American Society of Military Comptrollers

Treasury issues consolidated financial report

Bob Shue — Fri, 05 Mar 2010 21:41:38 +0000

The Treasury Department released last month the 2009 Financial Report of the U.S. Government. This report, issued each year, provides a comprehensive view of the government’s current financial position. According to the Treasury Department, the federal government’s net operating cost for FY2009 was $1.254 trillion, up about $245 billion from the previous year. Most of the increase was due to higher mandatory payments for Social Security, Medicaid and Medicare. This report not only is a comprehensive listing and display of a broad array of federal government financial data, it is a valuable reference. It includes data and descriptions of statements of Net Cost, Operations and Changes in Net Position, Reconciliations of Net Operating Cost and Unified Budget Deficit, Changes in Cash Balance, and Balance Sheets. Along with this are detailed notes to each of the financial statements. The report also includes a section entitled “A Citizen’s Guide,” which explains the contents of the report in laymen terms.

Executive Order lists DoD order of succession

Bob Shue — Fri, 05 Mar 2010 21:40:20 +0000

The President issued an executive order this week listing the order of succession for the position of Secretary of Defense. This list is periodically updated to reflect the latest legislation or policy changes. The President has the authority to make this determination under the Constitution and the Federal Vacancies Reform Act of 1998. The executive order provides for the succession of officials who would perform the functions and duties of Secretary of Defense should the Secretary die, resign, or become unable to perform those functions and duties. The Deputy Secretary of Defense leads the list, followed in order by the Secretaries of the Army, Navy, and Air Force. Next are the Under Secretaries of Defense, led by the Under Secretary of Defense for Acquisition, Technology, and Logistics. The Under Secretary of Defense (Comptroller) is in the seventh position. Only individuals that are appointed by the President and confirmed by the Senate and are not in an acting capacity can act as Secretary of Defense.

GAO updates long-term fiscal outlook

Bob Shue — Fri, 05 Mar 2010 21:38:36 +0000

The General Accountability Office (GAO) this week issued its latest look at the federal government’s long-term fiscal path. This analysis, first published in 1992, evaluates the results of long-term fiscal simulations, based on GAO assumptions. These simulations show the effects on the trend of federal deficits and debt levels under different assumptions. One simulation extends the Congressional Budget Office (CBO) 10-year baseline assuming that revenue and spending (except for large entitlements programs) remains constant. The second (alternate) simulation allows federal spending to grow with GDP during the first 10 years, does not reduce Medicare physician payments, extends all tax provisions until 2020, indexes the Alternative Minimum Tax (AMT) to inflation through 2020, and then brings revenues back to their historical level. Under both simulations, GAO states that unless policy changes are made, the federal government will experience an unsustainable growth in debt. GAO acknowledges that changes recently enacted (such as PAGO legislation) and being proposed by the Administration and in Congress, along greater economic growth than assumed in the simulations, could produce significant changes in actual fiscal trends.

Services’ senior leaders testify on FY2011 budget

Bob Shue — Fri, 26 Feb 2010 16:40:46 +0000

This week the Military Department Secretaries and Service Chiefs testified before the Armed Services Committees on U.S. military posture and the FY2011 budget. Secretary of the Army, John McHugh and Army Chief of Staff, GEN George Casey told the House and Senate Committees that the budget addresses the Army’s two major challenges—“restoring balance and setting conditions for the future.” To restore balance, the Army will: 1) sustain soldiers and their families; 2) prepare forces for current conflict; 3) reset and rebuild returning units to achieve improved readiness; and 4) transform to meet future challenges. For the future, the witnesses stated, the Army needs a force that is a mix of networked organizations, operates on a rotational cycle, and provides a sustained flow of trained and ready forces operating at a sustainable tempo. Secretary of the Navy, Ray Mabus, Navy Chief of Staff, ADM Gary Roughead, and Commandant of the Marine Corps, GEN James Conway testified that the Navy’s budget supports the QDR priorities to: 1) prevail in today’s wars, 2) prevent and deter conflict; 3) prepare for the future; and 4) enhance the all-volunteer force. Secretary Mabus told the committees that the Navy plan will maintain a commitment to a strong industrial base. The shipbuilding and aviation programs sustain U.S. naval superiority and achieve a balance of capability and affordability. Witnesses stressed that the Navy’s plan is based on four imperatives: 1) care for sailors, marines, civilians and families; 2) give prominence to energy as a national security issue; 3) create acquisition excellence; and 4) optimize unmanned systems. Secretary Michael Donley and Air Force Chief of Staff, GEN Norton Schwartz, appearing before the House Armed Services Committee (HASC), stated that the Air Force’s FY2011 budget request achieves “the right balance between providing capabilities for today’s commitments and posturing for future challenges.” They emphasized that the budget enhances the ability of the Air Force to take care of Airmen and their families. The Air Force budget supports the strategic priorities of the QDR. Witnesses stressed that the Air Force made a determined recapitalization choice to improve existing capabilities where possible and develop new systems when needed. Secretary Donley underscored that this recapitalization strategy will allow the Air Force to keep up with existing and new threats. You can view a video webcast of the hearings on the House and Senate Committee web sites.

Coast Guard Commandant testifies on FY2011 budget

Bob Shue — Fri, 26 Feb 2010 16:39:12 +0000

This week, the Commandant of the U.S. Coast Guard, ADM Thad Allen, testified before the House Subcommittee on Coast Guard and Maritime Transportation on the FY2011 budget. ADM Allen told the subcommittee that the budget invests in “what works, cutting down on redundancy, eliminating spending on ineffective programs, and making improvements across the board.” He stated that the Coast Guard’s highest priority was to continue the acquisition of new ships, aircraft, and infrastructure. He argued that recapitalization of the Coast Guard’s surface, air, and shore assets was a strategic imperative to the Coast Guard and homeland security. ADM Allen noted that the budget will continue to maintain and enhance acquisition, financial management, and marine safety workforces. He underscored the Coast Guard’s commitment to meeting search and rescue standards and pointed to the response in Haiti as a prime example of the Coast Guard’s ability to meet emerging threats and hazards. You can view a video of the hearing on the subcommittee website.