BUMED Resource Management / Comptroller (M8) Budget Division (M83) Resource Allocation Process 23 Sep 09

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BUMEDResource Management / Comptroller
(M8)Budget Division (M83)Resource Allocation
Process23 Sep 09

• Teresa Kruszka
• Director, Budget
• 202-762-3588
• teresa.kruszka_at_med.navy.mil

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Overview
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Topics of Discussion

• Overview
• Resource Allocation Process
• Appropriations
• BUMED Budget Considerations
• Allocation
• FY10 Execution

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Purpose of a Budget

• How a Region will receive and provide for their
  Mission
• Identifies and plans for finite resources
• Programmatic / Mission requirements
• Manpower / Total Force
• Physical Assets
• and Funding for all
• Identifies workload goals
• Basis of Headquarters budget requests
• Includes Requirements / Performance Based metrics

BUMED does not have a money tree.
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Initial Formulation toFinal Presidents Budget

• Program Objective Memorandum (POM)
• Budget Estimate Submission (BES) / Presidents
  Budget Review (PBR)
• Program Budget Decision (PBD)
• Program Decision Memorandum (PDM)
• Presidents Budget
• Congressional Adjustments

Long-term steps from requirements to resourcing.
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Resource Allocation Process
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RA Phases
Source DAU
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RA Phases - Overlap
Source DAU
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Resource Allocation (RA)Phases

• The purpose of the Planning, Programming,
  Budgeting, and Execution (PPBE) process is to
  allocate resources within the Department of
  Defense.  The PPBE is a cyclic process that
  provides the mechanisms for decision making and
  provides the opportunity to reexamine prior
  decisions in light of changes in the environment
  (e.g., evolving threat, changing economic
  conditions, etc.). The ultimate objective of the
  PPBE is to provide the Combatant Commanders
  (COCOMs) with the best mix of forces, equipment,
  and support attainable within established fiscal
  constraints. - DAU
• Phase 1 Planning, Programming, Budgeting, and
  Execution
• 2-year cycle (even numbered years, aka on year)
• Phase 2 Enactment
• Congressional review of Presidents Budget
• Phase 3 Apportionment
• OMB makes funding available after the President
  signs the Authorization Appropriations
  Legislation
• Phase 4 Execution
• The spending of appropriated funds

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PERS Planning Management
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Appropriations
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BUMEDAppropriations

• Direct Appropriations
• RDTE,DHP and RDTE,N
• 2-year obligation authority, however should be
  treated as 1-year (bona fide need)
• OM,DHP
• 1-year obligation appropriation HA has Carryover
  Authority of 1 to 2nd year
• OM,N
• 1-year obligation appropriation
• OP,DHP and OP,N
• 3-year obligation appropriation, however should
  be treated as 1-year (bona fide need)
• RP,N
• 1-year obligation appropriation
• Indirect Appropriations
• MILCON
• 5-year obligation appropriation
• BRAC
• No-Year appropriation does not expire
• After each appropriations obligational period
  (Expired), they all have an additional 5-years
  for expenditure (Cancelled)

Know your appropriations obligation/expenditure
timeline
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DoN Civilian FTEs by Appn
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BUMEDs FY10 Budget
37.542M (1.16) 9.888M (.3) 3.053B
(94) 29.049M (.89) 66.701M (2.05) 2.122M
(.07) 49,436M (1.52) 3.247B
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BUMEDs FY10Resource Allocation
Manpower requirements are the largest resource
grab.
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BUMEDs FYDP E/S
Based upon PR-11 data. Contractor personnel are
highly variable in any give FY.
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BUMEDs FYDPBudget vs Costs
Based upon PR-11 data. Contractor personnel are
highly variable in any give FY.
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OM

• OM,DHP
• BAG-1 In-House/Direct Care
• BAG-2 Private Sector Care
• BAG-3 Consolidated Health
• BAG-4 IM/IT
• BAG-5 Management Activities
• BAG-6 Education Training
• BAG-7 Base Ops Communications
• OM,N
• Fleet Hospital Program (Programmed)
• Counter Drug Program (Execution)
• Drug Labs (Execution)
• HRPP (Programmed)
• Homeland Security (Programmed)

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BUMED Budget Considerations
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BudgetingConsiderations

• Near term (current PB submit)
• Cautiously refine requirements and costs
• Long term (POM)
• Refine and identify new requirements and costs
• Rephasing of funding, based on programmatic
  changes
• Possible methodologies
• Requirements based (preferred, most recommended)
• Historical (starting point)
• Actuals (for comparison)
• Technical estimates (Unknown unknowns)

Budgeting does not include a management reserve!
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Allocation
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Allocation Process

• BUMED issues an Allocation to the Expense
  Limitation Holders (ELH), such as the Regions
• Based on Execution Controls
• ELHs issue lower level Allocations to the Expense
  Operating Budget (EOB) Holders, such as
  MTFs/Activities
• Not based on Actuals from previous year! Based
  on documented and validated Requirements

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BUMED FY10Execution Monitoring / Analysis
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Anti-DeficiencyViolations

• 31 USC 1341(a)(1)(A) Anti-Deficiency Act
• In excess of amount available in appropriation or
  allocation
• 31 USC 1341(a)(1)(B) Anti-Deficiency Act
• Government enters into a contract or obligation,
  in advance of appropriation, unless otherwise
  authorized
• 31 USC 1301(a) Anti-Deficiency Act
• Appropriations applied for intended purposes
  only, unless otherwise authorized
• 31 USC 1517 Anti-Deficiency Act
• In excess of Apportionment or Allocation

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Execution Monitoringand Tracking

• Weekly Execution Reports
• Monthly Execution Reports
• Mid-Year 50
• 31 Jul 80
• Based on
• Obligation Expenditure Benchmarks
• Regions FY10 Plans
• Monitor by Region, but review and analyze at
  MTF/Activity level, also
• Monthly Variance Reports
• Justifications
• Corrective Plan of Actions

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OM,DHP Flexibilitiesand Limitations

• Program Execution amounts are estimates
• BAG-1
• Flexibility to execute within BAG-1
• Can move funds into, but not out of
  (Congressional restriction)
• BAG-2
• Can not move funds (Congressional restriction)
• BAGs 3-7
• Flexibility for Regions to execute between BAGs
  3-7, not Headquarters shall issue funds in BAG
  they were received
• Fiscal Guidance will identify specifics for
  Execution
• Restrictions on BAG execution

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Execution Controls

• Based on
• Region-identified FY prioritized requirements, by
  appropriation, by BAG
• Identified Execution Total Obligation Authority
  (TOA), provided by HA and FMB
• Excluding taxes and withholds
• Includes authorized Escalation Factors,
  calculated in last approved PB
• Varies (Pharmacy, CIVPERS, Fuel, etc.)
• M8 provide costing for validated M1 Manpower
  requirements

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End of Year /Sweep-Up Funds

• BUMED M8 does not hold funding at Headquarters
  for UFRs, Mid-Year, or End of Year
• May appear that way, because
• Congress provides Supplemental and other Adds
  during Execution
• Regions (MTFs/Activities) may under-execute
  during Execution, resulting in reallocation of
  dollars
• Regions/M-Codes must develop an executable
  budget, within their issued funding controls, at
  any given time - - including a Contingency Plan,
  anticipating possible adjustments during
  Execution
• Not applicable to hiring personnel, unless
  funding profile identified and trade-off analysis
  has been completed

End-of-Year funds for hiring must consider long
term tails and trade-offs
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FY10 Changes

• Process and method of FY Planning has changed
• Percentage of Overseas Contingency Operations
  (OCO) and Traumatic Brain Injury / Psychological
  Health (TBI/PH) funding rolled into Program of
  Record budget profile
• HA revisiting basis of PPS - TBD
• Regions being held accountable for all levels of
  Planning and Execution within their cog
• Monitoring of Execution
• Allocation of funds, based on actual execution
  during year

Validated manpower requirement ? Resourced
manpower requirement
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Questions ???