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FINANCIAL MANAGEMENT SCHOOL

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1 FINANCIAL MANAGEMENT SCHOOL
BUDGETING SHOW SLIDE 1: BUDGETING SECTION I. Budgeting ADMINISTRATIVE DATA All Courses Including This Lesson Course Number Version Course Title 01 Planning Programming Budget & Execution Course (PPBE) Task(s) Task Number Individual Taught (*) or Academic Hours The academic hours required to teach this lesson are as follows: Resident Hours/Methods 3 hrs 00 minutes / Conference / Discussion 2 hrs 00 minutes / Demonstration 3 hrs/ Practical Exercise (Performance) Total Hours: hrs Test Lesson Number Testing (to include test review) Hours -0 hrs Lesson Number - Prerequisite Lesson(s) Lesson Number Lesson Title Prepare an Activity Level Budget Clearance Access Security Level: Unclassified Requirements: There are no clearance or access requirements for the lesson. Foreign Disclosure Restrictions FD5. This product/publication has been reviewed by the product developers in coordination with the Fort Jackson Soldier Support Institute foreign disclosure authority. This product is releasable to students from all requesting foreign countries without restrictions. Instructor Requirements Must meet physical qualifications IAW AR Materials Required Instructor Materials: Lesson plan slides, DFAS-IN Regulation 37-1, DFAS-IN-MANUAL FY, Instructor copy  Student Materials: Budgeting Handout and Summary Sheet 1 and 2, Practical Exercise 1, 2, and 3, calculator and pencils. Classroom, Training Area, and Range Requirements General Purpose Classroom - 25 Seats Instructional Guidance Note: Before presenting this lesson, instructors must thoroughly prepare by studying this lesson and identified reference material. Also, provide the students with situational awareness of the Operational Environment (OE) variables and actors. Proponent Lesson Plan Approvals Name Rank Position Date Harris, Norman CTR Writer/Developer xx-xxx-xxxx Bonig, Reid GS-12 Chief - FMITD xx-xxx-xxxx Davis, Bobby LTC FM-DOT xx-xxx-xxxx Zellars, Eric COL Commandant xx-xxx-xxxx Motivator: Budgeting usually involves a lot of number crunching for those in the field We’ll discuss the different ways that you spread the few dollars that you get over the many resources that want your attention. 3 PE’s and overhead example 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

2 Terminal Learning Objective
Action: Conditions: Standard: Prepare an Activity Level Budget. Given a summary sheet containing AR 1-1, Army Command, Leadership and Management (ACLM), Budget Exercises and slides, and access to DFAS-IN Manual and Army Funds Management Data Reference Guide ( With 80% accuracy: Define a budget; prepare an activity level budget; analyze functions of the activity chief and major activity director (MAD) in the formulation of the installation command budget estimate (CBE); and list the steps in budget consolidation. SHOW SLIDE 2: TERMINAL LEARNING OBJECTIVE Note: State the TLO Safety Requirements:  Everyone is responsible for safety. A thorough risk assessment must be completed prior to every mission or operation. Risk Assessment Level: Low Environmental Considerations: NOTE: It is the responsibility of all Soldiers and DA civilians to protect the environment from damage. 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. Evaluation: Students will take a comprehensive test at the end of Week 1. Students must score 80% or higher and International officers must score 70% or higher. We are not doing DA “Pie in the Sky” stuff – we are not talking about the BES - Budgeting is done down at the Installation level 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

3 Problems with Financial
Resources There never seems to be enough. Many restrictions and directives attached to the use of public funds: Cannot exceed ceilings, limitations, targets, etc. Cannot shift funds between programs. Cannot use an appropriation for other than its stated purpose. SHOW SLIDE 3: Problems with Financial Resources Some problems with Financial Resources Why do we have to budget? Because there is never enough money. - If we got all the money we wanted – we wouldn’t need to budget - Since that is not the case – we need to budget We also are subject to many restrictions on the money that we do get - Ceilings, limitations – also many times we can’t shift money between programs 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

4 Installation Financial
Management Constrained Resources Mission Requirements SHOW SLIDE 4: Installation Financial Management Dilemma for the CDR or DRM – There is a continual increase in need to do things but less and less money all the time 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

5 FINANCIAL MANAGEMENT SCHOOL
Budget A formal, written, detailed statement of resources required and activities planned for the entire command to accomplish its mission. SHOW SLIDE 5: Budget What is a budget – here is the formal definition - Written process of how we are going to spend resources to accomplish the mission 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

6 Ways of Looking at a Budget
Series of goals with price tags. Plan of work for the budget year(s). Instrument for insuring efficiency comparing plan work with actual execution data. Contract with the boss - i.e., “This is what I will accomplish with allocated resources.” Expectation - the budget is only an estimate of resources allotted to the activity. Precedent - use historical data to develop the budget estimate, figuring in inflation. SHOW SLIDE 6: Ways of Looking at a Budget Different perceptivities of what a budget is - Should be an agreement between you and your boss on where you will spend your money 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

7 Developing the Installation Command Budget Estimate (CBE)
HQDA ACOM PBG INSTALLATION CBE ACOM CDR BMG PBAC DRM MADs SHOW SLIDE 7: Developing the Installation Command Budget Estimate (CBE) Here is the Process Flow again Program Budget Guidance (PBG) – Guidance from DA to ACOM Budget & Manpower Guidance (BMG) – Guidance from ACOM to Installation Directorate of Resource Management (DRM) provides info to Major Activity Director (MAD) Planning and Budget Advisory Committee (PBAC) – 1st one is the Junior one – initial breakup of $ Approved by CDR Once approved goes to the DRM who publishes it to the MAD’s The activities – start to develop their budgets (What we just did) MAD’s consolidate all subordinates budgets – makes one budget (Can a MAD move money around on the subordinate budgets – depends – if it is in the same SAG) (DA – BA’s; ACOM – between SAG’s within same BAG; Installation – same as MAD – within same SAG) There is the 2d PBAC (Installation level) – This is where the MAD’s go and fight for more money with their UFR’s The CDR then makes a final decision ACTIVITIES MADs MADs DRM PBAC DRM CDR 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

8 Financial Management Level
Garrison Installation Level ASAP PROMOTIONS RETIREMENT SRV MIL PERS DIV DHR DPTMS DPW FAM ADV EFMS ACS DIV CYSSD DFMWR CDR MAD SHOW SLIDE 8: Financial Management Levels We will be preparing an activity level budget - This is an example of an installation You have the CDR – final decision maker on the installation Below him is the MAD – Supervise a group of activities for the installation Activity level – Supervises a specific mission for the installation Sub-activity level – Supervises part of a mission CDR – Commander -DHR – Director of Human Resources -ASAP – Army Substance Abuse Program -MIL PERS DIV – Military Personnel Division - PROMOTIONS -RETIREMENT SRV – Retirement service -DPTMS – Director of Plans, Training, Mobilization and Security -DPW – Director of Public Works -DFMWR – Director of Family and Morale, Welfare and Recreation -ACS DIV – Army Community Service -FAM ADV – Family Advocacy -EFMS – Exceptional Family Members Program -CYSSD – Child Youth School Service Division CRD – Community Recreation Division ACTIVITY SUB ACTIVITY 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

9 Major Activity Director (MAD)
Broader scope/responsibilities. Generally more than one program or BASOPS account. DRM provides assistance through budget analyst. Competing for resources with other diverse missions. SHOW SLIDE 9: Major Activity Director (MAD) Remember this is at installations Program = Functional Area This is the first level to have a budget analyst – generally review the Activity Chiefs submissions There are limited resources and it causes DPCA to compete VS DOL VS DPTM to get the resources 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

10 Director(ate) of Personnel & Community Activities
FUNCTIONAL AREA ACTIVITY 434716TATC Army Training Center Operations 423612QOIM Base Information Management Operations 451020TACV Army Civilian Intern Program 432612X4SA Army Acquisition Executive Support 451020TACE Army Civilian Education and Training (ACTEDS) 423898VPUB Public Affairs BASE OPNS: SHOW SLIDE 10: DPCA Accounts At the MAD level there are many different potential accounts to work funding with DPCA – Dir of Personnel and Community Activities 434612FACB Office Chief of Chaplains (OCCH) 423612QOIM Base Information Management Operations 431398QAAP Army Substance Abuse Program 323752VIRS Army Recruiting and Retention Initiatives 434612MPTV Army Human Resource System (AHRS) 423612QMIS Army Installation Support 432126VCPR Army Civilian Personnel Operations

11 FINANCIAL MANAGEMENT SCHOOL
Activity Chief Limited scope/responsibility. One program/BASOPS account. No budget expert. SHOW SLIDE 11: Activity Chief Normally has limited Scope and responsibility Usually has one FUNCTIONAL AREA to worry about – one Program / BASOPS account No budget expert – normally there are no budget analysts in their office Usually a MAD has many Activity Chiefs working for them 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

12 FINANCIAL MANAGEMENT SCHOOL
Budgeting Process 1. Receive guidance. 2. Determine total requirements by Commitment Item. 3. Determine financed requirements. 4. Prioritize unfinanced requirements and develop decrement list. 5. Phasing. 6. Prepare supporting schedules. SHOW SLIDE 12: Budgeting Process This is the actual process to develop a Budget 6 steps 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

13 FINANCIAL MANAGEMENT SCHOOL
Step 1: Receive Guidance Dollar Guidance Manpower Guidance Workload Guidance Administrative Guidance SHOW SLIDE 13: Step 1: Receive Guidance Remember back in PPBE we talked about the guidance that came down based on the initial POM (Program Objective Memorandum) This is the 4 types of guidance that we receive in the BMG (Budget Manpower Guidance) 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

14 FINANCIAL MANAGEMENT SCHOOL
Dollar Guidance Tentative dollar amount the installation can expect to receive. Must budget within this dollar amount. Consider funding limitations. Specific purpose. Floors. Fences. SHOW SLIDE 14: Dollar Guidance Tentative dollar ….. Why is it tentative? – Because it is based on guidance – it could change Must budget … Can we budget for more than the guidance says to? - No, it’s a ceiling that we can’t go over The guidance is broken down by Functional Area - Many times down to the SAG level What's the big deal – its already been programmed – goal is to make budget look like the program 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

15 FINANCIAL MANAGEMENT SCHOOL
Manpower Guidance Limitations on number, grade, and type of personnel authorized. Military labor expense is not budgeted by the installation. SHOW SLIDE 15: Manpower Guidance This is for the Civilian workforce – military is done centrally We receive guidance on the number of people / grades we should expect to be able to fund 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

16 FINANCIAL MANAGEMENT SCHOOL
Workload Guidance Estimate of the amount of work performance expected by the installation, major activities, and activities. SHOW SLIDE 16: Workload Guidance You may receive guidance on what your workload will look like the next year - ex – At Fort Jackson – How many soldiers can you expect to process through - Identify and deployments or training exercises that you will have to participate in - The number of students you will have to teach 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

17 Administrative Guidance
Budget format. Rounding instructions. Special schedule preparations. SHOW SLIDE 17: Administrative Guidance Budget format – Tells you the format that they want reports presented in - May give you a template Rounding instructions – tell you to what level they want you to round to Special – Budget submission suspense’s / timelines 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

18 Total Requirement by CI
Step 2: Determine Total Requirement by CI Commitment Item (CI): A code for classifying the type of services, goods, or other items being procured or consumed according to its nature rather than its purpose. SHOW SLIDE 18: Step 2: Determine Total Requirements by CI Step 2 Budget formulation is initiated by determining the total dollar requirements by CI You break down all your requirements that you need by CI (Can be broken down by BA, BAG, and SAG – Based off of the purpose of the appropriation) 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

19 FINANCIAL MANAGEMENT SCHOOL
Commitment Item 1100 Personnel Compensation 1200 Personnel Benefits 2100 Travel & Transportation of Persons 2200 Transportation of Things 2300 Rent, Communications, Utilities 2400 Printing & Reproduction 2500 Contractual Services 2600 Supplies & Materials Supplies & Materials – Equipment 4300 Interest & Dividends SHOW SLIDE 19: Commitment Item These are just some examples of CI’s 1100 – is a general category – will be broken down more specific by , 2B-EOR1-Pay and Federated Enterprise Resource Planning Business Systems 7, Commitment Item/Element of Resource Master Data Overview Helps Identify how much money you will need for supplies, utilities etc.. CI’s are the same across all appropriations (Draw Chart) Provides a different way to look at expenses OMB reports Objective Classes fro President Budget – these CI’s tie into those Objective Classes 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

20 Two Methods to Determine CI 1100, Personnel Compensation
Salary table Average SHOW SLIDE 20: Two Methods to Determine CI 1100, Personnel Compensation This is civilian Pay 2 methods to determine 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

21 FINANCIAL MANAGEMENT SCHOOL
Salary Table TDA JOB HR ANN LINE/PARA TITLE SERIES GRADE STEP RATE 010A 00 P&B DIV 010A 01 BUD OFF GS560 12 6 010A 02 BUD ANA 11 1 010A 03 BUD TEC 07 2 010B 00 FORCE M 010B 01 MGT ANA GS343 3 010B 02 SUPV 010B 03 FM 36B E7 010B 04 42A E6 010B 05 SHOW SLIDE 21: Salary Table Within an organization you identify every position you will fill by grade Then you fill in the data Where do you get the info on what positions you could have – TDA - Modify for what you know you will get (Budget Manpower Guidance - BMG) Very accurate – but very cumbersome to do You don’t submit this – you do this for yourself to aid in budgeting Now – whats wrong with this chart? - The two soldiers should be off of the chart – not budgeted for – they are done centrally 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

22 FINANCIAL MANAGEMENT SCHOOL
Average Method Current year CI costs: $240,000 Divided by the number of employees ÷12 Equals average cost per employee $ 20,000 Budget year cost estimate for CI 1100: 11 Employees times average cost Equals $220,000 Estimated base pay cost used for budget Estimated premium pay would be added SHOW SLIDE 22: Average Method The other method is the Average Method - Not quick as accurate as the Salary Table but a lot quicker You take your Current Year CI costs – Not in your Budget guidance – its what your spending now / by the # of employees you currently have = average cost per employee Then just multiply the average cost per employee times the #of employees you will have next year – need to consider any pay raises Its easier to do but could be wrong if your force changed (i.e. – GS 9/10 positions changed to GS 12/13) 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

23 FINANCIAL MANAGEMENT SCHOOL
Computation of CI 1200, Personnel Benefits Base pay times (x) a stated percentage. Example: $220,000 X 15% = $33,000. SHOW SLIDE 23: Computation of CI 1200, Personnel Benefits CI 1200 – Civilian benefits It is a % of base pay If you have 1100 – you need to pay 1200 by law This is provided to you – includes all benefits, health insurance, Thrift Savings Plan, Civilian Overseas Allowance, Mass Transit Subsidiary, 401 K - It also includes Part Timers that don’t get official benefits because it also includes FICA and Medicare etc 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

24 Computation of CI 2100,Travel of Persons – TDY
To determine the total costs for CI 2100, determine the cost of each individual TDY trip planned. For each trip, you need the following information: Number of personnel traveling. Place traveling to (per diem rate). Number of days TDY. Estimated cost of travel (airfare, POV...). SHOW SLIDE 24: Computation of CI 2100, Travel of Persons – TDY How do we budget our TDY? - 2 Methods - 1st method – what you spent last year (historical information) - 2d method – You Identify all trips and figure out cost of each - Per Diem info / Plane ticket costs - You then create an estimate based on cost – expected TDY costs Why is the 2d method preferred? Tells you pretty accurate how much money you need 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

25 Computation of Other CIs
Base figures on historical data plus known changes for CIs: Rent, Utilities, Communication Printing, Reproduction Contracts Supplies and Materials Equipment SHOW SLIDE 25: Computation of Other CIs Use historical data – more buildings mean higher utility bills 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

26 Computation of CI 2600, Supplies
Base on work load, seasonal requirements, and historical data. SHOW SLIDE 26: Computation of CI 2600, Supplies Such as – paper (how much paper do we go through and when) 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

27 Step 3: Determine the Financed Requirements
First, finance the directed requirements. Then, prioritize the remaining requirements using the following as guidelines: Mission essential requirements. The training plan. Any new initiatives. Less important requirements should be financed last. SHOW SLIDE 27: Step 3: Determine the Financed Requirements What have we done so far 1) Received guidance – total amount of money we expect to receive 2) Determined total requirements by CI We will never have the 2 equal each other so we need to figure out what we will fund and what we won’t fund To do that we have a process to go through 1) We fund those things that are directed to us to fund – must fund / no choice - Find this out from the boss (Ie – training plans (NTC Rotation), Laws (Hazmat or environmental cleanup)) 2) The we prioritize the remaining requirements People are always playing games with this stuff – Who should question whether it is a directed requirement? Or if we should fund something over another? The DRM 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

28 When Determining Finance
Requirements: Is this subjective? Who acts as the honest broker? SHOW SLIDE 28: When Determining Financed Requirements: A lot is subjective – the DRM makes sure that people are funding the proper requirements 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

29 Step 4:Prioritize Requirements
Unfinanced requirements: Establish priorities for the unfinanced requirements. When total requirements exceeds dollar guidance, there are unfinanced requirements (UFRs). Financed requirements: If there is a funding shortfall, go to the decrement list to determine what gets cut. SHOW SLIDE 29: Step 4: Prioritize Requirements Step 4 When we have more things than we have money to fund – those remaining requirements are called UFR’s – Unfinanced Requirements Draw Chart Since we are budgeting based on guidance we need to plan for if we don’t get enough – usually we are told to plan for a 20% reduction of funds – to do this we prepare a decrement list 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

30 FINANCIAL MANAGEMENT SCHOOL
Dollar Guidance vs. Total Requirements Relationship between total requirements, dollar guidance (funded requirements) and unfunded requirements (UFRs): Total Requirements - $$ Guidance (financed requirements) = UFRs = Funding Shortfall = Less Important Remaining Requirements SHOW SLIDE 30: Guidance $$ vs. Total Requirements All this is saying Total Requirements - $$ Guidance (funded requirements) = UFRs 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

31 Unfunded Requirements (UFR)
List List of those total requirements which remain unfunded due to the limited amount of dollar guidance. Unfunded requirement list is prioritized from most important to least important. Supported by impact statements. SHOW SLIDE 31: Unfunded Requirements (UFR) List Why do we make this list? In case we get more money than what we expected Show UFR chart – The top one is the most important requirement that didn’t get funded Impact statements – also write a statement for each UFR giving the “So What” - Describe what happens because its not funded, impact on mission - Are there certain areas to concentrate on when writing up – yes - Health affects, safety, QOL, readiness - May help later on when money appears or at the PBAC’s (If money appears - usually occurs at end of year and it goes to the one that has a need for it – if you already have the statements written up and handed in – your ahead of others) What happens if we get less money than expected? – Use the decrement list 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

32 FINANCIAL MANAGEMENT SCHOOL
Decrement List List of funded requirements which will be eliminated if the activity’s funding is reduced. Decrement lists are prioritized from least important to most important. Usually a percentage of the total dollar guidance. SHOW SLIDE 32: Decrement List If we get less funding than expected – we need to know what were are not going to fund Show Decrement Chart – Least important to most important Often receive guidance such as –”Prepare a decrement list for 20% of your guidance” or “Be prepared for a 20% cut” Again make your impact statement 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

33 Decrement List and UFR List Relationship
Budget Decrement List T #1 5th on list (Highest Priority) PDSS $10,000 O #2 4th on list TMP WBS / MIPR $10,000 T #3 3rd on list OIP TDY $10,000 A #4 2nd on list EX Blue Falcon $10,000 L #5 1st on list PPBE MTT $10,000 UFRs List R #6 1st on list EX Saber Strike $10,000 Q #7 2nd on list CDR Conference $10,000 T #8 3rd on list S2 Super Shredder $10,000 s #9 4th on list (Lowest Priority) Furniture $10,000 Funding Line SHOW SLIDE 33: Decrement List and UFR List Relationship Just a recap Decrement list – first on line to get cut UFR list – 1st on UFR list to get funding

34 Considerations When Developing UFRs and Decrement Lists
Regulatory requirements. Command directives and special interests. Major activity directors’ priorities and special interests. Mission of the installation, major activity, and activity. SHOW SLIDE 34: Considerations When Developing UFRs and Decrement Lists This is where people start to play games Regulatory requirements – Things by Regulation (EPA Stuff) – can’t show up on an UFR / Decrement list – must fund CMD Directives – This is what your CDR wants funded If you start to play games – Higher level decision makers will start to lose trust in you – (example – putting your requirements higher than must fund requirements – hoping that you will receive money to pay for the must fund requirements) 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

35 FINANCIAL MANAGEMENT SCHOOL
Step 5: Phasing Purpose of phasing: To accurately identify when funds must be available to meet obligations. Funded requirements: Phased into quarterly increments. Phased cumulatively. SHOW SLIDE 35: Step 5: Phasing Step 5 After we determine what gets funded we need to phase it. - Why? We aren’t going to spend all our money in the 1st Qtr so we need to identify when in the year that we will spend the funds - Also identifying when in the year the requirement is going to happen Just some key actions - Phased into Qtrly increments - Phased cumulatively (Builds on itself) 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

36 Personnel Compensation/Benefits
Phasing CI 1100 and 1200, Personnel Compensation/Benefits Phase based on paid days, i.e., the number of days in each quarter that the civilian employees will be paid (includes holidays and leave). SHOW SLIDE 36: Phasing CI 1100 and 1200 These are different rules for Phasing This is just an estimate – number of paid days in Qtr - basically 25% QTR Example on next slide 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

37 FINANCIAL MANAGEMENT SCHOOL
Civilian Paid for 260 Days per Year 1ST 2ND 3RD 4TH QTR QTR QTR QTR TOTAL DAYS 65 64 65 66 260 SHOW SLIDE 37: Civilians Paid for 260 Days per Year Days = paid days % cumulative – so by 2d qtr – you have 49.6% of your 1100 / 1200 budget spent 65/260= 25% (1st QTR) 65+64/260= 49.6% (2nd QTR) 100% % CUM 25% 49.6% 74.6% 100% 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

38 FINANCIAL MANAGEMENT SCHOOL
Phasing CI 2100, TDY Based on when travel is scheduled to begin according to the information submitted by the activity chief. SHOW SLIDE 38: Phasing CI 2100, TDY TDY Remember – this is based off of when travel is scheduled to begin On Chart – Oct – Aug -= actual TDY’s (How much is spent by QTR) Top line is Cumulative ( = 750 for 2d Qtr) 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

39 Phasing CI, Other Contracts
Phase based on the contractual requirements for the payment. SHOW SLIDE 39: Phasing CI 2500, Other Contracts Phase when you need to pay the contracts 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

40 FINANCIAL MANAGEMENT SCHOOL
Phasing CI 2600, Supplies Can be phased different ways, such as: Productive (work) days. Workload. Calendar days. SHOW SLIDE 40: Phasing CI 2600, Supplies We’ll talk about these on the next slides 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

41 FINANCIAL MANAGEMENT SCHOOL
Productive Days ROUND TO THE NEAREST 10 SHOW SLIDE 41: Productive Days If you have Productive Days – broken down by Qtrs (56/222.5 = 25.2% If you are budgeted $44,000 – this is the funding breakdown (Remember it is cumulative) (25.2% * $44,000 = 11,090) Usually the Army doesn’t get much work done around the holidays – use less supplies (Remember its for supplies) 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

42 FINANCIAL MANAGEMENT SCHOOL
Workload Historical / Seasonal Data SHOW SLIDE 42: Workload Historical/ Seasonal Data This is just your judgment of when you use most of your supplies Remember it is cumulative 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

43 FINANCIAL MANAGEMENT SCHOOL
Phasing CI 3100, Equipment Phase based on replacement schedules and known requirements for new equipment, using the quarter in which the equipment will be issued or back ordered. SHOW SLIDE 43: Phasing CI 3100, Equipment CI 3100 – Equipment Phase it when you are going to buy it (ie – furniture) 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

44 Prepare Supporting Schedules
Step 6: Prepare Supporting Schedules Activity budget schedule. UFR lists. Decrement lists. Supply requirements schedules. Contracts. Phasing. SHOW SLIDE 44: Step 6: Prepare Supporting Schedules Step 6 – Prepare Supporting Schedules Last thing is to prepare supporting schedules – UFR lists / Decrement lists – we won’t write any – but PPBE Phase II – RMBC does this 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

45 Steps in Consolidation of a Major Activity Budget (MAB)
Accuracy - mathematical. Balance - between CIs. Completeness - adherence to guidance. Validity - bonafide need for budget year (BY). Reprogramming Authority SHOW SLIDE 45: Steps in Consolidation of a Major Activity Budget (MAB) We just finished the Budget for an Activity level what do we do with it? Submit it to our Higher Headquarters – this case MAD. They are going to check for Accuracy – Is it correct - #’s, typos Balance – Is there balance if we have 50% of our budget in TDY – probably not (sanity check – does it make sense)\ Completeness – Does it meet the CDR’s Guidance? Validity – Do we really need this? If not – don’t include. Disseminate the imbalance through the chain of command to ACOM to DA for possible reprogramming between Budget Activity Levels 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

46 FINANCIAL MANAGEMENT SCHOOL
PE 1, PE 2, and PE 3 Note: Walk students through the beginning of each PE, then have student perform PEs on their own (students me work together with other students). 1/11/2019 FINANCIAL MANAGEMENT SCHOOL

47 Check On Learning Q. What is the 5th step in the budget process?
Q. In what two publications can you find detailed information on Commitment Items? Q. True / False: Dollar guidance is the least amount of funding that an activity will receive in the budget year? Q. True / False: Imbalances in funds at the budget activity (BA) level can be changed / reprogrammed at the DA level only. Slide 24 Check on Learning NOTE: Conduct a check on Learning 47

48 Terminal Learning Objective
Action: Conditions: Standard: Prepare an Activity Level Budget. Given a summary sheet containing AR 1-1, Army Command, Leadership and Management (ACLM), Budget Exercises and slides, and access to DFAS-IN Manual and Army Funds Management Data Reference Guide ( With 80% accuracy: Define a budget; prepare an activity level budget; analyze functions of the activity chief and major activity director (MAD) in the formulation of the installation command budget estimate (CBE); and list the steps in budget consolidation. SHOW SLIDE 47: TERMINAL LEARNING OBJECTIVE Note: Restate the TLO 1/11/2019 FINANCIAL MANAGEMENT SCHOOL


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