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?