9.4 Resource Management & Stewardship
Key Takeaways
- The four PPBE phases are planning, programming, budgeting, and execution, and the budget program operates on a fiscal year from 1 October through 30 September.
- A financial liability investigation is required for loss, damage, destruction, or theft of government equipment with an initial acquisition cost of $5,000 or greater, and for all sensitive, classified, or leased property regardless of cost.
- The DD Form 200, Financial Liability Investigation of Property Loss, documents the facts and circumstances of the loss.
- Fraud is intentional deception, waste is extravagant or careless expenditure from deficient practices, and abuse is intentionally wrongful or improper use of Air Force resources.
- The AF Form 332 is used to submit base civil engineer work requests, which are categorized as direct scheduled, planned, or emergency work.
The Resource Management System
AFH 1 states the premise: "All USAF resources have a value or cost associated with them." The resource management system focuses on outputs and resources used, managers effectively using resources, measuring actual performance compared to planned performance, and using financial plans and accounting to enhance management controls at each organizational level.
Being an effective steward "involves more than legal accountability." While every USAF member has a principal responsibility to ensure resources are used in the most cost-effective manner, commanders and supervisors are responsible for the efficient and economical use of all resources in their organizations, as well as budgeting, allocation, composition, and distribution.
The Key Duty Positions
| Position | Responsibilities |
|---|---|
| Commanders | Review, validate, and balance the financial plan; inquire about program conditions, review causes, weigh alternatives, and direct action; allocate sufficient resources to resource management system training |
| Comptrollers | Provide sound financial management and advice to commanders and staff; apply policies and procedures enabling accounting, budget, and cost functions |
| Responsibility center managers | Plan, direct, and coordinate subordinate organization activities; analyze plans, identify imbalances in resource distribution, analyze alternatives, and balance programs. They appoint resource advisors in writing |
| Cost center managers | The cost center is the basic production flight or work center. They regulate the consumption of work hours, supplies, equipment, and services and shift resources among production tasks to ensure the proper mix |
| Resource advisors | Monitor and help prepare resource estimates; help develop obligations and expense fund targets; monitor use of resources against projected consumption; serve as the primary point of contact on resource management for their responsibility center |
The Two Financial Bodies
| Body | Composition and role |
|---|---|
| Financial Management Board | Established by the senior or host commander at each base. Determines program priorities and ensures effective allocation of resources; reviews and approves or disapproves recommendations made by the financial working group |
| Financial Working Group | Composed of line and staff resource advisors and responsibility center managers. Develops requirements and revisions for the financial plan, reviews all appropriated fund financial plans, and makes recommendations to the board for final approval, including unfunded requirement prioritization and fund target adjustments |
The direction of flow is the item: the working group recommends; the board approves.
The budget program operates on a fiscal year basis — 1 October through the following 30 September.
The PPBE Process
The Planning, Programming, Budgeting, and Execution (PPBE) Process is the Department of Defense's resource allocation system, governed by DoDD 7045.14. Its ultimate objective is "to provide the best mix of forces, equipment, manpower, and support attainable within fiscal constraints."
It consists of four interrelated and overlapping phases:
| Phase | What happens |
|---|---|
| Planning | Translates top-down guidance into plans and requirements; defines and examines alternative strategies and analyzes external conditions and trends; provides an objective against which execution success is measured |
| Programming | Matches available resources (fiscal, manpower, and materiel) against validated requirements. Key objective: develop a balanced, capabilities-based Air Force Program Objective Memorandum (POM) and defend it during program and budget review |
| Budgeting | Occurs concurrently with programming. Each Component submits a proposed budget estimate simultaneously with a POM. Provides detailed review of pricing, phasing, and capability to execute on time and within budget |
| Execution | Running the USAF day to day. MAJCOMs and HAF are allocated their share of obligation authority; installations execute to the integrated priority list for centrally managed programs |
Three things happen in preparing the budget estimate submission: (1) budget analysts identify situations where the program has put resources at risk of OSD or congressional reduction; (2) the comptroller applies the latest inflation figures and flying hour and manpower rates; (3) the program is put into OSD budget format with justification documentation prepared.
Execution reality: because the budget being executed in any given year was compiled over a year earlier, some assumptions will have changed, so Congress allows some flexibility within operating budgets to move resources without requiring permission. Program execution is reviewed at budget execution reviews in February, April (concurrent with the internal Air Force mid-year review), and July.
The Future Years Defense Program
The FYDP is a database summarizing forces, resources, and equipment associated with all DoD programs, displaying information in three basic dimensions:
- Organizations affected — military departments and defense agencies
- Appropriations accounts — research, development, test, and evaluation; operation and maintenance
- Major force programs — strategic forces and mobility forces
It is updated twice during the PPBE cycle: upon submission of the POM (usually July/August) and upon submission of the President's budget (early February the following year). It comprises 11 major force programs and over 3,600 active program elements.
Equipment and Property Accountability
The USAF equipment management system provides worldwide visibility of all equipment assets, supporting capitalized asset depreciation reporting, equipment requirements determination based on allowance standards, the budget and buy program, and identification of equipment types and quantities. Allowance standards identify specific items and quantities approved by the functional manager for wartime and peacetime operations.
AFH 1 sets the individual standard: personnel must operate and maintain government systems, equipment, supplies, and real property in the best possible condition and readiness, and in the absolute minimum quantity necessary. Airmen must accurately maintain property records, carefully and economically use and safeguard property, provide adequate security, protection, and storage, and make recommendations for preventing fraud, waste, and abuse — exercising supply discipline.
Property custodians are appointed by an accountable property officer, commander, or chief of staff agency and are directly responsible for the physical custody, inventory, accounting, and reconciliation of items on the account. Critically, a custodian may be held financially liable for the loss, theft, destruction, or damage of any property or resources under his or her control, and must report property losses or irregularities to commanders or accountable officers at the time of discovery.
Installation and civil engineer responsibilities. The installation commander has overall responsibility and accountability for the operation of a USAF installation, assisted by the base civil engineer, who is "charged with providing, operating, maintaining, restoring, and protecting the built and natural infrastructure necessary to support the USAF mission" and serves as the focal point for all construction, sustainment, restoration, and modernization of real property.
Civil Engineer Work Requests
Work requests are identified to the customer service unit by the facility manager using the AF Form 332, Base Civil Engineer Work Request, or designated information technology systems. The customer service unit reviews all incoming requests for validity, verifies scope, and coordinates with fire, safety, and environmental agencies. If approved, work is executed in-house by the operations flight based on priority, or as a contract managed by the engineering flight.
| Category | Definition | AFH 1's example |
|---|---|---|
| Direct scheduled work | Does not need detailed planning; sent directly to the required shop | Fixing a leaky faucet |
| Planned work | Typically complex; requires detailed planning, scheduling of multiple shops, and lead time for material acquisition | Relocating a doorway and associated exit signs to accommodate a new layout |
| Emergency work | Corrects an issue posing an immediate threat to mission, life, safety, or health; requested and accomplished by the quickest means possible, including verbal or phone communication | — |
Fraud, Waste, and Abuse
AFH 1 states that the key element of the program is to prevent the loss of resources, with detection and prosecution serving as deterrents. The Secretary of the Air Force, Inspector General, provides policy guidance and establishes and evaluates Air Force Complaints; the IG at every level establishes and directs these programs.
| Term | Definition |
|---|---|
| Fraud | Any intentional deception designed to unlawfully deprive the USAF of something of value, or to secure a benefit, privilege, allowance, or consideration to which the individual is not entitled. Also any theft or diversion of resources for personal or commercial gain |
| Waste | The extravagant, careless, or needless expenditure of USAF funds or consumption of USAF property resulting from deficient practices, systems controls, or decisions. Includes improper practices not involving prosecutable fraud. Wartime and emergency operations, legitimate stockpiles, and wartime reserves are not waste |
| Abuse | The intentionally wrongful or improper use of USAF resources — for example, misuse of rank, position, or authority causing loss or misuse of tools, vehicles, computers, or office equipment |
The discriminator is intent and mechanism: fraud requires intentional deception; abuse requires intentional wrongful use without deception; waste can be careless or needless without intent at all.
Reporting. Personnel have a duty to promptly report FWA to a supervisor or commander, an IG or other inspector, or through an established grievance channel — or to the Air Force Audit Agency, AFOSI, security forces, or other proper authorities. Complaints may be submitted by memorandum, in person, or by hotline, and may be submitted anonymously. Members should try resolving issues at the lowest possible level using command channels first, and remain subject to punitive or adverse administrative action for knowingly making false statements.
Complainant privacy. The IG safeguards the personal identity and complaints of individuals seeking assistance. AFH 1 is careful here: this does not mean communications to an IG are privileged or confidential — it means disclosure is strictly limited to an official need-to-know basis, when required by law or regulation, when necessary to take adverse action against a subject, or with SAF/IG approval.
Whistleblower rights. Whistleblower witnesses have additional rights, and "third-party" complainants are not entitled to a response regarding alleged wrongs not directly affecting them unless authorized via a FOIA or Privacy Act release.
Financial Liability Investigations
On discovery of loss, damage, destruction, or theft of government-owned property (real or personal) of any value, the immediate supervisor within the chain of command shall conduct an informal inquiry to determine if a formal investigation is warranted.
An investigation shall be conducted for:
- All government-owned equipment with an initial acquisition cost of $5,000 or greater
- All sensitive, classified, or leased (capital lease) property, regardless of initial acquisition cost
- Any real property
Investigations may also be conducted when circumstances warrant — for example, when small losses occur frequently enough to suggest a pattern of wrongdoing.
The DD Form 200, Financial Liability Investigation of Property Loss, is the required documentation, used to document the facts and circumstances of the loss, damage, destruction, or theft. The reference is DoDR 7000.14, Volume 12, Chapter 7.
A work center loses a piece of government equipment with an initial acquisition cost of $6,200. What does AFH 1 require?
Which definition matches AFH 1's description of waste?
Which body reviews and approves or disapproves recommendations about the base financial plan, and which body develops those recommendations?