Budgeting (PPBE)

Question 1

What process is DoD’s resource management system and the primary means for the Secretary of Defense to control allocation of resources

Answer 1

PPBE

Question 2

Four phases of the PPBE process

Answer 2

Planning
Programming
Budgeting
Execution

Question 3

Define Appropriation

Answer 3

the means of providing budget authority for program funding

Question 4

The five major defense appropriation categories, what they fund, and their obligation periods

Answer 4

Research, Development, Test, and Evaluation (RDT&E) 
Procurement 
Operation and Maintenance (O&M) 
Military Personnel (MILPERS) 
Military Construction (MILCON)

Question 5

Research, Development, Test, and Evaluation (RDT&E)

Answer 5

Funds:

 - Development of equipment, materiel, or computer application software 
 - Developmental Test and Evaluation (DT&E) 
 - Initial Operational Test and Evaluation (IOT&E) 
 - Operation costs for some R&D dedicated facilities

Obligation Years: 2

Question 6

Procurement

Answer 6

Funds:

 - Purchase of major end items and defense systems
 - Initial issue of spares for above items
 - All costs necessary to deliver a useful end item intended for operational use or inventory
 - Major modifications to fielded systems

Obligation Years: 3

Shipbuilding and Conversion, Navy: 5 years

Question 7

MILPERS

Answer 7

Funds:

 - Pay and allowances of active duty and reserve military personnel
 - Permanent Change of Station (PCS) moves
 - Training in conjunction with PCS moves
 - Subsistence
 - Bonuses
 - Retired pay accrual

Obligations Years: 1

Question 8

Operation and Maintenance (O&M)

Answer 8

Funds:

 - Day-to-day operations
 - Headquarters operations
 - Civilian salaries (R&D dedicated installations may use RDT&E to pay civilian salaries)
 - Travel
 - Fuel
 - Minor construction
 - Training and education
 - Expenses of operational military forces
 - Base operations support
 - Recruiting

Obligation Years: 1

Question 9

MILCON

Answer 9

Funds:
-Major military construction projects
Construction of military schools
Construction of facilities
Construction of bases

Obligation Years: 5

Question 10

the Planning Phase activities culminate in the publication of the Defense Programming Guidance (DPG), as a result of planning efforts by …

Answer 10

the Joint Staff, OSD, and the Services/Agencies.

Question 11

Four primary reasons why programs lose funding

Answer 11

1. Scarcity of financial resources
2. Questionable need for the program
3. Excessive risk
4. Budget review issues

Question 12

Continuing Resolution

Answer 12

Provides “stopgap” funding to keep affected agencies operating for a specified period of time (spelled out in the resolution), If Congress is unable to pass one or more appropriations acts by 1 October (the beginning of the fiscal year), it must provide Continuing Resolution Authority (CRA) to prevent agencies whose appropriations have not been passed from shutting down

Question 13

Three basic activities that must be completed after the President’s Budget is submitted to Congress

Answer 13

Budget Resolution
Authorization Bill
Appropriation Bill

Question 14

Understand that the Future Years Defense Program (FYDP) is a computerized database used to summarize the:

Answer 14

• Force structure
• Personnel strength
• Financial resources of DoD as the budget is developed and refined

Question 15

Role of the House & Senate Budget Committees during the Congressional Enactment Process

Answer 15

aided by CBO analysis, each come up with a version of a budget resolution that contains estimated revenues and expenditures by government “function”

Question 16

Role of the House & Senate Armed Services Committees during the Congressional Enactment Process

Answer 16

Review the President’s Budget
Hold hearings on DoD budgets
Draft the Defense Authorization Bill
Provides program approval
Specifies policies to be followed
Authorizes specific quantities of systems to be procured
Sets end strength numbers

Question 17

Congressional Committees

Answer 17

House and Senate Budget Committees
House Armed Services Committee (HASC) & Senate Armed Services Committee (SASC)
House and Senate Appropriation Committees

Question 18

Role of the House & Senate Appropriations Committees

during the Congressional Enactment Process

Answer 18

Review President’s Budget
Hold hearings
Draft various Appropriations Bills

Question 19

Program Objective Memorandum (POM)

Answer 19

Each Program Office prepares input to the POM, based on its requirements.

Each Service and defense agency prepares a POM, documenting its fiscal requirements based on input from the field and guidance from the DPG.

Question 20

Budget Estimate Submission (BES)

Answer 20

Each Service and defense agency:
Specifies fiscal requirements for the next budget cycle to the OSD Comptroller.
Use the changes to their POM, including those in the RMD, as the basis for updates of their BES.

Question 21

Two exceptions to the Full Funding policy:

Answer 21

advance procurement and multiyear procurement.

Question 22

DoD uses the PPBE process to identify…

Answer 22

the fiscal needs of the services and decide how to allocate resources.