Module 4 - Resource Allocation Process Flashcards
Four activities of the resource allocation process
- PPBE
- Enactment
- Apportionment
- Execution
PPBE: Planning Phase
The Planning Phase of the PPBE Process is the definition and examination of alternative strategies, the analysis of changing conditions and trends, threats, technology, and economic assessments in conjunction with efforts to understand both change and the long-term implications of current choices.
Defense Planning Guidance released at end of planning phase around April or May each year
Defense Planning Guidance (DPG)
Establishes DoD’s force development planning and resource priorities in order to prevail in the Nation’s current operations and to develop a balanced joint force to meet future contingencies.
Budget Preparation Schedule
- 1st Monday of February: Presidents Budget due to Congress
- February: Future Year Defense Program (FYDP) Updated
- April: DoD Send Defense Planning Guidance (DPG) to Services
- 30 July: Services submit Program Objective Memorandum (POM) and Budget Estimate Submission (BES) to OSD, CAPE, and OMB for Review (FYDP Updated)
- October – November: OSD develops Program Decision Memorandum (PDM)
- October – December: Joint OMB-OSD review leading to Resource Management Decision (RMD)
- December: DoD Budget Request sent to Office of Management and Budget (OMB)
PPBE: Programming Phase
The Programming phase of the PPBE process defines and analyzes alternative force structures, weapon systems, and support systems together with their multi-year resource implications and the evaluation of various tradeoff options.
Covers the -year Future Years Defense Program (FYDP)
Results in the Program Objective Memorandum (POM)
Final DoD Programming decisions documented in the Program Decision Memorandum (PDM)
PPBE: Budgeting Phase
The Budgeting phase of the PPBE process includes formulation, justification, execution, and control of the budget.
The primary purpose is to scrutinize the first one or two years of a program’s budget to ensure efficient use of resources.
Goals of Budgeting Phase:
* Prepare a defensible budget and detailed Budget Estimation Submission (BES)
* Issue Program Budget Decision (PBDs) or Resource Management Decision (RMDs)
* Consider Major Budget Issues
* Submit the President’s Budget
PPBE: Execution Phase
The Execution phase of the PPBE process is the real-world application of the Planning, Programming, Budgeting, and Execution process.
Programs measured against obligations and expenditures
Enactment
Action taken by Congress on the President’s Budget (PB) and is a 3 step process to include:
* budget resolution
* authorizations
* appropriations.
- Review President’s Budget
- Conduct Hearings
- Pass Legislation
Budget Resolution
Passed by both Houses of Congress, but does not require the signature of the President.
Sets spending ceiling for major government functions
Authorization Acts
Establish the purpose and guidelines for a given activity and the maximum amounts that may be appropriated, however, they do not convey obligational authority
Appropriation Acts
Provides us with the budget authority to enter into obligations that will result in immediate or future outlays involving Government funds
Apportionment
Process of distributing budget authority to DoD and other Federal Agencies.
Done on Quarterly, Annually, or other basis
DoD allocated funds through USD Comptroller
Misappropriation Act
Title 31, U.S. Code, Section 1301, requires that funds appropriated by Congress be used only for the programs and purposes for which the appropriation is made
Anti-Deficiency Act
Title 31, U.S. Code, Section 1341, 1342, and 1517
Prohibits an obligation in excess of the appropriated amount or amount permitted by agency regulations. Forbids contract or obligation in advance of appropriations
Requires agency regulations to monitor and fix responsibility for violations of the act
Bona Fide Need Rule
Requires appropriated funds be used only for goods and services for which a need arises during the period of that appropriation’s availability for obligation.
Government agencies may not purchase goods or services they do not require until a bona fide need accrues
Bona Fide need must be determined by each agency before it obligates funds
