601,VOLUME 2 29 JANUARY 2021 Financial Management

BY ORDER OF THE

SECRETARY OF THE AIR FORCE

AIR FORCE INSTRUCTION 65-

601,VOLUME 2

29 JANUARY 2021

Financial Management

BUDGET MANAGEMENT FOR

OPERATIONS

COMPLIANCE WITH THIS PUBLICATION IS MANDATORY

ACCESSIBILITY: Publications and forms are available for downloading or ordering on the

e-Publishing website at www.e-Publishing.af.mil.

RELEASABILITY: There are no releasability restrictions on this publication.

OPR: SAF/FMBOI

Supersedes: AFI65-601V2, 14 July 2017

Certified by: SAF/FMB

(Maj Gen James D. Peccia)

Pages: 66

This instruction implements Department of the Air Force Policy Directive (DAFPD) 65-6,

Budget and prescribes procedures for administering and executing the Department of the Air

Force operating budget. Compliance with the attachments in this publication is mandatory. The

instruction applies to all civilian employees and uniformed members of the Department of the

Air Force, Air Force Reserve, and Air National Guard to include all individuals who perform

financial management analysis and resource management at all levels, except where noted

otherwise. The instruction references United States Air Force structure but is relevant to all

corresponding United States Space Force elements. Ensure that all records created as a result of

processes prescribed in this publication are maintained in accordance with Air Force Instruction

(AFI) 33-322, Records Management and Information Governance Program and disposed of in

accordance with Air Force Records Information Management System Records Disposition

Schedule. Refer recommended changes and questions about this publication to the Office of

Primary Responsibility (OPR) using the Air Force (AF) Form 847, Recommendation for Change

of Publication; route AF Forms 847 from the field through the appropriate functional chain of

command. This publication may be supplemented at any level, but all supplements must be

routed to the OPR of this publication for coordination prior to certification and approval.

The authorities to waive wing/unit level requirements in this publication are identified with a

Tier (T-0, T-1, T-2, T-3) number following the compliance statement. See DAFI 33-360,

Publications and Forms Management, for a description of the authorities associated with the Tier

numbers. Submit requests for waivers through the chain of command to the appropriate Tier

waiver approval authority, or alternately, to the requestor’s commander for non-tiered

2  AFI65-601V2  29 JANUARY 2021 
compliance items.   Ensure  that  all  records  created  as  a  result  of  processes  prescribed  in  this 
publication  are  maintained  in  accordance  with  Air  Force  Instruction  (AFI)  33-322,  Records 
Management  and  Information  Governance  Program  and  disposed  of  in  accordance  with  Air 
Force Records Information Management System Records Disposition Schedule.  The use of the 
name or mark of any specific manufacturer, commercial product, commodity, or service in this 
publication does not imply endorsement by the Air Force. 
SUMMARY OF CHANGES 
This  document  has  been  substantially  revised  and  needs  to  be  completely  reviewed.    Major 
changes  include  changes  to  organizational  symbols,  regulatory  instructions,  processes  and 
procedures used in the financial management (FM) and oversight of the Department of the Air 
Force O&M appropriation to include: Tier Waiver Authorities as directed by DAFI 33-360 and 
the removal of guidance regarding civilian pay and Attachment 6, civilian manpower funding, 
execution, and reporting. 
 
Chapter 1—THE ROLES AND RESPONSIBILITIES OF FINANCIAL MANAGERS    6 
1.1.  Duties of Financial Management and Analysis (FMA) Offices at All Levels. ........   6 
1.2.  Major Command (MAJCOM)/ANG/Air Force Reserve (AFR) FMA Officer 
Duties. ......................................................................................................................   6 
1.3.  Supervising Subordinate FMA Offices. ...................................................................   8 
1.4.  Installation FMA Officer Duties. .............................................................................   8 
1.5.  Releasing Budget Data Information Outside the Air Force.   ..................................   10 
Chapter 2—PREPARING AND EXECUTING THE EXECUTION PLAN (EP)    11 
2.1.  Issuing the Budget Call. ...........................................................................................   11 
2.2.  Balancing the Program. ............................................................................................   11 
2.3.  Enhancing Flexibility and Credibility. .....................................................................   11 
2.4.  Reviewing the Execution Plan (MAJCOM). ...........................................................   11 
2.5.  Reviewing the Execution Plan (SAF/FMBO/NGB/FMA/HAF/RECB and 
AFIMSC). ................................................................................................................   12 
2.6.  Issuing and Updating Funding Documents. .............................................................   12 
2.7.  Executing the Annual Budget. .................................................................................   12 
2.8.  Reporting Monthly and Quarterly Status. ................................................................   12 
2.9.  Closeout Procedures and Closeout Report. ..............................................................   13 
2.10.  Managing Air Force Resources. ..............................................................................   13 

AFI65-601V2  29 JANUARY 2021  3 
11.  Administering Management Control Points. ...........................................................   15 
12.  Establishing Review Committees. ...........................................................................   15 
13.  Preparing Data for Review Authorities. ...................................................................   16 
14.  Briefing Committees. ...............................................................................................   16 
15.  Controlling and Executing the OBA. .......................................................................   17 
16.  Analysis of Prior Year Unobligated Balances (Fall-out/Fall-in). ............................   17 
Chapter 3—ISSUING AND DISTRIBUTING OPERATING BUDGET AUTHORITY 
(OBA)    19 
1.  Overview. .................................................................................................................   19 
2.  Controlling Year-end Spending. ..............................................................................   19 
3.  Issuing OBA (Headquarters). ...................................................................................   19 
4.  Issuing OBAs (MAJCOMs/OACs)..........................................................................   20 
5.  Distributing OBAs at Installation Level.   ...............................................................   20 
6.  Distributing Tenant OBAs. ......................................................................................   20 
Chapter 4—ADMINISTERING TARGETS, LIMITATIONS AND OBA CONTROLS    21 
1.  Complying With Targets and Limitations in OBAs. ...............................................   21 
2.  Administering Controls. ...........................................................................................   22 
3.  Administering Targets and Limitations in Other Appropriations. ...........................   22 
Chapter 5—LOADING THE OPERATING BUDGET AUTHORITY INTO THE 
ACCOUNTING SYSTEMS FOR OPERATIONS    23 
1.  Using the OBAD/FAD. ............................................................................................   23 
2.  Relating OBAD/FAD Amounts and Computer Records. ........................................   23 
3.  Distributing OBAD/FAD Authority. .......................................................................   24 
4.  Loading Targets in the Accounting Systems. ..........................................................   24 
5.  Loading Targets in the Base Supply System. ..........................................................   26 
Chapter 6—DATA ELEMENTS AND CODES    28 
1.  Overview. .................................................................................................................   28 
2.  Using Data Elements. ..............................................................................................   28 
3.  Using the Account Structure. ...................................................................................   28 

4  AFI65-601V2  29 JANUARY 2021 
Figure  6.1.  Data Elements Found In Financial Management Data Dictionary at Data Quality 
Service. ....................................................................................................................   29 
Chapter 7—USING THE OPERATING BUDGET AND ALLOTMENT LEDGERS    30 
7.1.  Using Ledgers. .........................................................................................................   30 
7.2.  Frequency.................................................................................................................   30 
7.3.  Loading Annual and Quarterly Authorities. ............................................................   30 
Chapter 8—ADMINISTERING, EXPENSING AND REPORTING MILITARY 
PERSONNEL COSTS    31 
8.1.  Managing Military Personnel Expense Authority. ..................................................   31 
8.2.  Using Standard Rates for Military Personnel.  ........................................................   31 
8.3.  Controlling Other Military Personnel Expenses. .....................................................   31 
8.4.  Administering and Reporting Military Personnel Expense Authority. ....................   32 
8.5.  Description of Costs Covered by the Regular Air Force Military Personnel 
Appropriation. ..........................................................................................................   33 
8.6.  Cost of Contingency Operations. .............................................................................   34 
8.7.  Military Personnel Related Guidance. .....................................................................   34 
Chapter 9—RESOURCE MANAGEMENT SYSTEM (RMS)    35 
9.1.  Overview. .................................................................................................................   35 
9.2.  RMS Duties..............................................................................................................   35 
9.3.  Participatory Financial Management. ......................................................................   37 
Table  9.1.  Sample FMB Membership List. ...............................................................................   38 
Table  9.2.  Sample FWG Membership List. ..............................................................................   39 
9.4.  Administering the Operating Budget and Execution Plan. ......................................   40 
9.5.  Using Productivity and Related Programs. ..............................................................   42 
Chapter 10—RESOURCE MANAGEMENT SYSTEM (RMS) TRAINING    44 
10.1.  General Information. ................................................................................................   44 
10.2.  Initial RMS Training. ...............................................................................................   44 
10.3.  Continuation and Refresher Training. ......................................................................   48 
10.4.  Administration of the RMS Training Program. .......................................................   48 
Table  10.1.  RMS Training Documentation Format. ...................................................................   49 

AFI65-601V2  29 JANUARY 2021  5 
Attachment 1—GLOSSARY OF REFERENCES AND SUPPORTING INFORMATION    50 
Attachment 2—BUDGETING AND ACCOUNTING SYSTEM FOR OPERATIONS    55 
Attachment 3—BUDGET ACTIVITIES    59 
Attachment 4—THE EXECUTION PLAN    61 
Attachment 5—ACCOUNTING CLASSIFICATION CODES FOR MAJOR 
APPROPRIATIONS    63 
 

6 AFI65-601V2 29 JANUARY 2021

Chapter 1

THE ROLES AND RESPONSIBILITIES OF FINANCIAL MANAGERS

1.1. Duties of Financial Management and Analysis (FMA) Offices at All Levels.

1.1.1. Use their experience, functional area data and financial information to help

commanders and organizational managers effectively accomplish their missions. Estimate

the cost of Air Force programs, develop budget estimates and financial policies, guide and

direct budget justification and help commanders administer all available appropriated funds.

(T-0).

1.1.2. Work with other staff and operators to prepare and fulfill the execution plan (EP).

Help organizational managers justify and achieve their goals as financial managers in current

and prior fiscal years.

1.1.3. Manage resources within approved budgets and limitations and identify resources at

the appropriate level, using correct accounting codes for the accounting system used. (T-0).

1.1.4. Work with organizational managers at each applicable level to create budget

requirements showing expected obligations for submission to the Secretary of Defense. (T-

1).

1.1.5. Review all budget and execution plans submitted to Office of the Deputy Assistant

Secretary for Budget SAF/FMB for Regular, National Guard Bureau (NGB) Financial

Management and Analysis, NGB/FMA for Air National Guard (ANG) appropriations and

Headquarters Air Force Reserve Component HAF/RECB for Air Force Reserve

appropriation. These offices will make sure the estimates are balanced and comply with

guidance. (T-1).

1.1.6. Emphasize proper financial management at the resource center level. Communicate

current budget concepts, policies, procedures and techniques to Resource Center Managers

(RCMs).

1.1.7. Work closely with A1 and force support squadrons to manage civilian personnel

resources in accordance with AFI 36-129, Civilian Personnel Management and

Administration.

1.2. Major Command (MAJCOM)/ANG/Air Force Reserve (AFR) FMA Officer Duties.

1.2.1. Develops budgets and execution plans for appropriations according to instructions

from higher authority and with the advice of appropriate staff. (T-1).

1.2.2. Receives and distributes budget authorities (with staff participation).

1.2.3. Monitors reporting of funds transferred to lower levels. (T-1).

1.2.4. Helps subordinate organizations with programs and funding.

1.2.5. Plans and continuously evaluates subordinate organizations’ programs to determine:

1.2.5.1. Actual accomplishments versus planned programs.

1.2.5.2. Availability of resources to meet the rest of approved objectives.

AFI65-601V2 29 JANUARY 2021 7

1.2.5.3. Areas in which funds need to be reprogrammed to meet plans.

1.2.5.4. Effect on funding of proposed mission program changes and reprogramming

actions.

1.2.6. Advises the staff on results of analyses and makes appropriate recommendations.

(T-2).

1.2.7. Adjusts the execution plan according to revised objectives, explains the capabilities

funded, capabilities not funded and associated risks and impacts.

1.2.8. Adjusts distribution of amounts within the approved execution plan to meet current

requirements.

1.2.9. Monitors the status of the appropriation reimbursement program:

1.2.9.1. Receives and distributes reimbursable budget authority.

1.2.9.2. Reviews status of customer orders received, rate of execution against unfilled

orders and collection of reimbursements.

1.2.9.3. Recommends revisions to operating budget authorizations based on changes in

the amount of customer orders anticipated.

1.2.9.4. Reviews to ensure all FMA offices and units reconcile and balance all direct and

reimbursable unfilled customer orders to reimbursable obligations by 30 September of

each fiscal year.

1.2.9.4.1. Though balancing to reimbursable obligations for current year

appropriations is not a monthly requirement, it should be accomplished to the greatest

extent possible on an ongoing basis, not only at year-end.

1.2.9.4.2. Ensures all unfilled customer orders and corresponding obligations are

balanced monthly for expired appropriations and annually for current and expiring

appropriations. (T-1).

1.2.9.5. Reviews to ensure all FMA offices and units reconcile and balance all

reimbursable accrued expenditures unpaid and accrued expenditures paid, to earned

reimbursements (filled customer orders collected and uncollected) by 30 September of

each fiscal year. See paragraph 1.2.20 (T-1).

1.2.10. Conducts special studies pertaining to forecasts, projections or requirement

estimates.

1.2.11. Advises the staff on the propriety of proposed uses of financial resources.

1.2.12. Advises, assists and trains base-level organizations.

1.2.13. Develops policies and procedures for use at MAJCOM, ANG/AFR and base-level to

administer operating budgets and execution plans.

1.2.14. Develops emergency operating plans including reporting instructions and

requirements for special programs.

1.2.15. Supplements Air Force instructions to address unique command issues.

1.2.16. Monitors preparation of financial management instructions at bases.

8 AFI65-601V2 29 JANUARY 2021

1.2.17. Reviews and coordinates on concurrent use and support agreements.

1.2.18. Reviews audit and Inspector General reports and corrects problems.

1.2.19. Advises and assists the Comptroller in developingandimplementing a comprehensive

Resource Management System (RMS) training program.

1.2.20. Performs monthly end of month balancing of funds distribution in the Automated

funds management system and funds execution in the General Accounting and Financial

System (GAFS) or Defense Enterprise Accounting and Management System (DEAMS).

1.2.21. Monitors timely and accurate end of month balancing of funds distribution and

execution at the base-level.

1.3. Supervising Subordinate FMA Offices. Command/Reserve Component FMA offices will

provide oversight and assist subordinate FMA offices. (T-1).

1.3.1. Review estimates and status reports.

1.3.2. Ensure compliance with budget policies, procedures, objectives, instructions and

directives. (T-1).

1.3.3. Visit subordinate offices on request or provide personal help when needed (e.g., to

respond to inspection reports or evaluate propriety of obligations).

1.3.4. Review and approve upward obligation adjustments using the upward obligation

adjustment module in Financial Management Suite (FMSuite) (referred to as “the Upward

Obligation Adjustment system”).

1.3.5. Review threshold limits before approving upward obligation adjustment requests in

the Upward Obligation Adjustment system.

1.4. Installation FMA Officer Duties.

1.4.1. Develops estimates of requirements for specific items or services with appropriate

staff and operating organizations.

1.4.2. Assists RCMs, along with other appropriate staff offices, in estimating financial

requirements.

1.4.3. Maintains the accounting code structure required to administer the budget properly

with the accounting activity and other staff and operating organizations (Reference: FM

Data Quality Service, point of contact: SAF/FMPS). (T-0).

1.4.4. Provides budget services to tenant organizations when requested.

1.4.5. Receives annual and quarterly budget authorities per the approved annual operating

program. (T-0).

1.4.5.1. Distributes budget authorities to operating organizations with help from the

Financial Working Group (FWG) and approval of the Financial Management Board

(FMB). (T-3).

1.4.5.2. Informs operating organizations about distribution as determined in paragraph

1.4.5.1

AFI65-601V2 29 JANUARY 2021 9

1.4.6. Monitors how host and tenant organizations carry out annual and quarterly budget

authorities (when requested per AFI 25-201, Intra-Service, Intra-Agency and Inter-Agency

Support Agreements Procedures).

1.4.6.1. Maintains continuous contact with operating organizations to be familiar with

accomplishments and problems.

1.4.6.2. Joins RCMs and Resource Advisors (RAs) in evaluations to determine:

1.4.6.2.1. Actual accomplishment compared to planned use of operating budget

authority.

1.4.6.2.2. Availability of budget authority to provide a balanced application of

resources to approved objectives.

1.4.6.2.3. Areas where reprogramming may be necessary.

1.4.6.3. Advises staff and operating organizations of analyses’ results and makes

appropriate recommendations.

1.4.6.4. Examines proposed installation mission programming and reprogramming

actions to determine if sufficient budget authority can cover the proposed action.

1.4.6.5. Revises the budget or execution plan according to revised requirements and

objectives, or according to instructions from higher authority with appropriate staff and

operating organizations. (T-1).

1.4.6.6. Prepares and submits justification to higher headquarters to increase or decrease

requirements.

1.4.6.7. Monitors the status of the appropriation reimbursement program:

1.4.6.7.1. Estimates anticipated reimbursements with appropriate staff and operating

organizations.

1.4.6.7.2. Receives and distributes reimbursable budget authority.

1.4.6.7.3. Reviews status of customer orders received, rate of execution against

unfilled orders and collection of reimbursements.

1.4.6.7.4. Reviews, analyzes and compares anticipated reimbursements to realized

reimbursements by program.

1.4.6.7.5. Reviews status of undelivered reimbursable orders and actions to collect

reimbursable orders.

1.4.6.7.6. Recommends revisions to operating budget authorizations based on

changes in the amount of customer orders anticipated.

1.4.6.7.7. Reviews to ensure all FMA offices and units reconcile and balance all

direct and reimbursable unfilled customer orders to reimbursable obligations by 30

September of each fiscal year.

1.4.6.7.8. Though balancing to reimbursable obligations for current year

appropriations is not a monthly requirement, it should be accomplished to the greatest

extent possible on an ongoing basis, not only at year-end.

10 AFI65-601V2 29 JANUARY 2021

1.4.6.7.9. Ensures all unfilled customer orders and corresponding obligations are

balanced monthly for expired appropriations and annually for current and expiring

appropriations. (T-1).

1.4.6.7.10. Reviews to ensure all FMA offices and units reconcile and balance all

reimbursable accrued expenditures accrued expenditures unpaid and accrued

expenditures paid, to earned reimbursements (filled customer orders collected and

uncollected) by 30 September of each fiscal year. (T-1).

1.4.6.8. Advises the staff on the propriety of proposed uses of financial resources.

1.4.6.9. Adjusts the distribution to meet current requirements when notified of overruns

by the accounting activity or changes requested by the appropriate operating

organizations. (T-2).

1.4.7. Determines through analyses how changes, additions or revisions to Air Force

programs affect financial requirements and advises the staff and operating organizations.

1.4.8. Coordinates and takes appropriate action on the budgetary implications of audit report

estimated potential monetary benefits data (See AFI 65-301, Internal Audit Services). (T-1).

1.4.9. Conducts special studies pertaining to forecasts, projections or estimates of

requirements with current or future budgetary implications.

1.4.10. Implements prescribed Air Force and MAJCOM financial management training

programs. (T-1).

1.4.11. Develops and maintains an installation RMS training program. Ensures training

program is tailored to the specific training requirements of host and tenant RCMs, Cost

Center Managers (CCMs) and RAs. (T-1).

1.4.12. Arranges for the availability of specialists who are proficient with local mission

requirements to assist in RMS training. Utilize experts from primary resource management

elements such as logistics readiness, financial management analysis, civil engineering and

contracting.

1.4.13. Carefully plans, organizes and presents initial RMS training sessions according to

mission requirements. Because each installation is different, local training programs must be

as flexible as possible. See Chapter 10 for training requirements. (T-3).

1.4.14. Gives initial training to RCMs within 90 days of assignment. (T-2).

1.4.15. Starts initial training for RAs within 30 days after assignment and completes it within

90 days. (T-2).

1.4.16. Offers continuation or refresher RMS training as needed throughout the year. Tailors

RMS training to help RAs become more proficient with local budget processes.

1.5. Releasing Budget Data Information Outside the Air Force. Comptrollers at every level

of command must coordinate with Public Affairs Officer or Information Protection Office, at the

appropriate level of command will prepare and coordinate the release of budget data external to

the Air Force. (T-1). Do not use or represent financial information relating to the status of Air

Force appropriated funds, or to amounts contained in budget estimates, (internal or external) as

the official Air Force status. (T-1).

AFI65-601V2 29 JANUARY 2021 11

Chapter 2

PREPARING AND EXECUTING THE EXECUTION PLAN (EP)

2.1. Issuing the Budget Call. SAF/FMB and the Air Force Installation and Management and

Support Center (AFIMSC) will issue annual instructions for preparing and submitting the

execution plan. (T-3).

2.1.1. In the budget call, SAF/FMBO and AFIMSC will provide:

2.1.1.1. Funding levels by appropriate accounting element. (T-1).

2.1.1.2. Special guidance and instructions. (T-1).

2.1.2. MAJCOMs, combatant commands and other operating agencies may supplement the

SAF/FMBO call with their own specific instructions.

2.2. Balancing the Program. Distribute funding using the SAF/FMBO/ANG/AFR and

AFIMSC provided bogey. (T-1). Consolidate requirements from each Responsibility Center

(RC) to form the total requirement and a balanced program. (T-1).

2.2.1. Commands must plan to operate within the funding level provided to carry out the

new fiscal year’s mission. (T-1).

2.2.2. The final command plan must balance to the SAF/FMBO and AFIMSC bogey

provided and must comply with all guidance and instructions. (T-1).

2.2.3. Subactivity Group migrations should be minimized as they lead to discrepancies

between execution and programming of funds, potentially resulting in reductions to Air

Force total obligation authority (TOA) from congressional marks.

2.3. Enhancing Flexibility and Credibility. Give commanders and managers at all levels

considerable flexibility in distributing funding. Each manager should have the chance to plan

using next year’s tentative funding to best accomplish the organization’s mission. If necessary,

commanders should recommend program changes (e.g., flying hours, manpower authorizations,

equipment authorizations or organization) to the next higher level in their chain. Usually, the

next higher level of review will approve credible distribution plans. (T-3).

2.4. Reviewing the Execution Plan (MAJCOM). Installations and units complete their EPs on

request and forward them to their MAJCOM. (T-2). MAJCOMs will:

2.4.1. Review installation program and cost data. (T-2).

2.4.2. Determine the validity of requirements as well as conformity to MAJCOM

instructions. (T-2).

2.4.3. Review and validate installation and unit submissions. (T-2).

2.4.4. Consolidate submissions and submit the command execution plan to SAF/FMBO and

AFIMSC. (T-2).

12 AFI65-601V2 29 JANUARY 2021

2.5. Reviewing the Execution Plan (SAF/FMBO/NGB/FMA/HAF/RECB and

AFIMSC). These headquarters organizations will:

2.5.1. Correlate the total amounts approved for field commanders with the anticipated

amounts to be appropriated by Congress. (T-2). Note: Congress normally holds hearings on

the President’s Budget between February and April.

2.5.2. Adjust the EP using the latest program guidance. (T-2).

2.5.3. Send the command distribution within 30 days of signed appropriation. (T-2).

2.6. Issuing and Updating Funding Documents. To the extent possible, SAF/FMB’s intent is

to distribute all command funding once the Department of Defense Appropriation Act is enacted.

SAF/FMB utilizes the automated funds management system and the electronic funds distribution

system to provide commands to the official authorization in the form of an Operating Budget

Authority Document (OBAD) or Funding Authorization Document (FAD). Funding documents

will be sent throughout the year as needed and may include additional information such as

Program Element (PE), Element of Expense Investment Code (EEIC), object class and imposed

legal limitations (floors and ceilings). (T-1). SAF/FMB will provide narrative guidance for

statutory and regulatory limitations and will explain reasons for significant changes to fund

requests. (T-1). MAJCOMs will:

2.6.1. Reprogram annual obligation authority within budget activity (BA) consistent with

limitations stated in the OBAD. For example, reprograming quarterly direct obligation

authority between BAs provided no quarterly program exceeds the corresponding annual BA

authority. (T-2).

2.6.2. Notify higher headquarters of significant changes in fund distribution along with an

explanation on when and why plans changed. (T-2).

2.7. Executing the Annual Budget. Air Force activities may begin incurring obligations when

SAF/FMB/NGB/FMA/HAF/RECB issues budget authority. After Congress enacts the

Department of Defense (DoD) Appropriation Act and SAF/FMB, NGB/FMA, HAF/RECB

receives its allotment from the Office of the Secretary of Defense Comptroller, SAF/FMB,

NGB/FMA, HAF/RECB will issue OBADs to MAJCOMs/units. (T-2). When Congress does

not pass the new fiscal year’s appropriation act by the start of the new fiscal year, SAF/FMB will

provide interim guidance based on congressional passage of continuing resolution authority and

emergency authority which allows DoD activities to spend money pending passage of the DoD

Appropriations Act. (T-0).

2.8. Reporting Monthly and Quarterly Status. SAF/FMB requires Defense Finance and

Accounting Service (DFAS) to make data that shows current year-to-date expenses, obligations,

commitments and prior year data (see Defense Finance and Accounting Service - Denver Center

(DFAS-DE) 7010.1-R, General Accounting and Finance Systems at Base Level, Chapter 29 and

DFAS-DE 7077.2-M, USAF Standard Base-Level General Accounting and Finance System

(GAFS), Sections 75 and 76).

2.8.1. Commands and wings may use programs such as commander’s resource integration

system or DEAMS to develop their status of funds in accordance with command and local

guidance.

AFI65-601V2 29 JANUARY 2021 13

2.8.2. Commands and bases will analyze reports for lags or accelerations in planned

programs. SAF/FMB may require explanations when commands are ahead of or behind

schedule. (T-3).

2.9. Closeout Procedures and Closeout Report. In managing Air Force funds, FMA offices

shall:

2.9.1. Use available funds most effectively for recognized operational needs.

2.9.2. Ensure all obligations recorded by 30 September are accurate, so the Air Force does

not lose funds because of administrative errors or inflated obligation estimates. Valid

obligations must be properly recorded in the accounting system no later than midnight to

avoid unnecessary end of year funding shortfalls or potential certification violations. (T-3).

2.9.3. Closeout Procedures. SAF/FMB issues year-end closeout instructions and guidance to

MAJCOMs and Field Operating Agencies. MAJCOMs will issue their own instructions

covering standard closeout actions. (T-2). Bases must create their own closeout checklist

which includes all SAF/FMB, MAJCOM, DFAS and Contracting Squadron guidance, as well

as any base specific areas that require emphasis during the closeout process. (T-3).

SAF/FMB has not established a single set of Air Force closeout procedures because each

MAJCOM is different. MAJCOMs will:

2.9.3.1. Appoint a special closeout officer and request each base appoint a closeout point

of contact. (T-2).

2.9.3.2. Establish a schedule of events with specific deadline dates. (T-2).

2.9.3.3. Provide the bases with additional guidance with regard to specific programs

(e.g., Defense Working Capital Fund, Medical and Military Family Housing) or request

additional information and reports when needed. (T-2).

2.9.3.4. Review previous year’s closeout reports for lessons learned, especially

concerning preventable fall-out/fall-in. (T-2).

2.9.4. Closeout Report. An execution plan mainly shows how a user intends to accomplish a

program and use the provided commitment and obligation authority. FMA offices will

analyze how well the user did in the closeout report. (T-3). Provide:

2.9.4.1. Reasons for actual performance differing substantially from planned

performance.

2.9.4.2. Reviews to compare actual fiscal year accomplishments to projections and

measure the effective use of total operating budget authority (OBA).

2.9.4.3. Per paragraph 2.16 , integrate lessons learned in preparing for the next fiscal

year closeout to prevent fall-out and fall-in.

2.10. Managing Air Force Resources. Command and base personnel need to know specific

actions for administering the financial management program. Technical procedures such as

expense computation, obligation authority, and FMA inputs are discussed in various chapters

throughout this AFI. Apply the following administrative procedures for good management at

command and base-level:

14 AFI65-601V2 29 JANUARY 2021

2.10.1. Fix responsibility when possible. The commander is ultimately responsible for

formulating and executing the execution plan. (T-2). Identify other managers with their

specific financial management responsibilities (e.g., the civil engineer with facility,

sustainment, restoration and modernization; the transportation officer with vehicle and

transportation requirements). (T-2). Identify corollary offices of responsibility (e.g., aircraft

maintenance requirements based on the flying hours managed by operations). Establish a

FWG and FMB to review EPs. (T-2). Confirm responsibilities in writing.

2.10.2. Identify base programs and tasks. (T-2).

2.10.3. Price approved programs with the correct level of granularity (responsibility center,

PE, object class, budget activity, etc). (T-2).

2.10.4. Have the FWG review and FMB approve the priced program. (T-2).

2.10.5. Write defensible and concise narrative justification for the EP to explain why funds

are required. (T-2).

2.10.6. Evaluate and advise the commander and staff on the approved obligation authority.

Highlight the funding level effects on base mission. (T-2).

2.10.7. Present the recommended funding distribution to the FWG. (T-2).

2.10.8. Present the FWGs recommended funding distribution to the FMB and commander

for approval. (T-2).

2.10.9. Use the FMB’s and commander’s assessment of priorities to distribute the expense

and obligation authority to the responsibility centers.

2.10.10. Establish procedures, with the commander’s guidance, to buy the highest priority

goods and services within the available obligation authority.

2.10.11. Review and analyze reports that compare actual expenses and obligations with

established targets.

2.10.12. Meet with RAs and RCMs frequently to discuss problems and propose solutions.

Brief the FMB and commander on the status of funds, including reasons for variances

between actual and planned performance.

2.10.13. Ensure FMA, RAs and RCMs immediately follow-up to correct fund imbalances.

2.10.14. Ensure the AF is reimbursed for all reimbursable work performed by monitoring

reimbursable execution and earned reimbursements and performing annual reviews of

support agreement funding annexes.

2.10.15. Use FMSuite Open Document Analysis to review Open Document Listings (ODLs)

and perform Dormant Account Reviews (DAR).

2.10.15.1. Use of comment and attachment functions are mandatory for ODLs and DARs

in FMSuite Open Document Analysis. (T-0). Using these features will ensure

documentation is available for continuity purposes and provides the Air Force with

auditable records. (Reference: DFAS 7220.4-I, Tri-Annual Review Program).

AFI65-601V2 29 JANUARY 2021 15

2.10.15.2. Review ODLs at least quarterly in accordance with DFAS-DE 7010.1-R,

paragraph 18-9 and paragraph 19-5. (T-0). Note: Certain documents may need to be

reviewed on a more enhanced schedule. For example, FMA should consider reconciling

AF Forms 616, Fund Cite Authorization, every month to ensure obligations are being

posted (see DFAS-DE 7010-1-R, Chapter 17, Section A), as well as Department of

Defense (DD) Forms 448, Military Interdepartmental Purchase Request, in accordance

with AFI 65-118, Air Force Purchases Using Military Interdepartmental Purchase

Requests, Chapter 3.

2.10.15.3. Perform DARs IN ACCORDANCE WITH DoD FMR 7000.14-R, Volume 3,

Budget Execution – Availability and Use of Budgetary Resources, and DFAS 7220.4-I.

(T-0).

2.11. Administering Management Control Points. The three management control points are:

RCMs, Commanders (CC) and RAs. Duties are discussed further in Chapter 9.

2.11.1. The RCM normally heads an organization that plans, organizes, directs and

coordinates activities of subordinate organizations and functions (e.g., directorate and group

and squadron commanders). RCMs manage financial resources, direct work by cost centers

and appoint RAs (command, group or squadron organizational levels) to oversee and manage

unit resources.

2.11.2. The RAs who oversee the cost centers, gather and distribute cost data (e.g., flights),

regulate daily use of work hours, supplies, equipment, and services. RAs monitor the

relationship between resources used, products produced, and future needs.

2.11.3. The RA actively participates in resource management at command and base level,

including the planning, programming, budgeting, acquiring, consuming, storing and

disposing of resources. The RA is directly responsible to the RCM to include oversight and

training for CCMs.

2.12. Establishing Review Committees. Commanders at each level of command will establish

financial committees at each level of command to review estimates and create and execute

budgets. (T-2). Designate required membership for each committee. (T-2). MAJCOMs may

waive establishing the FWG where, due to the organization’s size, both committees would have

essentially the same membership. (See paragraph 10.3)

2.12.1. The comptroller or the financial management analysis officer chairs the FWG and

designates appropriate RAs and other members to comprise the FWG. (T-2). The FWG:

2.12.1.1. Reviews program and cost factors, compares actuals with prior year costs,

reviews justifications, periodically evaluates performance against estimates and submits a

recommended execution plan to the FMB. (T-2).

2.12.1.2. Maintains FWG minutes for higher authority review. (T-2).

2.12.1.3. Meets when needed to support the FMB. (T-2).

2.12.2. The FMB is the senior advisory committee. The commander or the deputy

commander chairs the committee. (T-2). Group commander-level members and the

comptroller (at installations), directors and special staffs (at commands) comprise the

membership. (T-2).

16 AFI65-601V2 29 JANUARY 2021

2.12.2.1. The FMB approves budgets, execution plans and revisions. (T-2). The FMB

also approves the annual funding distribution, establishes priorities and ensures

consistency with programs and missions. (T-2).

2.12.2.2. FMB approval represents the final, approved installation or command budget

submitted to higher command and the final distribution of funds received from higher

command.

2.12.2.3. The chairperson organizes the FMB meetings. The FMB retains minutes for

review by higher authority. (T-2).

2.13. Preparing Data for Review Authorities. Provide financial information to members of

the FMB and FWG for their review prior to the formal session. (T-2). The financial management

analysis officer:

2.13.1. In formulating the budget, consolidates separate RC estimates for the appropriate

committee review. (T-2).

2.13.2. In distributing the approved execution plan, prepares a comparative analysis of

financial authority requested and received, separately identifying fixed and variable

requirements. (T-2).

2.14. Briefing Committees.

2.14.1. The financial management analysis officer instructs personnel on how to brief the

FMB and FWG effectively. (T-2). Briefing consists of:

2.14.1.1. Pertinent instructions in the "call" from higher headquarters. (T-2).

2.14.1.2. Review of how the execution plan works. (T-2).

2.14.1.3. Recommended distribution of suggested obligation authority (if the OBA has

been received). (T-2).

2.14.2. Emphasize these points in the briefing:

2.14.2.1. Don’t overstate budget requirements to avoid affecting affects organizations

credibility. (T-2).

2.14.2.2. Be careful using prior year obligation data to avoid misleading data (may

include one-time costs). (T-2). Usually future programs are different from current

programs.

2.14.2.3. Base decisions on the requirement’s merit and not on the staff officer’s

enthusiasm (or dire predictions). (T-2).

2.14.2.4. Check new program’s current rates of execution. (T-2). Consider other factors,

such as, construction lead-time and hiring difficulties.

2.14.2.5. Highlight major programmatic changes affecting the execution plan (e.g.,

addition of a new program or wing).

2.14.3. Have program data (personnel strength, flying hours, construction programs, etc.)

available for committee personnel for the period covered.

AFI65-601V2 29 JANUARY 2021 17

2.15. Controlling and Executing the OBA. Upon receiving OBA, the installation (FWG, FMB

and commander) will establish a plan, phased by quarter for the fiscal year, which funds the

highest priority requirements. (T-2). Develop a well-defined, written plan supported by

command policy and enforced by the local commander. (T-2). Institute written management

controls at the start of the year to prevent waste of resources. (T-2). Common management

controls include:

2.15.1. Civilian Personnel Costs. The commander establishes a corporate board to ensure

civilian resources are used most efficiently and effectively. (T-2).

2.15.2. Temporary Duty Travel. Authorizing priority and mission requirements as well as

accurate estimates and voucher processing.

2.15.3. Contract Services. Tightly control use of contracts. The RCM reviews existing

contracts periodically (once a year or more) to determine if contracts still fill a need. (T-2).

The FWG screens all contracts for need during execution plan preparation. (T-2).

2.15.4. Supplies. Distribute reports from supply systems to RAs and CCMs. (T-2). These

reports show supply transactions and management indicators affecting materiel and financial

resources. Monitor and analyze reports to ensure customers order only essential supplies in

the quantities necessary to accomplish missions. (T-2).

2.15.4.1. RAs, CCMs and RCMs must take appropriate management actions (including

curtailing orders) to remain within authorized targets when there are no additional funds.

(T-1).

2.15.4.2. Cancel supplies-on-order and turn in excess supplies on-hand when a valid

need no longer exists (i.e., mission change). (T-2).

2.15.4.3. Investigate financial management indicators (such as credit or noncredit turn-

ins) that are abnormally high or low. (T-2).

2.15.5. Equipment. Pay attention to equipment management. This ensures funding is applied

to priority requirements. (T-3).

2.15.6. Utilities. Establish an effective Civil Engineering Utilities Conservation Program.

(T-3).

2.15.7. Staff Coordination. Managers planning operational exercises, establishing new

logistics ideas or initiating other special programs must coordinate with the financial

management analysis office to ensure programming and support for the planned activities.

(T-2).

2.15.8. Other. Add controls when needed to manage such items as staff car use, purchase

and rental of office equipment, base bus routes, use of ground vehicle fuels and rental of

mobile equipment. (T-3).

2.16. Analysis of Prior Year Unobligated Balances (Fall-out/Fall-in).

2.16.1. Every year the Air Force risks losing billions of dollars over the future years defense

program (FYDP) due to unexpended balances and historical under-execution. Many of these

cuts are based on the deobligation of expired funds, referred to as fall-out. In some cases,

obligations are underestimated and result in a “fall-in” situation, which requires additional

funds to cover the actual obligations. Historically, AF execution results in much more fall-

18 AFI65-601V2 29 JANUARY 2021

out than fall-in but it is important to understand and learn from the causes of both. Quarterly,

MAJCOM FMA must identify significant fall-out and fall-in, determine the cause of the fall-

out/fall-in and use the results for training fund holders, RAs, contracting officers and any

other responsible personnel. (T-2). In research and lessons learned take the following into

account:

2.16.1.1. Use the ODL and TAR in FMSuite Open Document Analysis as tools to

determine the validity of obligations. (T-2). Pay special attention to military

interdepartmental purchase requests and miscellaneous obligation reimbursement

documents. (T-2). Are there policies that result in obligations that subsequently may not

be required?

2.16.1.2. Was the amount of a miscellaneous obligation based on reasonable assurance?

Is the need for the reservation of funds well documented? Or was the amount established

on remote or extreme possibilities?

2.16.1.3. Use the amount of fall-out/fall-in as historical data for improving the estimate

on reoccurring obligations.

2.16.1.4. Was the obligation amount based solely to satisfy an available balance?

2.16.1.5. Suspense and actively monitor miscellaneous obligations for the actual

obligation or expense. As funding ages, unsupported obligations become more material

with more adverse effects.

2.16.1.6. Not all fall-out/fall-in is preventable, but any time a lesson learned from

expired year fall-out/fall-in to prevent its reoccurrence from occurring in current year will

benefit vital current year funding.

AFI65-601V2 29 JANUARY 2021 19

Chapter 3

ISSUING AND DISTRIBUTING OPERATING BUDGET AUTHORITY (OBA)

3.1. Overview. Apply this chapter in distributing military personnel and O&M Appropriation

fund authorities. Refer to Air Force Manual (AFMAN) 65-605, Volume 1, Budget Guidance

and Technical Procedures, for other appropriations. See DAFPD 65-6 for Air Force policy on

providing optimum funding flexibility at all levels and controlling OBA amounts so they don’t

exceed the authority received by the issuing activity. When issuing OBA, SAF/FMB and

subordinate levels will identify restrictions imposed by the legislative and executive branches of

the government and by the Office of the Secretary of Defense (OSD). (T-0). Subordinate

activities must ensure that the OBAs issued are consistent with the budget authority received

with regard to funding classifications and limitations. (T-0).

3.2. Controlling Year-end Spending. Do not spend financial resources at the end of a fiscal

year merely because they are available. Identify and report unused financial resources (e.g.,

from savings, program slippages, or other causes) to higher headquarters for possible

withdrawal. Notify headquarters in time to permit using the funds for higher priority mission

requirements.

3.3. Issuing OBA (Headquarters).

3.3.1. SAF/FMBO will issue O&M OBAs for the current fiscal year on OBADs at the

budget activity level for direct funding authority. (T-1). National Guard Bureau (NGB)

NGB/FMA will issue OBADs for ANG appropriations and HAF/RECB will issue OBADs

for AFR appropriations. (T-1). When Congress does not pass the new fiscal year’s

appropriation act by the start of the new fiscal year, SAF/FMB will provide interim guidance

based on congressional passage of Continuing Resolution Authority and Emergency

Authority which allows DoD activities to spend money pending passage of the DoD

Appropriations Act. (T-0). In the event of a Continuing Resolution, SAF/FMB will issue an

OBA for CR funds. (T-1). MAJCOMs/Operating Agency Codes (OAC) must promptly

reverse all CR OBAs received upon receipt of initial distribution OBA and must be ensure

their TOA balances prior to the last day of the same calendar month of the initial distribution

OBA. (T-1).

3.3.2. SAF/FMBOP will issue a centrally managed OBA to OAC 48 for military personnel

(3500) expenses. (T-1). For the ANG the resources are held in OAC 41.

3.3.2.1. DFAS-IN will automatically load authority into the Air Force accounting system

and report on military personnel expenses incurred at actual rates. (T-0).

3.3.2.2. Installations will not receive an OBAD for military personnel expenses but must

report expenses through the database transfer report. (T-3). (See Chapter 8 for

information on military personnel expenses.)

3.3.3. Continue to comply with prior fiscal year OBADs, including any limitations. Prior

year OBADs remain in effect as separate documents until the account cancels. Do not

obligate unused prior year obligation authority to fund current year obligations; prior year

obligation adjustments can be used, if approved. (See AFMAN 65-605, Volume 1)

20 AFI65-601V2 29 JANUARY 2021

3.4. Issuing OBAs (MAJCOMs/OACs). Upon receipt of an OBA from SAF/FMB,

MAJCOMs/OACs will subdivide the OBA to installations. (T-2). Include the same content as

the OBAD received. Comply with objectives in paragraph 2.2.2 and paragraph 3.1

3.5. Distributing OBAs at Installation Level. Upon receipt of an OBA at installation level

(the ultimate user), FMA distributes the OBA to maintain control on legal limitations, to ensure

use according to the approved OBA and to provide for local management requirements. FMA

loads the OBA distribution or subdivision into the general accounting and finance system-base

level (GAFS-BL) or DEAMS as identified on the funding document’s accounting and disbursing

station number. See OBA loading in Chapter 5.

3.6. Distributing Tenant OBAs. The installation distributes OBA received for tenant

organization support in the same manner it distributes its own OBA. Follow responsibilities

assigned in the host-tenant agreement.

3.6.1. When the tenant performs its own budget function, the tenant will distribute or load

the budgeted amounts. (T-3). If the tenant has no budget capability, the host FMA office will

load the tenant’s approved OBA. (T-3).

3.6.2. The organization issuing the tenant’s OBA will attach their requested distribution by

the appropriate accounting detailed level. (T-3).

AFI65-601V2 29 JANUARY 2021 21

Chapter 4

ADMINISTERING TARGETS, LIMITATIONS AND OBA CONTROLS

4.1. Complying With Targets and Limitations in OBAs.

4.1.1. Follow official policies on administrative control of OBAs in DoD FMR 7000.14-R,

Volume 14, Administrative Control Of Funds and Antideficiency Act Violations, Chapter 1

and included on the OBAD. (T-0). SAF/FMB will issue the total OBA consistent with

classifications, authorities and constraints with the total OBA received from the Office of the

Under Secretary of Defense Comptroller. (T-0). Operating agencies below SAF/FMB level

must ensure that their OBAs are consistent with SAF/FMB-issued OBAs. (T-0).

4.1.1.1. All organizations must follow the rigid restrictions subject to DoD FMR

7000.14-R, Volume 14. (T-0).

4.1.1.2. All organizations must not exceed targets or advisory guides. (T-0).

4.1.1.3. All activities must comply with two basic types of restrictions:

4.1.1.3.1. Limitations. These are subject to the fund control requirements of Title 31

United States Code Subchapter III, Sections 1341-1355 Limitations, Exceptions and

Penalties, and DoD FMR 7000.14-R and include limitations imposed by statute and

any absolute restriction imposed administratively that modifies or restricts the terms

of fund authorizations. (T-0). Report any violation of these limitations. (T-0).

4.1.1.3.2. Targets. Do not exceed a target without the issuing agency’s prior

approval. If a target variance is discovered, notify the issuing authority in writing

immediately. (Reference AFMAN 65-605, Volume 1) (T-0).

4.1.2. Recipients who reissue OBAs to a lower level may not remove or add to restrictions in

the documents they receive. (T-0). Refer to the OBAD for specific information on legal

limitations and targets.

4.1.2.1. Annual direct O&M authority by BA for a particular fiscal year is a legal

limitation under Title 31 U.S.C.

4.1.2.1.1. Reprogram quarterly authority between BAs during the first three quarters

of the Fiscal Year (FY) as long as authority do not exceed the annual authority by

BA.

4.1.2.1.2. During the 4th quarter, do not exceed the total funding in each BA (it must

equal the amount shown on the funding document received from higher

headquarters). (Reference AFMAN 65-605, Volume 1)

4.1.2.2. The O&M reimbursable program is an annual program for the appropriation.

Controls must be carefully followed to avoid obligating or expending in excess of

accepted customer orders. (T-0).

4.1.2.3. Activities may not exceed the total O&M authority for a particular fiscal year (it

is a legal limitation under 31 USC § 1341-1355 on a cumulative quarterly basis).

(Reference AFMAN 65-605, Volume 1).

22 AFI65-601V2 29 JANUARY 2021

4.1.2.4. Within the O&M total direct obligation authority, comply with the following

legal limitations as applicable:

4.1.2.4.1. “A” Legal limitations. (T-0).

4.1.2.4.2. “B” Air Force limitations. (T-0).

4.1.2.4.3. “E” Earmarks (Congressional). (T-0).

4.1.2.4.4. “OF” SAF/FM Flying Hour limitations. (T-0).

4.1.2.4.5. “R” SAF/FM Readiness limitations. (T-0).

4.1.2.4.6. Line item limitations. (T-0).

4.1.2.4.7. Exceeding any other limitation without prior approval from the issuing

authority. (T-0). Note: The issuer will identify these legal limitations on the OBAD.

(T-0).

4.2. Administering Controls.

4.2.1. SAF/FMB and MAJCOMs, as applicable, will issue each field activity an OBAD that

identifies the O&M direct obligation authority. (T-1).

4.2.2. The total O&M obligation authority is subject to precertification procedures. Comply

with modified commitment accounting procedures for O&M appropriations in AF

Accounting & Finance Office (AFAFO) Commitment Guidance (formerly DFAS-DE 7000.5-

R) to preclude violating cumulative quarterly obligation authority shown on the OBAD. (T-

0).

4.2.3. Fund certifying officers in the installation financial management analysis offices must

not certify availability of funds for more than cumulative quarterly obligation authority. (T-

2).

4.2.3.1. For certifying funds beyond the cumulative quarterly obligation authority, see

AFAFO Commitment Guidance.

4.2.3.2. All personnel authorized to certify the availability of funds, to commit funds, to

authorize or incur obligations, or to spend Air Force funds, must be familiar with and

comply with, DoD FMR 7000.14-R, Volume 14. (T-0).

4.2.3.3. All personnel authorized to certify the availability of funds, to commit funds, to

authorize or incur obligations, must have a delegation of authority letter. (T-0).

4.3. Administering Targets and Limitations in Other Appropriations. Air Force activities

manage and control other appropriations by issuing funding authorizations, budget

authorizations, allocations, suballocations, allotments and suballotments.

4.3.1. The issuer will clearly identify each specific limitation (imposed by the legislative and

executive branches of the Federal Government, the Department of Defense and the

Department of the Air Force) on the "Limitation" portion of the allocation document. (T-0).

4.3.2. Recipients issuing funding authorizations, budget authorizations, suballocations,

allotments or suballotments may not remove nor add to restrictions in the documents.

AFI65-601V2 29 JANUARY 2021 23

Chapter 5

LOADING THE OPERATING BUDGET AUTHORITY INTO THE ACCOUNTING

SYSTEMS FOR OPERATIONS

5.1. Using the OBAD/FAD. Funds issuers use OBAD/FAD to transfer authority to incur

obligations and expenses to subordinate units and provide the basis for fiscal control required by

law. SAF/FMB:

5.1.1. Issues the budget authority from SAF/FMB-held appropriations to each

MAJCOM/Center/Field Operating Agencies on an OBAD/FAD. The OBAD/FAD provides

the annual operating budget authority and the phased quarterly obligation authority in three

distinct categories: direct authority by BA, total direct program and total operating budget:

5.1.1.1. Direct authority by BA provides authority to incur expenses and obligations,

subject to the restrictions and qualifications written on the document and in Interim

Guidance on Procedures for Administrative Control of Appropriations and Funds Made

Available to the Department of the Air Force. Each BA identifies financial resources as

follows: O&M expense, other obligation and expense authority.

5.1.1.2. Total direct program provides the sum of all BAs identified by the same

subdivisions as in direct authority by BA.

5.1.1.3. Total operating budget provides the sum of accepted reimbursable orders and

direct authority.

5.1.2. Loads direct and reimbursement authority.

5.2. Relating OBAD/FAD Amounts and Computer Records. The current fiscal year OBAD

shows current year expense and obligation authority for O&M. FMA offices load detail fund

targets into the general accounting system data base program for the current year and five prior

years. Note: The procedures that follow support legacy system operations. Please use

appropriate job aid located on the DEAMS outreach portal for related DEAMS procedures.

5.2.1. Fund Type Codes. DFAS-DE 7077.2-M lists all applicable fund type codes for the

general accounting system.

5.2.2. Handling Current Year Authorities and Records. FMA offices load authority

pertaining to current operating budget year and current fiscal year in OBAD/FADs to current

operating budget year and current fiscal year records. (T-2). Examples for FY17 are current

operating budget year=7 and current fiscal year=7.

5.2.2.1. For direct authority (Direct BAs only), load by Responsibility Center Cost

Center (RC/CC) and EEIC to fund type L records without sales code (SC). (T-2).

5.2.2.2. For reimbursable authority load funding targets with a SC to equal the total

accepted customer orders year to date less any amounts returned to the customer. (T-2).

5.2.3. Handling Prior Year Authorities and Records. On the first day of the fiscal year, the

general accounting system computer year-end conversion procedures programmatically

removes (from prior operating budget year and prior fiscal year accounts) the PFY obligation

authority obligated as undelivered orders outstanding on record as of the last day of the PFY.

24 AFI65-601V2 29 JANUARY 2021

5.2.3.1. Record this amount in the current operating budget year and prior fiscal year

accounts. (T-2). Also establish and adjust all other prior operating budget year and prior

fiscal year authorities by the year-end conversion program. (T-2).

5.2.3.2. Combine recorded amounts manually to determine correctness of load for PFY

authorities because of the split of PFY obligation authority, current operating budget year

and prior fiscal year and prior operating budget year and prior fiscal year. (T-2). Make

adjustments to the PFY as needed. (T-2).

5.3. Distributing OBAD/FAD Authority. Upon receiving the OBAD/FAD, the FWG and the

financial management analysis office recommend distributions of quarterly and annual authority

for FMB approval. (T-2). Objectives are to:

5.3.1. Establish OBA targets at the RCM level.

5.3.2. Target certain special activities (tenants and common expense accounts) at the six-

digit RC/CC.

5.3.3. Establish targets at organization points where management makes decisions.

5.3.4. Align amounts with the squadron or comparable-level RC.

5.3.5. Load targets at the RC/CC level required to maintain program element identification

and to support other command directed action.

5.4. Loading Targets in the Accounting Systems. Use an AF Form 1269, Request for Load or

Change in Fund Targets, or a mechanized equivalent (e.g., Automated AF Form 1269 or Budget

Tools used with Windows – General Accounting Microcomputer Processing System

(WinGAMPs)) to load Annual/Subsequently Available and Quarterly/Available OBA targets

into GAFS-BL/DEAMS for all appropriations.

5.4.1. FMA offices will load Continuing Resolution Authority or initial distribution using

the AF Form 1269 or a mechanized equivalent. (T-1). If changes need to be made after

initial distribution has been loaded, then RAs will prepare and forward an AF Form 1269 (or

a mechanized equivalent) to the installation financial management analysis office for review.

(T-3).

5.4.1.1. The person who prepares the form will add the date and his/her name,

organization and contact information in the "Remarks" section of the form. (T-3).

Instruct the budget analyst who checks the form include the date and his/her name,

organization and contact information in the "FMA Approved By" block to show FMA

review and approval. (T-3). Once the FMA technician verifies the AF Form 1269 (or

mechanized equivalent) is valid and correct, the FMA technician will transmit quarterly

and annual obligation authority fund targets into GAFS-BL/DEAMS. (T-3).

5.4.1.2. FMA technicians will cross-check their target load submissions with the Daily

Audit Listing for accuracy. (T-3). Local funds control analysts and budget technicians

will ensure GAFS-BL/DEAMS is balanced with the final funding document of the month

prior to the end of month database transfer. (T-3). FMA offices must maintain OBADs,

FADs, original AF Forms 1269 (or substitute method) and Daily Audit Listings on file

for 10 years, as stated in SAF/FMFC’s Financial Records Retention Memo. (T-3). For

all other prior fiscal years, the OBAD/FAD will be the source of record for what has been

loaded in GAFS-BL/DEAMS and must balance. (T-3). In conjunction with the

AFI65-601V2 29 JANUARY 2021 25

OBAD/FAD and FAD, analysts may use selective Transaction history in commander’s

resource integration system or the DEAMS equivalent report. (T-3).

5.4.2. A mandatory 12-digit Funding Document Number (FDN) will also be used when

loading targets into GAFS-BL/DEAMS. (T-3). The ultimate objective is establishing a

process to trace funds loaded into GAFS-BL/DEAMS back to the OBAD generated from the

automated funds management system and the FAD from electronic funds distribution. This

FDN construct applies to all funding documents regardless of appropriation. The use of

FDNs and transaction identifiers provides audit capability for allotment transactions

supporting Budget Authorizations and Allocations or OBADs and FADs issued by the

MAJCOMs. It will also ensure effective audit trails exist between the funding authority

systems, GAFS-BL, GAFS-R and DEAMS.

5.4.2.1. Mandatory 12-digit funding document number construct:

5.4.2.1.1. For funding authorizations utilizing the automated funds management

system, the document sequence will be a combination of the register and document

numbers and will also identify direct or reimbursable authority. The FMSuite advance

call out notification will no longer be used as authority to load funds. The example

below details how to create the FDN sequence: Register number 645318 and

document number 91, on the Automated funds management OBAD becomes:

00645318091D for direct authority and will load into GAFS-BL/DEAMS with the

target. For reimbursements, replace the “D” with an “R” (the preceding characters

will not change). (T-3). The two zeros at the beginning of the register number and the

single leading zero on the document number are place holders to accommodate the

increasing volume of register and document numbers over time.

5.4.2.1.2. For funding authorizations utilizing Electronic funds distribution, start with

the fiscal year (beginning of fiscal year for multi-year), then the fund code and finally

the last 5 digits of the Authority Change Number (document number) from the FAD.

(T-3). AFMAN 65-604, Appropriation Symbols and Budget Codes, provides a list of

all AF fund codes. The examples below detail how to create the document sequence

for other appropriations:

5.4.2.1.2.1. Single Year Funds: Authority Change Number 0100-11-000A-00001

and Appropriation Number 97 2011/2011 0100.6092 2011 becomes FDN

20112T00001D. For reimbursements, replace the “D” with an “R.”

5.4.2.1.2.2. No year funds: Authority Change Number 0833-X-000A-00009 and

Appropriation Number 97 X/2001 0833.0200 2001 becomes FDN

XXXX5N00009D (use 4 X’s versus a number to denote no year). For

reimbursements, replace the “D” with an “R.”

5.4.2.1.2.3. Multi-year funds: Authority Change Number 0500-09-000A-00001

and Appropriation Number 97 2009/2013 0500.0200 2011 becomes FDN

20098400001D (use first year of appropriation for the first 4 digits of the FDN).

For reimbursements, replace the “D” with an “R.”

5.4.2.1.3. Exceptions: There are two exceptions to the application of the new FDN

construct: when there is a bona-fide emergency and funding documentation cannot be

accomplished immediately and when funds are realigned for mission requirements.

26 AFI65-601V2 29 JANUARY 2021

5.4.2.1.3.1. In accordance with AFMAN 65-605, Volume 1, Chapter 3, when

urgent funding adjustments are required, interim methods (email, phone, etc.) will

be required to initiate the process. (T-1). Continue to maintain funds control

discipline in these situations, ensure activities do not inadvertently violate DoD

FMR 7000.14-R, Volume 14. In these rare cases, use EMERGENCY as the FDN.

(T-0). The issuing activity will issue a formal funding document, reflecting the

adjustments within 5 workdays or at the next document issue cycle, whichever

occurs first. (T-3). Once a document is received, the FDN should be entered right

away and reverse the emergency FDN transactions.

5.4.2.1.3.2. After the automated funds management or electronic funds

distribution target has been posted and when or if movement of funds is required

for mission accomplishment, a transaction construct must be used to identify the

movement of funds (this provides an audit trail between target loads from funding

documents and target moves per mission requirements). (T-3). When funds are

moved, the first seven characters of the transaction identification will be

REALIGN and will be entered into the same field (replacing the document

number). (T-3). Any characters can be used after the mandatory seven for local

tracking purposes. Do not use “reprogram.” Before realigning funding, consider

limitations and budget activity integrity.

5.4.2.1.4. Other Procedures. O&M is no longer auto-apportioned and will use the

same naming process as Procurement and Investment Reimbursements: The

reimbursement document number is already constructed in the upper right hand

corner of the funding document. (T-3). Use this number as the FDN when loading

targets in BQ. The 12th digit of the document number must show an “R” denoting a

reimbursable document. (T-3).

5.4.2.2. Optional procedures. Use local or command forms instead of the AF Form 1269

to satisfy unique requirements. (T-3). (See DFAS-DE 7077.10-M, SBSS (GV) Standard

Base Supply System User’s Manual and DFAS-DE 7077.2-M for AF Form 1269

instructions.)

5.5. Loading Targets in the Base Supply System. Load detailed fund targets into the Standard

Base Supply System and Standard Materiel Accounting System by organization cost center

records (OCCRs) and project fund management records (PFMRs). (T-2). Do this for purchases

of supplies and equipment from Defense Working Capital Fund for the current operating year.

(T-2).

5.5.1. Use AF Form 1269 (or mechanized equivalent) to properly monitor and control

requests establishing or changing supply and equipment fund targets loaded in OCCRs and

PFMRs. (T-1). This is the source document to establish, increase or decrease PFMR and

OCCR fund targets that authorize purchases from the Defense Working Capital Fund. Use

local or command forms instead of AF Form 1269 when needed to satisfy unique

requirements. (T-2).

5.5.2. The person who prepares the form will add their name, organization and contact

information in the "Remarks" section of the form. (T-1).

AFI65-601V2 29 JANUARY 2021 27

5.5.3. Use the automated Standard Base Supply System and Standard Materiel Accounting

System to control and monitor supply and equipment fund targets. (T-2).

5.5.3.1. Standard Materiel Accounting System accumulates and provides financial data

for all medical and dental supply and equipment accounts.

5.5.3.2. Standard Materiel Accounting System establishes and maintains PFMR and

OCCR fund targets for purchases of all medical/dental supplies and equipment.

28 AFI65-601V2 29 JANUARY 2021

Chapter 6

DATA ELEMENTS AND CODES

6.1. Overview. This chapter provides source references for data elements and account codes

used in budget and financial management.

6.2. Using Data Elements. See Figure 6.1 for data elements commonly used in budget and

financial management.

6.2.1. Use these codes, as appropriate, to program, budget and account for appropriations

used by Air Force activities. (T-1).

6.2.2. Each command or operating agency provides subordinate units with the data elements

authorized for use in budgeting and accounting for funds they administer. (T-1).

6.2.3. At base level, the financial management analysis office ensures proper use of those

data elements authorized by the funding command or operating agency. (T-1).

6.2.4. Only valid RC/CCs found in the Financial Management Data Dictionary (FMDD) at

the Data Quality (DQS) website (https://fmdqs.cce.af.mil/saml/home.htm) may be used.

(T-1). If current RC/CCs do not meet mission needs, re-route all requests for additions or

modifications through the MAJCOM Data Panel representative for consideration of inclusion

in the FMDD. (T-2).

6.2.5. See AFMAN 65-604 for annual appropriation symbols, budget codes and descriptions.

6.2.6. EEICs and object classes have been established to account for the O&M travel

associated with Air Reserve Component in support of Regular Air Force Military Personnel

Account Mandays. These codes are to be used for planning and execution of Military

Personnel Account Manday travel. (T-2).

6.3. Using the Account Structure. See Attachment 5 for examples of typical accounting

classification account structures. These examples will determine the accounting classification

(sometimes called a fund cite) required on commitment and obligating documents. Air Force

tenant organizations should follow the same instructions as found in 6.2.4 for the use of RC/CCs.

AFI65-601V2 29 JANUARY 2021 29

Figure 6.1. Data Elements Found In Financial Management Data Dictionary at Data

Quality Service.

https://fmdd.affsc.af.mil/data-elements/home.htm

Account Balance Indicator

Emergency and Special Program Code

Accounting Action Code

Fund Code

Accounting and Disbursing Station Number

Fund Type Code

Accounting Post Code

Major Force Program

Air Force Panel Codes

Operating Agency Code

Appropriation Symbol Year Designator

Operating Budget Account Number

Basic Symbol

Program Element Code

Budget Activity

Responsibility Center/Cost Center

Budget Program Activity Code

Sales Code

Buyer Side Code (see Attachment 5, Figure A5.1.)

Subactivity Group

Departmental

Type Vendor Code

Department of Defense Expense Element

Vendor Type Code

Element of Expense Investment Code

30 AFI65-601V2 29 JANUARY 2021

Chapter 7

USING THE OPERATING BUDGET AND ALLOTMENT LEDGERS

7.1. Using Ledgers. Use operating budget and allotment ledgers to summarize accounting

records to provide the fund’s status as of the current date or as of the previous end of month. (T-

1). There are two separate products: (1) operating budget ledger for operating budget accounts

(fund types L and M for GAFS-BL and D Fund and R Fund for DEAMS) (2) allotment ledger

for other appropriations and other reimbursement accounts (all fund types except L and M). The

operating budget ledger/allotment ledger may be obtained from the following sources: 1, GAFS-

BL (BQ) (reference DFAS-DE 7077.2-M) 2, commander’s resource integration system 3,

DEAMS Reports Status of Funds, or 4, DFAS Online Report Viewing.

7.1.1. These ledgers provide detailed, special and summary data on various accounts or types

of funds at a specific point in time. FMA will determine the detail volume, the summation

amount and the number of accounts from all squadrons and agencies they support. (T-1).

Use amounts shown on the ledger to analyze obligation and expense accounts and to verify

fund availability when online inquiries are not available.

7.1.2. The ledgers provide accounting indicative data, including Funding Summary Record

and Program Summary Record addresses. Use this information when preparing budget target

loads and when analyzing expense and obligation rates.

7.2. Frequency. RAs or FMA will obtain a report when required or requested. (T-1).

7.3. Loading Annual and Quarterly Authorities. Load targets correctly into the accounting

system. (T-1). No target may be loaded or adjusted without first receiving an OBAD.

7.3.1. Load annual and quarterly obligation authority targets to current fiscal year or current

operating budget year as indicated on the OBAD/FAD. (T-1).

7.3.2. FMA Offices establish certification and reprogramming levels. (T-1). These levels are

BA, PE, EEIC, or imposed limitation (floors, ceilings and fences).

7.3.3. The ledgers show budget authorities on a cumulative basis and compare them with

actual obligations to determine the amount available for obligation by fiscal year.

AFI65-601V2 29 JANUARY 2021 31

Chapter 8

ADMINISTERING, EXPENSING AND REPORTING MILITARY PERSONNEL COSTS

8.1. Managing Military Personnel Expense Authority. The Regular AF uses centrally

managed allotment procedures to manage the military personnel appropriation. ANG uses a

combination of centrally managed allotment and decentralized execution procedures to manage

its military personnel appropriation. AF responsibilities:

8.1.1. SAF/FMBOP. Authorizes funding for military personnel to support Air Force

missions. SAF/FMBOP doesn’t distribute funding to any lower level of command, but

permits disbursing officers throughout the Air Force to make authorized payments against the

centrally managed allotment. Use this authority to incur authorized expenses for assigned

military personnel.

8.1.1.1. Serves as focal point for administration of financial expense authority associated

with military personnel programs.

8.1.1.2. Manages the centrally managed allotment.

8.1.1.3. Coordinates military personnel information with personnel and financial

management activities at Headquarters USAF and with other DoD components.

8.1.1.4. Ensures consistency of funding allocations with planned military personnel

programs.

8.1.1.5. Verifies the reliability of reported expense for military personnel by analyzing

rate variance between expenses at standard rates and actual entitlements.

8.1.1.6. Monitors differences between budgeted and actual expense authority for military

personnel and recommends corrective actions to the Personnel Budget Review

Committee if required.

8.1.2. Base-Level Comptroller and Force Support Squadrons. Initiate authorizations to pay

entitlements based on the military member’s validated status. (T-3).

8.1.3. DFAS-IN and Air Force Financial Services Center. Pay the member’s entitlements

based on their validated status and statutory entitlements. Note: Pay and allowances are

statutory entitlements automatically incurred until the member separates.

8.2. Using Standard Rates for Military Personnel. Use standard rates to compute and record

military personnel costs.

8.3. Controlling Other Military Personnel Expenses. SAF/FMBOP centrally controls

expense authority for Permanent Change of Station (PCS) movements, subsistence and other

miscellaneous personnel costs and the reimbursement program of Regular AF personnel.

8.3.1. Regular AF PCS Expenses. Base the PCS travel and transportation program on Air

Staff-approved programs, policies and actions that result in military PCSs. Duties:

8.3.1.1. SAF/FMBOP maintains fund control by establishing administrative limitations

with AF/A1PP and Air Force Personnel Center on the number of PCS moves by type of

move—accession, training, separation, operational, rotational and unit moves.

32 AFI65-601V2 29 JANUARY 2021

8.3.1.2. Air Force Personnel Center directs most PCS travel assignment actions.

8.3.1.3. Air Force Personnel Center controls the number of MAJCOM-directed intra-

command PCSs by establishing move quotas allocated by specific numbers and types.

8.3.1.4. When PCS orders are authenticated, all authorized expenses shall be recorded to

the current year in which the orders are issued. (Refer to AFMAN 65-605, Volume 1)

(T-1).

8.3.2. ANG PCS Expenses. NGB/FMA manages these costs at the appropriation level using

project code 543. PCS orders/vouchers are approved and initiated at the unit level.

8.3.3. Subsistence and Basic Allowance for Housing. As authorized by base-level, DFAS-

IN pays basic allowance for subsistence and basic allowance for housing centrally through

the Air Force’s military pay system. Headquarters AF Services Agency provides monthly

subsistence-in-kind contractual costs to SAF/FMBOP for obligation purposes for Regular AF

appropriated dollars. ANG will use O&M (3840) for services portion of UTA subsistence

contracts services and 3850 (Fund Code 56) for the purchase of the food. (T-2).

8.3.4. Reimbursement Authority.

8.3.4.1. For Regular AF personnel, SAF/FMBOP obtains reimbursement program

authority to cover anticipated earnings; NGB/FMA obtains reimbursement authority for

ANG appropriations, and HAF/REC obtains reimbursement authority for AFR

appropriations from:

8.3.4.1.1. Other government agencies (for military personnel assigned on a full-time

basis for the benefit of those agencies).

8.3.4.1.2. The foreign military sales program.

8.3.4.1.3. Non-DoD federal agencies and nonfederal organizations to whom the Air

Force provides military personnel services.

8.3.4.1.4. Defense Working Capital Fund activities (Office of the Under Secretary of

Defense Comptroller provides rates).

8.3.4.2. DFAS-IN develops, consolidates and reports reimbursable expenses (earnings),

based on field site reported data and the RCS: HAF-ACF (M) 7184 (DT) report.

8.4. Administering and Reporting Military Personnel Expense Authority. SAF/FMBOP,

DFAS-IN are mainly responsible for administering and monitoring military personnel

appropriation expenses for Regular AF appropriations. NGB/FMA is responsible for the ANG

appropriation ,and HAF/RECB is responsible for the AFR appropriation.

AFI65-601V2 29 JANUARY 2021 33

8.5. Description of Costs Covered by the Regular Air Force Military Personnel

Appropriation.

8.5.1. Use the military personnel appropriation (3500) for pay, allowances and other costs

for Regular Air Force officers, enlisted and cadets. This appropriation consists of six

primary financial programs, each with several projects. It does not include personnel costs of

the Air Force Reserve and Air National Guard unless they are mobilized to regular duty

under Title 10 United States Code 12301. Record costs in accordance with AFMAN 65-604.

8.5.2. Budget Activity 01. Officer pay and allowances are recorded under P51* and P52*

shreds. Pay and allowances include base pay, retired pay accrual, basic allowance for

housing, social security tax, specials pays, basic allowance for subsistence and other pays as

authorized by law.

8.5.3. Budget Activity 02. Enlisted pay and allowances (except those costs accounted for in

Budget Activity 04) are recorded under P53* and P54*shreds. Pay and allowances include

base pay, retired pay accrual, basic allowance for housing, social security tax, special pays

and other pays as authorized by law.

8.5.4. Budget Activity 03. US Air Force Academy cadets pay and allowances are recorded

under P55*. Pay and allowances include base pay, subsistence and social security taxes.

8.5.5. Budget Activity 04. Subsistence of enlisted personnel is recorded under P56*.

Subsistence includes BAS, family subsistence supplemental allowance and subsistence- in-

kind.

8.5.6. Budget Activity 05. PCS travel, per diem and other moving expenses are recorded

under P57**** and P58****. PCS travel includes accession, training, operational, rotational,

separation, organized unit, emergency evacuation, special and other moves as detailed in

AFMAN 65-604.

8.5.7. Budget Activity 06. Other Military Personnel Costs are recorded under P59*. These

costs include apprehension of Air Force deserters, absentees and military prisoners; interest

on uniformed services savings deposit program; death gratuities; unemployment

compensation; survivor benefits; extra hazard reimbursement for service members’ group life

insurance; education benefits (Montgomery GI Bill); adoption expenses; senior reserve

officers training corps and junior reserve officers training corps.

8.5.8. Air Reserve Component personnel brought on regular duty to fulfill active duty Air

Force requirements will receive normal pay, allowances, special pays and entitlements paid

by the 57*3500 appropriation. Charge travel and per diem costs to the O&M-type funds of

the Air Force organization being supported. See AFMAN 65-605, Volume 1, for details.

34 AFI65-601V2 29 JANUARY 2021

8.6. Cost of Contingency Operations. The Air Force pay and accounting system does not have

the capability to capture and report military personnel costs associated with specific

contingencies (i.e., Emergency and Special Program (ESP) code). In instances where

contingency cost reporting is required, AF/A1MT will provide man-day data from the Manpower

Military Personnel Appropriation Man-day Management System (M4S) to SAF/FMBOP. (T-1).

SAF/FMBOP will apply current standard rates to compute Air Reserve Component 57*3500

contingency costs. (T-1). When available, SAF/FMBOP will use actual expense data for

incremental regular duty costs associated with contingency operations. (T-1). In lieu of this data,

SAF/FMBOP will use standard rates to project and expense incremental regular duty personnel

costs. (T-1). NGB/FMA will use their established Workday Utilization Codes in the orders

writing process to track these manpower costs in the ANG pay system. (T-1).

8.7. Military Personnel Related Guidance.

8.7.1. See AFI 36-2110, Total Force Assignments, for PCS procedures.

8.7.2. See AFI 65-503, US Air Force Cost and Planning Factors, for personnel standard

rates.

8.7.3. See AFMAN 65-605, Volume 1, for more information on specific costs covered by

the military personnel appropriation.

8.7.4. See AFMAN 65-605, Volume 1, for review and approval procedures.

8.7.5. See AFMAN 65-604 for accounting codes.

8.7.6. See AFMAN 65-116, Defense Joint Military Pay System Active Component (DJMS-

AC) Financial Management Flight (FMF) Procedures, for application of entitlements.

8.7.7. See DFAS-DE 7010.1-R for centrally managed allotment accounting procedures.

8.7.8. See DoD FMR 7000.14-R, Volume 7A, Military Pay Policy – Active Duty and

Reserve Pay, for entitlement procedures.

AFI65-601V2 29 JANUARY 2021 35

Chapter 9

RESOURCE MANAGEMENT SYSTEM (RMS)

9.1. Overview. This chapter shows how to start and maintain a RMS for the O&M

Appropriation. The procedures apply mainly to base-level operations but may also apply to

other operating locations.

9.1.1. The term "resource management system" does not refer to a single separate program.

The Air Force’s RMS:

9.1.1.1. The program is based on the DoD planning, programming and budgeting and

execution.

9.1.1.2. The RMS provides a way to establish priorities, choose policies and act to get

the desired results and required resources at an acceptable cost, in accordance with

applicable regulations.

9.1.1.3. Involves effective resource management, system outputs to identify resources

used and on measuring actual performance compared to planned performance by using

execution plans and accounting to enhance management control at each organizational

level.

9.1.2. RMS elements include the execution plan, management and accounting systems,

participatory and committee management, resource management teams and resource

management training.

9.2. RMS Duties. Air Force managers oversee activities that cost money. Oversight involves

more than legal accountability. Headquarters USAF and MAJCOMs make many decisions about

using resources (e.g., flying hour allocations and manpower authorizations). Although base-

level resource managers do not control initial allocation of all their resources, they must

effectively manage these resources. (T-3).

9.2.1. Commanders. Financial management is inherent to command. Commanders:

9.2.1.1. Review, validate and balance the execution plan to ensure successful financial

management.

9.2.1.2. Actively review financial programs for each of the responsibility centers

reporting directly to them.

9.2.1.3. Improve resource management by inquiring about program conditions,

reviewing causes, weighing alternatives and directing action.

9.2.1.4. Ensure RMS success by allocating sufficient resources to RMS training and

resource management team efforts.

9.2.2. Comptrollers. The comptroller supports the organization’s mission and the Air Force

by providing sound financial management and unbiased decision support to the commander

and staff. The comptroller:

9.2.2.1. Promotes responsible and proper financial management throughout the

organization to ensure the economical and efficient use of resources consistent with

statutory and regulatory requirements.

36 AFI65-601V2 29 JANUARY 2021

9.2.2.2. Applies policies and procedures enabling the organization to carry out

accounting, budget and cost functions.

9.2.2.3. Is the chief personnel manager of the comptroller organization and at base- level,

is usually the commander of a comptroller squadron and wing staff agencies.

9.2.2.4. Ensures organization accountable officials are trained in accordance with DoD

FMR 7000.14-R Volume 14, paragraph 020401. (T-0). Accountable officials require an

understanding of appropriation law so they can detect, prevent, report and control Anti-

Deficiency Act violations. Supervisors will help determine the best medium for

obtaining fiscal or appropriations law training. (T-0).

9.2.3. Responsibility Center Managers (RCM). The RCM plans, directs and coordinates

subordinate organizations’ activities (e.g., group or squadron commander). The RCM:

9.2.3.1. Reviews resource requirements of subordinate units.

9.2.3.2. Integrates requirements into an RC operating budget.

9.2.3.3. Justifies requirements before the commander’s review authorities.

9.2.3.4. Determines the proper distribution of the approved RC execution plan.

9.2.3.5. Analyzes subordinate organizations’ plans and performance at least monthly.

Identifies imbalances in resource distribution and their causes and makes sure that

resource consumption contributes effectively to mission accomplishment. Analyzes

alternative actions and balances programs.

9.2.3.6. Understands and complies with Interim Guidance on Procedures for

Administrative Control of Appropriations and Funds Made Available to the Department

of the Air Force.

9.2.3.7. Appoints RAs and provides FMA with the most current appointment letter.

9.2.3.7.1. RA selection is important. Consider these qualities in selecting an RA.

The RA should have:

9.2.3.7.2. A working knowledge of the organization’s mission, the mix of resources

required to do the mission and the historical cost record.

9.2.3.7.3. A knowledge of the accounting system for operations, the procurement

system and the supply system, with particular concentration on data entry, flows and

reports produced.

9.2.3.7.4. An ability to distinguish between apparent and real causes.

9.2.3.7.5. An ability to deal successfully with personnel in subordinate, lateral and

higher level organizations.

9.2.3.7.6. A questioning nature with mature judgment, usually resulting from

experience.

9.2.3.7.7. Sufficient time to do all necessary resource management requirements for

their unit. Preferably, RAs should be able to fulfill their resource management duties

for at least one year.

AFI65-601V2 29 JANUARY 2021 37

9.2.4. Cost Center Managers (CCM). The cost center is the basic production organization

(e.g., flights). The CCM regulates the consumption of workhours, supplies, equipment and

services in producing things and doing tasks. CCMs shift resources to or from the various

production tasks within the CC to ensure the proper mix or to provide the emphasis required.

The CCM:

9.2.4.1. Starts building the execution plan.

9.2.4.2. Determines the validity of the execution plan as a whole and develops resource

requirements and narrative justifications.

9.2.4.3. Fosters daily awareness of the relationship between resources used and products

produced and realigns resources as approved by superiors.

9.2.5. Resource advisors. RCMs appoint RAs. A CC manager may also appoint an RA if

the size of the CC warrants (e.g., staff agencies). RAs:

9.2.5.1. Monitor and help prepare estimates for resources.

9.2.5.2. Help develop obligation and expense targets.

9.2.5.3. Monitor the use of resources in daily operations.

9.2.5.4. Provide RMS training to CCMs.

9.2.5.5. Represent the RCM in the Financial Working Group.

9.2.5.6. Assist the comptroller during fiscal year-end closeout.

9.2.5.7. Serve as the primary point of contact with comptroller personnel and other RAs

on resource management matters pertaining to their responsibility center.

9.2.5.8. Know the details of the organization’s cost, program and fiscal requirements;

understand the relationship between output and cost.

9.2.5.9. Understand the use of management reports produced by the accounting system

for operations and the materiel management system. Manage reports produced by the

materiel management system in accordance with AFI 23-101, Materiel Management

Policy and AFMAN 23-122, Materiel Management Procedures.

9.2.5.10. Interpret these management reports and recommend necessary management

actions to the RC or CC manager.

9.3. Participatory Financial Management. A corporate organizational approach which

combines efforts of the commander and supporting staff is the most effective, efficient way to set

priorities or to reduce, defer or eliminate programs. To provide collective resource management

action, each base-level organization must establish and maintain a financial management

structure, consisting of an FMB and FWG. (T-3). Small organizations, where the FMB and FWG

composition would essentially be the same, may form a single committee. (T-3). Note:

MAJCOMs may require approval before combining the FWG and FMB; see paragraph 2.12

9.3.1. The Financial Management Board. The senior or host commander at each base, field

operating agency or direct reporting unit establishes the FMB. (T-2). The FMB determines

program priorities and ensures effective allocation of resources.

38 AFI65-601V2 29 JANUARY 2021

9.3.1.1. Top level managers, with membership tailored to the type of organization

structure involved, comprise the FMB. Table 9.1 below shows the composition of a

typical wing or base FMB. The FMB chairperson may choose additional or reduced

voting as well as an advisory non-voting membership.

Table 9.1. Sample FMB Membership List.

Staff

Position

Commander

Chairperson

Operations Group Commander

Member

Maintenance Group Commander

Member

Mission Support Group Commander

Member

Medical Group Commander

Member

Comptroller

Advisor

FMA Officer

Recorder

9.3.1.2. The chairperson convenes the FMB at least quarterly. (T-2). The recorder

prepares minutes of meetings, files the original in the FMA office and provides copies to

FMB and FWG members. (T-2). Note: Minutes only need to be available for review for

one prior year and the current fiscal year.

9.3.1.3. RCMs, directly subordinate to FMB members, attend meetings as technical

advisers when appropriate. (T-2). They provide impact data during deliberation on FMBs

recommendations.

9.3.1.4. The FMB reviews, approves or disapproves recommendations made by the FWG

to ensure balanced valid financial programs and to consider all known or anticipated

program requirements. (T-2). The FMB must review, revise and approve all appropriated

fund execution plans. (T-2).

9.3.1.4.1. The FMB’s composition places the base-level financial management

emphasis on line managers who head major RCs directly related to the

accomplishment of the base mission. FMB decisions cover the base’s overall

programs.

9.3.1.4.2. These decisions evolve from reviewing, evaluating and approving the

execution plans or revisions. FMB recommends distribution of execution plan targets

to base organizations and identifies unfunded requirements and other actions affecting

the financial operations of the base. (T-3).

9.3.1.5. The FMB members:

9.3.1.5.1. Review requirements for approved programs and activities to ensure

balanced financial support throughout. (T-2).

9.3.1.5.2. Review and approve the distribution of annual obligation targets. (T-2).

The FWG reviews and approves programs for deferring, reducing, eliminating or

moving to the execution plans unfunded portion to the FMB for approval.

9.3.1.5.3. Evaluate and list in priority sequence all unfunded requirements. (T-2).

AFI65-601V2 29 JANUARY 2021 39

9.3.1.5.4. Review and approve investment equipment (57*3080 Appropriation) items

for purchase (unless they delegated this authority to a separate committee). (T-2).

9.3.2. The Financial Working Group. Both line and staff RA and RCMs serve as FWG

members. The FWG manages commodities and resources integral to the operating activities

of the base or unit. RAs/RCMs on the FWG participate in developing all-inclusive budgets

and execution plans for organizations and programs and monitor the daily use of resources in

their RCs.

9.3.2.1. RAs or RCMs from the functions listed in Table 9.2 compose the typical FWG

membership. Any additional or reduced voting and advisory non-voting is at the

chairperson’s discretion, based on local management requirements.

Table 9.2. Sample FWG Membership List.

Staff

Position

FMA Officer

Chairperson

Operations Group RA

Member

Maintenance Group RA

Member

Mission Support Group RA

Member

Medical Group RA

Member

Civil Engineering

Advisor

Contracting

Advisor

9.3.2.2. Convene FWG meetings, to support the FMB. (T-2). Hold meetings at least once

a quarter for effective financial management. (T-2). The chairperson (or recorder)

prepares minutes of meetings, files the original in the FMA office and provides copies to

FWG members. Note: Minutes only need to be available for review for one prior year

and the current fiscal year.

9.3.2.3. The FWG develops requirements and revisions for the base or unit execution

plan. (T-2). The FWG reviews all appropriated fund execution plans and makes

recommendations to the FMB for final approval. (T-2). FWG members:

9.3.2.3.1. Integrate support requirements from organization’s prioritized list of

financial requirements with a balanced mission program.

9.3.2.3.2. Analyze the FWG’s execution plan thoroughly and impartially to achieve

high credibility.

9.3.2.3.3. Act as the commander’s agents, as well as the parent activities

representatives during the review.

9.3.2.4. The FWG identifies unfunded requirements, recommends priorities and presents

them to the FMB for approval. (T-2).

9.3.2.5. The FWG recommends for FMB approval adjustments of execution plan targets

between RCs to correct imbalances in resources distribution imbalances. (T-2).

9.3.2.6. The FWG members:

40 AFI65-601V2 29 JANUARY 2021

9.3.2.6.1. Help develop requirements for base operating budgets and other

appropriated funds.

9.3.2.6.2. Represent their organizations on matters concerning distributing quarterly

and annual operating budget authority to the RC level.

9.3.2.6.3. Offer technical guidance to base activities on using their primary

responsibility resources.

9.3.2.6.4. Monitor execution plan execution by reviewing obligation data to ensure

quarterly and annual programs are valid and adequate.

9.3.2.6.5. Recommend reprogramming or other management action to the FMB when

needed.

9.4. Administering the Operating Budget and Execution Plan. Base-level managers must

play an active role in preparing and administering their portion of the budget. There are many

unique requirements, budgeting methods, cost factors and other variable elements involved in

preparing budget and execution plans. Each base or unit must involve operating managers in

execution plan formulation, justification, review and execution. (T-2).

9.4.1. Distributing the Approved OBA. Upon receiving the OBA from higher headquarters,

the FWG and FMB distribute the funded amounts to RC managers. (T-2).

9.4.1.1. After analyzing the OBA, the FWG submits proposed targets to the FMB for

each RC receiving funding. (T-2).

9.4.1.2. The execution plan lists amounts by the proper accounting elements, to include

PE, EEIC, object class, BA, ESP (if applicable). (T-2). Data can be summarized at

different levels of detail depending on the audience.

9.4.1.3. The RC considers EEIC/cost center amounts as targets and distributes the OBA

in this manner (unless higher headquarters placed specific limitations on any

EEIC/Object Sub Class amount). (T-2). RCMs usually do not impose additional

restraints other than those on the base’s OBA.

9.4.2. Establishing and Maintaining Targets. Targets translate mission requirements into the

dollar value required to accomplish the mission. See Chapter 5 and Interim Guidance on

Procedures for Administrative Control of Appropriations and Funds Made Available to the

Department of the Air Force for targets, limitations and processing targets.

9.4.2.1. Targets’ purposes are to:

9.4.2.1.1. Serve as guides for consuming resources, stated in the dollar value terms of

the targets established.

9.4.2.1.2. Provide the measure to determine planning effectiveness.

9.4.2.1.3. Provide the control mechanism to meet alternatives specified in execution

plans.

9.4.2.1.4. Establish the process of periodic reviews to identify resource overages and

shortages. This permits resource redistribution to greatest need areas.

AFI65-601V2 29 JANUARY 2021 41

9.4.2.2. Targets apply at:

9.4.2.2.1. Management decision levels selected by the command or base.

9.4.2.2.2. The level that has the most significant impact on resource consumption—

usually the second or third RC levels.

9.4.2.3. RCM’s principal financial concerns:

9.4.2.3.1. Ensure actual obligations are in line with their quarterly and annual

operating budget authority totals.

9.4.2.3.2. Examine validity of obligations to determine if appropriate for output

production and mission accomplishment.

9.4.2.4. Base financial analysts’ (comptroller personnel) principal concern is ensuring

base wide obligations do not exceed the annual total of the base’s operating budget and

legal or administrative limitations on the base OBAD or FAD.

9.4.2.4.1. Financial analysts monitor the actual expenses and obligations of each RC

versus their execution plan totals.

9.4.2.4.2. Financial analysts normally do not control each RCM’s obligation by

EEIC. Unless there are mission or OBA changes, financial committees must not

adjust RC operating budget authority targets more frequently than quarterly.

9.4.2.5. Time targets:

9.4.2.5.1. Use annual targets as long-range planning guides and the total available

funds for the fiscal year. (T-2). Make sure managers create proper plans to obligate

available funds and do not exceed targets without prior approval from the FMA

office. (T-2).

9.4.2.5.2. The quarterly obligation authority represents the funds available for

cumulative gross commitments. Quarterly obligation authority is cumulative from

the beginning of the fiscal year.

9.4.3. Reprogramming Authority. There are two significant levels of base reprogramming

authority or flexibility between RCs and within RCs, unless further guidance has precluded

reprogramming.

9.4.3.1. Within a BA, the commander may designate a reprogramming threshold below

which there is no need to convene the FMB for approval if the involved RCs agree.

9.4.3.1.1. FMA officers may reprogram quarterly operating budget authority without

prior FMB approval if:

9.4.3.1.1.1. They act during the first three quarters of each fiscal year.

9.4.3.1.1.2. Involved RCMs approve it.

9.4.3.1.1.3. Reprogramming actions are reviewed at the next FWG/FMB

meetings. The FMB must approve such a policy during the first meeting of each

fiscal year. (T-3).

42 AFI65-601V2 29 JANUARY 2021

9.4.3.1.2. Financial management analysis officers may approve routine transfers of

quarterly operating budget authority to and from higher headquarters. (T-2). Review

transfers at the next FWG/FMB meetings.

9.4.3.2. An RCM may have full authority to make cost center or EEIC adjustments

internal to the budget totals, including redistribution of subordinate cost center amounts

provided it is within the limitations stated on the operating budget authority documents.

In some instances, major command or local management impose administrative

restrictions to this reprogramming flexibility, but usually limit restrictions to specific

funding areas. The RCM:

9.4.3.2.1. Must coordinate with FMA before changing the quarterly or annual target

amounts. (T-3).

9.4.3.2.2. May determine the EEIC mix and CC distribution best suited to

accomplish their mission unless FMB approves restrictions to the contrary.

9.5. Using Productivity and Related Programs. The ability to reprogram and retain resources

motivates innovative managers to save through improved management practices. When

managers save money through their own initiative (by economizing or doing a job more

efficiently) then, if possible, they may make these savings available for the organization’s

unfunded requirements. This gives an incentive for every manager to save funds while

completing their mission. Create a financial and management environment that encourages and

rewards improved efficiency.

9.5.1. Retaining and reprogramming funds is not always possible because the Air Force’s

overall mission comes first. Overriding requirements may dictate using resources saved for

purposes outside the jurisdiction of the manager, base, or command producing the savings.

9.5.2. Formal and informal programs provide managers chances to get financial help for

carrying out cost-saving ideas. Informal programs usually include items that do not fit

established criteria and result mainly in cost avoidances or operation efficiencies.

Established formal Air Force programs include:

9.5.2.1. Airmen Powered by Innovation (API). See AFI 38-402, Airmen Powered by

Innovation and Suggestion Program.

9.5.2.2. Value Engineering (VE). See AFI 63-101_20-101, Integrated Life Cycle

Management.

9.5.2.3. Management engineering program. See AFMAN 38-101, Manpower and

Organization.

9.5.2.4. Energy Management. See DAFPD 90-17, Energy and Water Management and

DAFI 90-1701, Installation Energy and Water Management.

AFI65-601V2 29 JANUARY 2021 43

9.5.3. Air Force Audit Agency’s Statement of Potential Monetary Benefits. Audit reports

include potential monetary benefits data.

9.5.3.1. Management may concur or non-concur with the auditor’s estimate of monetary

benefits identified in each audit report. The Air Force Audit Agency’s reports this data to

higher headquarters through the RCS: DD-IG (SA) 1574 report.

9.5.3.2. Use potential monetary benefits to identify ways to use resources more

effectively. The FMA officer should be aware of these potential monetary savings

because the reports often lead to budget adjustments. See AFI 65-301.

44 AFI65-601V2 29 JANUARY 2021

Chapter 10

RESOURCE MANAGEMENT SYSTEM (RMS) TRAINING

10.1. General Information. This chapter outlines the responsibilities of persons and

organizations involved in base-level RMS training. The guidance covers training frequency,

program administration, basic content and the target group.

10.1.1. Each Air Force manager must manage his resources efficiently. To fulfill this duty,

all managers require accurate and timely information designed to their needs. For example,

managers require information to develop execution plan requirements and to monitor actual

expenses and obligations against established targets.

10.1.2. A system or program must provide this information and procedures to each

organizational level.

10.2. Initial RMS Training.

10.2.1. Initial training must offer an overview of basic Air Force financial management

policies and an understanding of local unique programs and procedures. (T-1). Newly

assigned RCMs, CCMs and RAs must be familiar with their duties and responsibilities. (T-

1). The initial training provides:

10.2.1.1. A financial processes overview. (T-1).

10.2.1.2. An understanding of their responsibilities to their organization and the

Comptroller. (T-1).

10.2.1.3. A knowledge of available management reports. (T-1).

10.2.1.4. An understanding of the functions and key resource manager’s assigned duties.

(T-1).

10.2.1.5. An overview of procurement and supply procedures. (T-1).

10.2.1.6. An understanding of appropriations law or fiscal law. (T-1).

10.2.2. Provide new RCMs with initial RMS training not later than 90 days after assignment

of financial management responsibility. (T-1).

10.2.2.1. Start RAs initial training within 30 days after assignment and complete it

within 90 days after assignment. (T-1).

10.2.2.2. The comptroller or designee must give initial RMS training to all RCMs (e.g.,

group or squadron commanders) and their respective RAs. (T-1).

10.2.2.3. RAs possessing an Air Force Specialty Code (AFSC) of 6F0X* or 65F* or the

equivalent financial management civilian series code (e.g., 0501, 0560) are not required

to do initial RMS training. RAs who do not have FM specific AFSCs or equivalent

financial management civilian series codes (e.g., 0501, 0560) require initial RMS

training. (T-1).

AFI65-601V2 29 JANUARY 2021 45

10.2.3. RAs train CCMs with assistance from the comptroller personnel. (T-1). MAJCOM

and base-level management will control the content and presentation method of RMS

training so it can cover areas unique to the command and base. (T-3).

10.2.4. The following includes a minimum list of subjects comptrollers will use in their

initial RMS training with RCMs and RAs (T-3).

10.2.4.1. RMS functions and responsibilities of:

10.2.4.1.1. Center, Wing, or Base commander.

10.2.4.1.2. Responsibility center managers.

10.2.4.1.3. Cost center managers. (T-1).

10.2.4.1.4. Resource advisors. (T-1).

10.2.4.1.5. Comptroller organization. (T-1).

10.2.4.2. Functions and responsibilities of the FMB. (T-1).

10.2.4.3. Functions and responsibilities of the FWG. (T-1).

10.2.4.4. Formulation of the execution plan. (T-1).

10.2.4.5. Execution of the execution plan: (T-0).

10.2.4.5.1. OBA. (T-1).

10.2.4.5.2. Annual and quarterly targets. (T-1).

10.2.4.5.3. Legal and administrative limitations. (T-1).

10.2.4.5.4. Disposition of savings. (T-1).

10.2.4.5.5. Year-end closeout procedures. (T-1).

10.2.4.5.6. Unfunded requirements. (T-1).

10.2.4.5.7. Flexibility within the OBA. (T-0).

10.2.4.5.8. Reimbursements and refunds. (T-1).

10.2.4.5.9. Management reports. (T-1).

10.2.4.5.10. Accounting system for operations. (T-1).

10.2.4.5.11. Supplies and equipment. (T-1).

10.2.4.5.12. Investment equipment procedures. (T-1).

10.2.4.5.13. Base and medical supply system procedures. (T-1).

10.2.4.5.14. Procedures for local purchase of materiel items. (T-1).

10.2.4.5.15. Resource Management Team. (T-1).

10.2.4.5.16. Fall-out review. (T-1).

10.2.4.5.17. ODL and Dormant Account Reviews using FMSuite Open Document

Analysis. (T-1).

46 AFI65-601V2 29 JANUARY 2021

10.2.4.5.18. Propriety of funds and Anti-Deficiency Act. (T-1).

10.2.4.5.19. Travel obligations to include orders, advances, debts and accruals. (T-1).

10.2.4.5.20. MAJCOM Comptrollers ensure financial managers include

miscellaneous obligation reimbursement documents guidance. (T-1).

10.2.4.6. FM Systems Access and Training Prerequisites. These requirements apply to

all Air Force systems in the financial management portfolio which identifies financial

management as the "primary business function" in the enterprise information technology

data repository, Question N2.

10.2.4.6.1. Each individual functional financial system information owner must

establish and enforce training pre-requisites. (T-1). "Information owner" is defined as

the organization or entity responsible for the underlying business processes supported

and products produced, by the system. Per NIST 800-53, information owners are

those who have "statutory or operational authority for specified information and

responsibility for establishing the controls for its generation, collection, processing,

dissemination and disposal."

10.2.4.6.2. Training requirements will be based on the roles and permissions granted

for each user type and should address requirements for both establishing initial access

and maintaining access over a period of time (recurring training). In general,

individuals requiring read-only access should not be subject to the same intensive

requirements for system training as system administrators and others who have

permissions to input and alter data within the system. Information owners for each

system will determine whether system and database administrators (non-financial

personnel with the capability to alter system data) should be required to obtain any

type of finance-related training in addition to the network professional training

requirements identified in DoD 8570.01-M Information Assurance Workforce

Improvement Program and AFMAN 17-1301, Computer Security (COMPUSEC),

publications. (T-0). Individuals with fiduciary responsibility should also have a

higher level of training when accessing information upon which financial decisions

will be made.

10.2.4.6.3. Completion of required training will be validated through use of the DD

Form 2875, System Authorization Access Request (SAAR), (T-0). Supervisors will

document appropriate training requirements and certify individuals have successfully

completed those requirements in Block 13 of the DD Form 2875 prior to endorsing

system access requests. (T-0).

AFI65-601V2 29 JANUARY 2021 47

10.2.4.7. Accountable official training prerequisites in accordance with DoD FMR

7000.14-R Volume 14, paragraph 020401. Accountable officials require an

understanding of appropriations law so they can detect, prevent, report and control Anti-

Deficiency Act violations.

10.2.4.7.1. Accountable officials include 1) any individual responsible for the proper

assignment of funding on a commitment or obligation document before the obligation

is incurred (e.g., resource managers, fund holders, funds certifying officials) and 2)

personnel holding any piece of the "financial" process (e.g., requirements approval).

These include, but are not limited to, financial, program and project managers;

engineers, contracting, information system and comptroller personnel.

10.2.4.7.2. RAs are responsible for identifying accountable official training needs

within their organization. Training documentation is maintained by the

supervisors/managers of accountable officials who have FM-specific AFSCs (6FOX*

or 65F*) or financial management civilian series codes (e.g., 0501, 0560).

10.2.4.7.3. Individuals must complete and maintain currency in fiscal law or

appropriations law. Currency expires three years from the date of completion of the

appropriate course. Supervisors will help determine the best medium for obtaining

fiscal or appropriations law training. (T-3).

10.2.5. There are many resources available to assist in conducting RMS training.

Incorporating the following material will expand and enhance the trainees’ comprehension of

the RMS.

10.2.5.1. FM Online: https://fmonline.ousdc.osd.mil/

10.2.5.1.1. FM Online provides current information and articles on topics of interest

for the FM community.

10.2.5.1.2. Access FM my Learn through FM Online for a comprehensive e-catalog

of FM training (e.g., Fiscal Law) and professional development.

10.2.5.2. FM Distributed Learning Center:

https://fm.adls.af.mil/kc/rso/login/adls_login.asp

10.2.5.2.1. Includes a comprehensive catalog of FM training (e.g., Financial

Management Body of Knowledge) which can be used for FM systems access.

10.2.5.2.2. Have newly appointed RAs take each of the Financial Management

Principles (Basic) online courses, as well as, Financial Management Concepts online

courses (under Budget Formulation and Execution) as part of their initial training. (T-

1).

10.2.6. There is no single method to do RMS training. Use a mix of methods. The

following is a list of proven methods:

10.2.6.1. Financial Management Committee Presentation. Suited to establish, review

and discuss policies and procedures. Devote small segments of the committee meetings

to clarify or review specialized subjects.

10.2.6.2. Classroom and Group Presentation. Best suited for initial RMS training.

Prepare training packages requiring little revision for slide or video presentation.

48 AFI65-601V2 29 JANUARY 2021

10.2.6.3. Individual One-on-One Sessions. Use this to train new financial managers and

to address specific individual needs. This method is the most flexible.

10.2.6.4. Written Material. Use written training aids, pamphlets, handouts, Distributed

Learning System courses, checklists, newsletters and budget policy letters for RMS

training.

10.3. Continuation and Refresher Training.

10.3.1. Comptrollers will provide RAs with refresher training, after satisfactory completion

of initial basic and specialized training. (T-1). Design training for specific persons or small

groups such as the FWG. (T-1).

10.3.1.1. Provide personnel training for maintaining proficiency and keeping abreast of

current management policies on effective use of resources. (T-1).

10.3.1.2. Frequently hold continuation and refresher training, tailored to local needs, to

keep resource management personnel current on budget and accounting policies,

procedures and instructions. (T-1).

10.3.2. RAs provide continuation and refresher training of CCMs. RAs may request the

assistance of a comptroller to help with the refresher training of CCMs.

10.3.3. The required training, the number of people and training environment determines if

the continuation and refresher training is formal (training sessions or FWG meetings).

Informal training is casual (training through one-on-one contact or during visits to

Responsibility Centers by the unit resource management team).

10.4. Administration of the RMS Training Program.

10.4.1. Comptrollers must properly document initial RMS training to ensure complete

coverage of necessary information for all personnel requiring training, while preventing

unnecessary duplication. (T-1).

10.4.1.1. FMA offices will maintain initial training documentation for RC managers and

RAs, as well as maintain training certificates for all FM system access users outlined in

paragraph 10.2.4.6 to paragraph 10.2.4.6.2 (T-3). Keep all training documentation on

hand for one prior fiscal year and the current fiscal year, but keep FM system access

training certificates on- hand for five years or until the FM system user has updated their

training requirement. (T-3).

10.4.1.2. The RA’s organizations keep CC managers training documentation. (T-3).

10.4.1.3. Keep required training documentation current and documented using the format

in Table 10.1 (T-1). Record initial training and FM system access training. (T-3). Use

automated or manual record keeping systems.

AFI65-601V2 29 JANUARY 2021 49

Table 10.1. RMS Training Documentation Format.

Rank /

Name

Unit

RCM, RA

FMSystem

User

Date

RCM/RA

Assigned /

Appointed

Day

Initial

Training

Started

(RAs)

Day

Complet

ed Initial

Training

(RCMs /

RAs)

FM System

Access

(Name

System)

System

Access

Training

System

Access

Training

Date

Col John

Doe

435

MSG

RCM

1 Jul 10

N/A

15 Aug 10

N/A

Mr John

Doe

435

MSS

8 Jul 10

15 Jul 10

05 Oct 10

ABSS,

WAWF, etc.

BoK

10 Jul 10

SSgt

Jane

Doe

435

MSS

FM System

User

N/A

ABSS,

WAWF, etc.

BoK

15 Jul 10

Note: Follow training requirements for RCMs and RA stated in this chapter. (T-1). FM system access

currency expires after five years from date of completion.

10.4.2. SAF/FMB requires training letters and certificates to document proof of initial RMS

training and FM System Access.

Stephen R. Herrera

Performing the Duties of

Assistant Secretary of the Air Force (Financial

Management and Comptroller)

50 AFI65-601V2 29 JANUARY 2021

Attachment 1

GLOSSARY OF REFERENCES AND SUPPORTING INFORMATION

References

10 U.S.C. § 12301 Reserve Components Generally

31 U.S.C. Subchapter III, Limitations, Exceptions and Penalties

DoDD 7045.14, The Planning, Programming, Budgeting and Execution (PPBE) Process, 25

January 2013

DoD 8570.01-M, Information Assurance Workforce Improvement Program, 19 December 2005

DoD FMR 7000.14-R, Volume 2A, Budget Formulation and Presentation, January 2011

DoD FMR 7000.14-R, Volume 3, Budget Execution – Availability and Use of Budgetary

Resources, January 2020

DoD FMR 7000.14-R, Volume 7A, Military Pay Policy–Active Duty and Reserve Pay, May

2020

DoD FMR 7000.14-R, Volume 14, Administrative Control of Funds and Antideficiency Act

Violations, June 2020

DFAS-DE 7010.1-R, General Accounting and Finance Systems at Base Level, 15 February 1991

DFAS-DE 7077.2-M, USAF Standard Base-Level GAFS, 1 April 2013

DFAS-DE 7077.10-M, SBS(GV) Standard Base Supply System User’s Manual, 01 October 2004

DFAS 7220.4-I, Tri-Annual Review Program, 27 January 2016

DoD Dictionary of Military and Associated Terms, December 2020

DAFI 33-360, Publications and Forms Management, 1 December 2015

AFAFO Commitment Guidance (formerly DFAS-DE 7000.5-R and AFR 170- 13), September

2017, https://org2.eis.af.mil/sites/13465/SitePages/Individual%20Guides.aspx

AFI 23-101, Materiel Management Policy, 22 October 2020

AFI 25-201, Intra-Service, Intra-Agency and Inter-Agency Support Agreements Procedures, 18

October 2013

AFI 33-322, Records Management and Information Governance Program, 23 March 2020

AFI 36-129, Civilian Personnel Management and Administration, 17 May 2019

AFI 36-2110, Total Force Assignments, 5 October 2018

AFI 38-402, Airmen Powered by Innovation and Suggestion Program, 9 February 2018

AFI 63-101_20-101, Integrated Life Cycle Management, 30 June 2020

AFI 65-118, Air Force Purchases Using Military Interdepartmental Purchase Requests

(MIPRS), 8 April 2020

AFI 65-301, Internal Audit Services, 31 August 2018

AFI65-601V2 29 JANUARY 2021 51

AFI 65-503, US Air Force Cost and Planning Factors, 13 July 2018

DAFI 90-1701, Energy Management, 17 December 2020

AFMAN 17-1301, Computer Security (COMPUSEC), 12 February 2020

AFMAN 23-122, Materiel Management Procedures, 27 October 2020

AFMAN 38-101, Manpower and Organization, 4 September 2019

AFMAN 65-116, Volume 1 Defense Joint Military Pay System Active Component (DJMS-AC)

Financial Management Flight (FMF) Procedures, 23 October 2019

AFMAN 65-604, Appropriation Symbols and Budget Codes, (Current Fiscal Year)

AFMAN 65-605, Volume 1, Budget Guidance and Technical Procedures, 16 August 2012

DAFPD 65-6, Budget, 27 September 2019

DAFPD 90-17, Energy and Water Management, 21 May 2020

AFAFO Website: https://org2.eis.af.mil/sites/13465/SitePages/Accounting%20Policies.aspx

Financial Management Book of Knowledge

FM Distributed Learning System: https://fm.adls.af.mil/kc/rso/login/adls_login.asp

FM Online: https://fmonline.ousdc.osd.mil/

Adopted Forms

Air Force Form 616, Fund Cite Authorization

Air Force Form 847, Recommendation for Change of Publication

Air Force Form 1269, Request for Load or Change in Fund Targets

DD Form 448, Military Interdepartmental Purchase Request

DD Form 2875, System Authorization Access Request (SAAR)

Prescribed Forms

None

Abbreviations and Acronyms

AF—Air Force

AFAFO—AF Accounting and Finance Office

AFI—Air Force Instruction

AFIMSC—Air Force Installation and Mission Support Center

AFMAN—Air Force Manual

ANG—Air National Guard

BA—Budget Activity

CC—Commander

52 AFI65-601V2 29 JANUARY 2021

CCM—Cost Center Manager

CRA—Continuing Resolution Authority

DD—Department of Defense

DEAMS—Defense Enterprise Accounting and Management System

DFAS—Defense Finance and Accounting Service

DFAS-DE—Defense Finance and Accounting Service - Denver Center (now supported by

DFAS—Columbus and DFAS-Indianapolis)

DoD—Department of Defense

EEIC—Element of Expense Investment Code

EP—Execution Plan

ESP—Emergency and Special Program

FAD—Funding Authorization Document

FDN—Funding Document Number

FM—Financial Management

FM BoK—Financial Management Book of Knowledge

FMA—Financial Management Analysis

FMB—Financial Management Board

FMSuite—Financial Management Suite

FWG—Financial Working Group

FYDP—Future Years Defense Program

GAFS-BL—General Accounting and Finance System-Base Level

IWIMS—Interim Work Information Management System

MAJCOM—Major Command

NGB—National Guard Bureau

OAC—Operating Agency Code

OBA—Operating Budget Authority

OBAD—Operating Budget Authority Document

OCCR—Organization Cost Center Record

ODL—Open Document Listing

O&M—Operation and Maintenance

OLVIMS—On-Line Vehicle Interactive Management System

OMB—Office of Management and Budget

AFI65-601V2 29 JANUARY 2021 53

OPR—Office of Primary Responsibility

OSD—Office of the Secretary of Defense

PBAS—Program Budget Automated System

PCS—Permanent Change of Station

PE—Program Element

PFMR—Project Fund Management Record

PFY—Prior Fiscal Year

RA—Resource Advisor

RC—Responsibility Center

RCM—Responsibility Center Manager

RC/CC—Responsibility Center/Cost Center

RCS—Reports Control Symbol

RDT&E—Research, Development, Test and Evaluation

RMS—Resource Management System

TAR—Triannual Review

TOA—Total Obligation Authority

Terms

The purpose of this glossary is to help the reader understand the terms used in this

publication. It is not intended to encompass all pertinent terms. Joint Publication 1—02,

Department of Defense Dictionary of Military and Associated Terms and AFDD 1-2, Air Force

Glossary contain standardized terms and definition for Department of Defense and Air Force use.

Element of Expense Investment Code (EEIC)—These represent the final breakout in the

budget structure. The number varies with the MAJCOM, depending on the number of sub-

elements required for local management. This part of the budget structure is quite similar to the

Office of Management and Budget (OMB) object classification. Air Force EEICs and DoD

elements of expense are in the Financial Management Data Dictionary.

Interim Work Information Management System (IWIMS)—The general accounting and

finance system and IWIMS are independent systems that exchange data. IWIMS receives daily

accounting transactions affecting civil engineering. IWIMS, in turn, passes data back to the

general accounting and finance system at the end of each month for civil engineering material

cost distribution data. Additionally, the IWIMS produces a monthly Schedule of

Reimbursements and Refunds Report that reflects reimbursable and refund costs applicable to

each BCE reimbursable/refundable customer. This data is used by DFAS to record

reimbursements or refunds to the proper accounts. DFAS requires special coding to identify

obligation and expense transactions entered into the accounting system that also apply to Civil

Engineering/IWIMS. See DFAS-DE 7077.2-M, Section 53 for more detailed information on

IWIMS processing.

54 AFI65-601V2 29 JANUARY 2021

Organization Cost Center Record (OCCR) System—The OCCR system provides for current

day as well as fiscal year-to-date materiel obligation and expense data recorded at the cost center

level for EEICs 600, 602, 609, 628, 644 and 645. The system provides cost center level

management products showing the net value (issues less turn-ins) of materiel issued by EEIC,

value of obligated due-outs by EEIC and fund availability targets by EEIC.

Program Element (PE)—PEs describe all forces, activities and support required to accomplish

the Air Force mission with associated costs.

Total Obligation Authority (TOA)—TOA is direct obligation authority plus accepted

reimbursable orders.

AFI65-601V2 29 JANUARY 2021 55

Attachment 2

BUDGETING AND ACCOUNTING SYSTEM FOR OPERATIONS

A2.1. The System’s Purpose and Content:

A2.1.1. The Future Year Defense Program (FYDP). The FYDP summarizes resources

(forces, personnel and TOA for each appropriation) programmed for DoD—categorized by

programs and related to the budget’s appropriation structure. See DoD Directive 7045.14,

The Planning, Programming, Budgeting and Execution Process and DoD FMR 7000.14-R,

Volume 2A, Budget Formulation and Presentation.

A2.1.1.1. The FYDP projects all data except forces for 5 years; forces extend an

additional 3 years.

A2.1.1.2. Carefully cost out the FYDP. Link plans and programs to desired program

budget estimate levels and to approved program levels of budget authorities.

A2.1.2. Budgeting and Accounting Systems. The budgeting system defines the requirement

for future consumption of resources; the accounting system records the resources used. The

accounting system for operations covers funds made available from the O&M, Military

Personnel, Other Procurement, Military Construction Program and Military Family Housing

appropriations. This instruction emphasizes O&M and Military Personnel. (See

Attachment 3 for details on the O&M Budget Activity Structure.)

A2.1.3. Using Information. The accounting system for operations:

A2.1.3.1. Allows analysts and managers to evaluate financial and program progress,

determine budget requirements and justify total resource requirements.

A2.1.3.2. Applies elements of the FYDP (BAs and PEs) to all organizations

(responsibility centers/cost centers) (RC/CCs) that accumulate operating costs by Air

Force EEICs.

A2.1.3.3. Provides obligation and expense information to formulate budgets and monitor

actual execution against quarterly and annual budget targets. It also provides adequate

fiscal controls and accounting techniques to properly account for appropriated funds.

A2.2. Support and Cost System Integration:

A2.2.1. Transaction Data. The main transaction data comes from DFAS direct entry of

information from obligation and commitment documents (e.g., travel orders, purchase

requests and orders for goods and services and other Air Force contract and procurement

documents). Other automated support systems provide the remaining information.

A2.2.2. Support Systems Interface. Three major support systems (Civilian Payroll, Military

Personnel Expense and Automated Supply and Equipment) interface with the accounting

systems.

A2.2.2.1. See Chapter 8 for military personnel expense procedures.

A2.2.2.2. The General Support, Medical-Dental and Reparable Support divisions of the

Defense Working Capital Fund provide update data that are processed periodically during

the month and at month-end into the general accounting system. DFAS updates the

56 AFI65-601V2 29 JANUARY 2021

status of funds for base resource managers and budget using current supply and

equipment expense data generated by the periodic processing. RCMs, RAs and CCMs

use the accounting system management reports and automated materiel system reports to

monitor the execution of their execution plan.

A2.2.3. Cost System Interface. The general accounting and finance system is the principal

financial data source for input to the Interim Work Information Management System

(IWIMS) and Vehicle Integrated Management System (VIMS). With minor modifications,

the general accounting and finance system processes these systems’ financial transactions.

This single source of financial data for the cost system allows data back to the accounting

system for reimbursement or to distribute material costs.

A2.3. Management Application of the Accounting System for Operations:

A2.3.1. Management Controls. Other directives and instructions show how to manage

resources and administer the budget in specific functional areas. The accounting system

provides management control data that allows RC/CC managers and comptroller personnel to

do financial analysis.

A2.3.2. Undelivered Orders Outstanding. Usually, base services contracts are performed

over a fairly long time period and it is not appropriate to record them as expenses when the

contract is awarded.

A2.3.2.1. Charge the contract to an "undelivered orders" account and record it as an

obligation—not as an expense. (T-1).

A2.3.2.2. Upon completing the job, (the vendor provides the services and/or

documentation showing incremental completion), charge the amount to expense and

reduce the undelivered orders accounts. (T-1).

A2.3.2.3. The sum of current fiscal year expense incurred (accrued expenditures paid

and unpaid) and current fiscal year undelivered orders will always equal current year

obligations. (T-1).

A2.3.3. Project Fund Management Records (PFMR). Materiel requirements and associated

financing are part of the base’s available O&M fund authority. These are some management

control techniques used for the mechanized supply system.

A2.3.4. Establish the quarterly phased dollar programs that apply to Expeditionary Combat

Support System operations and the Standard Materiel Management System in the PFMRs.

(T-1). After the FMB approves the FWG recommended target distributions, RAs furnish the

financial management analysis office internal operating budget targets within each PFMR by

organization code and cost center code, if applicable. (T-1).

A2.3.4.1. Load targets into the Expeditionary Combat Support System. (T-1).

A2.3.4.2. Load targets by cost center code into the Standard Materiel Management

System. (T-1).

A2.3.4.3. The total targets for all OCCRs can’t exceed the total amount of the

responsibility center approved target for the organization PFMR.

AFI65-601V2 29 JANUARY 2021 57

A2.3.5. FMA summarizes the recommended distributions based on (1) the total supply and

equipment approvals and (2) the receipt of recommended organization and cost center

distributions from RAs. (T-2). FMA will enter the data into the applicable supply system.

(T-2). FMA should inform RAs if changes are made to the recommended distribution before

final processing.

A2.3.6. Establish separate PFMRs for the host and each Air Force tenant and additional

PFMRs. (T-2). (See Accounting and Finance and Supply directives).

A2.3.6.1. Establish PFMRs by fund code, operating agency code (OAC), Operating

Budget Account Number, budget project (for Military Family Housing) and budget

activity (for O&M), at the RC/CC levels specified in MAJCOM instructions. (T-2).

A2.3.6.2. Use one combined PFMR for both supplies and equipment. (T-2).

A2.3.7. Reimbursable Program:

A2.3.7.1. Reimbursable Authority. Reimbursable authority is available only when a

customer order has been received. (T-0). DoD Components must not authorize or incur

an obligation or make a disbursement against anticipated reimbursements. (T-0). Such

actions must be delayed until the applicable customer order is received from Federal

Government activities or funds are collected from public activities or those Federal

activities not paying with an appropriation or any other form of budget authority. (T-0).

See DoD FMR 7000.14-R, Volume 3, Chapter 15 and Volume 14, Chapter 1 and

AFMAN 65-605, Volume 1, Chapter 5 for further details.

A2.3.7.1.1. For O&M, Procurement and RDT&E appropriations, SAF/FMB

transmits annual reimbursable authority (anticipated reimbursements) to the

Commands. Regular AF, ANG and AFR Military Personnel reimbursable authority

is NOT auto apportioned. Office of Management and Budget will authorize and OSD

will issue reimbursement authority to the ANG for anticipated reimbursements.

Authority may not be increased after the close of the fiscal year.

A2.3.7.1.2. MAJCOMs/FOAs will not allot anticipated reimbursement unless they

have reasonable assurance that the reimbursements will be collected. (T-2). Even

when reimbursements are apportioned or allotted, these estimates do not become

budgetary resources available for obligations unless two conditions have been met:

A2.3.7.1.2.1. Valid orders, including written agreements, have been received

from and obligated by Federal Government-funded customers.

A2.3.7.1.2.2. Advance payment has been collected, in the case of orders from the

public or those Federal activities not paying with an appropriation or any other

form of budget authority.

A2.3.7.2. Credit appropriation reimbursements to the EEIC that most nearly identifies

the nature of the materiel or service that originally provided it, except for transactions

related to IWIMS, On-Line Vehicle Interactive Management System or any other

management or cost system.

A2.3.7.2.1. Use selected EEICs only when reporting the appropriation

reimbursement transaction through a cost or management system. (T-1).

58 AFI65-601V2 29 JANUARY 2021

A2.3.7.2.2. Identify the sale of services or materiel to a specific EEIC/Object Sub

Class (OSC). (T-1). Only use EEIC 59900/OSC 253.1Z01 if identify the sale of

services or materiel to a specific EEIC/OSC and the sale is not reported through a

management or cost system. Use EEIC 59900/OSC 253.1Z01 to record advance

payments/collections receive from public activities or those Federal activities not

paying with an appropriation or any other form of budget authority. (T-1). Use

Material Program Code 9910 (advances received) in last 4 positions of the Budget

Program Activity Code for Procurement and RDT&E accounts for the same purpose

of recording advance payments/collections. (T-1).

A2.3.8. Program Element Predominancy Rule. Identify military and civilian personnel costs

to the DoD PE as authorized in the unit authorization file extract. (T-1).

A2.3.8.1. Identify other expenses, excluding EEIC series 2XX and 1XX, to the

appropriate DoD PE when reasonable effort is used; otherwise, identify these costs to the

RC/CC representing a predominant PE. (Validate through FMDD DQS). (T-1).

A2.3.8.2. Select the predominant PE based mainly on the manning authorizations

assigned to a specific organization. (T-1).

A2.3.8.3. The most common users of the predominancy rule are weapon system

maintenance activities who use common bench stocks for work on various aircraft.

A2.3.8.4. Identify costs to the proper PE. Doing otherwise distorts aircraft maintenance

cost factors developed by SAF/FMC because of inconsistencies in factors for like

aircraft. These discrepancies make it more difficult to defend budget estimate

submissions to OSD and Congress and can lead to a loss in funding to the Air Force.

A2.4. Summary:

A2.4.1. FYDP Relationship. Use the accounting system for operations to identify and code

the costs of Air Force missions, budget activities and PEs to meet FYDP requirements. (T-1).

Use element of expense codes to identify the cost of operating base-level organizations and

RC/CCs. (T-1). By linking these data elements, the Air Force relates all operating costs to a

major Air Force mission programmed in the FYDP.

A2.4.2. System Structure. The accounting system for operations is structured along

organizational lines because organizations manage and use resources. The operating reports

available to management show consumption by type of resource (i.e., EEIC).

A2.4.3. System Differences. The system focuses on the basic difference between resource

acquisition and resource consumption. The differences involve the time of purchase and

receipt of goods and services and the amounts of obligations and expenses:

A2.4.3.1. Appropriation accounting is concerned with resource acquisition or obligation

authority.

A2.4.3.2. Accrual (expense) accounting reports the costs of resources used during the

period.

AFI65-601V2 29 JANUARY 2021 59

Attachment 3

BUDGET ACTIVITIES

A3.1. Budget Activity (BA) Structure for Active AF. The BA is the major budget program in

the operating budget structure.

A3.1.1. The BA structure for the O&M appropriation (3400) includes (See AFMAN 65-604

for descriptions):

A3.1.1.1. Budget Activity 01: Operating Forces.

A3.1.1.2. Budget Activity R1: Reimbursable Activity in Support of Operating Forces.

A3.1.1.3. Budget Activity 02: Mobilization.

A3.1.1.4. Budget Activity R2: Reimbursable Activity in Support of Mobilization.

A3.1.1.5. Budget Activity 03: Training and Recruiting.

A3.1.1.6. Budget Activity R3: Reimbursable Activity in Support of Training and

Recruiting.

A3.1.1.7. Budget Activity 04: Administration and Service wide Activities.

A3.1.1.8. Budget Activity R4: Reimbursable Activity in Support of Admin and Service-

wide Activities.

A3.1.2. The BA structure for the Military Personnel appropriation (3500) includes

(Reference AFMAN 65-604 for details):

A3.1.2.1. Budget Activity 01: Officer Pay and Allowances.

A3.1.2.2. Budget Activity 02: Enlisted Pay and Allowances.

A3.1.2.3. Budget Activity 03: Cadet Pay and Allowances.

A3.1.2.4. Budget Activity 04: Enlisted Personnel Subsistence.

A3.1.2.5. Budget Activity 05: Travel, Permanent Change of Station.

A3.1.2.6. Budget Activity 06: Other Military Personnel Costs.

A3.2. Budget Activity (BA) Structure for AFR and ANG. The BA is the major budget

program in the operating budget structure.

A3.2.1. The BA structure for the ANG O&M appropriation (3840) and AFR O&M

appropriation (3740) includes (See AFMAN 65-604 for descriptions):

A3.2.1.1. Budget Activity 01: Operating Forces.

A3.2.1.2. Budget Activity R1: Reimbursable Activity in Support of Operating Forces

A3.2.1.3. Budget Activity 04: Administration and Recruiting.

A3.2.1.4. Budget Activity R4: Reimbursable Activity in Support of Admin and Service-

wide Activities.

A3.2.2. The BA structure for the ANG Military Personnel appropriation (3850) includes

(Reference AFMAN 65-604 for details):

60 AFI65-601V2 29 JANUARY 2021

A3.2.2.1. Budget Activity 01: Unit and Individual Training/Other Training and Support

A3.2.3. The BA structure for the AFR Military Personnel appropriation (3700) includes

(Reference AFMAN 65-604 for details):

A3.2.3.1. Budget Activity 01: Unit and Individual Training

AFI65-601V2 29 JANUARY 2021 61

Attachment 4

THE EXECUTION PLAN

A4.1. Overview of the Active Air Force Execution Plan:

A4.1.1. Purpose. The basic purpose of the EP submission is to ensure an equitable

distribution of the President’s Budget consistent with accomplishing Air Force program

objectives and to produce a plan that executes within budgetary limitations while supporting

the AF mission. The approximate submission schedule is:

A4.1.1.1. Submit the EP after OMB submits the President’s Budget to Congress, the first

Monday in February, for the fiscal year that begins the following October 1. Submitting

the EP approximately 4 months before the beginning of the upcoming fiscal year

provides MAJCOMs, combatant commands and other operating agencies current

information to prepare to execute the next fiscal year’s budget.

A4.1.1.2. The EP is the main vehicle for distributing anticipated funding (both direct and

reimbursable) for the upcoming execution year in an equitable manner. It requires all

organizational levels to contribute their corporate knowledge and expertise.

A4.1.1.3. Budget and functional staffs participate at each management level, including

financial and budget working groups at base, command and air staff.

A4.2. Elements of the Execution Plan:

A4.2.1. The Commander’s Statement. This statement includes assumptions, statements on

force changes, mission changes, equipment changes, conversions and any other changes that

will affect financial requirements. (T-3). The Commander’s Statement should speak to the

overarching risks and impacts within the command and provide an execution strategy

overview. This assessment should clearly and concisely state commander’s intent within the

constraints of both the bogey and guidance. It should also discuss any major trade-offs

necessary to operate within the command bogey provided by SAF/FMB. The Commander’s

Statement may be optional; check the O&M Execution Plan Call Guidance to determine if

required. (T-3).

A4.2.2. The Annual Execution Plan (Mechanized). This section includes line item budget

detail by BA, PE, EEIC and ESP (if applicable). Funding can be moved in the command

plan but must balance bottom line to the bogey and comply with all guidance and

instructions. (T-0).

A4.2.3. Sub Activity Group Narratives. This section contains Subactivity Group Narratives

categorized by SAF programs and mission areas as represented by Air Force Corporate

Structure panels. The purpose of the Subactivity Group narrative is to discuss the major cost

drivers within each Subactivity Group and the trade-offs made in order to minimize risks

and/or impacts. The Subactivity Group narrative should answer the following questions: 1)

What capabilities are funded? 2) What capabilities are not funded? 3) What are the risks and

impacts?

A4.2.4. SAF Program Requirements. Using the SAF-defined programs provide SAF/FMB

the total unconstrained requirement in each of the categories. These requirement amounts

will be used by SAF/FMBO for analysis purposes only. (T-2).

62 AFI65-601V2 29 JANUARY 2021

A4.2.5. Functional Realignments. Functional realignments are transfers of funding,

programs, missions or manpower identified and submitted in the command execution plan.

These realignments were either not identified or not processed during the POM. The four

types of functional realignments are: OAC Transfers, Library, GSA Leases and Long Lease

Lines. The realignment must identify a gaining and losing command. The realignment is

detailed by OAC, PE, EEIC and amount and both the gaining and losing commands must

fully coordinate and approve prior to submission to SAF/FMBO. (T-1). These functional

realignments are submitted to SAF/FMBO in September and included in the respective

command’s distribution.

A4.2.6. Foreign Currency Requirements (Exhibit Q). The Exhibit Q is used to identify all

foreign currency sensitive requirements. These requirements are converted into their

respective foreign currency using the approved OSD budget rate. The identified

requirements are consolidated at SAF/FMBO by command, country code, currency, PE and

EEIC. This consolidated data is used to create the President’s Budget - 18 Exhibit (Foreign

Currency Exchange Data) to establish the AF funding level for the DoD Foreign Currency

Fluctuation Account. This data is also used by SAF/FMBO to determine the command

distribution of both increases and decreases to foreign currency funding provided in the

President’s Budget. (T-1).

A4.2.7. Variance Analysis. The execution plan is a year round budget drill and includes the

comparison of planned program execution to actual (variance analysis). This ongoing

analysis provides valuable insight to better evaluate overall planning. (T-1). The analysis will

be performed throughout the year during the Operating Budget Review Committee (OBRC)

meetings. (T-1). The variance analysis is conducted at SAF Program and Panel Level.

AFI65-601V2 29 JANUARY 2021 63

Attachment 5

ACCOUNTING CLASSIFICATION CODES FOR MAJOR APPROPRIATIONS

Figure A5.1. Operation and Maintenance Funds Coding Structure (Legacy Example).

64 AFI65-601V2 29 JANUARY 2021

Figure A5.2. Operation and Maintenance Funds Coding Structure (DEAMS Example).

Figure A5.3. RDT&E Management and Support Funding Coding Structure (Legacy

Example).

AFI65-601V2 29 JANUARY 2021 65

Figure A5.4. RDT&E Mission Program Funds Coding Structure (Legacy Example).

Figure A5.5. Central Procurement Coding Structure (Legacy Example).

66 AFI65-601V2 29 JANUARY 2021

Figure A5.6. Military Construction Coding Structure (Example).

Figure A5.7. Military Personnel (Centrally Managed Allotment) Coding Structure

(Example).

Figure A5.8. Military Family Housing Coding Structure (Example).