Planning, Programming, Budgeting, and Execution

Planning, Programming, Budgeting, and Execution
PPBE Process Show Slide #1: PPBE Process Title: Conduct Overview of the Planning Programming Budgeting and Execution Process References: FM 1-06 and DFAS-IN REG 37-1. Section I. Administrative Data Academic Hours/Methods 03 hrs. / 00 min. DSL (large or small group discussion) 00 hrs. / 00 min. PE (practical exercise (Hands On) 00 hrs. / 00 min. Test 00 hrs. / 00 min. Test Review 00 hrs. / 00 min. Total Hours Section II. Introduction: Method of Instruction: DSL (large or small group discussion) Facilitator's to Learner Ratio: 1:30 Time of Instruction: 00 hrs. / 05 min. Media: PowerPoint Presentation Facilitator's Material: Each primary Facilitator should possess a lesson plan, slide deck, course handouts, and summary sheet containing FM 1-06 and DFAS-IN REG 37-1. . Learner’s Material: Learners should possess course handouts, summary sheet containing FM 1-06, DFAS-IN REG 37-1 with access to Bb and standard classroom supplies. Facilitator's Note: "All required references and technical manuals will be provided by the School House“ Motivator (Concrete Experience): Anyone here ever do any financial planning for the future? Example: House / Land / Travel What’s the first thing you do when planning? Set Goals! Maybe you would like a big house, some land, or to travel the world. These goals help you decide how much you need to put away. Later on you may realize you don’t have enough money for all your plans (can’t afford the big house and the yearly trips). So you have to cut some plans or projects because a lack of funds. In order to save this money up you have monthly or yearly budgets (putting your money aside). Later on you actually spend the money within your budget doing your goals and plans. Note: Loosely put- Planning is 1st, Programming is 2nd, Budgeting is 3rd, and Execution is 4th. Instructional Guidance: Before presenting this lesson, instructors must thoroughly prepare by studying this lesson and identified reference material. Also, provide the students with situational awareness of the Operational Environment (OE) variables and actors. Planning, Programming, Budgeting, and Execution 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Terminal Learning Objective
Action: Conduct overview of the Planning Programming Budgeting and Execution (PPBE) process Conditions: FM Leaders in a classroom environment working as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion. Standard: With at least 80% accuracy (70% for international learners) you must: Analyze the military resource management system Review budget cycles time period designations Identify phases for the Planning Programming Budgeting and Execution (PPBE) process Show Slide #2: Terminal Learning Objective Facilitator Note: Read/State the TLO Action: Conduct overview of the Planning Programming Budgeting and Execution (PPBE) process Conditions: FM Leaders in a classroom environment working as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion. Standard: With at least 80% accuracy (70% for international learners) you must: Analyze the military resource management system Review budget cycles time period designations Identify phases for the Planning Programming Budgeting and Execution (PPBE) process Safety Requirements: In a training environment, leaders must perform a risk assessment in accordance with DA PAM , Risk Management. Leaders will complete a DD Form 2977 DELIBERATE RISK ASSESSMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations (METT-TC). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation Risk Assessment Level: Low. Environmental Considerations: Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so, you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Refer to FM Environmental Considerations and GTA ENVIRONMENTAL-RELATED RISK ASSESSMENT. Evaluation: No exam with this lesson. Instructional Lead In: Through PPBE, the Army develops a strategy (a plan), a program, and a budget to develop combat equipment, doctrine, and combat forces for the next war. This lesson explores the purpose and background of PPBE. It also identifies the key terms, and players in this complex but critical defense system. There are four phases of PPBE, this lesson will explore each phase - Planning, Programming, Budgeting, and Execution to illustrate its importance to Army resource managers. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Management System Should:
A Military Resource Management System Should: Identify and prioritize resource requirements Allocate resources to requirements with highest priorities Link resources to goals and objectives Justify military goals and priorities Tie resource decisions to the performance achieved Provide a continuous flow of information Show Slide #3: A Military Resource Management System Should: Learning Step/Activity #1: Analyze the military resource management system Method of Instruction: DSL (large or small group discussion) Facilitator's to Learner Ratio: 1:30 Time of Instruction: 00 hrs. / 25 min. Media: PowerPoint Presentation, Printed Reference Materials 21st Century Soldier Competencies: The 21st Century Soldier Competencies are essential to ensure Soldiers and leaders are fully prepared to prevail in complex, uncertain environments. Throughout the lesson discussions, seek opportunities to link the competencies with the lesson content through the Learner’s experiences. Facilitator's Note: Before facilitating this lesson, ask the learners which of the 21st Century Soldier Competency do they think pertain to this lesson? Facilitate a discussion on the answers given and at the end of the lesson revisit it and see if the learners still believe their choice are the same. Note: For this lesson these competencies should be talked about. #1. Character and accountability #3. Adaptability and initiative #5. Teamwork and collaboration #6. Communication and engagement (oral, written, and negotiation) #7. Critical thinking and problem solving #8. Cultural and joint, interagency, intergovernmental, and multinational competence #9. Tactical and technical competence (full spectrum capable) Facilitator’s Note: (Facilitator read and facilitate discussion using the slide and asking the following question) Why do we have to have a RM system? Identify and prioritize resource requirements Allocate resources to requirements with highest priorities Link resources to goals and objectives Justify military goals and priorities Tie resource decisions to the performance achieved Provide a continuous flow of information Simply put, because we have limited funds availability. A. Since the 1960s the PPBE has controlled the Army process for resourcing units, installations, and activities. Senior leaders and financial managers at all levels are active participants in the PPBE process. The Army requires a responsive resource management system for three primary reasons: 1. First, it is a crucial management tool in the primary and ongoing mission to provide the best possible mix of forces, equipment, and support to the Unified Combatant Commanders (UCCs). It addresses the challenge of getting the right resources in the right place at the right time. A sound resource management system allows Army components to determine goals, develop plans, and evaluate progress. The Office of the Secretary of Defense (OSD) and Headquarters, Department of the Army (HQDA) provide guidance and integration oversight in this effort. 2. Second, the DOD and the Army are accountable to Congress and the public for good stewardship of public funds and compliance with Congressional guidance. This responsibility can only be accomplished through a resource management system that not only accounts for all expenditures but also tracks results against objectives and expectations. 3. Third, a sound resource management system helps determine priorities given limited resources. Funding, time, equipment, and people, are all limited resources. Senior leadership must determine which requirements go unresourced - the art of distributing shortages. Congress and the President struggle to balance defense needs with other priorities. The Secretary of Defense (SECDEF) prioritizes each component's requirements against the National Military Strategy (NMS). Finally, the Army requires a sound plan to fund readiness by distributing scarce resources. 4. With the exception of non-appropriated funds and a few small revenue sources, all DOD activities are funded by Congress. In short, Congress considers requests for funding from DOD and the Services as presented in the President’s Budget and provides funding in Congressional Appropriations. However, there are many competing demand for public funds and resources are always constrained. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Allocating Army Resources
Total Outlay $ Total Discretionary $ Non- defense Defense Discretionary Mandatory Defense -wide MILCON AFH Other Show Slide #4: Allocating Army Resources 5. The federal government collects taxes, makes expenditures (outlays) and incurs debt. 6. Federal outlays fall into two categories, non-discretionary and discretionary spending a) Mandatory spending covers expenses the government must pay. Examples are entitlements (i.e., Medicare, Social Security, and veterans‘ pensions) and interest on the national debt. b) Discretionary spending covers other needs for which there is some funding choice. Examples include education, transportation, and national defense. 7. Congress views discretionary spending in two categories, defense and non-defense. Since national security is the first priority of the federal government, defense spending consumes a large portion of available discretionary dollars. However, other needs compete for the limited discretionary funds. In addition, the growing cost of entitlements (mandatory spending) works to shrink the overall size of the discretionary pool. Navy/ Marines RDA MILPAY Army O&M Air Force Total Army $ Total Defense $ 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

FINANCIAL MANAGEMENT SCHOOL
Flow of Funds Submits a Budget CONGRESS APPROPRIATES TREASURY OMB OSD APPORTIONS Show Slide #5: Flow of Funds 8. The Execution Phase carries out the decisions of the planning, programming, and budgeting phases. It must address guidance provided by Congress, OMB, the SECDEF, and the SA. Inherent within program execution and mission accomplishment are two critical responsibilities: compliance with higher guidance and performance measurement. a) Congressional compliance: 1) Over time Congress created numerous acts governing the availability of budgetary resources and program execution. One key act is the Anti-Deficiency Act. This act prohibits obligating or spending more money than has been appropriated, except as authorized by law. Commanders and resource managers must comply with purpose, time, and amount limitations. They may only obligate and expend funds for purposes authorized in legislation and within the specified obligation and expenditure periods. Finally, obligations and expenditures may not exceed amounts established by law. 2) While the Anti-Deficiency Act outlines individual responsibilities, the Chief Financial Officers Act (CFO) of 1990 increased the requirements for accountability over budgetary and other resources and enhanced operational financial controls at the OSD and HQDA levels. This act enhanced the authority and broadened the responsibilities of the U.S.D(C), and the ASA (FM&C). 3) The Federal Manager’s Financial Integrity Act (FMFIA) of 1982 holds federal managers responsible to establish management controls. Specifically controls must ensure obligations/costs comply with the law and that programs are efficiently and effectively executed. This law also requires managers to protect resources, ensure revenues and expenditures are properly recorded; and make certain that accounting systems comply with the General Accounting Office (GAO) guidelines. 4) One additional act provides a transition into the second key area of execution responsibility, performance measurement. In 1993 Congress strengthened existing guidance on performance measurement by passing the Government Performance and Results Act (GPRA). The GPRA requires agencies to define long range-term goals, set performance targets, and report actual performance. 5) Supported by the PPBE process, the DOD and the Army meet Congressional requirements. Periodically throughout the year, activities conduct reviews and provide reports. 6) The ASA (FM&C)’s Quarterly Army Performance Reviews (QAPR) which is briefed to the Army Resources Board (ARB) is one example. The QAPR compares program performance with objectives set at the beginning of the fiscal year by the Secretariat and ARSTAF staff principles in line with the TAP. These reviews provide both a means of checking systems performance and a means to identify requirements within the Army POM within the PPBE current year (CY), budget years (BYs), and program years (PrYs). 7) While compliance and performance measurement are essential, budgets must also respond to unforeseen change. Changing world events, political commitments, and cost adjustments change projections and force adjustments. Congress allows carefully controlled reprogramming actions and necessary supplemental appropriations. The Defense Resources Board (DRB) may direct limited reprogramming - shifting funds within the same appropriation. Congress and OMB govern such action. Supplemental appropriations are Congressional responses to fund critical requirements surfacing outside the normal budget cycle. 8) Once budget authority has been appropriated by Congress and apportioned by OMB, DOD allocates funding to the Services and Defense Agencies, which then execute the funds by committing, obligating, expending, and outlaying them. During execution, financial managers must be aware of the rules governing the life of appropriations and avoid violating fiscal laws (anti-deficiency, misappropriation and bona fide need) while making efficient use of their budget authority, which is usually evaluated based on performance relative to obligation and expenditure plans. Failure to execute funds according to plan usually results in their loss to fund some other requirement. If funds originally appropriated for one program or purpose need to be redirected to another program or purpose, DOD must comply with the reprogramming rules established by Congress. ISSUE WARRANTS HQDA Major Commands / Agencies 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

DOD Budget Process History
1940 1950 1960 1970 1980 1990 2000 Single Year Budgets Military Expansion PPBS - FYDP PPBE "The cost of one modern bomber is this: a modern school in more than 30 cites. It is two electric power plants...It is two, fine, fully equipped hospitals. It is some 50 miles of concrete highway. We pay for a single fighter with half a million bushels of wheat. We pay for a single destroyer with new homes that could have housed more than 8,000 people.” President Dwight D. Eisenhower, 1953 Show Slide #6: DOD Budget Process History 9) The reality of limited resources adds a significant challenge to the primary mission of providing the best possible mix of forces, equipment, and support to the UCCs. Achieving the best possible mix includes overcoming the limitations of fiscal constraints. To provide the best force structure, maintain accountability, and distribute shortages, the SECDEF instituted a DOD-wide resource management system in 1962 known as PPBS. 10) In the early part of the 20th Century, the federal budget process emphasized the control of expenditures. Each Service essentially submitted its own single year budget to Congress annually. Budget estimates were primarily based on previous expenses. Within the military, the Army and the Navy competed to obtain an equal share compared to the other Service. No significant or meaningful structure existed to classify costs by function or objective. Resource management across the military was duplicative, inequitable, and limited to consideration of a single budget year. 11) During the 1940s and 1950s, the enormous military expansion for WWII, the creation of the DOD, and the rise of Cold War threats prompted new debates within Congress, the administration, and the military over how much to spend on defense and how funds should be allocated. President Eisenhower echoed the concerns of many about limited resources, rising defense costs, and the tradeoff against other national needs. Consensus grew that the DOD needed an improved resourcing system to address new threats and the pace of political and technological change. 12) Upon becoming the SECDEF in 1961, Robert S. McNamara saw the need for a plan and program to control change over several years (i.e., multi-year programming). He sought an integrated process to create a true defense budget and address the absence of an accounting system to capture all force development and weapon systems costs. Secretary McNamara's efforts complimented the trend in Congress to shift power from the Services to the SECDEF and encourage joint operations. Most importantly, the Secretary McNamara determined to strengthen the connection between national security objectives and the defense budget. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Future-Years Defense Program Structure
1940 1950 1960 1970 1980 1990 2000 Organizations Army OSD, Defense Agencies, Joint Staff, etc. Navy Air Force Other Military Personnel Operations & Maintenance Strategic Forces General-Purpose Forces Intelligence & Communications Airlift & Sealift National Guard & Reserve Forces Research & Development Central Supply & Maintenance Training, Medical, & Other Administration Support of Other Nations Special Operations Major Force Programs Show Slide #7: Future-Years Defense Program Structure 13) Future Years Defense Program: Secretary McNamara's management approach resulted in each Service documenting their multi-year programming of resources in a single document termed the Five Year Defense Program, now called the Future Years Defense Program (FYDP). Once established, the OSD determined that all changes to the FYDP had to be approved by the SECDEF. This move retained significant Service input but centralized control at OSD. 14) The FYDP provides a multi-year focus built around ten defense mission areas called major force programs (MFPs). The original FYDP included 11 MFPs: Strategic forces; general purpose forces; command, control and communications; airlift and sealift; National Guard and reserve forces; Special Forces; research and development; central supply and maintenance; training, medical, other general personnel activities; administration and associated activities; intelligence space and support of other nations. The vertical columns in the FYDP Structure Chart represent the Services and Defense Agencies - traditional budget divisions. However, for the OSD the FYDP focus remained on the MFPs. 15) Most importantly, the FYDP projected resource requirements for each MFP five years into the future – the current budget year (BY) plus the four following years. Creating a multi-year focus allowed senior leaders the time to make decisions and funding based upon projected needs and the defense strategy. 16) Many PPBS veterans consider the FYDP's focus on major force programs and mission related outputs as one of PPBS greatest contributions. The creation of the FYDP provided a vehicle by which the SECDEF could make program decisions covering multiple years but tie them to the annual budget preparation. 17) Although succeeding SECDEFs have implemented several changes, at its core PPBS is essentially the same system today. The major difference has been the degree of influence exerted by key players. Changes in the system since Secretary McNamara introduced PPBS in 1961 have focused primarily on the overall degree of control between the Services and OSD. Finally, growing participation by defense senior leadership, including the UCC commanders, in the PPBS/PPBE process has been a consistent trend. In addition, PPBE phases were essentially sequential until 2001 when DOD began conducting programming and budgeting concurrently, and the growing emphasis on the execution phase was formalized in 2003 when the DOD’s PPBS became Planning, Programming, Budgeting and Execution (PPBE). Research & Development Procurement Military Construction Appropriations

The Objectives of Army PPBE
Army PPBE’s main objective is to establish, justify, and acquire the fiscal and manpower resources needed to accomplish the Army’s assigned missions in executing the Defense Strategy PLANNING Size, structure, man, equip, train, and sustain the Army force Distribute projected manpower, dollars, and materiel among competing requirements Convert resource allocation decisions into congressional requests PROGRAMMING & BUDGETING Show Slide #8: The Objectives of Army PPBE b) The PPBE process accomplishes four basic functions: 1) First, DOD develops and articulates its strategy (plan) to support the President's National Security Strategy (NSS). 2) Secondly, it determines priorities and identifies the necessary forces and programs (equipment, basing, personnel). 3) Third, the DOD requests monies to fund those programs. 4) Fourth, it executes approved funding against priorities in accordance with Congressional guidance. c) These four functions equate to the four PPBE phases - planning, programming, budgeting, and execution. d) PPBE is a continuous and repetitious process. A key event for both the federal budget cycle and the PPBE is the annual submission of the President's budget to Congress each year on the first Monday in February. However, Congress normally authorizes programs over a number of years but funds programs via annual appropriations. e) Meanwhile, federal agencies execute a current budget while preparing future budget proposals and accounting for prior execution years. To communicate clearly regarding budget time periods, Congress, the OMB, and the DOD make use of specific time period designations. PROGRAM EXECUTION BUDGET EXECUTION Manage and account for funds in approved programs Apply resources to achieve approved program objectives 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

A Continuous and Repetitious Process
Annual submission of the President's budget Multi-year program authorizations Annual appropriations Current budget execution Future budget preparation Show Slide #9: A Continuous and Repetitious Process 1) Annual submission of the President's budget 2) Multi-year program authorizations 3) Annual appropriations 4) Current budget execution 5) Future budget preparation 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

LSA #1 Check on Learning True or False? Q1: There are many reasons why we have a RM system, but the bottom line we have it is because we have limited funds availability. A1: True Q2: Over time Congress created numerous acts governing the availability of budgetary resources and program execution. A2: True Q3: Who determined to strengthen the connection between national security objectives and the defense budget? a. President Eisenhower b. Secretary McNamara c. Vice President Nixon Show Slide #10: LSA #1 Check on Learning Facilitator's Note: Ask the following check on learning questions, facilitate discussion on answers given. True or False? Q1: There are many reasons why we have a RM system, but the bottom line we have it is because we have limited funds availability. A1: True Q2: Over time Congress created numerous acts governing the availability of budgetary resources and program execution. A2: True Q3: Who determined to strengthen the connection between national security objectives and the defense budget? a. President Eisenhower b. Secretary McNamara c. Vice President Nixon 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

LSA #1 Summary Show Slide #11: LSA #1 Summary Facilitator's Note: In this lesson we discussed and had an overview on what the military resource management system should be, allocating Army resources, its flow of funds and DOD budget process history. We explained the future-years defense program structure, the objectives of Army PPBE and how it is a continuous and repetitious process “Or” Facilitator, have each group as a group write down one major main lesson learnt from this LSA, allow a few minutes for them to interact. Once all groups have their one major learnt lesson written, pass it to another group to compare their answer. Facilitate a discussion on each major learnt lesson mentioned by each group. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Budget Cycle Terms Fiscal Year (FY) Prior Year (PY) Current Year (CY) Budget Year(s) (BY) Program Year(s) (PrYs) Show Slide #12: Budget Cycle Terms Learning Step/Activity #2: Review budget cycles time period designations Method of Instruction: DSL (large or small group discussion) Facilitator's to Learner Ratio: 1:30 Time of Instruction: 00 hrs. / 40 min. Media: PowerPoint Presentation, Printed Reference Materials Facilitator's Note: Transition into explaining the budget cycle and its terms. The most frequently used budget cycle time period designations are: Fiscal Year (FY), Current Year (CY), Prior Year (PY), Budget Year (BY), and Program Year(s) (PrYs). 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Fiscal Year Fiscal Year 2016 1 Oct start of FY 30 Sep end of FY J F M A M J J A S O N D J F M A M J J A S O N D Calendar Year 2015 Calendar Year 2016 Show Slide #13: Fiscal Year B. The FY is the federal government's basic accounting period. The FY runs from 1 October to 30 September each year. Since this is the period in which agencies can obligate funds this is also known as the execution year. C. This fiscal accounting period begins on October 1st and ends on September 30 the following calendar year. Thus each FY is designated by the calendar year in which it ends. For example, FY99 began on October 1, 1998 and ended on September 30, 1999. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Prior Year 2015 DEC 1, 2015 CY = FY16 Oct 1, 2015 start of new FY O N D J F M A M J J A S O N D J F M A M J J A S FY15 = PY FY16= CY Show Slide #14: Prior Year 2015 D. The PY is the FY prior to the CY. Again, assuming today is January 15, 2000, the PY is FY99. PYs are those FYs before the CY: FY99, FY98, FY97, etc. For example, assuming today's date is October 1, 2000, the correct abbreviation designation for the PY is FY99. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Current Year 2016 CY = FY16 Oct 1, 2015start of FY Sep 30, 2016 End of FY J F M A M J J A S O N D J F M A M J J A S O N D Calendar Year 2015 Calendar Year 2016 Show Slide #15: Current Year 2016 E. The current FY being executed is the CY. To illustrate, let's assume today's date is January 15, An installation resource manager obligating funds today is working in FY00. FY00 in this example is also the CY. On October 1, 2000 a new FY (FY01) begins. Until that date FY00 is the CY. The CY designation not only matches the current FY, it serves as the base line for other federal budget cycle period comparisons. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Two Budget Year (Odd Current Year) O N D J F M A M J J A S O N D J F M A M J J A S N D J F M A M J J A S FY15 – CY FY16 - BY FY17 - BY 2 Show Slide #16: Two Budget Year (Odd Current Year) F. Since 1987 the DOD has operated on a biennial budget cycle. 1. In essence, the DOD submits a two-year budget proposal each odd number year. However, because Congress appropriates funds annually, in practice, the President and the DOD make annual budget submissions. As a result the two years following the CY are both considered BYs. Note: Refer to Fiscal Year memo dated 9 Apr 2010 Locate this memo 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

One Budget Year (Even Current Year) Oct 1, 2016 start of new FY O N D J F M A M J J A S O N D J F M A M J J A S FY16 = CY FY17 = BY Show Slide #17: One Budget Year (Even Current Year) 2. The primary focus of the President's budget is on the 1st BY. The 1st BY is the next FY and the year for which Congress is currently working to pass appropriation bills. 3. PPBE also recognizes a second budget year. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Program Years (PrYs) Example: Assuming the current date is March 1, 2016 The Prior Year is Fiscal Year 2015 (FY15) The Current Year is FY16 The One Budget Years (BY) is FY17 The Six Program Years (PrYs) are FY18-23 FY15 FY16 FY FY18 FY19 FY20 FY21 FY22 FY23 PY CY BY 1 PrY1 PrY2 PrY3 PrY4 PrY5 PrY6 Show Slide #18: Program Years (PrYs) G. The six FYs following the two BYs are called the PrYs or out years. 1. Within the DOD, PrYs years allow the DOD to plan seven years beyond the CY. The DOD plans out an additional four PrYs from the BYs for force structure, personnel strength, and financial resources and then an additional three PrYs for force structure. Example: Assuming the current date is March 1, 2016 • The Prior Year is Fiscal Year 2015 (FY15) • The Current Year is FY16 • The One Budget Years (BY) is FY17 • The Six Program Years (PrYs) are FY18-23 Program Years Personnel Strength Force Structure 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Multiple Years Impacted by PPBE Cycle
Planning extends 15 to 17 years into the future (FY and beyond) Programming looks at 5 or 6 years into the future (FY 18-23) Budgeting looks at 1 and 2 years into the future (FY 17-18) Congress reviews the closest year into the future (FY 17) Execution covers the current year and several prior years (FY 12-16) Execution Congress Planning 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Show Slide #19: Multiple Years Impacted by PPBE Cycle H. The purpose of this chart is to reinforce the iterative and overlapping nature of the PPBE process. 1. The PPBE process ties strategy, program, budget and execution together. It helps build a comprehensive plan in which budgets flow from programs, programs from requirements, requirements from missions, and missions from national security objectives. The patterned flow—from end purpose to resource cost—defines requirements in progressively greater detail. 2. In planning, programming and budgeting we deliberately revisit decisions made in prior cycles. As we get closer to the budget year we reevaluate earlier decisions in light of newer information. 3. While we are executing all appropriations this year, we are also continuing the execution of prior year appropriations that have a multiyear life. 4. We previously noted that PPBE is a continuous and repetitious process. A FY that is currently a PrY will become a BY in a future cycle, which later becomes a CY, and then a PY. For example assuming today's date is January 15, 2000, FY'03, currently a PrY, will become a BY on October 1, In addition, FY'03 becomes the CY on October 1, 2002 and a PY on October 1, While it is helpful to think of the sequential nature of the budget cycle, it is also important to note that the DOD focus is always on multiple PPBE phases. Programming & Budget PPBE is the process through which DOD takes a long term perspective of its needs and prioritizes operational requirements within given fiscal constraints 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Multiple Cycles Ongoing Simultaneously
Today POM 16-20 POM/BES Congress Execution POM 17-21 Planning POM/BES Congress Execution POM 18-22 Show Slide #20: Multiple Cycles Ongoing Simultaneously I. Because the Army receives annual appropriations, any given PPBE cycle will overlap with other PPBE cycles for other years. 1. From this chart and the previous two charts, we can see that at any given moment there are multiple years being managed by the Army staff in one of the PPBE phases. Note 1: (Important) you should always be specific as to which budget cycle you are working on or asking questions about because changes are made for each cycle. Note 2: Until 2010 the odd year budget submissions, used a vehicle called Change Proposals to update our financial decisions. 2. Change Proposals were eliminated in April 2010 when OSD issued new guidance that the integrated POM/BES submissions would cover 5 years and be submitted each year (rather than POM/BES in even years and Change Proposals in odd years). Planning POM/BES Congress Execution POM 19-23 Planning POM/BES Congress Execution JAN 14 JAN 15 JAN 16 JAN 17 JAN 18 JAN 19 11/7/2018 FINANCIAL MANA6EMENT SCHOOL

Key Army PPBE Organizations
The Army Secretariat Secretary of the Army Undersecretary of Army General Counsel Admin. Assist. Policy ASA (ALT) ASA (FM&C) ASA (I&E) ASA (M&RA) The Army Staff Army Budget Office Director, Army National Guard Budgeting/Execution Chief of Staff Vice Chief of Staff ASA (Civil Works) CIO/G6 The Inspector General The Auditor General Chief, Army Reserve Director of the Army Staff Chief, Legislative Liaison Chief, Public Affairs Director, Sml & Disadv Business Utilization Army Res Forces Policy Committee Management Directorate Show Slide #21: Key Army PPBE Organizations J. ASA (FM&C) is responsible for the overall management of the PPBE process with the Deputy Chief of Staff, G-3, Deputy Chief of Staff, G-8, and Military Deputy for Budget and Execution acting as advisers. 1. The Assistant G‑3, the Director of Cost Assessment and Program Evaluation Office (CAPE) and the Director of the Army Budget (DAB) will manage functional phases of the system, each establishing and supervising policies and procedures necessary to carry out phase functions. 2. Principal officials of the Office of the Secretary of the Army (OSA) will oversee operation of the PPBE process within assigned functional areas and provide related policy and direction. 3. Earlier we saw that to the extent the APGM is a planning product, Director PAE also contributes to the planning effort. 4. The further we move through the PPBE process for a given fiscal year the stronger the role of the Army Secretariat. Chief of Chaplains ACSIM Chief of Engineers The Judge Advocate Gen. The Surgeon General G1 G2 G3/5/7 G4 G8 Programming CAPE 11/7/2018 Planning

Budget, Requirements, and Programs (BRP)
PPBE Decision Committees / Processes BRP (Near-term (Execution) focus) DECISION Committees (Long-term (POM/BES) focus) Entry point for the decision process Reviews and recommends approval or disapproval of Schedule 8 changes, concept plans, and requirements changes Program Budget Assessment Team (PBAT) CoC Represents PPBC members. Responsible for coordinating matters that come before the PPBC Planning, Programming, & Budgeting Committee (PPBC) Council of Colonels (CoC) First executive level decision and advisory role Maintains overall discipline of PPBE Oversees PPBE schedule Planning, Programming, & Budgeting Committee (PPBC) Resolves resource allocation issues Monitors staff Implementation of SA/CSA decisions Makes recommendation, prioritization, resource allocation to SA/CSA Senior Review Group Senior Army leadership forum Approves prioritization of Army Programs Selects resource allocation alternatives Approves TAP, POM/BES Secretary of the Army Chief of Staff of the Army Gatekeepers for issues with resourcing implications Package proposals, frame issues, and coordinate matters that go before the 2-Star and Senior BRP COL BRP Coordinating, executive-advisory role Maintain overall discipline of resourcing process Ensure resourcing decisions align with Army priorities Recommend POM/BES solutions to 3-Star BRP 2-Star BRP Resolves resource allocation issues Recommend final decisions on The Army Plan, POM/BES Formulate issues for Senior Leaders of the Department of the Army 3-Star BRP Budget, Requirements, and Programs (BRP) Show Slide #22: PPBE Decision Committees / Processes K. PPBE Advisory Committees and process have changed over time. This chart reflects current organization. The Budget, Requirements and Programs (BRP) forums are called as needed or to serve in an advisory role and focus mainly on execution year issues. 1. COL BRP a) Chaired by G3/5/7, PA&E G8, and ABO XOs - Represent 2-Star BRP b) Formulate and coordinate issues for 2-Star BRP 2. Star BRP a) Chaired by Asst. G3, Dir. PA&E and DAB b) Evaluate PEGs output against guidance c) Recommend POM/BES solutions to 3-Star BRP 3. Star BRP a) Chaired by G3, G8 and MILDEP for Budget b) Recommend final decisions on The Army Plan, POM/BES c) Formulate issues for Senior Leaders of the Department of the Army 11/7/2018

LSA # 2 Check on Learning Q1: True/False: Does HQDA use PPBE as a resource allocation and management system? A1: True Q2: Who is responsible for initially evaluating and prioritizing MDEPs at the HQDA level? A2: Program Evaluation Groups (PEGs) Q3: What fiscal years follow the budget years? A3: Program Years Show Slide #23: LSA # 2 Check on Learning Facilitator's Note: Ask the following check on learning questions, facilitate discussion on answers given. Q1: True/False: Does HQDA use PPBE as a resource allocation and management system? A1: True Q2: Who is responsible for initially evaluating and prioritizing MDEPs at the HQDA level? A2: Program Evaluation Groups (PEGs) Q3: What fiscal years follow the budget years? A3: Program Years 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

LSA # 2 Summary Show Slide #24: LSA #2 Summary Facilitator's Note: In this lesson we discussed and had an overview on the budget cycles time period designations terms and their specific cycle years. How multiple years are impacted by the PPBE cycle, multiple cycles ongoing simultaneously. Its key Army PPBE organizations, the PPBE decision committees and processes. “Or” Facilitator, have each group as a group write down one major main lesson learnt from this LSA, allow a few minutes for them to interact. Once all groups have their one major learnt lesson written, pass it to another group to compare their answer. Facilitate a discussion on each major learnt lesson mentioned by each group. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

PPBE Phases Planning Programming Budgeting Execution Show Slide #25: PPBE Phases Learning Step/Activity #3: Identify phases for the Planning Programming Budgeting and Execution (PPBE) process Method of Instruction: DSL (large or small group discussion) Facilitator's to Learner Ratio: 1:30 Time of Instruction: 01 hrs. / 25 min. Media: PowerPoint Presentation, Printed Reference Material Facilitator’s Note: Inform learners that these are the 4 Phases of PPBE, which will talk about each of them individually in four parts. Planning Programming Budgeting Execution 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

The PPBE Planning Phase
Show Slide #26: The PPBE Planning Phase Part 1 (Phase): Planning A. The process used to acquire, allocate, and account for DOD personnel, equipment and financial resources begins with a plan. The objective of the Planning Phase is to identify threats to national security, assesses capabilities to meet those threats and recommend the forces required to defeat them. PPBE planning determines requirements including the size, structure, and manning of the force. In effect it attempts to answer the question "how much defense is enough?" 1. The PPBE Planning Phase identifies the capabilities required to deter and defeat threats. 2. At the DOD level, the planning phase examines the role and posture of the U.S. and the DOD in a global environment with a focus on potential enemy capabilities and threats, allies capabilities, alternative U.S. policies (economic, diplomatic, military), military strategies in support of U.S. policies, planning force levels to achieve strategies, and planning assumptions. The major product of the Planning Phase at the DOD level is the Guidance for the Development of the Force. 3. For the Army the Planning Phase specifically identifies the capabilities needed to conduct operations on land in support of the National Security Strategy (NSS) and the National Military Strategy (NMS), building upon that guidance and adding the necessary detail for program development. The major product of the Planning Phase for the Army is The Army Plan (TAP). 4. Planning includes the identification and examination of alternative strategies and the analysis of changing conditions and trends, threat, technology, and economic assessments. It also includes efforts to both understand change and define the long-term implications of current choices. However, at its core PPBE Planning is the process for determining requirements. 5. One important facet of the planning phase at the DOD level is the development of planning assumptions to be used as guidance during the programming and budgeting phases. Such assumptions include projected peacetime funding levels as well as required combat deployment readiness levels. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Near-Term Looking Out: PPBE Planning Timeframes Out-Years
Near-Term (Execution, President’s Budget (PB), and Budget Estimate Submission (BES): Monitor execution of current year’s budget and several prior years Congress reviews next year’s budget Budgeting looks at the following 1-2 years Out-Years (Future Years Defense Program (FYDP)): Programming looks 5-6 years in the future First 1-2 years are the same as the budgeting years Future (Extended Planning Period (EPP)): Planning extends years into the future Planning horizon can be longer (i.e. Military Construction) BUDGET EPP FYDP Future Show Slide #27: Looking Out: PPBE Planning Timeframes B. Near-Term (Execution, President’s Budget (PB), and Budget Estimate Submission (BES): 1. Monitor execution of current year’s budget and several prior years 2. Congress reviews next year’s budget 3. Budgeting looks at the following 1-2 years C. Out-Years (Future Years Defense Program (FYDP)): 1. Programming looks 5-6 years in the future 2. First 1-2 years are the same as the budgeting years D. Future (Extended Planning Period (EPP)): 1. Planning extends years into the future 2. Planning horizon can be longer (i.e. Military Construction) Out-Years Near-Term 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

National Security Strategy (NSS)
Developed by National Security Council – establishes nation’s grand strategy and addresses all elements of national power (military and other) used to achieve national goals Description: Published at NCA’s discretion (generally upon change in administrations or in wake of significant event) Drives all Joint and OSD planning activities; feeds directly into the NMS Should be viewed as the foundational document for all strategic planning efforts throughout the military; these efforts should be able to link their primary thrusts back to the key objectives of the NSS HQDA Utility: Impact of the NSS carries into the POM/BES build Foundation for all major Army planning activities – all should link back to the NSS Influences all sections of TAP Influences AMP Influences RDA Plan Influences Army requirements develop. Can be a significant factor in the assessment and/or justification of Army programming choices by OSD and Congress Show Slide #28: National Security Strategy (NSS) E. The NSS is published at the NCA’s discretion. In the past, most newly elected Presidents have wanted to put their stamp on national security policy and publishing a new iteration of the NSS is a quick way to do this. A significant geo-political event can also trigger a new iteration of the NSS. The last NSS iterations occurred in September, 2002, codifying the shift in US strategic thinking in the wake of the 9/11 attacks and the war in Afghanistan and in again in March 2006 to address the continuing conflicts in Iraq and Afghanistan and the continued GWOT. 1. The NSS is a broad document that lays out the key thrusts of US national security policy. In doing so, it touches upon aspects of military, economic, diplomatic, social, and human rights policies, all of which are viewed as the “means” of achieving US strategic objectives. From the military standpoint, the NSS is the source document for lower level planning efforts in OSD, the Joint world, and the Services. 2. Not surprisingly, the guidance contained within such a top level document is quite broad. Particular military systems or programs are rarely mentioned. Instead, broader objectives and capabilities are cited. While detailed guidance is limited, key capability thrusts are readily apparent. The ability to link a program to one of these capabilities is very beneficial as the program is guided through the perils of the PPBE process. The current focus of the NSS: a) Champion the aspirations of human dignity b) Strengthen alliances against global terrorism and prevent future attacks c) Defuse regional conflicts d) Use free markets/free trade to spark future growth e) Open societies and build democratic infrastructure f) Develop agendas for cooperative action with other global powers g) Transform US national security organs to meet 21st century challenges Facilitator’s Note: Provide learners the following link and when they have time have them on their own time link in and glaze through it. 11/7/2018 NSS 2010 FINANCIAL MANAGEMENT SCHOOL

National Defense Strategy (NDS)
Developed by OSD– establishes the Department of Defense overall strategy and addresses all elements of national power (military and other) used to achieve the NSS. Description: DOD’s capstone document in its long-term effort. Describes DOD’s overarching goals and strategy. Drives all military planning activities. Outlines how DOD will support the objectives outlives in the National Security Strategy (NSS). Five key objectives outlined in the NDS- (Defend the Homeland, Win the Long War, Promote Security, Deter Conflict and Win our Nation’s Wars) HQDA Utility: Impact of the NSS & NDS carries into the POM/BES development process. Foundation for all major Army planning activities – all should link back to the NSS Influences all sections of TAP Influences Total Army Analysis (TAA) Influences RDA Plan Influences Army requirements development. Show Slide #29: National Defense Strategy (NDS) F. National Defense Strategy (NDS) 1. Developed by OSD– establishes the Department of Defense overall strategy and addresses all elements of national power (military and other) used to achieve the NSS. 2. Description: a) DOD’s capstone document in its long-term effort. Describes DOD’s overarching goals and strategy. b) Drives all military planning activities. c) Outlines how DOD will support the objectives outlines in the National Security Strategy (NSS). d) Five key objectives outlined in the NDS- (Defend the Homeland, Win the Long War, Promote Security, Deter Conflict and Win our Nation’s Wars) 3. HQDA Utility: a) Impact of the NSS & NDS carries into the POM/BES development process. b) Foundation for all major Army planning activities – all should link back to the NSS i. Influences all sections of TAP ii. Influences Total Army Analysis (TAA) iii. Influences RDA Plan iv. Influences Army requirements development. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL NATIONAL DEFENSE GUIDANCE

National Military Strategy (NMS)
Means by which the CJCS provides advice and assistance to President and SECDEF regarding the strategic direction of the armed forces – relies on coordination with members of the JCS, Services and Combatant Commanders during development Description: Published at CJCS’s discretion (always updated in wake of new NSS) Describes how US military capabilities support the national security objectives outlined in the NSS The NMS describes: Strategic environment National military objectives Strategies to accomplish these objectives Capabilities required to execute the strategy The NMS provides strategic direction for development of the JCSP, JPD and GDF/JPG HQDA Utility: Should be used as a source of overarching strategic direction – significant long-term capability objectives should link to NMS Should inform development of The Army Plan and The Army Modernization Strategy Planning and programming defense /justification should cite specific NMS sections (look for linkages between the NMS and the GDF/JPG) The law requires the NMS be submitted with the President’s Budget every 2 years Show Slide #30: National Military Strategy (NMS) G. The Chairman of the Joint Chiefs of Staff provides strategic direction to the military through the National Military Strategy, consistent with the QDR and the National Defense Strategy. The National Military Strategy provides strategic direction from the Chairman of the Joint Chiefs of Staff on how the Joint Force should align the military ends, ways, means, and risks consistent with the goals established in the QDR and the National Defense Strategy. The National Military Strategy is reviewed biennially, with updates issued as needed. 1. A standing document that is changed as needed (usually in wake of new NSS), the NMS applies to the program years (2 to 8 years in the future). The NMS seeks to accomplish the following objectives: a) Summarize the global strategic setting (relying on input from the Joint Strategic Review) b) Discuss potential risks and threats c) Recommend military foundations and strategic principles to support national security objectives d) Provide strategy and force levels that conform to the fiscal guidance of the President and SECDEF Facilitator’s Note: Provide learners the following link and have them on their own glance through it. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Joint Strategic Planning System (JSPS) Overview
The Joint Strategic Planning System (JSPS) provides the strategic foundation for all DOD planning – statutory responsibilities include: Performing assessments to support advice and assistance to NCA Assisting NCA in providing strategic direction to the armed forces Preparing strategic plans Providing advice regarding program recommendations and budget proposals Flexible system/process, capable of interacting with PPBE and Acquisition processes; produces NMS, CPR, CPA and other products that influence Army PPBE Owned by the CJCS, though all members of the defense establishment participate Joint Staff J5 (Strategic Plans and Policy Directorate) manages the JSPS Joint Staff J8 (Force Structure, Resources and Assessment Directorate) ensures that linkage exists between future US military force structure and future national objectives Two key sub-processes constitute a continuous process Joint Strategy Review Joint Net Assessment Show Slide #31: Joint Strategic Planning System (JSPS) Overview H. All joint strategic planning takes place within the context of the Joint Strategic Planning System – which provides a mechanism for the continuous review of the national military environment and the assessment of the armed services’ capability to meet national security objectives. The JSPS is comprised of two ongoing processes: 1. The Joint Strategy Review (JSR) lies at the core of the JSPS and serves to integrate strategy, operational planning and program assessments. The JSR continuously gathers information through the examination of current, emerging, and future issues related to threats, strategic assumptions, opportunities, technologies, doctrine, force structure, and missions. This information is the basis for an annual assessment of issues affecting the national military strategy. These assessments are provided to the Chairman of the Joint Chiefs of Staff, Service Chiefs, and Combatant Commanders as guidance for maintaining or adjusting the NMS and other joint products 2. The Joint Net Assessment (JNA) provides the means to assess force strengths and deficiencies, comparing defense capabilities of the U.S. and its allies to those of potential adversaries. The JNA works through a continuous 4-year cycle and focuses on the end of the FYDP period. Results help evaluate current strategies and the development of alternate force structures and strategies. The JSPS is a process, not a product! 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

OSD Direction and Guidance
Prepared by the office of the Under Secretary of Defense for Policy, in conjunction with the Joint Staff and the services Issued for the first time by SECDEF in May 2008 Replaces Strategic Planning Guidance (SPG), Transformation Planning Guidance, Posture Guidance, Science and Technology Strategic Guidance and several other guidance documents Intent: Provide a single, authoritative volume to planners across the services who are responsible for making strategic resource allocations Considers a long-term (20-year) view of the security environment and helps shape the investment blueprint for nearer-term spending across the upcoming six-year program Guidance for Development of the Force (GDF) Establishes Army’s Total Obligation Authority (TOA) over program years Includes inflation factors, other administrative instructions Fiscal Guidance Show Slide #32: OSD Direction and Guidance I. Prepared by the office of the Under Secretary of Defense for Policy, in conjunction with the Joint Staff and the services, the Guidance for the Development of the Force (GDF) replaces Strategic Planning Guidance (SPG), Transformation Planning Guidance, Posture Guidance, Science and Technology Strategic Guidance and several other guidance documents. The intent behind consolidation was to provide to planners across the services who are responsible for making strategic resource allocations a single, authoritative volume rather than leaving them to consult numerous documents, many of which were issued at different times throughout the two-year force development timeline and often contained conflicting and redundant guidance. 1. GDF is used mainly by the Military Departments and Defense Agencies to align their internal priorities with DOD-wide performance goals for force development, management, and corporate support in the longer term (present through 2 to 6 years and beyond). The GDF establishes priorities within and across Joint Capability Areas and articulates the Department’s force planning construct, as established in the Quadrennial Defense Review (QDR). 2. The GDF considers a long-term (20-year) view of the security environment and helps shape the investment blueprint for nearer-term spending across the up-coming six-year program. Issued for the first time by SECDEF in May 2008, it establishes priorities within and across Joint Capability Areas managed by Capability Portfolio Managers (CPMs). 3. Fiscal Guidance (FG). Annual top-line funding guidance, for each year of the Program Objective Memorandum (POM), for each DOD Component, issued by the Secretary of Defense (SECDEF). Provides fiscal constraints that must be observed by the DOD Components in the formulation of program and force structures and by the Office of the Secretary of Defense (OSD) and joint staff in reviewing proposed programs. 4. Joint Programming Guidance. The Joint Programming Guidance (JPG) is issued in On-Budget Years (even-numbered years), and contains fiscally constrained programmatic guidance and performance measures. The JPG drives the development of the Program Objective Memoranda (POM) and Budget Estimate Submissions (BES). The JPG is the principal Department of Defense (DOD) planning document and reflects the President’s prioritized national security objectives drawn from the National Security Strategy (NSS), the National Military Strategy (NMS), and the Quadrennial Defense Review. 5. FG and JPG set specific fiscal controls and direct explicit program actions, respectively, for each Military Department and Defense Agency, consistent with the outcome and output goals established in the GDF. They are updated biannually. Contains SecDef’s decisions based on the Enhanced Planning Process Provides direction for incorporating those decisions into the programs and budgets of military departments and defense agencies Guide portions of service and defense agency POM development Joint Programming Guidance (JPG) 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Army Planning The Army Plan Total Army Analysis Show Slide #33: Army Planning J. The next several slides will review planning documents and procedures that take place at National, Department of Defense, and Joint Staff levels and affect Army planning. This is a diagram of most of the planning products that affect Army Planning. The Army Plan Total Army Analysis 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Planning “The Army Plan” (TAP) The Army Plan (TAP) Army Title 10 Lens
The Army Plan (TAP) aligns and nests the Army’s planning documents with joint guidance and capabilities, using a Title 10 lens Army Title 10 Lens The Army Plan (TAP) Section I Army Vision Army Strategic Planning Guidance DCS G-3/5/7 Section II Strategy Army Strategic Plan DCS G-3/5/7 Section III Priorities Army Planning Guidance DCS G-3/5/7 Section IV Programming Army Program Guidance Memorandum DCS G-8 (PA&E) Section V Army Campaign Plan DCS G-3/5/7 Also published as ACP Annex E Every Four Years Show Slide #34: Planning “The Army Plan” (TAP) 1. The Army Plan (TAP) provides guidance for strategic planning, priorities, programming guidance and campaign execution: 2. The Army Vision (AV) captures the unified direction of the Secretary and Chief of Staff, Army and articulate the Army's "ends" in support of guidance from the National Command Authority (NCA). 3. Army Strategic Plan (ASP) articulates a strategy that directs how the Army will fulfill its Title 10 responsibilities and additional statutory requirements over a 10 year time horizon. 4. Army Planning Guidance (APG) is to initiate the Army's annual PPBE process by identifying and providing guidance for key planning issues that require resolution or additional guidance before the POM build is complete. 5. The Army Program Guidance Memorandum (APGM), is to codify decisions made throughout the planning process in order to resolve each of the issues identified in the APG. 6. Army Campaign Plan (ACP) establishes and monitor annual priorities and initiatives from the Secretary and Chief of Staff, Army that require measurable endstates or decisions in the year of execution. Facilitator’s Note: Provide learners the following link and have them on their own glance through it. Title 10: > < Biannual Annual Annual Semi-annual Primary inputs are relevant NCA guidance Serves as the unifying document for all other Army strategic documents and plans Key linkage between strategy and budget Initiate the Army's annual PPBE process Addresses near, mid, and far term planning issues that apply to a specific budget year Prioritization guidance addressing the hierarchy of functions for program development and budget execution Codify decisions made throughout the planning process in order to resolve each of the issues identified in the APG Begins the Army's programming phase for the annual PPBE process Establishes and monitors annual priorities and initiatives from the Secretary and Chief of Staff (Army) Strategic Efforts identify priorities and initiatives that require integration across the Army and assist in aligning objectives, resources and time. Supports the guidance of the National Command Authority Source document of the revised TAP Primarily intend for external audiences (ODC Congress, White House, thinks tanks…)

TAP – Section I Army Vision (AV) Captures the unified direction of the Secretary and Chief of Staff, Army Articulates the desired endstate of the Secretary and the Chief of Staff, Army over a 10 year time horizon Source document to which all other sections of the revised TAP are tethered AV is primarily intended for external audiences Principal authors, personal staffs of the Secretary and the Chief of Staff, Army, Show Slide #35: TAP – Section I Army Vision (AV) 7. The purpose of the AV, sections I of TAP, is to capture the unified direction of the Secretary and Chief of Staff, Army and articulate the Army's "ends" in support of guidance from the National Command 8. Authority (NCA). The AV articulates the desired endstate of the Secretary and the Chief of Staff, Army over a 1O year time horizon; at once, both challenging the Army and providing a "touchstone" to drive future change. It is the source document to which all other sections of the revised TAP are tethered, and serves as the central document from which all other strategic communication documents (e.g., the Army 9. Posture Statement (APS)) emanate. Although the AV informs the initial strategic choices that the Army Strategic Plan (ASP) outlines, the AV is primarily intended for external audiences (Office of the Secretary of 10. Defense (OSD); Congress; the White House; think tanks; etc.). The AV's principal authors will be the personal staffs of the Secretary and the Chief of Staff, Army, with assistance from the immediate staffs of the 11. Under Secretary of the Army and Vice Chief of Staff, Army, as appropriate. The Deputy Chief of Staff (DCS), G provides additional support, as required. At a minimum, the AV should be reviewed or published every four years, in close proximity to the release of a new Quadrennial Defense Review (QDR). Although the AV is intended to endure over multiple Program Objective Memorandum (POM) cycles, some factors may necessitate more frequent changes or updates (e.g., radical shifts in the operational or fiscal environment; significant updates to NCA guidance; significant changes to senior leader thinking; etc.). 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

TAP – Section II Army Strategic Plan (ASP)
Articulates a strategy that directs how the Army will fulfill its Title 10 responsibilities Re-emphasizes the Army's 'ends' and defines and describes the strategic goals and objectives of senior leaders. Serves as the key linkage between strategy and budget and informs the Army's annual planning efforts as part of PPBE process Not directly linked to any single (Program Objective Memorandum) POM or fiscal year The DCS, G-3/5/7 serves as the proponent for the ASP Show Slide #36: TAP – Section II Army Strategic Plan (ASP) 12. Army Strategic Plan (ASP) - The purpose of the ASP, section II of TAP, is to articulate a strategy that directs how the Army will fulfill its Title 10 responsibilities and additional statutory requirements over a 10 year time horizon. Its primary inputs are relevant NCA guidance (e.g., Defense Strategic Guidance (DSG); National Security Strategy (NSS); etc.) and the Army Vision. Building on the AV and other senior leader guidance, the ASP re-emphasizes the Army's 'ends' and defines and describes the strategic goals and objectives of senior leaders. Additionally, the ASP provides a strategic assessment of the operating environment, explicitly articulates key assumptions in its strategy formulation, and identifies key areas of risk. The ASP serves as the unifying document for all other Army strategic documents and plans (e.g., Army Modernization Strategy; Army Facility Strategy; etc.). Strategic guidance from the ASP directs planning and programming across multiple Future Years Defense Programs (FYDPs), including Total Army 13. Analysis (TAA), and guides changes to Doctrine, Organization, Training, Materiel, Leadership, Personnel, Facilities and Policy (DOTMLPF-P). The ASP serves as the key linkage between strategy and budget and informs the Army's annual planning efforts as part of the Planning, Programming, Budgeting and Execution (PPBE) process. Despite its budget and programming implications, the ASP is a strategic document not directly linked to any single POM or fiscal year. The DCS, G-3/5/7 serves as the proponent for the ASP, and coordinates with relevant HODA Principal Officials, Army Commands (ACOMs), Army Service Component Commands (ASCCs) and Direct Reporting Units (DRUs) at appropriate times throughout ASP development. The ASP is published not later than 120 days following the release of each QDR. 14. Additionally, the ASP is reviewed every two years and republished when senior leaders determine an update is required. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

TAP – Section III Army Planning Guidance (APG)
Initiates the Army's annual PPBE process Addresses near, mid, and far term planning issues that apply to a specific budget year, later in the FYDP, or endure throughout it Provides a detailed description and applicable senior leader guidance and identifies a responsible body for adjudication of that issue APG provides descriptive or prescriptive prioritization guidance addressing designates those areas that the Secretary and Chief of Staff, Army has determined require centralized performance assessment management by the ACP Show Slide #37: TAP – Section III Army Planning Guidance (APG) 15. Army Planning Guidance (APG) - The purpose of the APG, section Ill of TAP, is to initiate the Army's annual PPBE process by identifying and providing guidance for key planning issues that require resolution or additional guidance before the POM build is complete. a) These planning issues may be identified from the previous year's POM, throughout program review, or as a result of decisions from other external actors (e.g., Congress; OSD; the White House; etc.). b) The APG will address near, mid, and far term planning issues that apply to a specific budget year, later in the FYDP, or endure throughout it. The APG identifies each issue, provides a detailed description and applicable senior leader guidance and identifies a responsible body for adjudication of that issue (e.g., the Army Management Action Group (AMAG); Planning, Program Budget Committee (PPBC); Army Requirements Oversight Council (AROC); etc.). c) Additionally, the APG provides descriptive or prescriptive prioritization guidance addressing the hierarchy of functions for program development and budget execution. This prioritization guidance provides the ACOMs, DRUs, and Program Evaluation Groups (PEGs) with initial senior leader guidance that remains applicable throughout the PPBE process unless superseded by new guidance from the Secretary and/or Chief of Staff, Army. d) Finally, the APG designates those areas that the Secretary and Chief of Staff, Army has determined require centralized performance assessment management by the ACP. The DCS, G-3/5/7 serves as the proponent for the APG, and coordinates with the other co-chairs of the PPBC and members of the PPBC throughout the staff process. The APG is published not later than July 4th, each year. Further updates and fragmentary orders (FRAGOs) to the APG may be published as refinements require. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

TAP – Section IV Army Programming Guidance Memorandum (APGM)
Codifies decisions made throughout the planning process The APGM signals the end of the Army's planning phase and beginning of the Army's programming phase for the annual PPBE process and provides specific programming guidance that informs the POM build. The Director, PA&E (DCS, G-8) serves as the proponent of the APGM, and coordinates with the other co chairs of the PPBC and other members of the PPBC throughout the staff process. Goals Objectives Sub-Objectives Prioritized Tasks Show Slide #38: TAP – Section IV Army Programming Guidance Memorandum (APGM) 16. Army Programming Guidance Memorandum (APGM) - The purpose of the APGM, section IV of TAP, is to codify decisions made throughout the planning process in order to resolve each of the issues identified in the APG. a) The APGM signals the end of the Army's planning phase and beginning of the Army's programming phase for the annual PPBE process and provides specific programming guidance that informs the POM build. b) The Director, PA&E (DCS, G-8) serves as the proponent of the APGM, and coordinates with the other co chairs of the PPBC and other members of the PPBC throughout the staff process. c) The APGM is published following the POM Off-Site, but not later than mid-January, each year. Specific technical guidance will be published during the PPBE process, as required (e.g., capturing senior leader decisions; etc.). 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Army Campaign Plan (ACP)
TAP – Section V Army Campaign Plan (ACP) Establishes and monitors annual priorities and initiatives from the Secretary and Chief of Staff, Army Composed of Strategic Efforts, an Operational Design, Strategy Map and a published document Show Slide #39: TAP – Section V Army Campaign Plan (ACP 17. Army Campaign Plan (ACP) - The purpose of the ACP, section V of TAP, is to establish and monitor annual priorities and initiatives from the Secretary and Chief of Staff, Army that require measurable endstates or decisions in the year of execution. a) The ACP is composed of Strategic Efforts (SE), an Operational Design, Strategy Map and a published document. The ACP document describes two distinct, but interrelated, efforts. The Strategic Efforts identify priorities and initiatives that require integration across the Army and assist in aligning objectives, resources and time. Generally, no more than six SEs will be identified for execution in a single Fiscal Year (FY). b) The first Strategic Effort of each year will be the 1-N prioritization Rehearsal of Concept (ROC) Drill, led by the DCS, G-3/5/7. The outcomes of the 1-N ROC Drill are the approved Army Priorities, 1- N list, and FY Endstate(s). Each endstate directly informs semi-annual performance assessments. As additional Strategic Efforts are executed, monitored and evaluated throughout the year, the ACP identifies key decision points for senior leaders and enables support for the strategic intent communicated in the AV and ASP. c) In addition to the current year synchronization of SEs, the ACP will facilitate performance assessment. Performance assessment forums, chaired by the Secretary and Chief of Staff, Army will be held semi-annually in the 2nd and 4th quarters to identify progress towards Strategic Effort #1 (1-N list) and FY endstates in terms of effectiveness (i.e.. outcomes) and efficiency (i.e.. prudent use of resources). Performance assessment reviews co-chaired by the Under Secretary of the Army (USA) and Vice Chief of Staff, Army (VCSA) will occur 90 days prior to the semi-annual briefings chaired by the Secretary and Chief of Staff, Army. d) The USA and VCSA will determine whether any Campaign Objectives (COs) and Major Objectives (MOs) will be briefed to the Secretary and Chief of Staff, Army. Other COs and MOs not identified as Army priorities in the ACP are directly managed by HQDA Principal Officials with oversight provided by the USA and VCSA as required. The DCS, G-3/5/7 serves as the proponent of the ACP and coordinates with HODA Principal Officials, ACOMs, ASCCs and DRUs, as required. The ACP is published not later than October 15 most years. In years when the AV and ASP are published, the ACP will be published within 60 days of their release to ensure that Strategic Efforts (SEs) align with senior leader strategic guidance.

Total Army Analysis (TAA)
Determines required Army capabilities through modeling and simulation 9 year planning horizon Primary inputs National Military Strategy Strategic Planning Guidance/Joint Programming Guidance Operational scenarios from Combatant Commanders Force Structure and equipment from Commanders Modernization actions from Program Executive Officers Primary outputs Required force structure Initial POM force structure Show Slide #40: Total Army Analysis (TAA) 18. Total Army Analysis is the Army’s process for objectively determining Army capabilities needed to meet the missions imposed by the National Command Authority. It uses guidance from the president, as published in the National Security Strategy and relayed to the Department of Defense in the National Military Strategy and the Guidance for Development of the Force/Joint Programming Guidance a) Develop, analyze, determine and justify a POM force, aligned with the GDF/JPG and TAP. The POM force is that force projected to be raised, provisioned, sustained, and maintained within resources available during the Future Years Defense Plan (FYDP) b) Provide analytical underpinnings for the POM force for use in dialogue among Congress, OSD, Joint Staff, Combatant Commanders and the Army. c) Assess the impacts of plans and potential alternatives for materiel acquisition, the production base, and equipment distribution programs on the projected force structure. d) Assure continuity of force structure requirements within the PPBE process. e) Provide program basis for structuring organizational, materiel, and personnel requirements and projected authorizations. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Programming Phase Show Slide #41: Programming Phase Part 2 (Phase): Programming K. The definition of programming is the art of translating guidance into action to produce combat capability by a balanced allocation of resources: 1. How big will the Army be? (civilian and military) 2. What forces will it contain? (force structure) 3. What will the Army buy? (equipment) 4. Where and what will the Army build? (MILCON) 5. What are expected resource constraints? 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Programming Phase (Cont.)
Definition of Programming: The art of translating guidance into action to produce combat capability by a balanced allocation of resources: How big will the Army be? (civilian and military) What forces will it contain? (force structure) What will the Army buy? (equipment) Where and what will the Army build? (MILCON) What are expected resource constraints? Show Slide #42: Programming Phase (Cont.) 6. PPBE programming is the art of translating guidance into action to produce combat capability by a balanced allocation of resources. The Programming Phase is focused on the Army's key programming document, the Program Objective Memorandum (POM) and the DOD's action on each Service's POM request, the Program Decision Memorandum. The POM formulation and review process is one of the most all-encompassing activities within the HQDA. All activities require resources to function and perform their missions. The POM process is the vehicle through which these requirements are validated and resources are programmed in DOD FYDP. Balance is necessary since resource managers must address current and future requirements with limited time and funding. Balancing resources attends to a number of key questions concerning personnel strength, force structure, equipment, military construction priorities, and funding constraints. Programming is also known as the art of taking operational requirements and allocating resources to them to generate a balanced set of military capabilities. 7. While planning clarifies the requirements and objectives; programming tackles the hard work of resource allocation. Programming activities occur primarily at the Service and Defense Agency levels. At HQDA programming translates the DPG and TAP input into a comprehensive and detailed allocation of forces, manpower, and dollars for a six-year period. Through programming Army senior leadership allocates resources to support Army roles and missions. PPBE integrates and balances centrally managed programs for manpower; operations; research, development and acquisition (RDA); stationing (installations); and construction (MILCON). PPBE incorporates the requirements of ACOMs for manpower, operations and maintenance (O&M), housing and construction. 8. Recall that the primary product of the PPBS Planning Phase is the Guidance for the Development of the Force (GDF). The GDF presents the strategy underlying the DOD programs and identifies key planning and programming priorities for each Service to accomplish that strategy. a) HQDA draws on the GDF (and other planning documents) to create the Army's key planning document, TAP. TAP establishes priorities for dollar and manpower allocation. These priorities directly impact Army force package resourcing decisions to meet readiness requirements. The goal of TAP is to provide relatively constrained guidance to Army programmers on the military capabilities required over the long (15-year) and mid (6-year) terms 9. Illustrate a program by using the following notional example. Assume the Army has determined there is a strategic and operational requirement to develop and field a new tank with increased capabilities. 10. It uses research, development, testing and evaluation (RDT&E) to develop the tank. HQDA must also program procurement dollars to produce the newly developed and approved tank. 11. To take advantage of the new tank's capabilities the Army must construct new ranges and motor pools or dramatically upgrade existing facilities. Therefore, programmers must include Military Construction, Army (MCA) funding. In addition, the new tanks fire an improved main gun round, requiring ammo production for basic loads, training, and war reserves. 12. Many other considerations enter the programmer's area of interest. Operations and Maintenance, Army (OMA) funding is needed to both field the tank and then sustain it, although O&M funding after fielding is covered in unit operations tempo (OPTEMPO) accounts. However, O&M is needed for the National Guard to overhaul and deploy the displaced tanks that flow to them. Note also that programmers also account for military and civilian personnel requirements including people in the Program Manager's office and fielding teams. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Show Slide #43: Management Decision Package L. We previously noted that PPBE is a continuous and repetitious process. A FY that is currently a PrY will become a BY in a future cycle, which later becomes a CY, and then a PY. For example assuming today's date is January 15, 2000, FY'03, currently a PrY, will become a BY on October 1, In addition, FY'03 becomes the CY on October 1, 2002 and a PY on October 1, While it is helpful to think of the sequential nature of the budget cycle, it is also important to note that the DOD focus is always on multiple PPBE phases. 1. The MDEP is a multi-appropriation, multi-command, multi-year program package that competes for Army resources. For example the development of a new main battle tank requires funding from multiple appropriations, is fielded to multiple Army commands and takes many years from development to full fielding. MDEPs contain program, budget, and execution data. Programmers present new and existing programs requiring new or adjusted funding to Army resource decision makers using MDEPs. MDEPs address the PY, CY, and BYs data plus the six POM years of data for a total of nine years. The MDEP is the basic building block of the programming phase. It reflects force capability in terms of resources needed for implementation. HQDA introduces new programs as well as existing programs requiring increases or other adjustments through the use of MDEPs. MDEPs cover nine (9) years depending on whether you are looking at it from programming or budgeting perspective and where you are in the biennial cycle 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Management Decision Package (MDEPs) Six Resource Areas
Missions of MTOE units Missions of TDA units and Army-wide functions Missions of Installations Acquisition, fielding, and sustainment of weapon and information systems Special visibility programs (SVPs) Short term projects (STPs) Show Slide #44: Management Decision Package (MDEPs) Six Resource Areas 2. The MDEP describes the particular program or function; specifies required manpower and dollars, and applies the data to one of six resource management areas. 3. The first two areas relate to Army unit missions and force structure. First, deployable Army units are structured as Modified Table of Organization and Equipment (MTOE) units, for example is an armored battalion home-based at Fort Hood. The battalion is supported from Fort Hood but remains deployable. Second, non-deployable units performing standard functions are Table of Distribution and Authorization (TDA) units. For example, Fort Jackson's Soldier Support Center performs training and doctrine functions, but is not deployable. 4. The third and fourth management areas reflect two critical Army support functions: installation platforms and equipment acquisition, fielding, and sustainment. The acquisition, construction, modification and sustainment of installations represent an essential but resource intensive Army function area. Likewise the acquisition, fielding, and sustainment of weapon and information systems is also costly but critical to the readiness of current and future forces. 5. Finally, the fifth and sixth management areas are reserved for special visibility programs (SVPs) and short term projects. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Management Decision Package ACOM POM MDEP MDEPs Installation Level ARMY POM Show Slide #45: Management Decision Package 6. Army Commands, the Army Staff, and the Army Secretariat build and prioritize MDEPs displaying each category of resource required for each appropriation and each affected command. The ACOMs submit their prioritized MDEPs to HQDA in their own ACOM POM in accordance with guidance in the APGM. HQDA in turn prioritizes programs within the Army POM. The Army POM is a detailed plan of how the Army will distribute its expected resources (requested Congressional appropriations) across its many competing programs. 7. The purpose of the ACOM POM is for submission and inclusion into the Army POM. The Army POM details resources over 6 years. It is the final Programming step. The Army POM depicts a balance between requirements and resources. 8. The acronym ACOM is being used to include Army Commands (ACOMs), Army Service Component Commands (ASCCs) and Direct Reporting Units (DRUs) 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

SA & CSA FINAL DECISIONS (Late May)
POM Building…The Process ACOM POMs Submitted Program Evaluation Groups UNRESOURCED Included UNRESOURCED (PEGs) meet: AT RISK UNRESOURCED * Cdr’s Program Assessments AT RISK RESOURCED UNRESOURCED * Assess Affordability AT RISK PROGRAMS RESOURCED * ACOM Exec Pgm Review Update AT RISK * Review ACOM inputs, U-CDR IPL PROGRAMS RESOURCED * Proposed $ realignments PROGRAMS RESOURCED * Draft program in 6 functional areas PROGRAMS * Summary Decrement Lists 6 Areas (Jan-Feb) (Dec-Jan) CoC/PPBC FUNCTIONAL REVIEW SLRG 3-Star BRP Review *Prioritize issues on the margin for presentation to ARB (Mid Apr) *Resolve resourcing issues *SA and CSA, as EOH Members, make final decisions. (Mid May) *Review PEG’s work *Clarify issues *Draft an affordable program (late Feb-Mid May) Show Slide #46: POM Building…The Process 9. The POM process within the Army. 10. The ACOMs submit their own POMs to HQDA with input to relevant MDEPS. The PEGs evaluate ACOM POM input, prioritize the MDEPs, and build a draft Army POM. The PBAT, BRPs and EOH in turn review the draft POM, refine for affordability and define issues. The SA, with the CSA’s recommendation, makes the final decision on the Army’s POM submission. Remember that programming via the POM process is the Army Senior Leadership’s method of allocating resources to support Army Roles and Missions. The Army POM is a detailed plan of how the Army will distribute its resources (Congressional appropriations) across its many competing programs. SA & CSA FINAL DECISIONS (Late May) Submit POM to OSD 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Program Review –Typical Timeline
Aug Sep Oct Nov Dec 3-Star Programmers Reviews DMAG Reviews POM/BES Received OSD Identifies Issues Form Issue Teams and Develop Options OSD Issues PDM Army POM/BES submitted Army POM Briefs To OSD Army Forms Issue Teams Army Defends & Provides Issue Team Support Army Responds to PDM 3 Star Programmers Chair: Director, OSD PA&E Members: Principal Deputy, USD (Comptroller); Principal Deputy, USD (Policy); Principal Deputy, USD (AT&L); ASD (Force Management Policy; ASD (Health Care); ASD (Reserve Affairs); PDASD (NII); Director Operational Test and Evaluation; Army G-8; DCNO (Resources, Warfare requirements, and Assessments); USMC DC/S (Programs and Resources); USAF DC/S (Plans and Programs); J-8 (Director for Force Structure, Resources, and Assessment) Deputy’s Management Action Group (DMAG) Chair: DEPSECDEF Vice Chair: VCJCS Members: USDs (A&T, Comptroller, Policy, P&R, Intel) Service Under Secretaries; Service Vice Chiefs Observers: Principal Deputy Director, USD Policy ASD, NII/OSD CIO, Dir. PA&E, Dir. A&M, Principal Deputy Director, PA&E, J-8, J-5 Show Slide #47: Program Review – Typical Timeline 11. The graphic lays out the flow of a typical Program Review. One thing to remember about a “typical” Program Review is that there are always small changes from year to year. However, certain events must happen each year so it is worthwhile to reviewing the process flow so the sequence of events can be explored. 12. OSD and Army Issue teams work in parallel, with the Army team supporting the OSD team and advocating the Army position as required. Each OSD Issue team will assess the issues assigned to it and develop alternatives for decision. Army Issue teams will work with OSD to present the Army position on the assigned issue and keep Army leadership informed throughout the process. OSD Issue teams will brief alternatives and their evaluation of the alternatives – complex issues may be broken down into component parts requiring discrete issue papers or issue briefings. 13. One thing that is immediately apparent is the notion of parallel processes. OSD is conducting the Program Review while the Services are readying a program defense. As can be seen from the graphic, service activities typically mirror OSD activities. Throughout each step of the process, the services are trying to position themselves to respond to expected OSD questions and taskers, provide required reports, and offer best possible defense of their program position. Facilitator’s Note: Conduct these quick mid-point check on learning questions before moving on to the next two phases. Q1: Which document, created by the Chairman, Joint Chiefs of Staff is used by the SECDEF to provide overall fiscal guidance to the PPBE process? A1: NMS document Q2: What are the four sections of the TAP? A2: ASPG, APPG, APGM, and ACP Q3: Which document reflects resource constrained guidance that the DOD will impose on the Army during the POM period? A3: Defense Planning Guidance (DPG) Q4: What is a multi-year package containing execution, budget, and program data for a given program or function? A4: Management Decision Package (MDEP) Q5: True/False – Is the primary purpose of the ACOM POM to prioritize requirements for inclusion in the Army POM? A5: True Q6: What is the Army’s final programming document? A6: Program Objective Memorandum (POM) Q7: What period does the approved Army POM cover? A7: Six years 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

PPBE Budgeting Phase Show Slide #48: PPBE Budgeting Phase Part 3 (Phase): Budgeting M. In the PPBE Budgeting Phase emphasis is on the Army's key budgeting document the Budget Estimate Submission (BES) and the DOD's action on each service's BES, the Resource Management Decision (RMD). 1. Budgeting translates decisions in the PPBE Programming Phase into an appropriation format for Congressional action. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Budgeting Phase Formal phases of budgeting: Formulation Justification Short-range allocation of resources The major goal of budgeting is to maintain consistency with the POM To this end the Programming and Budgeting phases of the PPBE Process were integrated in 2003 Show Slide #49: Budgeting Phase 2. Once we have an approved POM we move into the budgeting phase. 3. Formal phases of budgeting: Formulation b) Justification c) Short-range allocation of resources 4. The major goal of budgeting is to maintain consistency with the POM a) To this end the Programming and Budgeting phases of the PPBE Process were integrated in 2003 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Army’s Overarching Objective
POM to BES: Army’s Overarching Objective The “big” decisions will be made during POM development … major programmatic issues will not be left unresolved when the POM is submitted From POM to BES, changes will be made only to … Fine-tune issues React to new information In other words: the POM = the BES Show Slide #50: POM to BES: Army’s Overarching Objective 5. To say that major programmatic decisions will be made during the programming phase might seem to be stating the obvious. But it is a lesson HQDA has learned painfully. There have been occasions when decisions on major issues were not made before the POM was submitted. Instead, the decisions kept being pushed downstream. This causes numerous problems, one of which is that when decisions are made late in the process, then budget analysts are left with insufficient time to prepare the detailed exhibits required by OSD, and the quality of the budget suffers. 6. In addition to major decisions sometimes being delayed, it frequently happened in the past that an agency that didn’t like a decision made during the POM build would resurface the same issue during the BES process. Note: This slide clearly says that this will no longer be allowed. To its credit, HQDA has done a pretty good job of adhering to this guidance. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Typical Timeline from POM/BES to President’s Budget (PB)
August-September: Army Submits POM and BES to OSD POM BES Program Review [CAPE] Budget Review [USD(C)] OSD Leads Two Parallel Reviews of the Army Submission Show Slide #51: Typical Timeline from POM/BES to President’s Budget (PB) 7. The POM and BES are submitted in August/September to OSD – they follow parallel paths through the approval process. 8. The PB, with essentially the same content, is finalized in January and will incorporate the results of the program and budget review. 9. CAPE: Director of Cost Assessment & Program Evaluation (CAPE) PDM RMD OSD Issues Decisions PB January: Army Submits PB to OSD

(RMDs) Resource Management Document Prepared by DOD USD (C)
Period: Prior Year, Current Year, and two Budget Years Provides decisions on approving or disapproving the service’s budget estimate submissions for inclusion in the President’s Budget Stated in dollars and manpower requirements Consolidated with PDM OCT 01 (no revisits) Show Slide #52: Resource Management Document (RMDs) 10. Remember we said that the BES was taking the POM and breaking it down into Appropriations. It’s submitted to DOD who reviews and makes any corrections or changes to it. a) Basically it is near term changes b) Unexpected last minutes changes – will change how much we request to put into our appropriation (ex Sep 11, Price Changes) c) These are changes to the approved POM 11. RMM (Summer Issue Cycle) a) Used to be able to fight it out over old stuff – no more only new stuff b) Now only changes due to changes in Price or Senior leadership changes c) IE – SECDEF wants to fund this more or something new 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Command Budget Estimate (CBE)
Record activities to be conducted and resources needed for their support Identify action to be accomplished by each subordinate element Establish basis for measuring execution Document Unfinanced Requirements (UFRs) Show Slide #53: Command Budget Estimate (CBE) 12. CBE is actually making your budget – we will do this next week. a) CBE Based off of guidance in the BMG. b) CBE Initially done at Installation level. c) Submitted to MACOM who rolls it all up (Stops here – used to be submitted to DA). d) Make sure CBE = PBG i. Record activities to be conducted and resources needed for their support ii. Identify action to be accomplished by each subordinate element iii. Establish basis for measuring execution iv. Document Unfinanced Requirements (UFRs) 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Appropriation Structure
21 * Military Personnel, Army (MPA) 21 * Operation & Maintenance, Army (OMA) 21 * Aircraft Procurement, Army 21 * Missile Procurement, Army 21 * Procurement of Weapons & Tracked Combat Vehicles, Army 21 * Procurement of Ammunition, Army 21 * Other Procurement, Army 21 * Research, Development, Test, & Evaluation, Army (RDT&E) 21 * Military Construction, Army (MCA) 21 * National Guard Personnel, Army (NGPA) 21 * Operation & Maintenance, Army National Guard (OMANG) 21 * Reserve Personnel, Army (RPA) 21 * Operation & Maintenance, Army Reserve (OMAR) 21 * Military Construction, Army National Guard (MCANG) 21 * Military Construction, Army Reserve (MCAR) Show Slide #54: Appropriation Structure 13. The DOD designs fifteen appropriation classification codes for Army major appropriations. Let’s look at the first three sets of code entries for these appropriations, for example 21 * A department code of 21 always signifies that the Army is the recipient of the appropriation. The asterisk (*) indicates a one position alphanumeric code will be entered designating the fiscal year funds are available for obligation. a) Finally a four-digit number indicates the type of funds being used. b) For example, refers to an Operations and Maintenance, Army (OMA) appropriation available for obligation in FY DFAS-IN Regulation FY provides a full explanation of Army appropriation classification codes. c) Military Personnel, Army (MPA), code 21*2010, signifies the payroll account for military and Department of the Army (DA) civilians. This appropriation makes up 60% of the Army budget and is available for obligation for one year. Thus Congress must pass a new MPA appropriation each year. It provides for pay, allowances, individual clothing, subsistence, and permanent change of station for members of the active component. d) Military Construction, Army (MCA), code 21*2050, has the longest available period of obligation for an appropriation, 5 years. It signifies appropriations for the acquisition of land and construction of buildings for which authorizing legislation is required. An appropriations bill authorizes the construction and the appropriation bill provides funding over a five-year obligation window. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Appropriation Definition
An act of Congress providing budget authority to incur obligations for a specified purpose and to make subsequent payments out of the treasury of the United States Appropriations are classified as annual, multiple-year, or no year Show Slide #55: Appropriation Definition e) We stated that the BES converts programs into appropriations. Note: What is an appropriation? An act of Congress providing budget authority to incur obligations for a specified purpose and to make subsequent payments out of the treasury of the United States. f) An appropriation is providing $ for the programs that have been authorized by the Congressional Authorization Act. g) Appropriations can be: i. Annual – 1 year to spend (OMA) ii. Multiple Year – like MCA (5 years to spend) iii. No year – revolving funds - carry over don’t expire 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Military Personnel, Army (MPA) 2010 Available for obligation for one (1) year Provides for pay, allowances, individual clothing, subsistence and permanent change of station for members of the active component Show Slide #56: Military Personnel, Army (MPA) 2010 14. MPA: a) 1 year availability b) Managed at DA c) Active MILPAY only i. Provides for pay, ii. allowances, iii. individual clothing, iv. subsistence v. and permanent change of station for members of the active component. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Operation and Maintenance, Army (OMA) 2020
Available for obligation for one (1) year Provides for the operation and maintenance of Army installations and major units to include equipment, facilities, supplies, and civilian pay Show Slide #57: Operation and Maintenance, Army (OMA) 2020 15. OMA: a) 1 year availability b) This is the Bulk of the money most people deal with: c) (Utilities / TDY / Training / Civilian salaries) d) Provides for the operation and maintenance of Army installations and major units to include i. equipment, ii. facilities, iii. supplies, iv. and civilian pay. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

The Five Army Procurement Appropriations (PA) 2031 - 2035
Available for obligation for up to three (3) years Provides for the procurement, manufacture, and reconfiguration of aircraft, missile, weapons and tracked combat vehicles, ammunition, and other items to include spare and repair parts Show Slide #58: The Five Army Procurement Appropriations (PA) 16. Procurement: a) 1-3 year availability (depending on what Congress states) i. $250,000 threshold – over $250,000 must use procurement $ ii. Under $250,000 usually use OMA b) Provides for the procurement, manufacture, and reconfiguration of i. aircraft, ii. missile, iii. weapons and tracked combat vehicles, iv. ammunition, and other items to include spare and repair parts. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Research, Development, Test and Evaluation (RDT&E) 2040
Available for obligation for two (2) years Provides for the development, engineering, design, purchase, fabrication or modification of end items, weapons, equipment or materials Show Slide #59: Research, Development, Test and Evaluation (RDT&E) 2040 17. RDT&E: a) 2 year availability i. Research, Development, and Acquisition stuff b) Provides for the development, i. engineering, ii. design, iii. purchase, iv. fabrication or modification of end items, weapons, v. equipment or materials. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Military Construction, Army
(MCA), (MCAR), (MCANG) 2050, 2085, 2086 Available for obligation for five (5) years Provides for the acquisition of land and construction of buildings for which authorizing legislation is required Show Slide #60: Military Construction, Army (MCA), (MCAR), (MCANG) 2050, 2085, 2086 18. MCA: a) 5 year availability i. Build or buy new facilities b) Provides for the acquisition of land and construction of buildings for which authorizing legislation is required. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

O&M, Army Reserve (OMAR) 2080, Army National Guard (OMANG) 2065
Available for obligation for one (1) year Provides for the operation and maintenance of the Army Reserve and National Guard to include training, administration, travel and transportation, communication and procurement of services, supplies and equipment Show Slide #61: O&M, Army Reserve (OMAR) 2080, Army National Guard (OMANG) 2065 19. OMAR & OMANG: a) 1 year availability i. Just like the Active’s 2020 OMA ii. Funds the operations of the NG and Reserves b) Provides for the operation and maintenance of the Army Reserve and National Guard to include training, i. administration, ii. travel and transportation, iii. communication and procurement of services, supplies and equipment. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Budget Activities for OMA
There are four Budget Activity (BA) levels in OMA: BA 1 - Operating Forces BA 2 - Mobilization BA 3 - Training & Recruiting BA 4 - Administration & Service Activities Show Slide #62: Budget Activities for OMA N. The Army needs to track its money by appropriation. 1. Each appropriation has its own breakdown. 2. We will look at 2020 – OMA a) 2020 is broken down into smaller levels for tracking b) The first being Budget Activities (BA) c) 4 BA’s with OMA 3. To Shift money between BA’s need to get approval at DA Facilitator’s Note: Inform learners that we will first start with and look at BA 1 Operating Forces 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

BA 1 – Operating Forces Activity Group 11- LAND FORCES 111 Division Airborne Division 112 Corps Combat Forces 113 Corps Support Forces Activity Group 12 - LAND FORCES READINESS 121 Force Readiness Operations Support 122 Land Forces System Readiness 123 Land Forces Depot Maintenance Activity Group 13 - LAND FORCES READINESS SUPT 131 Base Operations Support 132 Real Property Maintenance 134 Unified Commands Subactivities (SAGs) Show Slide #63: BA 1 – Operating Forces 4. OMA is further broken down by BAG’s and SAG’s (Budget Activity Groups / Sub activity Groups) - 1st digit is BA, 2d - BAG, 3rd - SAG Examples: -BA 1 - Operating Forces -BAG 11 Land Forces (also have 12 Land Forces Readiness / 13 Land Forces Readiness Support) - 2d number: 1, 2, 3 are the BAGs- -11 - Land Forces - contains SAG’s -SAG 111 Division (also have 112 Corps Combat Forces / 113 Corps Support Forces) 5. Appropriations can get extremely specific to where the money goes (such , which means Airborne Division, 82d) 6. Further down it goes the further specific it gets – reduces flexibility for the RM to move funds to cover needs. 7. Guidance tells you normally what you can move but generally: a) MACOM’s can move money between BAG’s (in the same BA) b) Installations can move between SAG’s (in the same BAG) 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

BA 2 - Mobilization Activity Group 21 - MOBILITY OPERATIONS 211 Strategic Mobility 212 War Reserve 213 Industrial Preparedness 214 Army Preposition Stock (APS) 219 Reimbursable Show Slide #64: BA 2 - Mobilization 8. Here’s another example: a) Money is used for mobilization stuff b) Activity Group 21 - MOBILITY OPERATIONS i Strategic Mobility ii War Reserve iii. 213 Industrial Preparedness iv Army Preposition Stock (APS) v Reimbursable 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

BA 3 – Training & Recruiting
Activity Group 31 - Accession Training 311 Officer Acquisition 312 Recruit Training 314 Reserve Officers Training Corps (ROTC) 315 Service Academy Base Support Activity Group 32 - Basic Skill & Adv. Training 321 Specialized Skill Training 322 Flight Training 325 Base Support Activity Group 33 - Recruiting & Other Training & Ed. 331 Recruiting and Advertising 332 Examining 334 Civilian Education and Training 335 Junior ROTC 336 Base Support - Recruiting & Exam Show Slide #65: BA 3 – Training & Recruiting 9. Some for BA 3: a) Fort Jackson gets a lot of 312 for Recruit Trng, 321 for Specialized Skill Trng and 325 for Base Support. b) 325 is Base support but it is Base Support money to specifically support training and mission of Basic Skill and Advanced Training. c) Activity Group 31 - Accession Training i Officer Acquisition ii Recruit Training iii Reserve Officers Training Corps (ROTC) iv Service Academy Base Support v. Activity Group 32 - Basic Skill & Adv. Training vi Specialized Skill Training vii Flight Training viii. 325 Base Support ix. Activity Group 33 - Recruiting & Other Training & Ed. x Recruiting and Advertising xi Examining xii Civilian Education and Training xiii. 335 Junior ROTC xiv Base Support - Recruiting & Exam 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Service Wide Activities
BA 4 – Administration & Service Wide Activities Activity Group 41 - SECURITY PROGRAMS 411 Security Programs Activity Group 42 – LOGISTICS OPERATIONS 421 Service wide Transportation 422 Central Supply Activities 423 Logistic Support Activities 424 Ammunition Management Activity Group 43 - SERVICEWIDE SUPPORT 431 Administration 432 Service wide Communications 438 Base Support Activity Group 44 - SUPPORT OF OTHER NATIONS 441 International Military Headquarters 442 Misc. Support of Other Nations Show Slide #66: BA 4 – Administration & Service Wide Activities 10. Just another breakdown and the last for OMA: 11. Only get funding for those areas that you have a mission (Base support only if doing Service wide Support) or 442 (Misc. Support of Other Nations). a) Activity Group 41 - SECURITY PROGRAMS i Security Programs b) Activity Group 42 – LOGISTICS OPERATIONS i Service wide Transportation ii Central Supply Activities iii Logistic Support Activities iv Ammunition Management c) Activity Group 43 - SERVICEWIDE SUPPORT i Administration ii Service wide Communications iii Base Support d) Activity Group 44 - SUPPORT OF OTHER NATIONS i International Military Headquarters ii Misc. Support of Other Nations 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Budget Process CONGRESS AUTHORIZATIONS APPROPRIATIONS PRESIDENT & OMB PRESIDENT’S BUDGET APPORTIONMENT Show Slide #67: Budget Process 12. The budget justification process presents, justifies, and defends the services’ and defense agencies BESs, as a portion of the President’s budget, to Congress. The Congress establishes budget limits, authorizes programs, and passes appropriations. Budget execution begins once appropriation bills become law and apportionment begins. a) Once BES is submitted and changes made through RMD b) All service budgets go to OMB c) Who consolidates and becomes president’s budget i. Submitted 1st week of Feb d) Guidance comes back down to ACOM’s on changes e) Up to Congress and then back down Through Apportionment (Just splitting money up – initial distribution of funds) DEPARTMENT OF DEFENSE BUDGET ESTIMATES BUDGET EXECUTION 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Authorization vs. Appropriation
Authorization Bill: Authorizes programs. Specifies its general aim and conduct and unless “open-ended,” puts a ceiling on funds that can be used to finance it. Usually enacted before appropriation bill is passed Appropriation Bill: Grants the actual funds approved by authorization bills, but not necessarily to the total permissible amount under the authorization bill Show Slide #68: Authorization vs. Appropriation f) Authorization - Authorizes you to buy something – I.e. - The Army is allowed buy 10 tanks i. Authorization Bill: Authorizes programs. Specifies its general aim and conduct and unless “open-ended,” puts a ceiling on funds that can be used to finance it. Usually enacted before appropriation bill is passed g) Appropriation - Actually given the money to buy the 10 tanks i. Appropriation Bill: Grants the actual funds approved by authorization bills, but not necessarily to the total permissible amount under the authorization bill h) There are differences because 2 different committees, so funding in the appropriation may not be enough to buy all authorized – I.e. – Auth. 10 but App said 12 - buy 10 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Six Congressional Committees
House Budget Committee (HBC) Senate Budget Committee (SBC) House Armed Services Committee (HASC) Senate Armed Services Committee (SASC) House Appropriations Committee (HAC) Senate Appropriations Committee (SAC) Concurrent Budget Resolution (CBR) Defense Authorization Bills Show Slide #69: Six Congressional Committees O. Recall that the Constitution specifies that, “No money shall be drawn from the Treasury but in consequence of appropriations made by law.” Work on defense issues within the President’s budget occurs within 6 committees focusing on three separate but related objectives. Two committees, one in each house, craft a concurrent budget resolution establishing overall spending limitations. Two other committees manage the authorization process for defense issues. Finally, the House and Senate appropriation committees take action on thirteen appropriation bills that create budget authority for federal agencies. 1. An authorization act establishes or continues a federal program or agency, and includes compliance guidelines. Both the House Armed Services Committees (HASC) and the Senate Armed Services Committees (SASC) manage the authorization process for almost all defense related programs. While some authorizations are permanent, defense budget authority, procurement quantities, personnel end strength, and military construction projects usually require annual authorizations. The end product is the National Defense Authorization Act (NDAA). The OSD and services work closely with both committees as they craft the NDAA. 2. Work on authorization and appropriation bills occurs simultaneously. The House Appropriations Committee (HAC) and the Senate Appropriations Committee (SAC) manage the process through subcommittees focused on the 13 appropriation bills. Normally the DOD is concerned with only three of the 13 appropriation bills: Defense, Military Construction, and Energy and Water Development. 3. All appropriation bills originate in the House. A bill prepared in an appropriation subcommittee must be approved by floor action of the full House. In addition, appropriation bills may not exceed the ceilings set in the CBR without a 60% vote of Congress. When the revised bill is agreed to, Congress sends it to the President for approval or veto. The passage of an appropriation act triggers the final phase of the PPBE, budget execution. 4. Within the Army, the two major phases of budgeting are formulation and justification. While submission of the BES culminates the formulation phase, Army personnel continue to justify the BES within DOD, OMB, and Congressional committees until the appropriate appropriation and authorization bills are passed and signed into law. 13 Appropriation Bills 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Steps to a Bill Becoming Law
HOUSE SENATE Subcommittee Defense Committee HAC, HASC House Vote Subcommittee Defense Committee SAC, SASC Senate Vote Budget Justification Mark Up House Vote Senate Vote President signs Show Slide #70: Steps to a Bill Becoming Law 5. House and Senate have similar committees working simultaneously. 6. Both have Defense Subcommittees and both have Armed Services and Appropriations Committees. 7. Different committees may call on testimony - support President’s budget 8. House Committee puts together the Authorizations and/or Appropriations Act. Committee agrees and then it gets a vote. Then sent to Senate Committee who marks it up agrees and then sends it to the Senate for a vote. Then goes to a joint committee to work out issues within the House and Senate - get approved. 9. Joint Committee works differences between the 2, then sent back to house and senate floors for vote to approve. Then sent to the President for signature. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

PPBE Execution Phase Show Slide #71: PPBE Execution Phase Part 4 (Phase): Execution Facilitator’s Note: Read and facilitate discussion on each bullet below P. At DOD Level, budget execution applies the funds appropriated by Congress to carry out the approved programs. The procedure entails apportioning, allocating and allotting funds; obligating and disbursing them; and evaluating associated reports to ensure the efficient and effective use of resources. 1. At DA Level, the ASA (FM&C) supervises and directs the financial execution of the approved budget. The Army manages and accounts for funds and manpower to carry out approved programs. The Appropriation Sponsors monitor how well HQDA, MACOMs, PEOs, and other operating agencies use allocated resources and adjusts resource requirements based on execution feedback 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Two Critical Execution Responsibilities
Compliance: Did we comply with the planning, programming, budgeting guidance as approved by Congress? Performance Measurement: Did we get the expected results? Show Slide #72: Two Critical Execution Responsibilities Facilitator’s Note: Read and facilitate discussion on each bullet below 2. TWO CRITICAL EXECUTION RESPONSIBILITIES a) Compliance: Did we comply with the planning, programming, budgeting guidance as approved by Congress? b) Performance Measurement: Did we get the expected results? 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

LSA #3 Check on Learning Q1: Is the TAA part of the Army Plan? A1: Yes Q2: Is the Army Strategic Plan (ASP) part of The Army plan? A2: Yes Q3: Is Army Vision part of The Army Plan? A3: Yes Q4: What is the final budget document that the Army turns into DOD? A4: Budget Estimate Submission (BES) Q5: What is a major goal of the budgeting phase? A5: Maintain consistency with the POM Q6: What database does OSD use to manage manpower and dollars? A6: The Future Years Defense Program Show Slide #73: LSA #3 Check on Learning Facilitator's Note: Continue asking the following check on learning questions, and facilitate discussion on answers given. Q1: Is the TAA part of the Army Plan? A1: Yes Q2: Is the Army Strategic Plan (ASP) part of The Army plan? A2: Yes Q3: Is Army Vision part of The Army Plan? A3: Yes Q4: What is the final budget document that the Army turns into DOD? A4: Budget Estimate Submission (BES) Q5: What is a major goal of the budgeting phase? A5: Maintain consistency with the POM Q6: What database does OSD use to manage manpower and dollars? A6: The Future Years Defense Program 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

LSA # 3 Summary Show Slide #74: LSA #3 Summary
Facilitator's Note: In this lesson we finalize with an overview on identifying the phases for the Planning Programming Budgeting and Execution (PPBE) process. Starting with the planning phase, the process used to acquire, allocate, and account for DOD personnel, equipment and financial resources. We then went to the programing phase, the art of translating guidance into action to produce combat capability by a balanced allocation of resources. We transition to the budgeting phase, which translates decisions in the PPBE programming phase into an appropriation format for congressional action. Finishing with the execution phase, funds appropriated by congress. “Or” Facilitator, have each group as a group write down one major main lesson learnt from this LSA, allow a few minutes for them to interact. Once all groups have their one major learnt lesson written, pass it to another group to compare their answer. Facilitate a discussion on each major learnt lesson mentioned by each group.

TLO Check on Learning Show Slide #75: TLO Check on Learning
Facilitator’s Note: Facilitator's, have each group as a group write down one question from this lesson, give about five minutes. Once all groups have their question written, pass it to another group to answer it. Facilitate a discussion on each question.

TLO Summary Action: Conduct overview of the Planning Programming Budgeting and Execution (PPB&E) process. Conditions: FM Leaders in a classroom environment working as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion. Standard: With at least 80% accuracy (70% for international learners) you must: Analyze the military resource management system Review budget cycles time period designations Identify phases for the Planning Programming Budgeting and Execution (PPBE) process Show Slide #76: TLO Summary Facilitator’s Note: Read TLO Action: Conduct overview of the Planning Programming Budgeting and Execution (PPBE) process Conditions: FM Leaders in a classroom environment working as a member of a small group, using doctrinal and administrative publications, self-study exercises, personal experiences, practical exercises, handouts, and discussion. Standard: With at least 80% accuracy (70% for international learners) you must: Analyze the military resource management system Review budget cycles time period designations Identify phases for the Planning Programming Budgeting and Execution (PPBE) process “Or” Facilitator's Note: In this lesson we discussed and had an overview on what the military resource management system should be, allocating Army resources, its flow of funds and DOD budget process history. We discussed the budget cycles time period designations terms and their specific cycle years. We finalize with an overview on identifying the phases for the Planning Programming Budgeting and Execution (PPB&E) process. The planning phase, the process used to acquire, allocate, and account for DOD personnel, equipment and financial resources. The programing phase, translating guidance into action to produce combat capability by balanced allocation of resources. Finish with the budgeting and execution phases, which translates decisions in the PPBE programming phase into an appropriation format for congressional action for execution of funds appropriated by congress. Facilitator's at this time, have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer. 11/7/2018 FINANCIAL MANAGEMENT SCHOOL

Planning, Programming, Budgeting, and Execution

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Planning, Programming, Budgeting, and Execution

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