1. Principles of Cost Analysis and Management
Calculate Unobligated Balance
Principles of Cost Analysis and Management
Show Slide #1: Calculate Unobligated Balance
References:
FM Financial Management Operations, Apr 14
Handouts and Excel Spreadsheets
Facilitator Material: Each primary facilitator should possess a lesson plan, slide deck, course handouts, access to Excel spreadsheets, and practical exercises with the answer key, and a summary sheet containing FM 1-06 Financial Management Operations, Apr 14. All required printed reference material, and technical manuals will be provided by the Schoolhouse.
Learner Material: Learners should possess all required printed reference material, course handouts, access to Excel spreadsheets, and a summary sheet containing FM 1-06 Financial Management Operations, Apr 14 and standard classroom supplies.

2. Questions to Consider Does “the Government” overspend its budget?
Who decides how much to spend?
How do managers make sure they don’t overspend?
Show Slide #2: Concrete Experience (Questions to Consider)
Facilitator’s Note: (Concrete Experience 5 minutes) Present learners the slide questions. Ask learners what their thoughts are on “Spending / Overspending?”
Facilitator’s Note: (Publish and Process 5 minutes) The critical portion of this part of the ELM process is to force the learners to reflect. Ask a series of thought influencing questions, for example: Do “the Government” overspend its budget? Who decides how much to spend? How do managers make sure they don’t overspend?

3. Terminal Learning Objective
Action: Calculate Unobligated Balance
Condition: 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):
Describe steps in budgetary process
Explain budgetary terminology
Demonstrate the purchasing process
Explain “good financial management”
Show Slide #3: Terminal Learning Objective (TLO)
Facilitator’s Note: State the TLO
Action: Calculate Unobligated Balance
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):
Describe steps in budgetary process
Explain budgetary terminology
Demonstrate the purchasing process
Explain “good financial management”
Facilitator’s Note: Throughout this lesson, solicit from learners the challenges they experienced in the current operational environment (OE) and what they did to resolve them. Encourage learners to apply at least 1 of the 8 critical variables: physical environment, political stability of the state, sociological demographics, infrastructure, military capabilities, information, time, and economics.
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. Hazard Identification: Electrical Shock, Fire, Slippery Floors, Physical Injure/Strain, Tripping Tight Spaces in Classroom, and Influenza. Hazard controls: Primary Instructor (PI) will ensure: All electrical cords are properly stored under desks, liquid containers have lids on them and all spills are immediately cleaned and mopped and allowed to completely dry before allowing learners/personnel to walk on them. All chairs are ergonomically designed, adjust to individual preference and that all learners are awake and paying attention in class. All cables/cords are properly plugged in, sheathed, and secured along tables, walls, and ceilings. No damaged or frayed cords/cables will be used. PI will brief proper hand washing techniques, the use of hand sanitizer, and evacuation procedures. All trash will be removed daily.
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: Learners will take week one examination. Learners must score 80% or higher and International officers must score 70% or higher.
Instructional Lead In: Calculating an Unobligated Balance is a lesson designed for the learners to apply the steps in the budgetary and purchasing processes in the performance of duties as a Financial Manager. This lesson should also assist Financial Managers with understanding the budgetary terminology and explaining “good financial management.

4. Financial Planning and Control
You have been hired as a budget consultant by the Simmons family
Gomer, Madge, Bert, Lacy and Maddie
Gomer’s monthly paycheck is estimated to be $1000.
How should they spend it?
Show Slide #4: Describe steps in budgetary process
1. Learning Step Activity 1: Describe steps in budgetary process
Method of Instruction: DSL-Discussion (small or large group discussion)
Facilitator to Student Ratio: 2:25
Time of Instruction: 20 Minutes
Media: PowerPoint, Printed Reference Material
Facilitator’s Note: All handouts and learner materials for this lesson are located in Tab 23
Facilitator's Note: Before facilitating this lesson, ask the learners which of the 21st Century Soldier (Learner) 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. For this lesson these competencies should be talked about.
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: We will demonstrate the budgetary process using this family example.
You have been hired as a budget consultant by the Simmons family: Gomer, Madge, Bert, Lacy and Maddie (stunt doubles for a popular cartoon family)
Gomer’s monthly paycheck is estimated to be $ How should they spend it?

5. The Envelope System
Predetermines amounts to be spent for various needs.
Sets money aside for specified purpose.
Prohibits spending for other than intended purpose--can’t take money from one envelope and put in another.
Show Slide #5: Describe steps in budgetary process (Cont.)
Facilitator’s Note: The budgetary process, although on a much larger scale, is very much like the envelope system that individuals sometimes use to manage their personal finances. The basic idea is to predetermine how much will be spent for each need or want. Examples: Rent, groceries, clothes, household needs, etc.
Then, set that money aside in an envelope for that purpose. When the money in the grocery envelope is gone, we are done spending on groceries. When the money in the clothing envelope is gone, we are done spending on clothing.
The cardinal rule is that you can’t take from one envelope and put into another.

6. Proposing the Budget Proposals: Gomer’s Madge’s Kids’ Budget Items:
Rent
500
Groceries
Gomer
Madge
Kids
Savings
Total
1000
Show Slide #6: Describe steps in budgetary process (Cont.)
Facilitator’s Note: Choose class members to represent each of the interested parties to the budget: Gomer, Madge and the kids. Have a large envelope to represent Gomer’s estimated pay. Fill the envelope with play money totaling $ Have another large envelope for each of the budget items: Rent, groceries, Gomer, Madge, kids and savings. You will also need envelopes for: Obligations and Expenditures.
Have each party propose a budget. Remind them that each party will propose a budget that favors his/her/their own interests.
The total of the planned spending + planned savings must add up to $1000.
Key point: many parties PROPOSE budgets.
Notice that $500 is already earmarked for rent. There are many elements of the budget that are non-negotiable. Entitlements that are based on eligibility (such as Medicare) generally aren’t up for negotiation. In the military, military and civilian pay are significant components of the budget that aren’t discretionary. Unfunded requirements (UFRs) are also non-negotiable by definition. The portion of the budget that is actually discretionary may be relatively small.

7. Regarding Budgets
The budget is legal and an accounting event. What does this mean?
Many entities propose budgets
Who enacts the budget?
Budgets authorize spending based on estimated revenue
Where is the real money?
Can we plan to spend more than we expect to receive?
Show Slide #7: Describe steps in budgetary process (Cont.)
Facilitator’s Note: The budget is a legal event. The voting body (Congress, city council, state legislature, school board, etc.) votes on the budget and it becomes law. It is an accounting event because it will be recorded into the accounting system. This formalizes the budget and provides an accounting record of the intent of the voting body.
Many entities propose budgets. The President proposes a budget. The various branches and departments propose (or request) budgets for their particular area. Lobbyists, citizens, and other interested parties have their input into the budget process.
It is the legislative body (Congress, state legislature, city council, school board, etc.) who enacts the budget. The budget, from a federal standpoint, is literally an Act of Congress. It is law and it must be followed. The term “budget” has a very different meaning in governmental entities than in private corporations or private not-for-profit entities. In government entities the budget is law. In private entities a budget is a formalized internal managerial plan, which is not legally binding and is not recorded in the accounting system. Therefore, in this course, we will distinguish between “budget” (meaning the legal and accounting event) and “plan” (meaning the internal managerial plan.)
The budget authorizes spending based on estimated revenues, and spending can commence even before revenues are collected.
There is no real money involved until actual revenues are collected and actual payments are made for goods and services received.
Can we plan to spend more than we expect to receive? Well, we know that the federal government does this all the time. But most state and local governments have balanced budget laws which mean they can’t intentionally create deficits. However, if the entity has a surplus from a prior period (“savings” or fund balance) then they may authorize spending that exceeds the expected revenues for the period and uses that surplus from the prior period.

8. Enacting the Budget Budget Items: Amount: Rent Groceries Gomer Madge
Kids
Savings
Total
1000
Show Slide #8: Describe steps in budgetary process (Cont.)
Facilitator’s Note: Have the class discuss and vote on a budget. The class may adopt one of the proposals in its entirety or arrive at a compromise. The total planned spending + planned savings must add up to $1000 (estimated revenue). We are assuming a balanced budget requirement. Once the budget has been enacted, take the fake money from Gomer’s estimated pay envelope and distribute it according to the budget to the various envelopes. If there isn’t exact change, it’s ok to tear the play money to represent the correct amounts. It’s not real money, it’s symbolic. The budget isn’t real money either.

9. The Budgetary Equation
Estimated
Revenues =
Appropriations +
Planned Change
In Fund Balance
Show Slide #9: Describe steps in budgetary process (Cont.)
Facilitator’s Note: The budgetary equation is represented here in green. The budgetary equation only represents a plan. If everything goes as planned, the Fund balance will change accordingly. The budget is a government-wide event. For the federal government, the budget is passed on a national level. The planned change in fund balance is for the entire government entity. Fund Balance is the fund accounting equivalent of Financial position. The Budget represents a plan for the change in the funds’ financial position.

10. Recording the Budget
Estimated
Revenue =
Appropriations +
Planned Change
in Fund Balance
1000
If Estimated Revenues > Appropriations, Fund Balance will Increase
If Appropriations > Estimated Revenues, Fund Balance will Decrease
Show Slide #10: Describe steps in budgetary process (Cont.)
Facilitator Note: Instructions/ Fill in the budget that the students enact. If there had been a surplus and the legislative body had voted to appropriate it, the planned change would be negative. Example: Let’s say that the Simmons’ had $50 in the bank and decided to spend it. The budgetary equation would read: Estimated Revenue $1000 = Appropriations $ Planned Change in Fund Balance -$50. if everything went as planned during the month, at the end of the month the bank account balance would be reduced to zero.

11. LSA #1 Check on Learning
Q1. What is the first step in the budget process? Q2. If estimated revenues are $50 and appropriations are $55, what is the planned change in Fund Balance?
A1. The budget process starts with proposals. On a federal level the proposal comes from OMB (Office of Management and Budget)
Show Slide #11: LSA #1 Check on Learning
Facilitator’s Note: Ask the following questions; Facilitate the answers given.
Q1. What is the first step in the budget process?
A1. The budget process starts with proposals. On a federal level the proposal comes from OMB (Office of Management and Budget)
Q2. If estimated revenues are $50 and appropriations are $55, what is the planned change in Fund Balance?
A2. $(5)
A2. ($5)

12. LSA #1 Summary
During this block we discussed the ‘Envelope System’ as it pertains to the Budgetary process. We discussed the budgetary equation, the proposal / regarding / and enacting of a budget while finishing up with it’s recording.
Show Slide #12: LSA #1 Summary
Facilitator’s Note: During this block we discussed the ‘Envelope System’ as it pertains to the Budgetary process. We discussed the budgetary equation, the proposal / regarding / and enacting of a budget while finishing up with it’s recording.

13. The Budgetary Accounts
Exist solely for the purpose of recording and tracking the budget
Budget = a legally binding spending plan
Account Titles:
Estimated Revenue = Expected Income
Appropriations = Authorized Spending
Budgetary Fund Balance = Planned Change
Unreserved Fund Balance = Savings
Show Slide #13: Explain budgetary terminology
Learning Step/Activity 2: Explain budgetary terminology
Method of Instruction: DSL-Discussion (small or large group discussion)
Facilitator to Student Ratio: 2:25
Time of Instruction: 20 Minutes
Media: PowerPoint, Printed Reference Material
Facilitator’s Note: As we stated before, the word “Budget” refers to a legally binding spending plan. While the collection of actual revenues involves economic variables that may be beyond the control of the legislative and executive branches of the government (the legislative branch ENACTS the budget and the executive branch EXECUTES the budget), expenditures can be controlled, so it is the spending portion of the budget that is legally binding. The Anti-Deficiency Act prohibits the overspending of the appropriation, but has no such prohibition for failing to collect estimated revenues or for over-collecting revenues.
Estimated Revenues refers to the expected income.
Appropriations refer to authorized spending. When an agency or department receives an appropriation, they have the full authority of the government to spend that money. Vendors and contractors will permit the agency or department to order and receive goods and services even though there is no “real” money “in the envelope”. The appropriation is backed by the government and the government will honor the liabilities created by the expending of the appropriation.
Budgetary Fund Balance refers to the planned change in the fund balance. This can be either a planned increase, a planned decrease, or a plan to not change at all (meaning that appropriations equal estimated revenues.)
Unreserved Fund Balance. This is technically NOT a budgetary account. It represents real money that is left over from prior periods. It is the savings account, if you will. It’s included here because, even though it’s not a budgetary account, it is most definitely affected by the budgetary process. In federal entities this is called “Cumulative results of operations”.
The Federal budget is prepared at a national government level. Most government agencies generate very little revenue. The bulk of federal revenues are collected by the Treasury department. The budgetary reporting on an agency level is mainly designed to track appropriations, obligations and expenditures.

14. Spending Authority Allotment (HQDA) Apportionment (OMB) Appropriation
(Congress)
Army Q1
Major Command
Functional Area
Funded Program Q2 Q3 Q4
Show Slide #14: Explain budgetary terminology (Cont.)
Facilitator’s Note: Congress gives very high level appropriations to major agencies in the federal government. DoD or DA might receive an actual appropriation. Apportionments are approved by OMB (Office of Management and Budget). In essence the funds are only released one quarter at a time. Most funds are probably spent evenly throughout the year, so this approach would make sense.
However, in case of large purchases, such as weapons systems or equipment, the apportionment of one quarter at a time might not make sense. Allotments are made at the Agency head level (such as Army Headquarters.) Funds may be allotted to major commands or to Functional Areas or Funded Programs (GFEBS Master Data Elements.)
Most Army managers/leaders deal with a small part of an allotment: a piece of the quarterly apportionment of the appropriation. In our example we will omit the apportionment and allotment steps. All three, appropriation, apportionment, and allotment put “money in the envelope” for the spending organization. The apportionment and allotment just divide the original appropriation among many smaller envelopes.

15. Controlling the Budget
Appropriations, Obligations  Expenditures
Appropriations ensure that funds are spent as the voting body intends
The obligation process ensures that appropriations are not overspent
Estimated Revenues  Revenues
Estimated revenues give a basis of comparison for actual revenues
Show Slide #15: Explain budgetary terminology (Cont.)
Facilitator’s Note: Appropriations and obligations are designed to control expenditures.
Appropriations are a legally binding expression of the will of the legislative body, authorizing the departments of the executive branch to make expenditures. The government agencies and departments cannot spend without an appropriation. Conversely, they cannot elect NOT to spend. The executive branch can’t “kill” a program authorized by Congress by refusing to spend the money. Appropriations also provide a means for measuring compliance with budget and performance in relation to budget.
The obligation process, which we will describe in the next few slides, is designed to ensure that appropriations are not overspent. It is a formalized accounting mechanism to identify funds that are not available to be spent because of outstanding purchase orders.
The estimated revenues also exist as a basis for comparing actual revenues to the estimate. The measure of performance in this case probably has more to do with the ability to accurately estimate the revenues to be collected. In other words, it’s less a measure of budgetary compliance and more a measure of the ability to estimate.

16. Spending Process Show Slide #16: Explain budgetary terminology (Cont.)
Expenditure
Obligation
Commitment
Liability
Payment
Show Slide #16: Explain budgetary terminology (Cont.)
Facilitator’s Note: Authorized agency employees plan or reserve allotted budget authority as a commitment prior to the actual ordering.
Once an order is placed, then the funds are considered obligated i.e. taken out of the envelope.
Once goods or services have been received, an expenditure is recorded.
If the expenditure is not paid in cash immediately, then a liability must be recorded.
The final step in the process is payment of the liability.
** In our exercise we will omit the commitment process.

17. Budgetary Accounting
Provides a control mechanism to prevent overspending funds.
Does proper budgetary accounting prevent deficits? Why or why not?
It DOES prevent overspending.
It does NOT prevent revenue shortfalls.
It does NOT prevent over-appropriating by the legislative body.
Show Slide #17: Explain budgetary terminology (Cont.)
Facilitator’s Note:
Provides a Control Mechanism to Prevent Overspending Funds.
Does proper budgetary accounting prevent deficits? Why or why not?
It Does prevent overspending,
It does Not prevent revenue shortfalls.
It does Not prevent over-appropriating by the legislative body.

18. LSA #2 Check on Learning
Q1. What mechanisms exist to control expenditures? Q2. What is the step in the spending authorization process that releases funding quarter by quarter?
A1. Appropriations and Obligations
A2. Apportionment
Show Slide #18: LSA #2 Check on Learning
Facilitator Note: Ask the following questions; Facilitate the answers given. Inform the students that the remaining summaries will be given at the end!
Q1. What mechanisms exist to control expenditures?
A1. Appropriations and Obligations
Q2. What is the step in the spending authorization process that releases funding quarter by quarter?
A2. Apportionment

19. Gomer Makes a Purchase
Signs up for 3-month trial membership to the Doughnut of the Month Club, $60
Remove $60 from Gomer’s envelope
Place in the “Obligated” envelope
Key Point: Ordering triggers an obligation
Show Slide #19: Demonstrate the purchasing process with the envelope system
Learning Step/Activity 3: Demonstrate the purchasing process with the envelope system
Method of Instruction: DSL-Discussion (small or large group discussion)
Facilitator to Student Ratio: 2:25
Time of Instruction: 15 Minutes
Media: PowerPoint, Printed Reference Material
Facilitator’s Note: Demonstrate the purchasing process with the envelope system
Signs up for Donut of the Month Club, $60 (Three month trial)
Remove $60 from Gomer’s envelope
Place in the “Obligated” envelope
Key Point: Ordering triggers an obligation

20. Gomer Makes a Purchase
Receives first month’s shipment of Doughnuts with invoice for $20:
Remove $20 from the “Obligated” envelope and replace in Gomer’s envelope
Remove $20 from Gomer’s envelope and place in “Expenditures” envelope
Key Point: Receiving goods and services triggers an expenditure
Show Slide #20: Demonstrate the purchasing process with the envelope system (Cont.)
Facilitator’s Note: Receives first month’s shipment of Doughnuts with invoice for $20:
Remove $20 from the “Obligated” envelope. This is the amount estimated for one month’s worth of the three-month membership.
Replace the $20 in Gomer’s envelope The obligation no longer exists once the goods have been received. However, the money won’t stay there for long.
Remove $20 from Gomer’s envelope and place in “Expenditures” envelope.
Key Point: Receiving goods and services triggers an expenditure. Expenditures must be recorded at the actual amount.

21. Tracking Gomer’s Unobligated Balance
How much does Gomer have left to spend?
Assume his original appropriation was $100
Appropriations -
Open
Obligations
Expenditures
Unobligated
Balance =
Show Slide #21: Demonstrate the purchasing process with the envelope system (Cont.)
Facilitator’s Note: The most important question to answer, from a budget control standpoint, is “How much does Gomer have left to spend?”
Assume his original appropriation was $100
The “unobligated balance” of the appropriation or, the amount remaining in the envelope, is equal to Appropriations – open obligations – Expenditures.

22. Tracking Gomer’s Unobligated Balance (Cont.)
Description
Obligations
(-)
Expenditures
Unobligated Balance
Gomer’s appropriation
+100
Balance
100
Orders donuts
+60
-60 60 40
Receives donuts
-20
+20
Invoice for donuts 20
Show Slide #22: Demonstrate the purchasing process with the envelope system (Cont.)
Facilitator’s Note: Think of the appropriation as putting money into an envelope or into an account to be spent for a particular purpose. There are two things that can reduce the remaining unobligated balance:
Outstanding obligations (orders placed but not yet received)
Expenditures (goods or services received).
Note: Commitments don’t officially reduce the remaining balance, although should be considered for management purposes. Unobligated balance less outstanding commitments equals uncommitted balance.
When Gomer orders donuts, the money in his envelope (unobligated balance) decreases. When he receives donuts, the money momentarily goes back into his envelope because the obligation is reversed. But then the expenditure is increased, which reduces the balance in his envelope (unobligated balance).

23. Key Points Ordering goods or services triggers an obligation.
Prevents over-expending of funds
Receiving goods or services triggers an expenditure.
Reverse obligation
Record expenditure
Salaries, wages and other recurring expenditures are not obligated, but may be committed.
Show Slide #23: Demonstrate the purchasing process with the envelope system (Cont.)
Facilitator’s Note: Review of key points:
Ordering goods or services triggers an obligation.
Prevents over-expending of funds
Receiving goods or services triggers an expenditure.
Reverse obligation
Record expenditure
Salaries, wages and other recurring expenditures are not obligated, but may be committed.

24. LSA #3 Check on Learning
Q1. What is the equation to calculate unobligated balance? Q2. What is the event that triggers and expenditure?
A1. Appropriation – Open Obligations – Expenditures = Unobligated Balance
Show Slide #24: LSA #3 Check on Learning
Facilitator Note: Ask the following questions; Facilitate the answers given.
Q1. What is the equation to calculate unobligated balance?
A1. Appropriation – Open Obligations – Expenditures = Unobligated Balance
Q2. What is the event that triggers an expenditure?
A2. Receiving goods or services
A2. Receiving goods and/or services

25. Good Financial Management
If Gomer’s budget is $100, what happens if he spends more than $100?
What happens if he spends less?
What accounting mechanisms exist to measure the quality of Gomer’s spending?
Show Slide #25: Explain “good financial management”
Learning Step/Activity 4: Explain “good financial management”
Method of Instruction: DSL-Discussion (small or large group discussion)
Facilitator to Student Ratio: 2:25
Time of Instruction: 20 Minutes
Media: PowerPoint, Printed Reference Material
Facilitator’s Note: If Gomer spends more than his budget, he can go to jail under the Anti-Deficiency Act. In reality, no government official as ever gone to jail under this provision. However the threat exists, and it is taken seriously. There are instances where spending beyond the original appropriation may become necessary. In this case, the budget may be amended. Or, high level officials perform “sweeps” to find departments and branches that have not obligated all of their funds. Those funds may then be used to fund these additional expenditures (they must be within the same general area. Defense funding “sweeps” can’t be used for spending in Education, for example.
If Gomer spends less than his budget, it is very likely that his budget will be less next time around. This is the “use it or lose it” mentality.
There are no accounting mechanisms in place to measure the quality of Gomer’s spending. The accounting process is only able to measure how much he spent and whether he spent it according to the budget. The definition of good financial management, under the budgetary process, is to spend 99.9% of the budget.

26. Excel Spreadsheet Formula
Example: Calculate Unobligated Balance
Show Slide #26: Excel Spreadsheet Formula
Facilitator‘s Note: Example: Calculate Unobligated Balance. Use Crawl / Walk / Phase Method of Instructions.

27. The Envelope System Spreadsheet
Enter estimated revenue and the appropriation for each item. The spreadsheet calculates the planned change in the Fund Balance.
Show Slide #27: Excel Spreadsheet Formula Example (Cont.) Facilitator’s Note: Calculate Unobligated Balance. Use the Crawl / Walk / Phase Method of Instructions.

28. The Envelope System Spreadsheet (Cont.)
Show Slide #28: Excel Spreadsheet Formula Example (Cont.) Facilitator’s Note: Calculate Unobligated Balance. Use the Crawl / Walk / Phase Method of Instructions.
The Unobligated Balance tab shows the result of Gomer’s activity on the entire family’s unobligated balance

29. The Envelope System Spreadsheet (Cont.)
To see only Gomer’s activity, enter only his info on the “Create Budget” tab.
Show Slide #29: Excel Spreadsheet Formula Example (Cont.) Facilitator’s Note: Calculate Unobligated Balance. Use the Crawl / Walk / Phase Method of Instructions. 28

30. LSA #4 Check on Learning
The Check on learning will be conducted after the Practical Exercise (PE).
Show Slide #30: LSA #4 Check on Learning
Facilitator's Note: The Check on learning will be conducted after the Practical Exercise (PE).

31. LSA #4 Summary
During this lesson, we had class participation in the execution, proposing, enacting, and the eventual recording the budget (as it pertains to budgetary accounting).
Show Slide #31: LSA #4 Summary
Facilitator’s Note: During this lesson, we had class participation in the execution, proposing, enacting, and the eventual recording the budget (as it pertains to budgetary accounting).

32. TLO Check on Learning Q1. The budget is _________and an______________.
Q2. Many entities ____________ budgets.
Q3. Ordering goods or services triggers an___________.
Q4. Receiving goods or services triggers an__________.
A1. Legal; Accounting event.
A2. Propose
Show Slide #32: TLO Check on Learning
Facilitator Note: Ask the following questions; Facilitate the answers given.
Q1. The budget is __________ and an _________________.
A1. legal; accounting event.
Q2. Many entities ____________ a budgets.
A2. Propose
Q3. Ordering goods or services triggers an _______________.
A3. obligation.
Q4. Receiving goods or services triggers an _______________.
A4. expenditure.
A3. Obligation.
A4. Expenditure.

33. Lesson Summary
Calculating an Unobligated Balance is a lesson designed for the learners to apply the steps in the budgetary and purchasing processes in the performance of duties as a Financial Manager.
This lesson should also assist Financial Managers with understanding the budgetary terminology and explaining "good financial management.
What are your questions?
Show Slide #33: Lesson Summary
Facilitator’s Note: Calculating an Unobligated Balance is a lesson designed for the learners to apply the steps in the budgetary and purchasing processes in the performance of duties as a Financial Manager.
This lesson should also assist Financial Managers with understanding the budgetary terminology and explaining "good financial management.
What are your questions?

34. TLO Summary Show Slide #34: TLO Summary
Action: Calculate Unobligated Balance
Condition: 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):
Describe steps in budgetary process
Explain budgetary terminology
Demonstrate the purchasing process
Explain “good financial management”
Show Slide #34: TLO Summary
Facilitator’s Note: Restate the TLO
Action: Calculate Unobligated Balance
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):
Describe steps in budgetary process
Explain budgetary terminology
Demonstrate the purchasing process
Explain “good financial management”
“Or”
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.

35. Practical Exercises Show Slide #34: Deploy the Practical Exercise (PE)
Facilitator’s Note: Run Phase Method of Instructions. This is your opportunity to apply what you have learned about accounting. You will have 15 minutes to complete the practical exercise (PE). Do your best to complete the PE in the allotted time. We will conduct an review of the PE as a group.