1. Conduct Central Funding
U.S. ARMY SOLDIER SUPPORT INSTITUTE
Noncommissioned Officer Academy - Senior Leaders Course
542-36B40-C46 - Financial Management
ACD6B101 – Conduct Central Funding Operations
SCOPE
Conduct Central Funding is a lesson designed to explain guidelines, methods, and general practices to be used in order to perform central funding operations in various operating environments. At the conclusion of this lesson, students should be able to identify concepts and skills of determining currency requirements, establishing a procurement system, establishing a distribution system, and maintaining a receiving function. Conduct Central Funding creates a foundation of competence and accountability as the second lesson in TLO 3.0. Conduct Central Funding also supports learning objectives and desired outcomes of ELO
Method of Instruction: Discussion
Educational Outcomes:
Soldiers-Valued members of the team who exhibit character, accountability, resilience, adaptability, initiative, and sound judgment while honorably serving in a Division/ASCC G-8 or SRC 14 delivering FM support.
Doctrinally Sound-Competently delivers timely, accurate, and relevant FM support.
Technically Capable-Demonstrate the capabilities and perform the basic functions of FM enabling systems.
-Understands the FM’s role in accomplishing the Division/ASCC G-8 or SRC 14 mission in support of Unified Land operations.
Critical and Creative-Able to solve sometimes ambiguous problems using logical thinking and sound reasoning to develop viable recommendations or solutions.
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 RISK MANAGEMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations, (METT-TC). 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
Instructional Guidance: Throughout this lesson, solicit from students the challenges they experienced in the operational environment (OE) and what they did to resolve them. Encourage students to apply at least one of the critical variables: Political, Military, Economic, Social, Information, Infrastructure, Physical Environment and Time (PMESII-PT).
21st Century Soldier Competencies:
5. Teamwork and collaboration
6. Communication and engagement (oral, written, negotiation)
9. Tactical and technical competence

2. Enabling Learning Objective
Action: Conduct Central Funding
Conditions: In a classroom environment given a two hour time frame; students will work as a member of a small group/ individual; using DoD FMR R, Volume 5, FM 1-06, the slide presentation for immediate referencing, and students are also required to participate in small group discussions with an awareness of the Operational Environment (OE) variables and factors.
Standard: Students will be assessed within 80% accuracy by demonstrating their understanding of determining currency requirements, procuring funds, distributing funds, and receiving funds.
2. ENABLING LEARNING OBJECTIVE
Action: Conduct Central Funding
Conditions: In a classroom environment given a two hour time frame; students will work as a member of a small group/ individual; using DoD FMR R, Volume 5, FM 1-06, the slide presentation for immediate referencing, and students are also required to participate in small group discussions with an awareness of the Operational Environment (OE) variables and factors.
Standards: Students will be assessed within 80% accuracy by demonstrating their understanding of determining currency requirements, procuring funds, distributing funds, and receiving funds.
Learning Domain: Affective
Level of Learning: Valuing
3. ASSIGNED STUDENT READINGS
N/A
4. INSTRUCTOR ADDITIONAL READING(S)/MATERIAL
5. TRAINING AIDS
This lesson is taught in a small group classroom setting with personal computer systems, Panasonic projection televisions, Mr. Podium MP42 Lectern, indoor speakers, Touch panel TPS-3100I Crestron, Ceiling mountable projector, internet access, and a dry erase/white board.
Appendix A: Assessment Plan
Appendix B: Slides
6. CONDUCT OF LESSON
Lesson Timeline:
05 minutes Concrete Experience: Culture of Cost Conscious Video
15 minutes Publish and Process
30 minutes Generalize New Information: Introduce the lesson
20 minutes Break
10 minutes Develop
40 minutes Apply
Instructor Note: Adjust the Lesson Timeline as necessary to facilitate class schedule, your teaching style, and student learning. There are no time constraints during any particular phase of the ELM model.

3. Matching 1. ______ Determine Currency Requirements
A. Process of determining what level funds will be distributed at
2. ______ Establish a Procurement System
B. Process of deciding the disposition of mutilated currency
3. ______ Establish a Distribution System
C. Process of establishing what type and amount of currency is necessary
4. ______ Maintain a Receiving Function
b. Concrete Experience (05 minutes)
The concrete experience serves as a trigger of past experience, knowledge, and it is also a focusing mechanism for the lesson that follows to support the teaching of new content. The collective intent is to force the student to connect to the lesson and is the precursor to intuitive thinking of experiential learning model.
Walk the students through the matching exercise. Consider this exercise a brief pre-assessment to this class and is designed to focus the students attention on the key elements of the process of conducting central funding.
1. C., 2. D., 3. A., 4. B.
c. Publish and Process (15 Minutes)
During this phase of the Army Learning Model the instructor will solicit responses of the students reaction to the concrete experience. The students will reflect on their experience and knowledge of the topic and they will begin a reconciliation of where they are and, if successful, where they will be at lesson end.
The critical portion of this part of the ELM process is to force the students to reflect. As the instructor you can achieve this by asking a series of thought influencing questions, for example:
How did completing this small exercise help you to understand the procedures of conducting central funding?
What happened in the exercise that made you reflect on previous experiences?
What was your reaction to your ability to easily complete the exercise or vice versa?
How did the video make you feel about past experiences in doing money runs?
Having the students think critically is the ultimate goal of publish and process. Force the students to explain their answers; meaning, how and why did they derive at the solution to the questions.
As the instructor, you should be also looking for responses that will help the students transition from publish and process to generalize new information. During this process, remind the students of lesson objectives as they transition from publish and process into generalize new information.
D. Process necessary to obtain foreign funds

4. Central Funding Operations
The process of providing all necessary currencies to all U.S. and Allied organizations in the theater of operations.
Peacetime
Contingency Operations
Banking Section
Theater Currency Support
Own DSSN
U.S. Treasury Account Holder
d. Generalize New Information ( 30 minutes)
What is central funding? Central funding is the process of providing all necessary currencies to all U.S. and Allied organizations in a theater of operations.
Central funding functions occur during both peacetime and contingency operations. There scope during both of these operations; however are quite different.
During peacetime operations, the theater is relatively stable and Military Banking Facilities (MBF) are available to conduct some or all of the central funding functions. If there is no MBF available, or the MBF cannot conduct all central funding duties, the Financial Management Command will assume these functions.
During contingency operations, the theater is not developed. The first financial management units in the theater must concentrate on funding as one of their primary missions. When two or more FMSUs arrive, the FMSC is responsible for funding these Companies
The Banking section is responsible for theater currency (U.S. and foreign) support. The section coordinates with host nation support and military banking operations to establish and sustain the flow of currency (local or U.S.) to the FMSUs, other DOD Agencies, Services or multinational forces IAW interservice and intergovernmental agreements.
The Banking Section maintains a disbursing station symbol number (DSSN), and may be designated to provide currency to all components of a joint and/or multinational force. This section also coordinates with the State Department, local U.S. Embassy, USAFMSCOM, DFAS, PRT, TFBSO and/or the Treasury to establish host nation banking support requirements.
The Banking Section is the U.S. Treasury account holder for the central funding account and coordinates the selection of any LD institutions in theater. The banking section also facilitates the analysis of host nation financial institutions for LDAs and for the establishment of local banks on DOD Installations. The section obtains support and policy decisions from the DA Banking Officer.
Maintenance of its own Treasury check stock and 100% accountability of all funds.

5. Central Funding Procedures
Determine Currency Requirements:
Type of currency
U.S.
Foreign
Amount of currency
Number of units
Type of units
Contingency operation requirement
Humanitarian assistance
Cash Holding Authority (CHA)
d. Generalize New Information (30 minutes); cont.
The first step in establishing any Banking Section is to determine the currency requirements for the area of operations. The central funding division must determine the following currency needs:
The types of currency necessary. Mission requirements and locations will determine the types of currency needed.
U.S. currency, though generally well known, is not always accepted in the country of operation.
An alternative foreign currency (such as the Euro) may be needed if the citizens of the country in which the operation is taking place do not accept their own local currency.
The amounts of each currency necessary. In a stable, established theater, determining needs are easy. It is difficult, however, to determine currency needs in a rapidly developing theater. Factors to consider are:
Number of units arriving. With more units in the AO, the currency requirements will be larger.
Types of units arriving. Different units have different types of needs. Support units need larger amounts of foreign currency for local purchases compared to combat units.
Contingency operation (CONOPS) requirements. During CONOPS, the financial manager must be prepared to operate in austere conditions for an indefinite period of time.
FM support to combat operations, during a contingency, is the most complex situation a financial manager will face. If the Army is designated the executive agent (EA), responsibilities will include providing funding support to other Services, other agencies, and if in a multinational environment, to other nations.
Humanitarian assistance. Humanitarian assistance and disaster relief operations are normally of relatively short duration usually less than 12 months. When the Army and the other Services provide assistance to an area outside the United States, other nations participating in the relief operation will likely provide some financial assistance. At the same time, U.S. costs will be incurred in providing support to other participating nations.

6. Central Funding Procedures
Establish a Procurement System:
Process to obtain Foreign Funds:
Military Banking Facility (MBF)
Financial Management Center (FMSC)
Nearest Embassy
Local Banking System
d. Generalize New Information (30 minutes); cont.
The second step is to establish and maintain a procurement system.
When authorized in writing by the commander or higher authority, foreign funds may be obtained for official purposes. Official purposes include purchase of foreign currency for disbursing purposes, disbursing payments in foreign currency to U.S. Government creditors, and exchanging foreign currency or other negotiable instruments for which the disbursing officer is accountable for U.S. currency or negotiable instruments. Foreign funds obtained may be in the form of currency or credits maintained in limited depositary checking accounts. The written authority to obtain foreign funds shall be retained in the files of the disbursing officer (DO). Obtain funds from the nearest MBF.
If this is not possible, obtain funds from the closest FMSC. The FMSC is staffed to provide funds to distant locations. The currency may get to your location by certified mail or couriers. Certified mail or couriers are the preferred methods of delivery.
If necessary, contact the nearest embassy if no MBF or Financial Management Center is present.
If it is allowable by the FMSC and DFAS to procure your currency from the local banking system, you may be able to obtain your needs in country.

7. Central Funding Procedures
Establish a Distribution System:
Determine Level of Funds Distribution
Coordinate Support Agreements
Establish Transportation System
Determine Repayment Policy
d. Generalize New Information (30 minutes); cont.
Determine at what level the funds will be distributed at (e.g., Center, Support Unit, or Detachment).
Coordinate support agreements with other agencies (e.g., AAFES, Inter-Service Finance units, or inter-government).
Establish a system to transport funds to receiving parties. Distribution becomes your primary function. Funding teams (FTs) from your cell may have to travel great distances to deliver funds. Units may also have to come to your location to get their money.
Determine policy for repayment. You have two options:
Using a check-for-cash or electronic funds transfer (EFT) is the preferred method.
A transfer of accountability (DD Form 1081) is the least preferable method.

8. Central Funding Procedures
Receiving Functions:
Disposition of Mutilated or Contaminated Currency
Currency Exchange for Soldiers Departing Theater
Paying Agents Responsibility
surrender funds upon terminations of operations or duties
d. Generalize New Information (30 minutes); cont.
Finally, the central funding team has receiving functions.
All mutilated or contaminated currency must go through the central funding site for proper disposition.
Soldiers leaving the theater must be given the opportunity to exchange any foreign currency for U.S. currency.
Procurement sources (e.g., Paying Agents) must turn-in all funds when operations cease.

9. Critical Thinking How else could you use this information?
How might you use this information in the future?
e. Develop (10 minutes)
This phase is student-centered and instructor facilitated. Allow the students to decide how they will use the information. The definitive goal is for the students to think critically and creatively about how to use the information garnered from the lesson plan in the future. As the instructor you can direct the students to brainstorm or you can ask open ended questions such as:
How might you use this information in the future?
How else could you use this information?
How can you apply newly learned information in current or future duty positions?
Instructor Note: The above listed questions are only examples. As the instructor you are free to ask varied questions. However, ensure the questions are open-ended and serves to ensure the students see the relevance of the generalized new information presented and future usage.
How can you apply newly learned information in current or future duty positions?

10. Central Funding Jeopardy
f. Apply (40 minutes)
This phase is student-centered and allows the students to personally measure what they have learned. Navigate to the jeopardy practical exercise. Implement this exercise to the class as whole. Ensure maximum participation from all students.

11. Enabling Learning Objective
Action: Conduct Central Funding
Conditions: In a classroom environment given a two hour time frame; students will work as a member of a small group/ individual; using DoD FMR R, Volume 5, FM 1-06, the slide presentation for immediate referencing, and students are also required to participate in small group discussions with an awareness of the Operational Environment (OE) variables and factors.
Standard: Students will be assessed within 80% accuracy by demonstrating their understanding of determining currency requirements, procuring funds, distributing funds, and receiving funds.
Enabling Learning Objective
Review the learning objective, summarize the lesson, and poll for questions.

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

13. Appendix B Presentation Outline Appendix B Slides
Slide Number Description
Slide Conduct Central Funding
Slide Enabling Learning Objective
Slide 3 Matching
Slide Central Funding Operations
Slide Central Funding Procedures
Slide Central Funding Procedures
Slide Central Funding Procedures
Slide Central Funding Procedures
Slide Critical Thinking
Slide Jeopardy
Slide Enabling Learning Objective
Slide Appendix A
Slide Appendix B