DEFENSE WORKING CAPITAL FUND
DEFENSE WORKING CAPITAL FUNDDEFENSE-WIDEFISCAL YEAR (FY) FY 2020BUDGET ESTIMATESOPERATING AND CAPITAL BUDGETSMARCH 2019CONGRESSIONAL DATA
DEPARTMENT OF DEFENSEFISCAL YEAR (FY) 2020 BUDGET ESTIMATESDEFENSE-WIDE WORKING CAPITAL FUNDDEFENSE OVERVIEWPAGEDefense-Wide Summary.Source of New Orders and Revenue.Revenue and Expenses.1-45-67OPERATING BUDGETDEFENSE FINANCE AND ACCOUNTING SERVICE (DFAS)Narrative. 8-17Changes in the Costs of Operations.18Source of New Orders and Revenue. 19-20Revenue and Expenses.21DEFENSE INFORMATION SYSTEMS AGENCY (DISA)Information Services Activity Group Overview. . . . . 22-59Changes in the Costs of Operations. 60-61Sources of New Orders and Revenue. 62-64Revenue and Expenses.65DEFENSE LOGISTICS AGENCY (DLA)Supply Chain Management:Narrative. 66-88Supply Chain Management Summary. 89-94Material Inventory Data (Inventory Status). 95-97War Reserve Material.98-100Source of New Orders and Revenue.101-102Revenue and Expenses.103Energy Management:Narrative.104-110Energy Summary.111-113Material Inventory Data (Inventory Status).114-116War Reserve Material.117-119Source of New Orders and Revenue.120-121Revenue and Expenses.122Fuel Data.123-128The estimated cost of this report or study for the Department of Defense is approximately 43,000 for the 2019Fiscal Year. This includes 1,000 in expenses and 42,000 in DoD labor.Generated on 2019Apr12 RefID: A-1DCE76C
DEPARTMENT OF DEFENSEFISCAL YEAR (FY) 2020 BUDGET ESTIMATESDEFENSE-WIDE WORKING CAPITAL FUNDOPERATING BUDGET CONTINUEDPAGEDocument Services:Narrative.Changes in Costs of Operations.Resource of New Orders and Revenue.Revenue and Expenses.129-134135136137CAPITAL BUDGETDEFENSE FINANCE AND ACCOUNTING SERVICE (DFAS).138-145DEFENSE INFORMATION SYSTEMS AGENCY (DISA) .146-161DEFENSE LOGISTICS AGENCY (DLA)Supply Chain Management.Energy Management.Document Services.162-181182-186187-190
DEFENSE-WIDE WORKING CAPITAL FUNDFISCAL YEAR (FY) 2020 BUDGET ESTIMATESMARCH 2019DEFENSE-WIDE SUMMARYThe Defense-Wide Working Capital Fund (DWWCF) consists of six activitygroups.The Defense Logistics Agency (DLA) operates three of theseactivity groups, the Defense Information Systems Agency (DISA) operatestwo activity groups, and the Defense Finance and Accounting Service(DFAS) operates one activity group.The DFAS was formed in January 1991 from the Military Services financeand accounting functions.The mission of the DFAS is to lead theDepartment of Defense (DoD) in finance and accounting by ensuring thedelivery of efficient, exceptional quality pay and financialinformation.The DISA was reorganized in 1991 from the former Defense CommunicationsAgency. The mission of the DISA is to engineer and provide command andcontrol capabilities and enterprise infrastructure to continuouslyoperate and assure a global net-centric enterprise in direct support tojoint warfighters, National level leaders, and other mission andcoalition partners across the full spectrum of operations.The DLA, formed in the early 1960s, operates the Supply Chain Management(SCM), Energy Management (EM), and Document Services activity groups.The DLA SCM manages the materiel from initial acquisition, to storageand distribution, and then finally reutilization or disposal. The DLAEnergy Management provides comprehensive worldwide energy solutions forthe military services and other authorized customers. The DLA DocumentServices provides time sensitive, competitively priced, and highquality printing and digital services. The mission of the DLA is toprovide effective and efficient worldwide support to warfighters andour other customers.1
DEFENSE-WIDE WORKING CAPITAL FUND CASHThe table below displays the actual DWWCF cash balance for DLA, DISA,and DFAS at the end of FY 2018 and estimated year end balances for FY2019 and FY 2020.The plan projects a decrease of 1,961.8 million incash from the beginning of FY 2018 through FY 2020.Dollars in MillionsCash, Beginning of PeriodDisbursementsCollectionsNet OutlaysDirect AppropriationFY 2018 ReceivedFY 2019 ReceivedFY 2020 RequestedOverseas AppropriationFY 2018 ReceivedFY 2019 ReceivedFY 2020 RequestedCash TransfersCash, End of PeriodLower Operating RangeUpper Operating RangeFY 2018FY 2019FY 2020 3,007.5- 48,543.0 47,326.9- 1,216.1 2,627.1- 51,937.0 51,598.5- 338.5 2,334.1- 50,768.9 49,434.0- 1,334.9 47.0 98.8 689.9 2,627.1 48.1 0.0- 2.6 2,334.1 3,246.0 5,347.7 49.1 0.0- 2.6 1,045.7 2,890.8 5,118.2FY 2018 Cash: The DWWCF Cash balance decreased 380.4 million due toa cash loss (- 1,216.1 million); offset by the receipt of netreprogramming ( 689.9 million) and the receipt of appropriated funding( 145.8 million). The DLA Energy Management (EM) activity’s cash lossof 382.3 million was due to paying a high cost for fuel product(- 1,141.9 million in Net Outlays); partially offset by a cash transferin ( 689.6 million) and the receipt of appropriated funding( 70.0 million). The DLA Supply Chain Management (SCM) activity gained 106.4 million, primarily due to the receipt of appropriated funding( 75.8 million).The DWWCF received 47.0 million in direct appropriations forReutilization, Transfer and Disposal (RTD) costs; and 98.8 million inOCO funding. Of the 98.8 million requested for OCO, the DLA EM activityreceived 70.0 million primarily for fuel-related services provided bythe NATO Support and Procurement Agency (NSPA) and the DLA SCM activityreceived 28.8 million primarily for the DLA Disposition Services (tosupport the scheduled drawdown of the Operations Freedom’s Sentinel2
mission in Afghanistan and the Satellite Communications(SATCOM) for all activities in Southwest Asia (SWA)).ServicesThe DLA Energy received 690.6 million in a transfer to offset fuelproduct cost losses. The DLA Energy transferred -0.7 million for theIndian Financing Act of 1974.The FY 2018 ending cash balance is 2,627.1 million for the three DWWCF entities (DLA, 1,798.5 million;DISA, 538.9 million; and DFAS, 289.7 million)FY 2019 Cash: The DWWCF projects a cash decrease of 293.0 million forthe DLA SCM activity ( -433.9 million) partially offset by projectedcash gains in the DISA activity ( 78.2 million).The Net Outlays for the DLA SCM Activity are due to the timing ofdisbursements for materiel with a long acquisition lead time.Obligations for these items were made in a prior fiscal year; there isno projected sale for some of the materiel received in FY 2019. Thesematerials were ordered in support of the 2018 National DefenseStrategy’s Readiness and Lethality imperatives.The DWWCF received 48.1 million in direct appropriations for RTD costs.The DLA projects a cash transfer of -2.6 million for the IndianFinancing Act of 1974. The FY 2019 ending cash balance is projected tobe 2,334.1 million (DLA, 1,413.4 million; DISA, 617.1 million; andDFAS, 303.6 million).FY 2020 Cash: The DWWCF projects a cash decrease of 1,288.4 milliondue to Net Outlays for the DLA SCM activity ( -1,132.0 million). TheDLA EM activity projects a cash gain of 107.9 million.Over the past two years, the DLA SCM Materiel Supply Chains (MSC) haveexperienced a significant increase in readiness-based requirements fromthe Military Services. Moreover, the 2018 National Defense Strategydirected urgent and significant changes to rebuild America’s militaryadvantage with a specific emphasis on restoring Military Readiness asthe DoD builds a more lethal force.As a result, the DLA MSC havereceived requests from the Military Services to target higher readinesslevels.In order to respond to these challenges, DLA requested additional FY2018 OA to meet forecasted customer requirements.Due to the longacquisition lead time of many DLA items, the Agency needed OA to buythe material. After DLA receives the material, cash is disbursed tothe vendor to pay for the material.However, cash is not collecteduntil the sale is made to Military Services and other customers. Formany readiness-type items, this can take from one to two years or3
longer. In order to meet the higher demand signals received from themilitary services and the current DLA cash balance, DLA has reviewedvarious options to mitigate negative impacts to cash.DLA’s mission, as a Combat Support Agency, is to have material availableto meet readiness needs before orders are placed.The customerrequirement for material is formulated two years ahead of execution.DLA generates its requirement by predicting future demand using variousforecasting models, collaborating with customers and analyzinghistorical demand.Customer demand may fluctuate due to changes inoptempo, which means customers may buy more or less than estimated. Incases where customers buy less than estimated, it means DLA stock onhand increases and DLA cash decreases without a correspondingcollection.While collaborative demand forecasting aims to minimizethis, it can result in a cash decline and a reduction in anticipatedsales.This submission requests 49.1 million in direct appropriations for RTDcosts. The DLA projects a cash transfer of -2.6 million for the IndianFinancing Act of 1974. The FY 2020 ending cash balance is projected tobe 1,045.7 million (DLA, 437.0 million; DISA, 323.9 million; andDFAS, 284.8 million).4
DEFENSE-WIDE WORKING CAPITAL FUND - TOTALSOURCE OF NEW ORDERS AND REVENUEFISCAL YEAR (FY) 2020 BUDGET ESTIMATESMARCH 2019(Dollars in Millions)FY 2018FY 2019FY 20201. New Orders:a. Orders from DoD ComponentsArmyOperations & MaintenanceResearch Development Testing & EvaluationProcurementMilitary ConstructionFamily HousingMilitary ons & MaintenanceResearch Development Testing & EvaluationProcurementMilitary ConstructionFamily HousingMilitary .817.7427.21.14.0648.38.8Air ForceOperations & MaintenanceResearch Development Testing & EvaluationProcurementMilitary ConstructionFamily HousingMilitary .894.211.70.010.183.344.4Marine CorpsOperations & MaintenanceResearch Development Testing & EvaluationProcurementMilitary ConstructionFamily HousingMilitary .00.0334.70.0Defense-WideOperations & MaintenanceResearch Development Testing & EvaluationProcurementMilitary ConstructionFamily HousingMilitary .12,082.4260.5291.916.80.00.03,833.55Fund-11 Source of Revenue
OtherOperations & MaintenanceResearch Development Testing & EvaluationProcurementMilitary ConstructionFamily HousingMilitary tal New Orders29,712.8 32,625.7 32,372.4Operations & Maintenance20,045.2 23,389.2 23,501.1Research Development Testing & Evaluation355.8526.1550.0Procurement1,306.1 1,015.2976.7Military Construction15.628.628.0Family Housing14.216.816.1Military Personnel3,563.7 3,527.1 3,360.0Other4,412.2 4,122.7 3,940.5b. Orders from Other Fund Activity GroupsArmyNavyAir ForceMarine CorpDefense-Wide15,599.6 14,600.2 13,450.53,118.0 3,078.9 2,903.43,827.0 3,136.3 3,010.66,557.4 6,991.8 6,657.72.72.72.52,094.5 1,390.5876.3c. Total DoD45,312.4 47,225.9 45,822.9d. Other Orders:Trust FundFederal AgenciesNon Federal AgenciesExchange ActivitiesForeign Military Sales2. Carry-In 91.21,360.14,297.16,409.96,409.83. Total Gross Orders53,743.0 57,303.5 55,920.14. Carry-Out Orders-6,409.9 -6,409.8 -6,409.85. Gross Sales47,333.1 50,893.7 49,510.3Disposition Services - Sales Proceeds6. Credits & Allowances7. Net Sales87.795.998.6-460.2-961.7-958.246,960.6 50,027.9 48,650.78. Reimbursable Sales965.11,028.01,034.247,925.7 51,055.9 49,684.99. Total Revenue6Fund-11 Source of Revenue
DEFENSE-WIDE WORKING CAPITAL FUNDSUMMARYFISCAL YEAR (FY) 2020 BUDGET ESTIMATEREVENUE AND EXPENSESMARCH 2019(Dollars in Millions)Revenue:Gross SalesOperationsCapital SurchargeCapital Investment RecoveryMajor Construction DepreciationADPE & Telecommunications EquipmentOther IncomeRefunds/Discounts (-)Total IncomeExpenses:Cost of Materiel Sold from InventoryMateriel-RelatedSalaries and Wages:Military Personnel Compensation & BenefitsCivilian Personnel Compensation & BenefitsTravel & Transportation of PersonnelMaterials & Supplies (For Internal Oper)EquipmentOther Purchases from Revolving FundsTransportation of ThingsInventory MaintenanceCapital Investment RecoveryPrinting & ReproductionAdvisory and Assistance ServicesRent, Communication, Utilities, & Misc.Other Purchased ServicesTotal ExpensesOperating ResultFY 2018FY 2019FY 02.58,858.749,993.6(123.0)1,395.7Less Capital Surcharge ReservationPlus Passthroughs or Other Approp Affecting NOROther Adjustments Affecting NOR0.00.0848.80.00.0(1,299.8)Net Operating Result (NOR)725.8Prior Year AdjustmentsOther Changes Affecting AORPrior Year AORAccumulated Operating Result (AOR)Non-Recoverable Adjustments Impacting AORAccumulated Operating Results for Budget 1)0.061.1(269.7)0.01,516.7(1,138.4)108.60.0108.6
Defense Finance andAccounting ServiceFiscal Year (FY) 2020 Budget EstimatesDefense Working Capital Fund (DWCF)President’s Budget SubmissionFebruary 20198
DEFENSE FINANCE AND ACCOUNTING SERVICEOverviewAs the world’s largest finance and accounting operation, the Defense Finance andAccounting Service (DFAS) builds on its core values of Integrity, Service, and Innovation tolead the Department of Defense (DoD) in finance and accounting by ensuring the deliveryof efficient, exceptional quality pay and financial information.Established to leverage economies of scale and scope by centralizing various finance,accounting, human resources, and financial systems management services, the DFASeffectively leverages data transparency and customer collaboration to steadily andcontinually reduce costs to customers. Since its inception, the DFAS has consolidatedmore than 300 installation-level offices into ten sites and reduced the number of systems inuse from 330 to 76.As a Working Capital Fund, the DFAS obtains its funding by charging customers forservices provided, rather than through direct appropriations. The DFAS establishesstabilized customer rates annually in advance of execution based upon anticipatedworkload, estimated costs, and prior year gains or losses, with the goal of breaking evenover the long run and maintaining sufficient cash to meet daily operations.The DFAS is committed to exceptional customer service, delivering accurate and timelyfinance and accounting services at the lowest cost, while utilizing electronic processeswherever possible. The DFAS works in partnership with the Office of the Secretary ofDefense (OSD), Military Services, Defense Agencies, and Combatant Commands toprovide timely business information to key decision-makers. By focusing on the financeand accounting needs of the Military Services, the DFAS allows warfighters to betterconcentrate on their missions.The DFAS pays all DoD military and civilian personnel, military retirees and annuitants,as well as major DoD contractors and vendors. The DFAS also functions as a sharedservices provider, delivering services to federal customers outside the DoD. On behalf ofall customers, the DFAS makes over 500 billion in disbursements each year, whileproviding a diverse range of accounting services, customer support, and financial reportingto assist customers in tracking funds and managing their budgets. The range and breadthof accounting, financial management, and support services provided to customers arebriefly outlined below.Audit Readiness Services:The DFAS is leading the way toward the Department’s goal of achieving fully-auditablefinancial statements. The DFAS has now sustained 19 consecutive unmodified opinionson the DFAS Working Capital Fund (WCF), 24 consecutive unmodified opinions on theMilitary Retirement Fund, three consecutive unmodified opinions on Non-Appropriated9
Fund (NAF) Financial Services, 16 consecutive modified opinions for the Medicare-EligibleRetiree Health Care Fund, as well as achieved unmodified audit opinions on Statement onStandards for Attestation Engagements (SSAEs) for the DFAS’ internal functions ofMilitary Payroll, Civilian Payroll, Disbursing, and Contract Pay. In addition, the DFASexceeded its Federal Information System Controls Audit Manual (FISCAM) goals, with a99 percent system controls pass rate.Military/Civilian Pay Services:Annually, the DFAS processes over 135 million pay transactions for more than sixmillion payroll customers, and manages over 1 trillion in Military Retirement and HealthBenefits Funds. The DFAS pays all active and reserve military members, military retireesand annuitants, as well as DoD civilian personnel and the President of the United States.Payroll support to Army field personnel currently includes sustainment of 35 DefenseMilitary Pay Offices (DMPOs) and 11 satellite offices by providing distributed staffing ofover 900 DFAS civilian personnel worldwide.The DFAS is actively adjusting to the evolving needs of current customers throughmore flexible Civilian Payroll service offerings. The DFAS has championed an increaseduse of electronic versus paper payroll documents, resulting in a Department-wide increasein electronic distribution for Affordable Care Act, W-2, and Leave and Earnings Statementpay documents.Commercial Pay Services:The DFAS processes over 13 million commercial invoices while reducing unit coststhrough increased use of electronic commerce (e.g. electronic receipt of contracts,invoices, and receiving reports). This, along with other process improvements, hasresulted in reduced cycle times, fewer errors, and less rework, freeing up additionalpersonnel and customer resources to support the warfighter.The DFAS continues to work with customers to transition workload from legacysystems to the Enterprise Resource Planning (ERP) system environment with DefenseEnterprise Accounting and Management System (DEAMS) for the Air Force, General FundEnterprise Business System (GFEBS) for the Army, Navy Enterprise Resource Planning(Navy ERP) for the Navy, and Defense Agencies Initiative (DAI) for the Defense Agencies.Accounting Operations Services:The DFAS accounts for over 1,300 active DoD appropriations by
The Defense Logistics Agency (DLA) operates three of these activity groups, the Defense Information Systems Agency (DISA) operates . The DLA SCM manages the materiel from initial acquisition, to storage . materials were ordered in support of the 2018 National Defense Strategy’s Readiness and Lethality imperatives.
Defense Advanced Research Projects Agency. Defense Commissary Agency. Defense Contract Audit Agency. Defense Contract Management Agency * Defense Finance and Accounting Service. Defense Health Agency * Defense Information Systems Agency * Defense Intelligence Agency * Defense Legal Services Agency. Defense Logistics Agency * Defense POW/MIA .
UC Pathway Income Fund UC Pathway Fund 2015 UC Pathway Fund 2020 UC Pathway Fund 2025 . UC Pathway Fund 2030 UC Pathway Fund 2035 UC Pathway Fund 2040 UC Pathway Fund 2045 . UC Pathway Fund 2050 UC Pathway Fund 2055 UC Pathway Fund 2060 . CORE FUNDS - 13.7 billion Bond and Stock Investments . Bond Investments Short-Term UC Savings Fund
UC Pathway Funds. UC Pathway Income Fund UC Pathway Fund 2020 UC Pathway Fund 2025. UC Pathway Fund 2030. UC Pathway Fund 2035 UC Pathway Fund 2040 UC Pathway Fund 2045. UC Pathway Fund 2050. UC Pathway Fund 2055 UC Pathway Fund 2060. UC Pathway Fund 2065. CORE FUNDS - 17.0 billion Bond and Stock Investments
TARGET DATE FUNDS - 9.1 billion UC Pathway Funds UC Pathway Income Fund UC Pathway Fund 2020 UC Pathway Fund 2025 UC Pathway Fund 2030 UC Pathway Fund 2035 UC Pathway Fund 2040 UC Pathway Fund 2045 UC Pathway Fund 2050 UC Pathway Fund 2055 UC Pathway Fund 2060 UC Pathway Fund 2065 CORE FUNDS - 12.9 billion Bond and Stock Investments Bond .
CIBC Balanced Fund . CIBC Dividend Income Fund. 3. CIBC Dividend Growth Fund. 3. CIBC Canadian Equity Fund. 3. CIBC Canadian Equity Value Fund. 3. CIBC Canadian Small-Cap Fund . CIBC U.S. Equity Fund. 3 CIBC U.S. Small Companies Fund. 3. CIBC Global Equity Fund . CIBC International Equity Fund. 3. CIBC European Equity Fund. 3. CIBC Emerging .
ELSS Reliance Tax Saver (ELSS) Fund RTSF 20 Arbitrage Fund Reliance Arbitrage Fund RAF 21 Thematic (International) Reliance Japan Equity Fund RJEF 22 Reliance US Equity Opportunities Fund RUSEOF 23 FIXED INCOME Overnight Fund Reliance Overnight Fund ROF 24 Liquid Fund Reliance Liquid Fund RLF 25 Money Market
American Century Variable Portfolios, Inc. Statement of Additional Information (SAI) Supplement VP Balanced Fund VP Capital Appreciation Fund VP Income & Growth Fund VP International Fund VP Large Company Value Fund VP Mid Cap Value Fund VP Ultra Fund VP Value Fund VP VistaSM Fund Supplement dated July 16, 2010 SAI dated May 1, 2010
Research, Development, Test and Evaluation, Defense-Wide Defense Advanced Research Projects Agency Volume 1 Missile Defense Agency Volume 2 . Defense Contract Management Agency Volume 5 Defense Threat Reduction Agency Volume 5 The Joint Staff Volume 5 Defense Information Systems Agency Volume 5 Defense Technical Information Center Volume 5 .
