 Resource Management. Date published 1 April 2017. Inside this chapter, financial management, financial key terms, execution plan, purpose of the execution plan, essential elements, gathering information, budget execution review, financial management processes, funding allocation, budget process, anti-deficiency act, fundamental purpose, common budgetary challenges, manpower management, organization structure, program allocation and control, requirements, determination, impact of resource management, senior NCO, mission. Master Sergeant Davis is the superintendent of the vehicle maintenance flight at Joint Base Carver Pike. Recently, the base underwent a reorganization resulting in the acquisition of a U-2 spy plane mission. The U-2 provides intelligence, surveillance and reconnaissance in direct support of national objectives. The Air Force mandates that chase cars assist the U-2 with takeoffs and landings. Somehow, Master Sergeant Davis needs to secure funding for a brand new Chevrolet Camaro SS, equipped with light bars and communication equipment, which will increase visibility of the vehicle operator and assist the pilot in maneuvering the craft. Master Sergeant Davis did not include this requirement in his spend plan for projected expenses and is not sure what steps to initiate to obtain the necessary funding. What factors should he consider when exploring various options? It's never been more important for borrowers to arm themselves with knowledge and build sound financial management skills, Robert Manning. Upon completion of this chapter, you should be able to terminal cognitive objective, comprehend resource management concepts and or their impact on senior NCO and mission effectiveness. Terminal cognitive samples of behavior. One, identify resource management concepts and or their impact on senior NCO and mission effectiveness. Two, illustrate resource management concepts and or their impact on senior NCO and mission effectiveness. Three, predict the impact of resource management concepts on senior NCO and mission effectiveness. Affective objective. Value resource management and its impact on senior NCO and mission effectiveness. Affective samples of behavior. One, enthusiastically dedicate yourself to read and listen to all material about resource management and its impact on senior NCO and mission effectiveness. Two, voluntarily complete all coursework related to resource management and its impact on senior NCO and mission effectiveness. Three, openly accept resource management and its impact on senior NCO and mission effectiveness. Four, willingly develop a preference for resource management and its impact on senior NCO and mission effectiveness. Five, strive toward a commitment to apply resource management and its impact on senior NCO and mission effectiveness. Have you ever been assigned to an organization that always seem to experience a shortage in resources? Has your organization ever needed additional funds to support a new project or require additional manning to satisfy the mission requirements? What does your organization's manning posture presently resemble? Is your organization positioned to support national security objectives? As a senior enlisted leader, you are expected to prepare, address and advocate for resources while staying focused on completing the mission in an effective and efficient manner. Your proficiency in resource management is critical to mission effectiveness and weighs heavily on your ability to employ successful strategies that bring forth resolve for budgetary concerns and manpower challenges. In this stringent fiscal environment, demands for resources are prevalent in many organizations. As a senior NCO, you are responsible for managing the nation's most valuable resources while finding innovative ways to fulfill mission objectives. You are challenged to maximize resources, sustain productivity and establish efficiency without sacrificing quality or security toward national interests. In this chapter, you will cover resource management by examining finance and manpower concepts. One way for you to enhance your effectiveness and ensure your work center is able to accomplish the mission is to understand the concepts presented throughout this chapter. This chapter will begin with a review of some basic financial terms. After that, you will review the execution plan. Emphasis is placed on gathering information that is instrumental in justifying the plan. Also, your participation in a spanned plan exercise and the examination of the significance of a budget review will give you a holistic look at the value of executing an effective execution plan. Next, you will be provided an explanation of financial management processes and how funds are allocated according to a budgetary cycle. Then the anti-deficiency section will explain the governing law established to ensure adherence when developing an execution plan. Manpower management will be introduced next. A general examination of the four manpower core competencies and the authorization change request are introduced in this section. This chapter wraps up by covering the impact of resource management on senior NCOs and mission effectiveness. You will cover a lot of information in this chapter. Some of the information may apply directly to you in your current position. For others, the concepts presented may be new. In either case, you need to understand that resource management is an important function within any organization. An organization cannot build a good team of working professionals without proper resource management. Oftentimes, individuals tend to think of resources as only manpower. In addition to manpower, this chapter will identify the importance of financial management within the organization. Financial management. To effectively manage the resources entrusted to you, you first need to have an understanding of the associated key terms. Understanding the key terms does two things. First, it shows that you are knowledgeable about financial management when discussing matters with others. Second, you can avoid misunderstandings by ensuring a single meaning of the key terms. The information presented in this section will aid you as you continue to progress through the chapter. Now that you know what we will be covering in this section and how it will benefit you, let's begin by gaining clarity on the meaning of key financial terms. Key financial terms. There are many definitions associated with how the Air Force manages resources. As a joint warfighter and senior leader, your understanding of basic financial terminology is important because the terms will be presented to you throughout this chapter and on a daily basis as you fulfill the resource management function. Allocation. The system of dividing expenses and income among the various branches and departments. Apportionment. A distribution by the Office of Management and Budget, or OMB, of amounts available for obligation in appropriation or fund accounts of the executive branch. This distribution makes amounts available on the basis of time periods, usually quarterly, programs, activities, projects, objects, or combinations thereof. The apportionment system is intended to achieve an effective and orderly use of funds. The amounts so apportioned limit the obligations that may be incurred. Continuing Resolution Authority, or CRA. Budget authority resulting from legislation introduced as a joint resolution and enacted by the Congress to provide authority for federal agencies to continue operations until a specified date or until the regular appropriations are enacted. The Continuing Resolution usually specifies a maximum rate at which obligations may be incurred based on the rate of the prior year, the President's budget request, or an appropriation bill passed by either or both Houses of the Congress. Obligations under Continuing Resolution Authority are usually controlled by apportionment. There is no standard pertaining to CRA language. Each CRA enacted must be carefully read for the specific provisions pertaining to the particular fiscal year being addressed. Cost Center, CC. The organization that gathers and distributes cost data. An example of a cost center is your financial analysis or public affairs office. Cost Center Managers, CCM. They are the base or point of initial action in the building block process of operating budget developments. CCMs develop resource requirements and narrative justifications that determine the validity of operating budgets and operational and maintenance, O and M, execution plans. Element of Expense Investment Codes, EEIC. Financial Focused. These represent the final breakout in the budget structure. The number varies with the major command, MAGCOM, depending on the number of sub elements required for local management. This part of the budget structure is quite similar to the Office of Management and Budget, OMB, Object Classification. Air Force EEICs and DOD elements of expense are in the Financial Management Data Dictionary. Financial Management Board, FMB. The Senior Advisory Committee chaired by the commander or deputy commander and includes group commander level members and the comp-troller at installations, directors and special staffs at commands. The FMB approves budgets, financial plans, and revisions. The FMB also distributes the annual funding, establishes priorities, and ensures consistency with programs and missions. FMB approval represents the final approved installation or command budget submitted to higher command and the final distribution of funds received from higher command. The chairperson calls FMB meetings. The FMB retains minutes for review by higher authority. Financial Working Group, FWG. Reviews program and cost factors compares actual with prior year costs, reviews justifications, periodically evaluates performance against estimates, and submits a recommended financial plan to the FMB. The comp-troller or the financial analysis officer chairs the Financial Working Group, FWG, and designates appropriate resource advisers and other members to comprise the FWG. Fiscal Year, FY. October 1st through September 30th each year. Fiscal Year, FY. October 1st through September 30th each year. Each fiscal year is divided into quarters with specific actions within the budget process that take place within each quarter. Obligation. A commitment of allocated funds to a specific contract, purchase, equipment item, etc. Resource Advisors. The resource advisors monitor and assist in preparing estimated requirements for resources. They participate in the development of obligation and expense targets, and they monitor the use of resources in day to day operations. Resource advisors are designated as the key player in ensuring the budget is being executed. There are resource advisors at both group and squadron levels. Responsibility Center Manager, RCM. The RCM normally heads an organization that plans, organizes, directs, and coordinates activities of subordinate organizations and functions. RCMs are the principal level that manages financial resources. The RCM directs work by subordinate functions, usually CCs, that, in turn, utilize resources to perform that work. Now that the key terms have been defined, you should be better postured for success. The terms will aid you as you continue to learn more about financial management. You are now on your way to sharpening your skills in effectively managing the finances within your organization and becoming a more effective senior NCO. Execution Plan. The amount of planning and effort you apply to securing funds for your organization will affect how effective you are at accomplishing your assigned mission. People, equipment, facilities, and funds are all considered important resources. Are you diligent in tracking the expenditures of your organization? Are you an advocate for securing routine allocations that support Homeland Operational Readiness efforts? How do you know if you have funds available to continue supporting the mission? Given the public's demand for prudent financial management, assuring transparent accountability of taxpayer dollars becomes necessary. The Execution Plan, EP, is the product used by the Air Force to balance available funding, risks, and requirements while delivering goods and services to customers within the operation and maintenance appropriation. In short, it ensures funds provided in the President's budget are distributed in a manner that ensures Air Force program objectives are accomplished. At the lowest practical level, the EP is used by all levels of an organization to identify and prioritize key requirements for current year spending and for developing next year's budget. This main point will provide insight on the financial execution plan. You will begin by taking an in-depth view of its purpose. This examination will broaden your scope on the significance of creating a financial plan and adhering to the process to ensure organizational objectives are met. Next, you will study the essential elements of the Execution Plan. How to gather necessary information enabling you to finalize the plan will be explained. You will also have an opportunity to complete a spend plan exercise. Finally, to wrap up this main point, you'll cover the budget execution review. A senior NCO has the responsibility to ensure money, facilities, and other resources are utilized in an effective and efficient manner and in the best interest of the Air Force. AFI 36-2618. Purpose of the Execution Plan. The Execution Plan is a paper or electronic product used to identify mission critical funded requirements, unfunded requirements, and outlines of the itemization of your organization's current funds. Simply put, it is a tool to help you manage the finances of an organization. The purpose of the Execution Plan is to protect, justify, and secure funds necessary for mission accomplishment. As stated earlier, the Execution Plan is used to ensure consistency, reasonable distribution, and alignment with the president's budget to Air Force program objectives. As a senior NCO, responsible for the management of resources, you must confront budgetary concerns, determine assets, allocate resources, and apply sound financial management principles to ensure mission effectiveness. Budgeting supports effective, efficient, and appropriate use of funds. This practice supports a culture of accountability and ensures you are able to provide the rationale for requests and purchases. Despite mission differences, most organization's EPs include the same basic requirements. These include government purchase card items, equipment purchase, repair and replacement, personnel training, and development and temporary duty costs. Most organizations also have information technology costs such as the purchase, repair and replacement of computers, printers, copiers, monitors, and service contracts that keep the equipment functioning. Other common areas include civilian pay, building maintenance and repair, and custodial and landscaping service contracts. To learn more about how the EP is used to manage organizational spending, select the link below or scan the QR code to access AFI 65-601-V2 budget management for operations. It outlines how to prepare and implement the execution plan. Your dedication to financial management aids in reinforcing integrity by demonstrating the appropriate use of resources. Developing and following the EP as outlined will lead to increased mission success. Although there is no Air Force standard for what an EP must look like, there are essential elements that must be included. Essential elements. Understanding the essential elements of an execution plan can lessen the challenges faced when attempting to secure necessary funding. The EP includes the following sections. Mission critical requirements, justification, unfunded requirements, and a spend plan. These elements should be considerate to mission objectives, equipment changes, conversions and upgrades or any other factors that may affect mission requirements. Let's take a closer look at those essential areas mentioned by first examining mission critical requirements. Mission critical requirements. Mission critical requirements account for fiscal year budgetary initiatives and proposals that include operation and maintenance and military personnel appropriation requirements. As a senior leader you have an important role in securing funding necessary to effectively accomplish the mission. In essence you are working with the commander and other managers to achieve the financial goals for the upcoming fiscal year while analyzing revising and monitoring the current budget cycle. Employing this level of attentiveness analyzes risks, prevents hindrances, and serves as a deterrent to misuse of organizational resources. In this example of one category, TDY expenses is identified as a mission critical requirement. As you see the projected cost allocated to meet this organizational demand is $240,000. Another area shown is the element of expense investment code, EEIC. According to AFI 65-601 v2, EEICs represent the final breakout in the budget structure. The number varies throughout the major commands depending on the number of sub-elements required for local management. This part of the budget structure is quite similar to the office of management and budget, OMB, object classification. Structuring your mission critical requirements in a precise manner increases the probability that the resources essential for mission accomplishment within your organization will be clearly identified and can be easily analyzed and prioritized. Formulating a thorough list of your requirements displays your commitment to efficiency and generates thoughtful consideration of the fiscal year requirements throughout the organization. This step becomes vital when justifying the funds needed to support and sustain the mission. Mission critical justification, appropriate justification strengthens your position when advocating for mission funding. Delineating mission requirements reflects forethought of current resources, organizational objectives, present and unexpected national interests, and strategic goals. It showcases integrity, service before self, and excellence in all we do when your justification is sound and focused on organizational priorities that lead to increased national security. Take a look at the justification provided for TDY expenses in the box below. Section two, justification, TDY expenses, EEC 409, FTD slash certification training, $240,000. Mission critical, field detachment and certification training is a mandatory requirement in order for members to remain qualified. This justification lists mission essential requirements. The narrative is succinct yet explanatory. It conveys the importance of funding TDY expenses vital to ensuring members remain proficient and technically qualified. The cost of the requirement is included to ensure accurate forecast projections, not to exceed fiscal year expenditures. Funds needed in excess of approved fiscal year expenditures are considered unfunded requirements. Unfunded requirements. This section lists mission essential requirements that exceed projective funding with a cost and narrative justification for each requirement. Review the example below. Section three, unfunded requirements. TDY expenses. EEC 409, certification training $75,000. Mission critical. Current training budget of $240,000 does not cover TDY expenses for 25 people who are required to attend mandatory one-time certification training course prior to arrival of new aircraft. If not funded 25 of our people will not be qualified to work on the new aircraft. This would decrease our ability to fix aircraft in a timely manner and shift a significant workload to those who are qualified. The narrative for the unfunded requirements is brief yet thorough. Since unfunded requirements may infringe on other areas of the budget, your justification should address how non-approval of a requirement would hinder, prevent, or detract from the organizational and national security objectives. The narrative should describe the advantages of approval and the impact on mission effectiveness. It should also include how the overall mission will be negatively impacted if the requirement is not funded. As a joint warfighter, your ability to articulate the requirements for the organization is critical. To aid you in this process, prepare a spend plan to assist you in communicating your needs. A spend plan enables you to create a financial spreadsheet that depicts sound and balanced decision-making toward resource expenditures. The next section will explain the spend plan in more detail. Spend plan. The spend plan illustrates how projected funds will be spent over a 12-month fiscal year period. The example below shows monthly allocations and quarterly financial targets. This breakdown enables you to visualize how the distribution of finances may encourage efficient management of resources. By examining the financial breakdown for your organization in relation to mission objectives, you can predict how your organization will be impacted monetarily by unexpected resource requirements. This information also provides you an opportunity to employ cost-saving strategies that may result in excess funds for the remaining quarters. AFI 65-601v2 explains how remaining funds from savings, program slippages, or other circumstances can be allocated for higher priority mission requirements. Now that you have gained insight on the elements that must be integrated and explained in an execution plan, let's proceed by identifying the information needed to populate the areas mentioned that are essential to this process. A senior NCO's primary purpose is mission accomplishment, AFI 36-2618. Gathering information. As a senior enlisted leader, it is vital to understand the aspects of gathering information and formulating an execution plan. Reviewing execution plans from previous years can certainly be advantageous in developing an EP. Your examination can reveal recurring organization requirements, budget distributions, spending trends, unpredictable expenditures, and financial resolve toward resources for mission effectiveness. Although previous plans offer many advantages, you should not totally rely on the execution plans from prior years because DOD guidance may have been established that altered mission requirements and affect how you now are required to accomplish your assigned mission. You should continuously review copies of professional references that govern the use of funds, example AFI 65-602, Budget Management for Operations, and JTFR Volume 1, Joint Federal Travel Regulations. Communication with members of the organization is critical to gaining input and support. Don't forget the airmen. Consider initiating dialogue with the airmen to see what their needs are. You may gain surprising input that can strengthen the efficiency of the work center. Mission changes, section leader input, and senior leadership direction needs to be considered and incorporated to reflect real-time national security objectives. The suggestions mentioned are not intended to be completed in sequential order. You can alter them by first communicating with the airmen and then reviewing previous year's execution plans. The main objective is that by thoroughly gathering information you can increase the likelihood of productivity and efficiency towards supporting the mission and national security objectives. Once the appropriate information has been gathered, you should focus your attention to create a spend plan. To familiarize yourself with this document, complete the spend plan exercise below. The spend plan is an important part of your organization's execution plan. It is a key document that enables you to analyze and prioritize timelines and milestones for the future year's spending. Appropriate use of funds does not stop with the creation of the spend plan. To ensure you stay on track it must be reviewed continuously throughout the year. Budget Execution Review, BER. Have you ever submitted a funding request for approval but were unable to secure the funds? Was the decision not to fund your request based on erroneous information in the submitted package? Priorities among other submissions within the organization? Timeliness of the submission? Missing essential elements? Or simply because of poor justifications? Although we spend weeks developing a perfectly sound execution plan, more often than not the mission can change or unforeseen expenses pop up and throw your budget completely off track. Or maybe you know about an expense but your current year's budget isn't enough to cover the new expense. Fortunately, the BER exists to help you through both situations. This section will highlight the purpose of the budget execution review and define the roles that the requester and the designee have in allocating and justifying funds. Proficient senior NCOs determines, analyzes, and prioritizes timelines, milestones, and resources required for mission. AFMAN 36-2647 Purpose of the budget execution review The budget execution review is a process that improves the effective management of funds and allows for a thorough review and examination of requirements at the installation level and above. The review cycle conducted twice during the fiscal year is intended to identify, validate, prioritize, and request additional resources for unfunded requirements by reallocating funds that were not previously expended. It is a formal process that allows commanders to internally reprogram funds, identify, and justify high priority unfunded requirements to prioritize, rack, and stack for the next higher level funding. Most of you have been involved in this process in some way or another. Some of your organizations received fallout money, and you are able to purchase the supplies and equipment needed to accomplish the mission more effectively or efficiently. On the other hand, some of you may have watched with envy while other sections, squadrons, groups, even wings reap the benefits of fallout money. Securing unfunded requests is not extremely difficult for those that are willing to put forth the effort and those that abide by the rules. To help increase your understanding of the budget execution review, let's start by exploring unfunded requirements justification. Rules for justifying unfunded requirements. The more effort you exert in formulating sound rationale for your unfunded requirements, the better chance you will have of receiving mission essential funding. There are three simple rules to follow when submitting justification for unfunded requirements in your execution plan. The first rule is to justify the mission objectives in narrative format. The justification is important in securing funds because funds are limited. The most effective submissions explain the mission, describe the requirement in great detail, and emphasize the degree of adverse impact if not funded. The second rule requires clearly detailed justification of the requirement. The details should identify all associated costs, the funding recipient, the requirement quantity, and when the funding is due. The third rule stresses the inclusion of quantitative or numerical information. Numerical data is critical in explaining the urgency and priority for organizational requirements. Numbers assist in determining impact, effectiveness, and the criticality of meeting mission objectives. These three rules aid in developing a strong justification narrative. Each rule has a purpose, and failure to apply one may lead to a failure in securing funding. Turn your attention to the unfunded requirement narrative below. Here you will see how these simple rules are applied. Section three, unfunded requirements, TDY expenses. EEIC 409, certification training, $75,000 mission critical. Current training budget of $240,000 does not cover TDY expenses for 25 people who are required to attend mandatory one-time certification training course prior to the arrival of new aircraft. If not funded, 25 of our people will not be qualified to work on the new aircraft. This would decrease our ability to fix aircraft in a timely manner and shift a significant workload to those who are qualified. One, the first rule suggests emphasizing the mission objectives. The objective in this example is to obtain an additional $75,000 needed to cover TDY expenses for 25 people required to attend certification training. It further alludes to a decrease of qualified individuals and an increase in workload for those already qualified. Two, the second rule suggests that the purchase details be provided. The justification clearly identifies that the current training budget of $240,000 does not include the additional $75,000 needed for certification training for 25 members. It does, however, fail to identify who the payment will be made to or when the payment will be due. The inclusion of this information may strengthen your unfunded requirement justification and increases chances for approval. Three, the third rule suggests the inclusion of quantitative details. Again, the justification above identifies the need for an additional $75,000 for certification training for 25 members. It states that the current $240,000 is not sufficient to meet the workload. To increase the effectiveness of the justification, the author could further elaborate the estimated percentage of the mission that may or may not be accomplished if the additional funding is not secured. Completing the unfunded justification as outlined should allow you to produce an effective narrative section to submit to your organization's resource advisor. Once submitted, your resource advisor will compile all the unfunded requirements, then wait until the next budget execution review cycle to submit them to the financial working group. Your understanding of the budget execution review process and the rules for justifying unfunded requirements will increase your chances of securing funding needed to effectively accomplish the mission. As stated earlier, the execution plan drives your organization's allocations and spending, and it encourages financial accountability at all levels. This main point identified the execution plan and how it is used to allocate funds for current and the future fiscal year. You reviewed the essential elements that an efficient execution plan should include, for example, unfunded requirements spend plan. Next, you discussed the significance of reviewing professional sources, soliciting senior leadership directives, and input from internal and external agencies. Emphasis was placed on refraining from relying totally on mirroring execution plans submitted in the past. Then, you completed a spend plan exercise. This exercise gave you an opportunity to evaluate Master Sergeant Johnson's role in drafting a spend plan. After that, you examined the budget execution review. You should now have a better understanding of how and why the budget execution review is beneficial in securing finances for unfunded requirements and the importance of spending allocated funds on time so they are not reallocated to another organization. This main point ended with an observation of the three rules necessary for developing strong justification for unfunded requirements. This section on the execution plan covered a wide range of material. However, none of this is possible without first obtaining finances for you to manage. Financial management processes The function of management is to plan, organize, staff, lead, and control. Every one of these functions is influenced to a great degree by how much money is available. Managing organizational finances is a process that challenges you to focus your attention on the details to think strategically about acquiring maintaining and appropriately relinquishing resources if necessary. Every year the Air Force risks losing billions of future years defense program dollars due to unexpended balances and historical under execution. As a senior NCO, your success in managing your organization's financial resources center on your understanding of the financial management processes. More important, you can prepare members within your organization to support your efforts in meeting financial allocation requirements and resource submission timelines by positioning yourself to develop fiscally responsible leaders. You can become a catalyst toward efficiency in managing government resources to your subordinates and other associated individuals, thus increasing the efficiency of the organization. In this main point, you will learn about the funding allocation process and how funds are distributed among different organizational levels, ultimately reaching your organization's cost center managers, CCM. You will also learn more about the budget process and the budget cycle. Your success in managing your organization's funds hinge on your understanding of the financial management processes. Funding allocation The funding allocation process begins with Congress authorizing funds for military spending each year. The Air Force receives its share of funds and divides the allocated amount among MAGCOMs, field operating agencies, FOA, and direct reporting units, DRU. The disbursement process continues downward from command authority to subordinate levels of command. The distribution process described does not cease until it reaches the CCM level. This helps explain why the typical cost center budget is minuscule compared to the overall Air Force budget. For fiscal year 2017, the Air Force Blue Total Obligation Authority is $121 million. For fiscal year 2017, the Air Force Blue Total Obligation Authority is $120 million. Categories that the $120 million covers but are not limited to include operation and maintenance, military personnel, military construction, military family housing, procurement, research development test and evaluation, and base realignment and closure. These areas are significant to you and those members that you influence, and it demonstrates strategic insight toward mission requirements. Please scan the QR code below to learn more about how the funds are allocated. Knowing the categories relating to organizational objectives, national security interests, and mission effectiveness strengthens your rationale for requests and encourages others to support your cost savings recommendations. The budget process is an integral part of fulfilling the DOD objectives and directly supports the national security initiatives of our nation. Budget process. Ideally, the approval of funds by Congress takes place on the initial date denoting the beginning of the fiscal year. When Congress hasn't passed the New Fiscal Years Appropriation Act by the start of the new fiscal year, the Deputy Assistant Secretary for Budget will provide interim guidance, usually based on congressional passage of the Continuing Resolution Authority, CRA, which allows DOD activities to spend money pending passage of the DOD Appropriations Act. Your understanding of how funds are allocated among the total Air Force is necessary. Making decisions concerning organizational resources can be challenging and requires you to analyze different budgetary factors at critical times. The fiscal year 2017 Air Force budget request is built on a long-term strategic framework and is designed to preserve combatant commander requirements in support of the defense strategy. At blue budget appropriation, BBA, funding levels, the fiscal year 2017 budget request seeks to balance capability, capacity, and readiness while investing in modernization and recapitalization. At BBA, the Air Force is able to restore some capacity in the short term to meet the demands of today's conflicts. Funds readiness at executable levels retains critical core capabilities, preserves the KC-46A tanker, long-range strike bomber, LRSB, and F-35A joint strike fighter programs, and most importantly, develops and takes care of airmen. It is equally important for you to fully grasp operations and maintenance, O&M, appropriations, which includes mobilization, recruiting, training, administration, and service-wide activities, civilian salaries, operating and maintaining an installation, environmental restoration, and many of the other costs associated with day-to-day Air Force operations. O&M appropriations cover cost for the sustainment of your organization's daily operations. As you can see, the budget process impacts many different aspects of the organization. The budget process is an endless cycle of planning, programming, revising, adjusting, and spending. Budget cycle The budget cycle lasts an entire fiscal year, which begins on 1 October and ends on 30 September of the following year. Each fiscal year is divided into quarters and specific actions take place within each quarter as outlined in the budget cycle. Another way to view the budget cycle is through timelines and milestones. The budget cycle offers concrete dates for determining, analyzing, and prioritizing budgeting actions and decisions. Along the same lines, each budget cycle includes several milestones, such as quarterly spending targets, EP submissions, and end-of-year closeout. Timely submissions of the execution plan can provide adequate time for review and coordination at different levels. If you do not submit your budget execution review at the appropriate time, you may have to wait for an extensive period of time to initiate an unfunded financial request. Remaining cognizant of the budget execution review timelines allows you to secure funding for equipment and resources necessary to meet mission requirements. Your role in the financial management process is a continued cycle of monitoring the budget. The spend plan is the tool used to examine quarterly spending and the end of the fiscal year financial activity. Remember, as mentioned earlier in the chapter, that projecting appropriate allocations of funds may enable you to proactively redirect funds and contribute to the holistic management of funds at a command and DOD levels. In this main point, you covered the financial management processes by examining the allocation of funds and the budget process, the budget cycle and important timelines and milestones were explored to highlight the importance of remaining attentive of the budget execution review process and submission dates which, if adhered to, should increase your chances of securing the funding necessary for mission accomplishment. However, history has demonstrated time and again that even the best budget process does not protect senior NCOs who are unfamiliar with the Anti-Deficiency Act from Severe Administrative or Punitive Actions. Command and base personnel need to know specific actions for administering the Financial Management Program, AFI 65-601-V2. Anti-Deficiency Act As a senior enlisted member, you lead an influence by example. Your subordinates, peers, external and internal counterparts may solicit instruction, guidance, or partnership to address governmental resource concerns or purchases. You play a significant role in upholding the DOD standard of resource management. American citizens, the taxpayers, rely on and expect you to be a good steward of the resources allocated to you. In this main point, you'll start by covering the fundamental purpose of the Anti-Deficiency Act, ADA. Then, you'll review the budget challenges that you could face managing your organization's finances. As you progress, focus your attention on some of the obstacles that others have experienced and formulate strategies based on the content to exert a favorable outcome and increase your chances of success in managing resources. Let's begin with the fundamental purpose of the ADA. Fundamental Purpose The ADA is derived from the U.S. Code, Title 31, Money and Finance, and it is one of the major laws through which Congress exercises control over government spending. The ADA arose during the 19th century when frustration increased among congressional members with the failure of executive branch agencies to stay within the budgets allocated to them. The original version, enacted in 1870, made it unlawful for any department of the government to expend in any one fiscal year, any sum in excess of appropriations made by Congress for that fiscal year. The fiscal principles underlying the ADA are really quite simple. Government officials may not make payments or commit the United States to make payments at some future time for goods or services unless there is enough appropriation to cover the cost in full. Under USC Title 31, specifically, military and civilian employees are prohibited from making or authorizing expenditure from or creating or authorizing an obligation under any appropriation or fund in excess of the amount available in the appropriation or fund unless authorized by law. In other words, you should refrain from obligating your unit to expend more funds than authorized. You also should not misallocate funds on unauthorized items or purchase items, contracts, resources, supplies, and other resources or similar services. For example, using operation and maintenance funds to purchase unit coins or t-shirts to give to family members during the annual organization picnic is a violation of Title 31 of the U.S. Code, Section 1341A, Subsection A. Involving the government in any obligation to pay money before funds have been appropriated for that purpose unless otherwise allowed by law. This simply means to refrain from obligating funds prior to securing the funds. Although you may anticipate the funds, resources and services can only be purchased when the financial process has been approved and the funds are readily available. Accepting voluntary services for the United States or employing personal services not authorized by law except in cases of emergency involving the safety of human life or the protection of property. Making obligations or expenditures in excess of an apportionment or reapportionment or in excess of the amount permitted by agency regulations. To help curb inappropriate spending, the Act requires agencies violating its rules to report to the President and Congress all relevant facts and a statement of actions taken. The Act further requires agencies to transmit a copy of each report to the Comptroller General on the same date the report is transmitted to the President and Congress. Military and civilian employees who violate the ADA are subject to appropriate administrative and punitive measures including, when circumstances warrant, suspension from duty without pay or removal from office. In addition, those who knowingly and willfully violate any of the provisions cited above shall be fined not more than $5,000 imprisoned for not more than two years or both. Other measures include admonishments, reprimands, demotions and adverse performance reports. The ADA was enacted to provide guidance and prevent overspending, however, there are common problem areas that cause senior NCOs knowingly or unknowingly to violate the ADA. Common budgetary challenges Unfortunately, our history is full of military members who received administrative and disciplinary actions despite their good intentions. One example involves Air War College personnel who used O&M funds to purchase light refreshments in connection with multiple regional studies events hosted by AWC. The individuals spent $21,000 over a five-year period and were found responsible for violating U.S. Code Title 31, Section 1345, expense of meetings which states an appropriation may not be used for travel, transportation and substance expenses for a meeting. One individual received a letter of counseling and the other retired in lieu of disciplinary action. The above example is just one of many, but it should prompt you to ask yourself how many events have I attended where the unit used O&M funds to purchase refreshments? What follows are examples of the most common areas where senior NCOs get into trouble with ADA violations. Business cards professionally made cards are typically limited to recruiters and investigators. Others may buy card stock and use office printing equipment to make cards. Coins O&M funds may be used for purchases that support an award for excellence in accomplishment or competition. Buying unit-designated coins as mementos to give to family members of deployed personnel would not be proper. T-shirts The purchase of T-shirts for sports competitions is authorized as long as such competitions are of a continuing nature and are limited to shirts presented to winners. Buying shirts for all unit personnel in attendance is not authorized. Out of cycle use it is prohibited to obligate unallocated funds to purchase items, equipment, supplies, services, and contracts to be used in the next fiscal year. Good intent is not a defense against ADA violations and government funds may only be utilized when the request is supported by the proper appropriation, not otherwise prohibited by law and not otherwise provided for through another appropriation. Applying lessons learned from the history of past ADA violations and understanding the fundamental purpose of the law should prevent you from intentionally or unintentionally violating the ADA. Ensuring you are following the law while managing your finances will keep you and your organization on the right side of the law. Please scan the QR code in the middle of the page to learn more about the anti-deficiency act. In this main point you learned about the ADA. You covered the fundamental purpose of law which is to control government spending and ensure funds are spent correctly. Then you learned about the common problem areas where you may find yourself in violation of the ADA whether intentionally or unintentionally. Efficient utilization of finances is an important aspect of resource management. Equally important is the proper management of manpower. Appropriate utilization of manning will have a direct impact on mission accomplishment. Manpower management Have you ever been asked by your commander to provide information to ensure proper manning was available throughout your squadron? If you needed to make changes with regards to manpower how would you go about doing so? Would you know where to look to find out exactly how many personnel are authorized and what are the skill levels of the individuals currently assigned to your organization? If not, view this as an opportunity to get ahead of the learning curve. There are many organizational factors to examine when reviewing modifying or executing the organization's manpower initiatives. As a senior leader you and those you empower will benefit from the information presented in this section. You can use the knowledge acquired to aid you in determining analyzing and prioritizing your units manning by coordinating the changes necessary to keep your organization running and its optimum ability. In this section you will examine three components of manpower management. The first area you will explore is how an organization is structured and its relationship to identifying manpower requirements. The second area that you will examine shows how manpower requirements flow from the DOD level to your unit. The third component will assist you in managing your organization's manpower requirements. Let's begin with the first area organization structure organization structure Air Force organizations are designed to achieve the characteristics outlined in AFPD 38-1 manpower and organization. To fully comprehend organization structure you must first understand that the Air Force organization of structure follows the five management principles listed below. Emphasis on wartime tasks organizations must be structured to accomplish wartime tasks without reorganizing. Functional grouping organizations have these characteristics a clear cut purpose goal and scope one individual in charge parts that form a logical separable activity a close relationship among the parts constituting a complete entity and natural divisions of work that clearly define where responsibility begins and ends. Lean organizational structures unless mission requirements cannot otherwise be met organizations must encourage rapid decision making and flat structures should exist without intermediate levels. Skip echelon structure MAGCOMs sit on top of a skip echelon staffing structure MAGCOMs, WINGS and squadrons possess the full range of staff functions needed to perform required tasks numbered and named Air Forces and AF Groups and flights have minimal to no staff The chain of command and responsibility for mission accomplishment runs through commanders at all levels Problems are solved by staff communication through the functional chain bypassing echelons where the function is not found Standard levels Organizations should be established at the lowest level required to successfully accomplish the primary mission Headquarters U.S. Air Force and the MAGCOMs field operating agencies and direct reporting units work toward meeting Air Force organizational goals The director of the Air Force AF slash A1M is responsible for leading and monitoring progress AF slash A1M is responsible for administrative control of all units in the Air Force It publishes Department of the Air Force DAF slash A1M letters which are the legal authority for a unit and authorize such actions as unit activate redesignate or inactivate units As a senior leader your role is to analyze and determine resources necessary for mission accomplishment Before you can determine your requirements you should ensure your organization is adhering to the management principles listed above When changes are deemed necessary the organizational change request OCR is the instrument used to manage organization manpower changes The instrument is used to activate a new organization inactivate an existing organization redesignate an existing organization or restructure an organization as a whole Office symbol codes OSC identify the organization structure and functional responsibilities within a unit An OCR action may drive a requirement for an OSC to be added or deleted Changes should have a precise overriding purpose that has easily recognizable and defensible organizational and cost benefits AF slash A1M is the approval authority for any variations from the standard structure critical thinking When analyzing your organization structure consider using the universal intellectual standards of clarity accuracy and relevance to help weed out personal bias and get a clear picture of the overall organization Please scan the QR code at the bottom of the page to review AFI 38-101 Air Force Organization The information presented provided an overview of how Air Force organizations should be structured Proper use of allocated manning assures organizations the ability to perform their assigned mission effectively To better determine your manpower requirements it is important that you first understand the process that leads to the assignment of manning positions Program Allocation and Control Program Allocation and Control By definition a manpower requirement is simply the manpower needed to accomplish a job mission or program A manpower requirement can be documented as a funded manpower authorization or an unfunded requirement A manpower authorization is a funded manpower position documented on the unit manpower document UMD The Air Force considers manpower a resource used to support approved programs designed specifically for mission accomplishment Manpower is not a program which should be manipulated and used apart from the programs it's intended to support Manpower is a limited resource which is sized to reflect the minimum essential level required to accomplish the designated workload The attribute Program Allocation and Control centers on UMDs and funded and unfunded requirements The UMD report reflects the total force manpower position information for funded authorizations unfunded requirements and future years defense program positions by work and unit center The purpose of the UMD is to provide you and your commander a consolidated document which details the organization structure number skills grade security requirements of manpower authorizations the position number for each authorization and other pertinent data needed in order for you to ensure the effective management of your manpower resources The unit personnel management roster UPMR is the document used to put faces to spaces This document has the names of your units currently assigned personnel in accordance with the positions listed on your unit's UMD Any change to the UMD requires a formal request but before you submit a request you need to determine if you are requesting a funded or unfunded manpower position Funded authorizations refer to positions that are both authorized and funded Funded manpower positions are allocated by category officer enlisted and civilian Given the fact requirements have always exceeded available funding commanders first determine requirements and then allocate funding to the highest priority Unfunded requirements are an approved manpower requirement on the UMD however it is not funded Since it is not funded no individual can be assigned to fill that position The Air Force uses three types of manpower to perform required work Military personnel active duty Air Force reserve individual mobilization augmentees or IMAs and National Guard in-service civilian employees and contracted services Military positions required to perform Air Force missions are identified by grade and skill using the manpower requirements determination process The Air Force considers enlisted skill level rather than grade the primary indicator with regard to experience and or effectiveness required to perform a task The Air Force documents all funded and unfunded manpower requirements in the manpower programming and execution system M P E S Statutory ceilings constrain the number of field grade officers colonels, lieutenant colonels and majors and senior enlisted non-commission officers chief master sergeants and senior master sergeants Colonel and chief master sergeant review boards are established to evaluate, validate and recommend those positions to be funded at the grade of colonel or chief master sergeant Parameters for the remaining officer and enlisted grades are established through the grades allocation process which applies to lieutenant through lieutenant colonel and airman first class through senior master sergeant Now that you have covered program allocation and control and how it ties into manpower management you can see how important your role as a senior leader is in managing your manpower When looking at the efficient use of our most valuable resource our people you must be able to show how each currently funded position in all new and emerging missing changes support the chief of staff of the Air Force top priorities You have a significant functional role in helping determine the requirements necessary to meet those priorities Requirements determination The Air Force Management Engineering Program, MEP provides manpower standards to help commanders determine manpower requirements The MEP provides the framework for developing Air Force manpower standards and analysis tools to identify minimum and essential manpower required to accomplish approved missions AF slash A1M has approval authority for manpower standards applicable to the active component whether applicable to multiple commands a single command or a single location and NGB slash A1M has approval authority for all manpower standards pertaining to Air National Guard units A manpower standard defines work center requirements and quantifies manpower needed to perform key processes for specific workload volumes They are developed to standardize work center processes within functional areas and identify where differences exist Manpower standards are developed by the Air Force Manpower Agency's manpower requirements squadron who works with Air Force functional area managers FAM and or career field managers CFM manpower standards capture workload productivity efficiency and adequate resources in relation to organizational objectives An analysis of the budget process is critical as you evaluate manpower requirement standards and implement strategies to meet the overall mission Although mission objectives may place a demand on manpower budgetary outcomes dictate the release of funding to meet personnel requirements To increase the probability of securing manpower ensure your justification supports the chief of staff the Air Force priorities validated by Air Force manpower standards This approval process ensures your manpower requests are warranted and in accordance with the mission objective Senior NCOs Functional Roles The Senior NCOs Functional Roles in assisting the development of manpower standards is twofold Please review the roles of the senior industry leaders as explained below Functional role number one Whenever manpower conducts work performance measurements it is critical for senior NCOs to make sure the person conducting the study observes an average performer Allowing manpower to observe the sharpest airmen will more than likely skew the results of the study because the sharp airmen will complete the work in less time than the average airmen Just the opposite is true for a below average performer Functional role number two The second functional role concerns manpower career field workshops Since these workshops attempt to determine the career field's future needs Senior NCOs should fully support these important events by sending their sharpest staff sergeants and tech sergeants The best choices are those who perform the mission daily are considered the go-to person and who possess the ability to think strategically Once a determination has been made that your manpower requires changes you will use an Authorization Change Request ACR to propose adjustments to a unit manpower document, UMD Some examples of how you would properly utilize an ACR include making changes to Air Force specialty codes, AFSC adjustments in grade or skill levels and changes to Personnel Reliability Program, PRP codes You would not submit an ACR when the problem is created by a temporary shortage of assigned personnel or lack of worker skills nor would you submit one for self-imposed or peaking workloads Squadron Commanders have ACR approval authority only when all authorizations impacted are subordinate to the commander Group Commanders approve ACRs that cross squadron lines of command as long as all affected elements are subordinate to the group commander Wing or Vice Commanders approve ACRs that cross group lines of command or when ACRs impact the wing staff Though most organizations have their own format ACRs should include as a minimum List of the UMD attributes that identify the affected position List of the UMD attributes that represent the desired change typically bolded Justification for each proposed change What, why, and when Note Before composing or submitting an ACR Speak with organizational leadership about known or proposed changes to the organization Mission People Etc If they are in agreement check with your local manpower office They can often save you time and prevent frustration by providing guidance explaining the process and or addressing appropriate processes and procedures for each unique situation This office is typically located under the force support squadron as part of a manpower and personnel flight In addition it's a good idea to check with your MAGCOM functional manager Be sure to review the current UMD and any previously submitted ACRs This section began by explaining how an organization is structured and it showed how you can make required changes to either activate restructure or deactivate an organization when deemed necessary You also learned how manpower authorizations are allocated from the DOD level to your unit Using this information will help you when determining manpower work center requirements and working with your local manpower office to make the appropriate changes By understanding how organizational structure program allocation and control and requirements determination work together you can utilize them to evaluate your organization's mission effectiveness Senior NCOs must draw upon their knowledge and experience to provide constructive input to best meet the challenges facing their organizations AFI 36-2618 Impact of resource management As a senior NCO the amount of planning and effort you apply to allocating, securing and maintaining organizational funds will directly affect the vision and mission of the organization Your direct involvement as a catalyst for mission effectiveness in supporting national security objectives encompasses manpower equipment facilities and funds These areas are directly impacted by your management of resources As you bring closure to this chapter reflect back over the information previously presented As you examine the impact resource management may have on senior NCO and mission effectiveness consider your personal situation and how you can use this information to increase your effectiveness Senior NCO effectiveness When you apply financial management concepts appropriately chances are mission essential resources will be funded in a timely manner According to AFI 36-2618 the enlisted force structure paragraph 2.1.3 Senior NCOs have a great deal of experience and leadership ability that can be used to leverage resources and personnel against a variety of mission requirements Senior NCOs participate in decision-making processes on a variety of technical, operational, and organizational issues Over time senior NCOs gain experience in determining the types of resources needed for their organization to run smoothly Applying foresight when completing your execution plan will provide a visual roadmap assisting you and others as funds are spent throughout the fiscal year Think about it You can't assure the continuation of processes if you can't ensure the appropriated funding is available Managing organizations and resources is an institutional competency Air Force Manual 36-2647 reads Senior NCOs determine, analyze, and prioritize timelines, milestones, and resources required for mission It goes without saying resources are necessary in order to effectively manage an organization One of your many roles is to assure that requests for resources are submitted during the prescribed timelines Adhering to the budget cycle ensures you are meeting established procedures in attempts of securing funding for your organization With the current budget constraints senior enlisted leaders should adhere to the budget cycle and ensure the mission essential requirements are purchased Do not rely solely on the organization's resource advisor to advise you of upcoming important deadlines AFI 36-2618 The Enlisted Force Structure states A senior NCO's primary purpose is mission accomplishment They must lead and manage teams while maintaining the highest level of readiness to ensure mission success Leading and managing teams becomes easier when you have the appropriate number of individuals assigned with the appropriate skill levels needed to get the job done effectively and efficiently By taking the time to ensure that your units UPMR and UMD are accurate ensures there are faces to fill in the spaces fulfilling organizational manpower requirements As senior NCO's you must include financial management and manpower management concepts into your discussions and decision making You have an obligation to ensure each resource requested is for mission essential purposes and you are charged to effectively manage the personnel and funds entrusted to you Doing so positively impacts your ability to be successful leading and managing the resources entrusted to you Mission effectiveness The impact of resource stewardship cannot be overstated in today's Air Force Fiscal Environment Applying the resource management concepts presented throughout this chapter will positively impact mission effectiveness According to AFI 36-2618 the enlisted force structure paragraph 5.1.12 states A senior NCO has the responsibility to ensure money facilities and other resources are utilized in an effective and efficient manner and in the best interest of the Air Force Plan resource utilization replenishment and budget allocation to ensure personnel are provided the equipment and resources needed to effectively accomplish the mission Adherence to the budget cycle projected monthly and quarterly spend limits and continuously reviewing your spend plan will ensure you are spending obligated funds on time which will lead to effective mission accomplishment Not spending funds on nice to have items and complying with the ADA will ensure your unit is utilizing funds and resources to fulfill mission needs appropriately United States Air Force core values are instrumental in managing resources Maintaining integrity at all times is expected i.e accurate annotations of documents formulating messages that are true representations of current situations revealing data regardless of the outcome Failing to maintain honesty can be detrimental to mission effectiveness Intentionally withholding information when requesting additional resources may hinder the approval process thus negatively impacting the mission Properly preparing your unit's EP ensuring appropriate utilization of individuals on the UPMR and submitting ACRs only when deemed necessary all display integrity and have a direct impact on acquiring and maintaining resources essential for mission accomplishment Summary As a senior enlisted joint warfighter you should include financial management and manpower management concepts into your discussions and decision making This chapter began by providing you a broad overview of resource management The next section covered financial management and listed many key terms associated with how the Air Force manages finances Next the chapter shifted to the execution plan which explained the purpose for the execution plan The essential elements normally found in the document and the steps for gathering information You were provided an opportunity to complete a span plan exercise and were presented the purpose of the budget execution review Then you explored the different financial management processes First Funding allocation illustrated how money transitions from Congress to your CCMs Second The budget process discussed the CRA and the budget cycle Main.4 covered the Anti-Deficiency Act The fundamental purpose behind the law and common problem areas the areas that senior NCOs should avoid to prevent possible personal or organizational infractions After that manpower management was introduced Program allocation and control was covered first and provided an explanation of the unit manning document The unit manning document is a computer product which details a unit's organization and manpower composition You also covered funded and unfunded authorizations in relation to the effective management of personnel The next section entailed requirements determinations which address the purpose of the ACR with regards to manpower management Finally the chapter wrapped up by giving you an understanding of how financial management impacts you as the senior NCO and the mission Key Terms Allocation Page 3 Apportionment Page 3 Authorization Change Request Page 17 Continuing Resolution Authority Page 3 Cost Center Page 3 Element of Expense Investment Codes Page 3 Financial Management Board Page 4 Financial Working Group Page 4 Fiscal Year Page 4 Obligation Page 4 Resource Advisors Page 4 Responsibility Center Manager Page 4 Unit Manpower Document Page 16 Unit Personnel Management Roster Page 16