Financial Management (FM) is the planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization. This section contains information about the “Execution” of FM functions within the Department of Defense (DoD).  FM functions are dictated by DoD Instruction 7000.14-R, “Department of Defense Financial Management Regulations (FMR),” which are the DoD-wide regulation that guides FM for accounting, budgeting, financing, and financial management education and training. Functions also have to adhere to all Financial Management Laws by Congress.

Overview: DoD Financial Management Overview

Presentation: Funds Management Platinum Card – July 2016

In the DoD, FM is the career discipline for managing the Programming, Planning, Budget and Execution (PPBE) Process; especially the Budgeting Process and Execution Process. The DoD uses the PPBE process to determine priorities and allocate resources.  The purpose of the PPBE system is to produce a plan, a program, and finally, a budget for the DoD.  FM concentrates on the Apportionment, Allocation, and Obligation of monetary resources by the DoD to maintain its warfighting capabilities. (see PPBE Overview, PPBE Map)

The main PPBE Tasks are:

• (P) Planning Phase: It’s the process of balancing and integrating resources among the various programs according to certain priorities
• (P) Programming Phase: It’s the process of determining what capabilities are needed for the future
• (B) Budgeting Phase: It’s the process for convincing OSD and Congress to provide the necessary resources and then balancing the checkbook to ensure the resources are spent in accordance with the law
• (E) Execution Phase: is the real-world application of the PPBE process.

DoD financial management manages the planning, programming, and budgeting procedures to support the DoD funding cycle that results in a program’s budget. FM execution functions that are associated with DoD Financial Management include:

• Authorization & Appropriations
• Advance Payments
• Appropriation Categories
• Budget Cycle
• Budget Execution
• Cost Analysis Requirements Description (CARD)
• Cost and Software Data Reporting
• DD Form 250 “Material Inspection and Receiving Report”
• Incremental Funding Policy
• Types of Funds
• Sources of DoD Budget Information

AcqLinks and References:

• Financial Management Overview
• User’s Guide to Performance-Based Payments
• Navy Multiyear Procurement Guidebook – Nov 2010
• DoD Inflation Handbook 2nd Edition – Jun 2011
• Funds Management Platinum Card – July 2016
• Website: 31 U.S.C. 1301 – Application
• Website: DoD Comptroller: DoD 7000.14R – (Most Updated Versions)
• Presentation: DAU Funds Management Update

Updated: 8/5/2021