FM 1-06 FINAL EDIT wForms Fixes - United States Army

FM 1-06

FINANCIAL MANAGEMENT OPERATIONS

APRIL 2014

DISTRIBUTION RESTRICTION: Approved for public release; distribution is unlimited. HEADQUARTERS, DEPARTMENT OF THE ARMY

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Field Manual No. 1-06

*FM 1-06 (FM 1-06)

Headquarters Department of the Army Washington, DC, 15 April 2014

FINANCIAL MANAGEMENT OPERATIONS

Chapter 1 Chapter 2

Contents

Page

PREFACE.............................................................................................................. vi

INTRODUCTION ..................................................................................................vii

FINANCIAL MANAGEMENT OPERATIONS .................................................... 1-1 Section I ? Financial Management Mission and Principles.......................... 1-1 Mission................................................................................................................ 1-1 Principles of Financial Management .................................................................. 1-1 Section II ? Financial Management Core Competencies .............................. 1-3 The Fiscal Triad .................................................................................................. 1-6 Financial Management Support to Force Projection .......................................... 1-7 Section III ? Army Financial Management with Unified Action Partners .... 1-8 Section IV ? Financial Management Organizations, Responsibilities and Organizational Relationships ........................................................................ 1-11 Strategic Financial Management ...................................................................... 1-12 Operational Financial Management ................................................................. 1-13 Tactical Financial Management........................................................................ 1-23 Brigade Level Financial Management .............................................................. 1-28 Section V ? Operational Contract Support (OCS) ....................................... 1-30 Expeditionary Contracting Command (ECC).................................................... 1-30 Contracting Support Brigade (CSB) ................................................................. 1-31 Contingency Contracting Battalions (CCBN).................................................... 1-31 Contingency Contracting Team (CCT) ............................................................. 1-32

FUND THE FORCE............................................................................................ 2-1 Section I ? Appropriations/Authorization Process ....................................... 2-1 Administrative Control and Distribution of Funds ............................................... 2-3 The Legislative Proposal Process in Support of Contingency Operations......... 2-5 Section II ? Fiscal Law ..................................................................................... 2-6 Basic Tenets of Fiscal Law................................................................................. 2-6 Key Terms, Statues, and Laws .......................................................................... 2-7

Distribution Restriction: Approved for public release; distribution is unlimited. *This publication supersedes field manual 1-06, dated April 2011.

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Contents

Chapter 3

Chapter 4 Chapter 5

Section III ? Funding Support ........................................................................ 2-12 Funding Support to Stability Operations ........................................................... 2-13 Funding Contingency Operations ..................................................................... 2-13 Strategic Funding Support ................................................................................ 2-15 Operational Funding Support ............................................................................ 2-18 Tactical Funding Support .................................................................................. 2-20

Section IV ? Fiscal Appropriations, Authorities, and Agreements ............ 2-21

Section V? Financial Management Support to Military Operations in a Multinational Environment ............................................................................. 2-35 United Nations (UN) Operations ....................................................................... 2-35 North Atlantic Treaty Organization (NATO) Operations....................................2-37 Host Nation Support Reimbursement Procedures............................................2-38 Foreign Nation Support Reimbursement Procedures.......................................2-38 Assistance In Kind.............................................................................................2-38 Non-governmental Organization Reimbursement Procedures ......................... 2-39 Non-Department of Defense (DOD) Governmental Agencies Reimbursement Procedures ........................................................................................................ 2-39

BANKING AND DISBURSING SUPPORT ........................................................ 3-1

Section I ? Banking Support ............................................................................ 3-2 Banking and Host Nation Support.......................................................................3-2 Economic Impact.................................................................................................3-3 Reduction of Cash on The Battlefield ................................................................. 3-3 Military Banking Program .................................................................................... 3-3

Section II ? Disbursing ..................................................................................... 3-4 Disbursing Station Symbol Number (DSSN) ...................................................... 3-4 Cash Holding Authority ....................................................................................... 3-4 Cash Management/Currency support ................................................................. 3-5 Supporting Tasks ................................................................................................ 3-6 Reporting and Analysis ....................................................................................... 3-7 Limited Depositary Account (LDA)......................................................................3-7

Section III ? Procurement Support .................................................................. 3-8 Contracted Goods and Services ......................................................................... 3-8 Local Procurement .............................................................................................. 3-9 Special Payments ............................................................................................. 3-11 Miscellaneous Disbursing Support....................................................................3-12 Disbursing Roles ............................................................................................... 3-14 Irregularities in Disbursing Officer Accounts ..................................................... 3-14

Section IV - Fiscal Triad Synchronization .................................................... 3-15

PAY SUPPORT .................................................................................................. 4-1

Section I ? Active Duty Pay .............................................................................. 4-1 Key FM Reports .................................................................................................. 4-2 Separation of Duties............................................................................................ 4-2

Section II ? Reserve Component Pay.............................................................. 4-3

Section III ? Case Management System (CMS) .............................................. 4-4

ACCOUNTING SUPPORT and COST MANAGEMENT ................................... 5-1

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Chapter 6 Chapter 7

Contents

Section I ? Accounting Support ...................................................................... 5-2 Stages of a Transaction...................................................................................... 5-2 Obligation Management ..................................................................................... 5-4 Strategic Level Accounting Support ................................................................... 5-6 Operational Level Accounting Support............................................................... 5-7 Tactical Level Accounting Support ..................................................................... 5-8 General Fund Enterprise Business System (GFEBS)........................................ 5-9

Section II ? Cost Management ........................................................................ 5-9 Cost Culture...................................................................................................... 5-10 Critical Success Factors ................................................................................... 5-10 Cost Management Support............................................................................... 5-11 The Cost Management Process ....................................................................... 5-12 Cost management Concepts ............................................................................ 5-16 Full Cost............................................................................................................ 5-16 Cost Management During Contingency Operations......................................... 5-18 Cost Estimates for Contingency Operations .................................................... 5-19 Contingency Cost Reporting ............................................................................ 5-20 Cost Collection ................................................................................................. 5-21

OPERATIONAL ART AND PLANNING ............................................................ 6-1

Section I ? Planning ......................................................................................... 6-2 FM Planning Using the Military Decision Making Process (MDMP)................... 6-3

Section II ? Preparation.................................................................................... 6-8 Troop Leading Procedures (TLP) ....................................................................... 6-8

Section III ? Execution ..................................................................................... 6-8 Mission Command .............................................................................................. 6-8 Expeditionary Sustainment Command (ESC) Financial Management Support Operations (FM SPO) ......................................................................................... 6-9 Financial Management Staff Officer (S-8) ........................................................ 6-10 Financial Management Support Center............................................................ 6-10 Considerations in Support of the Procurement Process .................................. 6-11

Section IV ? Assessment ............................................................................... 6-12

Section V? Operation Plan and Order Development .................................. 6-14

Section VI ? Planning and Operations Activities ........................................ 6-17 Pre-Deployment Operations ............................................................................. 6-17 Deployment and Unified Land Operations ....................................................... 6-19 Stability Operations .......................................................................................... 6-19 Redeployment .................................................................................................. 6-20

MANAGEMENT INTERNAL CONTROLS......................................................... 7-1

Section I ? Management Responsibilites....................................................... 7-1 Internal Control Process ..................................................................................... 7-5 Establishing Managers' Internal Control Program (MICP) ................................. 7-5 Establishing Finance Operations Internal Review Program and Quality Assurance (QA) Program ................................................................................... 7-5 Consolidating the Financial Management Units Internal Review Program with the MICP Functional Review....................................................................... 7-7 Assessments and Corrective Actions ................................................................. 7-8

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Contents

Chapter 8

Section II ? Audit Readiness .......................................................................... 7-10

INFORMATION MANAGEMENT ....................................................................... 8-1 Section I ? Software used in support of the FM mission .............................. 8-1 Resource Management Software ....................................................................... 8-2 Contracting Software .......................................................................................... 8-3 Logistics Software ............................................................................................... 8-4 Other Software In Support of FM ........................................................................ 8-5

Section II ? Financial Management Hardware................................................8-6 Communication Requirements............................................................................8-8

Section III - Financial Management Software................................................. 8-9 Computerized Accounts Payable System Windows (CAPSW) ........................ 8-10

Section IV ? Communications Networks ...................................................... 8-10 Internal Fixed Site Communications ................................................................. 8-12 Base and Remote Support Operations ............................................................. 8-12 Tactical Operations Interface ............................................................................ 8-13 Communications Security ................................................................................. 8-13 Signal Operating Instructions (SOI) .................................................................. 8-13 Communication Networks ................................................................................. 8-13 Theater Services ............................................................................................... 8-14

Section V ? Organizational Information Technology (IT) Capabilities ...... 8-14 Section VI ? E-commerce ............................................................................... 8-15

GLOSSARY .......................................................................................... Glossary-1

REFERENCES.................................................................................. References-1

INDEX ......................................................................................................... Index-1

Figures

Figure 1-1. Principles of Financial Management ................................................................... 1-2 Figure 1-2. Financial management core competencies ......................................................... 1-4 Figure 1-3. Fiscal triad ........................................................................................................... 1-7 Figure 1-4. Authorities for theater Army sustainment responsibilities ................................... 1-9 Figure 1-5. Financial management operations .................................................................... 1-12 Figure 1-6. Theater Army G-8 .............................................................................................. 1-14 Figure 1-7. Notional theater sustainment command structure............................................. 1-18 Figure 1-8. Corps G-8 organizational structure ................................................................... 1-20 Figure 1-9. Financial management support center (FMSC) ................................................ 1-21 Figure 1-10. Division G-8 organizational structure .............................................................. 1-24 Figure 1-11. Financial management support unit (FMSU)................................................... 1-26 Figure 1-12. Financial management support detachment (FMSD) ..................................... 1-28 Figure 1-13. Notional FM overseas contingency operations (OCO).................................... 1-30 Figure 2-1. Appropriation/authorization process .................................................................... 2-2 Figure 2-2. Distribution of funds ............................................................................................. 2-5

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Contents

Figure 2-3. Planning, programming and budget execution (PPBE) flow chart..................... 2-17 Figure 3-1. Procure to pay process (FM procurement support) ............................................. 3-9 Figure 4-1. Pay support changes document flow ................................................................... 4-3 Figure 5-1. Stages of a transaction ........................................................................................ 5-3 Figure 5-2. Cost management process ................................................................................ 5-13 Figure 5-3. Cost informed decision making .......................................................................... 5-15 Figure 5-4. Developing the cost metric................................................................................. 5-15 Figure 5-5. Example of full cost concept for a BCTs operational readiness ........................ 5-18 Figure 6-1. Operations Process.............................................................................................. 6-2 Figure 6-2. Military decision making process ......................................................................... 6-4 Figure 6-3. Example of FM running estimate template .......................................................... 6-6 Figure 7-1. Management control ............................................................................................ 7-6 Figure 7-2. ASCC G-8 Management Internal Control Program (MICP) ................................. 7-7 Figure 8-1. Financial Management Information Systems (FMIS)........................................... 8-2 Figure 8-2. AN/TYQ-132 V (2), FMTP Expanded System ..................................................... 8-7 Figure 8-3. AN/TYQ-132 V (1), FMTP Basic System ............................................................. 8-7 Figure 8-4. FMTP within financial management operations ................................................... 8-8

Tables

Table 2-1. Strategic level funding support tasks .................................................................. 2-17 Table 2-2. Operational level funding tasks ........................................................................... 2-19 Table 2-3. Tactical level funding tasks ................................................................................. 2-20 Table 6-1. FM appendix to the service support annex of the OPLAN and OPOR ............... 6-14

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Preface

Field Manual 1-06, Financial Management Operations, provides doctrine on how financial management (FM) supports unified land operations. The intent of this manual is to describe how FM complements combat power, supports strategic and operational reach, and enables endurance. This manual provides the foundation that supports development of the doctrine, organization, training, materiel, leadership and education, personnel, and facilities domains to support the modular Army, and establishes how FM operations integrates and synchronizes into the overall operations process.

The principal audience for Field Manual 1-06 is all members of the profession of arms. Commanders and staffs of the Army headquarters serving as joint task force or multinational headquarters should also refer to applicable joint or multinational doctrine concerning the range of military operations and joint or multinational forces. Trainers and educators throughout the Army will also use this publication.

Commanders, staffs, and subordinates ensure that their decisions and actions comply with applicable United States, international, and in some cases host-nation laws and regulations. Commanders at all levels ensure that their Soldiers operate in accordance with the law of war and the rules of engagement. (See Field Manual 27-10.)

Field Manual 1-06 uses joint terms where applicable. Selected joint and Army terms and definitions appear in both the glossary and the text. Terms for which Field Manual 1-06 is the proponent publication (the authority) are italicized in the text and are marked with an asterisk (*). Terms and definitions for which Field Manual 1-06 is the proponent publication are boldfaced in the text. For other definitions shown in the text, the term is italicized and the number of the proponent publication follows the definition.

Field Manual 1-06 applies to the Active Army, Army National Guard/Army National Guard of the United States, and the United States Army Reserve unless otherwise stated.

The proponent of the Field Manual 1-06 is the United States Army Combined Arms Center. The preparing agency is the Combined Arms Doctrine Directorate, United States Army Soldier Support Institute. Send comments and recommendations using Department of Army (DA) Form 2028 (Recommended Changes to Publications and Blank Forms) to Commander, U.S. Army Soldier Support Institute, ATTN: ATSG-CDI, Building 10000, Fort Jackson, SC 29207-7045, by email to usarmy.jackson.93-sig-bde.list.jackson-atsg-cdidfm-doctrine@mail.mil; or submit an electronic DA Form 2028.

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