Transcript Slide 1

Army Budget (BU)
MG Thomas Horlander
2
America’s Army
PACOM
JAPAN
2,360
SOUTH KOREA
19,790
ALASKA
11,860
HAWAII
21,980
OEF – PHILIPPINES
120
NORTHCOM
EUCOM
CONUS SPT BASE
19,080
USAREUR
27,270
CENTCOM
OFS – AFGHANISTAN
9,030
OAR – BALTICS &
POLAND
960
SOUTHCOM
OJG – BALKANS
710
AFRICOM
JTF – BRAVO
430
JTF – HOA
900
OUA – WEST AFRICA
1,010
132,000 SOLDIERS IN 150 LOCATIONS WORLDWIDE
OSS – KUWAIT
10,500
OSS – QATAR
1,650
JTF – GTMO
1,540
OTHER WORLDWIDE
OPERATIONS
10,760
OIR – IRAQ
2,020
OSS – JORDAN
890
MFO – SINAI
690
As of: 24 Feb 15
 The world is experiencing an increased velocity of instability
 America’s Army remains indispensable to National Defense
 Nine of ten active Army division headquarters are actively engaged around the world
 The Army is the backbone of the Joint Force, providing command and control to Joint Forces, setting
and sustaining theaters, and securing and controlling people and terrain
3
Army Topline
(Base Funding Program)
$150
$144.9
$140
$138.4
$ Billions
$134.6
Sequestration Impact
$129.7
$130
$127.4
FY15 Funding Divot
$126.5
$126.2
$3.2B O&M
$121.1
$5.1B Reduction
from FY14
$120
$110
2012
2013
$2.6B Proc
$120.5
$116.8
$117.3
2014
2015
2016
FY 16 O&M Reduction
FY16 Procurement Reduction
BBA Relief: Includes OCO for Base
PB Request
BCA Levels
FY12-14 Execution
FY15 Enacted
FY14: $3.1B OCO for Base Requirements
FY15: $.85B OCO for Base Requirements; $.3B Readiness Addition
At FY16 PB Levels

The FY 2016 request begins to restore balance between Endstrength, Readiness, and Modernization

Sustains a planned drawdown of the Active Component to 475K

Transitions from Tiered Readiness resourcing to more balanced
Total Readiness across the Force


Balanced, rotationally focused, and surge ready force to meet
combatant command demands
Modernizes helicopter fleets; Armored Multi-Purpose Vehicle,
Paladin Integrated Management, and Stryker Double-V Hull
Under Sequestered Budget Levels

Continues Tiered Readiness resourcing

Provides a Contingency Force where only 9 of ~30 Active
Component BCTs are ready at a given time; supports only
priority Global Force Management Missions

Accelerates the drawdown of the Active Component

Cuts Modernization Accounts by ~12%

Supports only critical life, health, and safety repairs to facilities
Readiness and modernization will feel the brunt of BCA
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FY 2015/2016 Budget Comparison
(Base Funding Program)
FY13
FY14
FY15
FY16
Actuals
Actuals
Enacted
Request
Military Personnel
56.1
56.4
56.2
56.3
Operation and Maintenance
43.1
44.71
41.82
44.7
Procurement/RDTE
23.1
21.2
20.6
23.1
Military Construction
3.4
2.6
.9
1.1
Other Base (FHA/BRAC/CAMD/AWCF/ANC)
1.7
1.3
1.6
1.4
127.4
126.21
121.12
126.5
Request ($B)
Totals
Other Base: Chemical Agent and Munitions Destruction, Army Working Capital Fund, Arlington National Cemetery
1: Includes $3.1B OCO for Base Transfer
2: Includes $.85B OCO for Base Transfer and $.27B in Readiness Increase
 FY15 Base Enacted
 FY16 Base Request
$126.5B
$121.1B
Military
Construction <1%
Other Base
1%
Procurement
RDTE 17%
Operation &
Maintenance
34%
Military
Personnel
47%
Other Base
1%
Military
Construction <1%
Procurement
RDTE 18%
Operation &
Maintenance
Military
Personnel
45%
36%
FY16 Budget Request Equals FY14 Expenditures
5
FY16 Budget Highlights
 Total Army Forces: End-strength of 1,015 (AC 475K/ARNG 342K/USAR 198K)
 Total Readiness across the force
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•
•
•
19 Combat Training Center (CTC) rotations
16 Decisive Action (14 AC/2 RC)
2 Functional Brigades
1 Mission Rehearsal Exercise (MRE)
 Regional Engagements
• Pacific Pathways
• BCT rotation to South Korea
• Aviation and BCT rotations to USAREUR
 Installations
• Funds Base Operations (95% AC/ 92% ARNG/90% USAR)
• Funds Sustainment , Restoration & Modernization (79% AC/80% ARNG/76% USAR)
 MILCON
• 32 Projects (13 AC/14 ARNG/5 USAR)
 RDA Significant Events
• Protects S&T funding to support Force 2025
• Continues Aviation Restructuring Initiative (ARI)
• Incremental Improvements
6
Cost & Economics (C&E)
Mr. Stephen Barth
7
Cost Management
Providing Army Financial Transparency
Challenges
• DOD Audit Readiness
• Visibility into Cost and Spending
• Meaningful Business Analytics for Decision Making
• Financial System Interface Errors and Rework
• Cost Tracking to Output / Outcome
Opportunity
•
•
•
Stewardship of nation’s resources
Continuous improvement
Cost informed decision making / Accountability
Progress
• Cost Culture and Cost Management (CM) Initiatives
• Army General Fund Enterprise Business System (GFEBS)
• Addressing Financial Material Weaknesses - LSS
• Army Financial Management Optimization (AFMO)
• Army Financial Benefits Reporting and Tracking (AFBRT)
• Army CM Steering Group
Army GO/SES
Cost Management (CM) Steering Group
Purpose:
To shape and inform the implementation of cost management policy, strategy,
system design and practices in alignment with Army Leadership priorities. Provide
guidance and understanding on Army enterprise level cost needs, performance
metrics, capability gaps, and recommendations required for more agile, effective,
and efficient decision making processes.
Expected Outcomes:
Successfully implement Cost Management and meet the information needs across
the Army, starting with:
• CMSG Charter review
• CMSG input on key CM information needs and strategies required to successfully support the
resource information decision making process and Army leadership priority goals and missions.
• Cost Managed Organizations Across the Army
Slide 9
Defining Cost Information
“Why & What is Needed”
Cost Information Needs:
• Cost of Readiness
• Cost of Training Readiness
• Cost of BCT
• Cost of Post Production SW Support
• Cost of IT Services and Support
• Cost of Installation Services
• Cost of Recruiting a Soldier
• Total Ownership Cost of Equipment
• Cost of Etc…
Varies by:
- Proximity – “Where you sit”
- Periodicity – “Duration”
- Purpose – “Decision”
Different Meaning by:
- Function – Budget vs Functional
- Stakeholder – “Internal vs External”
- Role – “Customer vs Provider”
Cost Terms / Definitions:
• Fixed and Variable Cost
• Funded and Unfunded
• Must Fund and Discretionary
• Direct and Indirect Cost
• Reimbursable and Direct Fund
• Overhead, G&A, Fee
• Sunk Cost
• Investment and Sustainment
• Recurring and Non-Recurring
• Etc…
Cost Management Documentation
• 4Feb15: Draft document
distributed for staffing
• Implementation Plan
Contents:
 Goals &Objectives
 Assessment Areas
(Measures of
Effectiveness)
 Implementation Plan &
Tasks
 Overview of Cost
Management Process,
Tools, and Resources
 Aligns Cost Management
and Army Financial
Management
Optimization Objectives /
Key Tasks
• 1Mar15: Draft document
• Standard Cost Model
Contents:
– Overview and usage of all
Cost Master Data objects
(e.g. Cost Centers, Orders,
WBS Elements)
– ERP Cost Planning
– Capturing Actuals (Payroll,
Labor, Non-Pay/Labor,
Depreciation)
– Performing Cost Allocations/
Cost Assignments
– Inbound cost interfaces
– Cost Reporting
• May15: Draft document
with updates for the Help
• Documenting the 43
Desk transition
Command Unique Cost Model
Documents
• SOP Contents:
• Dec 2014-May 2015
• 19 CCM Documents published
on the Cost & Performance
Portal
• Living Documents
• Reference Documents to
understand the Command’s
current cost model in multiple
ERPs
– Roles & Responsibilities
– Links to required
supporting documentation
(e.g. Faces-to-Spaces,
policies for Cost Master
Data)
– Command unique cost
model requirements
– Procedures to review &
update Cost Master Data
11
Financial Operations (FO)
Ms. Laura Jankovich
12
Audit Readiness Accomplishments to Date

November 2013: Unqualified opinion on more than 50% of real property assets, the
largest successful audit of fixed assets in the DoD.

April 2014: Completion of General Fund Statement of Budgetary Resources (SBR)
Examination at 22 installations, including DFAS.

November 2014: Unqualified opinion by DoDIG on an examination of the existence
and completeness (E&C) of General Equipment (GE) assets.

December 2014, Began audit of the Schedule of Budgetary Activity (SBA), by an
IPA, the largest external validation of the Army’s financial activity to date.

100 percent of fiscal year 2015 Army-specific appropriations are now under
independent audit.

Rigorous controls and substantive test program for SBR and Asset categories
reviewed regularly by the Vice Chief of Staff and senior tactical commanders.

Trained more than 23,000 Army personnel on audit standards and procedures
2
General Fund Audit Readiness Timeline – Way Ahead
Full Financial Statements Valuation
SBR
Q2
FY15
Q3
FY15
SBA
Financial
Reporting
Q4
FY15
Q1
FY16
Q2
FY16
SBA
FBwT
Recon
FY 2015
SBA
Audit
Continues
Q3
FY16
Q4
FY16
`
Q2
FY17
FY 2015
SBA
Audit
Report
Q4
FY17
FY 2016
SBA
Audit
Begins
FY 2016
SBA
Audit
Report
RP and
OM&S
E&C
Report
Real
Property
Assertion
Other
Balance
Sheet &
Statemen
t of Net
Cost Line
Items
Assertion
Environmental
Liabilities
Exam (DERP Only)
Q1
FY18
FY 2017
SBA
Audit
Report
FY 2017
SBA
Audit
Begins
Internal Use Software
Exam
OM&S
General
Equip
Assertion
Enviro
Liabilities
Assertion
(DERP
Only)
Q3
FY17
FBwT Exam
Internal
Use
Software
Assertion
RP and
OM&S
E&C
Exam
Q1
FY17
Real Property
Exam
OM&S
General Equipment
Exam
FY 2018
GF Full
Financial
Statemen
t
Audit
Begins
Other Balance Sheet
& Statement of Net
Cost Line Items
Exam
Enviro
Liabilitie
s
Assertion
(Remaining)
Enviro
Liabilities
Exam
(Remaining)
“Assertion” means Army is ready to be audited
SBR: Statement of Budgetary Resources SBA: Schedule of Budgetary Activity E&C: Existence & Completeness
FBwT: Fund Balance with Treasury OM&S: Operating Materials & Supplies
DERP: Defense Environmental Restoration Program
Complete
Underway
3
Army ADA Root Causes – Cases Closed in FY14
23 ADA Investigations Completed in FY14
Common Root Causes
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•
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•
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Using O&M for significant system modifications
Prohibited purchases
Use of Army funding to support non-DoD missions
Project splitting
Exceeding Military Construction thresholds
Improper work classification
Unlimited indemnification clauses in contracts
Augmentation of appropriated funds
Relocatable buildings
4
Army Business Initiative for Travel Efficiencies

Savings Opportunities
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






increased use of restricted fare air tickets
minimizing centrally billed government travel accounts
reducing manned air ticket offices
reducing the number of credit cards being declined at ticketing
increasing use of the government travel card
dining pilot
lodging pilot
tax exemption
5
Financial Information
Management (FIM)
COL John Vogel
17
Enterprise Resource Planning (ERP) Systems
GFEBS
• Fully deployed
• Consolidates Army General Fund (GF)
data for management and audit
• Beginning development
• Includes secure capabilities
• Will interface with GFEBS
• Deploying worldwide by 2017
• Source of supply, maintenance
and property book transactions
• Leverages GFEBS financial
template
• Interfaces with GFEBS for GF
execution
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•
•
•
Fielding ~ 2019
Will provide military pay capability
Will be source of pay transactions
Will interface with GFEBS to trigger
GF posting
• Fully deployed to depots & PEOs
• Enables some GF Procure-to-Pay
and Asset Accounting processes
• Interfaces with GFEBS to trigger
GF posting
Legend:
• Logistics Modernization Program (LMP)
• Global Combat Support System-Army (GCSS-A)
• Integrated Personnel & Pay System-Army (IPPS-A)
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Where We Are With GFEBS
Where we are with GFEBS
 GFEBS (Main)
o Military Personnel/Expenditure Reporting for Active, Army National
Guard & Army Reserve
o SPS Pre-Contract Award Interface
o HQIIS and Real Property Inventory Management (RPIM) compliance
updates
o SFIS 10 and DDRS Enhancements
o DCAS Interface and Auto-Recycle Program enhancements to reduce
unmatched transactions
o Tie Point and IDOC reporting in BI
o Architecture in BI to support future Real Property reporting
 GFEBS-SA
o Supporting Business Process Design (BPD) and Functional Design (FD)
documents
o Assessing unique business processes that affect the sensitive activity
workforce
o Conducting functional process familiarization workshops at commands
to advance understanding and prepare for later training
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Where We Are Going With GFEBS
• Where we are going with GFEBS
– GFEBS (Main):
o Prioritizing enhancements for “Increment II”
o Financial statement preparation and automated reconciliation in BI
o Extension of Business Intelligence technical infrastructure to enable:
 Cross-system Army-wide & Defense-wide financial data
Consolidation
 Data refreshes multiple times in a single day to support users in all
time zones
 Faster query response times
 Complex analysis and research of distantly related data sets
 Example: Tank miles driven compared to equipment
maintenance costs
 Example: Asset information compared to general ledger
postings
– GFEBS-SA:
o Go-live limited to INSCOM and related DFAS organizations 3QFY16
o Full Go-live 1QFY17
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OPR: DASA FIM
LOE 1: Maximize Financial System Domain/ ERPs Capability
OPR: DASA FO
LOE 2: Standardize Business Practice and Processes
LOE 3: Transformation/Pilot
OPR: USAFMCOM
LOE 3a: USAFMCOM Transformation
OPR: USAFMCOM
LOE 3b: FMSOC Transformation
OPR: CMD G8/OA
LOE 3c: OA Transformation
OPR: PROPONENCY/AFMS
LOE 4: Fully Trained & Certified Workforce
OPR: DASA FO
LOE 5: Financial Improvement Plan
OPR: DASA CE
LOE 6: Establish Army Cost Framework
OPR: AFMO TF
LOE 7: Strategic Communications
Transformation Maturity
AFMS
HQDA
DFAS
Commands
FMSOC
USAFMCOM
PROPONENCY
DASA-FO
DASA-CE
ABO
DASA-FIM/
AFMO TF
Army Financial Management Optimization
(AFMO) Lines of Effort
ENDSTATE
(AFMO Goals &
Objectives)
-Enhance
Auditability
-Leverage Financial
System Domain/
ERPs
-Optimize
Workforce
-Sustain readiness
in FM units
-Minimize
redundant
capabilities
-Right-Size the
Workforce
-Develop Training
and Certification
-Reduce cost of
FM operations
-Better Analysis for
Decision Making
21
Comptroller Proponency (PO)
Ms. Ivonne Reid-Borland
22
Enterprise Talent Management (ETM)

Civilian Education System (Constructive credit may be granted ilo course
completion based on assignment history/past academics. TRADOC assesses and
G3/5/7 has final approval authority)

DOD FM Certification / CDFM

Recognize and promote Senior Enterprise Talent Management (SETM) and ETM
and take a personal interest in selection of SETM and ETM candidates and
nominate only the best candidates

Participate on selection and placement boards for Talent Management candidates

Provide and protect resources for Civilian Talent Management

Provide developmental opportunities for SETM and ETM candidates

Assess and provide feedback on Talent Management Programs

Be willing to serve as mentors to SETM and ETM participants

Recognize, profile and incentivize those candidates selected by the HQDA Civilian
Talent Management Board
23
DoD FM Certification Program Update
2,000
1,500
1,000
Major Command Status
1,642
1,616
1,397
989
699
500
1,001
908
355
477
Implementation
Through 30 Mar
15
1,555
1,305
478
USAR 2,292
1,305 Launched
ARNG 1,848
1,555 Launched
0
14,000
Mitigation Actions
12,422
12,422
- Educate/Train Leaders
12,000
- Monthly Training (Fewer
10,000
Rejections)
Total Certifications
- Communicate via MilSuite 8,000
a/o 25 Feb 15: 375
- Provide Course Listings
7,741
7,741
FMs
6,000
(CL 1,2 and 3)
- Develop and publish
4,000
updated FM Certification
2,000
Information
11
0
CY 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
Launched Cum
7,741 9,677 10,499 12,422 12,422 12,422 12,422 12,422 12,422 12,422 12,422 12,422
Certified Target Cum 0
0
300
900 2,268 3,636 5,004 6,372 7,741 9,677 10,499 12,422
Certified Actual Cum
11
64
201
375
375
375
375
375
375
375
375
375
As of 01 July 2014, all persons must be certified within 2 years from launch.
Requires that the 30 Jun 14 Cum Total 7,741 persons launched be certified by 30 Jun
16.
24
Questions/Discussion
ASMC National Capital Region: Professional Development Institute
Speed Mentoring
Polaris Room 16:30
EDUCATION
TRAINING
PROFESSIONAL DEVELOPMENT26