air force financial management update ms. marilyn …...air force financial management update ms....
TRANSCRIPT
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
• Financial Operations Update
• Workforce Management
• Q & A
2
• FM Strategic Plan – Why?
• FM Enterprise Goals
• Human Capital Strategy Goals
• How You Fit In
FM Strategic Plan Overview
FM Strategic Plan – Why?
“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)
5
Goal 1: Develop and Take Care of the FM Team
• Objective 1.1: Implement Human Capital Strategy
• Objective 1.2: Save Airmen Time
Goal 2: Deliver Financial Management Excellence
• Objective 2.1: Provide Excellent Financial Customer Service
• Objective 2.2: Provide High-Quality Programming, Cost
Estimating, Budget Development, and Execution
• Objective 2.3: Provide Accurate and Auditable Accounting
Support
Goal 3: Provide Financial Management Leadership
• Objective 3.1: Build Airmen/FM Leaders
• Objective 3.2: Support Contingency/Joint Operations
• Objective 3.3: Grow Resource Management Capability
FM Enterprise Goals
6
Human Capital Strategy Goals
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
How You Fit In
Read and discuss with your people
• Understand Air Force Priorities
• Understand FM Priorities
Lead - be an active participant in making things better
• We need your innovative thoughts
• If 10% of our people provide a way to improve what we do,
we can move mountains
Live the Air Force Strategic Imperatives
• Agility – be open to change – be a change agent
• Inclusiveness – be a good teammate and
collaborate with others to produce excellence
Provide feedback
• These are dynamic plans – will be reviewed and
updated
7
SAF/FMB
Budget Update
Maj Gen John Pletcher
Deputy Assistant Secretary (Budget)
FY20 PB Focus Areas
Fiscal Environment
• FY17-19 $50B topline growth from BCA caps…little appetite for large unfundeds
• FY19 on-time appropriation…emergent requirements & diminishing
sources…Reprogramming? Supplemental?
• People and Training
• Cost-effective Maintenance and
Logistics
• Safe, Secure and Effective
Nuclear Deterrent
• Modernization
• Cyber Dominance
• Accelerating Defendable Space
• Prototyping and
Experimentation
• Tailored Acquisition Strategies
• Agile Software Development
• Expanded Competition
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
FY20 Budget Request
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
$204.8BFY19 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
QUESTIONS?
Ms. Ranae Woods
Technical Director, Cost and Economic Analysis Research
Air Force Cost Analysis Agency
SAF/FMC
Cost & Economics
Update
FMC - Cost & Economics
Organizational Structure
Deputy Assistant SecretaryCost & 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)
Ms. Ranae Woods, SL
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 AssistantCost & Economics (FMC)
(Mr. C. Grant McVicker, SES)
AFCAA
Photo not
Available
“What’s Happening?”
Acquisition Decisions
AF Middle Tier Acquisition
Programs (Section 804)
Guidance Memo
Agile SW Cost Estimating
ACAT IB SCPs/ICES
Cost in the AF SPPBE process
Leadership informed risk
Direct integration with
panels
Early involvement with
planning
Data Collection / Cost Assessment Data
Enterprise
Training
DAU BUS-CE – certification standard update
MCEA/AFIT Masters
Space, Launch, and ICBM Systems Division
stood up 4-person OL in support of AF Nuclear
Weapons Center, Hill AFB, UT
0
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
0
20
40
60
80
100
120
140
160
180
# E
stim
ate
s
An
aly
sts
pe
r E
stim
ate
# Estimates
# Analysts per Estimate8 Analysts
Per Estimate
0.8 Analysts Per
Estimate
Special Studies
B-52 – Re-engine
Battlefield Airmen
Uniforms
Undergraduate
Pilot Training
Space Force
Air Force We
Need
$55 programs/$128B in
investment funding
RED: difference
between realistic cost
estimate & budget
Enables Cost
Conscious Decision
Making
POM Cost Risk
Assessment
QUESTIONS?
SAF/FMF
Financial Operations
Update
Mr. Thomas Murphy
Deputy Assistant Secretary (Financial Operations)
FY18 Audit Recap Detail Results
326 311 35 0
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:
• Accounting Processes
• Financial Reporting
• Beginning Financial Balances
• Financial Information Systems
Audit Remediation Approach
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
Audit Remediation Approach NFRs
Prioritization ResultsIm
pa
ct
HIG
HLO
W
Total - 114 (35%)
High Impact, Low ComplexityTotal - 107 (33%)
High Impact, High Complexity
Total - 26 (8%)
Low Impact, High ComplexityTotal - 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
on prioritization of remediation activities that will drive sustainable audit processes in
FY2019 and beyond.
Complexity LOW HIGH
Secretary of Defense Audit Priorities
Asset Type Memorandum SummaryAir Force Alignment with SECDEF Memo
Requirements
Real Property Conduct a full inventory baseline
of Real Property to ensure 100%
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)
Secretary of Defense Audit Priorities
Asset Type Memorandum SummaryAir 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
2019 METRICS PROGRAM
New Data Analytics Dashboard
Capabilities
• Countermeasures are actions taken to mitigate known problems
• Taken at higher levels to reduce work on bases
• 5th step in the 8 step problem solving method
• Applied after validation and analysis of problem
• Examples of countermeasures
• Automatic triggered actions (shown is later slides)
• Target low $ value, low priority and lingering problem cases
• Robotic Process Automation
• Training
• Regional Training Center
Bottom Line: Countermeasures are an aggressive approach to reduce stress on
the field and clean up the books.
Countermeasures
QUESTIONS?
SAF/FME
Workforce
Management Update
Ms. Lori Tucker
Director, Workforce Management and Executive Services
Overview
• FME Successes
• What FM Values
• Your Development
FME Successes
Published FM Strategic Plan & Human Capital Strategy
Education & Training at the Schoolhouse (FMOC, DFMC&S, PFMC)
• Updating Curriculum to meet TODAY’s Needs
• Obtained additional Seats at FMOC for Non- PAQ Civilians
• Stand-up of the Resource Training Center (RTC) (Chief Briscoe Team is leading)
• Published FM LT Training Handbook
Defense Competency Assessment Tool
• All 5XX Competencies are being reviewed and updated
• Competencies that meet TODAY’s FM Workforce and address GAPS
Mission Critical Occupation(s)
• Advocated for 501,510, 511,560s to remain a Mission Critical
• Retain Direct Higher Authority
FM Certification Expanded to NAF Employees (Pilot in FY19/20)
What FM Values
Your Development
• Self Assess
• What are my Training/Development Gaps
• What is my Plan/Opportunities (Short/Long Term Goals)
• Create a MYVECTOR Account open NOW
• Apply for CDE (Window opened on 1 Mar closes 17 April for applicants)
• Select a Mentor and/or be a Mentee
• “Opt-In” to the FM Career Planning Cycle opens 1 APR
• Apply for Leadership opportunities/courses
• Receive Vectoring from FM Senior Leadership on your goals
• Obtain/Maintain your DOD FM Certification and/or CETs
• Maintain credentials DO NOT let them Lapse (OSD Focus Item)
• Utilize SkillSoft, TEI, FMONLINE, FMDLC for great web-based training
• Got Something To Share………
• Write an Article for the FM Comptroller Magazine/SAF Newsletter
If You Are Not Growing…You Are Not Going……
Civilian Tuition Assistance (TA)
• New – TA avail for Doctorate programs (except PAQ Interns)
• Available to assist employees with completion of formal education
• AFI 36-401 governs TA policy
• Does not allow funding for a 2nd
Masters
• Does not allow funding for same level course work as degree held
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
QUESTIONS?