Appropriations, Congress & Budget Execution
Appropriations, Congress& Budget Execution“Color of Money 101”29 August 20111
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Barb Hebert(256) 922-8127barbara.hebert@dau.milDefense Acquisition UniversitySouth Region CampusHuntsville, AL 35805http://www.dau.mil2
Course Topics Life Cycle CostFunding PoliciesPlanning, Programming, Budgeting & ExecutionCongressional EnactmentDay to Day Budget ActivitiesOther “Colors of Money”3
Service % of DoD Budget(1947-2010)120.0%100.0%DoD80.0%Air Force60.0%Navy40.0%20.0%ArmyConstant 2006 ime4
DoD SupplementalAppropriationsDoD Supplemental AppropriationsSupplemental billsBridge funding 75.8DoD budget (includes nuclear-weaponsfunds) 72.6 19.1 273.2 8.6 295.5 17.3 382.7 65.3 400.5 25.0 420.0 50.0 70.0 441.5 438.0 159.3 196.2 65.9 67.5 75.9Dollars in billions 19.8 93.4 162.6 511.0 530.7 548.9 481.4 344.8 315.7 292.3 304.1 335.5 362.1 455.3 465.8 520.9 559.0 601.4 677.6 652.7 693.3 0102011Total Yearly Spending5
Military Force StructureArmy BrigadesNavy ShipsUSAF Fighting SquadronsStrategic Bombers1990Today76546823604528839154Current Plan Represents 0% Real Growth in Out-Years!Former SECDEF Gates Warned of “Dire Consequences of Less Than2-3% Real Growth in Force Structure and Modernization AccountsGiven the Threat Environment We Face”6
FY 2012 Budget“Total defense spending is declining as we complete the combat missionin Iraq.” The FY 2012 DoD budget requests a total of 670.9B: 553.1B for the DoD base budget, which excludes funding directlyrelated to overseas contingency operations (OCO) 117.8B for OCO requirements, which is 41.5B lower than the FY 2011request Per Former SECDEF Gates’ Efficiency Initiatives, DoD continues Top Linereductions into FY 12-16 with 78B in savings and changes for FY 2012 –FY 2016: Efficiencies in how DoD is staffed,organized, and operated ( 54B) Restructuring and repricing the JointStrike Fighter program ( 4B) Adjustments to economic assumptionsand many other adjustments ( 14B) Reducing the size of our ground forcesin FY 2015 – FY 2016 ( 6B)For more information, visit the website for the Office of the Under Secretary of Defense (Comptroller) at www.budget.mil.
Balancing the Pillarsof DefenseInfrastructure& OverheadModernization& InvestmentForceStructureFuture Readinessand Investment NeedsSustainabilityForceReadinessCurrent Readinessand Operating NeedsResources & Constraints8
From Requirement to ullPolicies MFP FYDP DPPG POMBES RMD nalConceptPlanning, Programming,Budgeting & ExecutionFeedbackCommitmentReprogrammingBudget AuthorityObligationOutlayBudgetExecutionForce ssSustainability9
Life Cycle CostTotal cost Life Cycle Cost is theto the Governmentfor a system over its .Entire life Three ways to look at Life Cycle Cost: WorkBreakdown Structure AppropriationsCategories Cost-Research & DevelopmentInvestment-Operations & Support-Disposal-10
The Defense Acquisition Management SystemDefense Acquisition ManagementFramework- 2003 (Old)User Needs &Technology entProgramInitiationCSystem Development& DemonstrationFocus of major changesUser NeedsTechnology Opportunities & entDecisionProduction Post PDRAssessmentPDR PDRorPost-CDRAssessmentOperations &SupportDefense Acquisition ManagementSystem – 2008 (New)CEngineering andManufacturing ewConceptDecisionIOCIOCProduction &DeploymentFOCOperations &SupportFRPDecisionReview11
Life Cycle CostCategoriesNotional % of LCCSpace systemSurface vehicleShip 18% 9% 1%ProgramCost %R&DCostMSATD 16% 53 - 54% 66 - 68% 66% 37% 31%Operating&SupportCost 0% 0 - 1% 0 - 2%DisposalCostInvestmentCostEMDProduction, Fielding / Deployment& Operational Support12
Life Cycle CostCompositionDevelopment CostRDT & EPrime MissionEquipmentRDT & ESupport rime MissionEquipmentMILCONFacilitiesLifeCycleCostO & M, & MILPERSOperation & SupportDisposalWeaponSystem CostProcurementSupport ItemsProcurementCostProcurementInitial Spares13
From Requirement to ullPolicies MFP FYDP DPPG POMBES RMD nalConceptPlanning, Programming,Budgeting & ExecutionFeedbackCommitmentReprogrammingBudget AuthorityObligationOutlayBudgetExecutionForce ssSustainability14
Major Appropriation CategoriesAPPNCATSCOPE OF WORK EFFORTFUNDINGPOLICYOBLIGATIONPERIODRDT & E RDT&E Activities & Exp, AIS E/SW@ R&D FacilitiesIncremental2 YearsPROC(SCN)Production Labor/HW, InitialSpares, AIS E/SW 250KFull3 Years5 Years - SCNO&MReplenishment Spares, CivilianSalaries, Travel, Fuel, Supplies,Minor Const 750K, AIS E/SW 250KAnnual1 YearMILPERS Military Pay & Allowances, PCSMoves, Retired Pay AccrualAnnual1 YearMILCONFull5 YearsMajor Construction Projects 750K15
Annual Funding PolicyApplicable Appropriations:Operations & MaintenanceMilitary PersonnelBasic Budgeting Policy:Annual budget request will be limitedto obligation authority necessary tocover all expenses during the 12month budget period (fiscal year).Additional Guidance (Exception): Statutory provision (PL 105-85,Sec. 801 & Title 10,U.S.Code 2410a) allows funding a severable servicecontract/task beginning in one FY and ending in the next FY, all in thefirst year, if the contract period does not exceed 12 months16
Incremental Funding PolicyApplicable Appropriation:Research, Development, Test & EvaluationBasic Budgeting Policy:Annual budget request will be limited to budget authority necessary tocover all costs expected to be incurred during that fiscal year.Incremental Funding PolicyProvides flexibility to the government in the uncertainenvironment of RDT&E Exception: Contracted efforts 12 months but 18months: Service or Agency comptroller may approverequest for funding in single FY if one of following istrue:1) Effort not logically divisible2) Infeasible to shorten contract length3) Expect no bids if not “fully” funded17
Full Funding PolicyApplicable Appropriations:Procurement and Military ConstructionBasic Budgeting Policy:Annual budget request must cover the total cost to deliver agiven quantity of complete, militarily usable end items in a 12month funded delivery period.Governing Concepts:- Usable End Items - No piecemeal procurement of systems ispermitted.- Funded Delivery Period - 12 monthperiod starting with delivery offirst item.18
Funding Product ImprovementsIF . . nt &Test with . . .DT or RDT&EYESNOProcurementO&MFUND Fabricationwith . . .ProcurementFUND Installationwith . . .Procurement19
Building the Program BudgetWhat Do We Need? Program DirectionA statement of what the program manager is expected to do Program Work Breakdown StructureA translation of the program direction into a statement of the tasks required toachieve the program objectives{ Cost Estimate Master ScheduleDevelopmentInvestmentO&SDisposalThe sequence of tasks in the work breakdown structure.– Showing when each task begins and ends– How the tasks are related to another– How workload for each task is distributed within the time period So to build our program budget we would take our Cost Estimate(in constant dollars) and phase over time using: Master Schedule Appropriate funding policies by appropriation account Then we would ESCALATE our estimate into THEN-YEAR Dollars tosubmit as a Budget Request20
Escalation Constant / Base Year Dollars- Tied to Specific year, No Inflation- Used for Cost Estimates- Allows comparison of program costs between years Current / Then Year Dollars- Includes Inflation and Outlay RatesInflation - general price level increases over timeOutlay rates - not all dollars are expended inyear obtained- Used for Budget Estimates (POM/BES, PB FYDP)21
From Requirement to ullPolicies MFP FYDP DPPG POMBES RMD nalConceptPlanning, Programming,Budgeting & ExecutionFeedbackCommitmentReprogrammingBudget AuthorityObligationOutlayBudgetExecutionForce ssSustainability22
PPBE OverviewPPBE is DoD’s primary resource allocation system. The objective of PPBE is to provideWarfighters with the best mix of equipment, personnel, and support attainable withinestablished fiscal constraints. The end result of the PPBE process is the DoD portion ofthe President’s Budget.23
PPBE Phases Planning– Review Threat / Assess Capabilities– Develop Guidance Programming– Turn Guidance into Achievable andAffordable Packages / Programs– 5-Year Defense Program (Future YearsDefense Program) Budgeting– Scrub Budget year– Prepare Executable & Defensible Budget– First Year of FYDP Execution– Measure Performance Against Plan– Assess Effectiveness of ResourceAllocations24
PPBE Planning Phase Lead: Undersecretary of Defense for Policy (USD(P)) Strategic Level Documentation Focus– Review Threat / Assess Capabilities– Update Strategy– Develop Guidance for Programming & Budgeting Unconstrained by Resource Realities Output: “Defense Planning & Programming Guidance”(DPPG)How Much Defense is Enough?25
PPBE ProgrammingPhase Lead: Director, CAPE (Cost Assessment & Program Evaluation)(OSD) Focus: Compliance with DPPG Turns DPPG Into Achievable / Affordable Programs / Packages Constrained by Resource / Fiscal Realities Want to Get Most “Bang for the Buck” for DoD as a Whole Programs Can Be “Killed” / “Zeroed Out” Covers the 5-Year Future Years Defense Program (FYDP) Begins Program Office’s Involvement R&P Forms Begin to be Developed Output: “Resource Management Decisions” (RMDs)How Much Defense Can We Afford?26
PPBE Budgeting Phase Lead: USD (Comptroller) Focus: Prepare Executable & Defensible Budget Pricing Funding Policies Phasing Funding Profile Budget Execution Scrub P-Forms / R-Forms Scrub Budget Year — First Year of FYDP Desired “Success” for Program Management Office No Funding Changes! Output: “Resource Management Decisions” (RMDs)Is the Budget Executable & Efficient and Can ItBe Effectively Defended to Congress?27
PPBE Execution Review Lead: USD (Comptroller) Focus: Assess Effectiveness of ResourceAllocations Develop Performance Metrics Measure Performance Against Plan Assess Actual Output Against Planned Performance Adjust Resources to Achieve Desired PerformanceGoals Done Concurrently in Budgeting PhaseHow Well Are We Executing Current Funding?28
PPBE — Planning Phase FEB/MARAPR/SEPPresidentNational Security CouncilCIA / DIA / JCS / OSDPlanning Phase Focus:NSSOSDLevelJCSLevel(JCS,COCOMs,SERVICES) Threat vs. Capabilities Update Strategy Guidance for Programming &BudgetingCIA – Central Intelligence AgencyCOCOM – Combatant CommanderCPR – Chairman’s Program RecommendationD, CAPE – Director, Cost Assessment & Program EvalDIA – Defense Intelligence AgencyDPPG – Defense Planning & Programming GuidanceFEAs – Front End AssessmentsJCS – Joint Chiefs of StaffNDS – National Defense StrategyNMS – National Military StrategyNSS – National Security StrategyOSD – Office of the Secretary of DefenseQDR – Quadrennial Defense ReviewUSD(P) – Undersecretary of Defense (Policy)VCJCS – Vice Chairman, Joint Chiefs of StaffEvery4 YearsNDSNMSQDRCPRFEAsDPPGD, CAPE / VCJCS /USD(P)To DoD “LargeGroup” / IntegratedProgram / BudgetSubmission &ReviewNote: PPBE and Resource Allocation ProcessOverlap charts based on DepSecDef 9 Apr 2010Memo: “Procedures and Schedule for Fiscal Year(FY) 2012-2016 Integrated Program/BudgetReview.” Further process revisions areanticipated during the FY12-16 POM / BES29summer / fall reviews.
PPBE — IntegratedProgram / Budget ReviewJULFEAsOSD YDPUpdate* TBD3-Star GroupSECDEF/DEPSECDEFPOMSLRG* & DAWG*JCSCPAProgram Review focus: Compliance with DPPGUSD(C) /OMBDECNOVOCTDoD“Large Group”CPMsJAN / FEBBES – Budget Estimate SubmissionCAPE – Cost Assessment & Prgm EvaluationCOCOM – Combatant CommanderCPA – Chairman’s Program AssessmentCPM – Capability Portfolio ManagerDAWG – Deputy’s Advisory Working GroupFYDP – Future Years Defense ProgramMBI – Major Budget IssuesOMB – Office of Management and BudgetPB – President’s BudgetPOM – Program Objectives MemorandumRMD – Resource Management DecisionSLRG – Senior Leader Review GroupRMDsAdv Questions /OSD/OMB Budget HearingsMBI*PBFYDPUpdateServices / PEO / PMAnswer / Reclama*Budget Review focus:- Pricing- Phasing- Funding Policies - Budget Execution30
Resource AllocationProcess OverlapCY10CY11CY12J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D3rd Yr2nd YrExecutionFY10FY 10 and priorFY11EnactmentPBFY12FY13PlanningFY 12-16DPPG2nd YrExecutionFY 113rd YrFY 11 and priorProgram/BudgetingFY 12-16 POMFY 12 BESPBPlanningFY 13-17 DPPGFY142ndExecutionEnactmentFY 12FY 12 and priorProgram/BudgetingFY 13-17 POMFY 13 BESEnactmentPBExecFY13 &priorFY 13Program/BudgetingPlanningFY 14-18 DPPGFY 14-18 POMFY 14 BESDPPG – Defense Planning & Programming GuidancePB – President’s BudgetPOM – Program Objectives MemorandumBES – Budget Estimate Submission31
Future Years DefenseProgram (FYDP)DOD APPROPRIATIONSMAJORFORCEPROGRAMSStrategic Forces(1)General Purpose Forces(2)Command, Control, Communications, Intell & Space(3)Mobility Forces(4)Guard & Reserve Forces(5)Research and Development(6)Central Supply & Maintenance(7)Training, Medical, and Other Personnel Activities(8)Administration and Associated Activities(9)Support of Other Nations(10)Special Operations Forces(11)AIRARMYNAVYFORCEDEFAGENCIESOTHER32
From Requirement to ullPolicies MFP FYDP DPPG POMBES RMD nalConceptPlanning, Programming,Budgeting & ExecutionFeedbackCommitmentReprogrammingBudget AuthorityObligationOutlayBudgetExecutionForce ssSustainability33
Why Do We Care AboutCongress ?Article I, Sections 8 & 9 No money shall be drawn from the Treasury, but in consequenceof Appropriations made by Law Congress shall have power to Provide for the common defense of the United StatesDeclare warRaise and support ArmiesProvide and maintain a NavyMake rules for the government and regulation of the land and navalforcesLay and collect taxesPay the debtsArticle II, Section 2 The President shall nominate, and by and with the Advice andConsent of the Senate, shall appoint Officers of the United StatesCongress Holds “The Power of the Purse”34
112th Congress, 1st Session(Jan 3,2011 – Jan 3, 2013)House – 435 members 193 Democrats 242 Republicans 6 Nonvoting delegatesSenate – 100 Members 51 Democrats 47 Republicans 2 IndependentsFew with military experience92 (21%)26 (26%)35
CongressionalEnactment ProcessThree-Step Process:1. Budget Resolution2. Authorization Act3. Appropriations Act36
House & Senate BudgetCommittees Established by Budget and ImpoundmentControl Act of 1974 Work With Congressional Budget Office Issues on Projected Spending / Revenue Levels Revenue and Appropriations Committees Draft Concurrent Budget Resolution (CBR): Overall Budget Plan Spending Ceilings for Each Major GovernmentFunction (e.g. National Defense) Resolution is Not Law Congress Usually Follows the Guidelines 60% Majority Vote Needed to Override37
National DefenseAuthorization Act Authorization Committees House Armed Services Committee (HASC) Senate Armed Services Committee (SASC) Sets Policy Provides Authorization for Each DoDAppropriation Account Annual Authorization Law Provides: Program ApprovalProcurement QuantitiesPersonnel End StrengthFunding Ceilings for ProgramsPolicy38
HASC / SASCSubcommittees (112th)House Armed Services Subcommittees Tactical Air & Land ForcesMilitary PersonnelOversight and InvestigationsReadinessSeapower and Projection ForcesStrategic ForcesEmerging Threats and CapabilitiesDefense Acquisition Reform PanelChairman Buck McKeon R-CARanking Member Adam Smith D-WASenate Armed Services Subcommittees Air & Land ForcesEmerging Threats & CapabilitiesMilitary PersonnelReadiness & Management SupportSeapowerStrategic ForcesChairman Carl Levin D-MI39Ranking Member John McCain R-AZ
Appropriations Act Appropriations Committees House Appropriations Committee (HAC) Senate Appropriations Committee (SAC) Provides Budget AuthorityHAC Chairman Hal Rogers R-KY Permission to Obligate Does Not Provide Dollars Per Se 12 Annual Appropriations Bills DefenseMilitary ConstructionEnergy and Water Development9 othersSAC Chairman Daniel Inouye D-HI Normally Follows Lead of Authorizing Committees40
HAC / SACSubcommittees (112th)HAC Subcommittees Agriculture, Rural Development, FDA andRelated Agencies Commerce, Justice and Science and RelatedAgencies Defense (HAC-D) Energy and Water Development Financial Services and General Government Homeland Security Interior, Environment, and Related Agencies Labor, Health and Human Services, Educationand Related Agencies Legislative Branch Military Construction, Veteran’s Affairs andRelated Agencies State, Foreign Operations and Related Programs Transportation, Housing and Urban Developmentand Related AgenciesSAC Subcommittees Agriculture, Rural Development, FDA, andRelated Agencies Commerce, Justice, Science and RelatedAgencies Defense (SAC-D) Homeland Security Interior, Environment, and Related Agencies Labor, Health and Human Services, andEducation, and Related Agencies Energy and Water Development Financial Services and General Government Legislative Branch Military Construction, Veterans Affairs, andRelated Agencies State, Foreign Operations and RelatedPrograms Transportation, Housing and UrbanDevelopment, and Related Agencies41
Authorization vs.AppropriationAuthorization BillAppropriation Bill Authorizes a Program Specifies Its General Aim& Conduct Usually Puts a Ceiling onMonies that Can Be Usedto Finance It Grants the BudgetAuthority for the Program Budget Authority May BeAbove or Below Whatwas AuthorizedMother, may I .PERMISSIONDad, can I have some dough to .FUNDING42
Congressional EnactmentTimetableJANFEBMARAPRMAY1515 NATEOCT“TARGET”FISCALYEARFLOORHRNGS MARKS FLOORCONF RESOLUTIONHRNGS MARKS FLOOR FLOORHASC HRNGSMARK-UPSASC HRNGSBILL / RPTFLOORMARK-UPFLOORFLOORCONF/RPTACTFLOORBILL / RPTHOUSESEPHAC HRNGSSAC HRNGSMARK-UPBILL / RPTFLOORMARK-UP FLOORFLOORCONF/RPTFLOORBILL / RPTACT 43
DoD Involvement inCongressional EnactmentFEBCongressMARCBOReportAPRMAYConcurrent BudgetResolutionAuthorizations ProcessJUNJULAuthorizationConferenceAppropriations ProcessPresident(OMB)Departmentof oDBudgetBased on RMDsMilitaryDepartmentsAUGServicesPOM / BESSEPTOCTNational onmentStaffer Days,Testimony,& AppealsAllocationSub- AllocationAllotmentBudget Execution44
Appeals to Congressional MarksGeneral Rules Between Congress & DoD There are Two Independent Phases Subject to Appeals Authorization Appropriation Keep Actions Pertaining to the Two Phases Separate Appeal to Next Committee of That Phase to Considerthe Budget Request Authorization:Appropriation:HASCHAC DollarsProduction QuantitiesEnd Strength (Manpower)LanguageSASCSACConference CommitteeConference Committee Appeal for Amount In - or Closest To - President’sBudget (of the Prior Two Marks) Acceptable to Appeal45
Continuing Resolution(CR) Authority Occurs When Congress Fails to Pass Appropriations Act Priorto Start of Fiscal Year (01 October) Joint CR Authority (Passed by Both Chambers) Must beSigned by the President Is Stop-Gap Spending Authority Allowing Federal Governmentto Continue Operating Allows Obligation of Funds at the Lesser of: Normal Rate Based on Last Year’s Appropriation Normal Rate Based on Lowest Congressional Mark New Start Programs NOT PERMITTED Congressional Special Interest Programs may have SpecificDirection Operates Until Annual Appropriations Request Becomes Law Covers Limited Time PeriodNine (9) Continuing Resolutions through 8 April 2011Funded most agencies at FY 2010 levels; No New Starts46
FROM REQUIREMENT TO CAPABILITYLife EnvironmentPOEAnnualFundingPlanning, Programming,Budgeting, and Execution ProcessFundingFullPolicies FundingIncrementalFundingMFP FYDP GDF JPG POMBES CP FOL PBD opriationLawsBudget Authority ReprogrammingFeedbackCommitment Obligation ExpenditureBudgetExecutionOutlayForce StructureModernizationOperational CapabilityReadinessSustainability
Apportionment ProcessBudget & Accounting Act of AllocationSub-AllocationAllotmentProvides BudgetOSD MOProgramManagementOffice- Investment-full amount- Expense-quarterly- Impoundment-Defer/RescindWithhold- Admin- TaxesWithhold- Admin- Taxes- TaxesNow PMO can actuallyuse the BA48
Monetary ConceptsBudgetAuthorityCredit CardSpendingLimitAdministrativeReservationof FundsCommitmentVerificationofAvailableFunds- Purpose- Time- AmountLegalReservationof ite Checkto CreditCardCompanyOutlayCheck clearsyouraccount49
Examples of Appropriation Structure RDT&E– Appropriation: 3600F (RDT&E, Air Force)– Budget Activity: 03 - Advanced Technology Development– Program Element: 0603205F- Flight Vehicle TechnologyIntegration Procurement– Appropriation: 2032A (Missile Procurement, Army)– Budget Activity: 02 - Other Missiles– Line Item: 003 - Hellfire System O&M– Appropriation: 1804N (Operations & Maintenance, Navy)– Budget Activity: 01 - Operating Forces– Activity Group/Sub Activity Group: Air Operations / Base Support50
Below Threshold Reprogramming*Amounts are Cumulative Over Entire Period of Obligation AvailabilityAPPRNMAX INTOMAX OUTLEVEL OF CONTROLRDT & ELesser of 10 Mor 20%**Lesser of- 10 M or- 20%Program ElementPROCLesser of 20 M or 20%**Lesser of- 20 M or- 20%Line ItemBudget Activity(or Defense Agency)OBL AVAIL2 Years3 YearsSCN: 5 Years 15 MNone , unlessotherwisespecifiedMILPERS 10 MNo SpecificCongressionalRestrictionBudget Activity1 YearMILCONLesser of 2 M 25 %No SpecificCongressionalRestrictionProject5 YearsO&MSome BA 1 Sub-ActivityLimitations on Decreases(Operating Forces)1 Year* Reference Source Overall Chart: USD (C) Memo; SUBJECT: FY 2006 Below Threshold Reprogramming Authority Policy,10 Feb 2006. ** Reference Source: USD(C) Memo, 5 Jan 2010, SUBJECT: DD 1414, Base for Reprogramming Actions51
Appropriation Life1234Years5 6 78910 11O&MRDT&EProcurementShipsMILCONMILPERSCurrent Period: Available for new obligations, obligationadjustments, expenditures, and outlaysExpired Period: Available for obligation adjustments,expenditures, and outlaysCancelled: Unavailable for obligations, obligation adjustments,expenditures, and outlays52
Obligation PlanWhat····HowSpending PlanMonthly PredictionAll Available YearsRequired for Each ProgramElement / Line Item· Anticipated Obligation Rate· Don’t Show Preponderance of:·· 1st Quarter Awards·· 4th Quarter AwardsDeviation ReportWho· Variances: Planned vs Actual· PMO Written Explanation· Each Month More Vulnerable:·· Potential Billpayer·· Report Card/Predict Trends· Prepared by PMO· Coordinated with PCO· Reviewed by ComptrollerEach Budget UpdateWhy· Supports Budget Enactment· Analyze for Budget Execution· If Not On Plan. (Maybe NotA Firm Requirement)· Best Prediction for FuturePerformanceDecisions····Basis for BES & Pres BudgetBasis for AppropriationImpacts on Program ReviewsImpacts on Billpayer Exercises53
Execution - OSD BenchmarksObligation & Expenditure Execution us: Focus: ObligationsYr2100%90%96%--Yr3---100%---- No Specific Benchmark54
Fiscal Laws Misappropriation Act[Title 31, U.S. Code, Sec 1301] Requires funds to be used only for the purposes andprograms for which the appropriation was made Bona Fide Need Rule [Title 31, U.S. Code, Sec 1502 ] Requires funds to be used only for needs or services inthe year(s) of the appropriation’s obligation period Anti-deficiency Act[Title 31, U.S. Code, Sec 1341 & 1517 ]ColorPurposeYearTimeAmountAmount Prohibits making or authorizing an obligation in excess of theamount available Forbids obligation to pay money from the US Treasury in advanceof an appropriation Requires agency to fix responsibility for violations of the Act55
Other “Colors of Money” Organizations can submit candidates forother sources of funding– Not Appropriated directly to them– May use existing funds to reimburseWorking Capital Funds– Tap Industry to fund upfront onredesign– Receive Congressional Plus-Ups forspecial interest items56
Examples of Other Fund Sources Operating and Support Cost Reduction (OSCR) Working Capital Fund (WCF) LogisticalOperations (LOGOPS) Projects Continuous Technology Refreshment (CTR) Reliability Improvement Process (RIP) National Center for Defense Manufacturing &Machining (NCDMM) Process Technologies for Replacement PartsProduction (PTRPP) Manufacturing Technology (ManTech)57
Summary Understanding the Defense AcquisitionProcess Gives You an Edge InAcquiring Funds For Your ProgramsWork with Your Business FinancialManagers to Get All the s You Needto Make Your Program a Success!Acquisition Community Connection (ACC) Websitehttps://acc.dau.milDoD Comptroller Websitehttp://comptroller.defense.gov58
Back Up Slides59
Supply Management Operating and Support CostReduction (SM-OSCR)Objective:Save the field money by. Reducing secondary item acquisition costs and/or Extending the life of the Item Reducing number of events (removals/repairs) and/or cost per eventPurpose:The OSCR Program uses WCF funds to facilitate life cycle costsavings/avoidance in the field by re-designing, prototyping, and/ortesting spare parts for presently fielded systems.Program Criteria: Program will fund secondary item redesign/reengineering that involves:– Individual item or an assembly of items– Prototype– Test Will not fund production or implementation of kits Will not fund studies Requires validated economic analysisUti
Planning, Programming, Budgeting & Execution . President’s Budget. Commitment Reprogramming . Budget Authority Obligation Outlay . Budget . Execution. Congressional . PPBE Overview . 23 . PPBE is DoD’s primary resource allocation system. The objective of
Budget (Annual Budget) Revenues Expenses Multi-year (Actual; Budget; Budget) Project (program) Budget A project budget is the estimated financial plan for a project, for which funding is required. The total program budget is not just the grant r
Generally this means that the object of an appropriations bill is to make appropriations. Article IV, Section 25 of the Michigan Constitution stipulates: "No law shall be revised, altered or amended by reference " An appropriations bill cannot direct a State department or agency to use appropriations to do something contrary to
A--2 NEW JERSEY STATE LEGISLATURE BUDGET AND APPROPRIATIONS COMMITTEES SESSION OF 2021-22 SENATE BUDGET AND APPROPRIATIONS COMMITTEE Paul A. Sarlo (D), 36th District (Parts of Bergen and Passaic),Chair Sandra B. Cunningham (D), 31st District (Part of Hudson),Vice-Chair Dawn Marie Addiego (R), 8th District (Parts of Atlantic, Burlington and Camden)
Apr 23, 2019 · The budget narrative, sometimes called the budget justification, is a companion to the budget (table, spreadsheet, or forms). While the budget table gives the total cost for each category of the budget, the budget narrative giv
Budget Authority (BA): Authority to commit funds of the Federal Treasury. Congress provides this authority through annual appropriations acts and substantive legislation, which authorizes direct spending. The President's budget requests the Congress to appropriate or otherwise provide
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struction, military family housing, civil defense, and military nu-clear warheads, for which requirements are considered in connec-tion with other appropriations Acts. The President’s fiscal year 2017 budget request for activities funded in the Department of Defense Appropriations Act tota
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