Maintain Commitment and Obligation Records AS OF: October 2012 1 - PowerPoint PPT Presentation

Financial Management School You Can’t Afford to go to War Without us! Maintain Commitment and Obligation Records AS OF: October 2012 1

Financial Management School You Can’t Afford to go to War Without us! Terminal Learning Objective Action : Maintain Commitment and Obligation Records Condition : Given access to DFAS-IN Regulation 37-1, DoDFMR Volume 3 (Chapters 8 & 15) and DoDFMR Volume 14; standard office supplies and equipment, and awareness of Operational Environment (OE) variables and actors. Standard: Identify stages of expenditure transactions, identify the flow and receipt of funds, and maintain commitment and obligation records with a minimum of 75% accuracy. AS OF: October 2012 2

Financial Management School You Can’t Afford to go to War Without us! Stages of an Expenditure Transactions 1. Authority Received/Funding 2. Commitment 3. Obligation 4. Accrued Expenditure 5. Expense 6. Disbursement AS OF: October 2012 3

Financial Management School You Can’t Afford to go to War Without us! Types of Funding Authorities Authorization provided on the funding document to incur obligations against the government funds Direct Obligation Automatic Authority (DOA) Reimbursement Funded Authority (ARA) Reimbursement Authority (FRA) AS OF: October 2012 4

Financial Management School You Can’t Afford to go to War Without us! Commitment • An administrative reservation of funds which authorizes the creation of an obligation without further approval by the certifying officer. Engagement • Commitments are recorded in GFEBS using Transaction Code FMY1 AS OF: October 2012 5

Financial Management School You Can’t Afford to go to War Without us! Obligation • A legal reservation of funds which the government is legally bound to pay a known or estimated amount at a specific time. Marriage • FMZ1 Simulation AS OF: October 2012 6

Financial Management School You Can’t Afford to go to War Without us! Accrued Expenditure/Expense • Accrued Expenditure - The actual or constructive receipt of supplies and/or services for which a valid obligation has been incurred. • Expense - The total value of goods and/or services consumed in accomplishment of the mission or task. AS OF: October 2012 7

Financial Management School You Can’t Afford to go to War Without us! Disbursement • A payment of a legal liability of the government which decreases the accountability of the Disbursing Officer (DO) making the decision AS OF: October 2012 8

Financial Management School You Can’t Afford to go to War Without us! Check Check On Learning On Learning AS OF: October 2012 9

Financial Management School You Can’t Afford to go to War Without us! Funds Distribution Congress (appropriation) Office of Management and Budget (OMB) (apportion funds to lower level) Headquarters Dept. of the Army HQDA (allocate funds to lower level) (Level 1) Special and General Funds Center ACOM/SOA/GOA/DRU, etc (allot/allow funds to lower level) (Level 2) Installations (sub-commands) Subordinate Activity/elements/CMD (Level 3) (Level 4) Subordinate Units AS OF: October 2012 10

Financial Management School You Can’t Afford to go to War Without us! Flow of Funds Congress HQDA Office of Management and (level 1) Budget (OMB) ACOM (TRADOC) Installations(FTJ) (level 2) (level 3) Subordinate Activities Subordinate Units AS OF: October 2012 (level 4) (lower level)

Financial Management School You Can’t Afford to go to War Without us! Methods of Funding • Formal distribution - The funding document is subject to the Anti-Deficiency Act Title 31 USC . Formal distribution is the Level 1 through level 4 funding. (higher down to Instillation) • Informal distribution of funds is made on a Funding Allowance Document also known as a funding document. It is NOT subject to the Anti-Deficiency Act Title 31 but could lead to a Title 31 violation AS OF: October 2012 12

Financial Management School You Can’t Afford to go to War Without us! Methods of Funding cont. -Transaction Code FMBB implements funds control at Level 1 and Funds distribution at Levels 1 - 4. Funds distribution in GFEBS is made in Versions:  Version 1 (Planned/AFP)  Version 0 (Actual/Allotment) -Funds distribution must be accompanied by a cash allocation from the Treasury Warrant. The Funds Execution Controller must create a Journal Voucher (JV) using transaction code FB50 to support funds distribution for new appropriations, transfers, contingency appropriations, or rescissions. AS OF: October 2012 13

Financial Management School You Can’t Afford to go to War Without us! Funds Distribution Cont. Funds Distribution and Control are ongoing processes within the Army and are made up of the following elements: - Funds Control - Above HQDA - Funds Distribution - HQDA and below - Formal Distribution - Levels 1, 2, 3, and 4 - Informal Distribution - Occurs below Level 4 Funds Distribution and Control is used to move funds from: - Base appropriation - Contingency appropriations, reprogramming, recoveries, transfers, etc. AS OF: October 2012 14

Financial Management School You Can’t Afford to go to War Without us! Funds Distribution Cont. • Transaction Code FMBB implements funds control at Level 1 and Funds distribution at Levels 1 - 4. 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. AS OF: October 2012 15

Financial Management School You Can’t Afford to go to War Without us! Check Check On Learning On Learning AS OF: October 2012 16

Financial Management School You Can’t Afford to go to War Without us! Types of Funding Authorization Direct Obligation Authority Constitutes Funding Received by Installation Funded Reimbursement Authority Automatic Allows Funding to be Reimbursement Increased by Amount of Authority Orders Received Total Financial Authority AS OF: October 2012 17

Financial Management School You Can’t Afford to go to War Without us! 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 AS OF: October 2012 18

Financial Management School You Can’t Afford to go to War Without us! 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 AS OF: October 2012 19

Financial Management School You Can’t Afford to go to War Without us! 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 AS OF: October 2012 20

Financial Management School You Can’t Afford to go to War Without us! Administrative Limitations • Imposed on the Use of Funds • Specific Dollar Amounts • May be legal or regulatory • Types: • Ceiling • Floor • Target • Fence AS OF: October 2012 21

Financial Management School You Can’t Afford to go to War Without us! FUNDING TARGET MEMORANDUM AJKG-B 1 October 20** MEMORANDUM FOR Commander, 93 rd Infantry Division, ATTN: Resource Management Officer SUBJECT: First Quarter (FY**) Funding Target 1. FUNCTIONAL AREA: 131096QLOG 131096FAHB FUNDS CENTER/ COST CENTER: A2ABN2ABN00 A2ACN2ACN00 DODAAC: ZAAHA Z16CO 2. Direct Obligation (Initial) a. Quarter $ 590,000.00 $260,000.00 b. Annual $2,400,000.00 $985,000.00 3. Notes: 1. Funded Reimbursement Authority (FRA) – Not Authorized 2. Automatic Reimbursement Authority (ARA) – Authorized based on receipt of orders. 4. a. 131096QLOG (A2ABN2ABN00) COST ELEMENT/ COMMITMENT ITEM QTR ANNUAL 6100.2100 $ 90,000.00 $980,000.00 6100.2300 300,000.00 1,200,000.00 6100.2500 $200,000.00 20,000.00 $590,000.00 $2,200,000.00 b. 131096FAHB0 (A2ACN2ACN00) COST ELEMENT/ COMMITMENT ITEM QTR ANNUAL 6100.2300 $100,000.00 $400,000.00 6100.2500 12,000.00 445,000.00 6100.2600 35,000.00 140,000.00 $147,000.00 $985,000.00 AS OF: October 2012 22