Association of Military Banks of America Financial Readiness Through Education! Mr. Dean Hunstad Assistant Secretary of the Navy (Financial Management and Comptroller) Office of Financial Operations Boulder, Colorado September 13, 2005

1
Association of Military Banks of America
Financial Readiness Through Education! Mr.
Dean HunstadAssistant Secretary of the Navy
(Financial Management and Comptroller)Office of
Financial OperationsBoulder, ColoradoSeptember
13, 2005
2
Agenda

• The Navy Financial Community Transformation
• Personnel changes
• BRAC
• ASN (FMC) Strategic Plan
• Human Capital
• Business Practice
• Customer Communications
• DON Financial Improvement Plan
• Navy Cash
• Benchmarking of Financial Services
• Predatory Lending
• Financial Education/Personal Financial
  Management
• - Financial Readiness and Saves Programs
• - Savings Deposit Program

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Personnel Changes
Position Current
Deputy Secretary of Defense Mr. Gordon England
Secretary of the Navy Mr. Donald Winter (Nominated 17 Aug 05)
Deputy Secretary of the Navy Mr. Dionel M. Aviles
Assistant Secretary of the Navy (Financial Management and Comptroller) Mr. Richard Greco Jr.
Principle Deputy Assistant Secretary of the Navy Financial Management and Comptroller Ms. Ashley Godwin
Assistant Secretary of the Navy Financial Management and Comptroller Office of Financial Operation Mr. Mark E. Easton
DFAS Navy Client Executive Mr. David McDermott
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Major Closures Installations Recommended for
Closure with Plant Replacement Value Exceeding
100M (33 Total)

• Navy (9)
• Naval Support Activity Corona, CA
• Naval Weapons Station Seal Beach
• Concord Detachment, CA
• Submarine Base New London, CT
• Naval Air Station Atlanta, GA
• Naval Support Activity New Orleans, LA
• Naval Shipyard Portsmouth, VA
• Naval Station Pascagoula, MS
• Naval Air Station Willow Grove, PA
• Naval Station Ingleside, TX

• Army (14)

• Air Force (10)

Complete information on BRAC can be obtained at
http//www.defenselink.mil/brac/
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Major Realignments Installations Losing 400 or
more Net Total Military and Civilian Personnel
(29 Total)

• Navy (11)
• MCLB Barstow, CA
• Naval Base Ventura City, CA
• Naval Base Coronado, CA
• Naval Medical Center San Diego, CA
• Naval District Washington, DC
• NAS Pensacola, FL
• NS Great Lakes, IL
• NSA Crane, IN
• NAS Brunswick, ME
• NAS Corpus Christi, TX
• Naval Medical Center Portsmouth, VA

• Army (5)

• Air Force (10)

• Defense Agencies (3)
• NCR, DC
• DFAS Cleveland, OH
• DFAS Arlington, VA

Complete information on BRAC can be obtained at
http//www.defenselink.mil/brac/
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Major Gains Installations Gaining 400 or more
Net Total Military and Civilian Personnel (49
Total)

• Navy (14)
• NAWS China Lake, CA
• NS San Diego, CA
• NAS Jacksonville, FL
• NS Mayport, FL
• SUBBASE Kingsbay, GA
• NAS New Orleans, LA
• NS Newport, RI
• NSA Mid-South, TN
• Arlington Hall, VA
• NS Norfolk, VA
• NSA Norfolk, VA
• NSY Norfolk, VA
• MCLB Quantico, VA
• NS Bremerton, WA

• Army (18)

• Air Force (14)

• Defense Agencies (3)
• DFAS Indianapolis, IN
• NMC Bethesda, MD
• DSC Columbus, OH

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Base Realignment and Closure Timeline
September 8, 2005 Commissions Recommendation Sep
tember 23, 2005 Presidents Approval or
Disapproval of Commission Recommendations Oct
ober 20, 2005 Commissions Revised
Recommendations November 7, 2005 Presidents
Approval or Disapproval of Revised
Recommendations April 15, 2006 Commission
Terminates
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The ASN (FMC) Strategic Plan Major Initiatives
of the Navy Financial Management Community
Human Capital

• Training and Career Development
• Provide regular and accessible career
  development opportunities
• Increase the number of financial managers with
  professional certification
• Recruitment
• Support and enhance current and potential
  programs
• - Entry-Level Training Program
• - President Management Fellows Program
• - Business Fellow Program
• Performance and Incentive Management
• The new National Security Personnel System
  (NSPS) will
• - Motivate the staff and increase productivity
• - Hold employee accountable for the achievement
  of Departmental objectives
• - Provide personnel greater control and
  ownership over their career
• advancement

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The ASN (FMC) Strategic Plan Major Initiatives
of the Navy Financial Management Community
Business Practices

• Business Transformation
• Business Enterprise Architecture
• Navy Enterprise Resource Planning
• Functional Area Management
• DON Financial Improvement Plan
• Comptroller Service
• Develop a standardized financial process
  throughout the Department
• Program Performance
• Distribute performance metrics throughout the
  organization
• Private Sector Technology Innovation
• Identify potentially significant new
  technologies from commercial sources
• Portfolio Analysis
• Develop quantitative measures to assess the
  quality of the Departments
• portfolio of system acquisition

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The ASN (FMC) Strategic Plan Major Initiatives
of the Navy Financial Management Community
Customer Communications

• Web Expansion
• Expand the web-based customer communication
  operation
• Mr. Grecos new web site http//www.finance.hq.nav
  y.mil/fmc/
• Communication and Outreach
• Communicate proactively to our core
  constituencies such as the U.S.
• Congress and the American Public

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The purpose of the DON Financial Improvement Plan
(FIP) and responsibilities of commands

• Primary objective
• Achieve an unqualified (Clean) audit opinion
• Guide system improvement
• Responsibilities of commands
• Document current business processes, systems,
  and internal controls
• Gather evidentiary matter to demonstrate
  effectiveness of controls
• Develop performance work statement and submit it
  to FMO
• for the contractor support.
• Take ownership of financial information and
  processes.
• Implement any corrective actions to address
  material weaknesses

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The DON Financial Improvement Plan uses
commercial partners to achieve the goal of clean
financial statements

• Recently entered into 5 year contract to
  implement DON FIP
• Total value of this contract could reach 175
  million
• Issued to multiple awardees
• Science Applications International Corp.
• IBM Business Consulting
• Bearing Point Consulting
• Deloitte Consulting LLP

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The Navy Cash business drivers and requirements

• Eliminate cash on ship
• Ensure users have access to their funds 24/7
• Reduce workload on ship
• Ability to operate fully off-line from landing
  network
• Ability to operate on all classes of ships with
  a disbursing office
• Support split pay
• No fees to card holders

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Currently, Navy cash is being implemented
throughout the Fleet

• 61 ships active thru 8/16/05
• 35 ships targeted for installation in FY 05
• 30-35 ships are estimated to go live each year
  through roll-out
• Estimated completion by FY08

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Navy Cash Direct Settlement pilot is on track

• Treasury Department and Department of Navy remain
  committed as long as business drivers are met
• Phase I completed (unload funds to hometown
  financial institution)
• Phase II (load/unload funds to hometown financial
  institution)
• DSI development based upon NACHA interface
  requirements
• Pilot participants include
• Armed Forces Bank and Navy Federal Credit Union

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The Department of the Navy benchmarking financial
institution products and services

• Mr. Greco has requested that I evaluate the
  products, services and fees in
• the Norfolk region.
• Is the DON obtaining the required products and
  services at reasonable fees?
• Savings/Checking accounts
• Loans
• CDs
• Leases
• Mortgages
• Financial Investing/Serves
• Financial Education
• Fees
• Why is there limited response to solicitation
  requests?
• Initial results indicated that the DON is
  obtaining

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The Department of the Navy benchmarking what has
been and could be done to combat predatory
lending

• Today, Ms. Blair is hosting a initial meeting to
  discuss what what has been done
• or could be done to combat predatory lending with
  our military
• Senior management are very interested in what you
  can do to assist in this effort
• What products and services does your bank offer
  to combat predatory lending?
• Please send your suggestions to
  dean.hunstad_at_navy.mil

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The Department of Defense implements Financial
Readiness and Saves Programs to improve initial
readiness

• DoD Financial Readiness benefits
• - Free Build Wealth Not Debt brochure
• - Free information on savings accounts
• - A free annual subscription to American Saver,
  published four times a year
• - Free advice over the phone or by email from
  financial planners
• Website
• WWW.MILITARYHOMEFRONT.DOD.MIL
• Other Military Service Resources
• Command Financial Specialists
• Personal Financial Managers
• Legal Services
• Service Relief/Aid Societies

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The Department of the Navy implements Financial
Readiness and Saves Programs to improve initial
readiness

• Navy Program Manager David DuBois
• - Coordinate ongoing efforts with local fleet
  and family support centers
• - Program information distributed during
  financial education seminars
• and workshops
• - Enrollment opportunities on website at
  www.ffsp.navy.mil under PFM
• Navy has highest TSP enrollment within DoD all
  considered savers
• 1,534,898 enrollees (33 Navy force)
• USMC Program Manager Gordon Genovese
• - Coordinate efforts with local Marine Corps
  Community services,community
• support centers
• - Establish strategic partnerships (i. e.
  single Marine program) to reinvigorate
• marking and outreach
• Marine Corps wide effort targeted in FY06

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The DoD Savings Deposit Program can increase the
deposits held at your Bank

• Established in August 1990 during Persian Gulf
  Conflict
• Eligibility
• Members of the Armed Forces deployed in a combat
  zone or in direct
• support of a combat zone as determined by the
  Secretary of Defense
• Maximum deposit of 10,000 (by
  allotment/cash/check)
• Restrictions
• - 5.00 minimum deposit/5.00 increments
• - Cannot deposit more than unallotted current
  pay and allowances during
• any pay period
• - Last date to deposit is the day of departure
  from assignment
• Interest accrues at a 10 annually, compounded
  quarterly
• - Interest accrues up to 90 days following return