Financial Management

DoD Instruction 7000.14-R, “Department of Defense Financial Management Regulations (FMRs),” is the DoD-wide regulation that guides financial management for accounting, budgeting, financing, and financial management education and training. DoD Comptroller: DoD 7000.14R – (Most Updated Versions) The regulation is comprised of Volumes 1-16, date varies per volume: Volume 1: GENERAL FINANCIAL MANAGEMENT INFORMATION, SYSTEMS AND REQUIREMENTS […]

Appropriation Categories are categories of government funding that group funds into areas of interest. Budget authority from Congress is required to incur obligations and pay costs associated with carrying out an acquisition program. Typically, Congress authorizes expenditures through an appropriations act, which details the authorized uses of the funds and the dollar amounts associated with

Authorization is an act of Congress that permits a federal program or activity to begin or continue from year to year. It sets limits on funds that can be appropriated but does not grant funding which must be provided by a separate congressional appropriation. Appropriation is an authorization by an act of Congress that permits

The Total Ownership Cost (TOC) is the summation of the cost of acquiring and owning or converting an item of material, piece of equipment, or service and post-ownership cost, including the disposal of hazardous and other manufacturing waste.  It also includes the cost of lost sales as a result of a reputation for poor product

The budget process consists of four (4) phases. [1] Submission of budget estimates to the Office of Budget (FMB) by Budget Submitting Offices (BSOs) throughout the Department of Defense (DoD) for review and final approval by the Secretary of the (Navy, Air Force, and Army). Submission of budget estimates by the Service Component to the

An Independent Cost Estimates (ICE) is a Life-Cycle Cost Estimate (LCCE) that is conducted independently of the Program Management Office (PMO) or defense agency by an outside organization.  It examines the full life-cycle cost (or Total Ownership Costs (TOC)) for a Major Defense Acquisition Program (MDAP) Acquisition Category (ACAT) I program. It’s required to be

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