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

This publication is available at Army Knowledge Online (). To receive publishing updates, please subscribe at

.

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.

i

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

ii

FM 1-06

15 April 2014

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

15 April 2014

FM 1-06

iii

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download