Objective: At the end of this lesson, you should be able to:

• Describe the flow of funds and funds processing within IFMIS.

The diagram, known as the funds control "waterfall," shows the process in which FEMA controls funding. 

With each of these action steps:

• Required forms and signatures that must be obtained prior to data entry.
• Limits and restrictions may apply requiring additional approvals depending on the dollar amount and/or the items being purchased.

Allocation (BD)

An allocation is the amount available in your program budget/account.

Commitment (CM)

A commitment is the reservation of funds for a specific purpose and the certifying of funds availability.

Obligation (OB)

An obligation is a promise to a vendor (or traveler) to pay a certain amount for goods and/or services rendered to the government.

Receiving Report (RR)

The receiving report is an approval for payment for goods and/or services that have been received and are acceptable. Note: This step happens outside of IFMIS.

Invoice (IN)/Expenditure (EX)

An invoice is the issuance of payment to the vendor(s) who we are obligated to for the items received.

An expenditure is the recording of funds not issued through IFMIS.