1. Manage A Unit Budget Show Slide 1: Manage a Unit Budget
Title: Manage a Unit Budget
References: AR 1-1, Planning, Programming, Budgeting and Execution System, FM 1-6, Financial Management Operations, and DFAS-IN , Defense Finance and Accounting Service IN.
Section I. Administrative Data
Academic Hours/Methods
02 hrs. / 35 min. DSL (large or small group discussion)
00 hrs. / 15 min. PE (practical exercise (Hands On)
00 hrs. / 00 min. Test
00 hrs. / 00 min. Test Review
00 hrs. / 00 min. Total Hours
Section II. Introduction:
Method of Instruction: DSL (large or small group discussion)
Facilitator's to Learner Ratio: 1:30
Time of Instruction: 00 hrs. / 05 min.
Media: PowerPoint Presentation
Facilitator's Material: Each primary Facilitator should possess a lesson plan, slide deck, course handouts, and practical exercise with answer key, and summary sheet containing AR 1-1, FM 1-6, and DFAS-IN
Learner’s Material: Learners should possess course handouts, practical exercises, summary sheet containing AR 1-1, FM 1-6, and DFAS-IN with access to Bb and standard classroom supplies.
Facilitator's Note: "All required references and technical manuals will be provided by the School House“
Motivator (Concrete Experience): Budgeting is a way in which businesses plan for the future. They show how policies are to be carried out during that time period in order to meet the business objectives. Budgets not only help the business plan for the future they also motivate their employees and help manage the business. Jae K Shim and Joel G Sigel define budgeting as a 'financial plan to control future operations and results. It is expressed in numbers, such as dollars, hours and so on. Budgeting when used effectively is a technique resulting in systematic production management. Budgeting facilitates control, communication and also provides motivation to employees.'

2. Terminal Learning Objective
Action: Manage a Unit 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 (70% for International Learners):
Interpret the received budget guidance
Determine total requirements by Elements of Resource (EOR)
Determine the financed requirements
Prioritize Unfinanced Requirements (UFRs) and decrements
Determine phases for Budget Plan
Prepare supporting schedules and list
Execute daily transactions
Prepare daily status of funds
Show Slide 2: Terminal Learning Objective
Facilitator Note: Read/State the TLO
Action: Manage a Unit 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 (70% for International Learners):
Interpret the received budget guidance
Determine total requirements by Elements of Resource (EOR)
Determine the financed requirements
Prioritize Unfinanced Requirements (UFRs) and decrements
Determine phases for Budget Plan
Prepare supporting schedules and list
Execute daily transactions
Prepare daily status of funds
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 FM Environmental Considerations and GTA ENVIRONMENTAL-RELATED RISK ASSESSMENT.
 Evaluation Requirements: There will be no exam with this lesson.
Instructional Lead-In: This lesson provides you with the necessary skills to work through the budget preparation process. It provides you with the tools to make management decisions (e.g., which requirements receive funding and what to do with the remaining unfunded requirements).
Facilitator's Note: The critical portion of this part of the Manage a Unit Budget lesson is to force the learners to reflect. As the facilitator you can achieve this by asking a series of thought influencing questions, for example:
Your past experience, or theirs and how could it relate to this lesson.
How did it make the learners feel about the personal experiences mentioned that might be taken to alleviate in learning the content(s).
What did you see or hear that makes the learners relate to the discussions being held.

3. Budgeting Process Receive guidance.
Determine total requirements by EOR.
Determine financed requirements.
Prioritize unfinanced requirements and develop decrement list.
Phasing.
Prepare supporting schedules.
Forward the activity budget
Execute daily transactions
Show Slide 3: Budgeting Process
1. Learning Step / Activity 1. Interpret the Received Budget Guidance
Method of Instruction: DSL (large or small group discussion)
Facilitator's to Learner Ratio: 1:30
Time of Instruction: 00 hrs. / 20 min.
Media: PowerPoint Presentation, 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: There are many ways to describe and explain the high-low method and calculation for fixed and variable cost components. 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.
#1. Character and accountability
#3. Adaptability and initiative
#5. Teamwork and collaboration
#6. Communication and engagement (oral, written, and negotiation)
#7. Critical thinking and problem solving
#9. Tactical and technical competence (full spectrum capable)
Facilitator's Note: Transition into lesson with covering the following six steps in the budgeting process.
Step 1: Analyze the budget guidance
a. There are eight steps in the budgeting process:
Receive guidance.
Determine total requirements by EOR.
Determine financed requirements.
Prioritize unfinanced requirements and develop decrement list.
Phasing.
Prepare supporting schedules.
Forward the activity budget
Execute daily transactions

4. Step 1: Analyze the Budget Guidance
Dollar Guidance
Manpower Guidance
Workload Guidance
Administrative Guidance
Show Slide 4: Step 1: Analyze the Budget Guidance
Facilitator’s Note: Inform Learners that we will cover and talk about the steps taken by the Activity Chief in formulating the budget.
b. 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.
Note: The Director of Resource Management (DRM)/G8 sends guidance to their subordinate activities
c. Contains four types of guidance:
1. Dollar Guidance.
2. Manpower Guidance.
3. Workload Guidance.
4. Administrative Guidance.

5. 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 5: Dollar Guidance
Facilitator’s Note: On this slide and the beginning of the next few slides dealing with guidance, first have the learners read them, then have different learners give their interpretations based on past experiences they may have encountered dealing with the topic.
d. 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.

6. Manpower Guidance
Limitations on number, grade, and type of personnel authorized.
Military labor expense is not budgeted by the installation.
Show Slide 6: Manpower Guidance
e. 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.
Limitations
Labor Expense

7. Workload Guidance
Estimate of the amount of work performance expected by the installation, major activities, and activities.
Show Slide 7: Workload Guidance
f. 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 students you teach in the next fiscal year. Another example is how many Bradley Fighting Vehicles you overhaul in your Armor Division motor pool.
Estimate
Amount
Performance
Installation
Major activities

8. Administrative Guidance
Budget format.
Rounding instructions.
Special schedule preparations.
Other administrative guidance.
Show Slide 8: Administrative Guidance
g. Administrative Guidance, this guidance describes the budget format, rounding instructions, special schedule preparations, and other administrative guidance.
Budget format.
Rounding instructions.
Special schedule preparations.
Other administrative guidance.

9. LSA #1 Check On Learning
Q1: To analyze the budget guidance, you’ll need all of the below except which one? 1. Interpret the administrative guidance.. 2. Interpret the dollar guidance. 3. Determine which requirements can be financed.. 4. Receive budget guidance from higher headquarters. Q2: What are the four types of guidance received in the Budget Manpower Guidance? A2: Dollar, Manpower, Workload and Administrative.
Show Slide 9: LSA #1 Check on Learning
Facilitator's Note: Ask the following check on learning questions, facilitate discussion on answers given.
Q1: To analyze the budget guidance, you’ll need all of the below except which one?
Interpret the administrative guidance.
Interpret the dollar guidance.
Determine which requirements can be financed.
Receive budget guidance from higher headquarters.
Q2: What are the four types of guidance received in the Budget Manpower Guidance?
A2: Dollar, Manpower, Workload and Administrative.

10. LSA #1 Summary Show Slide 10: LSA #1 Summary
Facilitator's Note: In this lesson, we analyze the budget guidance, had discussions about the budget guidance from higher headquarters, the two different types of invoices, and interpretation of the dollar and administrative guidance.
“Or”
Facilitator, have each group as a group write down one major main lesson learnt from this LSA, allow a few minutes for them to interact. Once all groups have their one major learnt lesson written, pass it to another group to compare their answer. Facilitate a discussion on each major learnt lesson mentioned by each group.

11. Step 2: Determine Total Requirements by EOR
(Element of Resource)
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 11: Step 2: Determine Total Requirements by EOR
2. Learning Step / Activity 2. Determine Total Requirements by Elements of Resource (EOR)
Method of Instruction: DSL (large or small group discussion)
Facilitator's to Learner Ratio: 1:30
Time of Instruction: 00 hrs. / 20 min.
Media: PowerPoint Presentation, Printed Reference Material
Step 2: Determine the total estimated dollar requirement by Elements of Resource (EOR) /Commitment Item
a. 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 Element of Resource (EOR).
b. Of the many EORs, the following provide a representative sampling of the costs usually incurred within installation activities and the basis for determining those costs:
1. 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.
2. Related Civilian Personnel Benefits (1200) - Includes government contributions to retirement, insurance, etc. The computation is by multiplying the total for EOR 1100 by a given percentage in the guidance distributed. For example - $220,000 x 15% = $33,000.
3. 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.
4. 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 EOR 2500 is based on historical data plus known changes. Determine if cost savings can be achieved through adjusting contracts. Determine if economies of scale/scope can be achieved by combining like contracts (i.e. consolidating subordinates latrine contracts). Determine if contract can be re-competed on an option year. Determine if any other efficiencies can be achieved.
 5. 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 EOR 2600 is based on work load, seasonal requirements, historical data plus projected changes (i.e. inflation).
6. Non-consumable Supplies, Equipment (3100) - An equipment replacement schedule indicating the original issue date and the expected life of the individual items. Computation for EOR 3100 is based on required replacement of equipment and new equipment.
7. Other factors to keep track of for determining the total estimated dollar requirement by EOR /Commitment Item are the following.
Review the manpower guidance to ensure the limitations are not exceeded.
Determine the total estimated civilian labor cost.
Determine each individual's total salary by using civilian pay salary charts.
Compute the total cost by adding each individual's total salary.
Determine the personnel benefits compensation percentage provided from the manpower guidance.
Determine the total cost by multiplying the total civilian labor costs (EOR/Commitment Item 1100) estimated by the designated percentage.
The number of personnel required for each TDY.
Determine if any other funds can be used for the TDY (i.e., host nation support, Assistance in Kind, etc).
Analyze the cost of each TDY based on the consolidated list to:
Confirm if government meals or lodging is available or directed for the TDY location.
Confirm the per diem rate for the TDY location.
Confirm estimated travel expenses based on the mode of transportation to be used.
Confirm if any miscellaneous expenses will be authorized (e.g., conference fees).
Enter each total estimated cost on the schedule.
Determine the total cost by totaling each estimated TDY cost.
Delete any contracts that will be completed before the start of the new FY.
Determine the cost of all current contracts by referring to the contractual agreements.
Determine the total contractual services cost by adding the cost of all current contracts to the estimated cost of all new contracts expected or proposed.
Determine if any of the equipment scheduled to be replaced during the FY is still required based upon mission requirements.
Determine the cost of replacing any equipment required for mission requirements.
Determine the cost of any new equipment required based upon mission requirements.
Determine the total non-consumable supplies and equipment cost by totaling the cost of all new and replacement equipment.

12. Elements of Resource
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 12: Elements of Resource
Facilitator’s Note: Inform Learners that these are just some examples of EOR’s displayed on the slide. Facilitate discussion with a few of them as examples the learners may have recently experienced.
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

13. Two Methods to Determine EOR 1100
Salary Table Method.
Average Method.
Show Slide 13: Two Methods to Determine EOR 1100
c. 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 also the most time consuming. The average method is not as accurate but it takes less time. An example of each method is on the next two slides.
Salary Table Method.
Average Method.

14. Salary Table Method TDA JOB HR ANN LINE/PARA TITLE SERIES GRADE STEP
RATE
010A 00
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 14: Salary Table Method
d. 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.
Facilitator’s Note: Ask Learners what is wrong with this chart? See if they were able to identify that the two soldiers should not be included in the chart, military are budgeted centrally.
TDA Line/Para
Job Title
Series
Grade
Step
Hr. Rate
Ann. Rate

15. Average Method Current year EOR costs: $240,000
Divided by the number of employees 12
Equals average cost per employee
$ 20,000
Budget year cost estimate for EOR 1100:
11 Employees times average cost
Equals
$220,000
Estimated base pay cost used for budget
Estimated premium pay would be added
Show Slide 15: Average Method
e. 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.
Current year EOR costs: $240,000
Divided by the number of employees
Equals average cost per employee $20,000
Budget year cost estimate for EOR 1100:
11 Employees times average cost Equals $220,000
Estimated base pay cost used for budget
Estimated premium pay would be added
Facilitator’s Note: Inform learners that the average method is not as accurate as the salary table method but quicker.

16. Computation of EOR 1200, Personnel Benefits
Base pay times (x) a stated percentage.
Example:
$220,000 X 15% = $33,000.
Show Slide 16: Computation of EOR 1200, Personnel Benefits.
f. Computation of EOR Civilian Personnel Benefits (1200) – Includes government contributions to retirement, insurance, etc. The computation is done by multiplying the total for EOR 1100 by a given percentage in the guidance distributed.
Example: $220,000 x 15% = $33,000. (Base pay times (x) a stated percentage)

17. Computation of EOR 2100, Travel of Persons - TDY
To determine the total costs for EOR 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 17: Computation of EOR 2100, Travel of Persons – TDY
g. Computation of EOR 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 the following link, We provide these rates in class for all practical exercises and tests.
Number of personnel traveling.
Place traveling to (per diem rate).
Number of days TDY.
Estimated cost of travel (airfare, POV...).

18. Computation of Other EORs
Base figures on historical data plus known changes for EORs: Rent, Utilities, Communication Printing, Reproduction Contracts Supplies and Materials 3100 – Non-consumable supplies
Show Slide 18: Computation of Other EORs.
h. Computation of EOR 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).
i. Computation of EOR 2400 – Printing and Reproduction. Use historical data plus known changes (i.e., increase in mission workload).
j. Computation of EOR 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.
Note: Computation for EOR 2500 is based on historical data plus known changes (i.e., new scheduled construction and/or repairs).
Rent, Utilities, Communication
Printing, Reproduction
Contracts
Supplies and Materials
3100 – Non-consumable supplies

19. Computation of EOR 2600, Supplies and Materials and 3100, Non-consumable supplies
Base on work load, seasonal requirements, and historical data.
Show Slide 19: Computation of EOR 2600, Supplies and Materials and 3100, Non-consumable Supplies
k. Computation of EOR 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 EOR 2600 is based on work load, seasonal requirements, historical data plus projected changes (i.e., inflation).
l. Computation of EOR 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 EOR 3100 is based on required replacement of equipment and new equipment.

20. LSA #2 Check On Learning
Q1: What is the dollar amount of EOR 1100 if there are 10 civilian employees and the average salary is $25,000? A1: $250,000 Q2: What is the 3rd quarter phasing amounts of EOR 1100 total amount of $250,000 if the phasing plan is: 1st qtr = 25%, 2nd qtr = 49.6%, 3rd qtr = 74.6%, and 4th qtr = 100%? A2: $186,500
Show Slide 20: LSA #2 Check on Learning
Facilitator's Note: Ask the following check on learning questions, facilitate discussion on answers given.
Q1: What is the dollar amount of EOR 1100 if there are 10 civilian employees and the average salary is $25,000?
A1: $250,000
Q2: What is the 3rd quarter phasing amounts of EOR 1100 total amount of $250,000 if the phasing plan is: 1st qtr = 25%, 2nd qtr = 49.6%, 3rd qtr = 74.6%, and 4th qtr = 100%?
A2: $186,500

21. LSA #2 Summary Show Slide 21: LSA #2 Summary
Facilitator's Note: In this lesson, we identified and had discussion about the total estimated dollar requirement by Elements of Resource (EOR) /Commitment items, estimated civilian labor, personnel benefits and temp TDY and contractual services cost.
“Or”
Facilitator, have each group as a group write down one major main lesson learnt from this LSA, allow a few minutes for them to interact. Once all groups have their one major learnt lesson written, pass it to another group to compare their answer. Facilitate a discussion on each major learnt lesson mentioned by each group.

22. 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 22: Step 3: Determine the Financed Requirements
3. Learning Step / Activity 3. Determine the Financed Requirements
Method of Instruction: DSL (large or small group discussion)
Facilitator's to Learner Ratio: 1:30
Time of Instruction: 00 hrs. / 15 min.
Media: PowerPoint Presentation, Printed Reference Material
Step 3: Determine which requirements can be financed
a. Step 3 – Determine the Financed Requirements. The Activity Chief determines which of the above EOR 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.
Facilitator’s Note: A recommendation on how to prioritize requirements is as follows.
1. 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 MACOM, the Installation Commander and the MAD.
2. Mission essential requirements – operational requirements effecting readiness and/or the support base.
3. New initiatives are examined to determine priority.
4. Less important requirement that improve the mission but are not essential.

23. When Determining Financed Requirements
Is this subjective?
Who acts as the honest broker?
Show Slide 23: When Determining Financed Requirements
Facilitator’s Note: Continuation from how to prioritize requirements.
5. 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. Finance the highest priorities based on commanders guidance up to the dollar guidance received.
Is this subjective?
Who acts as the honest broker?
DRM

24. LSA #3 Check On Learning True or False:
Q1: Statutory requirements are requirements which must be accomplished in compliance with federal or other laws.
A1: True
Q2: Higher directed requirements are priorities established by the MACOM, the Installation Commander and the MAD
A2: True
Show Slide 24: LSA #3 Check on Learning
Facilitator's Note: Ask the following check on learning questions, facilitate discussion on answers given.
True or False:
Q1: Statutory requirements are requirements which must be accomplished in compliance with federal or other laws.
A1: True
Q2: Higher directed requirements are priorities established by the MACOM, the Installation Commander and the MAD
A2: True

25. LSA #3 Summary Show Slide 25: LSA #3 Summary
Facilitator's Note: In this lesson, we identified and discussed which requirements can be financed, budget scheduling and financing the highest priorities.
“Or”
Facilitator, have each group as a group write down one major main lesson learnt from this LSA, allow a few minutes for them to interact. Once all groups have their one major learnt lesson written, pass it to another group to compare their answer. Facilitate a discussion on each major learnt lesson mentioned by each group.

26. 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 26: Step 4: Prioritize Requirements.
4. Learning Step / Activity 4. Prioritize Unfinanced Requirements (UFRs) and Decrements
Method of Instruction: DSL (large or small group discussion)
Facilitator's to Learner Ratio: 1:30
Time of Instruction: 00 hrs. / 20 min.
Media: PowerPoint Presentation, Printed Reference Material
Step 4: Establish priorities of unfinanced requirements (UFRs) and decrements
Facilitator’s Note: Have learners read the slide and have them have small discussions after each bullet.
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.

27. 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 27: Guidance $$ vs. Total Requirements.
a. Guidance $$$$ vs. Total Requirements – The relationship between total requirements, dollar guidance (financed requirements) and unfinanced requirements (UFRs):
Total Requirements
- $$ Guidance (financed requirements)
________________________________
= UFRs = Funding Shortfall = Less Important Remaining Requirements.
b. If you have $100, in requirements and receive $70,000.00, then you have a $30, funding shortfall. This is your UFR list.

28. 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 28: Unfinanced Requirements (UFR) List
c. 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.
Determine which requirements were “not financed” when you were determining which requirements were able to be financed previously.
d. UFRs Priority List is sequenced from most import 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.
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.

29. 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 29: Decrement List
e. Decrement List – 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:
Note, least important to most important.
f. The size (total dollar amount) of this list is usually a stated percentage of the financed requirements and varies according to local directives.
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.

30. 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 30: Decrement List and UFR List Relationship
g. 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 the size (total dollar amount) of this list 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.

31. 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 31: Considerations When Developing UFRs and Decrement Lists
h. 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.

32. LSA #4 Check On Learning
Q1: What is the priority of items on a UFRs list? A1: From most important to least important. Q2: What is the priority of items on a decrement list? A2: Least important to most important. Q3: How are the UFRs and decrement lists interrelated? A3: They both change if the funding level changes.
Show Slide 32: LSA #4 Check on Learning
Facilitator's Note: Ask the following check on learning questions, facilitate discussion on answers given.
Q1: What is the priority of items on a UFRs list?
A1: From most important to least important.
Q2: What is the priority of items on a decrement list?
A2: Least important to most important.
Q3: How are the UFRs and decrement lists interrelated?
A3: They both change if the funding level changes.

33. LSA #4 Summary Show Slide 33: LSA #4 Summary
Facilitator's Note: In this lesson, we identified and discussed the priorities of unfinanced requirements (UFRs) and decrements, determining the requirements, prioritizing the list, impact statements using quantitative data.
“Or”
Facilitator, have each group as a group write down one major main lesson learnt from this LSA, allow a few minutes for them to interact. Once all groups have their one major learnt lesson written, pass it to another group to compare their answer. Facilitate a discussion on each major learnt lesson mentioned by each group.

34. 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 34: Step 5: Phasing
5. Learning Step / Activity 5. Determine Phases for Budget Plan
Method of Instruction: DSL (large or small group discussion)
Facilitator's to Learner Ratio: 1:30
Time of Instruction: 00 hrs. / 20 min.
Media: PowerPoint Presentation, Printed Reference Material
Step 5: Phase the budget plan
a. Purpose of Phasing.
1. Phasing – Cost distribution by fiscal quarter is called phasing. Phasing is required for inclusion in the CBE. Each EOR is phased into quarterly increments according to the estimated need for that quarter.   
2. How to phase financed requirements. Phasing financed requirements are accomplished by a cumulative method. Acceptable methods normally used for quarterly phasing of costs by EOR are as follows:

35. Phasing EOR 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 35: Phasing EOR 1100 and 1200
Facilitator’s Note: Ask the learners about their experiences dealing with civilian labor in their area of operations.
b. 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).

36. Civilians Paid for 260 Days per Year
1ST
2ND
3RD
4TH
QTR
QTR
QTR
QTR
TOTAL
DAYS 65 64 65 66
260
Show Slide 36: Civilians Paid for 260 Days per Year
Facilitator’s Note: Walk learners step by step through the numbers and equations.
c. Related Personnel Civilian Benefits (1200) – same as EOR 1100.
# Days: 1st Qtr. (65) - 2nd Qtr. (64) - 3rd Qtr. (65) - 4thQtr. (66) - Total (260)
% Cum: (25%) (49.6%) (74.6%) (100%) (100%)
% CUM
25%
49.6%
74.6%
100%
100%

37. Phasing EOR 2100, TDY
Based on when travel is scheduled to begin according to the information submitted by the activity chief.
Show Slide 37: Phasing EOR 2100, TDY
Facilitator’s Note: Have learners study the slides info before asking the below questions.
d. TDY and Travel of Personnel (2100) – based on when travel is scheduled to begin. For 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.

38. Phasing EOR 2500, Other Contracts
Phase based on the contractual requirements for the payment.
Show Slide 38: Phasing EOR 2500, Other Contracts
e. 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).

39. Phasing EOR 2600, Supplies Can be phased different ways, such as:
Productive (work) days.
Workload.
Calendar days.
Show Slide 39: Phasing EOR 2600, Supplies
f. Supplies and Materials (2600) – are based on different ways such as productive days, workload, or calendar days.
Two points to keep track of for EOR/Commitment Item 2600 are the following.
Increase a quarterly amount if it is a historically heavy usage period.
Decrease a quarterly amount if it is a historically low usage period.

40. Productive Days ROUND TO THE NEAREST 10 Show Slide 40: Productive Days
Facilitator’s Note: Be sure to round to the nearest tenth.
Productive days – are paid days minus leave and holidays per quarter.
QUARTER 1ST 2ND 3RD 4TH
222.5 PROD DAY
% CUM
$44, ,090 21,470 32,650 44,000

41. Workload Historical/ Seasonal Data
Show Slide 41: Workload Historical/ Seasonal Data
Facilitator’s Note: Walk learners step by step through the numbers and equations.
Workload – based on historical and seasonal data. For example: if there is more work projected in the first quarter then phase more supplies to support the workload.
QUARTER 1ST 2ND 3RD 4TH
% CUM 30% 45% 80% 100%
$44, ,200 19,800 35,200 44,000

42. Phasing EOR 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 42: Phasing EOR 3100, Equipment
g. 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.
Prepare a phasing report by EOR/Commitment Item based on funding guidance (i.e. monthly or quarterly).

43. LSA #5 Check On Learning
Q1: How is a service contract phased? A1: Evenly throughout the year (25%, 50%, 75%, and 100%). True or False? Q2: Supplies and Materials (2600) – are based on different ways such as productive days, workload, or calendar days. A2: True Q3: Workload – based on historical and seasonal data. A3: True
Show Slide 43: LSA #5 Check on Learning
Facilitator's Note: Ask the following check on learning questions, facilitate discussion on answers given.
Q1: How is a service contract phased?
A1: Evenly throughout the year (25%, 50%, 75%, and 100%).
True or False?
Q2: Supplies and Materials (2600) – are based on different ways such as productive days, workload, or calendar days.
A2: True
Q3: Workload – based on historical and seasonal data.
A3: True

44. LSA #5 Summary Show Slide 44: LSA #5 Summary
Facilitator's Note: In this lesson, we identified and discussed budget plan phase, civilian labor cost, TDY cost, contractual services, supplies and material cost We further discussed the increase and decrease quarterly amount for heavy and low historic usage. Plus no-consumable supplies and equipment cost.
“Or”
Facilitator, have each group as a group write down one major main lesson learnt from this LSA, allow a few minutes for them to interact. Once all groups have their one major learnt lesson written, pass it to another group to compare their answer. Facilitate a discussion on each major learnt lesson mentioned by each group.

45. Step 6: Prepare Supporting Schedules
Activity budget schedule.
UFR lists.
Decrement lists.
Contracts.
Supply requirements schedules
Phasing.
Show Slide 45: Step 6: Prepare Supporting Schedules
6. Learning Step / Activity 6. Prepare Supporting Schedules and List
Method of Instruction: DSL (large or small group discussion)
Facilitator's to Learner Ratio: 1:30
Time of Instruction: 00 hrs. / 10 min.
Media: PowerPoint Presentation, Printed Reference Material
Step 6: Forward the activity budget to the higher headquarters
a. Prepare Supporting Schedules. There are schedules the activity chief should prepare as part of the activity budget to forward to the MAD.
Note: The activity chief completes the following and forwards as indicated:
1. Activity Budget Schedule is sent to the MAD.
2. Unfinanced Requirements List is sent to the MAD.
3. Decrement List is sent to the MAD.
4. Schedule of Contracts is sent to the MAD.
5. Supply Requirements schedule is sent to the Material Category Manager.
6. Phasing report is sent to the MAD.

46. LSA #6 Check On Learning
True or False? Q1: Activity Chief prepares supporting schedules to forward to the MAD? A1: True Q2: These schedules are part of the activity budget. A2: True
Show Slide 46: LSA #6 Check on Learning
Facilitator's Note: Ask the following check on learning questions, facilitate discussion on answers given.
True or False?
Q1: Activity Chief prepares supporting schedules to forward to the MAD?
A1: True
Q2: These schedules are part of the activity budget.
A2: True

47. LSA #6 Summary Show Slide 47: LSA #6 Summary
Facilitator's Note: In this lesson, we identified and discussed about forward the activity budget to the higher headquarters, to include schedules and lists/reports.
“Or”
Facilitator, have each group as a group write down one major main lesson learnt from this LSA, allow a few minutes for them to interact. Once all groups have their one major learnt lesson written, pass it to another group to compare their answer. Facilitate a discussion on each major learnt lesson mentioned by each group.

48. Step 7: Execute Daily Transactions
Record Commitments.
Record Obligations IAW DFAS-IN FY.
Validate Disbursements.
Extract data in support of units PBAC.
Show Slide 48: Step 7: Execute Daily Transactions
7. Learning Step / Activity 7. Execute Daily Transactions
Method of Instruction: DSL (large or small group discussion)
Facilitator's to Learner Ratio: 1:30
Time of Instruction: 00 hrs. / 10 min.
Media: PowerPoint Presentation, Printed Reference Material
Step 7: Execute daily transactions
a. Record Commitments:
Ensure unit requirement is validated and approved.
Create the commitment based on the requirement.
Utilizing Funding documents (i.e. DA Form 3953)
Utilizing GFEBS/GCSS-A
b. Record Obligations IAW DFAS-IN FY:
Ensure obligation has occurred
Create the obligation based on the commitment and supporting documentation.
c. Validate Disbursements:
Utilizing disbursing documents (i.e. SF 1034)
d. Extract data in support of units PBAC:
Capture historical costs based on mission specific requirements (i.e. table gunnery, Readiness Exercises, etc.)
Apply trend analysis to determine future costs based on.
Note: Additional information on Steps in Consolidation of a Major Activity Budget (MAB)
The MAD receives and reviews the budgets from the activities for the following:
Accuracy – mathematical
Balance – between EORs
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. Also, the MAD may rewrite and reprioritize impact statements, UFRs list, and the decrement list. However, the MAAD 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 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.
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.
Facilitator’s Note: Inform learners to please note that when you try to move money, you always try to fix your problems in house so that your higher HQ won’t know. If you have to go higher such as the examples on written on the board, it’s a last resort. You better have a good reason to do it.

49. LSA #7 Check On Learning True or False?
Q1: When executing daily transactions, both recording commitments and obligations utilizes DA 3953 and GFEBS/GCSS-A.
A1: True
Q2: Accuracy, Balance, Completeness, and Validity is done by whom to received and reviewed budgets.
PBAC
MAB
MACOM, Installation G8
MAD
Show Slide 49: LSA #7 Check on Learning
Facilitator's Note: Ask the following check on learning questions, facilitate discussion on answers given.
Q1: When executing daily transactions, both recording commitments and obligations utilizes DA 3953 and GFEBS/GCSS-A.
A1: True
Q2: Accuracy, Balance, Completeness, and Validity is done by whom to received and reviewed budgets.
PBAC
MAB
MACOM, Installation G8
MAD

50. LSA #7 Summary Show Slide 50: LSA #7 Summary
Facilitator's Note: In this lesson, we identified and discussed to execute daily transactions, record commitments, obligations, to validate disbursements and extract data in support of units PBAC.
“Or”
Facilitator, have each group as a group write down one major main lesson learnt from this LSA, allow a few minutes for them to interact. Once all groups have their one major learnt lesson written, pass it to another group to compare their answer. Facilitate a discussion on each major learnt lesson mentioned by each group.

51. Step 8: Prepare a daily Status of Funds
Provide total commitments, obligations, and allotment by EOR/Commitment Item.
Compare obligations with the phasing report.
Analyze variances of the total obligations and phasing report.
Report variances of the total obligations and phasing report and provide supporting criteria to the higher funding authority (i.e. MACOM, Installation G8) to justify the variance.
Show Slide 51: Step 8: Prepare a Daily Status of Funds
8. Learning Step / Activity 8. Prepare Daily Status of Funds
Method of Instruction: DSL (large or small group discussion)
Facilitator's to Learner Ratio: 1:30
Time of Instruction: 00 hrs. / 10 min.
Media: PowerPoint Presentation, Printed Reference Material
Step 8: Prepare a daily status of funds
a. Provide total commitments, obligations, and allotment by EOR/Commitment Item.
Compare obligations with the phasing report.
Analyze variances of the total obligations and phasing report.
Report variances of the total obligations and phasing report and provide supporting criteria to the higher funding authority (i.e. MACOM, Installation G8) to justify the variance.

52. LSA #8 Check On Learning
True or False?
Q1: When you compare obligations with the phase report, you are preparing the daily status of funds.
A1: True.
Q2. Part of the preparation for a daily status of funds is reporting variances.
A2: True.
Show Slide 52: LSA #8 Check on Learning
Facilitator's Note: Ask the following check on learning questions, facilitate discussion on answers given.
True or False?
Q1: When you compare obligations with the phase report, you are preparing the daily status of funds.
A1: True.
Q2. Part of the preparation for a daily status of funds is reporting variances.
A2: True.

53. LSA #8 Summary Show Slide 53: LSA #8 Summary
Facilitator's Note: In the final lesson, we talked about preparing a daily status of funds, providing total commitments, obligations, and allotment by EOR. Compare obligations and phasing reports, analyze variances and report variances to higher funding authorities.
“Or”
Facilitator, have each group as a group write down one major main lesson learnt from this LSA, allow a few minutes for them to interact. Once all groups have their one major learnt lesson written, pass it to another group to compare their answer. Facilitate a discussion on each major learnt lesson mentioned by each group.

54. Practical Exercise Show Slide 54: Practical Exercise
Practical Exercise / Review: Manage a Unit Budget Practice Exercise #1
Method of Instruction: Practical Exercise
Facilitator to Learner Ratio: 1:30
Time of Instruction: 00 hrs. / 15 min.
Media: PowerPoint Presentation, Printed Reference Material, Practical Exercise
General Information: (Introduction / Objective) This practical exercise measures your ability to manage a budget by reviewing provided information and determining your total, finance and unfinanced requirements.
Special Instructions: This activity provides for the administration, operation, maintenance and promotion, at all levels of command, of an organized system for coordinating all available resources, both on and off post, that can alleviate social welfare problems which affect military and civilian personnel and their family members. In addition, it engages in community planning and provides a broad spectrum of direct services, information, and referral program, commercial affairs program, outreach program, handicapped assistance program, Army Child Advocacy program, and the volunteer program.
Note: Dollar guidance for this activity for the Budget Year (BY) is $84,270 in direct funds. Workload for the BY is a post population consisting of 7,000 active duty personnel and 20,000 family members.
Motivator: As mentioned at the beginning of this lesson, budgeting is a way in which businesses plan for the future. They show how policies are to be carried out during that time period in order to meet the business objectives. Budgets not only help the business plan for the future they also motivate their employees and help manage the business. Budgeting when used effectively is a technique resulting in systematic production management. Budgeting facilitates control, communication and also provides motivation to employees. This exercise will give you a good understanding of requirements for managing a budget.
Facilitator’s Material: Each primary facilitator should possess a lesson plan, course handouts, and practical exercises with answer keys, summary worksheet containing AR 1-1, FM 1-06, DFAS-IN REG and lesson created notes.
Learner’s Material: Learners should possess course handouts, practical exercise Manage A Unit Budget PE 1, summary worksheet containing AR 1-1, FM 1-06, DFAS-IN REG , and standard classroom supplies. 
Materials Needed:
Manage A Unit Budget Summary Sheet
Manage A Unit Budget Handout worksheet
Manage A Unit Budget PE 1
Calculator.
Classroom notes.
*Pen or Pencil.
*Blank Paper.
Note: (* Learner responsibility)
Procedures/Instructions:
Follow the step-by-step instructions on the pages in the PE and review packets for accuracy, make necessary adjustments, and certify payment vouchers.
You have 15 minutes to complete this exercise. You may take a break at any time, however, do not take the exercise materials out of the classroom.
All exercise requirements have only one correct entry. Make sure your answer is correct before going to the next exercise. If you find that you made a mistake or wish to change your answer, please do before turning in final product.
ALL WORK ON THIS EXERCISE MUST BE ON YOUR OWN. You may NOT communicate with other learners, have or receive assistance, or make a record of your answers anywhere but on your answer sheet. Failure to follow these instructions will result in the appropriate disciplinary action being taken.
Your facilitator will advise you what to do when you complete of this practice exercise.
If you experience difficulties, ask the Facilitator’s or assistant Facilitator’s for immediate assistance or help.
Review and notes will be conducted by your facilitator and posted in BB the following day
Instructional Lead-in: This exercise provides you with the necessary knowledge and skill to work through the budget preparation process. It provides you with the tools to make management decisions (e.g., which requirements receive funding and what to do with the remaining unfunded requirements).
Feedback: AAR will be conducted after the PE, along with a Learner end of course critique will be conducted at the end of the course.
Requirements:
Using the information in the PE, determine your financed requirements and list your requirements in EOR numerical sequence.
EOR 1100 Personnel Compensation.
EOR 1200 Personnel Benefits
EOR 2100 Transportation of Persons
EOR 2500 Contractual Services
EOR 2600 Consumable Supplies
EOR 3100 Equipment.
Director has given following instructions: Minimum, one person must attend each TDY trip, new laser-jet printer for the FSD office is essential to the mission.
Evaluation: This lesson will test your ability to properly manage a budget, research given information, and properly make inputs to obtain the necessary numbers and results. Learners must attain a “Go” on the practical exercise.
PE Solutions Manage a Unit Budge
Solution: Manage a Unit Budget PE1 Solution
Part 1: 
Total Requirement (A) $110,540
Total Requirements (A) $110,540
Dollar Guidance (1) $84,270
Remaining Requirements (C) $108,740
Part 2:
- Dollar Guidance (1) = (F) (84,270)
- Directed Requirements (B) (1,800)
- Total Directed RQTs (B) (1,800)
Net Available Funds (D) (82,470)
Part 3:
= Unfinanced RQTs (G) $26,270
= Remaining Requirements (C) $108,740
= Net Available Funds (D) $82,470
= Less Important Rmng RQTs(E) $26,270

55. TLO Check on Learning Show Slide 55: TLO Check on Learning
Facilitator’s Note: Facilitator's, have each group as a group write down one question from this lesson, give about five minutes. Once all groups have their question written, pass it to another group to answer it. Facilitate a discussion on each question.

56. TLO Summary Action: Manage a Unit 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 (70% for International Learners):
Interpret the received budget guidance
Determine total requirements by Elements of Resource (EOR)
Determine the financed requirements
Prioritize Unfinanced Requirements (UFRs) and decrements
Determine phases for Budget Plan
Prepare supporting schedules and list
Execute daily transactions
Prepare daily status of funds
Show Slide 56: TLO Summary
Facilitator’s Note: Read TLO
Action: Manage a Unit 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 (70% for International Learners):
Interpret the received budget guidance
Determine total requirements by Elements of Resource (EOR)
Determine the financed requirements
Prioritize Unfinanced Requirements (UFRs) and decrements
Determine phases for Budget Plan
Prepare supporting schedules and list
Execute daily transactions
Prepare daily status of funds
“Or”
Facilitator’s Note: During and throughout the lesson we taught you to identify what a budget is and how it is used, prepare an activity budget, Identify the Major Activity Director’s (MAD’s) decision authority in finalizing the major activity budget. Went over Budget Formulation, Receive, Budget and Manpower, Dollar, Manpower, Workload, and Administrative guidance's. We also discussed and went over Determining Total Requirements, Determine Financed Requirements, Establish Priorities of Unfinanced Requirements and Decrements. Phasing Civilian Labor (1100), Related Personnel Civilian Benefits (1200), TDY and Travel of Personnel (2100), Contractual Services (2500), Supplies and Materials (2600) - based on productive days, workload, calendar days plus Equipment. Concluding with a practical exercise on managing a unit budget for a Family Support Division.
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.