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CDFM MODULE 2: Competency 1
Terms in this set (376)
Deputy Secretary of Defense
Who is delegated full power and authority to act for the SECDEF and to exercise the powers of the SECDEF on any an all matters for which the SECDEF is authorized to act pursuant to law?
To provide military forces needed to DETER WAR and to PROTECT the SECURITY of our country
What is the DoD Mission?
National Security Act of 1947
What was most basic reorganization of Defense activities since Congress created the Navy Department in 1798?
National Security Act of 1947
What act established the National Security Council, the Central Intelligence Agency, a civilian Secretary of Defense, the Office of the Secretary of Defense (OSD), and the Joint Chiefs of Staff?
What year did Congress amend the National Security Act and create the Department of Defense, consolidating the three military departments under the Secretary's direct control and making the Secretary of Defense the only military rep on the President's cabinet?
Who is the principle Defense advisor to the President?
Goldwater Nichols DoD Reorganization Act of 1986
This ACT identified the Chairman of the JCS as the senior ranking member of the armed forces.
Chairman of the JCS
Who is the principal military advisor to the President, the National Security Council and the SECDEF?
Chairman of the JCS
Who advises the SECDEF on non-financial related matters such as:
-Critical deficiencies and strengths of the forces
-priorities of the requirements identified by commanders of the combatant command
-Defense acquisition programs
VICE CHAIRMAN OF THE JOINT CHIEFS
Who performs duties assigned by the Chairman with the approval of the SECDEF; Acts as Chairman of the Joint Requirements Oversight Council (JROC)?
CIVILIAN CONTROL OF THE MILITARY
The ________ chain of command runs from the President to the SECDEF to the commanders of the Combatant Commands?
Chairman of the JCS
CIVILIAN CONTROL OF THE MILITARY
The _____ functions within the chain of command by transmitting to the commanders of the Combatant Commands the orders of the President or the SECDEF?
National Security Council (NSC)
The President's principal forum for considering national security and foreign policy matter with the senior national security advisors and cabinet officials.
Chairman of the JCS and Director of National Intelligence
Who are the Statutory Advisors of the NSC?
Secretary of the State
Secretary of Energy
Who are the standing principal members of the NSC?
-Secretary of the Treasury
-Assistant to the President for National Security Affairs
-Chief of Staff to the President
-Counsel to the President
-Rep of the USA to the United Nations
-Secretary of Homeland Security
-Other Cabinet and Selected Gov Officials at the PRES request
Who are the standing Participants on the NSC?
P - Principals
NSC is composed of...
National Security Strategy (NSS)
The ______ emerges from the National Security Council.
The _______ sets forth the posture of United States; global and regional trends; and the US political, economic and defense strategies.
QUADRENNIAL DEFENSE REVIEW
WHAT IS PREPARED EVERY FOUR YEARS FOLLOWING A PRESIDENTIAL ELECTION TO SUMMARIZE THE MILITARY GOALS, OBJECTIVES AND STRATEGY FOR THE COMING FOUR YEARS?
Doc from Pres; provides SECDEF strategic guidance in response to the Pres strategic direction to the Department for the 21st century.
What is the Defense Strategic Guidance?
National Military Strategy (NMS)
What is developed by the Chairman of the JCS to address objectives in the DoD Strategic Plan that require a military response?
Strategy for Homeland Defense and Civil Support (SHD&CS)
Is prepared by the SECDEF to focus on demands on the DOD concerning direct threats to the US and support of civil authorities?
What's the process used by DoD to acquire, allocate, account for, and analyze personnel and financial resources?
The process DoD uses to determine the dollar amounts for programs to be submitted to Congress as part of the President's budget?
Formulates a one-year budget and a four-year program plan. Also, decides what programs will be funded and how much of the total funds available will be spent on each program.
The PPBE Process
The ultimate objective of this process is to provide the entire defense department with the most effective mix of forces, equipment, manpower and support attainable within fiscal constraints of the federal government.
T/F? The Secretary and the Deputy SECDEF, assisted by OSD staff, exercise centralized control of Executive policy direction of the PPBE process.
JCS and Combatant Commanders
Both the __________ and ________ play a major part in the planning phase of PPBE?
-ADVISE the SECDEF on all PPBE matters
-Function as a JOINT WARFIGHTER ADVOCATE in all PPBE phases
-PRIORITIZE Requirements within warfare capability areas
Subject to the authority of the President and SECDEF, the Chairman of the JCS shall, with regard to financial management responsibilities:
DoD 7045.14 "The Planning, Programming, Budgeting, and Execution (PPBE) Process"
Heads of the DoD Components shall develop and execute the programs and budgets necessary to achieve national objectives in accordance with?
Who is the principal adviser and assistant to the SECDEF for budgetary and fiscal matters?
Who has oversight responsibility for the DFAS and the Defense Contract Audit Agency (DCAA)
Under Secretary of Defense for Policy (USD(P))
Who conducts and coordinates the planning phase of the PPBE process, lead DoD-wide efforts for the QDR, and review defense planning scenarios/short falls?
Director, Cost Assessment and Program Evaluation (D,CAPE)
1. Prepares and publishes the: DoD fiscal guidance; DoD programming guidance; Programmatic decision documents in coordination with the USD(C)/CFO; and the FYDP
2. Program Reviews
3. Provide independent analysis to SECDEF and DEPSECDEF
4. Lead analytical efforts in support of QDR
D,CAPE conducts cost assessment and program evaluation; while USD(C) handles all financial matters and presents the DoD budget to Congress
What's the difference between D,CAPE vs. USD(C)
Joint Capabilities Integration and Development System (JCIDS)
What is a systematic method established by the JCS to assess gaps in military joint war fighting capabilities and to recommend solutions to resolve these gaps?
Fiscally constrained programmatic guidance to accomplish National Defense Strategy and incorporate DoD Goals from the Quadrennial Defense Review (QDR)
The SECDEF Planning Process aims to achieve what? (add pic from page 2.1.34)
1) Defense Planning Guidance
2) Strategic Portfolios Reviews
What are the TWO KEY Elements in the SECDEF planning process?
Defense Planning Guidance
Contains fiscally constrained programmatic guidance for use by Military Departments and Agencies in developing the POM and BES. Additionally, it contains SPECIFIC GUIDANCE and performance measures to be used in evaluating execution of the programmatic guidance.
T/F? Strategic Portfolios Reviews aims to enable Defense officials to look across service portfolios of weapon systems to identify redundancies and capability gaps.
Defense Planning Guidance (DPG)
What is the final document of the PPBE "planning" phase?
Promulgates Defense policy, strategy, force planning, resource planning, and fiscal guidance?
The POMs and BES are to be prepared on the basis of what guidance, and the integrated program/budget review in the fall of the year examines the extent to which this guidance is being accomplished?
1.5 years before fiscal year start
When does the planning phase in the PPBE begin?
Joint Strategic Planning
What examines global security situation, develops national military strategy to achieve national security objectives and sets related force req; prepares strategy and contingency plans, prepares supporting joint logistics & mobility plans, and conducts capability assessments?
T/F? The Chairman JCS represents the Combatant Commanders' concerns at all stages in the PPBE process, DPG, and Program/Budget Review process at OSD
Integrated Priority List
List that contains the following:
1. Combatant Commanders high priority needs
2. Prioritized across service and functional lines
3. Provides visibility for key problem areas requiring DOD attention
SECDEF, CJCS, and Military Departments
The Integrated Priority List (IPL) is submitted to whom?
It's an OSD decision making forum co-chaired by D,CAPE, USD(C), and the Joint Staff (8).
-Name derives from the 3 Star Program directors of the military depart.
-ISSUES ARE ADDRESSED by this group and recommendations made to the DEP SEC Resources Management Decision.
-ISSUES NOT RESOLVED, briefed to Deputy SECDEF in his capacity as chairman of the Deputy's Management Action Group (DMAG)
What is the 3 Star Program Review Group
Deputy's Management Action Group (DMAG)
The DEPSECDEF chairs issue meetings to address: 1. All common management issues, including those related to the approval of the FIVE-YEAR program and the annual budget
2. Decisions in this meeting are reflected in the RESOURCE MANAGEMENT DECISIONS.
PPBE PHASE: PROGRAMMING
Note: The military departments and Defense Agencies use the POM to submit a balance allocation of resources within specified CONSTRAINTS.
This phase translate planning decisions, OSD programming guidance and congressional guidance into comprehensive and detailed allocation of forces, manpower, and funds.
Future Years Defense Program (one of the most vital components of PPBE)
An automated database that summarizes all forces, resources, and equipment associated with programs approved by the SECDEF
-Prior year, current year, a budget year, and the following 4 years for resources and forces, and 3 more years of force structure (total of 10 years)
-Forces, manpower, and total obligation authority
FYDP consist of what?
Joint Staff during the Chairman's Program Assessment (CPA).
-The CPA reports the results of the review to SECDEF prior to the decisions in the Resource Management Decision (RMD) Document
Who checks the balance and capabilities of composite force and support levels recommended by service POMs?
RESOURCE MANAGEMENT DECISIONS (RMDs)
What is the final decision document in the Program Review process?
The issuance of RMDs addressing programming issues completes what phase of PPBE?
The translation of the program into an appropriations format as required by Congress.
(PPBE Phase: Budgeting)
The final phase of the preparation of the President's budget, budget development, is what?
Where does the translation into the appropriation format takes place?
When does USD(C) and D,CAPE send an Integrated Program/Budget Review Guidance document that provides a detailed schedule?
T/F? DoD FMR 7000.14R, Volume 2A, Chapter 1 has details on BUDGET ESTIMATES and Restrictions on submitting additional budget estimates.
Budget Formulation and Presentation
FMR Volume 2a & Volume 2b?
The BES and POM from each Component are submitted __________ to OSD?
"Fall Review" (all procurements account of the military service"
OSD/OMB Budget Review is also know as the what review?
Conducted by USD (C) as the DOD position on that particular program and becomes part of the Defense portion of the President's Budget subject to any subsequent action by the SECDEF or President.
The decisions reflected in the RMD are then recorded in the Comptroller Information System (CIS) in the proper appropriation account format by who?
Comptroller Information System (CIS)
What is the official OSD record of the budget estimates?
What is submitted by the DOD components and adjusted by SECDEF decision through Resource Management Decisions (RMDs)?
Budget Issue Resolution
Near the end of the budget review process (usually late December), the SECDEF or DEPSECDEF uses this forum that could potentially allow for reconsideration of a Component's major policy or budget issue.
Budget Issue Resolution (conducted at discretion of SECDEF)
What occurs after the OSD/OMB budget review?
Who represents concerns of the Combatant Commanders during the OSD/OMB budget review and during discussion of major budget issue with the SECDEF or Deputy SECDEF?
Research, Development, and Acquisition (RDA Plan)
What continuous process focuses on a 14-year planning horizon (five budget & POM years plus a nine-year Extended planning period).
USD(AT&L); VCJCS (Chair of JROC)
Who is the Chairman for the Defense Acquisition Board? Vice Chairman?
Defense Acquisition Board (DAB)
DOD's senior-level forum for admission to the USD(AT&L) on critical decisions regarding Major Defense Acquisition Programs (ACAT 1D programs).
Oversees defense system acquisitions; assures programs meet performance requirements; and DAB and JROC help link the acquisition process to PPBE?
Who Chairs the JROC?
Joint Requirements Oversight Council (JROC)
Helps explores new alternatives for assessing joint military war fighting capabilities and requirements; helps DAB and USD(AT&L) articulate military needs and validate performance goals and program baselines?
KEY OFFICIALS AND ORGANIZATIONS OF PPBE
IPL, DPG, POM, ISSUE BOOKS, RMD, BES, FYDP, CIS, & Pres Budget
Key Documents of PPBE
1974 Congressional Budget Act
Act requires the President to submit the annual budget request to Congress no later than the first Monday in Feb, which is almost 8 months prior to the target fiscal year that will begin the following October.
T/F? The annual enactment process is the method by which Congress evaluates the President's recommended funding to operate the entire Federal Government for the upcoming fiscal year?
What is one of the FIRST Congressional actions, relative to the President's Budget, that is taken by the Congressional Budget Office?
1) House and Senate Budget Committee
2) HASC and SASC
3) House and Senate Appropriation Committee
Any of these committees could and usually do hold hearings at which Executive Branch may be asked to testify.
Congressional Committee is composed of who?
Concurrent Budget Resolution action
House and Senate Budget Committee is responsible for what during the Congressional Enactment Process?
DEFENSE AUTHORIZATION BILL
HASC and SASC is responsible for what during the Congressional Enactment Process?
12 appropriation bills
House and Senate Appropriation Committees is responsible for what during the Congressional Enactment Process?
Concurrent Budget Resolution
The ____________ is not present to the President for action and is not a law; it is simply an agreement of both Congressional chambers as to the estimated revenue and projected maximum amount of new budget authority to be appropriated.
The bill becomes a law which provides a new budget authority that becomes available to the organizations identified in the act.
When the Defense Authorization Bill is signed by the President this new budget authority is considered what?
MILPERS; O&M; RDT&E; Procurement; MILCON
Note ( Shipbuilding and Conversion Navy (SCN) is a procurement amount)
What are the different types of DoD appropriations categories?
MILPERS; An expense type; available 1 year
Focus on the COST of SALARIES and COMPENSATION for ACTIVE MILPERS and the National Guard, as BASED on END STRENGTH.
between; need permission by congress
Operation and Maintenance (O&M); available for 1 year
Minor construction = $750K
An EXPENSE type appropriation that include HQ operations, civilian salaries and awards, travel, fuel, minor construction projects, expenses on military forces, training and education, recruiting, depot maintenance, industrial fund and stock fund support, and base ops.
An EXPENSE and INVESTMENT type appropriation that is available for 2 years?
Procurement; available for 3 years (5 years for SCN)
An INVESTMENT type appropriation that includes SCN, Aircraft Procurement Air Force, Missile Procurement Army, and other procurement Navy, Procurement of Ammunition Army, and Procurement Marines Corps.
MILCON; available for 5 years
An INVESTMENT type appropriation that receives considerable attention from Congress; identified as one of the 12 appropriations bill;
Threshold for Expense? Investment?
1) Expense - cost incurred to operate and maintain the organization, such as personal services, supplies and utilities.
2) Investment - costs that result in the acquisition of, or an addition to, end items. (real property, personal property, weapon systems, and IT)
What are the two types of Funding Policies?
O&M and MILPERS are considered what type of appropriations?
Procurement is considered what type of appropriations?
__________ appropriations is covered by both expenses and investments.
Three: expense, investments & RDT&E, therefore has three funding policies.
DoD has how many types of appropriations?
Incremental Funding Policy
"only those funds required for work in a given fiscal year shall be included in the RDT&E budget request for that fiscal year for most classes of effort. "
The rule governing budgeting of RDT&E funds is the?
Full Funding Policy (12 month period)
"all funds required to complete the delivery of each buy will be included in the budget request for the year of the planned contract award, regardless of the date the contracted items will be delivered."
The rule governing the computation of estimates for procurement and military construction appropriations is called?
Funds to procure certain components, material, or effort in advance of the end item buy, to preclude serious and costly fluctuation in program continuity?
1) to maintain critical skills that would otherwise be lost between Engineering and Manufacturing Development (EMD) and Full-Rate Production; and/or
2) to protect the schedule by providing necessary components at the right time for incorporation into the production of the weapon system, i.e to prevent a slowdown or break in production
Advance procurement may be used:
False; it is budgeted separately.
T/F? Advance procurement funds for a system are NOT budgeted as a separate procurement line item from the related end item?
Multiyear Procurement; funded annually
a single contract, usually up to a maximum of five years, without having the obligation authority for the full five years at the time of contract signing.
What (authority) is used during the process of planning and ultimate contract issue, by which the government may contract for the purchase of supplies or services for more than one, but normally not more than five program years?
Since the funding of EOQ subsystem purchases associated with a MYP is funded as advance procurement, it falls under the advance procurement exception to the full funding principle.
Economic Order Quantity (Associated with Multiyear Procurement - MYP)
Appropriation Life Cycle Table
1) Current - incurring new obligations, adjustments, expenditures, proper accounting entries, etc..(number of years appropriation remains current is set forth in the appropriation bill signed into law by the president. Periods can be 1, 2, 3, 4 or 5 years, depending on the specific of the appropriations
2) Expire - No new obligational actions; there may be adjustments (either up or down) to existing obligations that were made during the period of that appropriation's "current" status.
3) Cancelled - appropriation is closed and is not available for any purpose other than making proper accounting entries to maintain the records for auditing purposes.
State the three stages of the appropriation cycles per Title 31 USC 1552 & 1553
2. Military Interdepartmental Purchase Request (MIPR) [DD FORM 448] that consist of: (1) Project Orders (2) Economy Act Orders
Common Obligation Documents
Use only currently available funds to pay canceled or closed accounts.
- unexpended balance of the closed appropriation; or
-1% of the total appropriation account being charged for the adjustment or payment
What adjustments can be made during a cancelled appropriation life cycle?
DD FORM 448
What DD Form is the Military Interdepartmental Purchase Request (MIPR)?
Contract (governed by the Federal Acquisition Regulation (FAR)
The most common type of obligating document?
Military Interdepartmental Purchase Requests (MIPRS)
(When used internally with DoD, it could be as a "direct citation" or reimbursable order" and as a "project order" or an "economy act order".
Used by a DoD activity (the "requesting agency") to place an order for supplies or non-personal services with a "performing agency" that could be another DoD activity or a non-DoD Federal activity willing to accept such an order?
The performing agency awards a contract on behalf of the requesting agency and uses the appropriation fund cite provided by the requesting agency on the MIPR. The direct citation order is recorded as an obligation by the requesting agency when it is notified in writing that the performing agency has awarded the contract or when a copy of the contract is received.
The performing agency accepts funds provided by the MIPR into its own DoD appropriation or business operations fund. Funds are normally considered obligated when the performing agency accepts and returns the signed MIPR to the requesting agency.
-Used to order work or services from another DoD entity for effort that extends beyond the fiscal year for maintenance or production.
- When accepted in writing by performing activity, amount is record as an obligation.
-No de-obligation of the order the unexecuted portion when the cited appropriation expires
-Titel 41, U.S. Code, Section 6307
-FMR, Volume11A, Chapter 2
Contingent Liabilities Under Outstanding Contracts
Amounts carried on the following contingent liabilities must be carried as an outstanding commitment until obligation is determined:
-Outstanding fixed-price contracts
-Interest due from government
Can only be between DoD activities
Work citing expiring funds must commence by 1 January of the next calendar and 51% of work must be "in-house".
Economy Act Order
-Intragovernment order that does not qualify as a project order.
-An order that will produce a useful service or item (goods) by the end of the fiscal year.
-Unexecuted portion of the order must be deobligated when the cited appropriation expires.
-Title 31, USC, Section 1535
FMR, Volume 11A, Chapter 3
Yes; must meet the following criteria:
-Bona fide need still exists
-same or lesser scope of work
-Replacement contract awarded in a timely manner
(even in expired status, same year funds may be used if above criteria are met)
Can the government obligate the same year funds previously obligated for a replacement contract for amount less, same or greater than originally obligated when the contractor defaults before completing the terms of the contract?
-Government may NOT use funds previously obligated on terminated contract if those funds are expired or cancelled.
-Government must retain sufficient funds on terminated contract to meet settlement cost estimated to be owed to contractor
Situation: Government contracting officer terminates contract before contractor completes terms of contract. What happens to the funds obligated for this contract?
When a "notice of termination" is provided to the contractor for the CONVENIENCE of the gov, the obligated recorded for the contract or agreement must be ____________ to an amount sufficient to meet the settlement cost under the termination?
Foreign Currency Fluctuations = (absorbed in the Working Capital Fund)
(maintained at OSD level)
(adjusted only when disbursements are made from the appropriation account involved)
(any adjustments at the time of payment shall be supplemented with further adjustments made at year-end.)
What was established to eliminate losses or gains to programs caused by fluctuation of specified foreign currency exchange rates?
RDT&E: $10M or 20%
Procurement: $20M or 20%
MILCON: $2M or 25%
requires Congressional notification to exceed these levels
What are the Below Threshold Reprograming levels by appropriation?
Project orders are considered severable or non-severable?
Economy act orders are considered severable or non-severable?
CATEGORY A - MISSION SUSTAINING PROGRAMS
Programs in this category have virtually no capacity for the generation of non-appropriated revenues. Receives 100% Appropriated Funding (APF).
What is the Goal of Working Capital Funds?
Stock Funds & Industrial Funds
What two funds make up WCF Revolving Funds?
-Identification of outputs
-Establishment of cost accounting
-Identification of customers
-Evaluation of buyer-seller advantage and disadvantage
DWCF four inclusion criteria
Minimum days of operational funds for DWCF?
Table 2.1.4 Recording Refunds Received
Un- apportioned appropriations
Un- allotted apportionments
Un- obligated allotments
Un- paid obligations
Status/Availability of Funds "UNLIST"
funds appropriated but not yet apportioned by OMB
Funds apportioned by OMB but not yet allotted by DoD
Funds allotted by DoD but not yet obligated
Category B - Community Support Programs
(automative skill development, youth activities, cdc, outdoor recreation, etc.)
approximately 65% APF & 35% NAF support.
Has the ability to generate revenues; is not self sustained without APF & NAF assistance.
Category C - Revenue Generating Programs
0% APF; 100%NAF
Activities in this group has business capability of generating enough income to cover most of their operating expenses, but they lack the ability to sustain themselves based purely on their activity.
Budget Formulation and Presentation (a x b= c) "formulation"
2.1.3: FMR Vol 2a&b
Gen FM, systems and Requirements
2.1.3: FMR Vol 1 is?
2.1.3: FMR Vol 3
2.1.3: FMR Vol 11a
Prep and Submission of Budget Estimates (BESs)
2.1.3: OMB Circ A-11
2.1.3: OMB Circ A-76
Management and Accountability Act
2.1.3: OMB Circ A-123
Major Systems Acquisition
2.1.3: OMB Circ A-109
Financial Management Systems
2.1.3: OMB Circ A-127
Guidance for Manpower Programs
2.1.4: DoDD 1100.4
2.1.4: DoDI 70457.7
Plan, Program, Budget
What are the three major elements of PPBE?
What is the automated database that summarizes all forces, resources, and equipment associated with programs approved by the SECDEF?
How frequently is DoD funding reviewed?
Budgeting or Budget Development
What is the final phase of the PPBE process where program decisions are translated into resources in an appropriations format?
To assess the balance and capabilities of composite force and support levels recommended in service POMs
2.1.5: What is the purpose of the CJCS program assessment - CPA?
What financial control document is issued after the Pres signs appropriation?
What is it called when the Pres postpones use of appropriated funds? Cancels?
Enhance economy and productivity, keep inherently governmental activities in-house, rely on the commercial sector
What are the three objectives of OMB Circ. A-76?
What must be done with unused funds at expiration of appropriation for Economy Act Orders?
Provide COCOMS with the best allocation of forces, equipment, and support within resource constraints
What is the ultimate objective of PPBE?
By law, who does SECDEF submit the QDR to?
Is the DPG fiscally constrained?
Who writes POMs?
What completes the Programming Phase?
Chairman's Program Assessment; surveys and assesses the recommendations of Service POMs
What is the CPA?
Soc. Security @ ~21% (DoD = 18%; Medicare 13%; FED GOV = 16%)
Which program consumes the most of the Pres. Budget?
Annually, w/in 10 days after Pres. Signs Appropriation, SF-132
How often and when does OSD submit what to OMB for funds?
T/F?: OSD must request apportionment under CRs.
President must report all deferrals to Congress.
President need not request rescissions?
Congress has how many days to act on Presidential proposal for rescission?
What happens if Congress does not act on rescission proposal?
What absorb foreign currency fluctuations to avoid ADAs and shortfalls?
Expenses of operational military forces and depot maintenance are?
MILCON is what type of account?
Working Capital Funds
What are funds earned by charging customers for the goods and services provided?
Stock Funds - dealt with procuring material in volume from commercial sources and holding it in inventory.
Industrial Funds - funds that provided industrial and commercial goods and services, such as depot maintenance, transportation, and research development.
Revolving fund activities evolved from two distinct categories:
the type of assets each holds:
Supply management = major asset is INVENTORY HELD FOR RESALE
Non-Supply management (industrial) - major asset is WORK-IN-PROCESS (partially done for customers, but not yet ready to be delivered and billed).
What's the difference between the supply management and the non-supply management (industrial) WCF activities?
The resources used to commence or increase the size of a working capital fund
The corpus of the revolving fund
Stabilizing their billing rates for the entire FY.
(GOAL IS TO BREAK EVEN)
What is the most significant challenge of DWCF activities?
T/F? DWCFs are subject to the Antideficiency Act provisions just are other Defense agencies?
T or F: There's no appropriation for day to day operations of the Working Capital Funds. Although, an "Apportionment and Reapportionment Schedule" is required to be submitted to OMB for approval of the amount of obligation authority needed of the operation of the WCF for a fiscal period.
OMB Circular A-11
What OMB guidance establishes procedures for recording REFUNDS?
-Restrict obligations or outlays against each appropriation or fund to the amount of the apportionments of such appropriation or fund;
-Enable the agency head to fix responsibility for the creation of any obligation or the making of any outlay in excess of an apportionment or reapportionment.
2.1.81 Title ____, USC 1514 requires each agency to have a system of administrative control to:
Funds obligated but not yet paid
Funds obligated and paid
That portion of the total appropriation no longer available for new obligations
NAF are monies that are not appropriated by Congress. NAF come primarily from the sale of goods, and services to DoD military and civilian personnel and their family members and are used to support MWR.
Non-Appropriated Funds (NAF)
2+5 = 7)
Unexecuted, whether obligated or not, balances are sent back to treasury and the account is cancelled
What happens to closed accounts?
Agencies w/in DoD may do work for other agencies or DoD organizations only if the goods or services cannot be acquired as conveniently or cheaply as a vendor.
contract (rather than MOU, etc.)
Agreements with non-profs or other government agencies except National Guard that involve reimbursement must be executed with what?
Agreements with other government orgs. for the use of gov property may be executed through?
MWR, Billeting, Exchanges, Fisher Houses, Stars and Stripes, Chapels
What are 6 Non-Appropriated funds?
NAF are separate and apart from the funds recorded in the books of treasury?
Identification of Outputs, Cost accounting system, Identify customers, buyer-seller adv/disadv
What 4 criteria are used to evaluate an activity for inclusion into a DWCF?
OMB Circular A-76; enhances competition (economy, quality, and productivity)
What OMB Circular deals with Commercial Activities?
OMB Circ. A-11
The ___ establishes procedures for recording refunds.
record the refund as an off-setting collection
If you receive a refund against a prior year obligation that is still available, you...?
adjust the obligations and outlays of the expired account
If you receive a refund against a prior year obligation that is expired but not cancelled you...?
41 USC 6301 Authorization requirement
Food and Forage Act
to provide the military forces needed to deter war and to protect the security of our country.
The mission of the DoD
three military departments (Army, Navy and Air Force), 16 Defense Agencies and a number of field activities
Reporting to the Secretary of Defense (SECDEF) are
organizing, staffing, training, equipping, and sustaining military forces.
The military departments are responsible for
Office of Management and Budget
A key DoD principle
Under Secretary of Defense (Comptroller) (USD (C)) who acts as the Chief Financial Advisor (CFO) of Defense
act as resource consultant and advisor to the Secretary of Defense, as well as manager an arbiter of the Defense resource management process.
Chief Financial Officer (CFO)
September 18, 1947
The Air Force was created on
the most basic reorganization of Defense activities since Congress created the Navy Department in 1798.
The National Security Act of 1947
the National Security Council, the Central Intelligence Agency, a civilian Secretary of Defense, the Office of the Secretary of Defense (OSD) and the Joint Chief of Staff.
What did the National Security Act of 1947 establish
is the principle Defense policy advisor to the President and is responsible for the formulation of general Defense policy and policy related to all matters of direct primary concern to the DoD, and for the execution of approved policy.
responsible for providing the military forces needed to deter war and protect the security of our country.
The Department of Defense
consisting of about 1.423 million men and women on active duty. There are 847,100 members of the selected reserve to back these forces. In addition, there are about 785,800 civilian employees in DoD.
As of April 2012, the major elements of our forces are the Army, Navy, Marine Corps and Air Force
the 17 Defense Agencies.
Under the Organization of the DoD, the Defense Contract Audit Agency and the Defense Finance and Accounting Service are under
The staff of the Secretary of Defense (SECDEF) and Deputy Secretary of Defense (DEPSECDEF) is referred to as the
Office of the Secretary of Defense (OSD)
Chairman of the JCS as the senior ranking member of the Armed Forces.
The Goldwater-Nichols DoD Reorganization Act of 1986 identifies the
principal military advisor to the President, the National Security Council (NSC), and the SECDEF.
The Chairman of the JCS is the
Critical deficiencies and strengths in force capabilities (including manpower, logistics, and mobility support) and the priorities of the requirements identified by the commanders of the combatant commands and the extent to which program recommendations and budget proposals of the military departments.
The Chairman advises the SECDEF on the following non-financial related matters:
perform duties assigned by the Chairman with the approval of the SECDEF
The Vice Chairman of the Joint Chiefs
is headed by a director who is an officer selected by the Chairman in consultation with the other members of the JCS, and approved by the SECDEF.
The joint staff under the Chairman of the JCS
All military forces are assigned under the jurisdiction of a Combatant Command to perform assigned operational missions.
the President to the SECDEF to the commanders of the Combatant Commands.
The operational chain of command runs from
of the President or the SECDEF to the commanders of the Combatant Commands.
The Chairman of the JCS functions within the chain of command by transmitting the orders
is the President's principal forum for considering national security and foreign policy matters with the senior national security advisors and cabinet officials.
The National Security Council
President of the United States (Chairman), Vice President, Secretary of Defense, Secretary of State, Secretary of Energy.
The standing principal members of the National Security Council include
emerges from the National Security Council.
The National Security Strategy (NSS)
the National Security Presidential Directives.
Decisions from the National Security Council discussions are documented as
is prepared every four years following a Presidential election to summarize the military goals, objectives, and strategy for the coming four years.
A Quadrennial Defense Review (QDR)
in February of the second year of a presidential administration.
The QDR is required by law to be submitted to Congress
"Sustaining U.S. Global Leadership: Priorities for 21st Century Defense"
In early January 2012, DoD released a document titled
strategic guidance in response to the President's strategic direction to the Department for the 21st Century.
The document titled "Sustaining U.S. Global Leadership: Priorities for 21st Century Defense" provides the SECDEF
civilian leadership guidance to achieve national security.
The document titles "Sustaining U.S. Global Leadership: Priorities for 21st Century Defense" provides the DoD
is developed by the Chairman of the JCS (CJCS) to address objectives in the DoD Strategic Plan that require a military response.
The National Military Strategy (NMS)
recommends the National Military Strategy, which contains recommended national military objectives; recommended fiscally constrained force levels; military strategy and force options; and a risk assessment of the recommended strategy, forces and military options.
represents the CJCS plan to accomplish the direction and goals contained in the National Security Strategy and the DoD Strategic Plan.
The recommendations of the National Military Strategy by the CJCS,
Planning, Programming, Budgeting and Execution (PPBE) process.
Once of the primary tools for Defense Resource management is
Articulates its strategy to support the Presidents larger National Security Strategy (NSS) and identifies the forces (equipment, basing, personnel) necessary to execute its strategy.
During the PPBE process, the DoD
formulates a one year budget and four year program plan.
During the PPBE, the DoD
decides what programs will be funded and how much of the total funds available will be spent on each program.
During the PPBE process, DoD
to provide the entire Defense Department with the most effective mix of forces, equipment, manpower, and support attainable within fiscal constraints of the Federal Government.
The ultimate objective of the PPBE is
Secretary of Defense McNamara in the 1960's.
The PPBE was initiated by
The PPBE are based on and consistent with the following items derived from Presidential National Security Directives and follow on documents from the SECDEF and CJCS in order to ensure national security
Officials on the OSD staff provide support to the PPBE process as designated in
Under Secretary of Defense (Comptroller)
A key official in the organization of PPBE is
forces, equipment, and support attainable within resource constraints.
The DoD components in each PPBE phase strive to provide operational Combatant Commanders the best mix of
exercise centralized control of Executive policy direction.
The Secretary and the Deputy Secretary of Defense, assisted by the OSD staff,
The JCS and Combatant Commanders
Who has input to and/or review of every product and step of the PPBE planning phase?
The Joint Staff
What team develops the National Military Strategy from which the Defense Planning Guidance (DPG) is developed?
The Vice Chairman
Serves as the Vice Chairman of the Defense Acquisition Board and the Chairman of the Joint Requirements Oversight Council (JROC).
reviews long range defense strategy for CJCS and evaluates requirements for new weapons systems.
Joint Requirement Oversight Council
the long range requirements process with the near-term requirement for new weapons systems and capabilities.
The Vice Chairman links
develop and execute the programs and budgets necessary to achieve national objectives in accordance with DoDD 7045.14.
Heads of DoD Components shall
provide the day to day management of the resources under their respective control.
The Heads of DoD Components
Conducts and coordinates budget reviews by evaluating DoD Component budget submissions for financial appropriateness.
The Under Secretary of Defense (Comptroller)/Chief Financial Officer
the principal adviser and assistant to the SECDEF for budgetary and fiscal matters.
The Under Secretary of Defense (Comptroller)/CFO
The Under Secretary of Defense Comptroller/CFO
Who conducts and coordinates the budget review, execution and performance reviews, manages the audit-ability of financial statements along with the overall financial management, accounting policy and systems?
The Under Secretary of Defense for Policy (USD (P))
Who conducts and coordinates the planning phase of the PPBE process, prepares, coordinates, and publishes planning guidance for the employment and development of the force and leads DoD wide efforts for the QDR, including development of the defense strategy.
The Under Secretary of Defense (Acquisition, Technology and Logistics) USD (AT&L)
Who advises the SECDEF and DEPSECDEF on all PPBE matters related to acquisition, technology, logistics, installations and equipment and environmental function, ensures programs are fiscally and technically executable within available resources and assists in the development of resource planning goals, programming objectives and related guidance?
DoD Fiscal guidance and providing independent analysis and advice to the Secretary and Deputy secretary concerning plans, programs, budgets and capabilities in relation to U.S. defense objectives, projected threats, estimated costs, and resource constraints established in the PPBE process.
The D CAPE is responsible for the following relative to the PPBE process
Chaired by the USD (AT&L), this board oversees development and production of major weapons systems.
Defense Acquisition Board
5000 Series - Acquisitions
Defense Acquisition Management Systems - USD (AT&L) Oversight/ Milestone Decision Authority (MDA) Oversight
PPBE, Joint Capabilities Integration and Development Systems (JCIDS) and Defense Acquisition System (DAS).
What are the three support systems that the DoD has that must work in concert to ensure consistent decision making while delivering timely and cost effective capability solutions to the warfighter community
the process is used to acquire, allocate, account for, and analyze personnel and financial resources for DoD.
a systematic method established by the Joint Chiefs of Staff to assess gaps in military joint war fighting capabilities and to recommend solutions to resolve these gaps.
Joint Capabilities Integration and Development System (JCIDS)
the management process by which the Department acquires weapon systems and automated information systems.
Defense Acquisition System (DAS)
are made in the month of September and October.
Resource Management Decisions (RMD)
POM two years in advance.
Program Objective Memorandum
capabilities needed by Defense while tailoring the guidance to fit within the resources available to meet the defense goals.
What does the SECDEF Planning Process focus attention on?
The SECDEF Planning Process.
What is a fiscally constrained programmatic guidance to accomplish National Defense Strategy and Corporate DoD Goals in the Quadrennial Defense Review (QDR)?
Defense Planning Guidance and Strategic Portfolio Reviews.
What are the two key elements in the SECDEF planning process?
fiscally constrained programmatic guidance for use by military departments and Defense Agencies in developing Program Objective Memoranda and Budget Estimates.
What does the Defense Planning Guidance contain?
enable Defense officials to look across service portfolios of weapon systems to identify redundancies and capability gaps.
What are Strategic Portfolios Reviews intended to do?
more definitized and less duplicative for Components because decisions relative to which major acquisition programs are to be funded will have already been made.
What would the Strategic Portfolio Review (SPR) make of the planning and programming phases?
to define the military role and posture of the U.S. and DoD in accordance with National Security Strategy and in light of threats and other factors such as political, economic, technological, and resources.
What is the purpose of the planning phase of PPBE?
The commanders of the Combatant Commands.
Who provides the SECDEF with their appraisals of major issues and problems of their commands that should be addressed in the Defense Planning and Program Guidance?
The Defense Planning Guidance (DPG)
The final document of the planning phase in PPBE.
the Defense policy, strategy, force planning, resource planning and fiscal guidance.
What does the Defense Planning Guidance promulgate?
About a year and a half in advance of the fiscal year in which the budget authority will be requested.
When does the planning process begin?
maintain U.S. national security and to support the U.S. foreign policy two to seven years in the future.
Defining the Defense Strategy Guidance and National Military Strategy necessary to help
the Global security situation.
What does Joint Strategic Planning examine?
1. Provide strategic direction to the armed forces
2. Form defense policy, programs, and budgets.
Joint Strategic Planning helps the CJCS provide military advice to help the President and SECDEF
The Joint Strategic Planning phase
What PPBE phase are the wishes of the President, Secretary of Defense and National Security council addressed?
the various Component Commanders.
What is the primary interaction between the combatant commanders and military departments through?
a Program Objective Memorandum or Budget Estimate Submission (BES) directly to OSD.
Combatant Commands, with the exception of Special Operations Command (SOCOM), do not submit
by an Integrated Priority List (IPL)
How are prioritized requirements submitted?
1. Combatant Commanders high priority needs.
2. Prioritized across service and functional lines
3. Provides visibility for key problem areas requiring DoD attention
4. Submitted to SECDEF, CJCS and Military departments
What does the Integrated Priority List (IPL) consist of?
The Deputy Secretary of Defense chairs issue meetings to address all common management and day to day issues.
What does the Deputy's Management Action Group do?
to determine the most effective mix of forces, equipment, manpower, and support attainable within the fiscal constraints of the federal government.
What is the ultimate of the PPBE process?
four and seven
In addition to the budget year, the program period includes ____ years beyond the budget year for manpower, and ___ years beyond the budget year for forces.
The Military Departments and Defense Agencies.
What agency uses the POM to submit a balanced allocation of resources within specified constraints?
In the late May or early June time frame.
During what months does the Office of the Under Secretary of Defense (Comptroller) and Director, Cost Assessment and Program Evaluation (D, CAPE) send an Integrated Program Budget Guidance?
Future Years Defense Program (FYDP)
One of the most vital components and a foundation of the PPBE
An automated database that summarizes all forces, resources, and equipment associated with programs approved by the Secretary of Defense
Contains forces, manpower, and total obligational authority (TOA) identified to a program element structure aggregated into a major defense program
NTL the first Monday in February
Presidential budget due date
3. Military Construction
4. Military Personnel
5. Ops and Maintenance
Organized and prepares issue papers which are compiled in Issue Books
the balance and capabilities of the forces contained in the POMS
POM review focuses on
programming phase of PPBE
The issuance of RMDs addressing programming issues completes the
the translation of the program into an appropriations format as required by Congress.
The final phase of the preparation of the President's budget
in the budget review.
When does the translation into appropriation take place?
The office of the Secretary of Defense (Comptroller) and Director, Cost Assessment and Program Evaluation (D, CAPE)
send an Integrated Program/Budget Review Guidance document providing a detailed schedule and guidance for the preparation and submission of the Components' POM/BES
Each DoD Component and the timeframe for turn in is July or August.
Who submits a Budget Estimate?
a senior OMB representative (a budget examiner) jointly meets with one or a limited number of representatives from that Component
Who reviews the budget submission after the initial "scrub?"
as a "face-to-face" meeting also known as the "Fall Review"
How is the budget review done?
is ensuring the use of proper funding policy for the appropriation involved, pricing, phasing (especially between RDT&E and procurement actions), reasonableness, prior year obligations, and executability of the requested budget amount.
What is the primary focus of the "Fall Review?"
two alternate decisions (one to approve the request as submitted and another reflecting
How many alternate decisions are there for the "Fall Review?"
planning, programming, and budgeting.
The DAB and JROC help link the acquisition process to
submit the annual budget request to Congress no later than the first Monday in February which is almost 8 months prior to the target fiscal year that will begin the following October.
The 1974 Congressional Budget Act requires the President to
request for both new budget authority (i.e. approval for new obligations) and estimated outlays from the U.S. Treasury during the target year (i.e. actual dollar amount to pay bills generated from previous obligation actions).
What does the President's budget include?
The Concurrent Budget Resolution
This is not presented to the President for action and is not a law; it is simply an agreement of both Congressional chambers as to the estimated revenue and projected maximum amount of new budget authority to the appropriated
The House and Senate Armed Services Committees.
Who manages the Defense Authorization Process?
The House and Senate Appropriations Committees manage the appropriation process for the entire Federal Government.
Who manages the Congressional Appropriation for Defense Programs?
What is the most common means by which Congress provides budget authority and usually follows the passage of an authorization?
Costs that result in the acquisition of, or an addition to, end items.
Costs incurred to operate and maintain the organization, such as personal services, supplies and utilities. Are of a long-term character such as real property, personal property, weapons systems, and major information technology systems.
while Procurement and MILCON are considered Investment appropriations RDT&E appropriations cover both expenses and investments.
DoD considers O&M and MILPERS to be Expense appropriations-annual funding
Incremental Funding applies to what kind of projects only
only those funds required for work in a given fiscal year shall be included in the RDT&E budget request for that fiscal year for most classes of effort.
What is the incremental funding rule?
two year appropriation
RDT&E appropriation is a
costs of a headquarters
What kind of costs does R&D activities not include?
Full funding policy
The rule governing the computation of estimates for procurement and military construction appropriations is called
"all finds required to complete the delivery of each buy will be included in the budget request for the year of the planned contract award, regardless of the date the contracted items will be delivered.
What is another way to state full funding policy?
The Military Service cannot by one part of the item one year, another part the next year, and then another part the third year
use of advance procurement.
An appropriate exception to the full funding policy is the
funds to procure certain components, material, or effort in advance of the end buy item to preclude serious and costly fluctuation on program continuity,
Advanced procurement can be described as
(1). maintain critical skills that would otherwise be lost between Engineering and Manufacturing Development and Full rate production; and/or (2) to protect the schedule by providing necessary components at the right time for incorporation into the production of the weapon system, i.e., to prevent a slow down or break in production
Advance procurement may be used to
Milestone Decision Authority's (MDA) flexibility so it should only be used when the economic benefits are significant and only with MDA concurrence.
The authorization for the use of advance procurement funds limits the
option contract only obligates the Government one year at a time, whereas the MYP contract obligates the Government for the full five years of systems at the time of a contract signature, but is funded annually
MYP is different from an option-type contract in that the
advance procurement, it falls under the advance procurement exception too the full funding principle.
Since the funding of Economic Order Quantity system sub purchases associated with a MYP is funded as
The MYP will result in substantial savings compared to annual procurement of the same quantities to compensate for the reduction of future budget flexibility and added program risk
5 years for all appropriations
How long is the expired period
What is the most common obligating document?
1. Direct Citation
2. Reimbursable order
3. Project Order
4. Economy Act Order
When a MIPR is used internally what are the four ways it can be used?
Project Orders are typically used for
"non-severable" nature in which the requesting entity would not receive a benefit until the "entire project" is completed.
Generally work required under a project order would be a
before the end of availability of the cited appropriation-either provided the ordered goods or services, or entered into an authorized contract with another entity to provide the ordered goods or services.
Funds must be deobligated by both therequesting and servicing agency to the extent the servicing agency has not-
outstanding commitment until an obligation is determined.
1. Outstanding fixed price contracts
2. Interest due from government
Contingent liabilities must be carried in the accounting system as an
must give a "Notice of Termination" to contractor
Termination for convenience of government
at OSD level
Where are the foreign currency fluctuation appropriations maintained?
to eliminate losses or gains to programs caused by fluctuation of specified foreign currency exchange rate.
Why were the two foreign currency fluctuation appropriations established?
work is performed or when the performing activity renders actual or constructive performance on the order issue.
Reimbursements are earned when
an MOA or MOU
Broad areas of recurring inter-service and intra-governmental support and cooperation that did not require reimbursement should be documented on
DD Form 1144 must be identified as "non-reimbursement"
Support that benefits a receiver without creating additional costs to the supplier (e.g. gate guards, fire protection) may be included in
break even on every transaction (i.e. no profit or loss)
Reimbursable funded activities are required to
When the funds are shifted within the same appropriations account it is a
When the funds are shifted between appropriation accounts it is a
made with proper approvals.
Reprogramming - or transfers of funds can be
one purpose or activity to another within the same appropriation.
Reprogramming of funds within an appropriation account is a shift from
DoD Components without Congressional notification
Ordinarily, changes below these thresholds (O&M $15M, Procure $20M, RDT&E $10M) can be made by
Armed Services and Appropriations Committees prior to implementation.
A transfer of funds that occurs between two different appropriations requires statutory transfer authority and requires the approval of the
"Revolving Funds or Defense Working Capital Funds"
During budget execution, agencies expend a significant portion of their funds through
The Defense Business Operations Fund (DBOF) on October 1, 1991.
DoD expanded the use of businesslike financial management practices through the establishment of
What percentage does the DWCF execute of the total Defense appropriations on an annual basis?
deal with procuring material in volume from commercial sources and holding it in inventory.
were funds that provided industrial and commercial goods and services such as depot maintenance, transportation and research and development.
the major asset is inventory held for resale.
For supply management
the major asset is work in progress, work that is partially done for customers, but not yet ready to be delivered and billed.
for non-supply management
"the corpus of the revolving fund"
The resources used to commend or increasing the size of a working capital fund are commonly referred to as
The goal of DWCF
They are "not for profit organizations"
Profit or loss
Net Operating Result
Accumulated Operating Result (AOR)
the running total of net operating results over the fiscal years of the fund's existence
the revolving fund rates at the cost of a civilian, not as a military person.
Since positions occupied by military personnel can be performed by civilian personnel, of cost of these services is included in
The Military Personnel appropriation is reimbursed for the military personnel at the
responsible personnel in the various organizational units who have the authority to incur obligations in carrying out the program of the agency.
The system of administrative control is based on the allotment/allocation made to the
Monies not appropriated by Congress; generated primarily from the sale of goods and services.
Non-Appropriated Funds (NAF)
Morale, Welfare and Recreation (MWR)
NAF is used support
MWR Category A -mission sustaining programs
is a minimum of 85% of total expenditures
a minimum of 65% of total expenditures.
The DoD APF standard for category B - Community Support Programs is
should be limited
In general, APF support for Category C- Revenue Generating Programs
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CDFM MODULE 2: Competency 2 (2017)
CDFM MODULE 2: Competency 1
CDFM Module 2 Competency 2.1
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