12.2 Resource Management (AFH-1 Section 12D)
Key Takeaways
- The resource management system focuses on outputs and resources used, managers using resources effectively, actual versus planned performance, and financial plans and accounting at each organizational level.
- The Financial Working Group develops requirements and recommendations; the Financial Management Board, established by the senior or host commander, reviews and approves or disapproves them.
- The Planning, Programming, Budgeting, and Execution process is DoD's resource allocation system; its objective is the best mix of forces, equipment, manpower, and support attainable within fiscal constraints.
- Programming produces the Program Objective Memorandum, usually submitted in July/August; execution includes the major command operations and maintenance operation plan and budget execution reviews in February, April, and July.
- The Future Years Defense Program summarizes DoD forces, resources, and equipment in three dimensions and is updated on POM submission and on submission of the President's budget.
12.2 Resource Management (AFH-1 Section 12D)
Quick Answer: Every USAF resource has a value or cost. Planning, Programming, Budgeting, and Execution (PPBE) is DoD's resource allocation system. Programming matches resources to validated requirements and produces the Program Objective Memorandum (POM). Execution is running the Air Force day to day under obligation authority, including the major command operations and maintenance (O&M) operation plan. The budget program runs 1 October through 30 September. The Financial Working Group recommends; the Financial Management Board approves.
Section 12D is B for SSgt and TSgt. Apply who approves the financial plan, what the POM is, and how O&M execution works when last year's assumptions no longer match.
Stewardship and duty positions
"All USAF resources have a value or cost associated with them." The resource management system focuses on outputs and resources used, managers using resources effectively, actual versus planned performance, and financial plans and accounting.
12.27. Base-level managers do not control initial allocation of all resources, but they must steward money, manpower, and equipment. Being an effective steward involves more than legal accountability. Every member must use resources cost-effectively. Commanders and supervisors own efficient and economical use, plus budgeting, allocation, composition, and distribution.
| Position | AFH 1 responsibilities |
|---|---|
| Commanders | Review, validate, and balance the financial plan; inquire about program conditions, review causes, weigh alternatives, and direct action; fund resource-management training |
| Comptrollers | Sound financial management and advice; policies and procedures for accounting, budget, and cost |
| Responsibility center managers | Plan, direct, and coordinate subordinates; identify imbalances, analyze alternatives, balance programs; appoint resource advisors in writing |
| Cost center managers | The cost center is the basic production flight or work center. They regulate work hours, supplies, equipment, and services and shift resources among tasks |
| Resource advisors | Help prepare resource estimates and obligation and expense fund targets; monitor consumption versus the plan; primary point of contact for their responsibility center |
| Body | Who and what |
|---|---|
| Financial Management Board | Established by the senior or host commander. Determines program priorities, ensures effective allocation, and approves or disapproves working-group recommendations so programs stay balanced and valid |
| Financial Working Group | Line and staff resource advisors and responsibility center managers. Develops requirements and revisions, reviews appropriated-fund plans, and recommends unfunded-requirement priorities and fund-target adjustments |
The working group recommends; the board approves.
Operating budget and obligation authority
The operating budget covers costs associated with the operation of all USAF organizations. Higher-headquarters approval gives obligation authority. The budget program operates 1 October through 30 September.
PPBE: planning, POM, O&M execution
The PPBE Process is DoD's resource allocation system under DoDD 7045.14. Its ultimate objective is "to provide the best mix of forces, equipment, manpower, and support attainable within fiscal constraints." Four interrelated and overlapping phases:
| Phase | What AFH 1 says happens |
|---|---|
| Planning | Translates top-down guidance into plans and requirements; examines alternative strategies, external conditions, and long-term implications; provides an objective against which execution success is measured |
| Programming | Addresses planning guidance and establishes initial program costs. The USAF matches available resources against validated requirements. The product submitted with the budget estimate is the POM |
| Budgeting | Occurs concurrently with programming. Each Component submits a proposed budget estimate simultaneously with a POM. Reviews pricing, phasing, and capability to execute on time and within budget for the years in the President's budget |
| Execution | Running the USAF day to day. MAJCOMs and HAF receive obligation authority. Installations execute to the integrated priority list for centrally managed programs. A key part of this phase is the major command operations and maintenance operation plan |
POM: the programming proposal submitted usually in July/August — the first of two FYDP updates. The final packaged position is the POM/budget estimate submission or program budget review. O&M is a named FYDP appropriations account; at execution the major command O&M operation plan runs that money day to day.
In the budget estimate submission, analysts flag resources at risk of OSD or congressional reduction, the comptroller applies latest inflation, flying-hour, and manpower rates, and the program is put into OSD budget format with justification.
Execution reality: the budget being executed was compiled over a year earlier, so some assumptions will have changed. Congress allows some flexibility within operating budgets to move resources without requiring permission, but installations still execute to the integrated priority list for centrally managed programs. Reviews occur in February, April (concurrent with the internal USAF mid-year review), and July. If a planned exercise drops, last year's POM dollars do not vanish: the working group recommends a target adjustment and the board approves unless the program is locked to the integrated priority list.
Future Years Defense Program
The FYDP summarizes forces, resources, and equipment associated with all DoD programs in three dimensions: organizations affected (military departments and defense agencies); appropriations accounts (research, development, test, and evaluation; operation and maintenance); and major force programs (AFH 1 examples: strategic forces and mobility forces). It is updated twice: upon POM submission (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 financial liability (still 12D)
The equipment management system provides worldwide visibility using allowance standards. On loss, damage, destruction, or theft, the immediate supervisor conducts an informal inquiry. The DD Form 200, Financial Liability Investigation of Property Loss, documents the facts (DoDR 7000.14, Volume 12, Chapter 7). Investigations also apply when small losses suggest a pattern of wrongdoing.
What does AFH 1, citing DoDD 7045.14, identify as the ultimate objective of the Planning, Programming, Budgeting, and Execution process?
When is the Future Years Defense Program updated during the PPBE cycle?
Which body reviews and approves or disapproves recommendations about the base financial plan, and which body develops those recommendations?
What does AFH 1 identify as a key part of the execution phase, and when is USAF program execution reviewed?