Funds Control Module
What is it?
The FCM is a business process improvement that provides an automated end-to-end interface of supply requisitions to the accounting system. The four main objectives of FCM are:
- Eliminate Installation Supply Buffer (ISB). ISB was the current non-accounting Defense Finance and Accounting Service (DFAS) system that linked supply and financial systems. Its primary function was to translate logistical transactions to a format acceptable for financial processing (obligations, accruals, and disbursements). FCM replaces all 36 ISB systems in the DFAS inventory, performs the translation functionality, and provides DFAS savings of about $4.9 million per year.
- Obligate customer funds on the initial supply order/request. Under the prior process, an obligation did not occur until the first positive status for a request was processed through ISB and posted in the accounting system. Consequently, the customer did not have an accurate picture of the true obligation posture. By obligating on the initial request, the customer, as well as his logistics and resource managers, will have a more precise accounting of what funds have been obligated. FCM provides an enhanced audit trail, and reduces the possibility of over-obligating funds.
- Establish a more robust funds control process.The standard linkage between the Army’s financial and logistics systems did not provide a robust funds control process. The supply systems accepted and processed orders without a reasonable determination of funds availability. Forces Command, US Army Europe, and the Army National Guard used four different, unique systems to edit and process supply transactions into the financial systems. FCM provides a disciplined funds control process and a standard linkage between supply and financial systems. FCM performs a funds availability check for each requisition prior to acceptance by the supply systems, and eliminates the need for three of the four command unique systems currently processing supply transactions into the financial systems.
- Simplify the supply to finance reconciliation process.The prior supply and financial reconciliation process was cumbersome and ineffective. The process required reconciliation of the same data contained in at least four separate systems. FCM provides a single authoritative source of financial and supply data, eliminating the need to perform manual reconciliations.
What has the Army done?
The Assistant Secretary of the Army, Financial Management and Comptroller (FCM sponsor), AMC Enterprise Integration (Executive Agent) and AMC G-3 (Program Manager) implemented a phased approach for FCM deployment. The lead sites (Eighth US Army and Texas National Guard) were fielded in June 2006. US Army Europe, US Army Pacific, and the Army National Guard were fielded in October 2006, and the remaining Army commands in May 2007. With the Army-wide deployment of FCM, the Army has achieved all four objectives by successfully fielding a Federal Financial Management Improvement Act (FFMIA) compliant system which ensures a disciplined funds control process, accurate financial transactions, and a single authoritative source of financial and supply data; and has eliminated all ISB systems resulting in a $4.9 million annual reduction to the DFAS bill.
What continued efforts does the Army have planned for the future?
With some modification, FCM will provide a much needed up front funds availability check for Army requisitions submitted through the Defense Logistics Agency’s and General Services Administration’s web based off-line purchasing systems. We are also developing enhanced FCM reporting capabilities at the HQDA and field levels and have established a DFAS Help Desk function to reduce the large outstanding balance of help desk tickets.
Why is this important to the Army?
FCM ensures the Army has a FFMIA compliant and fully integrated logistical/financial process necessary to provide commanders with on-line, real-time access to supply resources.