1. Obligation Management
SHOW SLIDE 1: OBLIGATION MANAGEMENT
SECTION I. : Manpower Management Process
ADMINISTRATIVE DATA
All Courses Including This Lesson
Course Number Version Course Title
01 Planning Programming Budget & Execution Course (PPBE)
Task(s) Task Number Individual
Taught (*) or
Academic Hours
The academic hours required to teach this lesson are as follows:
Resident
Hours/Methods
Academic Hours/Method
0.1 hrs Introduction/Conference Discussion
3.8 hrs Conference Discussion
0.1 hrs Summary
0.0 hrs Total Time
Test Lesson Number
Testing (to include test review)
Hours -0 hrs
Lesson Number -
Prerequisite Lesson(s)
Lesson Number
Lesson Title
Define Obligation Management
Security Level: Unclassified
Requirements: There are no clearance or access requirements for the lesson.
Foreign Disclosure Restrictions
FD5. This product/publication has been reviewed by the product developers in coordination with the Fort Jackson Soldier Support Institute foreign disclosure authority. This product is releasable to students from all requesting foreign countries without restrictions.
Instructor Requirements
Must meet physical qualifications IAW AR
Materials Required
Instructor Materials:
Lesson plan slides and Manpower Management Summary Sheet
Student Materials:
Manpower Management Summary Sheet
Classroom, Training Area, and Range Requirements
General Purpose Classroom - 25 Seats
Instructional Guidance
Note: Before presenting this lesson, instructors must thoroughly prepare by studying this lesson and identified reference material.
Also, provide the students with situational awareness of the Operational Environment (OE) variables and actors.
Proponent Lesson Plan Approvals
Name Rank Position Date
Harris, Norman CTR Writer/Developer xx-xxx-xxxx
Bonig, Reid GS-12 Chief - FMITD xx-xxx-xxxx
Davis, Bobby LTC FM-DOT xx-xxx-xxxx
Zellars, Eric COL Commandant xx-xxx-xxxx
Motivator: As a resource manager, it is important to know where and how your organization fits into Planning, Programming, Budgeting and Execution process.
To succeed, you must know the DoD, DA, and ASA(FM&C) organization structures. Knowledge of these structures will enhance your understanding of how resources are allocated and how resource management structures influence or facilitate resource allocation.
The fund holder is primarily responsible for managing obligations. This includes:
 A. Reviewing obligation documents for compliance.
 B. Ensuring the accounting classification cited on the obligation document is appropriate for the stated purpose of the obligation.
 C. Ensuring the amount obligated meets statutory and regulatory provisions.
 D. Ensuring the obligation is recorded timely and accurately. 
Accounting activities are responsible for ensuring the integrity and accuracy of the obligation information. Accounting activities will not accept, process, or maintain obligation documentation that fails to satisfy applicable statutory and regulatory guidance. In no instance will the accounting activity fail to record a valid obligation.
Whether appropriations are legally available for obligation and expenditure depends upon the following: PTA
 The purpose of the obligation must be one for which the appropriation was made (31 United States Code (U.S.C.) 1301(a)).
 The obligation must be incurred within the time that the appropriation was made available for new obligations (31 U.S.C. 1502(a)).
 The obligation may not exceed the amount appropriated by statute, nor may it be incurred before the appropriation becomes law, unless otherwise provided by law (31 U.S.C and 41 U.S.C. 11).
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FINANCIAL MANAGEMENT SCHOOL

2. Terminal Learning Objective
Action:
Conditions:
Standard:
Define Obligation Management.
Given a summary sheet containing DFAS-IN Regulation 37-1, Finance and Accounting Policy Implementation, and slides.
With 80% accuracy:
Identify obligation management; obligation management tools, and the communication process between accountants and resource managers.
SHOW SLIDE 2: TERMINAL LEARNING OBJECTIVE
Note: State the TLO
Safety Requirements:  Everyone is responsible for safety. A thorough risk assessment must be completed prior to every mission or operation.
Risk Assessment Level: Low
Environmental Considerations: NOTE: It is the responsibility of all Soldiers and DA civilians to protect the environment from damage.
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.
Evaluation: Students will take a comprehensive test at the end of Week 1. Students must score 80% or higher and International officers must score 70% or higher.
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FINANCIAL MANAGEMENT SCHOOL

3. Obligation Management
The systematic process of managing obligations by accountants and resource managers using all available resources.
SHOW SLIDE 3: Obligation Management
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FINANCIAL MANAGEMENT SCHOOL

4. Importance of Obligation Management
Big Picture Perspective.
Resource Management Perspective.
“The Army Mission”
Key Players.
- Combat Units/Soldiers.
- Congress.
- Resource Managers.
- Accountants.
SHOW SLIDE 4: Importance of Obligation Management
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FINANCIAL MANAGEMENT SCHOOL

5. Obligation Management Tools
OBLIGATIONS
FUNDING
Obligation rate =
Obligation adjustments
True obligation rate
Liquidation performance =
Plan-to-actual
Abnormal conditions
Timeliness of transactions/events
DISBURSEMENTS
OBLIGATIONS
SHOW SLIDE 5: Obligation Management Tools
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FINANCIAL MANAGEMENT SCHOOL

6. Fund Status ECC Reports Cumulative Fund Status Reports
There are 9 types of Cumulative Fund Status ECC Reports. Cumulative status can be current up to 1 year. GFEBS will stop you from going over your budget. Cumulative will represent future, present, and past budget reports.
Show Slide #6, Funds Status ECC Reports / Cumulative Fund Status Reports
NOTE: You need to verify (Cumulative status can be current up to 1 year. GFEBS will stop you from going over your budget. Cumulative will represent future, present, and past budget reports.)
ECC cumulative reports are used to provide funds status that:
• Is real-time.
• Is in standard report format with limited capability to change layouts and content.
• Identifies available AFP and Allotment.
• Is run in the transactional side of GFEBS.
• Is at formal funds distribution levels.
• Is capable of drilling down to document level on noncumulative reports, such as:
- Budget/documents
- PRs/POs
- Receipt of goods
- Disbursing information
Fund Status ECC Reports. There are 9 types of Fund Status ECC Reports as follows;
ZFSC1 - Cumulative Fund Status by Funds Center(FC)/Commitment Item (CI)
ZFSC2 - Cumulative Status by Functional Area (FA)/CI)
ZFSC3 - Cumulative Status by Funded Program (FP)/CI
ZFSC4 - Cumulative Status for Funds Center – Summary (Fund/FA)
ZFSC5 - Cumulative Status by Funds Center – Detail (Fund/FA/FC/FP/CI) (Fund and FC must be specified)
ZFSC6 - Cumulative Fund Status by Functional Area – Summary (FA/Fund/FC)
ZFSC7 - Cumulative Fund Status by Functional Area Group – Detail (FA/Fund/FC/FP/CI) (Fund and FC must be specified)
ZFSC8 - Cumulative Fund Status with Open Commitments – Summary
ZFSC9 - Cumulative Fund Status with Open Commitment - Detail
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FINANCIAL MANAGEMENT SCHOOL

7. Fund Status ECC Reports
Cumulative Fund Status Reports Cont.
ZFSC1 - Cumulative Fund Status by Funds Center(FC)/Comm Item (CI)
ZFSC2 - Cumulative Status by Functional Area (FA)/CI)
ZFSC3 - Cumulative Status by Funded Program (FP)/CI
ZFSC4 - Cumulative Status for Funds Center – Summary (Fund/FA)
ZFSC5 - Cumulative Status by Funds Center – Detail (Fund/FA/FC/FP/CI)
ZFSC6 - Cumulative Fund Status by Functional Area – Summary (FA/Fund)
ZFSC7 - Cumulative Fund Status by Functional Area Group-Detail
ZFSC8 - Cumulative Fund Status with Open Commitments-Summary
ZFSC9 - Cumulative Fund Status with Open Commitment - Detail
SHOW SLIDE 7: Cumulative Fund Status Reports
1. The Fund Status reports can be used for a variety of reasons: Increased Visibility, Viewing Account Assignments, Managerial
Control and Decision Making, and Reprogramming.
2. A second reason for using the Fund Status reports is to view account assignments in order to ensure derivation
rules established for WBS elements reflect an accurate Cost Center/Funds Center grouping.
Additionally, an erroneous posting could result from the automatic derivation of account assignments.
Therefore, a Fund Status report is helpful to:
- Ensure derivation rules are followed appropriately.
- Validate whether data is posted correctly.
3. A third reason for using these reports is for managerial decision making purposes. Fund reviews, such as mid-year or execution reviews, help
management identify and report the status of specific funds.
4. The fourth reason for analyzing and using the Fund Status reports is to identify reprogramming requirements.
- The Funds Management Maintainer role requests permission from higher headquarters to reprogram funds.
11/9/2018
FINANCIAL MANAGEMENT SCHOOL

8. Fund Status ECC Reports Non-Cumulative Fund Status Reports
There are 6 types of Non-Cumulative Fund Status ECC Reports that are used at a specific point in time. Within a 30 day or 6 day window for a specific purpose and only for that purpose.
Show Slide #8, Funds Status ECC Reports / Non-Cumulative Fund Status Reports
NOTE: Non-Cumulative Status of Funds Reports. Used at a specific point in time. Within a 30 day or 6- day window for a specific purpose and only for that purpose.
ECC non-cumulative reports are used to provide funds status that:
• Is real-time.
• Is in standard report format with limited capability to change layouts and content.
• Identifies available AFP and Allotment.
• Is run in the transactional side of GFEBS.
• Is at formal funds distribution levels.
• Is capable of drilling down to document level on noncumulative reports, such as:
- Budget/documents
- PRs/POs
- Receipt of goods
- Disbursing information
c. There are 6 types of Fund Status ECC Reports:
ZFSNC1 – Non-Cumulative Status by Funds Center (FC/CI)
ZFSNC2 – Non-Cumulative Status by Functional Area (FA)/CI)
ZFSNC3 – Non-Cumulative Status by Funded Program (FP/CI)
ZFSNC4 – Non-Cumulative Status by Funds Center – Summary (FC/Fund/FA)
ZFSNC5 – Non-Cumulative Status by Funds Center – Detail (/FA/FC/Fund/FP/CI)
ZFSNC6 – Non-Cumulative Status by Funds Center – Pre-Posted (FC/CI)
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FINANCIAL MANAGEMENT SCHOOL

9. Fund Status ECC Reports Non-Cumulative Fund Status Reports (Cont.)
ZFSNC1 – Non-Cumulative Status by Funds Center (FC/CI)
ZFSNC2 – Non-Cumulative Status by Functional Area (FA)/CI)
ZFSNC3 – Non-Cumulative Status by Funded Program (FP/CI)
ZFSNC4 – Non-Cumulative Status by Funds Center – Summary (Fund/FA/)
ZFSNC5 – Non-Cumulative Status by Funds Center – Detail (/FA/FC/FP/CI)
ZFSNC6 – Non-Cumulative Status by Funds Center – Pre-Posted (FC/CI)
SHOW SLIDE 9: Non-Cumulative Fund Status Reports
1. The Fund Status reports can be used for a variety of reasons: Increased Visibility, Viewing Account Assignments, Managerial
Control and Decision Making, and Reprogramming.
2. A second reason for using the Fund Status reports is to view account assignments in order to ensure derivation
rules established for WBS elements reflect an accurate Cost Center/Funds Center grouping.
Additionally, an erroneous posting could result from the automatic derivation of account assignments.
Therefore, a Fund Status report is helpful to:
- Ensure derivation rules are followed appropriately.
- Validate whether data is posted correctly.
3. A third reason for using these reports is for managerial decision making purposes. Fund reviews, such as mid-year or execution reviews, help
management identify and report the status of specific funds.
4. The fourth reason for analyzing and using the Fund Status reports is to identify reprogramming requirements.
- The Funds Management Maintainer role requests permission from higher headquarters to reprogram funds.
Instructor Note: The next slide, I will walk you through the process of pulling a fund status report, after that you will have two short exercises to perform.
11/9/2018
FINANCIAL MANAGEMENT SCHOOL

10. Cumulative Fund Status by
Funds Center (FC) / Commitment Item (CI) Cont.
3. Click on “Execute” on the Menu bar
7. Type /N and press enter
2. Type ARMY
1.Type ZFSC1 and press enter
4. Click on D** O & M Army
Note: A2ABM is the Fund Center for Fort Jackson
Slide 11: Cumulative Fund Status by Funds Center (FC) / Commitment Item (CI) Cont.
Note: Have students go to PPBE Week 2, click on GFEBS Training Client, and “Institutional” to perform this task.
1.Type ZFSC1 and press enter
2. Type ARMY
3. Click on “Execute” on the Menu bar
4. Click on D** O & M Army (Current FY), or which every Fund the instructor directs to click on
5. Click on the “+” to Expand
6. Obligation amount for CI 2310
7. Type /N and press enter
Instructor Note: Have students perform the two task om the next slide.
5. Click on Expand “+”
6. Obligation amount for CI 2310
Note: **represent current FY

11. FINANCIAL MANAGEMENT SCHOOL
Joint Review
Required every 4 months (3 times per year)
Reviews will ensure:
Validity
Accuracy
Documentation
Reconciliation
SHOW SLIDE 11: Joint Review
11/9/2018
FINANCIAL MANAGEMENT SCHOOL

12. Management Interrelationships
Accounting & Resource
Management Interrelationships
Accountants
Accountants control, validate, and record.
Accountants provide reports based on financial records.
Resource Managers (RMs)
RMs use historical data to identify patterns.
RMs receive funding and authorize obligations.
SHOW SLIDE 13: Accounting & Resource Management Interrelationships
Interaction ensures accuracy, completeness, timeliness, reasonableness, and usefulness.
Joint relationship helps recommend policy, procedure, and goal modification.
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FINANCIAL MANAGEMENT SCHOOL

13. Check On Learning
____________________is the systematic process of managing obligations by accountants and resource managers using all available resources.
Obligation rate is ______________
There are a total of ___ ECC fund status reports
Check on Learning
NOTE: Conduct a check on Learning

14. Terminal Learning Objective
Action:
Conditions:
Standard:
Define Obligation Management
Given a summary sheet containing DFAS-IN Regulation 37-1, Finance and Accounting Policy Implementation, and slides.
With 80% accuracy:
Identify obligation management; obligation management tools, and the communication process between accountants and resource managers.
SHOW SLIDE 12: Terminal Learning Objective
11/9/2018
FINANCIAL MANAGEMENT SCHOOL