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I n t e g r i t y - S e r v i c e - E x c e l l e n c e Headquarters U.S. Air Force 1 Jamie Morin SAF/FM ASMC Mini PDI Financial Management in an Uncertain.

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Presentation on theme: "I n t e g r i t y - S e r v i c e - E x c e l l e n c e Headquarters U.S. Air Force 1 Jamie Morin SAF/FM ASMC Mini PDI Financial Management in an Uncertain."— Presentation transcript:

1 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Headquarters U.S. Air Force 1 Jamie Morin SAF/FM ASMC Mini PDI Financial Management in an Uncertain Environment 1

2 I n t e g r i t y - S e r v i c e - E x c e l l e n c e National Fiscal Environment 2 National deficit and debt are risks to national security - National deficit and debt are risks to national security - Budget Control Act of 2011 mandated DoD to do its part in debt reduction Budget Control Act of 2011 mandated DoD to do its part in debt reduction Federal Budget Surplus/Deficits Revenues and Outlays Federal Debt Net Interest Federal Outlays % of Federal Outlays % of Federal Budget % of GDP

3 3 Total Budget Trends (Including supplemental and OCO funding through 2014) Notional Sequestration Line

4 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Air Force 2023…Cost Drivers What we need to do today to be viable to execute Defense Strategy Rising Personnel Costs Total Force E/S decreased 14% - FY90 to FY13 MILPERS budget grew by 49% - FY90 to FY13 Cost to Operate the Fleet Largest growth in AF Blue base budget from 1990 to 2013 was in O&M at 92% WSS growing at ~7% per yr above inflation Aging Aircraft Inventory TAI: FY90: 9,032; FY00: 6,192; FY13: 5,500 Average a/c age rising Fighters 23 yrs, Bombers 36 yrs, Tankers 48 yrs FY14 buy of 50 aircraft = ~110 year Recap Rate Recapitalization Opportunity Procurement dropped 49% (constant) - FY90 to FY13 Implementation of should-cost showed ~2%-3% savings realized in FY12 compared to budget levels. Fiscal Environment Topline issue: historical draw downs last 10+ yrs Budget uncertainty – CR, BCA of 2011 and sequestration

5 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Groundwork for the AFs FY15 POM (aka 5-year resource plan) ~65 cost assessments, increased O&S focus Earlier delivery to shape MAJCOM resource plans 5 Shaping Budgets with Analysis The FY15 POM continues on the path toward acquisition excellence by reducing cost risk in our acquisition portfolios.

6 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Investment Cost Assessments Trends/Goals $8.1B 61% $60B $11.9B Cost Risk 33% of RDTE/ Proc $ Billions High confidence, realistic estimates Protect AF TOA On-cost & on-schedule programs Better prepd for top-line pressure Improve Govt negotiation position 6 Making A Difference…% Assessed Up and Cost Risk Down * Cost risk is the difference between valid cost estimate and the available funding

7 I n t e g r i t y - S e r v i c e - E x c e l l e n c e Who We Are: FM Professionals 7 Financial Stewards Advisors Educators Innovation In Action – Professionals in the Face of Adversity

8 Every Dollar Counts Campaign Airmen Powered by Innovation: Over 11,000 submissions Over 500 for SAF/FM Successes Automated Personal Military Compensation Statement Provide Lodging Tax Free Forms at Bases Biggest Single Item: Increase awareness to promote a fiscal responsible culture Financial Improvement Actions 8 11 Create a Culture Change for Financial Improvement FIAR: Audit Readiness by 30 Sep 14 Well designed, aggressive path Asserted Funds Distro to Base Asserted on Civilian Pay (GF $12.2B, WCF $5B) SBIRS Acq Program (not audit ready – corrective actions to be addressed in MOCAS Contracts AU) Spare Engines – Qualified (local system not reconciled to accountable record system) ($9.9B) Missile Motors – Unqualified ($1.6B)

9 9 Audit Readiness Status Accomplishments DescriptionDueUSD(C) PriorityCurrent Status Budget Authority – Fund Receipt/Distribution30-Sep-10SBROpinion - Sustainment Fund Balance with Treasury Reconciliation31-Dec-10SBROpinion - Sustainment Military Equipment, Cruise Missiles, Drones, Aerial Targets 31-Dec-10Existence & CompletenessUnder DoDIG Examination (6/30/12) Fiscal Year 2012 Goals Uninstalled Missile Motors30-Mar-12Existence & CompletenessPreparing assertion documentation Spare Engines29-Feb-12Existence & CompletenessAsserted Funds Distribution to Base31-Mar-12SBRPreparing assertion documentation (CAPs) MDAP (SBIRS)30-Sep-12SBRIn Discovery Stage Fiscal Year 2013 Goals Reimbursable Budget Authority (RBA)31-Dec-12SBRIn Discovery Stage (CAP) Hire to Retire (Civilian Pay)31-Dec-12SBRIn Discovery Stage Hire to Retire (Military Pay)31-Mar-13SBRIn Discovery Stage Real Property30-Jun-13Existence & CompletenessIn Discovery Stage MILSTRIPS31-Jul-13SBRNot Started Vendor Pay31-Aug-13SBRNot Started Fiscal Year 2014 Goals Reimbursable Work Order (RWO)31-Dec-13SBRIn Discovery Stage (CAP) Contracts (MOCAS)31-Dec-13SBRIn Discovery Stage Net Outlays31-Dec-13SBRIn Discovery Stage Financial Statement & Compilation31-Dec-13SBRIn Discovery Stage Spare Parts - AF Managed/AF Possessed30-Jun-14Existence & CompletenessNot Started Munitions30-Jun-14Existence & CompletenessIn Discovery Stage Future Goals Spare Parts - Ctr Managed/Ctr Possessed30-Sep-15Existence & CompletenessNot Started Spare Parts - Ctr Managed/AF Possessed30-Sep-15Existence & CompletenessNot Started Inventory (WCF)31-Dec-15Existence & CompletenessIn Discovery Stage General Equipment30-Sep-15Existence & CompletenessNot Started Government Furnished Equipment31-Mar-16Existence & CompletenessIn Discovery Stage Scarce resources drive need for more disciplined fiscal controls

10 Summary Sequestration is a FYDP challenge, not just an FY13 challenge Uncertainty for FY14 and beyond… What should the Air Force look like in 2023? What capabilities can we afford? What are the long term impacts on our people? 7 Your role is critical in this uncertain fiscal environment

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