1. Prepare a Budget U.S. ARMY SOLDIER SUPPORT INSTITUTE
NONCOMMISSIONED OFFICER ACADEMY
Show Slide #1: Prepare a Budget
Title: Prepare a Budget
References:
FM 1-06 Financial Management Operations, 04/15/2014
AR 1-1 Planning, Programming, Budgeting, and Execution System, 01/30/1994
DOD R VOL 3 Department of Defense Financial Management Regulation, Volume 3, Budget Execution - Availability and Use of Budgetary Resources, 05/01/2015
Lesson Created Handout, Facilitator/Learner's Notes and Worksheet Template.
Section I. Administrative Data
Academic Hours/Methods
00 hrs. / 10 mins. ELM – Concrete Experience
05 hrs. / 15 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
00 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. / 10 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 slide before starting the lesson and information on the “Your own budget process versus the Army budget process”. 1

2. Your Own Budget Process (Concrete Experience)
Scenario: You have decided to buy a new car, since your current car has been giving you problems. After deciding on a car to buy, you estimate that you will incur an additional $700/yr in expenses for the insurance and property taxes and will have a $500 monthly car payment; your current car is paid off. You make some calculations on your budget and conclude that it is viable to purchase the new car, but only if you make cuts to discretionary expenses, such as cable.
What is the purpose of a budget?
How is this scenario related to the DA’s budgeting process?
Who has experienced something similar to the scenario?
Show Slide #2: Your Own Budget Process (Concrete Experience)
Facilitator’s Note: Facilitate discussion base on the scenario and questions both on the screen and below.
Ask learners what their thoughts are on the “Budget Process”
Facilitator's Note: (Publish and Process) the critical portion of this part of the ELM process is to force the learners to reflect. Ask a series of thought influencing questions. After exchange of thoughts with learners, read and discuss the following statements. This scenario is designed to help learners relate their own budget and budget process to the DA’s budget and budget processes.
Scenario: You have decided to buy a new car, since your current car has been giving you problems. After deciding on a car to buy, you estimate that you will incur an additional $700/yr in expenses for the insurance and property taxes and will have a $500 monthly car payment; your current car is paid off. You make some calculations on your budget and conclude that it is viable to purchase the new car, but only if you make cuts to discretionary expenses, such as cable.
Facilitator's Note: Break up into groups and take several minutes to discuss the questions in regards to the scenario.
What is the purpose of a budget?
How is this scenario related to the DA’s budgeting process?
Who has experienced something similar to the scenario?
Note: Learners should mention during the discussion the prioritizing of needs to meet budget constraints, both in real life and for the DA.

3. Terminal Learning Objective
Action: Prepare a Budget
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 process of budget development
Identify key personnel in the budgeting process
Identify the six budgeting steps
Show Slide #3: Terminal Learning Objective
Action: Prepare a Budget
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 process of budget development
Identify key personnel in the budgeting process
Identify the six budgeting steps
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): Ask it Basket
Facilitators Note: Have learners write questions or topics in regards to the lesson from their read ahead assignment on a Post It, Index card or a piece of paper to a common area within the classroom. You may allow learners to post questions throughout the lesson. At the end of the lesson, the questions will be reviewed.

4. Problems with Financial Resources
There never seems to be enough.
Many restrictions and directives attached to the use of public funds:
Cannot exceed ceilings, limitations, targets, etc.
Cannot shift funds between programs.
Cannot use an appropriation for other than its stated purpose.
Show Slide #4: Problems with Financial Resources
1. Learning Step Activity #1. Identify the process of budget development
Method of Instruction: DSL – Discussion (Small or Large Group)
Facilitator to Learner Ratio: 1:16
Time of Instruction: 01 hrs. / 00 mins.
Media: PowerPoint Presentation, Handout, Printed Reference Material
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.
#3. Adaptability and initiative
#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: Facilitator read and facilitate discussion base on problems with Financial Resources below and on the slide.
Some Problems with Financial Resources:
When it comes to financial resources there never seems to be enough. Even the funds that we do receive seem to be earmarked for specific uses or have limitations (i.e., ceilings, floors, fences, and targets).
Why do we have to budget? Because there never seems to be enough money. If we received all the money we wanted there would not be a need to budget. That is not likely to happen therefore a budget is needed.
We are also subject to many restrictions on the money that we do receive such as ceilings, limitations, and targets. In addition, we cannot shift money between different programs.

5. Installation Financial Management
Show Slide #5: Installation Financial Management
Facilitator’s Note: Facilitator read and facilitate discussion by asking the following three question dealing with constrained resources and mission requirements.
Constrained Resources / Mission Requirements:
How do you, as a Resource Manager balance your mission requirements against constrained resources?
How do you spread the few dollars you receive over the many known mission requirements for the budget year(s) and determine which requirements you can finance and decide which will go on the unfinanced requirements list (UFRs)?
In addition, what do you do when you receive restricted money?
Note: Restrictions such as floors, ceilings, and fences prevent you from accomplishing the things you might do otherwise.
Constrained Resources
Mission Requirements

6. Budget
A formal, written, detailed statement of resources required and activities planned for the entire command to accomplish its mission.
Show Slide #6: Budget
Facilitator’s Note: Facilitator read and facilitate discussion, referring learners to prepare a Budget Summary Sheet during this part of the lesson.
Budget:
Budget – a formal (written), detailed statement of the activities planned and the resources required for the entire command to accomplish its mission.
An agreement between you and your boss on how much it costs your activity to do its mission for the entire year.
When submitting your budget, remember that your creditability is extremely important.
Don’t jeopardize it over a budget.
If you submit an inflated budget, you may lose your creditability.

7. Ways of Looking at a Budget
Series of goals with price tags.
Plan of work for the budget year(s).
Instrument for insuring efficiency comparing plan work with actual execution data.
Contract with the boss - i.e., “This is what I will accomplish with allocated resources.”
Expectation - the budget is only an estimate of resources allotted to the activity.
Precedent - use historical data to develop the budget estimate, figuring in inflation.
Show Slide #7: Ways of Looking at a Budget
Facilitator’s Note: Facilitator read and facilitate discussion.
Note: Animated slide, click enter to reveal answers one at a time for discussion.
Ways to Perceive a Budget:
Series of goals with price tags.
Plan of work for the budget year(s).
Instrument for insuring efficiency comparing plan work with actual execution data.
Contract with the boss – i.e., “This is what I will accomplish with allocated resources.”
Expectation – the budget is only an estimate of resources allotted to the activity.
Precedent – use historical data to develop the budget estimate, figuring in inflation.

8. Developing the Installation Command Budget Estimate (CBE)
HQDA
ACOM
PBG
INSTALLATION CBE
ACOM
CDR
BMG
PBAC
Show Slide #8: Developing the Installation Command Budget Estimate (CBE)
Facilitator’s Note: Facilitator navigate the learners through the steps and facilitate discussion.
Note: Method of instruction and facilitator to learner ratio will vary, depending on whether the lesson is taught in residence, by a facilitator, or used as an individual learner self-paced product.
Command Budget Estimate (CBE):
The following is the process of developing the installation command budget estimate.
It starts at HQDA, which sends Program Budget Guidance (PBG) to the ACOM level.
ACOM sends Budget Manpower Guidance (BMG) to the installation.
On the installation, the Director of Resource Management (DRM) subdivides the guidance to the Major Activity level (via an RDD).
The DRM holds a “Junior” Program Budget Advisory Committee (PBAC) to discuss/refine the budget guidance.
The Director of Resource Management (DRM) briefs the installation commander on the recommended budget guidance; the commander refines/signs the budget guidance.
DRM sends installation budget guidance to Major Activity Directors (MADs) which send specific guidance to the activity levels.
Activities prepare budgets and forward to the MADs.
MADs refine, change, and consolidate the activities budgets and forward the products to the DRM.
DRM refines, makes changes, and consolidates MAD’s budgets into an installation CBE.
“Senior” PBAC refines and makes changes on the installation CBE.
DRM briefs the recommended installation CBE to the commander.
DRM
MADs
ACTIVITIES
MADs
DRM
MADs
DRM
PBAC
CDR

9. Financial Management Levels
FSD
LIBRARY
PHYSICAL ACTIVITIES
CRD
DPCA
DPTM
DPW
TMP
HHG
TRANS DIV
SUPPLY
DOL
CDR
MAD
Show Slide #9: Financial Management Levels
Facilitator’s Note: Facilitator navigate the learners through the steps and facilitate discussion.
Levels / MAD / Activity / Sub-Activity
There are four financial management levels on an installation:
(1) Commander – final decision maker on the installation.
(2) Major activity-level supervises a group of activities for the installation (middle management).
(3) Activity level – supervises a specific mission for the installation.
(4) Sub-activity level – supervises part of a mission.
ACTIVITY
SUB ACTIVITY

10. LSA #1 Check on Learning True or False
Q1: Budget is an agreement between you and your boss on how much it costs your activity to do its mission for the entire year.
A1: True
Q2: Instrument for insuring efficiency comparing plan work with actual execution data is a way to perceive a budget.
A2: True
Show Slide #10: LSA #1 Check on Learning
Facilitator’s Note: Ask the following question and facilitate discussion on answer given.
Note: Animated slide, click enter to reveal answers.
True or False:
Q1: Budget is an agreement between you and your boss on how much it costs your activity to do its mission for the entire year.
A1: True
Q2: Instrument for insuring efficiency comparing plan work with actual execution data is a way to perceive a budget.
A2: True

11. LSA #1 Summary
During the first part of the lesson dealing with preparing a budget, we had discussions on being able to write and process a detailed budget statement of resources required, and activities planned for the command.
Show Slide #11: LSA #1 Summary
Facilitator's Note: During the first part of the lesson dealing with preparing a budget, we had discussions on being able to write and process a detailed budget statement of resources required, and activities planned for the command.

12. Activity Chief Limited scope/responsibility.
One program/BASOPS account.
No budget expert.
Show Slide #12: Activity Chief
2. Learning Step Activity #2. Identify key personnel in the budgeting process
Method of Instruction: DSL – Discussion (Small or Large Group)
Facilitator to Learner Ratio: 1:16
Time of Instruction: 00 hrs. / 45 mins.
Media: Power Point Presentation, Handout, Printed Reference Material
Facilitator’s Note: Facilitator read and facilitate discussion with learners on Activity, Activity Chief, Major Activity and Major Activity Director.
Activity Chief:
Activity – A unit, group, or work center that is subordinate to a major activity and that represents the lowest level at which significant decisions over the employment of resources takes place.
Activity Chief - the responsible official who supervises the development and execution of an activity segment of the installation’s operating budget as well as the review and analysis thereof. This person is responsible for the efficient and effective use of the resources under his/her control.
Limited Scope / Responsibility.
Normally has one program/BASOPS account.
No budget/resource management expert at this level. Budgeting is normally an additional duty for someone on the staff. As a Resource Manager, you need to realize that the activity’s numbers may be suspect.

13. Major Activity Director (MAD)
Broader scope/responsibilities.
Generally more than one program or BASOPS account.
DRM provides assistance through budget analyst.
Competing for resources with other diverse missions.
Show Slide #13: Major Activity Director (MAD)
Facilitator’s Note: Facilitator read and facilitate discussion using the slide.
Major Activity Director (MAD):
Major Activity – Two or more units, groups, or work centers that are functionally related.
Major Activity Director (MAD, also known as the Program Director) - the responsible official who supervises the development and execution of a major functional segment of the installation’s CBE.
The MAD has responsibility over two or more functionally-related activities/activity chiefs and is responsible for the efficient and effective use of all resources under his/her control.
In addition, a MAD serves as a voting member of the installation’s Senior Program and Budget Advisory Committee (PBAC).
The MADs:
Have a broader scope and more responsibilities.
Are generally in charge of more than one program or BASOPS account.
The DRM office provides budget analysts to assist the MADs during the budget consolidation process.
Budget analysts and budget offices were assigned to the MADs until 1991 when they consolidated under the DRM.
There is one exception.
The Directorate of Public Works (DPW) still has a budget office in most cases.
Compete for resources with other directorates with diverse missions. The MAD is not the only one asking you for limited resources.

14. DPCA Accounts AMS CODE ACTIVITY 208018.33 ADMINISTRATIVE CENTER
INSTITUTE FOR ADMINISTRATION
HQDA INTERN TRAINING
ACOM AND ACTIVITY EXECUTIVE PGRM
879732
ARMY CONTINUING EDUCATION
951214
PUBLIC AFFAIRS
BASE OPNS: G1
CHAPLAIN ACTIVITIES
Show Slide #14: DPCA Accounts
Facilitator’s Note: Facilitate discussion on areas below using the slide.
Note: This slide depicts some programs that fall under the Directorate of Personnel and Community Activity.
DPCA Accounts:
AMS CODE ACTIVITY
ADMINISTRATIVE CENTER
INSTITUTE FOR ADMINISTRATION
HQDA INTERN TRAINING
ACOM AND ACTIVITY EXECUTIVE PGRM
ARMY CONTINUING EDUCATION
PUBLIC AFFAIRS
BASE OPNS:
G1 CHAPLAIN ACTIVITIES
.G2 COMMAND INFORMATION
.G3 ALCOHOL AND DRUG ABUSE
.G9 REENLISTMENT ACTIVITIES
.N1 COMPTROLLER SERVICES/FAO
.N3 INSTALLATION HQ ADMINISTRATION
.N5 PERSONNEL MANAGEMENT
.G2
COMMAND INFORMATION
.G3
ALCOHOL AND DRUG ABUSE
.G9
REENLISTMENT ACTIVITIES
.N1
COMPTROLLER SERVICES/FAO
.N3
INSTALLATION HQ ADMINISTRATION
.N5
PERSONNEL MANAGEMENT

15. LSA #2 Check on Learning True of False
Q1: Activity Chief - the responsible official who supervises the development and execution of an activity segment of the installation’s operating budget
A1: True
Q2: Major Activity Director (MAD, also known as the Program Administrator Chief.
A2: False / known as the Program Director
Show Slide #15: LSA #2 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: Activity Chief - the responsible official who supervises the development and execution of an activity segment of the installation’s operating budget
A1: True.
Q2: Major Activity Director (MAD, also known as the Program Administrator Chief.
A2: False / known as the Program Director

16. LSA #2 Summary
During the second part of the lesson on preparing a budget, we had discussions and identify the Activity Chief responsibility, who supervises the development and execution of an activity segment of an installation operating budget. We identify the Major Activity Director (MAD) responsibility, who supervises the development and execution of major functional segments of the installation’s Combined Budget Estimate (CBE).
Show Slide #16: LSA #2 Summary
Facilitator's Note: During the second part of the lesson on preparing a budget, we had discussions and identify the Activity Chief responsibility, who supervises the development and execution of an activity segment of an installation operating budget. We identify the Major Activity Director (MAD) responsibility, who supervises the development and execution of major functional segments of the installation’s Combined Budget Estimate (CBE).

17. Budgeting Process Receive guidance.
Determine total requirements by Commitment Items (CIs).
Determine financed requirements.
Prioritize unfinanced requirements and develop decrement list.
Phasing.
Prepare supporting schedules.
Show Slide #17: Budgeting Process
3. Learning Step Activity #3. Identify the six budgeting steps.
Method of Instruction: DSL – Discussion (Small or Large Group)
Facilitator to Learner Ratio: 1:16
Time of Instruction: 03 hrs. / 15 mins.
Media: Power Point Presentation, Handouts, Printed Reference Materials
Facilitator’s Note: Facilitator read and facilitate discussion on the six budgeting steps and its processes.
Budgeting Process:
There are six steps in the budgeting process:
(1) Receive guidance.
(2) Determine total requirements by Commitment Items (CIs)
(3) Determine financed requirements.
(4) Prioritize un-financed requirements and develop decrement list.
(5) Phasing.
(6) Prepare supporting schedules.

18. Step 1: Receive Guidance
Dollar Guidance.
Manpower Guidance.
Workload Guidance.
Administrative Guidance.
Show Slide #18: Step 1: Receive Guidance
Facilitator’s Note: Facilitator read and facilitate discussion using the slide.
Receive Guidance:
Steps taken by the Activity Chief in formulating the budget.
Step 1 – Receiving Guidance.
DA publishes Program Budget Guidance (PBG) to the ACOMs. The ACOMs send Budget Manpower Guidance (BMG) to their installation(s).
Then each installation’s DRM sends installation guidance (via a resource distribution document, RDD) to major activities.
The major activities send guidance to the activities.
Contains four types of guidance:
Dollar Guidance.
Manpower Guidance.
Workload Guidance.
Administrative Guidance.

19. Dollar Guidance
Tentative dollar amount the installation can expect to receive.
Must budget within this dollar amount.
Consider funding limitations.
Specific purpose.
Floors.
Fences.
Show Slide #19: Dollar Guidance
Facilitator’s Note: Facilitator read and facilitate discussion using the slide.
Dollar Guidance:
This is a tentative dollar ceiling which the installation may expect to receive for the following fiscal year.
The installation may not budget for more than the dollar guidance.
Also considered are the internal funding limitations for specific purposes (e.g., floors, fences) earmarked within these dollars.

20. Manpower Guidance
Limitations on number, grade, and type of personnel authorized.
Military labor expense is not budgeted by the installation.
Show Slide #20: Manpower Guidance
Facilitator’s Note: Facilitator read and facilitate discussion using the slide.
Manpower Guidance:
This guidance provides for limitations on number, grade, and type of personnel authorized.
The military personnel labor expense is not budgeted by the installation;
Department of the Army budgets for military labor because they manage these dollars.

21. Workload Guidance
Estimate of the amount of work performance expected by the installation, major activities, and activities.
Show Slide #21: Workload Guidance
Facilitator’s Note: Facilitator read and facilitate discussion using the slide.
Workload Guidance:
This guidance provides an estimate of the amount of work performance required of an installation for the budget year in order to accomplish its mission.
It may be in the form of how many learners you teach in the next fiscal year.
Another example is how many Bradley Fighting Vehicles you overhaul in your Armor Division motor pool.

22. Administrative Guidance
Budget format.
Rounding instructions.
Special schedule preparations.
Show Slide #22: Administrative Guidance
Facilitator’s Note: Facilitator read and facilitate discussion using the slide.
Administrative Guidance:
This guidance describes the budget format, rounding instructions, special schedule preparations, and other administrative guidance.
Budget format.
Rounding instructions.
Special schedule preparations.

23. Step 2: Determine Total Requirements by CIs
Commitment Item (CI):
A code for classifying the type of services, goods, or other items being procured or consumed according to its nature rather than its purpose.
Show Slide #23: Step 2: Determine Total Requirements by CIs
Facilitator’s Note: Facilitator read and facilitate discussion transitioning to step two.
Determine Total Requirements by Cis:
The Activity Chief receives his/her share of the installation’s BMG from the MAD and uses it to initiate budget formulation by determining the activity’s total estimated dollar requirements by Commitment Items (CIs).
Of the many CIs, the following provide a representative sampling of the costs usually incurred within installation activities and the basis for determining those costs:
Civilian Labor (1100) - Review workload and determine civilian personnel requirements to accomplish workload. Use the salary table for the actual grade and step for each employee, or estimate the cost based on average salary.
Related Civilian Personnel Benefits (1200) - Includes government contributions to retirement, insurance, etc. The computation is by multiplying the total for CI1100 by a given percentage in the guidance distributed.
For example - $220,000 x 15% = $33,000.
TDY and Travel of Personnel (2100) - A schedule of trips to include place(s) to be visited, length and purpose of visit, mode of transportation and per diem rate or total estimated cost per individual trip.
Contractual Services (2500) - A schedule of itemized contracts currently in effect and updated to reflect deletions of contracts not expected to be renewed, and additions of anticipated new contractual requirements. Computation for CI 2500 is based on historical data plus known changes.
Supplies and Materials (2600) - A list of supplies needed by the section chief or sub-activities priced out and compared with historical supply records. Computation for CI 2600 is based on workload, seasonal requirements, historical data plus projected changes (i.e. inflation).
Non-consumable Supplies, Equipment (3100) - An equipment replacement schedule indicating the original issue date and the expected life of the individual items. Computation for CI 3100 is based on required replacement of equipment and new equipment.

24. Sample Commitment Items
1100 Personnel Compensation
1200 Personnel Benefits
2100 Travel & Transportation of Persons
2200 Transportation of Things
2300 Rent, Communications, Utilities
2400 Printing & Reproduction
2500 Contractual Services
2600 Supplies & Materials
3100 Supplies & Materials- Equipment
4300 Interest & Dividends
Show Slide #24: Sample Commitment Items
Facilitator’s Note: Facilitate discussion on areas below using the slide.
Sample Commitment Items:
Facilitator’s Note: Inform learners that these are just some examples of the most common CIs.
1100 Personnel Compensation
1200 Personnel Benefits
2100 Travel & Transportation of Persons
2200 Transportation of Things
2300 Rent, Communications, Utilities
2400 Printing & Reproduction
2500 Contractual Services
2600 Supplies & Materials
3100 Supplies & Materials- Equipment
4300 Interest & Dividends

25. Two Methods to Determine CI 1100, Personnel Compensation
Salary table.
Average.
Show Slide #25: Two Methods to Determine CI 1100, Personnel Compensation
Facilitator’s Note: Facilitate discussion on areas below using the slide.
Personnel Compensation / Salary Table / Average:
Personnel Roster and Average. Civilian Labor (1100) – Review workload and determine civilian personnel requirements to accomplish workload.
Use the salary table for the actual grade and step for each employee or estimate cost based on average salary.
The salary table method is the most accurate and the most time consuming.
The average method is not as accurate but it takes less time.
Facilitator’s Note: Inform learners that an example of each method is on the next two slides.

26. Salary Table TDA JOB HR ANN LINE/PARA TITLE SERIES GRADE STEP RATE
P&B DIV
010A 01
BUD OFF
GS560 12 6
010A 02
BUD ANA 11 1
010A 03
BUD TEC 07 2
010B 00
FORCE M
010B 01
MGT ANA
GS343 3
010B 02
SUPV
010B 03
MPR DEV
75Z E7
010B 04
TOE INST
71L E6
010B 05
Show Slide #26: Salary Table
Facilitator’s Note: Facilitator navigate the learners through the steps and facilitate discussion.
Salary Table:
For the salary table method, look up each person’s salary and then total the costs.
Once you have done this you need to factor in any pay increases for the budget year.
This is provided to you.
TDA JOB TITLE SERIES GRADE STEP HR RATE ANN RATE
LINE/PARA
010A 00 P&B DIV
010A 01 BUD OFF GS
010A 02 BUD ANA GS
010A 03 BUD TEC GS
010B 00 FORCE M
010B 01 MGT ANA GS
010B 02 SUPV GS
010B 03 MPR DEV 75Z E7
010B 04 TOE INST 71L E6
010B 05 MGT ANA GS

27. Average Method Current year CI costs: $240,000
Divided by the number of employees 12
Equals average cost per employee
$ 20,000
Budget year cost estimate for CI 1100:
11 Employees times average cost
Equals
$220,000
Estimated base pay cost used for budget
Estimated premium pay would be added
Show Slide #27: Average Method
Facilitator’s Note: Facilitator navigate the learners through the steps and facilitate discussion.
Average Method:
For the average method, you begin with how much you have for civilian labor and divide it by how many people you have on the rolls this year to come up with an average per person.
The average method is not as accurate as the salary table method but quicker.
Current year CI costs: $240,000
Divided by the number of employees 12
Equals average cost per employee $20,000
Budget year cost estimate for CI 1100:
11 Employees times average cost equals $220,000
Estimated base pay cost used for budget
Estimated premium pay would be added

28. Computation of CI 1200, Personnel Benefits
Base pay times (x) a stated percentage.
Example: $220,000 X 15% = $33,000.
Show Slide #28: Computation of CI 1200, Personnel Benefits
Facilitator’s Note: Facilitator read and facilitate discussion using the slide.
Personnel Benefits:
Computation of CI Civilian Personnel Benefits (1200) – Includes government contributions to retirement, insurance, etc.
The computation is done by multiplying the total for CI 1100 by a given percentage in the guidance distributed.
Example:
$220,000 x 15% = $33,000.

29. LSA 3 Check on Learning (Midway) (Four Corners Questions)
The _____ has a broad scope of responsibilities, manage multiple programs, and is a voting member of the Senior Program Budget and Advisory Committee (PBAC).
Activity Chief
Director of Resource Management
Commander
Major Activity Director
Which of the following is/are steps in the budgeting process:
Phasing
Determining financed requirements
Determine total requirements by CIs
All of the above
Which of the four types of guidance is concerned with the number of personnel in the workforce?
Manpower Guidance
Workload Guidance
Administrative Guidance
Dollar Guidance
When determining the estimated amount for Personnel Compensation, which method is the more accurate method?
Salary Table
Mean Method
Average Method
None of the above
Show Slide #29: LSA 3 Check on Learning (Midway) (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 stand up and designate a corner of the room a letter (A, B, C, and D).
Ask the question and the choices.
Give the learners some time to migrate to the corner in which 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 for other question if needed.
The _____ has a broad scope of responsibilities, manage multiple programs, and is a voting member of the Senior Program Budget and Advisory Committee (PBAC).
Activity Chief
Director of Resource Management
Commander
Major Activity Director (Slide 13)
Which of the following is/are steps in the budgeting process:
Phasing
Determining financed requirements
Determine total requirements by CIs
All of the above (Slide 17)
Which of the four types of guidance is concerned with the number of personnel in the workforce?
Manpower Guidance (Slide 20)
Workload Guidance
Administrative Guidance
Dollar Guidance
When determining the estimated amount for Personnel Compensation, which method is the more accurate method?
Salary Table (Slide 25)
Mean Method
Average Method
None of the above

30. Computation of CI 2100, Travel of Persons - TDY
To determine the total costs for CI 2100, determine the cost of each individual TDY trip planned.
For each trip, you need the following information:
Number of personnel traveling.
Place traveling to (per diem rate).
Number of days TDY.
Estimated cost of travel (airfare, POV...).
Show Slide #30: Computation of CI 2100, Travel of Persons - TDY
Facilitator’s Note: Facilitator read and facilitate discussion.
CI 2100:
Computation of CI Travel of Personnel. TDY – A schedule of trips to include place(s) to be visited, length and purpose of visit, mode of transportation and per diem rate or total estimate cost per individual trip.
You need to work with the local travel office to get these numbers.
Find the Per Diem rates online by going to
To determine the total costs for CI 2100, determine the cost of each individual TDY trip planned.
For each trip, you need the following information:
Number of personnel traveling.
Place traveling to (per diem rate).
Number of days TDY.
Estimated cost of travel (airfare, POV...).

31. Computation of Other CIs
Base figures on historical data plus known changes for CIs:
Rent, Utilities, Communication
Printing, Reproduction
Contracts
Supplies and Materials
Equipment
Show Slide #31: Computation of Other CIs
Facilitator’s Note: Facilitator navigate the learners through the steps and facilitate discussion.
Other Cis:
Computation of CI 2300
– Rent, Utilities, and Communication. Use historical data plus known changes (i.e., new phones lines, increase in charges by utility companies, new units in command).
Computation of CI 2400
– Printing and Reproduction. Use historical data plus known changes (i.e., increase in mission workload).
Computation of CI 2500
– Contractual Services – A schedule of itemized contracts currently in effect and updated to reflect deletions of contracts you do not expect to renew and additions of anticipated new contractual requirements. Computation for CI 2500 is based on historical data plus known changes (i.e., new scheduled construction and/or repairs).
Computation of CI 2600
– Supplies and Materials – A list of supplies needed by the Section Chief or sub-activities priced out and compared with historical supply records. Computation for CI 2600 is based on workload, seasonal requirements, historical data plus projected changes (i.e., inflation).
Computation of CI 3100
– Non-consumable supplies and equipment – An equipment replacement schedule indicating the original issue date and the expected life of the individual items. Computation for CI 3100 is based on required replacement of equipment and new equipment.

32. Step 3: Determine the Financed Requirements
First, finance the directed requirements.
Then, prioritize the remaining requirements using the following as guidelines:
-Mission essential requirements.
-The training plan.
-Any new initiatives.
-Less important requirements should be financed last.
Show Slide #32: Step 3: Determine the Financed Requirements
Facilitator’s Note: Facilitator read and facilitate discussion transitioning to step three.
Determine the Financed Requirements:
Step 3 – Determine the Financed Requirements. The Activity Chief determines which of the above CI requirements can be financed within the tentative budget limits by prioritizing requirements.
The highest priorities are financed and the remaining requirements are “un-financed”.
Remember that the activity chief cannot exceed his/her dollar guidance.
A recommendation on how to prioritize requirements is as follows:
Directed Requirements
Statutory requirements are requirements, which must be accomplished in compliance with federal or other laws. The requirements are construed to include Army regulations and should be funded first.
Higher directed requirements are priorities established by the ACOM, the Installation Commander and the MAD.
Mission essential requirements – operational requirements effecting readiness and/or the support base.
New initiatives are examined to determine priority.
Less important requirement that improve the mission but are not essential.

33. When Determining Financed Requirements
Is this subjective?
Who acts as the honest broker?
Show Slide #33: When Determining Financed Requirements
Facilitator’s Note: Facilitator read and facilitate discussion.
DRM:
Is this subjective?
Who acts as the honest broker?
Be an honest broker – maximize the mission.
For example, to balance the budget you should not have more personnel on the payroll than you have supplies and equipment on hand to support.
DRM

34. Step 4: Prioritize Requirements
Unfinanced requirements:
-Establish priorities for the unfinanced
requirements.
- When total requirements exceeds dollar guidance, there are unfinanced requirements (UFRs).
Financed requirements:
- If there is a funding shortfall, go to the decrement list to determine what gets cut.
Show Slide #34: Step 4: Prioritize Requirements
Facilitator’s Note: Facilitator have learners read the slides bullets and facilitate discussion transitioning to step four.
Prioritize Requirements:
Unfinanced requirements:
Establish priorities for the unfinanced requirements.
When total requirements exceeds dollar guidance, there are unfinanced requirements (UFRs).
Financed requirements:
If there is a funding shortfall, go to the decrement list to determine what gets cut.

35. Guidance $$ vs. Total Requirements
Relationship between total requirements, dollar guidance (financed requirements) and unfinanced requirements (UFRs):
Total Requirements
- $$ Guidance (financed requirements)
= UFRs = Funding Shortfall = Less Important Remaining Requirements
Show Slide #35: Guidance $$ vs. Total Requirements
Facilitator’s Note: Facilitator navigate the learners through the steps and facilitate discussion.
Guidance $$$$ vs. Total Requirements
The relationship between total requirements, dollar guidance (financed requirements) and unfinanced requirements (UFRs):
Total Requirements:
$$ Guidance (financed requirements)
= UFRs = Funding Shortfall = Less Important Remaining Requirements.
Note: If you have $100, in requirements and receive $70,000.00, then you have a $30, funding shortfall. This is your UFR list.

36. Unfinanced Requirements (UFR) List
List of those total requirements which remain unfinanced due to the limited amount of dollar guidance.
Unfinanced requirement list is prioritized from most important to least important.
Supported by impact statements.
Show Slide #36: Unfinanced Requirements (UFR) List
Facilitator’s Note: Facilitator read and facilitate discussion.
Unfinanced Requirements (UFRs) List:
The remaining requirements are unfinanced.
The Activity Chief establishes the priority of UFRs and prepares Impact Statements.
UFRs are a lower priority than any item(s) financed within the established dollar guidance.
UFRs Priority List is sequenced from most important to least important.
Impact statements for each UFR show the adverse effect upon the activity’s operation and/or the overall mission of the installation if the item(s) remain unfinanced.
Whenever possible, use quantitative data to show the effect of the UFR on the program.

37. Decrement List
List of financed requirements which will be eliminated if the activity’s funding is reduced.
Decrement lists are prioritized from least important to most important.
Usually a percentage of the total dollar guidance.
Show Slide #37: Decrement List
Facilitator’s Note: Facilitator read and facilitate discussion.
Decrement List:
Decrement List (may also be referred to as Integrated Priorities List (IPL))
A decrement list show those items currently financed which become unfinanced in the event that funds you receive are less than the tentative dollar guidance or if the funding level is later reduced.
Items are listed in the order of elimination: least important to most important.
The size (total dollar amount) of this list is usually a stated percentage of the financed requirements and varies according to local directives.

38. Decrement List and UFR List Relationship
Budget Decrement List
T #1 5th on list (Highest Priority)
O #2 4th on list
T #3 3rd on list
A #4 2nd on list
L #5 1st on list
Funding Line
UFRs List
R #6 1st on list
Q #7 2nd on list
T #8 3rd on list
S #9 4th on list (Lowest Priority)
Show Slide #38: Decrement List and UFR List Relationship
Facilitator’s Note: Facilitator navigate the learners through the steps and facilitate discussion.
The UFR list and the decrement list are interrelated in that both may change if the funding level changes.
The funding line defines the financial boundary between financed and unfinanced requirements.
If funds are increased, the funding line moves down; the highest priority on the unfinanced requirement list is funded up to the revised funding line and added to the top of the decrement list. The lowest priority on the decrement list is then removed from the list up to the increase of funds.
If funds are decreased (decremented), the funding line moves up; the first requirement on the decrement list is adjusted down to the revised funding line. The amount of the decreased requirement is then added up to the top of the UFRs list.
Facilitator’s Note: Inform learners that because of the size (total dollar amount) of this list, it will usually be a stated percentage of the financed requirements, additional financed items are added to the lowest priority of the decrement equal to the decrease of funds.
Example:
If the 1st item on the decrement list (#5) is cut, then #2 is added to the bottom of the decrement list.
Budget Decrement List
T #1 5th on list (Highest Priority)
O #2 4th on list
T #3 3rd on list
A #4 2nd on list
L #5 1st on list
Funding Line
UFRs List
R #6 1st on list
Q #7 2nd on list
T #8 3rd on list
S #9 4th on list (Lowest Priority)

39. Considerations When Developing UFRs and Decrement Lists
Regulatory requirements.
Command directives and special interests.
Major activity directors’ priorities and special interests.
Mission of the installation, major activity, and activity.
Show Slide #39: Considerations When Developing UFRs and Decrement Lists
Facilitator’s Note: Facilitator read and facilitate discussion.
When Developing UFRs and Decrement List:
Things to consider when developing UFRs and Decrement Lists. The minimum consideration in developing UFRs and decrement lists are:
Regulatory requirements.
Command directives/interest.
Major activity director’s priorities.
Mission of the installation, major activity, and activity.

40. Step 5: Phasing
Purpose of phasing: To accurately identify when funds must be available to meet obligations.
Financed requirements:
-Phased into quarterly increments.
-Phased cumulatively.
Show Slide #40: Step 5: Phasing
Facilitator’s Note: Facilitator read and facilitate discussion transitioning to step five.
Phasing:
Phasing – Cost distribution by fiscal quarter is called phasing.
Phasing is required for inclusion in the CBE. Each CI is phased into quarterly increments according to the estimated need for that quarter.
How to phase financed requirements.
Phasing financed requirements are accomplished by a cumulative method. Acceptable methods normally used for quarterly phasing of costs by CI are as follows:

41. Phasing CI 1100 and 1200
Phase based on paid days, i.e., the number of days in each quarter that the civilian employees will be paid (includes holidays and leave).
Show Slide #41: Phasing CI 1100 and 1200
Facilitator’s Note: Facilitator read and facilitate discussion.
CI 1100 and 1200:
Civilian Labor (1100) – phased based on paid days or hours in the quarter.
Paid days or hours are the number of days in each quarter that the civilian employees are paid (includes holidays and leave).

42. Civilians Paid for 260 Days per Year
1ST
2ND
3RD
4TH
QTR
QTR
QTR
QTR
TOTAL
DAYS 65 64 65 66
260
Show Slide #42: Civilians Paid for 260 Days per Year
Facilitator’s Note: Facilitator navigate the learners through the steps and facilitate discussion.
Civilians Paid for 260 Days per Year:
Related Personnel Civilian Benefits (1200) – same as CI 1100.
1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. Total
Days:
% Cum 25% 49.6% 74.6% 100% 100%
65/260 = (25%)
65+64/260 = (49.6%)
% CUM
25%
49.6%
74.6%
100%
100%
65/260=
65+64/260=

43. Phasing CI 2100, TDY
Based on when travel is scheduled to begin according to the information submitted by the activity chief.
Show Slide #43: Phasing CI 2100, TDY
Facilitator’s Note: Facilitator navigate the learners through the steps and facilitate discussion.
Phasing CI 2100, TDY:
TDY and Travel of Personnel (2100)
Based on when travel is scheduled to begin according to the information submitted by the activity chief.
Example:
If a trip is scheduled in October then it is phased in the 1st quarter.
In the second quarter, we have one trip for $200.
How much do we phase?
$750 not $200.
Why?
Because it is cumulative.
TRIP# DATES 1ST QTR 2ND QTR 3RD QTR 4TH QTR TOTAL
QTR TOTAL ,050 5,050
OCT
JAN
APR
AUG 4,000 4,000

44. Phasing CI 2500, Other Contracts
Phase based on the contractual requirements for the payment.
Show Slide #44: Phasing CI 2500, Other Contracts
Facilitator’s Note: Facilitator read and facilitate discussion.
Contractual Services (2500):
Based on the contract requirement. Some examples are:
Yearly contract – phase in the first quarter or the quarter they are entered into.
Service contract where you obligate a specific amount for each service call – phase evenly throughout the year (25%, 50%, 75% and 100%).
General contracts throughout the year – phase in quarter when you project the contract to become a legal contract (signed).

45. Phasing CI 2600, Supplies Can be phased different ways, such as:
-Productive (work) days.
-Workload.
-Calendar days.
Show Slide #45: Phasing CI 2600, Supplies
Facilitator’s Note: Facilitator read and facilitate discussion.
Supplies and Materials (2600):
Are based on different ways such as;
Productive days
Workload
Or calendar days.

46. Productive Days ROUND TO THE NEAREST 10
Show Slide #46: Productive Days
Facilitator’s Note: Facilitator navigate the learners through the steps, facilitate discussion and inform learners to make sure and round to the nearest tenth.
Productive Days:
Are paid days minus leave and holidays per quarter.
Quarter 1ST QTR 2ND QTR 3RD QTR 4TH QTR
222.5 Prod Day
% CUM
$44,000 Rounded to the nearest 10
11,090
21,470
32,650
44,000

47. Workload Historical/ Seasonal Data
Show Slide #47: Workload Historical/ Seasonal Data
Facilitator’s Note: Facilitator navigate the learners through the steps and facilitate discussion as with the previous slide.
Workload Historical/ Seasonal Data:
Workload – based on historical and seasonal data.
Example:
If there is more work projected in the first quarter then phase more supplies to support the workload.
Quarter 1ST QTR 2ND QTR 3RD QTR 4TH QTR
% CUM 30% 45% 80% 100%
$44,000
13,200
19,800
35,200
44,000

48. Phasing CI 3100, Equipment
Phase based on replacement schedules and known requirements for new equipment, using the quarter in which the equipment will be issued or back ordered.
Show Slide #48: Phasing CI 3100, Equipment
Facilitator’s Note: Facilitator read and facilitate discussion using the slide.
Phasing CI 3100:
Non-consumable Supplies (Equipment) (3100)
Based on requirements for initial issue or the equipment replacement schedule.
Phased in the quarter when the equipment will be issued or backdated.
Usually in the first quarter.

49. Step 6: Prepare Supporting Schedules
Activity budget schedule.
UFR lists.
Decrement lists.
Supply requirements schedules.
Schedule of Contracts.
Phasing.
Show Slide #49: Step 6: Prepare Supporting Schedules
Facilitator’s Note: Facilitator read and facilitate discussion transitioning to step six.
Prepare Supporting Schedules:
There are schedules the activity chief should prepare as part of the activity budget to forward to the MAD.
The activity chief completes the following and forwards as indicated:
Activity Budget Schedule is sent to the MAD.
Unfinanced Requirements List is sent to the MAD.
Decrement List is sent to the MAD.
Schedule of Contracts is sent to the MAD.
Supply Requirements schedule is sent to the Material Category Manager.
Phasing is sent to the MAD.

50. Steps in Consolidation of a Major Activity Budget (MAB)
Accuracy - mathematical.
Balance - between CIs.
Completeness - adherence to guidance.
Validity - bonafide need for budget year (BY).
Show Slide #50: Steps in Consolidation of a Major Activity Budget (MAB)
Facilitator’s Note: Facilitator read and facilitate discussion using the slide.
MAB:
The MAD receives and reviews the budgets from the activities for the following:
Accuracy – mathematical
Balance – between Commitment Items (CIs)
Completeness – adherence to guidance.
Validity – bona fide need for budget year (BY).
The MAD then consolidates the Activity Budgets into one budget for the entire Major Activity Directorate.
The MAD may shift funding between the various activities to achieve the desired final budget.
In addition, the MAD may rewrite and reprioritize impact statements, UFRs list, and the decrement list.
However, the MAD cannot transfer funds between appropriations and major programs without requesting for reprogramming.
The general rule is in order to move between activities, the first two numbers (known as subprogram level) must be identical.
Facilitator’s Note: Refer to white board, legally and illegally Shifting Funds Between Activities.
What happens if we don’t budget correctly or compute our needs incorrectly?
We run out of money.
When this happens, we have a couple of ways to fix the problem.
We can ask our higher headquarters for money (which lets them know about our mistake (not good).
We can shift funds between programs to balance recourses and solve our issue in house.
This is called reprogramming.
Facilitator’s Note: Draw on board and leave enough space to write numbers between these.
BA1
BA2
BA3
BA4
When we get our money from Operation and Maintenance Army appropriation, it comes in a combination of these for Budget Activities.
We talked about budget activities in the Fiscal Code block earlier.
If we need to move money from BA1 to BA2, it takes Department of the Army approval and the Secretary of the Army can only move 30 million dollars one time all year.
Once he or she uses this authority, it is gone and we have to ask Congress for approval.
Now, to move money within BA2 or any of the BA’s, it depends at what level we are talking about. If moving money from:
to then this also take DA approval. The first digit of this number represents BA1 and the second digit represent Budget Activity Group (BAG) 1 or 2.
to this account has the first two digits the same both start with 11. Because of this, your Army command can move the money for you.
to this account has the first three digits the same so we can move it at the installation level.
The installation DRM approves this if appropriate.
Please note that when you try to move money, you always try to fix your problems in house so that your higher HQ will not know.
If you have to go higher such as the examples on the board, it’s a last resort.
You had better have a good reason to do it.

51. LSA #3 Check on Learning List and number the Step #'s (
LSA #3 Check on Learning List and number the Step #'s (?) of the budgeting process:
Determine total requirements by Commitment Items (CIs).
Prepare supporting schedules.
Determine financed requirements.
Receive guidance.
Prioritize unfinanced requirements and develop decrement list.
Phasing. 2 6 3
Show Slide #51: LSA #3 Check on Learning
Facilitator’s Note: Ask the following question and facilitate discussion on answer given.
Note: Animated slide, click enter to reveal answers.
List and number the Step #'s (?) of the budgeting process:
Determine total requirements by Commitment Items (CIs). (2)
Prepare supporting schedules. (6)
Determine financed requirements. (3)
Receive guidance. (1)
Prioritize unfinanced requirements and develop decrement list. (4)
Phasing. (5) 1 4 5

52. LSA #3 Summary
During the final part of the lesson on preparing a budget, we went over the six budgeting steps and identified what a budget, and how used at an installation. We identified the functions of an activity chief and major activity director in the formulation of the Command Budget Estimate (CBE). We learned to prepare an activity budget and identify the Major Activity Director’s (MAD’s) decision authority in finalizing the major activity budget.
Show Slide #52: LSA #3 Summary
Facilitator's Note: During the final part of the lesson on preparing a budget, we went over the six budgeting steps and identified what a budget, and how used at an installation. We identified the functions of an activity chief and major activity director in the formulation of the Command Budget Estimate (CBE). We learned to prepare an activity budget and identify the Major Activity Director’s (MAD’s) decision authority in finalizing the major activity budget.

53. Prepare A Budget Estimate PEs
Show Slide #53: Prepare a Budget Estimate PEs
Practical Exercise: ALC Identify Budgeting Procedures PE 1, PE 2, and PE 3
Time of Instruction: 01 hrs. / 00 min.
Facilitator to Learner Ratio: 1:16
Method of Instruction: Practical Exercise
Media: Printed Reference Materials, Handouts
Special Instructions: Ensure Learners have access to PEs for ALC Identify Budgeting Procedures PE1, PE2 and PE3 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 (using MS Excel Worksheet handout).
Facilitator’s Material: Each primary facilitator should possess a lesson plan, slide deck, course handouts, and practical exercise with answer key, MS Excel Works handout and lesson created notes.
Learner’s Material: Learners should possess course handouts, practical exercises titled ALC Identify Budgeting Procedures PE1, PE2 and PE3, MS Excel Works handout and standard classroom supplies. 
Materials Needed:
ALC Prepare a Budget Advance Sheet Vers A
ALC Identify Budgeting Procedures Summary Sheet
ALC Identify Budgeting Procedures Learners Worksheet
*Blank Paper
*Pen Or Pencil
ALC Identify Budgeting Procedures PE1, PE2 and PE3
Note: (* Learner responsibility)
Procedures/Instructions:
All situations have one correct answer.
This is a group activity where communication with other learners is required.
Do not write in this practical exercise booklet.
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 all three parts of the PE, with an additional 20 minutes for the review to follow.
You will complete this PE immediately following LSA #3, Identify the six budgeting steps.
General Information: This practical exercise (PE) is designed to measure your ability as a group to prepare an Activity Level Budget for a Family Support Division, an Alcohol and Drug Abuse Prevention and Control Program Division, and a Community Recreation Division. You will have time to complete all three parts of this practical exercise, followed by a review at the completion.
Instructional Lead-in: You are to complete all three PEs by answering all questions and estimating the correct formulas as a group. Answer the questions to determine your knowledge and ability to prepare an Activity Level Budget. You will have 30 minutes to complete this 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:
Determine for PE1 the financed requirements and list requirements in CI numerical sequence.
Learners will have 30 minutes to complete the PEs.
Groups will need to have answer on all estimates and be prepared to be called on to give answers and their explanations to the class.
Determine for PE3 the financed requirements using the information listed and list them in CI numerical sequence.
Determine for PE1 the financed requirements and list them in EOR numerical sequence.
Motivator:
Once again, we go back to the concrete experience / motivator scenario at the beginning of the lesson, which led us to ask, “Budget Process". Let us continue to keep in mind as you are conducting the PE the question and answers we discussed. "What is the purpose of a budget “?
Scenario: You have decided to buy a new car, since your current car has been giving you problems. After deciding on a car to buy, you estimate that you will incur an additional $700/yr in expenses for the insurance and property taxes and will have a $500 monthly car payment; your current car is paid off. You make some calculations on your budget and conclude that it is viable to purchase the new car, but only if you make cuts to discretionary expenses, such as cable.
What is the purpose of a budget?
Who has experienced something similar to the scenario?
How is this scenario related to the DA’s budgeting process?
Evaluation: To obtain a "Go" in this PE, you must:
Determine financed requirements and list them in EOR numerical sequence.
Determine financed requirements and list requirements in CI numerical sequence.
Solutions for PE1, PE2 and PE3
Practical Exercise Answer Key PE1
EOR A B C D E F F1 F2 F3 F4 G
, , , , , , , ,
, , , , , , , ,
, , , , ,
, , , ,000
, , , , , , ,
, , , ,850
TOTAL 110, , , , , , , , , , ,270
Total Requirement (A) $110, Total Requirements (A) $110, Dollar Guidance (1) $84, Remaining Requirements (C) $108,740
= Unfinanced RQTs (G) $26, = Remaining Requirements (C) $108, = Net Available Funds (D) $82, = Less Important Rmng RQTs(E) $26,270
- Dollar Guidance (1) = (F) (84,270) Directed Requirements (B) (1,800) Total Directed RQTs (B) (1,800) - Net Available Funds (D) (82,470)
Practical Exercise Answer Key PE2
, , , , , , ,
, , , , , , ,
, , , , , , , , , ,790
, , , , , , , , , ,000
, , , , , , , , , ,570
, , , , , , ,
TOTAL 228, , , , , , , , , , ,360
Total Requirement (A) $228, Total Requirements (A) $228, Dollar Guidance (1) $215, Remaining Requirements (C) $61,710
= Unfinanced RQTs (G) $13, = Remaining Requirements (C) $61, = Net Available Funds (D) $48, = Less Important Rmng RQTs(E) $13,360
- Dollar Guidance (1) = (F) (215,000) Directed Requirements (B) (166,650) Total Directed RQTs (B) (166,650) - Net Available Funds (D) (48,350)
Practical Exercise Answer Key PE3
CI A B C D E F F1 F2 F3 F4 G
,331, ,331, ,331, , ,156, ,739, ,331,
, , , , , , ,
, , , , , , , , , ,650
, , , , , , , , , ,600
, , , , , , , , , ,450
, , , , , , ,
, , , , , , , , , ,800
, , , ,000
TOTAL 3,050, ,741, , , , ,838, , ,401, ,109, ,838, ,500
- Dollar Guidance (1) = (F) (2,838,700) Directed Requirements (B) (2,741,340) Total Directed RQTs (B) (2,741,340) - Net Available Funds (D) (97,360)
Total Requirement (A) $3,050, Total Requirements (A) $3,050, Dollar Guidance (1) $2,838, Remaining Requirements (C) $308,860
= Unfinanced RQTs (G) $211, = Remaining Requirements (C) $308, = Net Available Funds (D) $97, = Less Important Rmng RQTs(E) $211,500

54. TLO Check On Learning Ask It Basket
Show Slide #54: TLO Check On Learning / Ask It Basket (Ask It Basket)
Facilitator's Note: Review the questions/topics that learners had questions about. Poll the class, once you have read the questions to them to see if they are able to answer on another’s questions. Once all questions have been read, you may choose to review other topics within the lesson that were not covered by the learner’s questions.
“Or”
Facilitator's Note: At this time, break class into equal groups. Each group take out paper and as a group, write down a few questions from the lesson that they just received. Give them enough time to get their questions written. Once all groups have a sufficient amount of good questions, have each group pass their questions to another group and have them answer them. Allow sufficient time for them to answer the questions. Once all questions have been answered, have each group read their questions and answers.
Ask It Basket

55. TLO Summary Action: Prepare a Budget
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 process of budget development
Identify key personnel in the budgeting process
Identify the six budgeting steps
Show Slide #55: TLO Summary
Action: Prepare a Budget
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 process of budget development
Identify key personnel in the budgeting process
Identify the six budgeting steps
“Or”
Facilitator’s Notes: During this lesson, we learned about how to receive dollar, manpower, workload and administrative guidance from MACOM to determine activity’s total estimated dollar requirements. We looked over determine finance requirements and establish priorities of unfinanced requirements and decrements for phasing and preparing supporting schedules. Conducted several PEs on preparing activity level reports for preparing a budget.
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.