Current Issue HighlightsThe Fall 2007 Armed Forces Comptroller features an interview with the Honorable Tina Jonas, Under Secretary of Defense (Comptroller) and DoD’s Chief Financial Officer. Mrs. Jonas describes the Department’s major financial accomplishments and suggests in broad terms how field-level personnel can help improve defense financial management. The Fall Journal also offers many different views of process and progress in defense resource management. You can learn about resource management from the perspective of the increasingly influential Combatant Commands. You can read about resource management at the Army’s Installation Management Command and understand how the Air Force is adjusting its financial management to accommodate the long war. An article in this quarter’s Journal describes a cost analyst’s perspective on resources. There is also an article by two senior Congressional staff members describing the role of Congress in defense resource management. The Fall Journal features an article about resource planning in the Chilean Navy. Despite a budget that is tiny compared with U.S. levels, you will be amazed at some of the similarities between the planning processes in the two countries. Finally, this Journal offers interesting articles outside the direct realm of budget and resource management. You can learn about the Financial Improvement and Audit Readiness (FIAR) plan and find out how to do a better job of providing decision support to your commander or manager. You can also discover how the Coast Guard uses energy management to save money. The Journal not only offers financial management information; you can also learn about your colleagues. Look at the pictures of chapter activities and if you recognize anyone. Skim the list of our most recent CDFMs and congratulate any colleagues that appear on the list.
Past Issue HighlightsThe Fall 2006 issue had a theme of Fiscal Law and Ethics. The issue contains seven articles within the theme, to include a refresher on some fiscal law basics, the Antideficiency Act, the distinction between federal employee and contract employee, basic ethical principles, proper use of O&M funds, and core concept of ethics. In addition, the issue includes a fiscal review of Balkans operations and an article on a the new Defense Support of Civil Authorities (DSCA) financial management process. The published article from Mr. Matt Reres, entitled "Federal Employee or Contractor Employee?" is a consolidation of a lengthier article, which may be found in its entirety below.
Part of the Spring issue contained articles that are tales from the war zone and in hurricane response. We had so many submissions for this feature, we just could not print all of them in the magazine. The tales not included in the Armed Forces Comptroller are shared below.
Al Udeid Experience Commanding the 379th Expeditionary Comptroller Squadron at Al Udeid Air Base was a great experience. One of the aspects I truly enjoyed was living in a foreign country and learning about a new culture. I will admit I had a preconceived notion of what a Middle Eastern nation would be like, but I was truly surprised once I got there. Downtown Doha is filled with mirror covered high-rise buildings, and looks like any American city with some Middle Eastern touches to the architecture. There was a section downtown called “cholesterol corner”, in that area you could find Chili’s, Applebee’s, Kentucky Fried Chicken, Dairy Queen and Johnny Rockets. Shopping malls downtown were huge monoliths to western commercialism. Three stories tall with hundreds of stores and food courts attracted people of all demographic groups. A mix of cultures was easy to see as patrons walked the mall or the waterfront area along the Persian Gulf in anything from jeans, to Dockers to the traditional burka. Beyond the western influences, you can easily find the more traditional souqs or stores downtown hosting a wide range of goods from exquisite jewelry to fabrics and fashions at prices well below the going rate in the States. Just stay away from the electronics, the prices are at least twice of what you pay back home. Experiencing the way of life, the traffic, the nightlife and the cuisine was an experience I will never forget. If you have the opportunity to visit Doha via Al Udeid, take some time to get off base and enjoy the local culture.
Comptroller in a Deployed Environment – Establishing a Security Force Comptrollers supporting Operations Enduring Freedom and Iraqi Freedom have been faced with many unusual problems. The role of the financial manager has always been to provide the necessary resources to accomplish mission objectives. In today’s war in Iraq, the mission is to establish an operational security force. In order to meet this goal, financial managers are more often having to solve problems by thinking ‘out of the box’ to develop solutions to never before encountered problems. One such example is the Transitional Team Integration Funds program utilized on the Iraqi battlefield. The military mission in Iraq is the establishment of the Iraqi Security Force comprised of Iraqi Police and the Iraqi Military. The Coalition Forces’ role of recruiting, training, and equipping the Iraqis is a daunting task. Not only does this involve the military forces deployed to Iraq, it involves the political might of the US Department of State. The Iraqi Security Forces cannot survive without the backing and support of a centralized Government in Iraqi. This independent government must be able to provide the sustainment capability of a fully operational security force to include salaries, life support, and operations and maintenance. In an effort to facilitate the process, the Coalition Forces have employed embedded transition teams within all levels of the Iraqi units to provide guidance, training, and mentorship. These highly trained combat warriors are responsible for guiding the Iraqi units in the application of operations, logistics, communications, personnel, and in some cases financial management. Despite the dedicated efforts of the deployed Soldiers, Sailors, Airmen, and Marines, the establishment of a new security force doesn’t happen overnight. As new Iraqi combat units are being established on the battlefield, so were the necessary support units, abet at a much slower pace. Problems arose when Iraqi operational units were unable to easily obtain needed critical supplies and equipment to perform their mission. As with the Iraqi warfighters, Iraqi support units are in their infancy and are unable to effectively support all incoming requirements. In order to compensate for this learning curve, Coalition Force Comptrollers and contracting officers developed a means to provide critical resources to the units in need. Financial managers thought outside the box and established a program that bridged the gap while the logistical system matures. Continuing to use appropriate colors of money, each embedded transition team is provided with a small amount of operating cash known as Transition Team Integration Funds (TTIF). TTIF provides the teams with resources to purchase small one time use supplies and equipment for their Iraqi counterparts. Soldiers on the ground can now easily replace truck batteries, blown tires, printer cartridges, pens, pencils, and paper that Iraqi units can’t seem to procure through their own immature systems. This temporary program is helping sustain the fight as the Iraqi support system is established and will run parallel for a short while then will close out as the ISF support system stands completely on its own. Through the continued efforts of the Coalition Forces and our Iraqi Security Force Allies, the ISF will continue to experience growth and success along with their government. It is through the creative and dedicated minds of countless professionals that programs, like TTIF, are making a difference in creating an operational security force in Iraq. Capt Russell E. Williams, USAF, is deployed as the ISF funds manager for Multi-National Corps-Iraq. He can be reached at russell.williams@seymourjohnson.af.mil.
Comptroller in a Deployed Environment – The Color Purple Comptroller operations in a deployed joint environment offer many opportunities that are not afforded in a single service organization. Significant differences include service terminology, automation systems, allocation of funding, and personnel backgrounds. The one commonality is the “Color of Money”. Finally, there is much guidance provided to a deployed theater of operations that further restricts financial operations, uncommon to stateside operations. These opportunities provide a means for all four services to find a commonality in the joint, or “Color Purple” environment. George Patton once said to a group of English women, “The British and the Americans are two nations separated by a common language”. Much the same can be said of operating in a deployed joint environment. The Multinational Corps – Iraq (MNC-I) Comptrollers Office consists of all four services. Service terminology is a large barrier to communications. Topics as simple as organization names and structures (battalion, brigade, division, versus squadron, group, wing) acts as a barrier to communications. The budget terminology and software / database packages are also different. The primary systems used in Iraq are those familiar to the Army: Database Commitment Accounting System (DbCAS), Standard Financial System (STANFINS), and Operational Data Store (ODS). One common difference to all four services is operating under a monthly budget. Most comptrollers receive annual or quarterly Funding Allocation Documents, but in Theater, Coalition Forces Land Component Command (CFLCC) provides funding based on monthly requirements submitted by the various theaters. Cash flowing the war becomes a common practice. The majority of Theater funding comes through the Army from Congressional Supplemental appropriations. Projecting funding targets for Major Subordinate Commands (Divisions) is the nearest thing to long term steady state funding that can be offered. These funding targets are intended to provide for the operational mission requirements of the warfighter, but cannot fully account for the enormous contracts that are required to sustain base support, force protection, and maintenance requirements. Frequent changes are a result of evolving battlefield requirements, amount and type of deployed forces, and commanders’ priorities: tactical, operational and strategic, both in Theater and CONUS. Monthly budgets force comptrollers to incrementally fund large contracts over a series of periods versus fully funding the contract up front or it causes the contracting office to write multiple contracts with smaller periods of performance when the contracts must be fully funded. The MNC-I Comptrollers Office is comprised of all four services – each with a different background. Army personnel are deployed for one year (Temporary Change of Station) and typically are generalists. They usually have worked both their basic branch (i.e. Field Artillery, Finance, Quartermaster) and their Functional Area, Resource Management. Navy and Marine Corps personnel are assigned for six months. Navy enlisted are usually Personnel Specialists (PS1/3) and Marine Corps typically provides Budget Officers. The Air Force tour is usually four months. Air Force Financial Technicians are more aligned with financial pay and their associated systems, but they quickly adapt to the resource management aspects of the Army databases and budget terminology and prove extremely capable in the daily operations of budget execution. Service color of money or fiscal law issues and rules have a great deal in common between services. Ninety-nine percent of the funding MNC-I uses in theater is Operations and Maintenance. While MNC-I uses Operations and Maintenance - Army (OMA) funds, the regulations governing the use of Operations and Maintenance across the four services is similar (e.g., Defense Finance and Accounting Service (DFAS) regulations, GAO Red Book and DoD Financial Management Regulation (DoDFMR)). One significant difference lies in the guidance provided by CFLCC, Multinational Forces – Iraq and MNC-I on validating various requirements before funding can be considered for a specific requirements. These restrictions are not typically placed on units in the States and are intended to ensure that only the most critical requirements are funded. The current supplemental funding is not as plentiful as it was early on in Operation Iraqi Freedom and the enormous contracts generated to sustain operations have continued to grow in both size and number as combat services support declines and contract support increases. There are many opportunities for comptrollers in a deployed joint theater. While there are differences in the tools and skill sets that the four services brings to the fight, these differences are strengths, not weaknesses. All services learn from each other when brought together to support the deployed warfighter. We truly operate in the “purple” environment. LTC Stokes is currently serving as the Chief, Execution Division, Comptroller Office, Multinational Corps – Iraq.
Bag Drag to Baghdad The journey started from Tucson Arizona at 0445, Monday, 10 Oct 05 (Columbus Day) from my apartment when my section chief picked me up. The first bag drag, hereafter identified as BD, was to his vehicle then off we went to the Davis-Monthan AFB Security Forces Armory to pick up my assigned M-9. From there he took me to the airport for a second BD to the check-in counter. I was pleased with the light load (two A-4 bags, two suitcases and one carry-on) for a six month deployment and only cost $160 in excess baggage. I have been deployed several times before and was proud of my packing prowess distributing the weight evenly among each bag. My trip on day one was to BWI (Baltimore Washington International) airport where I had another BD to the hotel shuttle bus. The final BD for the day was executed at the Airport Sheraton where I was going to spend the night bringing the count to 4 BDs in the first day. I started questioning my judgment of what is actually needed for deployment because my bags didn’t seem light anymore and I accepted the porter’s help. On day two I reported to BWI at 1800 hours (BD to shuttle) for a 2200 hour departure (BD to check-in). This leg of the trip took 18.5 hours with short stops at Ramstein, Germany and the Kingdom of Bahrain before landing at Al Udeid AB, Qatar late on 12 Oct. Once at Al Udeid a massive BD ensued as we moved 1,200 green bags from the aircraft into a nearby field. Once the bags were ready, we were released to find our own bags like we were early settlers of the West staking our land claims. Luckily I had prior knowledge of this event and had marked my luggage conspicuously. They were easy to find; however, I had more pieces than when I started. Note to self: Do not bring luggage with wheels because the roller apparatus will get torn from the bag. The next BD (#8) was at 0200 hrs to move the heavy bags from the field to an outside luggage hold area. We were given 10 minutes to go through our bags and pack an overnight bag to keep with us while we waited for transport into Iraq. Note 2 to self: Bring penlight when deploying—cigarette lighter burns fingers after a while. The “overnight” stay lasted 48 hours; however, I didn’t mind wearing the same clothes for two days if it meant I didn’t have to move my overweight bags again. I am seriously rethinking having those beers while packing. In the evening of the fourth day we were loaded onto a bus and traveled back to the airfield. Once there we again had to locate our bags, drag them to the pallet and strap them on. We were then issued 20 additional pounds of Individual Body Armor to put on and after a long wait we were herded to a C-130 cargo plane and squeezed in as if trying for inclusion into the Guinness Book of World Records. The two heaping pallets of bags were loaded in the back of the aircraft and we rolled down the airfield at 0310 hours. The mission landed at Baghdad International Airport early on the morning of day five to the sounds of bombs exploding in the distance. We were all lined up based on destination and instructed to find our bags from the pallets and drag them the distance of a football field to a bus stop. Each of my bags now weighs 50 pounds so I could only carry two at a time. At the bus stop we were instructed to find the appropriate bus, once found another BD was required. The bus brought us to Camp Stryker where we unloaded and dragged the bags to the side of a building to wait 16 hours for an armored bus (Rhino) convoy to take us to our new home in the International Zone (IZ). While waiting I used the time to repack, throw away a piece of luggage that looked like it had been through a wood chipper and cussed the idiot who packed my bags. BD #13 of the trip was to load the flatbed truck that followed the Rhino into the IZ. The convoy arrived in the IZ at 0430 in the morning of the sixth day of travel and a complimentary BD was accomplished. It was then that the wheels fell off my other suitcase becoming the second casualty of the trip. We loaded our bags from the flatbed to another truck that brought us to a temporary tent that I affectionately called “the crack house.” Finally I would be moving my bags for the last time. I joyfully dropped the gear near one of only two empty beds out of 50 and headed out for breakfast. It had been decided that at 0800 we would go to Phoenix Base to quickly in-process so there was no point in sleeping yet. After breakfast I was headed to the nearby latrine trailer when insurgents showed their appreciation over the ratification of the new Iraqi Constitution by lobbing two mortars into the IZ. The mortars landed 100 meters from my location—the ensuing pucker factor caused mission failure… At Phoenix Base, the “quick” in-processing lasted 6 hours after which I was less than happy to receive a permanent home at the Riverside Manor—that only meant one thing. So I returned to the crack house to move my bags that now weigh 100 pounds each, one at a time, the distance of two football fields around Sadaam’s old palace grounds to a waiting truck. I now understand why they didn’t issue me ammo before the end of the trip… Once in Riverside I had to make one last bag drag into the containerized housing unit I currently call home (yes, I am trailer trash). The first order of business was to unpack and deliver pieces of suitcase to the dumpster. Completion of the journey took 6.5 days, 17 bag drags, two suitcase disasters and one scary moment. Toward the end of the journey I was awake and in the same uniform for 50 hours which probably wasn’t pleasant for anyone around me. That was three months ago. For 90 days I’ve lived in less than desirable conditions, heard small arms fire nearly every day and the occasional mortar or vehicle borne improvised explosive devices that have shook the walls around me. Scary stuff but nothing compared to the thing I dread most—the return trip. That fear hasn’t stopped me from counting down the days with great anticipation because this time I will be returning to the United States which I am most thankful to call home. No matter how painful, I look forward to those bag-drags and will be sporting a smile each step of the way.
Deployed FM Having been blessed with the opportunity to command two Expeditionary Comptroller units, I felt compelled to write down a few things I learned along the way that may help those of you called to serve as a deployed comptroller. I started out my CENTCOM time commanding the 363d Expeditionary Comptroller Flight at Prince Sultan Air Base (PSAB), Kingdom of Saudi Arabia. I had the privilege of commanding that unit for three months as we stood down operations at PSAB and moved shop to Qatar. It was an amazing experience closing up the books for an installation that had been open for several years. With the PSAB job wrapped up, I boarded a C-130 on my birthday and flew into Al Udeid Air Base, Qatar. I took command of the 379th Expeditionary Comptroller Squadron there for nine months as we transitioned the squadron and the base to steady state operations. During the course of my year in the desert, I had the honor of meeting over 65 of the most professional Financial Management enlisted members I have ever seen. Seeing your entire squadron swap out five times in the course of a year is a challenge I will save for another column. I quickly realized that I was in a unique position to mentor and lead men and women from across eight Major Commands to include the Air Force Reserve and the Air National Guard. Understanding the impact a deployed comptroller can have, I felt compelled to share these four points with you to better prepare you for your time whether serving in a permanent party status like myself or as a Comptroller serving in an AEF rotation. 1. Set the standards for performance and share them with your team early: One of the challenges faced by a deployed commander is that the troops you command will more than likely not be from your home unit. Make sure you arrive with your expectations and standards written out and clearly defined. You cannot assume everyone you get will operate under the same rules you do at home. I found that having them written out not only prevented me from missing something important but allowed me to give everyone the same message regardless of when they arrived in theater. Remember you are serving in a combat zone and must establish the rules to ensure the mission gets accomplished and to make sure everyone gets home alive. Do not forget that you are going to have members from the Air National Guard and Air Force Reserve that come from different cultures than the active duty force. Help your folks succeed by giving them the rules of engagement. 2. Make sure you superintendent knows what you expect them to do: It is very likely that your stateside superintendent will not be traveling to the AOR with you. It is even possible that the ranking SNCO in your deployed unit will not have served as a superintendent yet. Take the time before you get to the AOR to write out what you expectations are. Again keep in mind you are in a combat zone and the lives of your troops could be at stake. The jobs your superintendent will need to do are going to be different from a home station Chief. A few of these to consider are lodging accommodations, chemical gear storage/training/use, weapons issue, scheduling troops to serve as funds escorts and of course morale issues. 3. Establish the fact that you are the commander and leader: You are in a unique position as a deployed commander in that you may find yourself leading your personnel in a hostile situation. What are some of the ways you can establish yourself as their combat zone commander? Meet them at the terminal when they arrive in country. Please make sure you are in uniform, this is your first impression time with the new troops. You cannot send a stronger message than showing up at 0300 hours in uniform to meet your folks when they arrive. It establishes you as the commander, and most importantly shows them you care enough about them to be there. Never being out of uniform is another way. You are their commander and they need to see you as such. Sure gym clothes are fine going and coming to work out but other than that be the officer, and be in uniform. Probably the most important way to establish yourself as the commander and leader of your deployed troops is to take care of them. Remember you are the first and last line of defense to getting things that your troops need. Do what it takes to take care of them. There is no better way to build trust and respect than to genuinely care for the people under your command. 4. Do not forget to have fun: My year as a commander in the desert was by far the best year of my almost 14 years serving in our great Air Force. The mission is important, but have fun along the way. You and your troops are going to work grueling hours, they will need time to relax and need constructive ways to stay busy in their limited off time. Squadron functions, exercising together, or studying for college CLEP tests together are just a few examples. As a commander think about the impact you can have mentoring and developing the troops working for you. They are a captive audience without the distractions they would normally have at home. To use this time to its fullest, I created and taught an eight-week leadership development course each rotation. he troops learned topics from effective bullet writing to public speaking. The time you spend investing in tomorrow’s Air Force leaders today will be the most rewarding and productive of your career. I guarantee it! 5. I hope these four tips will prove useful as you prepare to command an expeditionary comptroller squadron. If you would like to chat about any of the items I have written look me up on the global address list and I will be more than willing to help. Keep learning, keep leading!
Financial Management for Emergency Response Hurricane Katrina caused catastrophic damage along the coastlines of Louisiana, Mississippi, and Alabama, and Hurricane Rita, which first struck Florida and went on to strike Texas and Louisiana which resulted in the reopening of some of the levee breaches caused by Hurricane Katrina a month earlier, and re-flooded parts of New Orleans. These natural disasters highlighted how city, county, parish, state, and federal emergency response operate, and how it can be improved. Financial management of civil emergency response is only one aspect of this multi-disciplined effort, but clearly a significant one. The U.S. Army Corps of Engineers’ manages funds for civil emergencies and works tirelessly for the victims of those types of events who often times suffer from economic impacts and costs of disaster recovery.
The Corps of Engineers responds to civil emergencies such as Hurricane Katrina swiftly and concisely. Once an emergency occurs, the President directs any, or all, federal agency, with or without reimbursement, to use the authorities and resources granted to it under federal law (including personnel; equipment; supplies, facilities, and managerial; technical; and advisory services) in support of state and local assistance efforts. This direction is found under the provisions of the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42 USC §5121 et seq. Upon the occurrence of an event that results in a presidential major disaster or emergency declaration, funding may be made available from the Federal Emergency Management Agency (FEMA) Disaster Relief Fund. There are 15 Emergency Support Function (ESF) Teams, including the Red Cross, that support FEMA during a disaster. The Department of Defense/U.S. Army Corps of Engineers (DoD/USACE) is the primary agency for providing ESF #3 technical assistance, engineering and construction management resources, and support during response activities. Upon activation of ESF #3 the U.S. Army Corps of Engineers Operations Center (UOC) Headquarters notifies the Assistant Secretary of Defense for Homeland Defense, the Joint Directorate of Military Support, and the Army Operations Center of the activation. Once notified, they provide situation reports to the Army Operations Center and the appropriate combatant command. Resource management support begins upon activation of the UOC or the Emergency Operations Center (EOC). The Corps is divided into eight divisions, one or more of which may be engaged in a particular disaster response. The level of support is dictated by the Corps’ Division Commander. Upon a request from an authorized FEMA official to the appropriate Corps Division representative for USACE disaster assistance, a verbal authorization or written mission assignment authorizing funding to the Corps is sent to the Division Commander. Prior to any natural disaster, the Corps of Engineers closely monitors weather and news reports to prepare its disaster responders. When called, the Corps is trained, pre-positioned and immediately available; however, the Corps’ response is triggered by FEMA request, which is in turn triggered by local and state government request for federal assistance. The bottom line is that the Army Corps of Engineers has to be careful not to get ahead of the FEMA notification. This delay sometimes results in the perception of the "government bureaucracy being disengaged." One of the Corps most critical tools used to respond to civil emergencies is the web portal, ENGLink Interactive (https://englink2.usace.army.mil/). ENGLink Interactive provides the framework to process information for performing command and control of USACE subordinate elements responding to civil and military contingencies. ENGLink has been created with Oracle Developer 2000, Active Hyper Text Markup Language (HTML), and the Corps standard Oracle Database. Over the past decade, the Corps’ ENGLink has progressed from a webpage to a true, multi-purpose internet portal. Personnel data on Corps responders, medical information, official taskers assigning Corps employees to specific missions, FEMA Mission Assignments, Corps PRT members’ office, work and cell telephone numbers, situation reports, After Action Reports, and deployment experiences of specific employees are a few examples of the information that now flows through ENGLINK. Another critical tool the Corps has at its disposal is people. The Corps presently prepares its comptroller careerists to operate effectively during civil emergencies by maintaining the Planning and Response Teams (PRT) with specific technical responsibilities (for example: ice provision, debris removal, roofing, etc.). As with the technical skills needed to mitigate and recover from a disaster, so the Corps also has a team of comptroller careerists (accountants, budget analysts, program analysts, etc.) with specific training to respond on short notice. This team is called the Resource Management Planning and Response Team (RMPRT). Members are recruited from across the Corps’ districts, divisions, and labs on a voluntary basis (with endorsement through their chain of command), and remain members as long as they wish with their supervisor’s approval. RMPRT members receive training consisting of classroom training on the Engineer Pamphlet (EP) 37-1-6 (Resource Management Functional Guide for Civil Emergency Management Program, available at http://www.usace.army.mil/publications/eng-pamphlets/ep37-1-6/toc.htm), on-the-job training, and periodic refresher training. The RMPRT’s training will be brought up to current technology levels within the next few years, as the Corps adapts its classroom training to CD-ROM and online methods. Subsequently, the Corps’ RMPRT training and its primary regulation (EP 37-1-6) are continuously updated to reflect lessons learned from most recent disaster experiences. Because lessons learned play a large part of the Corps ability to react, it only seems appropriate to consider what is being done to improve the Corps’ financial management during emergency response. The answer is two-fold: minimizing financial errors affecting deploying employees and deployment missions and maximizing the overall effectiveness of RMPRT. Minimizing financial errors: As the old saying goes, “An ounce of prevention is worth a pound of cure.” Obviously, financial errors can occur for a number of reasons. Individuals processing FEMA disaster funds (mission assignments) may not be familiar with the process; employees deploy prior to receiving an official ENGLINK tasker through the Emergency Operations Center and appropriate funding; or assignments for individual employees deployed on an official tasker/mission are changed without informing the financial managers responsible for issuing the funds. In any mission, changes are bound to occur. In disaster response it is necessary for commanders to see and asses an area; therefore, they are unaware of what is needed until they are on the ground – their initial concepts of operation may change radically and, as we saw with the response to Hurricane Katrina and subsequent levee breeching and flooding, change frequently. We cannot and should not stop changes from occurring. We can, however, work with our local EOC, our local Civilian Personnel Advisory Center (CPAC), and our local supervisors to minimize the affects of these changes to our financial records, and to the paychecks of those employees who deploy during emergencies. Another aspect to minimizing financial errors is in regards to the flow of funds. Comptroller careerists throughout the Corps of Engineers are required to shift often on short notice to more routine assignments – and appropriations with which they may be more familiar – to disaster response and the FEMA appropriation. A Corps of Engineers budget analyst in New York District can find themselves accepting and loading funds to the database for New Orleans District, this is known as automation and it facilitates virtual teaming. When individuals entering funds in the Corps of Engineers Financial Management System (CEFMS) do not have a working knowledge of the various types of FEMA disaster relief funds (pre-declaration, emergency declaration, post-declaration) or the Corps authorities during a disaster, errors are likely to occur. The Corps’ staff has to be familiar or know how to read FEMA mission assignments (which is the funding authorization document to the Corps). They must also know how FEMA Mission Assignments are issued (i.e., each is unique to an event/state and it could be national or regional, etc.). The Corps of Engineers maximizes overall effectiveness of RMPRT by recognizing the enormous benefits the nation derives from the present RMPRT and its many members, but also concedes there is clearly always room to improve. The authors suggest consideration of the following: - Apply lessons learned from the Corps technical Planning and Response Teams (PRTs), such as the Debris PRT, Water PRT, Logistics PRT, etc, to support skills such as resource management. These technical PRTs train and deploy as singular, cohesive units. The individual PRT members know one another and one another’s skills. Team spirit and trust among team members – necessary for any effective working group – is all that more important when the team must respond during emergency field conditions. However, at present, each support function in the Corps trains its emergency responders in single-function teams (i.e., personnel specialists train with other personnel specialists; financial managers train with other financial managers). Each deploys its emergency responders individually. A budget analyst who has trained with the Corps’ RMPRT may never deploy with other RMPRT members, and does not cross-train with members of other support functions that interact with, and affect, financial emergency response (such as acquisition or logistics). Just as technical engineering response teams train and deploy together, so to should the Corps of Engineers support functions. Every disaster requires a cadre of support skills – finance, acquisition, logistics, personnel, safety, public affairs, etc. The Corps could develop emergency support skill teams that train and deploy as cohesive units. This would improve team performance and liaison among these inter-dependent support services. - Increase “soft skills.” RMPRT training should consider an increased emphasis on personal communication skills and team development. Natural disasters can fray nerves of even the most seasoned emergency responder. Interpersonal and team skills such as the ability to communicate, listen, de-conflict information, dispel rumors, and build personal alliances are of equal importance to knowing how to read a FEMA mission assignment. - Use the relatively small cadre of deployment-experienced comptroller careerists as “force multipliers”. Nothing conveys the urgency of this function and the need for commitment as well as a live role model. No classroom training can take the place of field experience. - Have this cadre actively recruit new members to the RMPRT. - Have this cadre quantify levels of deployment preparedness. With this quantification, RMPRT can target recruitment and training to specific skills (such as the ability to accept FEMA funds correctly, to distribute funds to other districts, to set up a financial work item, commit/obligate funds, and certify funds). RMPRT members can be graded according to skill and experience level for deployments. More experienced members can be teamed with less experienced members to actively mentor during training and actual deployments. - Have this cadre develop personnel incentives for volunteering for deployment and for maintaining a level of preparedness. - Have this cadre develop “train the trainer” modules to supplement formal RMPRT training. - Through these efforts, shift deployment knowledge and skills from peripheral to core comptroller skills and expand the cadre of comptroller careerists with field experience in natural disaster response. Encourage comptroller supervisors to require deployment training, and encourage employees to include deployment training in their Individual Development Plans (IDPs). - Finally, elevate membership in the Corps’ RMPRT to a level of prestige. The RMPRT should be known as a cadre of “the best and brightest.” In closing, it has been said that experience is a wonderful teacher because it helps you to recognize a mistake the next time you make it. Our goal is to reduce those numbers. If you are a member of, or retiree from, the Corps of Engineers and this article has piqued your interest in learning more about emergency response, check out the multitude of information available to all Corps employees through ENGLink. Also, consider volunteering for membership in the RMPRT – simply contact your district or division Resource Management Officer.
12 September 2004 12 or 13 mortar rounds hit just after midnight…all within about 30 seconds. I pulled my body armor over me and went back to sleep, just like most nights. Everything was quiet after that, so I woke up and headed to the palace about 0530. As soon as I sat down, I heard several big explosions. Two minutes later the sirens started and Giant Voice came on telling everyone to take cover. I put my body armor back on and went to the palace basement. I’d already done this many, many times, so it was no big deal. After several more big explosions, Giant Voice came on again saying to evacuate the south and middle sections of the palace and for everyone to move to the north wing. As one of the Marine guards ran past he told me that a FROG rocket (Brazilian made, about 13 ft long) had hit just outside the south wing. As soon as the “all clear” sounded an hour or so later, I ran to the south wing to take a look. I had just made it outside when the explosions started again. It was a long way back to the palace entrance, so I took cover under the overhang at the south end and waited. That’s when the helicopters started zooming overhead at about 100 ft. Lots of smoke was boiling up over on Haifa Street and I could hear a tremendous amount of small arms fire. The HUMVEEs started flying in that direction with the Army guys yelling at everyone to get out of the way. When the helicopters started firing, that pretty much ended things and all was quiet. We got word later that while all of this was going on, a guy in a VBIED had crashed the barrier at Entry Control Point #2. The soldiers at the gate engaged him from behind the barriers and were able to detonate the bomb by small arms fire…fortunately he was within the T-walls and that kept the explosion isolated. No one was hurt, except the driver of course. He had a partner in another VBIED about a minute behind him. He didn’t like the results of the first attempt, so he tried to back up and get away, but got caught in the razor wire…must have got it wrapped around his axle in some way. He jumped out and abandoned his car all together. The EOD folks were able to defuse the multiple 155mm shells inside. The terrorist launched a total of 22 FROG rockets at the Green Zone that morning, plus dozens of mortar rounds, and a couple of VBIEDs….it’s amazing that only 5 people were killed and that none of those were U.S. military. You would think that days like this one would make me not enjoy my deployment, but you’d be wrong. It was the best job I ever had. I woke up each morning and knew that everything I did that day would make a difference in peoples’ lives. I was proud to be doing what I was doing and excited to be where I was. I’m sure you would feel the same way.
After Action Report, Al Taji, Iraq Contemplating what I should write has been difficult. I’m a true fisherman and hunter… each time I tell the stories, they just grow. The time when they hit our convoy with a hand grenade will probably be something just a little less than the atomic bomb when I’ve told it several times. So here goes for a Reader’s Digest version of my tour to Iraq Prior to deploying to Iraq, I was sent TDY to Fort A.P. Hill, Virginia for convoy training. They train you on all aspects of Convoy and the opportunity of live fire. For an Air Force Finance guy…that was the highlight of the trip. We shot everything from M-16, M9, M240, M249, 50Cal, etc. The Army actually uses pop up targets. he first time I went to the range to shoot at pop up targets, I was totally surprised. I tried to scream that the targets were moving and even tried to explain to the Range Supervisor that the targets don’t move in the Air Force, they just give us a little target to shoot and I can qualify for expert. NOT HERE. He explained that the enemy usually moves and so do OUR targets. I could see him roll his eyes and think silly thoughts about the Air Force Finance guy! I did tell him that I’ll bet our Security Forces and PJs can shoot those moving targets! Well… I passed the qualification for shooting at moving targets but I told him it was not fair that I didn’t qualify for expert. No one told me that 300 meters is really, really, far away. Then they only give you a couple of seconds to shoot it. It takes a couple of seconds just to see the target let alone shoot it. During the training, they took us out into the middle of the woods at midnight and told us to find our way out. It was a great time working with a compass and maps. Of course, if you just happen to have a GPS system with you… that’s an added bonus. We had a young captain that we called Captain Gadget. He had everything that was electronic and mobile, as luck would have it he had his own GPS system. We found that we could find our way out of the woods with little effort. Only in the Air Force… “Using ingenuity.” A lot of the Air Force complained about the training because of the wasted time. I was enjoying the freezing barracks, lack of hot water, running in snow and ice. The Army’s training theme is, “If it ain’t raining, ya ain’t training!” How do you tell an Army guy that we usually go to a hotel for our TDYs! A lot of the folks were having remote control withdrawals. I had brought my quilt, pillows, sheets, mattress, etc. They looked at my set up and then they looked at what they had… a cot, sleeping bag and the word was out. The Army folks had to come and look at my set up and laughed, ”You are truly an Air Force guy aren’t you?” I told them it may be that my ASVAB test scores were higher. They didn’t think that was as funny. I didn’t mind the training except for the wasted time. I thought the information was valuable though. Since the last time I was in Iraq, I had no clue of what to do on a convoy and our convoy was attacked. This time I felt more prepared and never traveled without my M-16. When you finally get to the AOR, you first stop is Camp Buerhing, Kuwait for additional Convoy training. They send you out in the desert for three days for hard core Convoy training. You sleep anywhere you can find. It was here I got pneumonia. The desert is very cold in the winter and running around with your full battle gear takes a toll on your lungs. They even sent me for a night in the hospital. After being stuck with needles and young Navy and Army medics trying to put IVs in me…. I realized it was safer to be in Iraq than in the hospital. I fled the hospital the following day and moved forward with the team to Iraq. I was so glad to finally move up to Iraq. When we arrived at Al Taji Iraq, the 980th Army unit was still on Tomahawk Compound. Let me explain Tomahawk Compound on Al Taji. It was a mud bowl that had some buildings where the engineering units would park all of their heavy equipment and also a place for them to camp. The RED HORSE did not bring a finance kit so all I had was just the lap top I brought. I had asked prior to departing if I needed to bring anything with me; I was told that the unit would have everything I need. WRONG! We had no supplies, no communication lines, no internet, no phones, no printers, no copiers, no fax, no scanners, you get the picture. We didn’t even have an office or chair to sit on. We ask the commander for a little office off of the Headquarters Building and they told us it was taken. So I told him I would work out of my Room with four other folks. He finally got us a room to have a Finance Office. We found two desks and chairs and that was the finance office. We had to use the old Army requisition process, called the “midnight requisition.” Meaning we left late one night and found them and took them. I really felt bad for the folks who lost their authorized requirement for chairs and desk but finance had to open up for business. I had no way of contacting my family or anyone else to let them know that I was safe and secure in Iraq. RED HORSE finally found their Satellite phones and I was able to contact my family to let them know I was in Iraq. The Army was helpful, they gave us some old buildings to bed down in and some cots. Since we had our own sleeping bags, we were set for bedding (Of course… I had my quilt, pillow, sheets, etc with me.) We were sleeping in barrack rooms until we finished the rooms. The Iraqi contractor working on the buildings was a super individual to work with but then all of a sudden they didn’t show up one day. Apparently the day before, he was leaving the base with his crew and the insurgents stopped him out front of the base. They took him in front of all of his men and hacked off his head. Then they told the crew that this would happen to them if they worked for the Americans anymore. No one showed up the following day. Our CE folks continued the project until it was complete. The RED HORSE folks kicked in and finished our Dorm Rooms, the toilets and shower rooms. We were walking half a mile to go take a shower. It was the rainy season and so we would walk to and from the shower in mud. I would have to use baby wipes and hand sanitizer to clean my feet after my shower. As we walked to work, our boots would weigh 100 pounds because the mud stuck to your boots. Great stuff! The next thing….. MONEY. I had no Air Force or Army money. I was told that we worked for the Army and so they were going to be the ones supporting us. I finally contacted CENTAF folks and asked for help. Lt Col Jones and MSgt Henderson saved me. They worked the issues and I was able to get some Air Force money to help establish the Air Force compound and get some tools for the RED HORSE folks. All of the tools never showed up and so we were trying to do the projects with borrowed tools from the Army. They told the RED HORSE folks that they should have brought their tools over with them. We told them that they are in CONDEXs somewhere between Ohio and here. We also started to buy printers, scanners, etc to open the office. I had the COMBAT disk from our ORE training and had the forms and paperwork needed. I also had my old deployment files and so I began Finance at Al Taji. We opened up a check cashing and full finance service. We didn’t have internet yet, but we could start doing the other stuff and the snail mail system. Problem… everything was sent by convoy everywhere. We had our mail blown up on several occasions. I have a letter with the charred marks as a reminder of what our convoys go through. It took me over a month to finally get all of the letters and permission to open up Finance for the Army to make payments for our contracts for RED HORSE. The Army does not understand the RED HORSE concept of bringing your own Finance and Contracting Offices. Lots of convincing and politicking to get them to OK our finance office. I then traveled to Baghdad to get my first draw. Our first project was only $14.7 million. They had a tough time letting their cash leave their finance office. The local finance loved it because they were swamped with all of the RED HORSE payments. We moved forward. To pay the vendors, we usually have them come to our office or we go to them. I’ve had several of our vendors killed so we take great care in protecting their identity. They usually never mark their invoices until we meet with them. The ones with business cards unusually disappear first. When they come in to our office for payment, we secure the door and keep the transactions private. We also make sure we do it in the morning so they will not be followed at night. If we go outside the gate, then we are fully armed and we put the money in a package so no one knows what we are handing them. We have them try to sign the 1034 unless we compromise them. We never count money in front of them when they are away from our office. If we did, they would last about 10 minutes before they would disappear. I’ve traveled on more Convoy’s than any other member of our unit. I have had to travel to Baghdad and LSA Anaconda, attached to Balad AB, once a week. Then I would travel by Black Hawk to our different locations to pay our vendors and do turn-ins for the Army. When I first arrived at Taji, I would train with the Army convoy folks. The Army has a unique way of doing convoy. If they get hit, they go hunting the individual who pulled the trigger. The things I saw will not be in this report nor any other report. But I know what a 50 cal can do to an insurgent’s head and body. That’s all I’ll say about that. I’ve been hit by Grenades, IED (Improvised Explosive Device), RPGs and Small Arms Fire. And yes… I’ve used my M-16. That’s enough of that too. I’ve taken Small Arms fire while flying in the Black Hawk as well. When traveling with Convoy, I’ve had the pleasure of being the Truck Commander because of the experience I’ve had with Convoys. I try not to be the TC, because I usually carry large sums of money. While traveling, you are on constant look out for IEDs and anyone who may want to attack you. You’re always on watch. Even late at night, you’re always on the watch. I usually always rode in the lead vehicle and it was our job to make sure the road was clear and free from IEDs. The Assistant Convoy Commander would call out things to watch out for. Some trips could be 30 minutes, while others would go 8 to 10 hours. If you spot an IED, we would stop and run security until EOD would show up. If we were in a fire fight, you usually would take all day. If we go after the trigger man, then it’s an all out search of the area and houses. When you ride behind the Army… you can expect to stop and it be a long time. I’ve seen where a tank and a HUMMVE with 50 cal light up 7 insurgents with the tracer rounds creating a fire. Some nights would be an all nighter because of trying to locate the individual who pulled the trigger for the IED. Our base on average got hit by mortar or rocket rounds at least twice to three times a week. In our unit, we have 5 Purple Heart recipients. The first round you usually don’t hear and it is the one that usually takes the life. The second one you better be hugging the ground or in a bunker. One round hit and wounded two of my folks in my Dorm. I hit the ground but the others went running. Never run… just hit the ground and then run to the bunker when you know there is a break in the blast. We had another one hit next to our Dorm again and I told the two that received purple hearts from the previous attack to move from my Dorm, they were bringing me bad luck. (Of course, I was kidding… but it wasn’t funny!) We found that using vendors outside of Iraq helped bring the cost of the goods down. When I first got here, the prices were outrageous. I gave the Contracting Officer and the Army folks the names of other vendors I had used in UAE and Qatar. Once we started using them, the locals realized they were losing business because the others were cheaper. The prices dropped by almost 75%. We still tried to use the locals to help build their business, but their prices were much better because of the competition. The draw back is that I would have to travel to the UAE and Qatar to make payments because we only dealt with US Dollars and it was in cash since we didn’t have a bank account. Traveling through out the AOR with full body armor and weapons was a weight loss program. You sweat it all off! I also had the great opportunity of meeting with the President of the Credit Bank of Iraq and dealing with the Central Bank of Iraq, the Minister of Finance for Iraq, and the Treasury Department for Iraq. We discussed putting the Iraqi Dinar back into the economy by paying our vendors with the local currency. Crrently, the Dinar is not being traded on the International Market and can not be used outside of Iraq. The Dinar is almost useless for paying vendors because of its value. We invited the Army and Marine representatives. We found that the confidence in the Iraqi Dinar is low. Even the Bank President had very little confidence in the money. He said the US Dollar is the only money valued in Iraq. Even the restaurants are using US Dollar prices on their menus. He even told us his son is paid in Dinars from his job and then he goes back to the bank to trade them into US Dollars. One great thing that happened concerning the Air Force was moving to the Central Processing System. It makes it so much easier to do your turn in through the internet. That was brilliant. CENTAF sent me the Paperless Check Conversion process but we couldn’t use it because of the lack of secured internet system for our compound. Once they get the secured system and hook up to the main base LAN, life will be much easier. By this time we now have a copier, two printers and a digital scanner. With the great support of the folks in Baghdad International Airport (BIAP finance) of MSgt Mike Pruitt and SMSgt Josie King; I was able to acquire office supplies. Without their support, it would have been a mess. Also, MSgt John Stewart and TSgt Kevin Broadnax down there in Al Udeid RED HORSE would go and buy some equipment and supplies that we couldn’t get up here. They would put it on military air and have it up to us quickly. I would either fly to Baghdad and pick it up or it would be brought back by Convoy. Our vendors from outside the area sometimes had major problems in shipping. They would use FEDEX, but once it got to Baghdad, it would rely on Convoy. Many of the supplies were either blown up or disappeared in the process. Even our BX has major problems in receiving their items because of the Convoy problem. We would wait for months at a time. We were waiting 6 months for PT clothes to finally show up at the BX. Transportation was our biggest problem. You would have to double the price of your order so you could pay for the transportation cost. Many of our items that we bought were cheaper than the cost of shipping it. The drivers put their lives on the line to transport your stuff so you paid that cost. It was a challenge trying to set up a bare base finance from nothing. Not only bare base set up, but working with the Army to establish a finance office with them. We also had a small Field Ordering Officer (FOO) Account from the Army to pay for miscellaneous supplies under $2500. You would have an appointment letter from the Army and attend a training class to be able to use a SF 44a to purchase items. You had an appointed contracting official that would do the 44 and we would pay the bill. Typically, your Supply Chief was the Field Ordering Officer. The Contracting Officer for the RED HORSE did not have SF 44a authority. Only FOO agents had that authority and so we depended on them for those small purchases. COs were only used for contracts. That became my nightmare because we didn’t understand the two separate finance offices for the Army. The Army has an RM or Comptrollers Office and then the Finance Office. The Comptroller’s Office certifies the funds and controls the Budgets. The Finance Office controls the funds (Disbursements). We have the same thing but in the same building. Army has them in separate buildings, locations and sometimes they don’t even talk to each other. Finance Officer’s are usually higher in rank than Comptroller’s because they control all the funds in theater. The Army has five separate ADSNs in the Iraqi Theater. You just had to figure out where the main office is and which comptroller is for that separate ADSN. We had one hiccup in the system. We had our PR&C (Army Form 3953 – Purchase Request and Commitment) that was prepared for FOO and for spending. (It’s like our Form 9 but has everything concerning a project on it.) We submitted the PR&C to finance and they gave us the money. Only problem, the RM did not certify the funds and so we went and spent the money and didn’t know that the PR&C had to be sent from the Comptroller first before finance. But hey!!! They gave me the money!!!! This is how the process actually works. You prepare your Army Form 3953 with all required signatures from your S4 (Logistics Officer) and then your Commander (Must be an O-6 and above.) We would then send it to the Installation Property Book Officer (IPBO) and they would sign the document. Then it goes to contracting for approval. Once they sign the document and the Finance and Contracting Officers’ had been trained, we sent the document to the Resource Management office for the Army. They certify the funding and then sign and put the fund citation onto the document. We then go to the Finance Office for the funds. They complete a 1080 and advance us the funds. After we spend the funds, we turn in all SF 44s and receipts. We also have to have a letter from the Commander approving the buys. The Army’s method of finance is totally different from the Air Force. They also use the Deployed Disbursing System in the field. I like that capability so they have daily accountability. We would go get the total amount of the certified funds on the PR&C and put into our vault. This would allow the vendors to come to us for payment of the contracts or we could go to them. Each week, we would turn in our Payment vouchers and request additional funds for new PR&Cs. The Army would require a spend plan and then BOMs would be accomplished and PR&Cs created for those BOMS. Then it went before a review board to see which projects would be approved and what items could be purchased. This was the Joint Acquisition Review Board (JARB). Once the Spend Plan was approved by the JARB (very unlikely when there was no money,) they would sign the PR&C and send to the RM for certifying funds. Then we would get the certified PR&C to take to finance to acquire the funding to pay the vendors. We would prepare the SF 1034 for payments and make sure we had the invoice, receiving report, and contract and then we would attach the PR&C that funded the project. Not a whole lot of difference in that process from the Air Force. It’s been an incredible experience serving as a Combat Finance Troop. I’ve had grenades thrown at us, IEDs going off, Small Arms Fire, Large Arms fire, RPGs shot at us. I’ve had mortar rounds hit around me and rockets blow up near me. I’ve been spit at, yelled at, screamed at, kissed, hugged, thanked, cussed, and loved. I’ve seen the horror of war and what weapons of war can do to a human body and to a home. I’ve been next to a tank blowing up things and I’ve personally shot at another human being (who of course was shooting at me first!!!!) The hardest time that hit me was when I went to pay a vendor his payment because I knew he was fleeing the country and met the man’s wife packing; she was in tears and scared. They had killed her husband before I could get there and she was fleeing for her life. I really liked working with this local Iraqi but it brought the war to an all time personal level. As I said before, I’ve lost a lot of our vendor/contractors that I dealt with. I’ve seen them get paid for their services and flee the country. We may not be hit like Balad everyday, but the insurgents are so powerful here. They are ruthless killers and terrorize our locals. The local Iraqi Commander, Col Abbas Fadhhil, thanked us for being here. He said without us being here, they could not succeed. He couldn’t understand why we would do this for them. We did not know them but we would risk our lives so they could one day have the freedoms like others. He said they lived in fear everyday. He told us that just the freedom they have experienced in just the last three years was worth the price they have paid in lives so far. They know it’s going to be a long process because there are those who still believe in controlling the lives of the people of Iraq. That is where the money is and people love the power. He continually thanked us for being here and asked to please stay and help them win this war. He knows that his people have to step up and make the difference, but appreciates our help and support. He also understands that they are slowly being destroyed from within. That was his first priority, to stop the destruction from within his own ranks. I would go back on a moments notice for these people. I have grown to love them, wept with them and stood next to them. I’ve help carry a wounded Iraqi, he had nearly blown off his leg. He was fighting the same enemy as we were and could have lost his life if we had not patched him up and got him on a medivac helicopter. It’s been a difficult and long process and I don’t see an end. There are a lot of cultural differences that will make it difficult for peace. We will be here a long time. If we leave now, civil war would break out the next day and the country would dive into total chaos. Of course, that’s just my own opinion. We are here to accomplish a mission and I’ve always enjoyed working for the RED HORSE. We’ve been under several Army commands but the latest one was the best for getting along with our brothers and sisters in arms. They have a whole different method of doing business and so you have to learn their language, ways, and even how their military structure works. The Army is impressed that the Air Force is finally stepping up to do some of the grunt work that they have been doing. It is a learning process and sometimes frustrating. We like to get the job done and they take their time. We are in an expeditionary mood and they are in the sustainment mood. Again… only my opinion. Talking to some of the Army Finance Officers, they like the way the Air Force does finance. We stream line the process and make it easier, we grow our own finance folks and we have in-depth knowledge of finance procedures. The Army transfers from Infantry and other career fields and so their knowledge is limited. The Army controls the theater funding but it is tedious, cumbersome and could be streamlined to make it a more manageable process. Not sure if they like it that way… but their comment is…. “It’s how we’ve always done business.” I did not go into some of the individual events and experiences. That I will save so I can share it with individual groups and enjoy embellishing them. Just me!!!! Other experiences that I had will never be told. They need to stay deep inside me. It was a nightmare getting started, but with the help of great Air Force finance folks in CENTAF 9th AF and the CAOC, I couldn’t have accomplished what I did. I know if I start mentioning names I’ll leave someone out. They were my greatest champions for me to be able to accomplish this mission. I’m grateful to the folks at my home finance base. They sacrificed so much so I could have this experience. They have also provided so much to help me get things processed for the Beale folks. The Finance folks at BIAP were awesome. They helped me get all of my supplies to set up a finance office. The finance folks at the individual bases who processed our folk’s vouchers and pay documents. The same folks in Al Udeid who made sure our stuff processed. We did not have a PERSCO when we arrived since we worked for the Army. I sent all of the names to the finance folks at Al Udeid and they got all of our entitlement started for us. We had CE folks from all over come together to form this unit. We received permission and activated the 557th Expeditionary RED HORSE Squadron. It was first created in Vietnam when they supported the Army. It was a historic and special moment when we activated the squadron again for this war. I’ll never forget this experience. Thanks to all of our Finance folks throughout the world and the important role you play in “Financing the Fight. Hooooo ahhhhhhhh (Sorry… that little Army in me came out!) SMSgt Robert M. Davis, Paying Agent/Comptroller 577th RED HORSE, 30th Engineering Brigade, 20th Engineering Brigade, 3rd Infantry Division
Contractor Employees in the Federal Workplace “Doing more with less!” This is the mantra of each elected administration. To achieve this stated goal often compels an administration to reduce the number of government employees by whatever means is most readily available. Hiring freezes, buy-outs, competitive sourcing, etc., have all made their rounds, and each has enjoyed a measure of success. Yet at the same time that the number of civil servants has declined, the duties performed by the remaining government employees have usually expanded. Moreover, paralleling the decline in the numbers of civil servants has been the steady migration of military personnel back to more traditional military duties. With fewer hands to perform the duties generated by each new law and policy, other personnel sources have arisen to fill the expanding void caused by the disappearance of civil servants and the reassignment of military personnel. These sources are primarily from the private sector—contractor employees in the federal workplace. The number of contractor employees operating in the federal workplace has grown exponentially over the last decade. And this phenomenon has provided exploding employment opportunities for those from the retired rolls in both the civilian and the military communities. No one is surprised today that during one pay period, civil servants or military personnel are serving in mufti or in uniform, and the next pay period they are contractor employees in the federal workplace, often returning to their former positions to perform their identical duties in the same manner as they did before they “retired.” Although nothing seems to have changed by this transition, in fact a tectonic shift has occurred. And what is fundamental to this movement is that the allegiance of the employee has swung from the United States of America to that of a business interest. All military personnel and civil servants swear an oath of allegiance to the United States before they undertake the duties of their position. On the other hand, employees who work for a business give their allegiance to that business—and the primary purpose of a business is to produce a profit. Granted, nothing is inappropriate for a business to seek a profit. That is the primary purpose of a business—to produce a profit—but that goal is far removed from the purposes of our government. Central to this difference is the approach that federal workers must employ with respect to their official duties versus those employees from the private sector whose focused approach is vastly different. Before government employees may act, they must first identify the legal authority for their actions, and they must do this before they take action. It is their oath to the United States that compels this certainty to identify the legal basis for what they do. On the other hand, the employee of a contractor has no such duty; instead, the employee of a contractor must ascertain only that what is undertaken violates no legal prohibition or restriction. The distance between these two approaches is light-years apart. To suppose that there is no real difference, that the distinction between a federal employee and a contractor employee is only marginal, is to suggest that infusing Type B negative blood into a person with Type A positive blood will have no deleterious consequences, when, in fact, it is fatal. Although some types of contractor employees in the federal workplace present no issues to the federal government, many other contractor employees in the federal workplace are cause for concern. Those whose employment activities are of no moment are those performing custodial, clerical, maintenance, food services, and construction work. But those contactor employees who occupy desks next to federal employees, who give orders, directions, and assign tasks to federal employees are, in fact, an issue—just as those contractor employees in the federal workplace whom we direct, control, and supervise are an issue for us. The reason for a lack of concern with respect to the former type of contractor employees is that their performance of contractual duties is of a nonpersonal services nature. Cause for concern with respect to the latter type of contractor employees is that their performance of contractual duties may involve personal services, thus giving rise to personnel, fiscal, and ethics issues. The following statutory references illustrate this.
31 United States Code § 1342. Limitation on voluntary services
31 United States Code § 1349. Adverse personnel actions
31 United States Code § 1350. Criminal penalty As is apparent, Section 1342 has Antideficiency Act (ADA) implications because of 31 United States Code sections 1348 and 1349. A close reading of these two statutory provisions makes it clear that those responsible for acceptance of personal services may be responsible for an ADA violation. To better understand whether a personal services contract may be present, we should consider the Federal Acquisition Regulation (FAR), FAR 37.104, Personal Services Contracts, which provides the following:
(a) A personal services contract is characterized by the employer-employee relationship it creates between the Gov¬ernment and the contractor’s personnel. The Government is normally required to obtain its employees by direct hire under competitive appointment or other procedures required by the civil service laws. Obtaining personal services by contract, rather than by direct hire, circumvents those laws unless Con¬gress has specifically authorized acquisition of the services by contract.
The following descriptive elements should be used as a guide in assessing whether or not a proposed contract is per¬sonal in nature:
Determining the Classification of Individuals Proper classification is important because if the veil of independent contractor status is pierced and an administrative or a judicial determination is made that the contractor employees are, in fact, federal employees, such a determination may allow for these “federal employees” to recover some of the plethora of benefits available to federal employees that had been denied them during the entire period that they were misclassified. Considering the burgeoning numbers of contractor employees in the workplace, the costs to agencies misclassifying contractor employees could be massive. That said, as soon as an employer-employee relationship is established, the employer is required to withhold the appropriate income and employment taxes and to provide certain benefits. In the civilian sector, penalties are imposed in instances where the employer fails to properly withhold such taxes. Before the performance of services begins, federal officers contracting for these services should assess the relationship with the individual providing the services to ensure that individuals hired or contracted to perform these services are properly classified as employees or as independent contractors. A contracting officer’s misclassification could result in substantial problems for both the federal government and the individual. The duty of the federal government is to determine an individual’s status as an employee or an independent contractor. Government Employee—In general, an individual who performs services subject to the federal government’s right to direct and control the work is classified as an employee. The federal government may allow an employee considerable discretion and freedom of action, provided that the federal government has the legal right to direct or control the work. Employee of an Independent Contractor—In general, an individual who performs services for the federal government, but whose employment is actually with an independent contractor, may work in a federal workplace with federal employees, as long as the federal government controls or directs only the results of the work of the employee of an independent contractor, rather than the means and methods of accomplishing those results. Unless otherwise exempt by the law, the federal government is required to withhold certain deductions from the salaries and wages of its employees. Further, the federal government is often required to provide benefits to its employees. If the individual is classified as an employee of an independent contractor, the federal government has no responsibility for withholding income and employment taxes; that duty falls to the independent contractor. However, the federal government is responsible for reporting compensation over $600 paid to individuals who are classified as employees of independent contractors on Form 1099-MISC, Miscellaneous Income to the IRS. In theory, the IRS may assess penalties for misclassification of an individual providing service to the federal government. If an individual is determined by the IRS to be an employee of the federal government instead of an independent contractor, the federal government may be held responsible for the individual’s employment taxes, penalties, and interest assessed for failing to withhold income and employment tax, and a separate misclassification penalty. As provided under IRC section 3509, an employer is liable for 1.5 percent of wages paid if the employer erroneously treats the individual as a non-employee for federal income tax withholding purposes; the penalty increases to 3 percent if no information returns were filed. The department will be responsible for the payment of additional taxes, penalties, and interest assessed. However, liability for federal employment taxes may be relieved under section 530 of the Revenue Act of 1978 (commonly referred to as Section 530 Safe Haven Relief). Section 530 Safe Haven Relief protects employers who have consistently treated workers as independent contractors. The rule provides that an individual who has not been treated as an employee will not be reclassified as an employee if (1) the employer had a reasonable basis for failing to treat the individual as an employee, (2) the employer failed to treat the individual or any individual in a similar position as an employee for payroll tax purposes, and (3) the employer has filed all required federal tax returns, including information returns, in a manner consistent with the individual not being an employee.
Other Determining Factors: Three-Category Approach Therefore, although the twenty common law factors referenced in the following sections are still of importance, another way of analyzing the pertinent factors is to focus on behavioral controls, financial controls, and the relationship between the employer and the individual performing services. These three main categories are described next. Additional detailed information may be found at IRS Publication 1779, Independent Contractor or Employee and at IRS Publication 15-A, Employer’s Supplemental Tax Guide under the “Employee or Independent Contractor?” section.
Behavioral Control
Financial Control
Type of Relationship
Twenty Common Law Factors The following lists four basic questions that capture the essence of the twenty common law factors, which may assist in clarifying the determination of employment status:
If the answer to any of these four questions is Yes, then the individual providing the service in question most likely could be classified as an employee of the federal government. If the answers to all of the four questions are No, an independent contractor relationship may be established. If an individual believes that the federal government has assessed an inappropriate determination, he or she may submit Form SS-8, Determination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding to the IRS. While waiting for the IRS’s determination, (which the IRS notes in the instructions for Form SS-8 that this process takes approximately four months), the individual provider will be paid as an employee. If the IRS determines the correct classification to be an independent contractor, the taxes withheld will be remitted to the individual. The IRS lists the twenty factors in Revenue Ruling 87-41. Each factor’s abbreviated title follows:
Training
Three-Category Approach (Expanded) “Where there is no controlling statute, a worker’s status is determined by applying the common law test, which applies for purposes of FICA, FUTA, Federal income tax withholding, and the Railroad Retirement Tax Act. A worker’s status under the common law test is determined by applying relevant facts that fall into three main categories: behavioral control, financial control, and the type of relationship itself. In each case, it is critical to consider all the facts, as no single fact provides the answer.”
Behavioral Control Instructions—If an individual receives extensive instructions from the federal government on how work is to be done, this suggests that the individual may be an employee of the federal government. Instructions can cover a wide range of topics—for example, how, when, or where to do the work; what tools or equipment to use; what personnel to use to help with the work; and where to acquire supplies and services. If an individual receives less detailed instructions about what should be done, rather than how it should be done, the individual may be an independent contractor. For instance, instructions about time and place may be less important than directions on how the work is performed. Training—If the federal government provides the individual with training about required procedures and methods, this suggests that the federal government wants the work done in a certain way, and the individual may be an employee.
Financial Control Significant Investment—If there is a significant investment in the work, an independent contractor status may exist. While there is no precise dollar test, the investment dollar amount must have some significance. However, a significant investment alone is unnecessary to establish an independent contractor status. Expenses—If the federal government refuses to reimburse the worker for some or all of his or her business expenses, then the worker may be an independent contractor, especially if the unreimbursed business expenses are significant. Opportunity for Profit or Loss—If the individual worker can realize a profit or incur a loss, this suggests that he or she may be in business for him- or herself and that the worker may be an independent contractor.
Relationship of the Parties Employee Benefits—If the individual workers receive benefits, this is an indication that they are employees. If they receive no benefits, however, they could be considered either as federal employees or as employees of an independent contractor. Written Contracts—A written contract may indicate what the individual and the federal government intend. This may be critical, particularly if it is difficult, or impossible, to determine status based on other facts. The following charts identify some of the problems that may arise because of contractor employees working in the federal workplace. In the past, the definition of inherently governmental was strictly applied to a wide-range of federal government activities that demanded performance by federal employees. This definition of inherently governmental has been modified over time, thereby allowing more and more contractor employees into the federal workplace. Taking this perspective to its logical extreme has caused some to suggest that as long as a handful of federal employees remain to make the “final decisions,” every other position in the federal government could be occupied by a contractor employee. Whether that day shall ever dawn, it is certain today that vast numbers of contractor employees now occupy positions once held by federal employees. This association gives rise to many of the ethics and fiscal issues, identified in the following charts, that will continue for as long as federal employees and contractor employees continue their cohabitation.
Inappropriate Conduct by Government Employees/Contractors in the Federal WorkplaceGifts/Bribery/Illegal Gratuities
Post-Government Employment Prohibitions
Personal
Services Contracts and Related Matters
Contractor
Conduct and Government Employee Conduct in General
Awards
Conflicts
of Interest/Appearances of a Conflict of Interest/Organizational Conflicts of
Interest
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