1. Identify the Funds Management Process
Show Slide 1, Funds Management
SECTION I. ADMINISTRATIVE DATA
Academic Hours / Methods
2 hrs / 10 min Large group Instruction
/ 40 min Practical Exercise (Hands On)
/ 0 min Test
/ 0 min Test Review
2 hrs / 50 min Total Hours
SECTION II. INTRODUCTION: Today we are Reviewing Funds Management
Method of Instruction. Conference / Discussion
Instructor to Student Ratio: 1:24
Time of Instruction 2 hrs 50 mins
Media: Large Group Instruction
Motivator: The Funds Management Process area incorporates both Budgeting and Funds Control / Distribution, for General Fund appropriations received by the Army. In GFEBS, Budgeting and Funds Control / Distribution occur in BI and ECC, respectively.
Student Materials:
DFAS-IN Manual , The Army Management Structure
DODFMR R, Vol 10, Department of Defense Financial Management Regulation
GFEBS Funds Distribution Excel Spreadsheet
Student Funds Management PowerPoint slides
Access to AFMS TED 357

2. Terminal Learning Objective
Action:
Identify the Funds Management Process
In a classroom environment using doctrinal and administrative publications, practical exercises, personal experience, handouts, discussion and access to GFEBS
With at least 80% accuracy, learners must demonstrate proficiency with:
Check funds management procedures
Recognize the funds distribution process
Conditions:
Show Slide 2, TLO
Action: Identify the Funds management Process
Conditions: In a classroom environment using doctrinal and administrative publications, practical exercises, personal experience, handouts, discussion and access to GFEBS.
Standards: With at least 80% accuracy, learners must demonstrate proficiency with:
Check funds management procedures
Recognize the funds distribution process
SAFETY REQUIREMENTS: In a training environment, leaders must perform a risk assessment in accordance with FM 5-19, Composite Risk Management. Leaders will complete a DA Form 7566 COMPOSITE RISK MANAGEMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations, (METT-TC). Note: During MOPP training, leaders must ensure personnel are monitored for potential heat injury. Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the MOPP work/rest cycles and water replacement guidelines IAW FM , NBC Protection, FM , CBRN Decontamination.
RISK ASSESSMENT LEVEL: Low
ENVIRONMENTAL STATEMENT: 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. You will be given an exam which will include Review Detailed Expenditure Accounting Documents. A passing score on this examination is 80% and for International Students (70%).
INSTRUCTIONAL LEAD IN: This GFEBS Funds Management lesson provides essential information for personnel who perform duties in GFEBS Funds Management roles. We will take a high-level look at this process.
Standards:

3. Course Objectives Explain FM fundamentals in GFEBS.
Describe the external systems interfacing with FM in GFEBS.
Explain the key FM roles in GFEBS.
List and define the FM master data elements and nomenclature.
Explain the nomenclature scheme of each FM master data element.
Identify key Business Intelligence (BI) interfaces.
Explain the budget versions in BI.
Describe budget planning in ECC.
Show Slide 3, Course Objectives
Section III. Presentation.
Learning Step / Activity 1. Apply Funds Management Procedures
Method of Instruction: Conference / Discussion
Facilitator to Student Ratio: 1:24
Time of Instruction: 2 hrs / 50 mins
Media: Large Group Instruction
Facilitator’s Note:
Course Concept:
Explain FM fundamentals in GFEBS.
• Describe the external systems interfacing with FM in GFEBS.
• Explain the key FM roles in GFEBS.
• List and define the FM master data elements and nomenclature.
• Explain the nomenclature scheme of each FM master data element.
• Identify key Business Intelligence (BI) interfaces.
• Explain the budget versions in BI.
• Describe budget planning in BI.

4. Course Objectives (Cont.)
Describe the process of funds distribution in GFEBS.
Identify real-time funds and availability controls.
Define key terms and concepts related to FM reporting.
Show Slide 4, Objectives (Cont.)
Course Concept Continued:
Describe the process of funds distribution in GFEBS.
• Describe the edit checks performed by GFEBS in funds distribution
Summarize Automatic Budget Posting (ABP).
• Identify real-time funds and availability controls.
• Define key terms and concepts related to FM reporting.
• Explain the roles involved with FM reports.
• List key FM reports.

5. FM Fundamentals
The FM process area incorporates both budgeting and funds control and/or distribution for General Fund appropriations received by the Army.
Budgeting and Funds Control/Distribution occur in two different areas within GFEBS:
- Budgeting occurs in BI.
- Funds control and distribution occur in ECC.
Show Slide 5, FM Fundamentals
INSTRUCTOR NOTE: GFEBS provides reporting tools in both BI and ECC in support of budgeting and funds control and/or
Distribution.
Business Intelligence (BI) provides unique reporting and planning features, such as:
Data extraction from multiple GFEBS functional modules (e.g., FI, CM, and SC) for inclusion into a single query, report, or graphic analysis.
Periodic extracts from ECC and Planning, Programming, Budgeting Business Operating System (PPB BOS) to update BI.
• Enterprise Central Component (ECC) contains functional modules supporting core business processes performed by the Army.
Reports display information in real time.
- Reports typically provide information focused on a single GFEBS business process area or module at a time.

6. FM Fundamentals (Cont.)
Funds Control/Distribution is comprised of:
- Receiving the appropriation.
- Issuing allocations and authority.
- Transferring funds.
- Reprogramming funds.
- Reviewing account balances.
- Controlling the availability of funds.
Show Slide 6, FM Fundamentals (Cont.)
Funds Control/Distribution is comprised of:
1. Receiving the appropriation. (Appropriations are forwarded to the Treasury to create bank accounts that support the appropriations and provide monies as required), (Apportion mean to divide the funds), (Money always flow down hill)
2. Issuing allocations and authority. (Headquarters Department of the Army (HQDA) (level 1) allocates funds to its Funds Centers) (Allocate mean to give)
3. Transferring funds. (The installations (level 3) distribute (transfer) funds to activities through GFEBS accompanied with a Funding Authorization Document (FAD). (The activities (Level 4) Activities can further distribute (transfer)funds to their subordinate units on a Funding Target memorandum.
4. Reprogramming funds. (Changing the color of money)
5. Reviewing account balances. (checks funds availability in FM prior to posting the Purchase Requisition)
6. Controlling the availability of funds.

7. FM Integration within GFEBS
The FM process area integrates with the other business process areas within GFEBS, such as: - Spending Chain
- Cost Management
- Reimbursable
- Property, Plant, and Equipment
Show Slide 7, FM Fundamentals within GFEBS
The FM process includes control of Army General Funds that are executed by GCSS-Army.
Instructor Note: Read the following examples to show how FM integrates with other process area.
Example 1: FM approves and distributes the funds for the yearly maintenance budget resulting in General Ledger (GL) updates in
Financials. The Maintenance Funding Execution Structure in Property, Plant, & Equipment is updated with the budgeted amount.
Example 2: GFEBS checks funds availability in FM prior to posting the Purchase Requisition. Funds commitments and obligations in the
Spending Chain automatically update the GL in Financials.
Example 3: A sales order, represented by the Reimbursable Work Breakdown Structure (WBS), is created in Reimbursables
accompanied by a funded program in FM.

8. LSA #1 Check on Learning
Q: Budgeting and funds control/distribution occurs in what two different areas within GFEBS?
A: Business Intelligence (BI) & Enterprise Central Component (ECC)
Show Slide 8, Check on Learning
NOTE: Conduct a check on learning and summarize the learning activity.
Q. Budgeting and funds control/distribution occurs in what two different areas within GFEBS?
A. BI and ECC

9. LSA #1 Summary Show Slide #9: LSA #1 Summary
Facilitator's Note: On the first part of the lesson, we discussed the fundamentals of Funds Management, what it is comprised of, and how it integrates with other GFEBS processes.
“Or”
NOTE: Have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer.

10. FM Master Data Elements
Show Slide 10, FM Master Data Elements
GFEBS uses FM master data to control the distribution and execution of funds. FM master data is comprised of seven elements.

11. GFEBS Assigned Reference
Standard Army Line of Accounting
D20_ A76VV QLOG WBS/IO/CC
Cost Object / Funded Program
WBS Element S
Internal Order
Cost Center 76VV0065
Department Code - 021
Cost Element
US Standard G/L Account
Commitment Item
Object Class - 26
Additional Specific Detail - 17
Application of Funds
Appropriation Symbol
Years of Availability - 1
Supplemental Appr. ID - 1
Fund Type Designator - D
Fiscal Year of Issue - 20
Blank Space - _
(Use current FY)
GFEBS Assigned Reference
Number
Fiscal
Station
Number (FSN)
Show Slide 11, Standard Army Line of Accounting
DISPLAY: Standard Army Line of Accounting and refer students to Summary Sheet page #3.
NOTE: Inform students on the breakdown of the line of accounting and that it will be explained in detail.
The GFEBS LOA consist of seven major parts:
Application of Funds
Fund center
Cost Element/ Commitment Item
Functional Area
Funded Program
GFEBS Assigned Reference Number
Fiscal Station Number
GFEBS is an Army ERP system. The Department Code shown on this slide is not a major part of the GFEBS LOA, but is placed to show that it is embedded in the system.
Functional Area
Army Program Element
Management Decision Package - QLOG
Blank
Funds Center
Funds Center A76VV
Appropriation Sponsor A
Operating Agency
Funding Level V
Funding Level V

12. Department Code 021 Department Code examples:
Department Code Name of Agency
011 Executive Office of the President
016 Department of Labor
017 Department of Navy
021 Department of Army
054 Federal Labor Relations Authority
057 Department of the Air Force
084 Armed Forces Retirement Home
097 Office of the Secretary of Defense
099 General Fund of the Treasury
Go to DFAS-IN Manual ** Para 21-DPT for the entire list of Department Codes
Show Slide 12, Department Code
Refer students to >21-DPT and page 4 of the summary sheet
(1) Department Code (021) The department code is not a part of the GFEBS line of accounting, but it is embedded in the Army financial system. Our services sister and other DoD organizations have their department codes embedded in their ERP systems as well.
The main point to remember here is that, you may have to do financial transactions for other DoD agencies, and you will have to use their department code in these transactions.

13. Application of Funds 202011D20_
The Application of Funds is comprised of six elements.
Appropriation Symbol (2020)
Years of Availability (1)
Examples:
Military Personnel, Army
1 Year
Operations and Maintenance, Army (OMA)
1 Year
Other Procurement, Army
3 Years
Research, Development, Test and Evaluation (RDT&E)
2 Years
Show Slide 13, Application of Funds
Refer students to Army Management Structure (Federated ERPs) Guide >AO-2020 (This is used for AO-0720 thru AO-2097)
Note: Army Management Structure (Federated ERPs) Guide >AO-2020 and Guide chapter 4.2.1, positions 1-4
The first two parts of Application of Funds consist of the Appropriation Symbol and the Year(s) of Availability (in bold above).
(1) Basic Symbol or Appropriation Symbol (2020–Operation and Maintenance, Army). The second part of the Application of Funds is the Appropriation Symbol. The Appropriation Symbol is an authorization, by an Act of Congress, to make payments out of the Treasury for specified purposes. These four digits of the Application of funds indicate the Treasury Fund Group to which the line of accounting applies. The digits identify the type of funds or major purpose of the appropriation Operation and Maintenance, Army (OMA)
Instructor Note: Army Management Structure (Federated ERPs) Guide, chapter 4.2.1, position 5
(2) Year(s) of Availability (1). The third part of the Application of Funds is the Year of availability. The Year(s) of Availability code is a one-digit code that identifies the period(s) or FY(s) in which Congress made the funds available for obligation.
Explain to the students that the 1 can also be an X for no years.
Military Construction
5 Years
Operation and Maintenance, Army NG (OMARNG)
1 Year
Operation and Maintenance, Army Reserve (OMAR)
1 Year
Afghanistan Security Forces Funds
1 Year
202011D20 A76VV QLOG WBS, Internal Order or Cost Center

14. States of an Appropriation
The fiscal year plus the appropriation determines the state of an appropriation. There are three phases of availability:
Current (or Unexpired)
Expired
Cancelled
Show Slide 14, States of an Appropriation
REF: >22-FY- 2 & 3
Some appropriations are for only one year (Operation Maintenance, Army (OMA), Operation Maintenance, Army Reserve (OMAR), Military Personnel, Army (MPA), and Operation Maintenance, Army Reserve National Guard (OMARNG)). Other appropriations are for longer periods (Research, Development, Test, and Evaluation (RDTE) 2 years, Military Construction Army (MCA) 5 years), and still others are for indefinite periods (Army Working Capital Fund (AWCF) X years). The fiscal year plus the basic symbol determines the State of an Appropriation, Unexpired, Expired, or Closed.
Terms:
Beginning Fiscal Year (BGFY) - The first fiscal year for which a code is valid.
Termination Fiscal Year (TMFY) - The last fiscal year for which a code is valid (or the fiscal year in which the use of a code is "terminated" (inactivated)).
DoDFMR Volume 3, Chapter 13 pages 13-5 and Phases of Availability: Current or Unexpired, Expired, and Cancelled

15. Current (or Unexpired) State
States of an Appropriation (Cont.)
Current (or Unexpired) State
An appropriation is in the current (or unexpired) state
during the fiscal year(s) for which it was made
available for obligation.
In this state, the appropriation can be used for both
obligations and disbursements.
Show Slide 15, Unexpired State
REF: >22-FY- 3
CURRENT (or UNEXPIRED). An appropriation is in the current (or unexpired) state during the year(s) for which it was made available by Congress for obligation. During the current (or unexpired) state, funds can be obligated and disbursed out of the appropriation.
Current (or Unexpired): 1 Oct Sep 2020

16. States of an Appropriation (Cont.)
Expired State
An appropriation lapses into the expired state during
the fiscal year following the current (or unexpired)
state and remains in the expired state for five years.
In this state, the appropriation can be used to disburse
or adjust existing obligations only.
No additional obligations will be incurred without major
command approval.
Show Slide 16, Expired State
REF: >22-FY-3
EXPIRED. During this state, you may disburse or adjust existing obligations only. No additional obligations may be incurred without approval from the Major Command (MACOM). An appropriation lapses into the expired state the fiscal year following the current (or unexpired) state and will remain in the expired state for five years. In the expired state, only disbursements can be made from the appropriation. Obligations during this state must be approved by the Major Command (MACOM).
Expired: 1 Oct Sep 2024

17. States of an Appropriation (Cont.)
Cancelled State
After the expired state, all remaining unobligated and
unliquidated balances will be cancelled.
The appropriation will no longer be available for
obligation and/or disbursement.
Any collections received will be deposited into a
miscellaneous receipt account (021R ).
Any obligations and adjustments will be charged to
current appropriations.
Show Slide 17, Closed State
REF: >22-FY-3
CANCELLED. After the expired state, all remaining unobligated and unliquidated balances will be cancelled. The appropriation will no longer be available for obligation and disbursement for any purpose after cancellation (closing). After an appropriation is closed, any collections received will be deposited into a Miscellaneous Receipt Account (021R ). Any obligations and adjustments for cancelled accounts will be charged to current appropriations available for the same purpose.
Cancelled: 1 Oct Indefinitely

18. States of an Appropriation (Cont.)
Application of Funds: D20_
Current (or Unexpired): 1 Oct Sep 2020
Expired: Oct Sep 2024
Cancelled: Oct Indefinitely
Show Slide 18, States of an Appropriation Examples
Ref to >22-FY - 3
Current (or Unexpired): 1 Oct Sep 2020 Obligate and disburse
Expired: 1 Oct Sep 2024 Disburse only. May make adjustment to obligation with approval from major command
Cancelled: 1 Oct Indefinitely Unobligated and unliquidated balances will be cancelled. Collections received will be deposited into a Miscellaneous Receipt Account (021R )
202011D20 A76VV QLOG WBS, Internal Order or Cost Center

19. Application of Funds (Cont.)
Application of Funds six elements continued.
Supplemental Appropriation ID (1)
Fund Type Designator (D)
Fiscal Year of Issue (20)
Blank Space (_)
Show Slide 19, Application of Funds (Cont.)
Application of Funds (Cont.) Refer students to Summary Sheet, Identify GFEBS Master Data page 6.
The next four elements of Application of Funds consist of the Supplemental Appropriation ID, Fund Type Designator, Fiscal Year of Issue, a Blank Space (in bold above).
Refer students to the Army Management Structure (Federated ERPs) Chapter 4.2.1, Position 6
(3) Supplemental Appropriation ID (1). The fourth part of the Application of Funds are the Supplemental Appropriation ID. The Supplemental Appropriation ID indentifies each supplemental appropriation enacted by congress that is in addition to the original Appropriation Act for each fiscal year.
INSTRUCTOR NOTE: Ask Students; Question: What does the supplemental appropriation ID 3 mean?
Answer: Congress enacted THREE additional supplemental appropriations. It is the FOURTH overall appropriation.
Refer students to the Army Management Structure (Federated ERPs) Guide >4.2.1>position 7
(4) Fund Type Designator (D).The fifth part of the application of funds is the Fund Type Designator. The fund type designator identifies whether the fund is Direct, Reimbursable, Funded or Reimbursable, Automatic. Point out to the students the different fund types within the application of funds.
Fund Type Example
D = Direct D Operation and Maintenance, Army
F = Reimbursable, Funded F20 Army Family Housing, Operation and Maintenance
A = Reimbursable, Automatic A Operation and Maintenance, Army
Note: Reimbursable Automatic is valid only for OMA, OMAR, OMNG, RDTE, and MCA.
R = Receipt Accents X0RXX Wildlife Conservation Receipt Account
T = Trust T20 Fisher Houses Trust Fund
C = Clearing Accounts F0CXX Recycling Account on Installations
S = Special Funds 5095X0SXX Wildlife Conservation, etc., Military Reservation, Army
Z = Non-reportable 4528X0Z20 Working Capital Fund, Army Conventional Weapons
37-100, 22-FY-2 and Reference Guide chapter 4.2.1, positions 8-9
(5) Fiscal Year of Issue (18). The sixth part of the Application of Funds is the Fiscal Year of Issue. The Fiscal Year of Issue identifies the year that Congress appropriated the funding.
(6) Blank Space (_). The seventh part of the Application of Funds is a blank space.
INSTRUCTOR NOTE: Ask students the following;
Question: What does fund type designator F mean?
Answer: (Reimbursable, Funded).
202011D20_ A76VV QLOG WBS, Internal Order or Cost Center

20. Fund Center
Fund Center (A76VV) – Fund Center record contains information about specific organizational elements within the Army that are authorized to receive, distribute, and manage funds.
Show Slide 20, Fund Center
FUNDS CENTER A76VV
Instructor notes: Army Management Structure (Federated ERPs) Guide >chap 8.1 and 8.2> You will use the word document to explain and the excel spread sheet (click on Data Reference folder) to research.
NOTE: Refer students to the Summary Sheet, Identify GFEBS Master Data page # 7
(1) Funds Center (A76VV). The second element in the line of accounting is the Funds Center-Cost Center. The Funds Center consist of 5 characters (Note: The first four digits of the Cost Center will match the last four digits of the Funds Center.) Explain that each instillation have their own fund center. When discussing Army the A2A will stay the same. The last 2 characters will change. Also referred to as budget objects. Fund centers manage and distribute funds for cost incurred.
202011D20_ A76VV QLOG WBS, Internal Order or Cost Center

21. Fund Center (Cont.)
This example shows the composition of a funds center hierarchy from HQDA at Level 1 to an FORSCOM Level 4 funds center at 3rd ID:
Fund Center Position Represents Example
1 Appropriation Sponsor A (Army)
2-3 Operating Agency 76 (FORSCOM)
4-5 Level 3 and 4 VV (Region / 3 ID)
Other Examples of Fund Centers:
A2ABM Fort Jackson A57HB CASCOM
A76NN 82 Airborne A76YY HQ FORSCOM
Show Slide 21, Fund Center (Cont.)
(2) Positions 1 - 5: Funds Center record contains information about specific organizational elements within the Army that are authorized to receive, distribute, and manage funds.
Funds Center: A76VV
Position Represents Example
1 Appropriation Sponsor A (Army)
2-3 Operating Agency 76 (FORSCOM)
4-5 Level 3 and 4* VV (Region/Organization) Fort Stewart
Other Examples of Fund Centers:
A2ABM Fort Jackson A57HB CASCOM
A76NN 82 Airborne A76YY HQ FORSCOM
*Funding levels: 1- D.A., 2- MACOM- 3- Installation of Activity Level 4- Subordinate unit or activity.
Note: Army organizations can choose the level of their Funds Center structure (level 3 or level 4 only).
202011D20_ A76VV QLOG WBS, Internal Order or Cost Center

22. Cost Element / Commitment Item
This is an eight-digit code that identifies the nature or the physical characteristics of the expenditure (such as military and civilian pay; travel of personnel; supplies; equipment; rents; utilities, etc.)
Cost Element –
US Standard G/L Account – 6100
Commitment Item – 2617
Object Class – 26
Additional Specific Detail - 17
Show Slide 22, Cost Element/ Commitment Item
INSTRUCTOR NOTE: Refer students to page 7 of the summary sheet.
The first four characters of the cost element are the General Ledger is the main accounting record of a business which uses double-entry bookkeeping (balances your debts and credits). It usually include accounts for such as current assets, fixed assets, liabilities, revenue and expenses items, gain and losses. Example: OMB push money down to this cost object for example object class 26. This money will cover everything in this specific series (Supplies and Materials).
The first three digits of the Commitment Item are created from the Office of Management and Budget (OMB) defined object class. The 4-character Funds Management (FM) commitment item contains additional detail information beyond the detail directed by OMB. All FM commitment items are tied to an OMB Object Class.
Cost Element/Commitment Item:
Position Represents Example
GLAC (general ledger chart of accts) (Operating Expenses)
OMB 2 Character Object Class (Supplies and Materials)
Depot Level Reparable (Depot Level Reparable)
2 (Non-depot Level Reparable)
3 (Unclassified)
Material Category (Combat Vehicle Repair Parts)
202011D20_ A76VV QLOG WBS, Internal Order or Cost Center

23. US Standard General Ledger Account (GLAC)
(6100)
General ledger accounts are the backbone to any accounting and financial information that comes out of an organization. They cover all aspects of a business with regard to the flow of money and can be broken down to as fine a detail as a organization chooses. The accounts are divided into categories and can give the balance of any area of the business at a glance.
Show Slide 23, US Standard General Ledger Account (GLAC)
The General Ledger also commonly referred to as an accounting ledger, a general ledger is a primary accounting record used by a business to keep track of all the financial transactions the company makes. All financial transactions, debits and credits are recorded or posted,” in the general ledger, regardless of whether or not they also post to a subsidiary ledger (sub-ledger), such as accounts receivable or cash. These values can provide the information used to generate all of the organization’s financial statements.
202011D20_ A76VV QLOG WBS, Internal Order or Cost Center

24. General Ledger Accounts Categories
General accounts are broken into seven categories: assets, liabilities, net position, revenue, expense, gains, and losses.
Assets are basically all things owned by the company that are of any value.
Liabilities are anything owed by the company.
Net position is the result of the value of the assets minus the liabilities.
Revenue is the income brought in by the operating of the business.
Expense is the spending of money by the company to operate the business.
Gains and losses are the incoming and outgoing of funds that do not have to do with the normal revenue and expense.
Show Slide 24, General Ledger Accounts Categories
Asset: automobile, computer, home
Liabilities: credit card debt, loan,
Net Position : Foreign exchange currency, commodities. It can also be the amount or total assets held by an organization as well as the ownership status of a institution’s investments.
Net Position : example could be if you owned rental property the funds received from the rent is the revenue. The sale of automobiles at a car lot would be a revenue. (income that a company receives from its normal business)
Expense: Utilities (electric, water, gas) cable bill, cell phone bill, travel, office supplies
Gains or losses: Gains or losses result from the sale, exchange, trade or disposition of government assets. Gains or Losses. When a transaction occurs with the public or another government entity for a price which is unusual or nonrecurring, a gain or loss must be recognized rather than revenue or expense so as to differentiate such transactions. Gains or losses result from the sale, exchange, trade or disposition of government assets (with the exception of inventory held for sale)6. As a general rule, any difference between the sales proceeds at more or less than the book value of an asset is recognized as a gain or loss when the asset is sold.
EXAMPLE: The reclassification of excess, obsolete, or unserviceable inventory will generally result in a loss when revalued because the value is now less than the acquisition or moving average cost of the item. The amount of revaluation is recognized as a loss or gain in determining the net cost of operations. Example: initial issue of equipment, when it is turned in the value has depreciated because of normal wear and tear. It is not the same value when it was received.

25. Basic 6-digit USSGL accounts classification
Number
Title
Normal Balance
100000
Assets
Debit
200000
Liabilities
Credit
300000
Net Position
400000
Budgetary
Debit/Credit
500000
Revenue Other Financing Sources
600000
Expenses
700000
Gains/Losses/Misc Items
800000
Memorandum
Show Slide 25, The basic 6-digit USSGL accounts classification
The general ledger utilizes double-entry bookkeeping, when a transaction occurs, it always affects two of these accounts in equal and opposite ways; it is a debit to one and a credit to another. The total amount of debits should always equal the total amount of credits, so if the two do not match up, it indicates that an error has been made. This comprehensive and balanced format is one reason why the account ledger is used to create financial statements.
USSGL accounts appearing in bold are new or indicate a change from the last USSGL TFM Supplement release (changes to the title, normal balance, and/or definition).
The entire account number series are The series of accounts are available for agencies to record and maintain agency-specific statistical and/or memorandum data.
Instructor: Have the students read the paragraph after “The basic 6-digit USSGL accounts are classified as follows:”, and research some of the accounts so that they may become familiar with the regulation.
The normal balance indicates the account balance is usually a debit or credit. If the normal balance for an account is a debit, then a debit to the account will increase the balance, while a credit will decrease the account.
U.S. Standard General Ledger

26. General Ledger Structure
Account Categories and Definitions. There are seven major categories in the USSGL. These are further classified as real, nominal, budgetary, and/or proprietary accounts. A. Real accounts are those balance sheet accounts that remain open and are available during the business life cycle. Asset, liability and net position accounts are classified as real accounts. B. Nominal accounts are those accounts that are closed at fiscal year-end or at the end of the accounting period. Expenses, revenues, and gains/losses/extraordinary items are classified as nominal accounts.  C. Budgetary resource accounts are used in conjunction with real and nominal accounts. Budgetary resource accounts track budgetary execution and funding, and serve to meet the fiscal requirements of appropriation managers. GLACs numbered 4*** are classified as budgetary accounts.  D. Proprietary accounts are those which present the financial position of the government operation. They therefore serve primarily for the production of financial reports to meet the needs of internal financial managers and external users. Proprietary accounts include all GLACs except the budgetary accounts.
Show Slide 26, General Ledger Structure
Instructor notes: Have the students read the terms.
Now that we have looked at these accounts, lets associate them to the General Ledger Structure. Emphasize which accounts fall in each further classified accounts:
Real Accounts = asset, liability and net position account
Nominal Accounts = expenses, revenues, gains, losses, and extraordinary items.
Budgetary Resource Accounts = GLACs numbered 4***
Proprietary Accounts = -include all GLACs except the budgetary accounts.
The USSGL accounting process encompasses both proprietary and budgetary data. This integrated process is built upon the detailed principles and procedures prescribing how accounting events are measured, recorded, classified, summarized and reported.

27. Commitment Item
(2617)
Object classes are categories in a classification system that presents obligations by the items or services purchased by the Federal Government. These are the major object classes:
10 Personnel compensation and benefits
20 Contractual services and supplies
- 26 – supplies and materials
30 Acquisition of assets
40 Grants and fixed charges
90 Other
Position 5 – 6: OMB 2 Character Object Class Supplies and Material Purchases
Position 7: Depot Level Reparable (DLR) K - Army Managed DBOF Items (DLR)
1 - Army Managed DWCF Items (Non‑DLR)
Position 8: Material Category (Combat Vehicle Repair Parts)
Show Slide 27, Commitment Item (2617)
Instructor and Students go to > Army Management Structure (Federated ERPs) Guide chapter 7
Position 5 – 6: OMB 2 Character Object Class 26 - Supplies and Material Purchases
Position 7: Depot Level Reparable (DLR) Army Managed DBOF Items (DLR)
F - Army Managed DWCF Items (Non‑DLR)
Position 8: Material Category (Combat Vehicle Repair Parts)
2B-EOR- Pay (deals with personnel) 1000 series
2B-EOR-NonPay (deals with contracts) 2000 series and above
Every obligation recorded by the Department of Defense must be coded with an Commitment Item. These obligations by Commitment Item must be accumulated and reported to the Treasury on a quarterly basis. We divide the major classes into smaller classes and present them in the Budget Appendix in object class schedules.
Army Management Structure (Federated ERPs) Guide >go to chapter 7 for definition, then click on Data Reference files (excel spread sheet) to show crosswalk.
202011D20_ A76VV QLOG WBS, Internal Order or Cost Center

28. Functional Area (131096QLOG)
Functional Area, Army Program Element, Management Decision Package, & Project Number The Functional Area is used to control and capture execution data. GFEBS controls the execution of funds based on Appropriation and the Functional Areas using derivation rules. It is used to identify the Army Program Element (APE), Management Decision Package (MDEP), Military Construction (MILCON) projects, and Procurement Standard Study Number (SSN). Example: Army Program Element (APE) QLOG- Management Decision Package (MDEP)
Show Slide 28, Functional Area
Functional Area
NOTE: Refer students to the Summary Sheet; Identify GFEBS Master Data page #7.
The Functional Area is a Funds Management budget object defined as a funds control element as well as an element to capture execution data. All funds will be distributed to specific Functional Areas for execution of funds. GFEBS records Office of the Secretary of Defense (OSD) Program Element in the background for the Functional Area. OMA point account info may appear in FM master data or Cost Management data depending on the use cases.
The Operation and Maintenance, Army, appropriation is identified by Budget Activity, Budget Activity Group, and Subactivity Group. Budget activities (BA) are indicated by one digit, budget activity groups (AG) by two digits, and subactivity groups (SAG) by three digits. An Army Program Element (APE) is formed using the 3-character SAG identifier and a three character code identifying the parent OSD program element. In GFEBS, the APE and an MDEP are combined to form the Functional Area master data element. The Functional Area is also referred to as a Project Code for Military Personnel appropriations.
Example: Army Program Element (APE) QLOG- Management Decision Package (MDEP)
Note: Refer students to the > Army Funds Management Data Reference > A0-2020: Operation and Maintenance, Army>AO-2020.docx (explain). Then go to Data Reference>A OMA-FA.PDF (research).
Question: What is the Functional Area for Physical Security Matters that with the Beginning Fiscal Year (BGFY) 2010 and the Termination Fiscal Year (TMFY) is still open? QPSM
Instructor/Students: Go to >2C-MDEP1>page 2C-MDEP1-19
Management decision packages (MDEPS) account for army resources. MDEPS describe the capability of the total army; active, guard, and reserve. Individually an MDEP describes a particular organization, program, or function and records the resources associated with the intended output. An individual MDEP applies uniquely to one of the following six management areas:
Missions of modified tables of organization and equipment (MTOE) units.
Missions of table of distribution and allowance (TDA) units and army wide standard functions.
Missions of standard installation organizations (SIOS).
Acquisition, fielding, and sustainment of weapon and information systems.
Special visibility programs (SVPS).
Short term projects (STPS).
During programming, MDEPS provide useful visibility. They assist army managers, decision makers, and leaders to assess program worth, confirm compliance, and rank resource claimants. During budgeting, MDEPS help convey approved programs and priorities into budget estimates. They also assist HQDA program evaluation groups post program changes caused by budget decisions and approved funding. During execution, the posted MDEPS help HQDA principals and commanders of major army commands (MACOMS) and other operating agencies track program and financial performance.
202011D20_ A76VV QLOG WBS, Internal Order or Cost Center

29. Functional Area (Cont.)
131096
1** Operating Forces (OMA- Budget Activity Group 1)
13* Land Forces Readiness
Base Operations Support
Army Program Elements under the OMA Appropriation
211000
2** Mobilization (OMA-Budget Activity Group 2)
21* Mobility Operations
Strategic Mobility
324000
3** Training and Recruiting (OMA-Budget Activity Group 3)
32* Basic Skills and Advanced Training
Training Support
422000
4** Admin. and Service Wide Service Activities (OMA BAG 4)
42* Logistics Operations
Central Supply Activities
131096
QLOG
Show Slide 29, Functional Area Example
VSCW
Training Range Operations
Management Decision Packages (MDEP)
WSUS
MTOE Unit Equipment Support
QLOG
Logistics Activities
FPDE
Night vision
202011D20_ A76VV QLOG WBS, Internal Order or Cost Center

30. Cost Object/Funded Program
Cost Object is used to control spending related to work orders (WO) and/or projects.
Examples:
WBS S
Internal Order
Cost Center 76VV0065
Show Slide 30, Object Class/Funded Program
Note: Refer students to the > Army Funds Management Data Reference >chapter 6
COST OBJECT/FUNDED PROGRAM (Cost Center, WBS, or Internal Order). The fifth element in the line of accounting is the Cost Object/Funded Program. The Cost Object/Funded Program is used to control spending related to work orders(Reimbursable/Direct work orders) and/or projects. Funds will be distributed and staged at the generic Funded Program “Army” until a work order or project has been identified to distribute funds to a detailed funding program. Once the work order (WO) and/or project is created, the Funded Program is then created using the WO or project number. Then the funds are distributed from ARMY, for example, to the created project/work order.
The Cost Center, WBS, or Internal Order can change, based on the project and the work order. Add: Cost object can be used to analyze actual cost & target cost. The GFEBS Assigned Reference Number is GFEBS generated, i.e. Projects WBS Element numbers
INSTRUCTOR NOTE: Ask students,
Question: What is the purpose of the Cost Object?
Answer: The Cost Object/Funded Program is used to control spending related to work orders.
202011D20_ A76VV QLOG WBS, Internal Order or Cost Center

31. Cost Object/Funded Program (Cont.)
Work Breakdown Structure (WBS)
(S )
WBS is a model of the project that organizes project tasks into a hierarchy.
Show Slide 31, Work Breakdown Structure (WBS)
The work breakdown structure (WBS) Element is a model of the project that organizes project tasks into a hierarchy.
It is the functional basis for further planning steps in a project, for example, for process planning, cost planning, scheduling, capacity planning or costing, as well as project control.
It gives you a clear picture of the project and facilitates the coordination and implementation of the project from a management standpoint.
It shows the work involved in a project.
202011D20_ A76VV QLOG WBS, Internal Order or Cost Center

32. Cost Object/Funded Program (Cont.)
Internal Orders
( )
Internal Orders are cost objects used to plan, collect, monitor, and settle the costs of specific jobs and tasks.
Show Slide 32, Internal Orders
Internal Orders: Cost objects used to plan, collect, monitor, and settle the costs of specific jobs and tasks.
Internal Orders are used to monitor the costs of short term, long-term, and recurring activities or programs.
202011D20_ A76VV QLOG WBS, Internal Order or Cost Center

33. Cost Object/Funded Program (Cont.)
Cost Center
(76VV0065)
Cost Centers are cost objects in the Controlling Area of GFEBS that represent an organizational unit where cost are incurred. The organizational unit can be defined based on functional requirements, allocation criteria, physical location, or responsibility for costs.
Cost Centers represent the organization’s hierarchical structure found in its Table of Distribution and Allowance (TDA) or Table of Organization and Equipment (TO&E).
Show Slide 33, Cost Center
Instructor notes: Army Management Structure (Federated ERPs) Guide >chap 9> use the word document to explain cost centers and you will use the spreadsheet from chap 8>tab 2> for cost centers
Cost Center (76VV0065). Cost Centers are cost objects in the Controlling Area of GFEBS that reflect an organization’s command and control structure where costs are incurred. The organizational unit can be defined based on functional requirements, allocation criteria, physical location, or responsibility for costs. Cost Centers represent the organization’s hierarchical structure found in its Table of Distribution and Allowance (TDA) or Table of Organization and Equipment (TO&E).
Cost Centers:
Clearly define a responsibility area where costs are incurred
Enable informal funds distributions from Funds Centers to subordinate organizations with the related Cost Center group.
Do reflect the organizational structure, which usually follows the chain of command.
Are organized into Cost Center groups based on the organization structure. Each Cost Center group is usually related to one Funds Center.
Can be funded by Funds Centers outside an organization’s Funds Center structure.
Position Represents Example
Last 4 characters of Fund Center VV
Specific organization and function
Responsible for incurring and capturing cost
NOTE: Structure and Critical Fields: The GFEBS Cost Center data element is 10 numeric characters. Derivation rules are used to map each Cost Center group to a Funds Center. The Alpha numeric is used for training purposes because the training client “TED” is not update to the current production system.
202011D20_ A76VV QLOG WBS, Internal Order or Cost Center

34. Cost Object/Funded Program (Cont.)
Cost Center (Cont.)
Fund Center
Cost Centers
G1- Fort Bragg
A76CC
76CCMSE
G2- Fort Bragg
(Fort Bragg)
(US Army Mission Support, Ft. Bragg)
G3- Fort Bragg
NOTE: GCSS-Army (Global Combat Support System) and other
Organizations are yet to adopt this Cost Center format.
This will make it difficult to identify who the Cost Center belongs to.
Show Slide 34, Cost Center
Instructor notes: Army Management Structure (Federated ERPs) Guide >chap 9> use the word document to explain cost centers and you will use the spreadsheet from chap 8>tab 2> for cost centers
Cost Center (76VV0065). Cost Centers are cost objects in the Controlling Area of GFEBS that reflect an organization’s command and control structure where costs are incurred. The organizational unit can be defined based on functional requirements, allocation criteria, physical location, or responsibility for costs. Cost Centers represent the organization’s hierarchical structure found in its Table of Distribution and Allowance (TDA) or Table of Organization and Equipment (TO&E).
Cost Centers:
Clearly define a responsibility area where costs are incurred
Enable informal funds distributions from Funds Centers to subordinate organizations with the related Cost Center group.
Do reflect the organizational structure, which usually follows the chain of command.
Are organized into Cost Center groups based on the organization structure. Each Cost Center group is usually related to one Funds Center.
Can be funded by Funds Centers outside an organization’s Funds Center structure.
Position Represents Example
Last 4 characters of Fund Center VV
Specific organization and function
Responsible for incurring and capturing cost
NOTE: Structure and Critical Fields: The GFEBS Cost Center data element is 10 numeric characters. Derivation rules are used to map each Cost Center group to a Funds Center. The Alpha numeric is used for training purposes because the training client “TED” is not update to the current production system.
202011D20_ A76VV QLOG WBS, Internal Order or Cost Center

35. GFEBS Assigned Reference Number (GRN)
( )
GRN - is system generated and is used to identify and track each expenditure transaction, from the commitment through the disbursement stage.
The GFEBS Assigned Reference Number contains six to fourteen characters and is unique to each transaction.
Show Slide 35, GFEBS Assigned Reference Number
GFEBS ASSIGNED REFERENCE NUMBER ( ). The sixth element in the line of accounting is the GFEBS Assigned Reference Number. The GFEBS Assigned Reference Number is GFEBS generated. These numbers can be generated by several types of transactions, i.e. Purchase Requisitions and Purchase Orders.
INSTRUCTOR NOTE: Ask students,
Question: Since we know that the number is assigned by GFEBS can we look up this information?
Answer: No we cannot because it is assigned by GFEBS.
When the FMY1 is done, (for now it is only done in a operational environment) it will not generate the GRN because this is a pre-commitment. When the actual obligation is done the GRN will be computer generated.
202011D20_ A76VV QLOG WBS, Internal Order or Cost Center

36. Fiscal Station Number (FSN)
(021001)
Fiscal Station Number identifies the accounting office responsible for maintaining the accounting records of the allotment or allowance of funds. In GFEBS, the FSN will be (Defense Finance and Accounting Service or DFAS).
Show Slide 36, Fiscal Station Number (FSN)
Instructor/students go to >2J-FSN
FISCAL STATION NUMBER (FSN) (021001). The seventh element in the line of accounting is the Fiscal Station Number. A FSN is a five digit number (in a six position field) assigned to an installation or activity integrated finance and accounting office, or a non-integrated finance office, a fully supported activity, a decentralized accounting office, Pseudo Non Appropriated Fund Office (NAF), or a state department activity. It identifies the Operating Location that is responsible for maintaining the detailed accounting records for the allotment of funds. In GFEBS, the Fiscal Station number is
FSN= will always be the same (responsible for outgoing payments) DSSN and ADSN will be different depending on the location.
D20 A76VV76VV K QLOG Cost Center, WBS, or Internal Order
202011D20_ A76VV QLOG WBS, Internal Order or Cost Center

37. LSA #2 Check on Learning
Q. What does the Application of Funds consist of?
A: Department Code, Appropriation Symbol, Years of Availability, Supplemental Appropriation ID, Fund Type Designator, Fiscal Year of Issue, and a Blank Space.
What does the Appropriation Symbol 2020 mean?
A: Operations and Maintenance, Army
What is the definition of a Funded Program?
A: Its a model of the project that organizes project tasks into a hierarchy.
Show Slide 37, Check on Learning
NOTE: Conduct a check on learning
Q. What does the Application of Funds consist of?
Department Code, Appropriation Symbol, Years of Availability, Supplemental Appropriation ID, Fund Type Designator, Fiscal Year of Issue, and a Blank Space.
What does the Appropriation Symbol 2020 mean?
A. Operation and Maintenance
Q. What is the definition of a Funded Program?
A. Its a model of the project that organizes project tasks into a hierarchy.

38. LSA #2 Summary Show Slide #38: LSA #2 Summary
Facilitator's Note: On the second part of the lesson, we discussed master data elements of Funds Management and the standard Army line of accounting used in GFEBS.
“Or”
NOTE: Have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer.

39. Funds Distribution Show Slide 39, Funds Distribution
Instructor Notes: Refer students to Funds Distribution Handout
Introduce and explain to students on how to apply the GFEBS Funds Distribution excel spread sheet.
Now let’s take a moment to learn about the different levels for formal funds distribution. The budget plan is created referencing levels of formal funds distribution. The budget planning begins at Level 2 in the Army organization. The formal levels of funds distribution are also used for budget distribution. Planning occurs at each level.
Prior to the beginning of the Fiscal Year, Congress and the President of the United States agree on the operational budget for all of the U.S. Government departments, including the Department of Defense (DoD). Appropriations are forwarded to the Treasury to create bank accounts that support the appropriations and provide monies required. The Treasury issues warrants to reserve and guarantee funds availability. The Treasury acts as the “Bank” of the U.S. Government.
Appropriations are also forwarded to Office of Management and Budget (OMB). OMB determines the portions of the appropriations required by programs and fiscal quarters. Fund appropriations and apportionments are forwarded to DoD. DoD controls the funds for and distributes the funds to the Departments of the Army, Navy, Air Force, and Marine Corps to release the funds for supported programs and services. Funds intended for the Army are allotted to Level 1/Appropriation Sponsors. Level 1/Appropriation Sponsors, in turn allocate the funds to ACOMs, DRUs, etc. The Treasury issues warrants to reserve and guarantee funds availability. This process is identified as Funds Control.

40. Office of Management and Budget (OMB) Headquarters Dept. of the Army
Funds Distribution (Cont.)
President
(submit annual budget)
Congress
(appropriation)
Office of Management and Budget (OMB)
(apportion funds to lower level)
Treasury Warrant
(Quarterly Allotment)
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
Show Slide 40, Funds Distribution (Cont.)
Have students turn to page 2, par 1 or the Funds Distribution HO.
INSTRUCTOR NOTE:
FLOW OF FUNDS: The process by which an installation receives its funds is known as the flow of funds. The flow begins with the President initiating the appropriations process by submitting his annual budget for the upcoming fiscal year to Congress. It must be submitted on or before the first Monday in February. (REF: 31 U.S.C.) Congress annually considers several appropriations measures, which provide funding for numerous activities, such as national defense, education, homeland security, crime, and general government operations. These measures are considered by Congress under certain rules and practices, referred to as the congressional appropriations process. This power is granted to Congress under the Constitution, which states, “No money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.” REF: 1 U.S. Constitution, Article I, Section 9. Estimated budget for FY2013 is $1.047 trillion
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
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.
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 reimbursable.
The installations (level 3) distribute funds to activities through GFEBS accompanied with a Funding Authorization Document (FAD). The Funding Authorization Document (FAD) further breaks down the Funds by Funds Center/Cost Center.
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. In GFEBS at certain organizations they request funds by using and the funds will be pushed down (if approved)
The levels are based on how your organization is set up and the appropriation. This is just a basic model of an organization. For example, if a certain appropriation(s) 2010, 2030 has a specific dollar amount obligated for the project the funds can go from the OMB directly to the specific project.
REF: The Congressional Appropriations Process: An Introduction
select Congressional Budget Data from the first dropdown> type in the congressional appropriations process 2013>select the first link.
Installations
(sub-commands)
(Level 3)
Subordinate Activity/elements/CMD
(Level 4)
Subordinate Units

41. Funds Distribution (Cont.)
Congress
Subordinate Units
(lower level)
President
Flow of
Funds
Office of Management and Budget (OMB) and Treasury
Subordinate Activities
(level 4)
Show Slide 41, Funds Distribution (Cont.)
President – submit his annual budget
Congress – appropriation
Office of Management and Budget (OMB) – apportions fund to the department of the US Gov.
HQDA – fund the fund centers, Level 1.
ACOMS – further allot the funds to the different activities. (FORSCOM, TRADOC, AMC (Army material Command) make up the Army Command), Level 2.
Installations – distribute funds on a funding document along with a FAD, Level 3.
Sub. Activities – the FAD 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, Level 4.
Subordinate units – with the information provided on the FAD a Funding Target Memo is sent down quarterly by fund center/cost center and cost element/commitment item. A company is a subordinate unit of 120th Replacement. Note: the red arrow indicate this is where the flow of funds stop. If there is a request of additional funding or a return of funds (rescissions) then the funds process will flow in reverse.
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
ACOM (TRADOC)
(level 2)
Installations(FTJ)
(level 3)
HQDA Level 1

42. Funds Distribution (Cont.)
Formal distribution of funds is done on a Funding Authorization Document (FAD) and is subject to the Anti-Deficiency Act Title 31 USC 1517
Informal distribution of funds is made on a Funding Target Memorandum. It is NOT subject to the Anti-Deficiency Act Title 31 but could lead to a Title 31 violation
Show Slide 42, Funds Distribution (Cont.)
Methods of Funding
- There are two methods of funding. They are formal and informal.
- The formal distribution of funds is done on a Funding Authorization Document. The FAD is a subject to the Anti-Deficiency Act Title 31 USC FAD is used to allocate funds to the Military Services in accordance with DoDFMR Volume 3 para
- The informal distribution of funds is made on a Funding Target Memorandum. It is NOT directly subject to the Anti-Deficiency Act Title 31 but could lead to a Title 31 violation.

43. 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:
The base appropriation
Contingency appropriations, reprogramming, recoveries, transfers, etc.
Show Slide 43, Funds Distribution (Cont.)
The Level 1 Funds Execution Controller will enter into GFEBS the initial budget appropriated by Congress to HQDA for the upcoming fiscal year.
• Subsequently, the Level 1 Funds Execution Controller will transfer the appropriation of funds to Apportionment (Level 1 Funds Center).
• 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).

44. 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.
Show Slide 44, 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.

45. Rescissions
Rescissions occur when Congress initially provides funds in an Appropriation Act but later reduces or eliminates what was appropriated previously through a subsequent law.
Rescinded funds are documented on a Treasury Warrant. HQDA records the permanent reduction of authority within GFEBS as detailed in the warrant.
Show Slide 45, Rescissions
INSTRUCTOR NOTE: Refer students to Funds Distribution Handout page 3.
Rescissions occur when Congress initially provides funds in an Appropriation Act but later reduces or eliminates what was appropriated previously through a subsequent law.
Rescinded funds are documented on a Treasury Warrant. HQDA records the permanent reduction of authority within GFEBS as detailed in the warrant.
With the FY18 3rd Quarter Release as part of SFIS10MR implementation, a new extension on FMBB (Budgeting workbench) was created to capture the SFIS attribute T29 (Reduction Type Code Value). On the FMBB transaction, when the ABO user with proper authorization enters the process type ‘Return’ and document type RESC or RESP and goes to Additional Data tab and clicks on US Govt, the US Government Fields pop-up will come up. This pop-up has the required field RTC, which will allow the user to enter the applicable Reduction Type Code, i.e. ATB- Across The Board, SEQ – Sequestration, OTR – Reductions other than ATB and SEQ, XXX – Not Applicable. When the user attempts to post with the process type Return for document type RESC or RESP, applicable Reduction type code from the drop down list of RTC field should be selected. Impacted roles are FM Level 1 Approver and Maintainer.

46. Rescissions (Cont.)
Treasury Warrant Receipts and Journal Voucher (JV) when HQDA receives the Treasury Warrant, the Funds Execution Controller at HQDA will enter it into GFEBS as a JV to record the posting to cash and the equity to USSGL accounts.
JV is a document that adjusts accounting entries affecting USSGL balances for the Period and Year-End Closing/Reporting processes after the disbursement has occurred.
Show Slide 46, Rescissions (Cont.)
Treasury Warrant Receipts and Journal Voucher (JV)
When HQDA receives the Treasury Warrant, the Funds Execution Controller at HQDA will enter it into GFEBS as a JV to record the posting to cash and the equity to USSGL accounts.
A JV is a document that adjusts accounting entries that affect USSGL balances for the Period and Year-End Closing/Reporting processes.

47. Types of Funding Authorization
Funding Authorization is provided through GFEBS to incur obligation against government funds
Direct Obligation Authority Funded Reimbursement Authority Automatic Reimbursement Authority
Show Slide 47, Types of Funding Authorization
Types of Funding Authorization
INSTRUCTOR NOTE: There are 3 types of funding authority. They are direct obligation authority (DOA), Funded Reimbursement Authority (FRA) and Automatic Reimbursement Authority (ARA).
Allows Funding to be Increased by Amount of Orders Received
Total Financial Authority

48. Types of Funding Authorization (Cont.)
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
Show Slide 48, Direct Obligation Authority (DOA)
Direct Obligation Authority (DOA)
Direct Obligation Authority (DOA) has a specific dollar amount and is used for mission activities and Base Operations (BASOP’s). 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.

49. Types of Funding Authorization (Cont.)
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
Show Slide 49, Funded Reimbursement Authority (FRA).
Funded Reimbursement Authority (FRA).
Funded Reimbursement Authority (FRA) is for a specific dollar amount. 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.

50. Types of Funding Authorization (Cont.)
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
Show Slide 50, Automatic Reimbursement Authority
INSTRUCTOR NOTE: Refer students to Funds Distribution Handout page 3.
Automatic Reimbursement Authority.
Automatic Reimbursement Authority (ARA) is the authority to engage in the automatic reimbursement program to temporarily finance support to individuals or non-mission activities. ARA 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 only approves the authority to engage in automatic reimbursement activities.

51. Administrative Limitations
Imposed on the Use of Funds
Specific Dollar Amounts
May be legal or regulatory
Types:
Ceiling
Floor
Target
Fence
Show Slide 51, Administrative Limitations
Have students turn to page 4, Limitations of the Funds Distribution HO.
Administrative Limitations.
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.
Ceiling – is an upper limit (maximum) on the cumulative amount of funds which may be obligated for a specific purpose.
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) floor. Funding for floors not utilized is subject to withdrawal by higher command.
Target – a prescribed goal used as a management tool to control resources, budgetary allowance that can be exceeded.
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.

52. Administrative Limitations (Cont.)
Ceiling
Cumulative Obligation Maximum Amount
Limitation
Show Slide 52, Ceiling
Ceiling
(1) Ceilings: is an upper limit (maximum) on the cumulative amount of funds which may be obligated for a specific purpose.
A. Can’t spend more than this
B. Ex – Representation funds – CDR’s social fund – Reg AR tells you the amount of money that can be spent on Alcoholic beverages for a unit’s function
C. Ex. Flying Hours, OPTEMPO (Operational Tempo. The Pace Of An Operation Or Operations; Includes All Of The Activities The Unit Is Conducting; Can Be A Single Activity Or Series Of Operations).

53. Administrative Limitations (Cont.)
Floor
Minimum Amount
Specific Purpose
Show Slide 53, Floor
Floor
(2) Floors: Funding 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) floor. Funding for floors not utilized is subject to withdrawal by higher command.
NOTE: Funding Floor is the minimum amount of funding that can be obligated toward a program or project that has been allotted by a higher authority.
A. Must spend at least this much for a specific purpose
B. Ex – Environmental compliance or RPMA (Real Property Maintenance)
Example: Water Pollution Control.
This is a grant to State and interstate agencies authorized under the Clean Water Act. Purpose of the program:
Pollution control grants are awarded to assist in administering programs for the prevention, reduction, and elimination of water pollution, including programs for the development and implementation of ground-water protection strategies.

54. Administrative Limitations (Cont.)
Target
Control of Resources
Budgetary Allowance
Can Be Exceeded
Show Slide 54, Target
Target
(3) Targets: a prescribed goal used as a management tool to control resources, budgetary allowance that can be exceeded.
A. Just a goal – can be exceeded
B. Used with activities on an installation

55. Administrative Limitations (Cont.)
Fence
Specific purpose
Reduces flexibility
Show Slide 55, Fence
(4) Fences: 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.
A. Money blocked for a specific thing
B. Can only be spent for that specific purpose
C. Ex – Counter Narcotics, CONOPS (Contingency Operations), OPTEMPO (Operational Tempo. The Pace Of An Operation Or Operations; Includes All Of The Activities The Unit Is Conducting; Can Be A Single Activity Or Series Of Operations).
D. also Flying hours – Some Operations & Maintenance (OMA) is fenced to fund 14 ½ hours / month / crew

56. LSA #3 Check on Learning Q: What are the two methods of funding?
A: Formal and Informal
Q: What are the three types of funding authority?
A: DOA-Direct Obligation Authority
FRA-Funded Reimbursement Authority
ARA-Automatic Reimbursement Authority
Show Slide 56, Check on Learning
NOTE: Conduct a check on learning and summarize the learning activity.
Q: What are the two methods of funding?
A: Formal and Informal
Q: What are the three types of funding authority?
A: DOA, FRA, ARA

57. LSA #3 Summary Show Slide #57: LSA #3 Summary
Facilitator's Note: On the final part of the lesson, we discussed the flow of funds within Funds Distribution including the two types of funds distribution, types of funding authorization, and administrative limitations.
“Or”
NOTE: Have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer.

58. Questions Show Slide 58, Questions
Note: Restate TLO and ask students if the have any questions
Action: Identify the Funds management Process
Conditions: Given access to financial management documents and DFAS-IN Regulation 37-1, and DFAS-IN Manual FY
Standards: Apply Funds Management and procedures IAW DFAS-IN Regulation 37-1 and DFAS-IN Regulation with 80% accuracy.

59. TLO Summary Action: Identify the Funds Management Process
In a classroom environment using doctrinal and administrative publications, practical exercises, personal experience, handouts, discussion and access to GFEBS
With at least 80% accuracy, learners must demonstrate proficiency with:
Check funds management procedures
Recognize the funds distribution process
Conditions:
Show Slide #59: TLO Summary
Facilitator’s Note: NOTE: Reiterate TLO
Action: Identify the Funds Management Process
Conditions: In a classroom environment using doctrinal and administrative publications, practical exercises, personal experience, handouts, discussion and access to GFEBS.
Standards: With at least 80% accuracy, learners must demonstrate proficiency with:
Check funds management procedures
Recognize the funds distribution process
Standards: