DEPARTMENT OF THE AIR FORCE Thomas N. Barnes Center for Enlisted Education (AETC) Maxwell-Gunter AFB, AL 36118

Transcription

1 DEPRTMENT OF THE IR FORCE Thomas N. Barnes Center for Enlisted Education (ETC) Maxwell-Gunter FB, L Oct 14 IR FORCE SENIOR NONCOMMISSIONED OFFICER CDEMY STUDENT GUIDE PRT I COVER SHEET LESSON TITLE: LM04, RESOURCE STEWRDSHIP METHOD: DL Content/LE Core Lesson REFERENCES: ir Force Guidance Memorandum (FGM) (2014). irmen Powered by Innovation Program. ir Force Instruction (FI) (2011). ir Force Organization. ir Force Instruction (FI) (2014). Determining Manpower Requirements. ir Force Instruction (FI) (1995). ir Force Management Headquarters and Headquarters Support ctivities. ir Force Instruction (FI) (2008). Commercial ctivities Program. ir Force Instruction (FI) (1999). Programming USF Manpower. ir Force Instruction (FI) (2012). Manpower & uality Readiness and Contingency Management. ir Force Instruction (FI) (2012).Financial Management, Budget Guidance and Procedures, Volume 1. ir Force Instruction (FI) (2012). Financial Management, Budget Management for Operations, Volume 2. ir Force Instruction (FI) (2011). Financial Management, The ir Force Budget Corporate Process, Volume 3. ir Force Manual (FMN) (2014), Institutional Competency Development and Management. ir Force Manual (FMN) (2002). ir Force Management Engineering Program (MEP) Processes, Volume 1. ir Force Manual (FMN) (2003). ir Force Management Engineering Program (MEP)-uantification Tools, Volume 2. ir Force Manual (FMN) (1995). ir Force Management Engineering Program-Logistics Composite, Volume 3. LM05SG - 17

2 ir Force Policy Directive (FPD) 65-6 (1998). Financial Management, Budget. ir Force Visual id (FV) (2013). H USF Organization Chart. United States ir Force FY 2013 Budget Overview PRT I DL COURSE GOL: Prepares Senior NCOs to lead the enlisted force in the employment of air, space and cyberspace power in support of our national security objectives. GENERL LERNING OUTCOME: Upon completion of this lesson, students are better prepared to Manage Organizations and Resources as evidenced by their comprehension of, and ability to apply, Resource Stewardship concepts and lesson principles. SUPPORTED COMPETENCIES/DIRECTIVES: The Resource Stewardship lesson supports the following F Institutional Competency / Sub-competency: - Managing Organizations and Resources Resource Stewardship The Resource Stewardship lesson supports the following U Continuum of PME Education Strategic Guidance (CESG) - Core rea: Leadership Studies (Functions of Management) TERMINL COGNITIVE OBECTIVE: Comprehend Resource Stewardship and/or its impact on subordinate, SNCO, unit, and mission effectiveness. TERMINL COGNITIVE SMPLES OF BEHVIOR: 1. Explain Resource Stewardship and/or its impact on subordinate, SNCO, unit, and mission effectiveness. 2. Give examples of Resource Stewardship and/or its impact on subordinate, SNCO, unit, and mission effectiveness. 3. Predict the impact of Resource Stewardship on subordinate, SNCO, unit, and mission effectiveness. FFECTIVE OBECTIVE: Value Resource Stewardship LM04SG - 2

3 PRT IB LESSON OUTLINE: CONTENT INTRODUCTION MP 1. Resource Stewardship MP 2. Financial Management 102. Resource llocation Process B. Budget Process C. Budget Execution Review (BER) D. Financial Execution Plan E. nti-deficiency ct F. Terms and Definitions MP 3. Manpower 102. Four Manpower Competencies 1. Organization Structure 2. Program llocation and Control 3. Requirements Determination B. Program Management CONCLUSION: Summary PRT II STUDENT REDING Since the first class graduated in 1973, students, faculty, staff, and many enlisted leaders have asked why the ir Force Senior NCO cademy course does not include lessons on finance and manpower. fter all, from the time we sew on E-7 until we retire, most of us deal with both subjects. The answer is, until recently, finance and manpower were considered training issues and, as such, relegated to installation-specific just-in-time training programs. However, that all changed when the ir Force established its Institutional Competencies (IC). Included in the ICs is the competency Managing Organizations and Resources which is supported by the sub-competencies of Resource Stewardship, Change Management, and Continuous Improvement. Since we cover the latter two sub-competencies elsewhere, this LM04SG - 3

4 lesson focuses on financial and manpower management concepts associated with resource stewardship. We ll begin with a brief look at resource stewardship and then explore the appropriation of funds, the budget cycle, and the Financial Execution Plan. fter that, we ll examine manpower competencies, the Unit Manpower Document (UMD) and give special attention to the uthorization Change Request (CR). With our roadmap in place, let s begin our journey with a brief look at resource stewardship. MP 1: Resource Stewardship In simple terms, resource stewardship is the prudent use of allocated funds and the efficient and effective use of time as well as assigned facilities, space, equipment, and people. SNCOs must be aware of timelines and milestones associated with resource stewardship and be able to determine, analyze, and prioritize them well enough to not just effectively accomplish their mission in the near-term, but ensure long-term success as well. Ensuring success is not easy given the number of variables that affect resource planning. First, you must know what your mission is today as well as what it will be several months and years down the road. When we are faced with personnel turnover with mismatched arrival/departure dates, budget cycles coupled with recent belt-tightening, space utilization and manpower audits, military-to-civilian position conversions, and so forth, we discover that determining, analyzing, and prioritizing timelines and milestones is more difficult and time consuming than it looks. However, with a little knowledge and lots of practice, managing the resources under your control will soon become another familiar and routine responsibility. Now that we understand better what resource stewardship entail and all of the forces that impact it, let s begin our journey with a discussion about financial management. MP 2: Financial Management 102 The goal of this main point is not to make you a financial expert, but to help you gain a working knowledge of financial management concepts that ir Force leadership considers most important to SNCOs. In pursuit of that goal, we ll look at resource allocation first, then cover the budgeting process, and conclude with the nti-deficiency ct.. Resource llocation Process This is the process of distributing resources. lthough these resources include funds, equipment, facilities, and people, we ll focus on just the allocation of funds. The process begins with Congress authorizing funds for military spending each year. The ir Force receives its share, divides it into different pots of money, and then allocates a portion of each pot of money to the MCOMs, Field Operating gencies (FO), and Direct Reporting Units (DRU). This process continues downward as each level of command receives, divides, and then allots smaller pots of money to subordinate commands. The process does not stop until it reaches the Cost Center Managers (CCM) level. This helps explain why the typical cost center budget is miniscule compared to the overall ir Force budget. For fiscal year 2013, the ir Force Blue total budget was LM04SG - 4

5 billion.0f Ideally, Congress approves funds in time for the start of the fiscal year (FY) (see figure 1 below); however, when that does not happen, Congress enacts the Continuing Resolution uthority (CR). This is a fiscal law authority that allows the government to continue operations at a minimum level for a specific amount of time (usually a few days but it can run to months). This is important to know because it impacts how and when you receive funds and spending is limited during the CR period. We spend allocated funds via appropriation which is another way of saying we set aside money for specific purposes. That $110.1 billion mentioned above pays for military personnel costs such as pay and allowances, permanent change of assignment moves, and medical care. In addition, it covers research and development, weapon system procurement, military construction projects, base closure and realignment costs, and overseas contingency costs. One other important appropriation is Operations and Maintenance (O&M), which includes mobilization, recruiting, training, administration, and service-wide activities; civilian salaries; operating and maintaining an installation; environmental restoration; and a myriad of other costs associated with day-to-day ir Force operations. Though it is important to know all of the information mentioned above, as SNCOs, we re most concerned with O&M appropriations because that is where we get funds needed to accomplish day-to-day missions. Now that we know where funds come from, let s look at the process of managing those funds. B. Budget Process The budget process is an endless cycle of planning, programming, revising, adjusting, and spending. Each cycle lasts one FY which begins on 1 October and ends on 30 September of the following year. Each FY is divided into quarters and specific actions take place within each quarter as outlined in figure 1 below. LM04SG - 5

6 Figure 1. Budget Cycle (Typical) nother way to look at Figure 1 is through the lenses of timelines and milestones. The budget cycle (1 Oct - 30 Sep), as well as each quarter within the cycle, offers concrete dates for determining, analyzing, and prioritizing budgeting actions and decisions. long the same lines, each budget cycle includes several milestones such as quarterly spending targets, Financial Execution Plan submissions, and end-of-year close out. lthough hundreds of actions and decisions occur throughout the budget cycle, SNCOs are most concerned with the Budget Execution Review (BER) process, the Financial Execution Plan, and hitting budget spending targets. Given the importance of BER, let s examine that process next. C. Budget Execution Review (BER) lthough we spend weeks developing a perfectly sound Financial Execution Plan, more often than not, the mission can change or unforeseen expenses pop up and throw our budget completely off track. Or, we know about the expense but our current year budget isn t large enough to cover the new expense. Fortunately, the BER exists to help us through both situations. The Budget Execution Review (BER) is a review cycle conducted twice during the FY to LM04SG - 6

7 identify, validate, prioritize, and request additional resources for unfunded requirements. The BER is the annual two-part process where funding shortfalls are reviewed for potential funding at installation level and then levels above the installation level. The BER process is a formal process that allow commanders to internally reprogram funds or identify and justify high priority unfunded requirements and prioritize (rack and stack) for the next higher level. Most of us have been involved in this process in some way or another. Some of us have received fall-out money and were pleased because we were able to purchase the supplies and equipment needed to accomplish the mission more effectively or efficiently. On the other hand, many of us have watched with envy while other sections, squadrons, groups, even wings reaped the benefits of fall-out money. Getting unfunded requests funded is not difficult for those willing to put in the time and effort to justify requirements and meet submission deadlines. When justifying an unfunded, follow these three simple rules: 1. Narrative justification of the unit/mission needs is a very important factor because there are so many important requirements competing for limited additional funds. The best BER submissions not only describe what is needed, but provide a picture of the mission, explain the item in detail, and most importantly, emphasize the mission impact if the requirement is not funded. 2. Details are provided and clearly stated: who/what/how many/when funding is needed 3. uantitative details are vital: ust like in EPRs, numbers help quantify and sell the story lthough justification usually comes from current mission requirements, it can also come from changes in mission and/or unexpected or unforeseen mission-related circumstances. In addition, a good Financial Execution Plan helps get unfunded requests funded because it demonstrates solid planning, programming, and prudent use of existing funds. D. Financial Execution Plan Given the public s demand for prudent financial management, the Financial Execution Plan (FEP) is the product used by the ir Force to balance available funding, risks and requirements, while delivering goods and services to customers within the O&M appropriation. In short, it ensures funds provided in the President s Budget (PB) are distributed in such a manner as to ensure ir Force program objectives can be accomplished. t the lowest practical level, the FEP 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. Despite mission differences, most organizations (units, sections, etc.) FEPs include the same basic requirements. These include government purchase card (GPC) items, equipment purchase, repair/replacement, personnel training/development and temporary duty costs. Most organizations also have information technology costs such as the purchase, repair/replacement of computers, printers, copiers, monitors, and maintenance and service contracts. Other common areas include civilian pay, building maintenance and repair, and custodial and landscaping service contracts. Really good plans also include a prioritized list of known unfunded requirements with LM04SG - 7

8 justification for each unfunded requirement and a Spend Plan that projects when and how funds will be spent throughout the fiscal year. lthough there is no ir Force standard for what a FEP must look like, the best plans include: Section 1: Mission Critical Requirements lists all mission critical requirements funded within the projected fiscal year s budget with an element of expense investment code (EEIC) assigned to each requirement. Section 2: ustification short narratives justifying each requirement identified in Section I. Section 3: Unfunded Requirements lists mission-essential requirements that exceed projected funding with a cost and narrative justification for each requirement. Section 4: Spend Plan Illustrates how projected funds will be spent over a 12-month FY period. So far, we ve covered the budget process and the Financial Execution Plan, both of which are paramount to mission success. However, history has demonstrated time and again that even the best Spend Plan does not protect SNCOs who are unfamiliar with the nti- Deficiency ct from severe administrative or punitive actions. E. nti-deficiency ct1f2 The nti-deficiency ct (D) is one of the major laws through which Congress exercises its constitutional control of the public purse. 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. The fiscal principles underlying the nti-deficiency ct 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 money in the "bank" to cover the cost in full. The "bank," of course, is the available appropriation. Specifically, military and civilian employees are prohibited from: 1. 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. 31 U.S.C. 1341(a) (1) (). In other words, do not obligate your unit to spend more than it has been authorized and do not spend money on unauthorized items or purchase items, contracts, resources, supplies, and so forth from the wrong pot of money. For example, using O&M money to purchase unit coins and tee-shirts to give to family members during the annual picnic (see more examples below). 2. Involving the government in any obligation to pay money before funds have been appropriated for that purpose, unless otherwise allowed by law. 31 U.S.C. 1341(a) (1) (B). Simply put, do not spend, or obligate funds in anticipation of receiving them. LM04SG - 8

9 3. ccepting 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. 31 U.S.C Making obligations or expenditures in excess of an apportionment or reapportionment, or in excess of the amount permitted by agency regulations. 31 U.S.C. 1517(a). Military and civilian employees who violate the nti-deficiency ct 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 2 years, or both. Other measures include admonishments, reprimands, and adverse performance reports. t this point, some of you may be thinking, Why do I need to know this stuff? I ll never obligate my unit to spend more than it is authorized, I ll never spend or obligate funds in anticipation of receiving them, and I know I ll never accept voluntary services for the United States or employ personal services. lthough we believe you, you need to know that regardless of your intentions, in the case of D violations, Good faith is no defense. Unfortunately, history is full of military members who received administrative and punitive measures despite their good intentions. One example from 2008, which most SNCOs can relate to, involves ir War College (WC) personnel who used O&M funds to purchase light refreshments in connection with a regional studies event hosted by WC. The individuals, who spent $21,000 over a 5-year period, were found responsible for violating U.S.C. Title 31 which specifically prohibits the purchase of light refreshments with O&M funds. 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 SNCOs get into trouble. 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: Buying unit designated coins as mementos to give to family members of deployed personnel would not be proper. Generally, O&M funds may be used for purchases that support an award for excellence in accomplishment or competition. T-Shirts: The purchase of T-shirts for sports competitions is authorized as long as such competitions are of a continuing nature.2f3 However, buying shirts for all unit personnel in attendance is not authorized. Purchases are limited to shirts presented to winners. Out-of-Cycle Use: Using unfunded money to purchase items, equipment, supplies, services, and contracts that will be used or begin in the following FY is prohibited. Before wrapping up this section, we must reemphasize that good faith is no defense against D violations and that government funds may only be utilized when the request LM04SG - 9

10 is: 1. supported by the proper appropriation; 2. not otherwise prohibited by law; and 3. not otherwise provided for by some other appropriation. - With financial management covered, it s time to turn our attention away from money and focus on people and positions. In this next section, we ll look at manpower management concepts beginning with the four manpower competencies. F. Terms and Definitions 1. pportionment distribution by the Office of Management and Budget (OMB) of amounts available for obligation in appropriation or fund accounts of the executive branch. The 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 4 amounts so apportioned limit the obligations that may be incurred.3f 2. nti-deficiency ct Prohibits from involving the government in a contract or obligation for the payment of money before an appropriation is made unless authorized by law. Prohibits against over obligating or overspending an appropriation. 3. nti-deficiency ct Violations n act that results in exceeding limitations [misuse] of funds authorized and appropriated by Congress in support of contract obligations. 4. ugmentation of Funds process to supplement [increase the amount of] authorized funds. 5. uthorization ct uthorizes agencies to incur fiscal obligations for specific purposes and time periods. This act uthorize existing and new programs, sets funding limits, limits purchases to a specific number of items (e.g. aircraft), and allows the ir Force to draw funds from the US Treasury. 6. Budget llocation Funding document, which represents cash for commitment or 5 obligation, that is issued by SF/FMB to a major command or field operating agency.4f 7. Budget llotment Similar to a budget allocation except that it is issued by major 6 commands or field operating agencies to subordinate units.5f 8. Budget uthority (B) and Operating Budget uthority (OB) Documents B and OB documents are the official documents that convey obligation and expense authority for a given fiscal year. Limitations and or restrictions are identified on this document. The OB document authorizes a base to pay for expenses to support the mission; it identifies a specific amount of funds authorized for normal base O&M costs. The total amount is subdivided into Budget ctivity (B) and provides both annual obligation authority and quarterly obligation authority, distributed through the utomated Funds Management (FM) system. 9. Budget uthorization Budget authorizations represent the approved financial program with which the recipient can plan to accomplish the mission in an orderly LM04SG - 10

11 manner.6f Budget Outlays Governing Execution Year (BOGEY) Estimate of what will eventually be in the appropriation bill passed by Congress. 11. Continuing Resolution uthority (CR) Fiscal law authority that allows the government to continue operations at a minimum level for a specific amount of time, usually a few days to a few weeks. This is important for SNCOs to know because it usually delays the initial distribution of funds. During CR, units typically receive funding authority for approximately 80% of the previous year s budget amount. CR is needed to prevent agencies from shutting down because without it, agencies have no authority to incur fiscal obligations Cost Center (CC) The organization that gathers and distributes cost data.7f 13. Cost Center (CC) Managers Regulates the daily use of work hours, supplies, equipment, and services in producing or doing things. lso, continually monitors the relationship between resources used and products produced to allow for informed 9 resource realignments.8f 14. Defense cquisition Programs Programs designed to obtain [acquire] new defense platforms to protect our nation and its invested interest. 15. Element of Expense Investment Codes (EEIC) Represents the final breakout in the budget structure. The number varies with the major command (MCOM), depending 10 on the number of sub elements required for local management.9f 16. Financial Execution Plan (Part I - funded level) submission level in the financial plan that equals (funded requirements) the planning number provided with the call 11 instructions. 10F 17. Financial Execution Plan (Part II - unfunded level) submission level in the financial plan that includes all requirements exceeding (unfunded) the planning number.11f Financial Execution Plan (FEP) Formally called Financial Plan or Fin Plan, the basic purpose of the FEP submission is to ensure an equitable distribution of the President's Budget (PB) for the next fiscal year (budget year) consistent with accomplishing ir Force program objectives. The FEP is the main vehicle for distributing anticipated funding (both direct and reimbursable) for the upcoming execution year in an equitable manner. It requires all organizational levels to contribute their corporate knowledge 13 and expertise.12f 19. Financial Management Board (FMB) The senior advisory committee chaired by the Commander or Deputy Commander and includes group commander level members and the Comptroller (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 14 by higher authority.13 F LM04SG - 11

12 20. 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 Comptroller or the financial analysis officer chairs the Financial Working Group (FWG) and 15 designates appropriate resource advisors and other members to comprise the FWG.14F 21. Milestones ssociated with Budgeting Process Significant events in the budgeting process. (CR, BER, End-of-uarter, Close-out, etc.) 22. Obligation legal binding agreement between the government and another party. The ir Force has entered a contractual obligation; however, no goods or services have yet been received. 23. Operating Budget uthority Document (OBD) uthorizes a base to pay for expenses to support the mission, and identifies a specific amount of funds authorized for normal base O&M cost. The total amount subdivided into Budget ctivity (B) and provides both annual obligation authority and quarterly obligation authority, distributed through the utomated Funds Management (FM) system. 24. Program Budget Decision (PBD) decision authorizing changes to a submitted service budget estimate and the Future Years Defense Program. PBDs are developed during the joint Office of Secretary of Defense, Office of Management and Budget, review of the service budget estimate submissions and are signed by the Secretary of Defense or the Deputy Secretary of Defense. These decisions reflect the approved program and funding levels to be included in the defense budget request which is part 16 of the President s Budget.15F 25. Program Objective Memorandum (POM) Biennial memorandum submitted to the Secretary of Defense from each Military Department and Defense agency. It proposes total program requirements for the next six years. It includes rationale for planned changes from the approved Future Years Defense Program baseline within the Fiscal 17 Guidance issued by the Secretary of Defense.16 F 26. Resource dvisors Budget representative for an organization. The resource advisor participates actively in resource management, including the planning, programming, budgeting, acquiring, consuming, storing, and disposing of resources. nd, is directly 18 responsible to the RCM.17F 27. Resource llocation The process of distributing resources (usually funds, but can also be equipment, facilities, and or people). 28. 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, use resources to do that work. lso, appoints a resource advisor (usually at the squadron or group organizational level) to oversee technical details of operations relating to resource use.18f Timelines ssociated with Budgeting Process Submission deadlines associated with quarterly and annual budget requirements. LM04SG - 12

13 MP 3: Manpower 102. Four manpower competencies: 1. Organization Structure: This competency deals with the functionality of organizations, specifically activation, inactivation, redesignation, and reorganization. The Organizational Change Request (OCR) is the instrument used to activate, inactivate, redesignate, or reorganize organizations. 2. Program llocation and Control: This competency centers on the Unit Manpower Document and a unit s total requirements. a. Unit Manpower Document (UMD): This computer product details the organization structure, (the number, skills, grade and security requirements of manpower authorizations), the position number for each authorization and other pertinent data commanders and managers need to manage manpower resources. ny change to the UMD requires a formal uthorization Change Request (CR see below), signed by the appropriate commander. Note: The UMD does not reflect personnel assigned (faces). See ttachment 8, Unit Personnel Management Roster (UPMR) for faces in spaces. b. Funded uthorizations: These are authorized and funded positions needed to accomplish the assigned workload. Funded manpower positions are allocated by category (officer, enlisted, and civilian). Given the fact that requirements have always exceeded available funding, commanders first prioritize requirements and then allocate funding to the highest priority. c. Unfunded Requirements: These are valid but unfunded positions needed to accomplish the assigned workload. When looking at the efficient use of our most valuable resource, funded manpower authorizations, we must be able to show how each currently funded position and all new and emerging mission changes support the CSF's top priorities. lthough MCOMs use the Program Objective Memorandum (POM) to request funded manpower authorizations for new and emerging missions, ir Force Manpower Standards are used to validate both current and emerging commander directed mission requirements to ensure they support the CSF s priorities before funding is authorized. Missions that no longer support the CSF s priorities, and the manpower supporting those missions, should be identified for deletion. SNCO s Functional Roles Before concluding our Program llocation and Control discussion, we must emphasize that the SNCO s functional role in helping develop manpower standards is two-fold. Functional Role #1: Whenever manpower conducts work performance measurements, it is critical for SNCOs to make sure the person conducting the study observes an average performer. llowing manpower to observe the sharpest airman will more than likely skew the results of the study because the LM04SG - 13

14 sharp airman will complete the work in less time than the average airman. ust the opposite is true for a below average performer. Functional Role #2: The second functional role concerns manpower career field workshops. Since these workshops attempt to determine the career field s future needs, SNCOs should fully support these important events by sending their sharpest E-5/6. The best choices are E-5/6s who perform the mission daily (worker), are considered the go to person, and who possess the ability to think strategically. 3. Requirements Determination: This competency centers on the uthorization Change Request (CR) which is a multi-purpose instrument used to propose adjustments to a Unit Manpower Document (UMD). CRs are commonly used to request increases, decreases, or realignments of manpower requirements and/or to change attributes on the UMD. Examples include: - Changes to ir Force Specialty Codes (FSC). - djustments in grade or skill levels. - Changes to Security or Personnel Reliability Program (PRP) codes. Do Not submit CRs to solve short-term problems or when the problem is created by: - Shortage of assigned personnel. - Poor or inadequate supervision, personality conflicts, or lack of workers skills. - Self-imposed or peaking workloads. - Inefficient procedures and/or ineffective and/or inefficient use of personnel. Squadron commanders have CR approval authority only when all authorizations impacted are subordinate to the commander. Group Commanders approve CRs that cross squadron lines of command (as long as all affected elements are subordinate to the group commander). Wing (or vice) commanders approve CRs that cross group lines of command or when CRs impact the wing staff. Though most organizations have their own format, CRs should include as a minimum: (1) List of the UMD attributes that identify the affected position (2) List of the UMD attributes that represent the desired change (typically bolded) (3) ustification for each proposed change (what, why, and when) Note: Before composing or submitting an CR, check with your local Manpower office as they can often save you time and prevent frustration. They can do this by providing guidance, explaining the process, and/or addressing appropriate process and procedures for each unique situation. This office is typically located under the Force Support Squadron as part of a Manpower & Personnel Flight. In addition, it s a good idea to check with your MCOM functional manager, review the current UMD and previously submitted CRs and to speak with organizational leadership about known or proposed changes to the organization (mission, people, etc.) B. Performance Management: This manpower competency centers on programs that increase efficiency and cost-effectiveness. ccording to the ir Force Guidance LM04SG - 14

15 Memorandum (FGM) 38-01, the irmen Powered by Innovation (PI) Program replaced the following programs: Innovative Development Through Employee wareness (IDE), Best Practices (BP), Productivity Enhancing Capital Investment (PECI), and expanded the ir Force Smart Operations for the Twenty-first Century (FSO21). Since the ir Force objective is to improve its effectiveness and efficiency, the PI program works within our ever changing and often challenging financial environment to create resource savings and improved mission performance,. FGM provides the guidance and procedures for processing ideas, including the brief overview below: 1. uthorities, Roles, and Responsibilities: This section explains the roles and responsibilities of people and offices involved in the PI program. These responsibilities range from what all irmen should do to what key players will do within the PI program. One of the key players is the Organizational Level Decision Maker (OLDM) who has the authority to approve an idea and direct implementation. Examples of OLDMs would be Wing Commanders, MCOM Commanders, and HF 2-Digits. 2. irman Powered by Innovation Ideas Process: This section explains the four phase PI idea process which includes: Ideation/Submission Phase, Evaluation Phase, Implementation Phase, and Hold-the Gains Phase. irmen can submit ideas by using the following website: Once an idea is submitted, the four-phase process begins. 3. Ideas pproved for Implementation: This section covers ideas approved for implementation and awards. Ideas approved for implementation can exist at the following levels: Local implementation, MCOM-wide implementation, and ir Force wide implementation. The ideas that deliver confirmed results in effectiveness and/or efficiency when implemented will be categorized into tangible or intangible results. Once the ideas are determined to be tangible or intangible then the awards can be based on the tangible or intangible benefits in an effort calculate the award amount. FGM contains specific award amounts that are listed in the following tables: Table 5.1 uick Guide for Calculating wards based on Tangible Benefits and Table 5.2 Scale of wards Based on Intangible Benefits (IW ). Before wrapping up this area, we should point out the functional role of SNCOs concerning process improvement and performance management. SNCOs are expected to constantly improve efficiency and cost-effectiveness and to engage manpower in this process. Put simply, SNCOs are expected to find ways to be more effective in order to free up resources (money and people) so the ir Force can utilize these resource(s) in other areas. This also includes finding ways to reduce backlogged work in order to more effectively and efficiently accomplish the primary mission. SUMMRY The impact of resource stewardship cannot be overstated in today s ir Force fiscal environment. s SNCOs, we must include financial management and manpower concepts into our discussions and decision making. This reading provided you a broad overview LM04SG - 15

16 concerning resource stewardship, and you were exposed to the appropriation of funds, the budget cycle, and the Financial Execution Plan (FEP). You also learned about manpower competencies, the Unit Manpower Document (UMD), and the uthorization Change Request (CR). You now have an increased knowledge base to inform your resource discussions and decision making to ensure the effective and efficient use of resources and your unit s mission success. LM04SG - 16

17 ttachment 1 Financial Execution Plan (Spend Plan) 1 st uarter 2 nd uarter 3 rd uarter 4 th uarter Expenses Oct Nov Dec trly Target an Feb Mar trly Target pr May un trly Target ul ug Sep trly Target nnual Budget: 1 st uarter Target: 2 nd uarter Target: 3 rd uarter Target: 4 th uarter Target: LM04SG - 17

18 ttachment 2 Element of Expense Investment Codes (EEIC) EEIC Title EEIC Title 409 TDY Expenses Purchased Maintenance of Other Equipment (exercise equipment, specialized mission equipment) Transportation of People - Base Bus Service Other Supplies & Materials, Non-SF Leased Space GPC card (office/classroom supplies, printing cost, small furniture buys, registration fees) Rental of Computer Equipment Rental of Other Equipment Misc Contract Services (LDS, cleaning contract) Misc Contract Services, Mission Support 628 General Support Div, F Stock Fund, Issues/Turn-ins (tools, deployment equipment, uniforms) IT purchases - software IT purchases Small computers (HW) 639 Other Equipment, Non-SF Honorariums 641 Ground Fuels (vehicles, carts) 567 Purchased Maintenance of Leased Computer Equip LM05SG - 17

19 ttachment 3 Financial Execution Plan Format dd mmm yy (Use assignment due date) MEMORNDUM FOR FROM: SUBECT: FY FSNCO Financial Execution Plan 1. The purpose of this document is to provide the Barnes Center with a detailed FY Financial Execution Plan for the FSNCO. Section I: Mission Critical Requirements Category/Description EEIC Cost Section II: ustification EEIC (Code), (Category/Description) $., (Mission Critical): dd funded requirements justification narrative here Section III: Unfunded Requirements EEIC (Code), (Category/Description) $., (Mission Critical): dd unfunded requirements justification narrative here Section IV: Spend Plan See attached Spend Plan 2. If you have any questions concerning this Financial Execution Plan, please contact (student s Rank, First Name, Last Name), //signed/xxx/dd mmm yy//, CMSgt, USF Commandant LM04SG - 19

20 ttachment 3 ttachment: Financial Execution Spend Plan MSgt mazing/flight 33/FSNCO3316/ /aaa/1 un 10 LM04SG - 20

21 ttachment 4 Unit Manpower Document (UMD) Unit Manpower Document Explanation of ttributes The UMD is a computer product detailing a unit s organization and manpower composition. Its purpose is to provide commanders and managers a consolidated document detailing the organizational structure, (the number, skills, grade and security requirements of manpower authorizations), the position number for each authorization and other pertinent data needed for management of manpower resources. Military and civilian personnel offices also use this database to develop computer products for personnel management. This makes the manpower position number common to both systems and facilitates cross-referencing information from these products. Interpreting the UMD The UMD serves as a baseline on all management actions dealing with manpower. ny change to the UMD requires a formal request and signed by the appropriate commander (see uthorization Change Request [CR] below). Note: This product does not reflect personnel manning. What follows is an explanation of most data codes found in the UMD. 1. CID (Command Identifier): Identifies to which command the UMD applies--0 - ir Education and Training Command (ETC) or 1C - ir Combat Command (CC). 2. POS (Position Number): 10-digit number assigned to each manpower authorization. The first 8 digits provide identification and interface capability between manpower and personnel data systems. The last two digits represent the CID. 3. FSC (ir Force Specialty Code): Identifies the positions required/authorized specialty. The data code field may be overridden by the use of a Duty Title Code, which is explained in paragraph 10. The FSC description can be found by going to the FPC web site, going to the search function and typing in FECD (for enlisted FSCs) and FOCD (for officer FSCs). (refer to FI ) 4. SEI (Special Experience Identifier): three-character code, which indicates the requirement of special experience or qualification. The individual must possess the prerequisites in FI prior to the MPF assigning him/her to the position. SEI codes common to an FSC are found in FI (not applicable to civilian authorizations). 5. GRD (uthorized Grade): The authorized grade that is funded by Congress. It consists of the alpha characters for military rank and the current GS rank or TBD for civilian positions. When there are Contract Manpower Equivalents (CME) additions, CME is entered in this column. CME is the number of in-service man-years that would be required if the contracted workload was performed in-house at the same workload and performance level required in the contract performance work statement. LM04SG - 21

22 ttachment 4 6. RGR (Required Grade): Shows the required grade for the particular position as earned by manpower standards, guides, etc. Differences between the required grade and the authorized grade are caused by funding constraints and by Career Progression Group (CPG) allocations. Note: Career Progression Group (CPG), The ir Force allocates grades, by FSC, to the commands. The actual allocation is the percentage of enlisted grades in each FSC (first three digits of a particular career field) that can be used as authorized grades on the UMD. For example, the total authorized 832 FSCs authorized in the command, 1% may be allocated in the grade of CMS, 2% SMS, 7% MSG, 11% TSG, 22% SSG, 33% 1C. (NOTE: THIS IS N EMPLE ONLY.) CPG allocations are updated on an annual basis and are computed by bumping the total ir Force allowed grade percentages against the required. Since we are limited, the commands have the responsibility to see that the grades are used in the most appropriate positions to adequately discharge the mission. 7. MNT (Manpower Type Code): 5-digit code used to identify the funding designation for manpower requirements. complete list of all MNT codes is available in MPES. The most common codes include: R = Unfunded Full Time In-service ppropriated = Funded Full Time In-service ppropriated C = Funded Full Time Contract ppropriated 8. PI (ircrew Position Identifier): Indicates a requirement exists for an officer or enlisted possessing operational flying status. This is a required entry for all officer authorizations; however, a 0 in this column depicts officer authorizations that do not require rated expertise. Enlisted PI codes will be alpha, while Officer PI codes will be numerical. B C CREER ENL VITOR CE LINE FLYERS CE STFF/SUPV WING/BELOW MUST FLY CE STFF/SUPV WING/BELOW NOT FLY 1 PILOT LINE FLYERS 2 NVIGTOR LINE FLYERS 3 RTED STFF/SUPV WING/BELOW NOT FLY D CE STFF/SUPV BOVE WG MUST FLY 4 RTED STFF/SUPV BOVE WG NOT FLY E CE STFF/SUPV BOVE WG NOT FLY 5 FLIGHT SURGEON F CE/OT&E/IOT&E/FMS MUST FLY 6 RTED STFF/SUPV WING/BELOW MUST FLY G CE FLYING DUTIES IN NON-USF 7 RTED FLYERS IN NON-USF UNITS (ECHNGE LM04SG - 22

23 ttachment 4 Z 0 UNITS (ECHNGE PROGRMS) PROGRMS) NON-CREER ENL VITOR POSITIONS 8 RTED STFF/SUPV BOVE WG MUST FLY NON-RTED OFFICER POSITIONS 9 IR BTTLE MNGER 9. PEC (Program Element Code): Represents a subdivision of programmed cost data (people, equipment, and facilities) related to a weapon system or support function. The F Data Dictionary provides a complete list of all F PEC s along with the F definition of the PEC. (refer to para 8.1.) 10. DTY (Duty Code): 3-digit code used to identify those requirements or authorizations that levy specific roles, duties, or titles on the individual filling them. It overrides the FSC title. 099 Sec/Clerk/Steno 271 Superintendent 113 Commander 277 Vice Commander 135 Deputy 326 Supervisor 137 Deputy Commander 338 Flight Commander 189 Flight Chief 415 Section Commander 11. CEC (Civilian Employment Group Category): Shows the category in which the civilian would be hired. Some examples are provided below. gain, a complete list of all the CEC codes can be found in the Reference Tables in MPES. CEC DESCRIPTION CEC DESCRIPTION 10 Salaried (GS) 50 Deutsche-Mark/Moduk 20 Wage (WG) 70 NF 30 Direct Hire Non US citizen 80 Contract Manpower Equivalent (CME) 40 Indirect hire Non US citizen 12. SR (Security ccess Requirement): Indicates the security access necessary for normal recurring work to be performed in the work center by the designated authorization. (Refer to FI , Para ). Code ccess Level Blank No ccess Required 5 SSBI: Single Scope Background Investigation (Top Secret) 6 NCLC: National gency Check with Local gency Check and Credit LM04SG - 23

24 ttachment 4 Check (Secret Military) 7 NCI: ccess National gency Check with Written Inquiries and Credit Check (Secret Civilian) 8 NCI: National gency Check with Written Inquiries and Credit Check (No ccess Civilian) 9 NC: National gency Check (No ccess) 13. PRP/SCI (Personnel Reliability Program/Sensitive Compartmented Information): Status code identifies authorizations that require a PRP or SCI qualified individual. *Code D N Z Description Controlled Nuclear Weapons Duty (Prior nuclear experience not required) Certified PRP Critical prior nuclear experience required Nuclear experienced required, PRP not required *Many additional PRP/SCI codes exists; see appropriate personnel/assignment FIs 14. MSI (Manpower Standard Implementation): Identifies the type of manpower standard used to determine the manpower requirements for a work center. MSI Description MSI Description F REENGINEERED 1 CMS TIER 1 C MCOM REENGINEERED 2 CMS TIER 2 F CREW RTIO 3 CMS TIER 3 L LCOM 4 CMS TIER 1 VRINCE M COMPETITIVE SOURCING 5 CMS TIER 2 VRINCE N OUTSIDE IR FORCE 6 CMS TIER 3 VRINCE P F STUDY ONGOING 7 CORE COLONEL OR CMSGT S MCOM STUDY ONGOING 8 ETERNL OR FIED COLONEL OR CMSGT U W NOT COVERED BY MNPOWER STNDRD MCOM DIRECTED 9 VRINCE COLONEL OR CMSGT 15. CRK1 and CRK2 (Command Manpower Remarks code): Identifies unique LM04SG - 24

25 ttachment 4 characteristics of manpower authorizations that are not defined by other data codes. It identifies manpower authorizations, which MCOMs may use to define manpower data. 16. PS (Personnel ccounting Symbol): The PS identifies the organization to which a manpower authorization belongs. The PS has four alphanumeric characters and each organization has its own PS. 17. Unit: Identifies the unit designation assigned to the PS code. 18. ILC (Installation Location Code): Identifies the location of the unit or installation in geographic coordinates. 19. Installation: term used to describe a geographic location where military operations or duties are conducted. For Example, Osan B. 20. SCC (Installation State or Country code): Identifies the state where the installation is located. For example, KS for South Korea (ROK) 21. SUB (Subcommand code): Identifies where in the MCOM authorizations are assigned. 22. PL (Personnel ccounting Level): The second through fourth indicator to specific units or groups of units. It permits their aggregation into the hierarchy desired by the major command or assignment. This code is used specifically in the personnel arena and not used in ETC. 23. CBP (Consolidated Base Personnel): Number designates where the servicing Military Personnel is located. The CBP makes up the first two characters of the PS code. 24. CCP (Central Civilian Personnel): Number designates the location of the servicing Civilian Personnel. 25. MET (Servicing Manpower and Organization Office (MO) code): Designates the location of the servicing MO. Normally, this code is the same as the CBP code. 26. Identity: Used to segregate the various types of manpower categories into distinctive groups: active, reserve, guard, Individual Mobilization ugmentee (IM), nonpermanent party (NPP) and CME. 27. PPN (Parent PS number): Identifies the PS code of the parent unit. 28. Parent Unit: Next higher level unit. n organization that directly administers units, detachments, or operating location assignments to it. (refer to FI ) 29. OSC (*Organization Structure Code): 2 to 7 character code that identifies the internal organization structure of the unit. It is used to identify where a group of LM04SG - 25

26 ttachment 4 authorizations belong within the overall organization. The lesser number of characters in the OSC; the higher echelon placement of that function in the unit. OSCs are useful to determine who reports to whom in the organization. Listed below are examples of OSCs and how they matched to an organization chart. OSC Title CC Command CC Orderly Room FSM Manpower and Personnel Flight FSMM Manpower and Organization Branch FSMP Military Personnel Branch FSMPM Military Personnel Force Management * Note that each succeeding level adds an additional character in the OSC. 30. OSC Summary and Unit Summary: This shows on the UMD the total number of authorizations, by quarter, under each OSC. The totals are broken out by officer, enlisted and civilian. 31. FC (Functional ccount Code): Six characters identifying a homogenous grouping of tasks. F FC is used to identify each function to facilitate the analysis and accountability of its manpower requirements. F FC does not equate to an OSC or office symbol code. (refer to FI ) The first four characters describe the F function. The last two characters are used to identify specific work. The first digit of the FC represents the major groups of functions. The functional groups are divided into seven categories to identify the major type of work performed: FC Description 1 Command and Command Support 2 Maintenance 3 Operations 4 Mission Support 5 Medical 6 Research and Development LM04SG - 26

27 ttachment 4 7 ctivities Outside the USF The first and second digits of a function code, when combined, represent the basic function of the major grouping (11 - Info Mgt., 15 - Comptroller, etc.). The third and fourth digits of the function code represent a shred-out of the basic function (sub-function) and a shred-out of the sub function, respectively. LM04SG - 27

28 ttachment 5 dditional CR Information Consider all of the following before submitting changes and/or justifying manpower changes. Be as specific, factual, and brief as possible. CONSIDERTIONS ir Force Manpower Standards Mission Impact Change in Mission/Workload UTC/UMD Zero Balance ction Contract Services Program Element Code (PEC) ssignment ction If requested changes conflict with existing Manpower Standards, provide justification why the changes are absolutely necessary for mission accomplishment. Explain how requested changes enhance the mission and impact if not approved. Either cite directive (FI, chapter and paragraph) or attach applicable documentation/directive from Headquarters, or both if applicable. Ensure changes to military authorizations DO NOT cause a UTC/UMD mismatch. Ensure there are no overall quantity changes in PECs, grades, and military or civilian categories. Rule out the use of contract services before submitting CRs for increased authorizations. If an increase in manpower is requested, ensure the identified trade-off positions are within the same (PEC). If any part of the requested change causes an assignment action, ensure the requested effective date allows sufficient lead-time for personnel changes (current quarter +2 more quarters). DDITIONL COORDINTION MCOM Functional OPR If required, discuss proposed changes with OPR and include OPR s name, office symbol, and DSN number. Civilian Personnel Office (CPO) SR PRP Have CPO coordinate on all changes to civilian authorizations; endorse the CR stating, No adverse civilian action will be caused by the requested change. Provide the CPO representative s name, office symbol, telephone number, and date coordinated. Coordinate changes with SFS POC and get his/her concurrence/endorsement before submitting CR. Coordinate with base PRP monitor and get his/her concurrence/endorsement before submitting CR. PPROVL UTHORITY Squadron Commander: Group Commander: pproves CRs within his/her squadron. pproves CRs within his/her group. LM04SG - 28

29 ttachment 5 Wing Commander (or vice): pproves CRs that cross group lines of command or are on the wing staff. LM04SG - 29

30 ttachment 6 UMD Format Examples Below are just three examples of the over 100 formats available. Mil PDS Format Excel Format PDF Format LM04SG - 30