AMBA Spring Board of Directors Meeting

1
AMBASpring Board of Directors Meeting

• Mr. Ron Buzz Davis
• Director, DoD Banking Credit Union Program
• Defense Finance and Accounting Service
• April 2006

2
Overview

• DFAS Mission
• DFAS at a Glance Magnitude of Annual Operations
• DFAS Organization
• DoD Banking and Credit Union Office
• Military Banking Credit Union Program Overview
• Current and Future OMBP Operating Locations
• Italy Military Banking Facility Sites
• Overseas Closures
• DoD Overseas Transformation
• Financial Support for Deployed Forces
• DFAS Oversight/Compliancy Role
• Operating Agreements Leases
• One Bank One Credit Union
• Solicitation (Vol 5, Chap 34, para 340503)
• myPay

3
DFAS Mission

• Provide responsive, professional finance and
  accounting services for the people who defend
  America

Total Work Force
4
DFAS at a Glance - Magnitude of Annual Operations

• Process 104 million pay transactions to 5.9
  million military, civilians, retirees, and
  annuitants
• Make 6.9 million travel payments
• Pay 12.6 million commercial invoices
• Process 127.3 million general ledger postings
• Manage military and health benefits funds (234
  billion)
• Make an average of 455 billion in disbursements
  to pay recipients
• Manage 13.5 billion in foreign military sales
  (reimbursed by foreign governments)
• Account for 282 active DoD appropriations

Its about the customer
5
DFAS Organization
Chief of Staff Chief Information
Officer Corporate Resources Corporate
Communications Legislative Liaison Internal
Review Acquisition Executive Office of General
Counsel Client Executives
Director- Zack Gaddy Acting Deputy Director Lee
Krushinski
Deputy for Strategic Business Management Lee
Krushinski
Deputy for Operations Pat Shine
Director Cleveland Site
Director Columbus Site
Director Denver Site
Director Indianapolis Site
Director Kansas City Site
Director Standards Compliance
Rome
Limestone
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DoD Banking and Credit Union Office
Program Management Office for the administration
of all DoD domestic and overseas banking and
credit union programs. Responsible for ensuring
availability of banking and credit union
financial services on military installations
worldwide to authorized military personnel, their
dependents, and DoD civilian employees. Provide
day-to-day oversight and management of banking
and credit union operations and develop
operational controls and procedures governing
bank and credit union operations.
7
Military Banking Credit Union Program Overview
Department of Defense OUSD(C) Provide policy
guidance
Contractor Bank - Operates DoD Overseas
Banking Program - Provides stateside
equivalent banking services/products to
over 250,000 authorized customers - 95
offices in 10 foreign countries - Over
300 no fee ATMs in network - 1,200 employees
worldwide - Supports DoD funding mission
(US dollar and foreign currency)
DoD Domestic and Overseas Banking and Credit
Union Office Columbus, Ohio
Military Services Fund their portion of the
program with appropriated funds and provide
requirements
Manage DoD Overseas Banking Program
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Current and Future OMBP Operating Locations
Honduras ATM Only (1)
Germany 45 MBFs 135 ATMs
South Korea 14 MBFs 65 ATMs
Okinawa District Office
Japan 9 MBFs 39 ATMs
Diego Garcia 1 MBF 2 ATMs
Kwajalein Atoll Republic Marshall
Islands 02/01/05
Iceland 1 MBF 2 ATMs
Kwajalein 1 MBF 3 ATMs
Cuba 1 MBF 5 ATMs
United Kingdom 10 MBFs 24 ATMs
The Netherlands 1 MBF 2 ATMs
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Italy Military Banking Facility Sites

• Army
• Camp Darby, Livorno
• Caserma Ederle, Vicenza
• Navy
• NSA Capodichino, Naples
• NSA Gaeta, Naples
• Sigonella NAS I, Sicily
• Sigonella NAS II, Sicily
• NSA LaMaddalena, Sardinia
• Air Force
• Aviano AB Area I, Aviano
• Aviano AB Area II, Aviano

Italy Overseas Military Banking Program Locations
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OMBP Overseas Closures

• Jun 2006
• West Ruislip, United Kingdom
• Aug 2006
• Camp Hialeah, Korea
• Sep 2006
• Harvey Barracks, Germany
• Larson Barracks, Germany
• Giebelstadt Air Field, Germany
• NAS Keflavik, Iceland

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DoD Overseas Transformation

• European Closures/Realignments
• Reduce 8 of 13 major operating bases across
  Europe
• Decrease 236 to 88 installations/casernes
• Reduce troop strength from 62,000 to 24,000
• Return 11 bases to German Government
• Return 1st Infantry Division (Inactivate/Convert/R
  eassign)
• Return 1st Armored Division
• Korean Closures
• Closed 7 bases during 2005
• Return 18 bases to Republic of Korea - 2004-2007
• New Areas Bulgaria, Spain, Singapore, Portugal,
  Poland

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DoD Overseas Transformation
Network of Forward Facilities

• Main Operating Bases (MOB)
• Permanent bases with resident forces/robust
  infrastructure
• Support training, security, and cooperation
• Deployment/employment of military forces for
  operations
• Full spectrum of financial services
• Forward Operating Sites (FOS)
• Focal point for combined training (forward
  deployed locations)
• Scalable facilities for operational forces
  rotational use
• Prepositioned equipment and modest permanent
  presence
• Limited financial services
• Cooperative Security Locations (CSL)
• Generally little or no permanent U.S. personnel
  assigned
• Provides for operational flexibility as needed
• Some prepositioned equipment
• Deploy forces as needed
• Conduct essential training with partners
• No financial services

13
DoD Overseas Transformation Vision

• Early Identification of Need
• Status of Forces Agreements must permit U.S.
  financial institutions (banks or credit unions).
• Working with command to include provision
  authorization in new country agreements
• Solicitation IAW DoDFMR, Volume 5, Chapter 34,
  geographical franchise awards may be limited to a
  province, state, or region of a country

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Financial Support for Deployed Forces

• On-line banking
• On-line bill pay
• Free deployment checking account with check card
  (joint accountholders only)
• Toll-free telephone access number directly to a
  customer service representative (CSR)no IVR
• Provide some free services for deployed forces
  such as wire transfers
• Have bilingual CSRs (English and Spanish)
• Participate in predeployment preparedness
  briefings
• Include deployment readiness information on Web
  page

15
DFAS Oversight/Compliancy Role

• Monitor compliancy with DoDD 1000.11, Financial
  Institutions on DoD Installations (OUSD(C)
  policy proponent)
• and
• DoDFMR 7000.14, Volume 5, Chapter 34, Procedures
  for Banks and Credit Unions on DoD Installations
  (DFAS procedures proponent)

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Bank Operating Agreements and Leases

• Ensure your bank has an operating agreement in
  accordance with the DoDFMR, subparagraph 340409A.
  
• Ensure leases and real estate documents for
  installation space have been completed - bank
  facility and ATM locations.
• Ensure approved expansion of services (DoDFMR
  340409B) are documented as an amendment to the
  operating agreement.
• Up-to-date operating agreements and leases aid
  the military services and DFAS in dispute
  resolution.
• Protect your rights keep all agreements
  up-to-date!

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One Bank One Credit Union Rule

• Reference DoD Directive 1000.11, para 4.1.1
• No more than one bank and one credit union shall
  be permitted to operate on a DoD installation
• Responsibility changed from OUSD(C) to military
  services BLOs in Nov 19, 2003, to take final
  action on all requests for bank/credit union
  exceptions.
• Authority to grant exception to policy resides
  with the military services
• Authority cannot be redelegated

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Solicitation (Vol 5, Chap 34, para 340503)

• Military Service BLO
• Installation commander determines need
• Conduct solicitation with local BLO
• Solicitation process
• Letter sent to local banks, published in local
  newspaper, notify AMBA
• Can send to Commerce Business Daily/Fed Biz Ops
• Military Service BLO Approval

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Puts the Member in Control

• Puts customers in control of their pay account
  information
• Improves customer service
• Offers convenient, global access
• Allows the member to make changes 24x7
• Decreases the requirement to physically go to a
  finance office or Personnel Administration Center
• Saves DoD money by reducing costs
• Printing hardcopy pay and tax statements
• Inputting transactions
• Answering questions concerning pay
• Leaving training or work to go to a financial
  activity

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Customized PINs
Information as of March 31, 2006
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Military Customized PINs
Information as of March 31, 2006
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DFAS Your Financial Partner _at_ Work