Headquarter, Department of the Army RESOURCE MANAGEMENT "2005 - Serving Today's Army for a Better Tomorrow"

DEPARTMENT OF THE ARMY

ADMINISTRATIVE ASSISTANT TO THE SECRETARY

105 ARMY PENTAGON

WASHINGTON DC 20310-0105

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JDRS-PBD 21 Nov 96

RSG MEMO 97-02

MEMORANDUM FOR PRINCIPAL DEPUTIES OF HEADQUARTERS, DEPARTMENT OF THE ARMY

SUBJECT: HQDA Resource Support Group (RSG) Meeting Minutes

1. The HQDA Operating Agency 22 (OA22) RSG meeting convened on 30 Oct 96; a list of attendees is at encl 1. The RSG was co-chaired by Mr. Joel B. Hudson, Administrative Assistant to the Secretary of the Army and COL Daniel J. Sullivan, Director of Management. The purpose/goals of the RSG follow:

1. Provide information on the Defense Accounting Office consolidation and transfer from St. Louis to Rome, NY.
2. Review the OA22 family funding process and FY96 budget execution.
3. Provide the FY97 funding methodology, milestones and strawman targets.
4. Address miscellaneous resource issues such as American Express responsibilities, the crisis response fund, contingency mission support, and the Defense Civilian Payroll System (DCPS).

2. In opening remarks, Mr. Hudson addressed future funding challenges such as continued funding shortfalls and manpower affordability. He reiterated that Army leadership is committed to supporting mission essential requirements and bills which we have no choice but to fund. Mr. Hudson also addressed the fact that senior Army leadership continues to assess and review all HQDA Redesign issues. Mr. Hudson proposed that the RSG continue with the crisis response fund process as he felt the system worked well in FY96 and highlighted that all crisis response fund issues would continue to be reviewed and decided by all members of the HQDA resource corporate body. Finally, Mr. Hudson spoke briefly about VERA / VSIP; he stated that the Army presently has authority for only VSIP and is working for VERA authority from OSD. He stated that a final decision would be forthcoming regarding a FY97 VERA / VSIP.
3. The RSG briefing was conducted by Mr. Steve Bonta, Director of Rome New York Operating Location (OPLOC); Mrs. Sharon Weaver, Chief, Program and Budget Division, Resource Services-Washington; and Mr. Robert Jaworski, Director, Resource Services-Washington.
4. Mr. Bonta reviewed the consolidation of the Defense Accounting Office-St. Louis to the Rome NY DFAS OPLOC. Effective 1 Feb 97, all OA22 accounting, vendor pay, travel, and disbursing support previously processed at St. Louis will be accomplished at Rome, NY. He provided participants with information on the status of the consolidation and the services / support that the Rome OPLOC will provide. He invited all participants to the 12 Nov 96 information briefing on the consolidation in the Pentagon Auditorium, room 5A1070, from 1300 to 1500 hours.
5. Mrs. Weaver reviewed the family funding process, FY96 execution, FY97 budget process and other issues. Highlights follow:

1. Family Process / Typical Responsibilities of the Family POC / HQDA Resource Process (Charts 4, 5, & 6): The first three charts provided a review of the family funding process in HQDA OA22. Mr. Hudson highlighted the importance of RSG representatives keeping principals focused on potential impacts of Army wide resource decisions at the HQDA OA22 family level. Mrs. Weaver stressed the importance to the RSG process of the family POC being empowered to provide input and make decisions on behalf of the family.
2. FY96 Actual (Chart 7): This chart illustrated that nearly three-fourths of FY96 OA22 HQDA execution was Army open allotments, centrally managed accounts (CMA), and high visibility programs. Mrs. Weaver congratulated HQDA agencies for doing an effective job of prioritizing and addressing funding challenges at the family level throughout FY96.
3. FY97 Family Target (Chart 8): Mrs. Weaver briefly reviewed a notional example of the family funding process. The goal is to provide one annual funding target to family heads to ensure maximum flexibility for each HQDA agency head to execute programs based on agency requirements and priorities. Funding consists of three parts: "Family Operations" funds civilian pay, travel and general operations such as supplies and contracts; "High Visibility Programs" are family level centrally managed programs; "Open Allotments/CMA's" provide functional proponency responsibility. Families have the authority to migrate money between operations and family high visibility programs, but were urged to maintain the funding integrity of high visibility programs. Army open allotment and centrally managed program funds are executed in close coordination with family functionals, the Army Budget Office (ABO) and OA22.
4. Budget Resource Management (Chart 9): The OA22 FY97 current funding profile of $2.5B was depicted in two major funding categories. Category 1 ($1.702M) includes Army open allotments, centrally managed accounts, and family high visibility programs; Category 2 ($797K) includes HQDA and Field Operating Agency (FOA) operational support accounts. The purpose of depicting the OA22 accounts by Category 1 and 2, as highlighted during the RSG, is to demonstrate the extremely small discretionary funding base represented by the non-payroll operational category. Mrs. Weaver noted that all families could expect a fair share tax cut of approximately 5% due to unspecified funding reductions anticipated in the Army funding letter.
5. Budget Resource Management - Category I&2 Accounts (Chart 10 & 11): This chart provided a detailed listing of Category 1 & 2 accounts. Mrs. Weaver highlighted the transfer of Subsistence in Kind (SIK) from the Operations and Maintenance appropriation to the Military Personnel appropriation in FY97.
6. Program Exemptions (Chart 12): This chart depicted nominations and Army leadership approved programs for exemptions to all unspecified funding reductions. Mrs. Weaver addressed the fact that exemptions in the area of Army open allotments and centrally managed accounts did not preempt the need for functional proponent policy adjustments to execute programs within prescribed annual funding programs.
7. OA22 Year of Execution Bills (Chart 13): This chart depicted nominations and leadership approved decisions regarding "must-pay" unfinanced requirements. Mrs. Weaver commented that nominations which did not receive funding approval at the Army level will have to be fixed within the family or prioritized by the RSG forum. Mr. Jaworski added that OA22 had competed very well for additional funds at Army level and that everyone should realize that other commands are having to share in paying those bills.
8. ABO / OA22 FY97 Funding Letter Milestones (Charts 14 & 15): These charts depict the funding letter process and milestones. Mrs. Weaver highlighted that ABO is on track to meet the 15 Nov 96 suspense for issuing the Army funding letter. Based on this assumption, OA22 will issue funding letters to activities by 6 Dec 96. The next RSG is tentatively scheduled for the middle of Dec 96. Once activities receive formal funding letters, they will be tasked to revise obligation plans and unfinanced funding requirements (UFR's).
9. FY97 Proposed Funding Letter Issues (Chart 16): This chart highlighted funding shortfalls and issues that are dependent on Army funding letter action.
10. OA22 OMA Command Summary (Chart 17): The OA22 total funding profile was summarized, highlighting the downward trend in funding, especially in terms of operational requirements buying power. Mr. Jaworski commented that the FY97 strawman target numbers represent the "high water mark" pending receipt of the Army funding letter.
11. FY96 - FY97 Funding Audits (Charts 18,19,20): These charts review FY96 actuals and FY97 budgeted, funded and required numbers for Army open allotments, centrally managed accounts, family high visibility programs and operational accounts . Mrs. Weaver explained that differences between FY97 budget and required numbers reflected additionally anticipated funds or UFRs. Mr. Jaworski commented that civilian pay is funded at 100% of workyears in FY97; however, families should be cautious in hiring up to 100% in FY97 based on HQDA Redesign.
12. Manpower Issues (Chart 21): Mr. Jaworski asked all participants to review their family's portion of the manpower FY96 execution / FY97 allocation annex. He reminded everyone that there is considerable uncertainty concerning FY98 downsizing.
13. DCPS - Challenges (Chart 22): Mr. Jaworski mentioned that the conversion to the Defense Civilian Payroll System (DCPS) has been a painful process, particularly at the activity data entry timekeeper level. DCPS is almost entirely dependent on correct and timely data input at the agency level. Current lessons learned indicate some HQDA agencies are not giving the DCPS program requirements the focus and attention required to ensure that there is no interruption to individual payroll. RS-W will begin providing feedback to agency heads to highlight potential problem areas.
14. Other Issues (Chart 23): Mrs. Weaver highlighted several other resource issues. She reviewed individual, agency and OA22 responsibilities in regards to the American Express Government Card. Another issue discussed was Bosnia related costs. Based on FY96 lessons learned, families were highly encouraged to seek funding reimbursement up-front for service support of Operation Joint Endeavor. The next issue covered was the proposal to continue the crisis response fund in FY97 to help pay for unplanned, unprogrammed, senior leader directed missions; there was no objection.

6. Summary (Chart 24): Mrs. Weaver summarized the briefing:

1. The DAO consolidation and transfer to the Rome OPLOC should be transparent to families; families were encouraged to participate in the information briefing on 12 Nov.
2. HQDA agencies were urged to continue to follow the family funding process and to contact either Marjorie Salamone or Ada Mason in the Program and Budget Division to coordinate cross-leveling within their family prior to the issuance of the formal funding letter.
3. Once ABO and OA22 issues the formal funding letter, activities will be required to update FY97 obligation plans and UFRs.
4. The funding methodology and retention of the crisis response fund was ratified.
5. The next RSG is tentatively scheduled for mid-Dec 96.

7. Mr. Jaworski again reiterated the importance of keeping family principals, as well as the various activities within the families, informed of the issues discussed in this forum. The meeting adjourned at 1605 hours.

<Original Signed> <Original Signed>

Daniel J. Sullivan Joel B. Hudson

Colonel, GS Administrative Assistant to the

Director of Management Secretary of the Army

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LIST OF ATTENDEES

Administrative Assistant Mr. Hudson (Co-Chair)

Director of Management COL Sullivan (Co-Chair)

ACSIM Mike McCarley

Pat Parker

AG Steve Spratts

Diane Randon

ASA(CW) Ruth Huff

ASA(FM&C) COL Dwayne Griese

Brenda Tyson

ASA(IL&E) COL Dave Powers

Yvonne Thompson

ASA(M&RA) Donna Brown

Betty Carter

ASA(RDA) COL Dean Ertwine

Jacqueline Banks

Rosalind Popp

DACH CH (COL) Donald Taylor

LTC Daniels

DCSINT Haywood Arrington

Suzanne Swartz

DCSLOG Darlene Hoffman

DCSOPS LTC Jack Bednar

Angie Stanford

DCSPER COL Jim Murray

Debbie Billington

DISC4 LTC Levon Anderson

William Miller

IG Livita Hardy

Teresa Sandstrom

TSG COL Blum

Angela Gutrick

JAG LTC Leroy Bryant

OCE Kathy Churchman

OCLL LTC Ted Pusey

OCPA Verna Williams

Jeannette Newlen

OCSA CPT Gordon Weed

OGC COL Edward Frothingham

OSA/OUSA Bob Claude

Clara Vinson

DUSA-IA Peter Liszewski

SAAA LTC Bob Poncin

Kay Charles

Ada Mason

MAJ Barry Hendricks

SADBU Sarah Cross

IMCEN Bob Maxwell

ABO CMD ANALYST Debbie Hoepfer

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