1. Determine Different Accounting Methods Used by Different Fund Types
Principles of Cost Analysis and Management
Show Slide #1: Determine Different Accounting Methods Used by Different Fund Types
References:
FM Financial Management Operations, Apr 14
DFAS-IN Regulation 37-1 Finance and Accounting Policy Implementation, 1 Jan 00
Handouts
Facilitator Material: Each primary facilitator should possess a lesson plan, slide deck, course handouts, practical exercises with the answer key, and a summary sheet containing FM 1-06 Financial Management Operations, Apr 14 and DFAS-IN Regulation 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, and standard classroom supplies.

2. Food for Thought
Q1. Does the way governmental activities are funded have an impact on how governmental activities are managed? Q2. How? Why or why not?
Show Slide #2: Concrete Experience (Food for Thought)
Facilitator’s Note: (Concrete Experience 5 minutes) Discuss the following scenario with the learners. Explain the “what-if’s” in planning? How does it relate to your business model as per the planning, assuming, and executing of plans and/or products.
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:
Q1. Does the way governmental activities are funded have an impact on how governmental activities are managed?
Q2. How, Why or Why not?
Facilitator’s Note: The budgetary accounting method used by appropriated funded organizations tends to focus managers on spending 99.9% of the budget rather than on managing costs. Research suggests that non-appropriated funded organizations, which have the fiscal pressure of setting user fees to cover costs, are managed more like businesses and their accounting methods are more like businesses. These organizations must have a good understanding of their costs in order to set user fees, and they must closely monitor or manage costs to make sure that they break even.

3. Terminal Learning Objective
Action: Determine Different Accounting Methods Used by Different Fund Types
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):
Identify different types of funds
Classify funds by funding mechanism
Classify funds by purpose
Read and Review a Case Study
Show Slide #3: Terminal Learning Objective (TLO)
Facilitator’s Note: Read the TLO
Action: Determine Different Accounting Methods Used by Different Fund Types
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):
-- Identify different types of funds
-- Classify funds by funding mechanism
-- Classify funds by purpose
-- Read and Review a Case Study
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: This is a good chance to find out what the learners understand about Determining Different Accounting Methods Used by Different Fund Types. Cost management is an integral part of the Army‘s stewardship. Financial managers throughout all levels of FM operations – from strategic to tactical – must have a good understanding of costs and manage costs carefully, Their role is critical to meeting expectations of Congress, the public, and the Army in demonstrating effectiveness and efficiency in the application of resources, as budgets in appropriated funded organizations are reduced, managers must manage cost or else cut output of services.

4. Review: Fund Accounting
Tracks flow of resources through funds
Characteristics of funds:
Separate accounting entity within a larger government entity
Self-balancing set of accounts
Produces its own financial statements
Show Slide #4: Identify different types of funds
1. Learning Step Activity 1: Identify different types of funds
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.
1. Character and accountability
6. Communication and engagement (oral, written, and negotiation)
7. Critical thinking and problem solving
9. Tactical and technical competence (full spectrum capable)
Tracks Flow of Resources through Funds
Characteristics of Funds:
Separate Accounting Entity within a larger government entity – It is an accounting entity which means that it:
Has a self-balancing set of accounts. That is, the assets of the fund are equal to the liabilities and fund balances or financial position of the fund.
Produces its own financial statements. In GFEBS, a fund is the smallest accounting unit for which financial statements can be produced. The type of fund will dictate the financial statements that it produces and the basis of accounting that it uses.

5. Types of Funds Management or Working Funds Agency Funds
General Fund
Special Funds
Trust Funds
Revolving Funds
Agency Funds
Management or Working Funds
Show Slide #5: Identify different types of funds (Cont.)
Facilitator’s Note: We will discuss each briefly and give an example. The types of funds used in the federal government are:
Management or Working Funds
Agency Funds
Revolving Funds
Special Funds
General Fund
Trust Funds

6. The General Fund Revenue from general sources
Expended for general purposes
A government entity must have ONE general fund
The General Fund of the United States has many subsidiary appropriation funds
Each appropriation fund has budgetary accounts and proprietary accounts
Show Slide #6: Identify different types of funds (Cont.)
Facilitator’s Note: The general fund accounts for:
Revenue received from general sources. “General sources” usually refers to taxes. In the federal government, the primary tax source is income taxes. But general sources also refers to any revenues that don’t have legal restrictions placed on how they may be spent. For example: revenues collected by a particular agency or entity (such as Lisa’s Lemonade Stand) are NOT considered general revenues because they are specifically used to offset the expenditures of the collecting entity.
Expended for general purposes. The resources of the general fund may be expended according to the wishes of Congress. There are no legal restrictions on the funds.
A government entity must have ONE general fund. There must be one, and only one, general fund. Some very small cities and counties might have a general fund, and no other funds.
The General Fund of the United States has many subsidiary Appropriation Funds. The sheer size of the federal government and its budget dictates that the general fund be sub-divided. The appropriation funds are like “envelopes” within the General Fund. They prevent spending the resources for a purpose other than what was intended by Congress.
Each Appropriation Fund has Budgetary accounts and Proprietary Accounts. Each fund has a self-balancing set of accounts. Each is a separate accounting entity that produces its own financial statements.

7. Special Funds and Trust Funds
Account for resources designated for specific programs or activities
Typically financed by dedicated fees
Track expenditures for these specific purposes
Ex. National Wildlife Refuge Fund
May be legally designated as trust funds
Ex. Social Security’s Old Age and Survivors Insurance Fund
Show Slide #7: Identify different types of funds (Cont.)
Facilitator’s Note: Special Funds and Trust funds account for resources designated for specific programs or activities. The Revenues come from special sources, and must be expended for specific purposes.
Typically financed by dedicated fees. An example of this would be the State of California’s environmental (vanity) license plate program. The additional fee that a car owner pays for the privilege of a personalized license plate is tracked in a separate fund and used for environmental and conservation programs.
Track expenditures for these specific purposes.
A federal example of a Special Fund is the National Wildlife Refuge Fund. It is funded by fees paid by individuals who use the land held by the fund (grazing rights, timber rights, water rights, mineral rights, concessions, sale of products). The funds are used to offset the reduction in tax revenues to the counties in which the lands are located.
May be legally designated as Trust Funds. Special funds may be designated as trust funds. In the federal government, trust funds don’t meet the common definition of a fund where the principal must remain intact and only the interest may be spent. It is only a legal definition and refers to special revenue sources (FICA taxes) or other earmarked funds.
The Social Security’s Old Age and Survivors Insurance Fund is an example of a Special Fund that is legally designated as a Trust Fund.

8. LSA #1 Check on Learning
Q1. Name the threes characteristics of funds? Q2. Which fund type accounts for resources designated for specific programs or activities?
A1.
1. Separate Accounting Entity within a larger government entity.
2. Self-balancing set of accounts
3. Produces its own financial statements.
Show Slide #8: LSA #1 Check on Learning
Facilitator’s Note: Ask the following question; LSA Summary will be given at the end of this lesson.
Q1. Name the three characteristics of Funds?
A1.
Separate Accounting Entity within a larger government entity.
Self-balancing set of accounts
Produces its own financial statements.
Q2. Which fund type accounts for resources designated for specific programs or activities?
A2. Special Fund (or Trust fund, if legally designated as such.)
A2. Special Fund (or Trust fund, if legally designated as such.)

9. Appropriated Fund Reporting
The General Fund, special funds, and trust funds are financed by appropriations.
Budgetary resources are reported according to budgetary basis
Proprietary accounts are reported according to accrual basis
Show Slide #9: Classify funds by funding mechanism
Learning Step/Activity 2: Classify funds by funding mechanism
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
The General Fund, Special Funds, and Trust Funds are financed by appropriations. This means that the primary source of funding is from the Federal Budget. Any revenues generated (even in the Special Funds and Trust Funds) are not expected to exceed or even equal expenditures. Additional expenditures are authorized through an appropriation from Congress. For example, in the National Wildlife Refuge Fund, the receipts from land-use fees total approximately 10 million of the 24 million spent in the fund.
Budgetary resources are reported according to budgetary basis. These funds would prepare a “Statement of Budgetary Resources” as part of their required financial statements.
Proprietary accounts are reported according to accrual basis. To meet the proprietary reporting requirements, these funds would prepare a Statement of Net Cost, Statement of Change in Net Position, and Statement of Net Position.

10. Non-Appropriated Funds
Receive no appropriated funding
Do not maintain budgetary accounts
Do not use the obligation process
Report according to the accrual basis
Show Slide #10: Classify funds by funding mechanism (Cont.)
Facilitator’s Note: Non Appropriated funds receive no appropriated funding. The revenues collected are expected to cover all expenses incurred. Therefore, they do NOT maintain budgetary accounts, nor do they report a “Statement of Budgetary Resources” They do not use the obligation process. Since there is no appropriation, there is no need to keep from overspending the appropriation. Report according to the accrual basis.
In essence, all of their reporting is “proprietary” reporting. They would report a Statement of Activities or Statement of Operations to show their revenues and expenses, and a Statement of Financial Position or Balance Sheet to show their assets, liabilities, and financial position. At the state and local level, these funds are actually called “proprietary funds”.

11. LSA #2 Check on Learning
Q1. Which funding mechanism requires both the budgetary and the proprietary accounts? Q2. Which funding mechanism does not require the obligation process?
A1. Appropriated Funding
Show Slide #11: LSA 2 Check on Learning
Facilitator’s Note: Ask the following Questions; LSA Summary will be given at the end of this lesson.
Q1. Which funding mechanism requires both the budgetary and the proprietary accounts?
A1. Appropriated Funding
Q2. Which funding mechanism does not require the obligation process?
A2. Non-appropriated funding
A2. Non-appropriated funding

12. Revolving Funds
Generate revenues by providing services to general public or to other government entities
Must set user fees to cover costs of providing services
Resources carry over or “revolve” from one period to the next (do not expire)
Ex. U.S. Postal Service
Show Slide #12: Classify funds by purpose
Learning Step/Activity 3: Classify funds by funding mechanism
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: Revolving funds generate revenues by providing services to general public or to other government entities. In the case of services provided to the general public, these are services for which there is a market. The postal service is a good example. There is a market for delivery of letters and packages. In many cases, the federal revolving fund competes with private entities.
Since the revolving funds receive no appropriations, they must set user fees to cover costs of providing services. This differs from the National Wildlife Refuge Fund in that the primary purpose of these funds is to PROVIDE SERVICE. The primary purpose of the NWRF is to compensate counties for lost tax revenue on the lands held by the fund. So, appropriations in addition to the fees collected are necessary. In the case of revolving funds, no additional appropriations are received. Therefore, the fees charged must cover all costs of providing the services. These funds have a zero-profit target. That is, they can’t make too much money or they will be accused of overcharging for their services, and they can’t make too little or they won’t be able to function.
Finally, revolving funds receive their name because resources carry over or “revolve” from one period to the next. In other words, they do not expire as appropriations do.
As we already mentioned, the U.S. Postal Service is an example of a revolving fund. Can you think of others?
Revolving funds use the accrual basis of accounting. No budgetary accounts are needed, because there are no appropriations to track.

13. Deposit Funds Account for resources that belong to other entities
Other government agencies
Other funds within the same agency
Non-federal entities
For every asset held there is an equal liability
Ex. State income taxes withheld from federal employees’ payroll
Show Slide #13: Classify funds by purpose (Cont.)
Facilitator’s Note: Deposit funds account for resources that belong to other entities. These other entities might be: Other government agencies, Other funds within the same agency, Or Non-federal entities.
These are called “deposit funds” because the assets or resources that belong to other entities are simply held “on deposit” until disbursed.
It is similar to a bank. When you put your money “on deposit” with the bank, the money still belongs to you even though the bank is holding it for you. These funds are called “fiduciary” funds in state and local governments.
A key feature of deposit funds is that for every asset held there is an equal liability. For example: State income taxes withheld from federal employees’ payroll. When the money is withheld from the employees’ pay, the deposit fund records an asset (cash). But, that cash does not belong to the deposit fund. It has a legal obligation to remit the money to the state government on the employees’ behalf. So a liability (payroll taxes payable) is also recorded.

14. Management or Working Funds
Provide goods and services to appropriated funded programs and departments
May pool appropriations from multiple reporting entities to accomplish a common purpose
Ex. Bureau of Land Management Working Capital Fund
Show Slide #14: Classify funds by purpose (Cont.)
Facilitator’s Note: Management or Working Funds provide goods and services to appropriated funded programs and departments. The appropriated programs, funds, and departments expend their appropriations on the goods and services provided by the management or working funds.
The primary difference between these funds and the Revolving funds is that the customer for the goods and services provided by these funds is an appropriated program, fund, or department, rather than the general public. The fees charged for the goods and services provided must cover the cost of providing the goods and services. In state and local entities, this type of fund is known as an Internal Service fund.
Management or Working funds may pool appropriations from multiple reporting entities to accomplish a common purpose.
Multiple appropriated organizations might put their money together to purchase a share of information technology services that exceed what either could afford separately. GSA (in theory) is an example of taking advantage of volume purchase discounts by combining the purchasing power of multiple government agencies, programs, and funds. Management or Working funds use the accrual basis of accounting, and do not use the obligation process or the budgetary accounts. Ex. Bureau of Land Management Working Capital Fund

15. LSA #3 Check on Learning
Q1. Which type of fund has an equal liability for every asset it holds?
Q2. Which type of fund provides goods and services to the general public or other governmental entities?
A1. Deposit fund
Show Slide #15: LSA #3 Check on Learning
Facilitator’s Note: Ask the following questions, facilitate the answers given.
Q1. Which type of fund has an equal liability for every asset it holds?
A1. Deposit fund
Q2. Which type of fund provides goods and services to the general public or other governmental entities?
A2. Revolving Fund
A2. Revolving Fund

16. LSA #3 Summary
During this lesson, we discussed the six different types and the three characteristics of funds, and gave in-depth descriptions on each. We also classified these funds by both Mechanism and Purpose. We will now conduct a case Study based on this information.
Show Slide #16 LSA 3: Summary
Facilitator’s Note: During this lesson, we discussed the six different types and the three characteristics of funds, and gave in-depth descriptions on each. We also classified these funds by both Mechanism and Purpose. We will now conduct a case Study based on this information. Refer Learner’s to Handout, page 5.

17. BLM Working Capital Fund
Read the case study:
A Case Study in the Management and Accounting of Capital Assets:
The Bureau of Land Management’s (BLM) Working Capital Fund (WCF)
Show Slide #17: Read and Review a Case Study
Learning Step/Activity 4: Case Study
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: Direct the learners to the Handout, page 5. Ask the to read the case study: A Case Study in the Management and Accounting of Capital Assets: The Bureau of Land Management’s (BLM) Working Capital Fund (WCF). Allow 5 minutes to read the case study before showing the slides to review what they read.

18. BLM Working Capital Fund (Cont.)
Q1. What are capital assets? Q2. Who are the customers of the Working Capital Fund? Q3. What are the revenue sources? Q4. How does this meet the definition of a working or management fund?
Show Slide #18: Read and Review a Case Study (Cont.)
Facilitator’s Note: Ask the below questions:
Q1. What are Capital Assets?
A1.
have an estimated useful life of 2 or more years,
are not intended for sale in the ordinary course of business, and
are intended to be used or available for use by the entity.
Q2. Who are the customers of the Working Capital Fund?
A2. Operating entities at BLM, the different divisions under its decentralized management structure.
Q3. What are the revenue sources?
A3. The fund uses two revenue sources: maintenance fees and fixed ownership fees. The maintenance fee covers all operating expenses for vehicles. The fixed ownership fee charges each decentralized operation's appropriated budget for a monthly amount calculated to accumulate the cash funds needed for equipment replacement at the end of the asset's useful life. Fees are kept in reserve for vehicle replacement.
Q4. How does this meet the definition of a Working or Management fund?
A4. Provide goods and services to appropriated funded programs and departments; Pools appropriations from multiple reporting entities to provide these services.

19. BLM Working Capital Fund (Cont.)
What services are provided?
How are appropriations “pooled”?
How did using the Working Capital Fund impact the customers of the fund?
Understanding true cost of operations
Dealing with political environment
Choosing assets appropriate to operational needs
Managing and maintaining assets
Show Slide #19: Read and Review a Case Study (Cont.)
Facilitator’s Note:
Q1. What services are provided?
A2. The services provided are: A) maintenance, and B) accumulation of funds for replacement.
Q2. How are appropriations “pooled”?
A2. In two ways: The various departmental appropriations are pooled so that the cost of ownership of a particular type of asset is an average cost for the BLM as a whole. Also, with the cost of ownership fee, the organization is essentially pooling the appropriations for multiple periods to provide for replacement of the asset at the end of its useful life.
Q3. How did using the Working Capital Fund impact the customers of the fund?
Understanding true cost of operations
Dealing with political environment
Choosing assets appropriate to operational needs
Managing and maintaining assets
Facilitator’s Note: The remaining slides address these four sub-points in various ways.

20. BLM Working Capital Fund (Cont.)
Under the accrual basis, capital assets are a cost of doing business in the periods the assets are used.
The consumption of the useful life of a capital asset is called depreciation.
Under the budgetary basis, the cost of a capital asset is an expenditure in the period it is purchased.
Show Slide #20: Read and Review a Case Study (Cont.)
Facilitator’s Note: Understanding true cost of operations. Under the accrual basis, Capital Assets are a cost of doing business in the periods the assets are used.
The consumption of the useful life of a capital asset is called depreciation.
Under the budgetary basis, the cost of a Capital Asset is an expenditure in the period it is purchased.

21. Working Capital Fund Example: Accrual Basis
Performance reflects costs that are not cash flows of the period.
A $100K truck depreciated straight line over 5 years puts $20K cost into each year.
Book value of the asset is reduced annually until zero value.
Show Slide #21: Read and review a Case Study (Cont.)
Facilitator’s Note: Understanding true cost of operations.
Performance Reflects Costs that are not Cash Flows of the Period.
A $100K Truck Depreciated Straight Line over 5 Years Puts $20K Cost into Each Year.
-- Book Value of the Asset is Reduced Annually Until Zero Value.

22. Working Capital Fund Example: Budgetary Basis
Budgets recognizes 100% of asset in year of acquisition
A $100K truck depreciated
Is recognized as a $100K expenditure when bought
Subsequent years see no effect
Show Slide #22: Read and Review a Case Study (Cont.)
Facilitator’s Note: Understanding true cost of operations.
Budgets Recognizes 100% of Asset in Year of Acquisition.
A $100K Truck Depreciated
-- is Recognized as a $100K Expenditure When Bought.
-- Subsequent Years See No Effect.

23. Working Capital Fund Example: Problems of Government
Annual performance is distorted
Asset acquisition becomes a big ticket item subject to political climate
Maintenance of asset sometime avoided on logic that asset has zero value
Show Slide #23: Read and Review a Case Study (Cont.)
Facilitator’s Note: Understanding true cost of operations and dealing with a political environment. Managing and maintaining assets.
Annual performance is distorted – under the budgetary basis of accounting, expenditures are very large in the year assets are acquired, and then zero (related to capital assets) in the years the asset is used.
Asset acquisition becomes a big ticket item subject to political climate – Assets may only be purchased when the political climate is favorable. When that “windfall” occurs, managers may purchase assets that are more costly than what is truly needed, because they don’t know when the “windfall” will happen again.
Maintenance of asset sometime avoided on logic that asset has zero value – since the budgetary basis of accounting doesn’t recognize the capital asset– maintenance of the asset might be avoided, since it would use up the current year’s appropriation. Accounting changes since 1997 when the article was written now mandate that capital assets be recorded in the proprietary accounts. However, most managers don’t deal much with the proprietary accounts . Most still consider themselves to primarily be managers of the budget.

24. BLM Working Capital Fund Example: Behavior Impacts
Acquisition specifications became more conservative
As managers more clearly recognized tradeoffs with operating budgets
Maintenance was performed diligently
To stretch useful life
Since already pre-paid (via allocation)
Show Slide #24: Read and Review a Case Study (Cont.)
Facilitator's Note: Choosing assets appropriate to operational needs and managing and maintaining assets. Acquisition specifications became more conservative. As managers more clearly recognized tradeoffs with operating budgets maintenance was performed diligently to stretch useful life since already pre-paid (via allocation).

25. BLM Working Capital Fund Example: Bottom Line
Annual performance was more clear
Capital assets needs declined
Show Slide #25: Read and Review a Case Study (Cont.)
Facilitator’s Notes: Annual Performance was More Clear – The expenditures more accurately reflected the actual usage of capital assets.
Capital Assets Needs Declined – assets were better maintained. When it was time for replacement, managers recognized that the cost of the asset would be charged to the annual budget in the periods the asset was used, and didn’t purchase more than was needed as they might have done when getting an appropriation to purchase a capital asset was seen as a windfall.

26. TLO Check on Learning
Quickly break the learners in two groups. Have each group as a group write down one question from this lesson, give about two minutes. Once the groups have their question written, pass it to another group to answer it. Facilitate a discussion on each question.
Show Slide #26: TLO Check on Learning
Facilitator’s Note: Quickly break the learners in two groups. Have each group as a group write down one question from this lesson, give about two minutes. Once the groups have their question written, pass it to another group to answer it. Facilitate a discussion on each question.

27. Lesson Summary
Determining Different Accounting Methods Used by Different Fund Types is a lesson designed to for the learners to apply the cost management processes. Cost management is an integral part of the Army‘s stewardship. Financial managers throughout all levels of FM operations – from strategic to tactical – must have a good understanding of costs and manage costs carefully, Now, you should be able to identify the different types of funds used, classify the funds by funding mechanisms and by purpose.
What are your questions?
Show Slide #27: Lesson Summary
Facilitator’s Note: Determining Different Accounting Methods Used by Different Fund Types is a lesson designed to for the learners to apply the cost management processes. Cost management is an integral part of the Army‘s stewardship. Financial managers throughout all levels of FM operations – from strategic to tactical – must have a good understanding of costs and manage costs carefully, Now, you should be able to identify the different types of funds used, classify the funds by funding mechanisms and by purpose.
What are your questions?

28. Practical Exercise Show Slide #28: Practical Exercise (PE)
Facilitator’s Note: This is your opportunity to apply what you have learned about cost management. You will have 10 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.

29. TLO Summary -- Identify different types of funds
Action: Determine Different Accounting Methods Used by Different Fund Types
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):
Identify different types of funds
Classify funds by funding mechanism
Classify funds by purpose
Read and Review a Case Study
Show Slide #29: TLO Summary
Facilitator’s Notes: Restate the TLO
Action: Determine Different Accounting Methods Used by Different Fund Types
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):
-- Identify different types of funds
-- Classify funds by funding mechanism
-- Classify funds by purpose
-- Read and Review a Case Study
“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.