1. Maintain Commitment and Obligation Records
Maintain Commitment and Obligation Documents
AAC6B102 / Version 3
1 August 2015
Facilitator Note: Show Slide # 1, Title Slide
SECTION I. ADMINISTRATIVE DATA
Method of Instruction. Conference / Discussion
Instructor to Student Ratio: 1:25
Time of Instruction 6hrs 30mins
Media: Large Group Instruction
Task Taught: 805A-36B-1011 (*) Maintain Commitment and Obligation Records
Reinforced Tasks: 805A-36B-1009 Identify Master Data Elements
Instructor Materials:
DFAS-IN Regulation 37-1, Finance and Accounting Policy Implementation
DFAS-IN Manual , The Army Management Structure
DODFMR R, Vol 10, Department of Defense Financial Management Regulation
Student Materials:
SECTION II. INTRODUCTION:
Time of Instruction: 10 mins
Motivator: In today’s Army, we define ourselves as being the best trained, equipped and the best led Army that the United States has ever known. So to keep this image we as Financial Leaders and Managers have to become the best at financially supporting our Soldiers and being stewards of taxpayer dollars. Knowing this we have embraced Standard Financial Information System (SFIS) and the General Fund Enterprise Business System (GFEBS) in that it provides our Army decision makers with accurate, reliable, timely business and financial information to keep our War Fighters within their fiscal responsibilities.
Instructor Lead-in: Financial Management Technicians are obligated with the task of ensuring our input data is accurate, reliable, and useful to others. Knowing all particular requirements and methods utilized in GFEBS will keep technicians and commanders safe. It is important that we understand GFEBS, how to navigate within GFEBS, how to research transactions and job aids and to understand the different fields of the GFEBS system. During this lesson you will gain and understanding of GFEBS and learn how to research information in order for you to be successful in your job position (user role assigned). 1

2. Terminal Learning Objective
Action: Maintain Commitment and Obligation Records
Conditions: Given access to DFAS-IN Regulation 37-1, DoDFMR Volume 3 (Chapters 8 & 15) and DoDFMR Volume 14; standard office supplies and equipment, and awareness of Operational Environment (OE) variables and actors.
Standard: Identify stages of expenditure transactions, identify the flow and receipt of funds, and maintain commitment and obligation records with a minimum of 75% accuracy.
Facilitator Note: Show Slide #2 and Inform the students of the following Terminal Learning Objective requirements.
Action: Maintain Commitment and Obligation Records
Conditions: Given access to DFAS-IN Regulation 37-1, DoDFMR Volume 3 (Chapters 8 & 15) and DoDFMR Volume 14; standard office supplies and equipment, and awareness of Operational Environment (OE) variables and actors.
Standard: Identify stages of expenditure transactions, identify the flow & receipt of funds, and maintain commitment and obligation records with a minimum of 75% accuracy.
ATTENTION: Maintaining Commitment and Obligation Records are vital. The ability to read a Funding Authorization Document (funding document) or Funding Allowance Document (funding document) and Fund Control Record is the same concept as balancing a checking account. We must maintain control of commitments and obligations in a budget office.
MOTIVATION: Some required information is essential to prevent the occurrence of violations of Title 31 U.S.C. Section 1517, known as the Anti-Deficiency Act. The Army's concept of decentralized fund control makes it essential to maintain accurate records at the activity level.
NOTE: Take good notes and pay very close attention during this entire block of instruction. If you do not grasp the concepts taught here, you will struggle throughout the entire lesson.

3. Stages of an Expenditure Transactions
Authority Received/Funding
Commitment
Obligation
Accrued Expenditure
Expense
Disbursement
Facilitator Note: Show Slide #3, Stages of Expenditure Transactions
SECTION III. PRESENTATION
1. Learning Step / Activity 1. Stages of Expenditure Transactions
Method of Instruction: Conference / Discussion
Instructor to Student Ratio: 1:25
Time of Instruction: 1 hrs 30 mins
Media: Large Group Instruction
Facilitator Note: Refer students to page 1, Para 3 (Stages of Expenditure Transactions) of the Maintain Commitment & Obligation Records Handout.
a. STAGES OF EXPENDITURE TRANSACTIONS. Before we can understand how to control our funds, we must briefly discuss how we receive funds. There are six stages to an expenditure transaction; authority received, commitment, obligation, accrued expenditure, expense and disbursement.

4. Types of Funding Authorities
Authorization provided on the funding document to incur obligations against the government funds.
Facilitator Note: Show Slide #4
Authority Received/Funding
Facilitator Note: Refer students to page 1, Para 3a (Authority Received/Funding) of the Maintain Commitment & Obligation Records Handout. Show the slide and explain that the authorities will be discussed later in the class.
(1) AUTHORITY RECEIVED/FUNDING: Funds are provided on a document such as a Resource Distribution Document (RDD) or a Funding Target Memorandum. The type of funding document depends on the level of the allowance/allotment. For example, the Installation Level could use the DA Form 1323-C (Funding Allowance Document), whereas the Activity and Unit Level would use a Funding Target Memorandum. This authorization provides funds which allow obligations to be incurred against government.
NOTE: In GFEBS funding is generally requested by using . GFEBS has capability when you are in production.
Direct Obligation Authority (DOA)
Automatic Reimbursement Authority (ARA)
Funded Reimbursement Authority (FRA)

5. Commitment
An administrative reservation of funds which authorizes the creation of an obligation without further approval by the certifying officer.
Commitments are recorded in GFEBS via transaction code FMY1
Facilitator Note: Show Slide #5
Ref: DODFMR Volume 3, Chapter 15 (150203)
Facilitator Note: Refer students to page 1, Para 3b (Commitment) of the Maintain Commitment & Obligation Records Handout.
(2) COMMITMENT: A commitment is an administrative reservation of funds based upon firm procurement requests, orders, directives, and equivalent instruments. Or requests which authorize the creation of an obligation without further recourse to the official responsible for certifying the availability of funds. Commitments, when recorded in the accounting records, reduce the uncommitted/unobligated balance. A commitment document is an order form used to ensure that funds are available prior to incurring an obligation. Commitment contracts are documented using the Purchase Request and Commitment Form (DA Form 3953). With Interdepartmental orders you would use the Military Interdepartmental Request (DD Form 448) as the commit document until the Acceptance of the MIPR (DD Form 448-2) is received. Commitments for travel and transportation are documented on a Request and Authorization for TDY Travel of DoD Personnel (DD Form 1610). We will go over these forms together in more detail as it pertains to the lesson during the Practice Set.
Engagement

6. Obligation
A legal reservation of funds which the government is legally bound to pay a known or estimated amount at a specific time.
Obligations are recorded in GFEBS via transaction code FMZ1
Facilitator Note: Show Slide #6
Facilitator Note: Refer students to page 2, Para 3d (Accrued Expenditure) of the Maintain Commitment & Obligation Records Handout.
(3) OBLIGATION: An obligation is a legal reservation of funds which the government is legally bound to pay a known or estimated amount at a specific time. An obligation is properly recordable only when supported by documentary evidence of the following:
- A binding agreement, in writing.
- A valid loan agreement.
- An order required by law to be placed with a government agency.
- Other legal liabilities.
Obligations incurred are the amounts of orders placed, contracts awarded, services received, and similar transactions during an accounting period that will require payment during the same or future period. These amounts include payments for obligations that were not previously recorded, adjustments for differences between obligations previously recorded, and actual payments to liquidate those obligations.
Marriage

7. Accrued Expenditure/Expense
Accrued Expenditure - The actual or constructive receipt of supplies and/or services for which a valid obligation has been incurred.
Expense - The total value of goods and/or services consumed in accomplishment of the mission or task.
Facilitator Note: Show Slide #7
Accrued Expenditure/Expense
Facilitator Note: Refer students to page 2, Para 3d for (Accrued Expenditure) and para. 3e (Expense) of the Maintain Commitment & Obligation Records Handout.
(4) ACCRUED EXPENDITURE: Accrued expenditures represent the actual or constructive receipt of supplies or services for which an obligation has been incurred. Accruals are recorded without regard to whether payment has been made or an invoice/bill received. This provides information on the total amount of supplies or services received in the accounting period, as opposed to the total amount of obligations incurred during the period.
Example: Area where the event will be held, Preacher/Minister conducting the wedding with rings
(5) EXPENSE: The expense is the value of goods or services consumed to accomplish a mission or task. This stage is normally recorded simultaneously with the accrued expenditure.
Tuxedo rental, cake, decorations, etc.

8. Disbursement
A payment of a legal liability of the government which decreases the accountability of the Disbursing Officer (DO) making the decision.
Facilitator Note: Show Slide #8
Disbursement
Facilitator Note: Refer students to page 2, Para 3f (Disbursement) of the Maintain Commitment & Obligation Records Handout.
(6) DISBURSEMENT: A disbursement is the payment of a legal liability of the government, which decreases the accountability of the Disbursing Officer (DO) making the disbursement. Disbursements are made for the purpose of transferring funds or liquidating valid obligations of the government.
Total payout for all services involved in accomplishing the wedding. (payment for all items, events,)
Disbursements. Amounts paid by Federal Agencies, by cash or cash equivalent, during the fiscal year to liquidate government obligations. “Disbursement” is often used interchangeably with the term “outlay.” In budgetary usage, gross disbursements represent the amount of checks issued and cash or other payments made, less refunds received. Net disbursements represent gross disbursements less income collected and credited to the appropriation or fund account, such as amounts received for goods and services provided. For purposes of matching a disbursement to its proper obligation, the term disbursement refers to the amount charged to a separate line of accounting.
Example: When you get the invoice and the bill you have the expense. Pay the money invoice + bill = disbursement

9. Check On Learning Facilitator Note: Show Slide #9
Conduct a check on learning and summarize the learning activity.
Q: What are the six stages of an Expenditure Accounting Transaction?
A: Authority Received, Commitment, Obligation, Accrued Expenditure, Expense and
Disbursement.
Q: Which stage of the expenditure transactions is the legal reservation of funds?
A: Obligation
Summary
During this lesson we discussed the 6 Stages of an Expenditure Accounting Transaction which were, Authority Received/Funding, Commitment, Obligation, Accrued Expenditure, Expense and Disbursement. We also understand the sequence in which they should occur in.

10. Funds Distribution 10 Congress (appropriation)
Office of Management and Budget (OMB)
(apportion funds to lower level)
Headquarters Dept. of the Army
HQDA
(allocate funds to lower level)
(Level 1)
ACOM/SOA/GOA/DRU, etc
(allot/allow funds to lower level)
(Level 2)
Special and General Funds Center
Facilitator Note: Show Slide #10
2. Learning Step Activity 2. The Flow of Funds
Facilitator Note: Refer students to page 2, Para 4 (Disbursement) of the Maintain Commitment & Obligation Records Handout.
a. FLOW OF FUNDS: The process by which an installation receives its funds is known as the flow of funds. The flow generally follows this course:
(1) The flow of funds begins with the enactment of an Appropriation Act by Congress.
(2) The Office of Management and Budget (OMB) apportions funds to departments of the U.S. government. Department of Defense (Dept. 97) funds are sent to the Department of the Army through GFEBS at a level 1 interface. Apportion mean to divide the funds.
(3) Headquarters Department of the Army (HQDA) (level 1) allocates funds to its Funds Centers, including Special Operating Agencies (SOA), General Operating Agencies (GOA), and Army Commands (ACOMs). Allocate mean to give. Earmark-legislative provision or allocate directly approved funds to be spent on special projects, programs, or organizations.
(4) The Funds Centers or ACOM/SOA/GOA/DRU, etc. (level 2) allot/allow funds to installations and activities.
Allotment = portion
Allowance = sum for reimbursable expense. A portion is set aside for reimbursables.
(5) The installations (level 3) distribute funds to activities through GFEBS accompanied with a Resource Distribution Document (RDD). The Resource Distribution Document (RDD) further breaks down the Funds by Funds Center/Cost Center.
(6) Activities (level 4) can further distribute funds to their subordinate units on a Funding Target memorandum. The funding target memorandum is sent down each quarter by Funds Center/Cost Center and Cost Element/Commitment Item.
Installations
(sub-commands)
(Level 3)
Subordinate Activity/elements/CMD
(Level 4)
Subordinate Units 10

11. Flow of Funds Congress HQDA (level 1)
Office of Management and Budget (OMB)
ACOM (TRADOC)
(level 2)
Installations(FTJ)
(level 3)
Facilitator Note: Show Slide #11
Flow of Funds (continued)
Congress – appropriation
OMB – apportions fund to the department of the US Gov.
HQDA – fund the fund centers
ACOMS – further allot the funds to the different activities. (FORSCOM, TRADOC, AMC (Army material Command) make up the Army Command),
Installations – distribute funds on a funding document along with a RDD
Sub. Activities – the RDD will show a break down of the funding document by Funds Center/Cost Center. For example: the 120th Replacement is a sub act of FT. Jackson
Subordinate units – with the information provided on the RDD a Funding Target Memo is sent down quarterly by fund center/cost center and cost element/commitment item. Alpha Company is a subordinate unit of 120th Replacement.
Activities can further distribute funds to their subordinate units on a Funding Target memorandum. The funding target memorandum is sent down each quarter by Funds Center/Cost Center and Cost Element/Commitment Item. For example, first through fourth platoon of Alpha Company
Subordinate Activities
(level 4)
Subordinate Units
(lower level)

12. Methods of Funding
Formal distribution - The funding document is subject to the Anti-Deficiency Act Title 31 USC . Formal distribution is the Level 1 through level 4 funding. (higher down to Instillation)
Informal distribution of funds is made on a Funding Allowance Document also known as a funding document. It is NOT subject to the Anti-Deficiency Act Title 31 but could lead to a Title 31 violation
Facilitator Note: Show Slide #12
Methods of Funding
Facilitator Note: Refer students to page 2, Para 5 of the Maintain Commitment & Obligation Records Handout.
(1) Funding Authorization/Allowance Document (funding document): There are two methods of funding. They are formal and informal.
a. The formal distribution of funds is done on a Funding Authorization Document (funding document). The funding document is a subject to the Anti-Deficiency Act Title 31 USC Formal distribution is the Level 1 through level 3 funding. (Higher down to Instillation)
b. The informal distribution of funds is made on a Funding Allowance Document also known as a funding document. It is NOT directly subject to the Anti-Deficiency Act Title 31 but could lead to a Title 31 violation. Subordinate activities and subordinate units fall under the informal distribution.

13. Methods of Funding cont.
Transaction Code FMBB implements funds control at Level 1 and Funds
distribution at Levels Funds distribution in GFEBS is made in Versions:
Version 1 (Planned/AFP)
Version 0 (Actual/Allotment)
Funds distribution must be accompanied by a cash allocation from the
Treasury Warrant.
The Funds Execution Controller must create a Journal Voucher (JV) using
transaction code FB50 to support funds distribution for new appropriations,
transfers, contingency appropriations, or rescissions.
Facilitator Note: Show Slide #13
Facilitator Note: Explain that the t-code FMBB is used to distribute funds. Show the students the FMBB demo transaction. Talk them through the FMBB transaction.
(2) Transaction Code FMBB implements funds control at Level 1 and Funds distribution at Levels Funds distribution in GFEBS is made in Versions:
Version 1 (Planned/AFP)
Version 0 (Actual/Allotment)
(3) Funds distribution must be accompanied by a cash allocation from the Treasury Warrant.
(4) The Funds Execution Controller must create a Journal Voucher (JV) using transaction code FB50 to support funds distribution for new appropriations, transfers, contingency appropriations, or rescissions.

14. Funds Distribution Cont.
Funds Distribution and Control are ongoing processes within the Army and are made up of the following elements:
- Funds Control - Above HQDA
- Funds Distribution - HQDA and below
- Formal Distribution - Levels 1, 2, 3, and 4
Informal Distribution - Occurs below Level 4
Funds Distribution and Control is used to move funds from:
- Base appropriation
- Contingency appropriations, reprogramming, recoveries,
transfers, etc.
Facilitator Note: Show Slide #14
(5) Funds Distribution and Control are ongoing processes within the Army and are made up of the following elements:
- Funds Control - Above HQDA
- Funds Distribution - HQDA and below
- Formal Distribution - Levels 1, 2, 3, and 4
Informal Distribution - Occurs below Level 4
(6) Funds Distribution and Control is used to move funds from:
- Base appropriation
- Contingency appropriations, reprogramming, recoveries,
transfers, etc.
(7) The Level 1 Funds Execution Controller will enter into GFEBS the initial budget appropriated by Congress to HQDA for the upcoming fiscal year.
(8) Subsequently, the Level 1 Funds Execution Controller will transfer the appropriation of funds to Apportionment (Level 1 Funds Center).
(9) Finally, the Funds Management Maintainer (Appropriation Sponsor at Level 1) will transfer funds from Apportionment (Level 1 Funds Center) to Army Commands (ACOMs), Direct Reporting Units (DRUs), etc. (Level 2 Funds Center). This transaction will be performed in GFEBS using transaction code FMBB.
For step-by-step transaction information, refer to the GFEBS Funds Distribution Job Aid on the milWiki or on the GFEBS Performance Support Website (PSW). 14

15. Funds Distribution Cont.
Transaction Code FMBB implements funds control at Level 1 and Funds distribution at Levels Funds distribution in GFEBS is made in Versions: Version 1 (Planned/AFP) and Version 0 (Actual/Allotment).
• Funds distribution must be accompanied by a cash allocation from the Treasury Warrant.
• The Funds Execution Controller must create a Journal Voucher (JV) using transaction code FB50 to support funds distribution for new appropriations, transfers, contingency appropriations, or rescissions.
Facilitator Note: Show Slide #15
(10) The Treasury issues warrants to reserve and guarantee funds availability. The Treasury acts as the “Bank” of the U.S. Government. When HQDA receives the Treasury Warrant, the Funds Execution Controller at HQDA will enter it into GFEBS as a Journal Voucher (JV) to record the posting to cash and the equity to USSGL accounts. 15

16. LSA Check On Learning Facilitator Note: Show Slide #16
Conduct a check on learning and summarize the learning activity.
Q: What are the two methods of funding?
A: Formal and Informal.
Q: What type of funding method is subject to the Anti-Deficiency Act Title 31 USC 1517?
A: Formal
LSA Check On Learning

17. Types of Funding Authorization
Direct Obligation Authority Funded Reimbursement Authority
Automatic Reimbursement Authority
Constitutes Funding Received by Installation
Allows Funding to be Increased by Amount of Orders Received
Total Financial Authority
Facilitator Note: Show Slide #17
3. Learning Step Activity Types of Funding Authorization
Facilitator Note: Refer students to page 3, Para 6 Types of Funding Authority of the Maintain Commitment & Obligation Records Handout.
Facilitator Note: There are 3 types of funding authority on the funding document. They are Direct Obligation Authority (DOA), Funded Reimbursement Authority (FRA) and Automatic Reimbursement Authority (ARA). These will be discussed in detail in the following slides.

18. Direct Obligation Authority (DOA)
Specific Dollar Amount
For Mission Activities and Base Operations
Quarterly Amount Immediately Available for Obligation Upon Receipt of the Allotment
Controlled by Installation
Facilitator Note: Show Slide #18
Direct Obligation Authority (DOA)
Facilitator Note: Refer students to page 3, Para 6a (Direct Obligation Authority, DOA) of the Maintain Commitment & Obligation Records Handout.
a. Direct Obligation Authority (DOA) is received by the installation on a funding document. Specific dollar amount is annotated on the funding document and is used for mission activities and Base Operations. DOA is immediately available for obligation at the time of receipt. Funds available are for a specific dollar amount and are controlled by the installation. DOA is found in section A of the funding document.
Facilitator Note: Have students refer to page 7, Section A for the DOA amount available (Maintain Commitment & Obligation Handout).

19. Funded Reimbursement Authority (FRA)
Specific Dollar Amount
For Specific Non-Mission Activities
Quarterly Amount NOT Immediately Available for Obligation Upon Receipt of Allotment (Placed in a Reserve Account)
Controlled by ACOM
Facilitator Note: Show Slide #19
Funded Reimbursement Authority (FRA).
Facilitator Note: Refer students back to page 3, Para 6b (Funded Reimbursement Authority, FRA) of the Maintain Commitment & Obligation Records Handout.
b. Funded Reimbursement Authority (FRA) is for a specific dollar amount that is annotated on the funding document. The authority received for non-mission activities (e.g., Foreign Military Sales, Trailer Court Utilities, and Damages to Family Housing). Funds are not immediately available for obligation; they are held in reserve until the revenue producing activities place orders. This reimbursement is controlled at the ACOM level. Funds available are for a specific dollar amount and are found in section A of the funding document.
Facilitator Note: Refer students to page 7, Section A of the funding document for the FRA amount available (Maintain Commitment & Obligation Handout).

20. Automatic Reimbursement Authority (ARA)
No Specific Dollar Amount
For Specific Non-Mission Activities
NOT Immediately Available for Obligation Upon Receipt of the Allotment (Obligation Authority “Generated” Based on Receipt of Order)
Controlled by Installation
Facilitator Note: Show Slide #20
Automatic Reimbursement Authority.
Facilitator Note: Refer students to page 3, Para 6c (Automatic Reimbursement Authority, ARA) of the Maintain Commitment & Obligation Records Handout.
c. Automatic Reimbursement Authority (ARA) is the authority to engage in the automatic reimbursement program to temporarily finance support to individuals or non-mission activities. No specific dollar amount is shown on the funding document and is not immediately available for obligation upon receipt of the allotment (Obligation Authority “Generated” based on receipt of Order). The Automatic Reimbursement is controlled at the installation level. The ARA appears on the RDD in a footnote, and only approves the authority to engage in automatic reimbursement activities.

21. Administrative Limitations
Imposed on the Use of Funds
Specific Dollar Amounts
May be legal or regulatory
Types:
Ceiling
Floor
Target
Fence
Facilitator Note: Show Slide #21
Administrative Limitations.
Facilitator Note: Refer students to page 4, Para 7 (Limitations) of the Maintain Commitment & Obligation Records Handout.
c. Administrative Limitations. Appropriation managers and sponsors may establish administrative and statutory controls within appropriations. These controls help manage obligations and expenditures of funds. Examples are the ceilings, floors, targets and fences.
(1) Ceiling – is an upper limit (maximum) on the cumulative amount of funds which may be obligated for a specific purpose.
(2) Floor – is the lowest (minimum) limit of the amount of funds which must be obligated for a specific purpose. The most common floor is the Maintenance of Real Property Facilities (MRPF). Funding for floors not utilized is subject to withdrawal by higher command.
(3) Target – a prescribed goal used as a management tool to control resources, budgetary allowance that can be exceeded.
(4) Fence – is an administrative fiscal control measure which financial managers utilize to exert functional influence for a particular program. Basically it allows funds to be set aside for obligation only in a particular program and can only be used for the specific purpose intended.

22. FUNDING TARGET MEMORANDUM
AJKG-B October 20**
MEMORANDUM FOR Commander, 93rd Infantry Division, ATTN: Resource Management Officer
SUBJECT: First Quarter (FY**) Funding Target
1. FUNCTIONAL AREA: QLOG FAHB
FUNDS CENTER/ COST CENTER: A2ABN2ABN A2ACN2ACN00
DODAAC: ZAAHA Z16CO
Direct Obligation (Initial)
a. Quarter $ 590, $260,000.00
b. Annual $2,400, $985,000.00
Notes:
Funded Reimbursement Authority (FRA) – Not Authorized
Automatic Reimbursement Authority (ARA) – Authorized based on receipt of orders.
a QLOG (A2ABN2ABN00)
COST ELEMENT/ COMMITMENT ITEM QTR ANNUAL
$ 90, $980,000.00
, ,200,000.00
$200, ,000.00
$590, $2,200,000.00
b FAHB0 (A2ACN2ACN00)
COST ELEMENT/ COMMITMENT ITEM QTR ANNUAL
$100, $400,000.00
, ,000.00
, ,000.00
$147, $985,000.00
Facilitator Note: Show Slide #22
Funding Target Memorandum
Facilitator Note: Refer students to page 6 (Example of a Funding Target Memorandum) of the Maintain Commitment & Obligation Records Handout. Tell Students they make take notes on their handout example of the form as we go over it.
d. The Funding Target Memorandum can be used by activities to further distribute funds to their subordinate units. The funding target memorandum is sent down quarterly by Funds Center/Cost Center and Cost Element/Commitment Item
MEMORANDUM FOR: This line shows the activity for which the funds have been made available.
Facilitator Note: Ask Students:
Question: What organization will be utilizing the Funding Target Memorandum shown on the slide?
Answer: (93rd Infantry Division ATTN: Resource Management)
The subject area show the quarter that the funds are available.
What is the quarter of availability for the funding target memorandum? (First Quarter)
Paragraph 1: Lists the Functional Area, Funds Center/Cost Center, and Department of Defense Activity Address Code (DODAAC) in which the funds were made available for.
Facilitator Note: Ask students the following questions.
What are the two Functional Areas on this Memo?
(131096QLOG and FAHB)
What are the two Funds Center/Cost Center?
(A2ABN2ABN00 and A2ACN2ACN00).
Paragraph 2: Displays the quarterly and annual funding targets for the Direct Obligation.
- If FRA funds were available they would be included in the next paragraph, in the same format as the Direct Obligation. In this situation there are no FRA funds available.
Ask students: The Quarterly/Annual amounts for each Funds Center/Cost Center.
Fund Center/Cost Center A2ABN2ABN00 = quarterly amount is $590,000 the annual amount is $2,400, 000
Fund Center/Cost Center A2ACN2ACN00 = quarterly amount is $250,000 the annual amount is $985, 000
Paragraph 3: The Notes inform us of the funds that are not authorized and our Automatic Reimbursement Authority (ARA). It also gives guidance on the use of funds from the higher command.
Paragraph 4: For each Functional Area and Funds Center/Cost Center the funds available for each Cost Element/Commitment Item are listed by quarterly and annual target. The totals are also listed on the funding target memorandum.
Facilitator Note: Show students the different Cost Element/Commitment Item for each Functional Area with the Quarter and Annual Amounts.
Facilitator Note: Refer students to page 8 and 9. (Funding Allowance Document, funding document) of the Maintain Commitment & Obligation Records Handout. Tell Students they may take notes on their handout example of the form as we go over it.
e. The Funding Allowance Document (funding document) contains five sections on the funding document:
HEADING - Administrative Data
SECTION A - Annual Funding Information
SECTION B - Quarterly Funding Information
SECTION C - Limitations Ceiling/Floors
SECTION D - Management Information

23. RESOURCE DISTRIBUTION DOCUMENT (RDD)
REPLY TO ATTENTION OF: JJSU OCT **
MEMORANDUM FOR DISBURSING OFFICE
SUBJECT: RESOURCE DISTRIBUTION DOCUMENT (RDD)
1. FORWARD HEREWITH IS THE INITIAL FY ** funding document RECEIVED FROM HSC.
2. DIRECT OBLIGATION AUTHORITY (DOA).
FUNDS CENTER/ COST CENTER FUNCTIONAL AREA st QTR ANNUAL
A2ABN2ABN QLOG , ,000
A2ABN2ABN QLOG , ,000
A2ABN2ABN QLOG , ,000
A2ABN2ABN QLOG , ,000
A2ABN2ABN QLOG , ,000
A2ABN2ABN QLOG 25, ,000
A2ABN2ABN QLOG , ,000
A2ABN2ABN QLOG , ,000
A2ABN2ABN QLOG 90, ,000
A2ABN2ABN QLOG 28, ,000
TOTAL: ********** MISSION $528, $2,021,000
3. AUTOMATIC REIMBUSEMENT PROGRAM (ARP).
FUNDS CENTER / COST CENTER FUNCTIONAL AREA 1ST QTR ANNUAL
A2ACC2ACC VPUB 13, ,000
A2ACC2ACC VPUB 12, ,000
A2ACC2ACC VPUB 5, ,000
4. TOTAL AUTOMATIC REIMBUSEMENT CEILING: $30, $120,000
/S/
TYRONE FOLSOM
LTC, MSC
COMPTROLLER
Facilitator Note: Show Slide #23
Facilitator Note: Refer students to page 10, Resource Distribution Document (RDD) of the Maintain Commitment & Obligation Records Handout.
Show students the Total Automatic Reimbursement Ceiling Amounts.
Facilitator Note: Ask Students to give you the Annual/1st Quarter amounts for a couple of the Funds Center/Cost Center.
e. Resource Distribution Document (RDD) is an informal funding document used by Headquarter to provide funding to a subordinate budget holder. It is the further breakdown of the funding document by APC.
(1) Line 1 – Show you the fiscal year that the funding document was received.
(2) Line 2 – This is the break down of the DOA and FRA by fund center/cost center, functional area with the amounts available for the current quarter and annually.
(3) Line 3 – This is the Automatic Reimbursement Program (ARP) and shows the fund center/cost center, functional area with the current quarter and annual amounts.
Facilitator Note: Refer students to page 11, Example of a Fund Control Record. This information is completed manually, unless the unit assigned has established a SOP.

24. Funding Document GFEBS
12/16/ Dynamic List Display
Entry Document
Document / Posted FM Area ARMY
Process Transfer Total Sender ,000, USD
Total Receiver ,000,000.00
Value Type Budget Budget Category Payment
Version Fiscal Year
Document Type ALT Document Date 10/01/2011
Posting Date /01/2011
Responsible JOHN SMITH
Created by
Created on /02/2011
Created at :53:47
|Line |-/+| Fund | Funds Ctr |Cmmt Item| F.Ar |Funded Prg|Type| Amount (USD)| Amount (USD)|LC|DK |Text |Add.Line|
| | - | D12| A2ABB | ALLOBJ |ARMY|ARMY |4611| 20,000, | 20,000, | USD |0|
| |+ | D12| A2ABM| ALLOBJ |ARMY|ARMY |4611| 20,000, | 20,000, | USD |0 |
| | - | D12| A2ABB| BUDRES |ARMY|ARMY |4580| 20,000, | 20,000, | USD |0 |ADD. LINE |X|
| |+ | D12| A2ABM| BUDRES |ARMY|ARMY |4580| 20,000, | 20,000, | USD |0 |ADD. LINE |X|
Facilitator Note: Show Slide #24
Instructor will show how the funding document appears in GFEBS.

25. Check On Learning Facilitator Note: Show Slide #25
Conduct a check on learning and summarize the learning activity.
Q: What funding authorization is used for a specific amount and for unit activities only and the funds are immediately available?
A: DOA
Q: Where on the RDD can you find an Automatic Reimbursement Authority (ARA)?
A: In the footnotes.
Q: What funding authorization is found in the footnote?
A: ARA
Q: What are the four limitations?
A: Ceiling, Floor, Target and Fence.
4. Learning Step / Activity 4. Practical Exercise
Method of Instruction: Practical Exercise (Performance)
Facilitator Note: Conduct a check on learning and summarize the learning activity.
SUMMARY: During this lesson we discussed the methods of funding, whether it was formal or an informal distribution of funds. We also discussed the DOA, FRA, ARA, the administrative limitations: ceilings, floors, targets and fences. We went through an example of a Funding Target Memo and Funding Allowance Document showing what we are looking at on each of them. We also know what the Resource Distribution Document looks like and the purpose of them.
5. Learning Step / Activity 5. Test
Method of Instruction: Test
Time of Instruction: 1 hr 30 mins hrs
Media: Individualized, self-paced Instruction
  Facilitator Note: Conduct a check on learning and summarize the learning activity.
6. Learning Step / Activity 6. Test Review
Time of Instruction: 2.0 hr
Media: Large Group Instruction

26. Terminal Learning Objective
Action: Maintain Commitment and Obligation Records
Condition: Given access to DFAS-IN Regulation 37-1, DoDFMR Volume 3 (Chapters 8 & 15) and DoDFMR Volume 14; standard office supplies and equipment, and awareness of Operational Environment (OE) variables and actors.
Standard: Identify stages of expenditure transactions, identify the flow and receipt of funds, and maintain commitment and obligation records with a minimum of 75% accuracy.
Facilitator Note: Show Slide #26
Summarize and restate the Terminal Learning Objective.
SECTION IV. SUMMARY
Method of Instruction: Conference / Discussion
Instructor to Student Ratio is: 1:25
Time of Instruction: 5 minutes
Media: Large Group Instruction
Action: Maintain Commitment and Obligation Records
Condition: Given fund control records, fund allowance documents and/or resource distribution documents, and commitment documents; access to DFAS-IN Regulation 37-1, DoDFMR Volume 3 (Chapters 8 & 15) and DoDFMR Volume 14; standard office supplies and equipment, and awareness of Operational Environment (OE) variables and actors.
Standard: Identify stages of expenditure transactions, identify the flow & receipt of funds, and maintain commitment and obligation records. Student must score a minimum of 75% on a written exam to pass.
Summary: During this lesson we discussed the 6 Stages of an Expenditure Accounting Transaction which are Authority Received/Funding, Commitment, Obligation, Accrued Expenditure, Expense and Disbursement.