse the school for the charged expenses and remit any receipts to the officials over that account. The funds received from the employee are then re-deposited back into the account.
What are the three types of funding authorities?
Which funding authority does this scenario most closely resemble and why?

4. Terminal Learning Objective
Action: Analyze Reimbursement Concepts
Conditions: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy learners must show proficiency with:
Identify the purpose of reimbursement programs.
Determine the different funding authorities.
Identify the reimbursement stages.
Show Slide #4: Terminal Learning Objective
Action: Analyze Reimbursement Concepts
Conditions: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy learners must show proficiency with:
Identify the purpose of reimbursement programs.
Determine the different funding authorities.
Identify the reimbursement stages.
Instructional Guidance: 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 , 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
Risk Assessment Level: Low.
Environmental Considerations: 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 Environmental Considerations and GTA ENVIRONMENTAL-RELATED RISK ASSESSMENT.
Evaluation: Learners will take the Fund the Force exam. Learners must score 80% or higher.
Instructional Lead-in. (Publish and Process): From the topics previously listed on the “Agenda / Dots scenario, commence having discussions base on the chosen topics by the learners based on the read ahead assignment that they felt were most important, needed more clarification and needed extra emphasis. You may allow learners to post more questions throughout the lesson. At the end of the lesson, the questions will be reviewed.

5. Reimbursement Program
PURPOSE
Allows U.S. Government activities to accept orders for goods or services from other U.S. Government or non-government activities.
Allows the installation to provide goods/services to
non-mission activities.
Does not deplete the installation’s mission funds.
Show Slide #5: Reimbursement Program
Learning Step Activity #1. Identify the purpose of reimbursement programs.
Method of Instruction: DSL – Discussion (Small or Large Group)
Facilitator to Learner Ratio: 1:16
Time of Instruction: 00 hrs. / 45 mins.
Media: PowerPoint Presentation, Handout
21st Century Soldier Competencies: The 21st Century Soldier Competencies are essential to ensure Soldiers and leaders are fully prepared to prevail in complex, uncertain environments. Throughout the lesson discussions, seek opportunities to link the competencies with the lesson content through the Learner’s experiences.
Facilitator's Note: Before facilitating this lesson, ask the Learners which of the 21st Century Soldier Competency do they think pertain to this lesson. Facilitate a discussion on the answers given and at the end of the lesson revisit it and see if the Learners still believe their choice are the same.
Note: For this lesson, these competencies should be talked about.
#4. Lifelong learner (includes digital literacy)
#5. Teamwork and collaboration
#6. Communication and engagement (oral, written, and negotiation)
#7. Critical thinking and problem solving
Facilitator’s Note: Transition and facilitate discussions with learners on the purpose of the reimbursement program.
The Purpose of the Reimbursement Program:
Allows U.S. Government activities to accept orders for goods or services from other U.S. Government or non-government activities.
Allows the installation to provide goods/services to non-mission activities.
Does not deplete the installation’s mission funds.

6. Reimbursement Program (Cont.)
BENEFITS
Better utilization of resources
Economies of scale
Centralized installation support functions
Proper charging of support costs
Show Slide #6: Reimbursement Program (Cont.)
Facilitator’s Note: Facilitator read and facilitate discussion using the slide.
Benefits:
The reimbursement program gives the activity.
Better utilization of resources.
Reimbursement basis, budget estimates, and importance of costing.
Economies of scale.
One organization provides the support to many activities rather than each activity trying to provide the support.
The organization should then be able to do it cheaper and more efficiently than the sum of the pieces.
Centralized installation support.
Proper charging of support cost.
The cost goes where it is needed.
Reimbursable is defined as a request for work or services performed by one activity for another government activity or a non-government activity.
The total cost of the work or services is called an expense by the activity providing the work or service.
Making a reimbursement incurs a credit against an allotment account or operating budget of the requesting activity and a credit against the obligation accounts of the performing activity. 
The reimbursement program differs from the direct or mission program.
It allows the installation to use funds for non-mission activities.
It is used so that an installation can provide non-mission functions, goods or services to requesting activities without consuming mission and base operations (BASOPS) funds.
For example:
Trailer court utilities.
It is not the normal mission of an installation to provide utility service to activities such as a trailer park.
However, it is not practical to maintain several sources of utility services at the same installation.
The reimbursement program allows the installation to provide the services on a reimbursable basis.

7. LSA #1 Check on Learning True of False
Q1: The reimbursement program allows the installation to provide goods/services to non-mission activities. Q2: The reimbursement program deplete the installation’s mission funds.
Show Slide #7: LSA #1 Check on Learning
Facilitator’s Note: Ask the following questions and facilitate discussion on answers given.
Note: Animated slide, click enter to reveal answers.
True or False:
Q1: The reimbursement program allows the installation to provide goods/services to non-mission activities.
Q2: The reimbursement program deplete the installation’s mission funds.

8. LSA #1 Summary
During the first portion of the lesson, we learned about the purpose of the reimbursement program. Which allows U.S. Government activities to accept orders for goods or services from other U.S. Government or non-government activities. We learned about the benefits, reimbursement basis, budget estimates, and importance of costing. We went over the centralized installation support and proper charging of support cost.
Show Slide #8: LSA #1 Summary
Facilitator's Note: During the first portion of the lesson, we learned about the purpose of the reimbursement program. Which allows U.S. Government activities to accept orders for goods or services from other U.S. Government or non-government activities. We learned about the benefits, reimbursement basis, budget estimates, and importance of costing. We went over the centralized installation support and proper charging of support cost.

9. Funding Authorities Automatic Reimbursement Authority (ARA)
3 TYPES
Direct Obligation Authority (DOA)
Automatic Reimbursement Authority (ARA)
Funded Reimbursement Authority (FRA)
Show Slide #9: Funding Authorities
2. Learning Step Activity #2. Determine the different funding authorities.
Method of Instruction: DSL – Discussion (Small or Large Group)
Facilitator to Learner Ratio: 1:16
Time of Instruction: 01 hrs. / 00 mins.
Media: Power Point Presentation, Handout
Facilitator’s Note: Facilitator transition now to LSA 2, and facilitate discussions on the three different types of funding authorities.
There are three funding authorities:
Direct Obligation Authority (DOA).
Automatic Reimbursement Authority (ARA).
Funded Reimbursement Authority (FRA).
Note: If the students did not identify the similarity from the concrete experience, the public school system use what is similar to the FRA in the military.

10. Direct Obligation Authority (DOA)
Specific dollar amount received on the RDD
For mission activities and base operations
Quarterly amount immediately available for obligation upon receipt of the allotment
Controlled by the installation
Show Slide #10: Direct Obligation Authority (DOA)
Facilitator’s Note: Facilitator read and facilitate discussion using the slide.
Direct Obligation Authority:
Definition:
DOA is defined as the authority to spend direct funds or mission money.
DOA is:
Specific dollar amount received on the Resource Distribution Document (RDD).
For direct mission use only (BASOPS, OMA).
A quarterly amount immediately available for obligation.
Controlled by the installation.

11. Automatic Reimbursement Authority (ARA)
No specific dollar amount
For non-mission activities
Not immediately available for obligation upon receipt of the allotment (Obligation Authority “generated” based on receipt of order)
Controlled by the installation
Show Slide #11: Automatic Reimbursement Authority (ARA)
Facilitator’s Note: Facilitate discussion on areas below using the slide.
Automatic Reimbursement Authority:
ARA transactions result when an installation performs support to individuals, activities, or other installations.
Funds are generated when a buyer/seller agreement is made.
Higher headquarters (HQ) does not control the amount of dollar transactions the installation can perform.
The Director of Resource Management (DRM) puts a ceiling on the amount of goods or services provided.
The ARA funding authority is normally listed in the Status of Funds Report (SoFR), but may be also found in the Funding Authorization Document (FAD).
An ARA is:
Not in a specific dollar amount.
For non-mission needs.
Not immediately available for obligation upon receipt of the allotment (obligation authority "generated“ based on receipt of order).
Controlled by the installation’s DRM.
Facilitator’s Note: Inform learners that a diagram example of an ARA will be shown on the next slide.

12. Automatic Reimbursement Authority (ARA) (Cont.)DA
ACOM
SoFR ARA
REQUEST
GOODS/SERVICES
Show Slide #12: Automatic Reimbursement Authority (ARA) (Cont.)
Facilitator’s Note: Facilitator navigate the learners through the steps and facilitate discussion explaining the slide starting with ACOM.
Automatic Reimbursement Authority: (Cont.)
The higher headquarters through the budget process issues the SoFR to the installation DRM.
The cost for utilities is centralized with the Director of Public Works (DPW) who provides utility services to the installation.
The trailer park provides utility service to trailer park customers.
Customers request activation of service through a service order or request.
The customer is billed for the utilities used and makes payment to a collecting activity, which deposits the funds into an appropriate account to reimburse for the service provided.
The collecting activity reports the dollars collected to the ACOM.
In essence, this is a revolving funds transfer.
The customer’s request drives the funds to become available; once the services/goods have been provided, the customer will then reimburse the cost of those goods.
Those funds are then used to reimburse the funds originally made available for the request of goods/services.
INSTALLATION
$$$$$$$
REIMBURSING
ACTIVITY
$$$$$
PROVIDE GOODS/SERVICES

13. Funded Reimbursement Authority
Specific dollar amount received on the RDD
For specific non-mission activities
Quarterly amount not immediately available for obligation upon receipt of the allotment (placed in a reserve account)
Controlled/Ceiling set by ACOM
Show Slide #13: Funded Reimbursement Authority
Facilitator’s Note: Facilitator read and facilitate discussion.
Funded Reimbursement Authority:
Definition.
FRA is used to finance the operation of non-mission functions.
Funded reimbursable orders cover work and services for which costs incurred relate directly to the incoming order.
FRA has a similar revolving reimbursement flow as ARA, except that the funds are funded up front into a reserve account, rather than funds becoming available upon orders.
FRA is:
Specific dollar amount received on the RDD.
For non-mission, but essential needs.
Not immediately available because a buyer/seller relationship must exist.
Controlled by ACOM.

14. LSA 2 Check on Learning (Four Corners Questions)
Determine which statement applies to the following funding authorities.
Direct Obligation Authority
Automatic Reimbursement Authority
Funded Reimbursement Authority
Q1. Quarterly amount immediately available for obligation.
Q2. Funds only become available upon receipt of orders.
Q3. Funds are placed in a reserve account and are not immediately available.
Q4. Funding authority controlled by the ACOM.
Q5. Funding authority with a specific dollar amount for mission activities.
Show Slide #14: LSA 2 Check on Learning (Four Corners Questions)
Facilitator’s Note: This exercise is designed to be an interactive COL with multiple choice.
Note: Animated slide, click enter to reveal answers.
Begin by having the learners standing up and identify four areas as “A”, “B”, “C”, and “D”.
Read off the question and give learners time to pick the area that they think is the correct answer.
Afterwards, poll the learners and ask them why they chose their particular corner/answer to ensure leaners have an understanding of the material up to this point.
Click Enter to reveal the answers.
Below are some sample questions, but may be substituted with other questions.
Facilitator’s Note: For the following statements, ask learners to determine if it applies to;
- Direct Obligation Authority, (B) - Automatic Reimbursement Authority, (C) - Funded Reimbursement Authority, (D) - None of the Above
Q1. Quarterly amount immediately available for obligation.
Q2. Funds only become available upon receipt of orders.
Q3. Funds are placed in a reserve account and are not immediately available.
Q4. Funding authority controlled by the ACOM.
Q5. Funding authority with a specific dollar amount for mission activities.

15. LSA #2 Summary
During this part of the lesson, we learned about the three different funding authorities. Staring with Direct Obligation Authority, which is authority to spend direct funds or mission money. Automatic Reimbursement Authority transactions, which result when an installation performs support to individuals, activities, or other installations. Ending with the Funded Reimbursement Authority, which is used to finance the operation of non-mission functions.
Show Slide #15: LSA #2 Summary
Facilitator's Note: During this part of the lesson, we learned about the three different funding authorities. Staring with Direct Obligation Authority, which is authority to spend direct funds or mission money. Automatic Reimbursement Authority transactions, which result when an installation performs support to individuals, activities, or other installations. Ending with the Funded Reimbursement Authority, which is used to finance the operation of non-mission functions.

16. Reimbursement Stages 4 Stages of reimbursable accounting:
Authority received (A/R)
Orders received (O/R)
Earned reimbursement (E/R)
Collection
Show Slide #16: Reimbursement Stages
3. Learning Step Activity #3. Identify the reimbursement stages.
Method of Instruction: DSL – Discussion (Small or Large Group)
Facilitator to Learner Ratio: 1:16
Time of Instruction: 01 hrs. / 30 mins.
Media: Power Point Presentation
Facilitator’s Note: Facilitator read and facilitate discussion transitioning to LSA 3 identifying the four stages of reimbursable accounting and funding authorities.
Note: Animated slide, click enter to reveal the four stages individually.
Reimbursement stages:
The four stages of the reimbursement process are;
Authority received
Orders received
Earned reimbursement
Collection

17. Authority Received (AR)
Funded Reimbursement Authority
- Specific dollar amount.
- Placed in “Reserve for Receipt of Orders” account.
Automatic Reimbursement Authority
- No specific dollar amount.
- Dollar ceiling established by DRM.
Show Slide #17: Authority Received (AR)
Facilitator’s Note: Facilitate discussion on areas below using the slide.
Authority Received:
Two types of authority received for the reimbursement process;
Funded Reimbursement Authority (FRA).
Automatic Reimbursement Authority (ARA).
Note: Inform learners that the DOA authority does not have a reimbursement process; it is only used for disbursement of mission activities.
Funded Reimbursement Authority
Specific dollar amount.
Placed in “Reserve for Receipt of Orders” account.
Automatic Reimbursement Authority
No specific dollar amount.
Dollar ceiling established by DRM.

18. Orders Received (OR)
Firm (contractual) agreement between Buyer (Ordering Activity) and Seller (Performing Activity)
Performing activity increases unobligated balance of available funds upon acceptance
Performer decreases the reserve for receipt of orders account for FRA ONLY
-specific dollar amount
-placed in a “Reserve for Receipt of Orders” account
Show Slide #18: Orders Received (OR)
Facilitator’s Note: Facilitator read and facilitate discussion.
Orders Received:
Orders Received (OR).
Even though we have authority to engage the reimbursement program, a buyer/seller relationship must exist before reimbursable order procedures may be used.
The O/R represents a contractual agreement between a buyer (ordering activity) and a seller (performing activity).
These transactions result in an obligation to the ordering activity and an increase in available funds to the performing activity.
Acceptance of the DD Form 448, Military Interdepartmental Purchase Request (MIPR) constitutes an order received.
The performing activity will then prepare a DD Form 448-2, Acceptance of MIPR.
Orders accepted in excess of funded reimbursement authority (FRA) must be financed by direct funds.

19. Earned Reimbursement (ER)
Performer earns reimbursement for costs incurred to complete customer’s order
Performer establishes an Accounts Receivable
(by customer number) as a basis for billing the ordering activity
May require an adjustment to the accounts receivable: O/R = E/R
- cost fluctuation from estimate
- quantity fluctuation from estimate
Show Slide #19: Earned Reimbursement (ER)
Facilitator’s Note: Facilitator read and facilitate discussion.
Earned Reimbursement:
Earned reimbursements do not always correspond to the amount of requests or orders received.
They cannot exceed the value of the order and/or the FRA without approval, or unless the customer made a required prepayment.
If there is a difference, adjustments may be required to the actual dollar amount of the reimbursement earned.
Fluctuations are caused by either cost fluctuations or quantity fluctuations, varying from the estimate.
Earned reimbursement is the reimbursement earned for completing the activity or service for the buyer.
The E/R is the basis for how much to bill the ordering activity (buyer).
The seller (performer) records an Accounts Receivable (AR).
When the support has been completed, the O/R must equal the E/R.

20. Collection
Ordering activity reimburses the performing activity for goods and services.
Performer liquidates the accounts receivable.
Show Slide #20: Collection
Facilitator’s Note: Facilitator read and facilitate discussion.
Collection:
Reimbursable collections occur when customers pay their bills.
Ordering activity reimburses the performing activity for goods and services.
This liquidates the account receivable of the performer (supplier).
Performer liquidates the accounts receivable

21. Key Reimbursable Activity Balances
FRA
O/R
E/R
COLL
Show Slide #21: Key Reimbursable Activity Balances
Facilitator’s Note: Facilitator navigate the learners through the steps and facilitate discussion. First by drawing on the board FRA - O/R = AO
Reimbursable Activity Balances:
Anticipated Orders. 
Inform learners that this balance represents the value of orders expected during the balance of the fiscal year.
Facilitator’s Note: Draw on the board O/R - E/R = UO
 Unfilled Orders.
Inform learners that this reimbursable activity balance is the difference between the orders received; less reimbursement earned, and should represent the ordered services that have not been performed, or ordered goods that have not been delivered.
Facilitator’s Note: Draw on the board: E/R - COLL = AR
Accounts Receivable.
Inform learners that this reimbursable activity balance is the difference between reimbursements earned and related collections (excluding unearned revenue collections, prepayments) and should represent the earned portion of the order (billed to the customer) not yet paid for.
Unearned Revenue.
This reimbursable activity balance is the cumulative effect of all advance and/or progress payments (before the reimbursement has been earned or recorded in accounting records) made by the customer.
Facilitator’s Note: Continue the discussion on how to anticipate orders, unfilled orders, and accounts receivables.
UNFILLED
ORDERS (UO) OR
UNEARNED REVENUE (UR)
ACCOUNTS
RECEIVABLE (AR)
ANTICIPATED
ORDERS (AO)

22. Recording Reimbursements
SF 1080 and SF 1081
Both are used to process payments and collections between agencies
The form used, depends on the payment type and if the funds are within the same agency
Show Slide #22: Recording Reimbursements
Recording Reimbursements:
Standard Form (SF)1081:
Voucher is used in a manual process to generate interagency payments and collections for agencies of the US Federal Government; for example, DoD sends a check to the Department of Homeland Security for goods and services.
Standard Form (SF)1080:
Is used in a manual process to generate intra-agency payments and collections for a US Federal Government agency – that is, payments and collections between different funds in the same agency.
For example, within Department XYZ, there may be cash transfers between Fund A and Fund B. (I.e transfer of funds within GFEBS from one fund account to another).
Note: Below link takes you to the SF1081/80 Confirmation site, which explains the Use, Prerequisites, Procedures, and Result for such forms.

23. Analysis of the Reimbursement Program
LOOK FOR:
O/R in excess of Authority
E/R in excess of O/R
E/R less than Disbursements
O/R with little activity
Late deliveries
Missed start days
Customers’ failure to pay
Show Slide #23: Analysis of the Reimbursement Program
Analysis of the Reimbursement Program:
Accountants should review customer orders twice each year and include the analysis of both the execution and reimbursement status of the order;
Analyze the timeliness of transaction events and identify abnormal conditions;
Ensure customer order files include a copy of the order (DD Form 448),
Order acceptance (DD Form 448-2), and funding documents if applicable; verify that funded orders received are less than FRA provided in the RDD;
Review the unobligated and unliquidated balances in accordance with DFAS-IN Regulation 37-1, Chapter 28; and review earnings to verify that all costs incurred have been billed to the customer.
Specific areas for review, analysis, and reconciliation are:
Orders in excess of authority received may indicate the possibility of direct funds being used in support of the reimbursable mission.
An Anti-Deficiency Act violation may exist.
If this condition exists at fiscal year-end, the installation will have lost the use of direct funds in the amount of the excess of orders over authority.
Earnings in excess of orders received indicate errors were made in determining or recording reimbursements earned.
If no error has occurred, there is the possibility that direct funds were used to support a reimbursable mission and order adjustment or collections are needed.
Earnings less than disbursements indicate an error in determining or recording reimbursements earned.
Orders received with little or no activity in the way of reimbursable obligations, accruals, and/or earnings may indicate that orders are of questionable validity.
As a minimum requirement, evidence must exist of the recipient's intent and capability to begin the work within 90 days and complete the order within the projected period, otherwise the order cannot be accepted.
This condition could also suggest that an activity is unable to provide the goods or services requested.
Other possibilities generated by orders received with little or no activity could be that the customer has funds reserved for no purpose, evidence of performance has not been provided to accounting, or accounting errors have been made in recording reimbursement transactions.
Late deliveries.
This may be done after the appropriations period of availability for obligation has passed.
The ordered material or service may be procured elsewhere, if a need still exists, using the unobligated balance in the original appropriation.
Upon default or failure to perform work or deliver items, the recipients of orders are then considered to be default contractors.
Missed start dates.
Where a project order start is delayed beyond 90 days, the performing activity must obtain approval of the delay from the ordering activity.
This notice is given so that the project order can be amended and obligations adjusted.
For cost-reimbursement project orders, the performing activity notifies the ordering activity promptly upon learning of any significant change in costs.
The ordering activity may cancel the order and procure the material or services from another source.
The performer must absorb minor differences.
Negotiation and adjustment should be finished before costs exceed 75% of the obligated project order amount.
When estimated ceiling amounts show a need for adjustment, the ordering and performing activities should negotiate.
Customers' failure to pay.
Open accounts receivables over 30 days old may indicate self-reimbursement procedures are not being used, customer does not agree with the billing information, customer's accounting office is not performing properly, or a need to restrict/terminate future activity exists.
Accounting should monitor all accounts receivable with the following actions:
Follow-up any accounts receivables older than 30 days after the billing date, and identify customers who do not pay their bills on time to the performing activity commander.
After 60 days, send a follow-up letter to the billed activity requesting the date the bill was certified, with the voucher number assigned to it, the Operating Location (OPLOC) that processed it, and the TFO transmittal number on which the corresponding collection was reported.
Provide an information copy to the ACOMs of both the billing and billed activities.
If no response (or collection) is received within 30 days of the date of the letter, send another letter to the activities' ACOMs.
This letter should be signed at a level not lower than the installation comptroller or DRM, and, if warranted include a statement that reimbursable support to that activity will be discontinued if proof of payment is not received within 30 days.
Send another information copy to your ACOM.
Accountants should perform reimbursable activity execution reviews regularly throughout the fiscal year.
When orders are adjusted to reimbursable earnings only at fiscal year-end, activities may not be able to optimize fund availability.
To ensure that excess funds are not remaining at fiscal year-end, activities will review unexecuted balances of reimbursable orders as of 30 June, 31 July, and 31 August, and promptly return excess funds to the ordering activities.

24. LSA #3 Check on Learning True of False
Q1: One of the two types of authority received for the reimbursement process is the RAR.
Q2: Acceptance of the DD Form 448, Military Interdepartmental Purchase Request (MIPR) constitutes an order received.
Show Slide #24: LSA #3 Check on Learning
Facilitator’s Note: Ask the following questions and facilitate discussion on answers given.
Note: Animated slide, click enter to reveal answers.
True or False:
Q1: One of the two types of authority received for the reimbursement process is the RAR.
Q2: Acceptance of the DD Form 448, Military Interdepartmental Purchase Request (MIPR) constitutes an order received.

25. LSA #3 Summary
During the final part of this lesson, we learned to identify the four reimbursement stages and funding authorities’ effects. We covered the two types of authority received for the reimbursement process. We went over information dealing with orders received, earned reimbursement and collection. Finishing with recording reimbursements and the analysis of the reimbursement program.
Show Slide #25: LSA #3 Summary
Facilitator's Note: During the final part of this lesson, we learned to identify the four reimbursement stages and funding authorities’ effects. We covered the two types of authority received for the reimbursement process. We went over information dealing with orders received, earned reimbursement and collection. Finishing with recording reimbursements and the analysis of the reimbursement program.

26. Analyze Reimbursement Concepts PE
Show Slide #26: Analyze Reimbursement Concepts PE
Practical Exercise: ALC 36B Analyze Reimbursement Concepts PE
Facilitator to Learner Ratio: 1:16
Method of Instruction: Practical Exercise
Media: Printed Reference Materials, Handouts
Time of Instruction: 01 hrs. / 00 min.
Special Instructions: Ensure Learners have access to PE for ALC 36B Analyze Reimbursement Concepts and all related material to complete the exercise.
Objectives: Have learner’s complete Advanced Leaders Course 36B PE Version 1.0 practical exercises in groups. Address any questions or areas of concern until learners can successfully complete the exercise that measure each learner’s ability to comprehend the purpose, functions, and composition of Analyze Reimbursement Concepts.
Facilitator’s Material: Each primary facilitator should possess a lesson plan, slide deck, course handouts, lesson created notes, and practical exercise with answer key.
Learner’s Material: Learners should possess course handouts, practical exercises titled ABD6B306 Reimbursement Concepts PE, advance sheet handout and standard classroom supplies. 
Materials Needed:
ABD6B306 Reimbursement Concepts PE
*Blank Paper
*Pen Or Pencil
ALC Analyze Reimbursement Concepts Advance Sheet Vers A
Note: (* Learner responsibility)
Procedures/Instructions:
Do not write in this practical exercise booklet.
This is a group activity where communication with other learners is required.
You will complete this PE immediately following LSA #3; identify the reimbursement stages and funding authorities effects.
All situations have one correct answer.
Read each question carefully and circle or write the best correct answer.
Be prepared to go over the answers with discussions pertaining to each answer given.
You will have 30 minutes (00 hrs. / 30 min.) for completion of the PE, with an additional 20 minutes for the review to follow.
General Information: This practical exercise (PE) is designed to test your understanding of the purpose, functions, and composition of analyzing the reimbursement concepts. This is a multiple choice and true/false exercise. You will have time to complete this practical exercise, followed by a review at the completion.
Instructional Lead-in: You are to complete PE by answering the multiple choice and true/false exercise as a group. Answer the questions to determine your knowledge and ability to analyze reimbursement concepts. You will have 30 minutes to complete this group practical exercise.
Feedback: An AAR will be conducted after the PE; along with a learners end of course critique will be conducted at the end of the course.
Facilitator’s Note: If you experience difficulties, ask the Facilitator’s or assistant Facilitator’s for immediate assistance or help.
Requirements:
Learners will have 30 minutes to complete the PEs.
Groups will need to answer all questions and prepared to be called on to give their explanations to the class.
Complete this practical exercise to the best of your ability.
Motivator:
Once again, we go back to the concrete experience / motivator discussion held at the beginning of the lesson, which led us to have a discussion on relating to different funding authorities. Let us continue to keep in mind as you are conducting the PE the discussions we had on Analyze Reimbursement Concepts and the two questions given.
Which funding authority does this scenario most closely resemble and why?
What are the three types of funding authorities?
Evaluation: To obtain a "Go" in this PE, you must:
Solutions for PE Analyze Reimbursement Concepts
Practical Exercise Answer Key:
D. RDD
B. False
C. Reimbursement Program
B. True
B. Economies of Scale
A. Orders Received
B. ACOM
D. Direct obligation authority
C. Reimbursement Stages
C. Collections
B. There must be a buyer/seller relationship existing first
D. DFAS-IN Regulation 37-1; Chapter 28
C. Authority received stage
A. Funded Reimbursement Authority
B. Automatic Reimbursement Authority
C. Funded Reimbursement Authority
D. Acceptance of the MIPR, DD 448
B. FRA – OR = AO
D. 90 days

27. TLO Check on Learning Agenda / Dots
Show Slide #27: TLO Check on Learning / Agenda Dots
Note: Animated slide, click enter to proceed with the “Top Two Check On Learning” scenario.
Facilitator's Note: Go through the topics listed by the learners earlier in the lesson for the Agenda Dots exercise. Poll learners and ask them what they have learned about that particular topic during the lesson. Any topic that was not listed by the learners, but the facilitator feels is important for the learners to know, may also be covered.
“Or”
Facilitator's Note: Have the learners break up into pairs. Have each pair discuss the top two things that they learned today or the top two things that they still have questions about; should take several minutes. You may choose to have each pair break up and switch partners if needed. Afterwards, have each pair share with the class the top two things they learned in this lesson and two things that they still have questions about. You may choose to poll the classroom to see if another group/ are able to answer the question(s). Once all of the groups have finished, you may also talk about any topics not covered by the learners.
Agenda / Dots

28. TLO Summary Action: Analyze Reimbursement Concepts
Conditions: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy learners must show proficiency with:2828
Identify the purpose of reimbursement programs.
Determine the different funding authorities.
Identify the reimbursement stages.
Show Slide #28: TLO Summary
Action: Analyze Reimbursement Concepts
Conditions: FM Leaders in a classroom environment working individually and as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion.
Standard: With at least 80% accuracy learners must show proficiency with:
Identify the purpose of reimbursement programs.
Determine the different funding authorities.
Identify the reimbursement stages.
“Or”
Facilitator’s Notes: During the lesson, we learned about the purpose of the reimbursement program, allowing U.S. Government activities to accept orders for goods or services from other U.S. Government or non-government activities. We learned about the three different funding authorities and the funded reimbursement authority, used to finance the operation of non-mission functions. We learned to identify the four reimbursement stages and funding authorities’ effects. Finishing with recording reimbursements and the analysis of the reimbursement program and conducting a PE.
Facilitator's at this time, have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer.