Define Obligation Management FINANCE AND COMPTROLLER SCHOOL Terminal

Define Obligation Management FINANCE AND COMPTROLLER SCHOOL

Terminal Learning Objective ACTION CONDITION STANDARD Define Obligation Management

Terminal Learning Objective ACTION CONDITION § Given a summary sheet containing Finance and Accounting Policy Implementation, and STANDARD slides.

Terminal Learning Objective ACTION CONDITION STANDARD § With 80% accuracy: § Identify obligation management; obligation management tools, and the communication process between accountants and resource managers.

FINANCE AND COMPTROLLER SCHOOL Obligation Management The systematic process of managing obligations by accountants and resource managers using all available resources. 9/17/2020 FINANCIAL MANAGEMENT SCHOOL 5

FINANCE AND COMPTROLLER SCHOOL Importance of Obligation Management Big Picture Perspective. Resource Management Perspective. “The Army Mission” Key Players. - Combat Units/Soldiers. - Congress. - Resource Managers. - Accountants. 9/17/2020 FINANCIAL MANAGEMENT SCHOOL 6

FINANCE AND COMPTROLLER SCHOOL Obligation Management Tools Obligation rate = OBLIGATIONS FUNDING • Obligation adjustments • True obligation rate Liquidation performance = DISBURSEMENTS OBLIGATIONS Plan-to-actual Abnormal conditions Timeliness of transactions/events 9/17/2020 FINANCIAL MANAGEMENT SCHOOL 7

FINANCE AND COMPTROLLER SCHOOL Fund Status ECC Reports Cumulative Fund Status Reports There are 9 types of Cumulative Fund Status ECC Reports. Cumulative status can be current up to 1 year. GFEBS will stop you from going over your budget. Cumulative will represent future, present, and past budget reports. 9/17/2020 FINANCIAL MANAGEMENT SCHOOL 8

FINANCE AND COMPTROLLER SCHOOL Fund Status ECC Reports Cumulative Fund Status Reports Cont. ZFSC 1 - Cumulative Fund Status by Funds Center(FC)/Comm Item (CI) ZFSC 2 - Cumulative Status by Functional Area (FA)/CI) ZFSC 3 - Cumulative Status by Funded Program (FP)/CI ZFSC 4 - Cumulative Status for Funds Center – Summary (Fund/FA) ZFSC 5 - Cumulative Status by Funds Center – Detail (Fund/FA/FC/FP/CI) ZFSC 6 - Cumulative Fund Status by Functional Area – Summary (FA/Fund) ZFSC 7 - Cumulative Fund Status by Functional Area Group-Detail ZFSC 8 - Cumulative Fund Status with Open Commitments-Summary ZFSC 9 - Cumulative Fund Status with Open Commitment - Detail 9/17/2020 FINANCIAL MANAGEMENT SCHOOL 9

FINANCE AND COMPTROLLER SCHOOL Fund Status ECC Reports Non-Cumulative Fund Status Reports There are 6 types of Non-Cumulative Fund Status ECC Reports that are used at a specific point in time. Within a 30 day or 6 day window for a specific purpose and only for that purpose. 9/17/2020 FINANCIAL MANAGEMENT SCHOOL 10

FINANCE AND COMPTROLLER SCHOOL Fund Status ECC Reports Non-Cumulative Fund Status Reports (Cont. ) ZFSNC 1 – Non-Cumulative Status by Funds Center (FC/CI) ZFSNC 2 – Non-Cumulative Status by Functional Area (FA)/CI) ZFSNC 3 – Non-Cumulative Status by Funded Program (FP/CI) ZFSNC 4 – Non-Cumulative Status by Funds Center – Summary (Fund/FA/) ZFSNC 5 – Non-Cumulative Status by Funds Center – Detail (/FA/FC/FP/CI) ZFSNC 6 – Non-Cumulative Status by Funds Center – Pre-Posted (FC/CI) 9/17/2020 FINANCIAL MANAGEMENT SCHOOL 11

FINANCE AND COMPTROLLER SCHOOL se nt er Cumulative Fund Status by Funds Center (FC) / Commitment Item (CI) Cont. pe /N an d pr es 3. Click on “Execute” on the Menu bar 7. Ty 2. Type ARMY 1. Type ZFSC 1 and press enter 4. Click on 202010 D** O & M Army Note: A 2 ABM is the Fund Center for Fort Jackson 5. Click on Expand “+” 6. Obligation amount for CI 2310 Note: **represent current FY 9/17/2020 FINANCIAL MANAGEMENT SCHOOL 10

FINANCE AND COMPTROLLER SCHOOL Joint Review Required every 4 months (3 times per year) Reviews will ensure: • • 9/17/2020 Validity Accuracy Documentation Reconciliation FINANCIAL MANAGEMENT SCHOOL 13

FINANCE AND COMPTROLLER SCHOOL Accounting & Resource Management Interrelationships 9/17/2020 Accountants • Accountants control, validate, and record. • Accountants provide reports based on financial records. Resource Managers (RMs) • RMs use historical data to identify patterns. • RMs receive funding and authorize obligations. • Interaction ensures accuracy, completeness, timeliness, reasonableness, and usefulness. • Joint relationship helps recommend policy, procedure, and goal modification. FINANCIAL MANAGEMENT SCHOOL 14

FINANCE AND COMPTROLLER SCHOOL Command Accountability & Execution Review (CAER) Program Problem Scope Plan of Action • The Army loses $5 B in Purchasing Power every year due to de-obligations • Significant impact on readiness • SECARMY program aimed to overhaul business processes and policy Current 9/17/2020 Expired • Tri-Annual Reviews to include updated KPIs • New Transportation Management System, Supply price stabilization, aged supply action review De-obligations by Category Amount “Other” Contractual Services $1. 8 B (43%) Supplies $1. 0 B (24%) Transportation of Things $0. 7 B (17%) Civilian Benefits $0. 7 B (16%) cancelled FINANCE & COMPTROLLER SCHOOL 15

FINANCIAL MANAGEMENT SCHOOL Check on Learning

FINANCE AND COMPTROLLER SCHOOL Check on Learning (Cont. ) 1. __________ is the systematic process of managing obligations by accountants and resource managers using all available resources. 2. Obligation rate is _______ 3. There a total of ___ ECC fund status reports 9/17/2020 FINANCE & COMPTROLLER SCHOOL 14

FINANCE AND COMPTROLLER SCHOOL Questions 9/17/2020 FINANCE & COMPTROLLER SCHOOL 18

FINANCE AND COMPTROLLER SCHOOL Terminal Learning Objective ACTION CONDITION STANDARD Define Obligation Management • Given a summary sheet containing Finance and Accounting Policy Implementation, and slides. • With 80% accuracy: • Identify obligation management; obligation management tools, and the communication process between accountants and resource managers.