Air Force Financial Management Update Ms. Marilyn Thomas Principal - - PowerPoint PPT Presentation
Air Force Financial Management Update Ms. Marilyn Thomas Principal Deputy Assistant Secretary of the Air Force (Financial Management and Comptroller) 14 March 2019 Overview FM Strategic Plan Budget Update Cost and Economics Update
Air Force Financial Management Update
Principal Deputy Assistant Secretary of the Air Force (Financial Management and Comptroller) 14 March 2019
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“This update to the Financial Management (FM) Strategic Plan is a call to an actionable strategy that resonates with our FM workforce—officer, enlisted, civilian, and contractor. It refreshes our blueprint to help create air, space, and cyber capabilities for the United States Air Force, take care of Airmen, take care of the treasures entrusted to us, and create a lethal FM team ready to support combatant commanders.” “We took a fresh look at our FM Vision and Mission Statements since that’s where we start in guiding our work today to build a better future. We solicited inputs from across FM—senior and junior personnel—and developed this new direction.” – John P. Roth
FM Vision: Financial Excellence—Powered by
Airmen, Fueled by Innovation
FM Mission: Provide resources, financial services,
and decision support to deliver air, space, and cyber capabilities for our nation
Honorable John P. Roth
Assistant Secretary of the Air Force (Financial Management and Comptroller)
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Goal 1: Develop and Take Care of the FM Team
Goal 2: Deliver Financial Management Excellence
Estimating, Budget Development, and Execution
Support
Goal 3: Provide Financial Management Leadership
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1.1 Build Modern Recruiting Strategy/Capabilities 1.2 Assess Retention Factors – Build Retention Strategy & Tools 2.1 Grow Air Force Leaders 2.2 Evaluate & Shape FM Competency Requirements 2.3 Modernize Education and Training Processes and Content 3.1 Implement Human Capital Governance 3.2 Improve Career Development Infrastructures
Read and discuss with your people
Lead - be an active participant in making things better
we can move mountains
Live the Air Force Strategic Imperatives
collaborate with others to produce excellence
Provide feedback
updated
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Maj Gen John Pletcher
Deputy Assistant Secretary (Budget)
Fiscal Environment
sources…Reprogramming? Supplemental?
Logistics
Nuclear Deterrent
Experimentation
More Lethal and Ready Force Fielding Faster and Smarter
O&M, $49.9 O&M, $54.6 MILPERS, $31.9 MILPERS, $34.2 RDT&E, $30.9 RDT&E, $35.4 Procurement, $26.0 Procurement, $25.9 MILCON, $2.7 OCO, $14.8 OCO, $12.8 Non-Blue, $38.5 Non-Blue, $39.2 MILCON, $2.3
O&M, $26.7 MILPERS, $34.2 RDT&E, $35.4 Procurement, $24.3 OCO, $42.3 Non-Blue, $39.2 MILCON, $2.7
Air Force Controlled Budget Authority $165.6B
OCO includes all categories Numbers may not add due to rounding
FY20 PB Comparable $204.8B FY19 Enacted $194.3B FY20 PB Submission $204.8B
OCO includes Direct War and Enduring requirements Numbers may not add due to rounding
Includes Space Force HQ
Air Force Controlled Budget Authority $155.8B
Technical Director, Cost and Economic Analysis Research Air Force Cost Analysis Agency
Organizational Structure
Deputy Assistant Secretary Cost & Economics (FMC) (Ms. Pamela Schwenke, SES)
Economics & Business Mgt (SAF/FMCE) (Dr. Anne Gorney) Cost Analysis & Policy Integration (SAF/FMCC) (Brig Gen Mike Greiner) Technical Director (AFCAA)
Aircraft & Weapons (AFCAA/FMCA) (Mr. Dave Stem) Space Programs (AFCAA/FMCS) (Mr. Bill Seeman) Info Tech & Electronics (AFCAA/FMCI) (Ms. Eunice Ciskowski) Operations & Support (AFCAA/FMCY) (Mr. Sean Escobar)
Associate Deputy Assistant Cost & Economics (FMC) (Mr. C. Grant McVicker, SES)
AFCAA
Photo not Available
Acquisition Decisions
Programs (Section 804) Guidance Memo
Cost in the AF SPPBE process
panels
planning
Enterprise
stood up 4-person OL in support of AF Nuclear Weapons Center, Hill AFB, UT
1 2 3 4 5 6 7 8 9 10 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20 40 60 80 100 120 140 160 180 # Estimates Analysts per Estimate # Estimates # Analysts per Estimate8 Analysts Per Estimate 0.8 Analysts Per Estimate
Special Studies
Pilot Training
Need
$
55 programs/$128B in investment funding
RED: difference between realistic cost estimate & budget Enables Cost Conscious Decision Making POM Cost Risk Assessment
Deputy Assistant Secretary (Financial Operations)
326 311 35
Number of NFRs Number of CAPs Developed Number of CAPs Completed Number of NFRs Closed
Auditors identified 11 General Fund and 12 Working Capital Fund Material Weaknesses under the following categories:
Achieving a clean audit opinion will require a three part strategy:
Demonstrate progress Develop, Prioritize, Implement and Complete Corrective Action Plans (CAPs) Avoid Notice of Findings and Recommendations (NFRs) reissuances due to failure Improve audit opinion Work and minimize the impact and severity of material weaknesses Meet FY2019 SECDEF goals of addressing Real Property, Inventory, and IT Access Controls Achieve and sustain auditability Implement a robust Internal Control Program to help sustain a clean audit and reduce future audit findings. Operate system of Internal Control across the Air Force
Strengthen Internal Controls Program Prioritize NFRs Address Material Weaknesses Strengthen Internal Controls Program
Prioritization Results
Impact
HIGH LOW
Total - 114 (35%) High Impact, Low Complexity Total - 107 (33%) High Impact, High Complexity Total - 26 (8%) Low Impact, High Complexity Total - 79 (24%) Low Impact, Low Complexity
Low Impact: Immaterial, low reputational risk, and/or not an OUSD critical capability Low Complexity: Centralized, control-related, CAP in progress, near-term CAP completion, and/or sunsetting systems High Impact: High (material) financial impact, potential reputational risk, and/or OUSD critical capability Low Complexity: Centralized, control-related, CAP in progress, near-term CAP completion, and/or sunsetting systems Low Impact: Immaterial, low reputational risk, and/or not an OUSD critical capability High Complexity: Many dependencies, process and system updates required, and/or new approach/CAPs to coordinate High Impact: High (material) financial impact, potential reputational risk, and/or OUSD critical capability High Complexity: Many dependencies, process and system updates required, and/or new approach/CAPs to coordinate
The prioritization framework has enabled the Air Force to make risk-based decisions
FY2019 and beyond.
Complexity
LOW HIGH
Asset Type Memorandum Summary Air Force Alignment with SECDEF Memo Requirements
Real Property Conduct a full inventory baseline
reconciliation between United States Air Force’s capitalized assets to what is recorded in the Accountable Property System of Record. Perform 100% Existence and Completeness (E&C) and Rights Baseline for only Buildings Inventory and Operating Material and Supplies Conduct floor-to-book and book- to-floor physical inventory of all Working Capital Fund inventory and General Fund munitions and uninstalled engines in the Air Force’s possession. Leverage current inventory procedures: Munitions - 100% inventory in Mar 2019 and Sep 2019 Spare/Uninstalled Engines - 100% unit-level inventory in Apr 2019 and Jul 2019;100% inventory of spare engines in long term storage in Aug 2019 Working Capital Fund Inventory - Perform 100% E&C of Inventory Held-for-Resale (excluding in-transit and War Reserve Material) Government Property in the Possession of Contractor Reconcile contractor inventory data with Air Force property records to establish a complete baseline of assets for sustainment contracts. Perform validation testing at top ten contractor sites Coordinate with the Under Secretary of Defense for Acquisition and Sustainment (USD(A&S)
Asset Type Memorandum Summary Air Force Alignment with SECDEF Memo Requirements
Information Technology Review and limit system access to only those who need it and only for the specific areas within the system that they need to access. Perform risk-based user access reviews and automated reconciliations for financial systems Corrective Action Plan All plans should have defined timelines, milestones, and an identified senior accountable official and action officer(s), to meet the Notice of Findings and Recommendations closure. All Air Force Corrective Action Plans have been submitted to OUSD(C) database Plan to Sustain Build upon and sustain the audit results Monitor internal controls to ensure existing policies and processes to sustain auditability
Bottom Line: Countermeasures are an aggressive approach to reduce stress on the field and clean up the books.
Director, Workforce Management and Executive Services
Published FM Strategic Plan & Human Capital Strategy Education & Training at the Schoolhouse (FMOC, DFMC&S, PFMC)
Defense Competency Assessment Tool
Mission Critical Occupation(s)
FM Certification Expanded to NAF Employees (Pilot in FY19/20)
If You Are Not Growing…You Are Not Going……
Non-ACQ/Non-PAQ PAQ Interns (Non-ACQ) Acquisition All Grades GS-7 thru GS-12 centrally funded Must be in an acquisition coded position 75% funded $4,500 annual cap 100% funded no annual cap $50K total for a degree May take up to two courses at a time Amount over $50K must be funded by employee first
Application Info on MyPers: https://mypers.af.mil/app/answers/detail/a_id/28340/kw/Tuition%20Assistance/p/2