Home' Army Acquisition Logistics and Technology Magazine : Army ALT October-December 2011 Contents 132 Army AL&T Magazine
AND FINANCIAL MANAGEMENT IN FOCUS
The House and Senate Armed Services Committees (HASC and
SASC) held more than 25 hearings in June and July, many of
them focusing on DOD financial management and the impact
of budget cuts on military readiness.
On July 27, the SASC readiness subcommittee, led by Sen.
Claire McCaskill (D-MO), heard testimony from Under Sec-
retary of Defense (Comptroller) Robert F. Hale on financial
management and business transformation efforts in the Pen-
tagon. McCaskill said that DOD "financial management
systems are riddled with decade-old problems that are difficult
to reverse" and questioned the effectiveness of the Enterprise
Resource Program that is being deployed to military offices.
Hale acknowledged that DOD has "a long way to go" before
reaching auditability. The National Defense Authorization Act
(NDAA) for Fiscal Year 2010 mandates that DOD reach full
auditability status by 2017. The hearing also included tes-
timony from the service comptrollers, including Assistant
Secretary of the Army (Financial Management and Comptrol-
ler) Mary Sally Matiella.
The HASC, meanwhile, created a new Fiscal Management and
Auditability Reform Panel to investigate DOD business practices.
The new panel is led by Chairman Michael Conaway (R-TX)
and Ranking Member Robert Andrews (D-NJ). Andrews pre-
viously chaired the HASC's Defense Acquisition Reform Panel,
which authored the IMPROVE Acquisition Act, incorporated
into the FY11 NDAA.
The new HASC panel held its first hearing July 28 with testi-
mony from Hale, DOD Deputy Chief Management Officer
Elizabeth A. McGrath, and General Accountability Office expert
Asif A. Khan. Khan testified that DOD's auditability problems
are directly attributable to the acquisition process and praised the
new Financial Improvement and Audit Readiness Plan released
by Hale earlier this year.
The SASC version of the NDAA for FY12, which the committee
approved June 17, is pending consideration by the full Senate.
Once the bill passes the Senate, a conference committee will rec-
oncile the differences between the House and Senate versions of
the NDAA. The House passed its version May 26.
FY12 LEGISLATIVE UPDATE
On July 8, the House of Representatives approved the Defense
Appropriations Act for FY12, which was reported by the House
Appropriations Committee on June 16. The House bill appropri-
ates more than $649 billion for DOD activities in FY12, roughly
$8 billion less than President Obama requested.
The Senate Appropriations Committee (SAC) approved its version
of the FY12 Defense Appropriations Act on Sept. 15. The SAC bill
cuts the base FY12 DOD budget by $26 billion while fully funding
the President's budget request for Overseas Contingency Operations.
Appropriators planned to approve a continuing resolution to
fund the federal government through the first weeks or months
of the new fiscal year that began Oct. 1, with an omnibus appro-
priations package to follow sometime in late October. SAC
Chairman Daniel Inouye (D-HI) said that he and HAC Chair-
man Hal Rogers (R-KY) were committed to completing action
on the FY12 appropriations cycle before the end of October.
Thus far, the Senate has voted on only one FY12 appropriations
bill, the Military Construction and Veterans Affairs, and Related
Agencies [MILCON-VA] Appropriations Bill, which probably will
serve as the legislative vehicle for the FY12 omnibus package.
All of this activity on FY12 appropriations is being conducted in
the shadow of the Budget Control Act of 2011. This bill was the
result of weeks of tense negotiations between the White House
and Congress to raise the Nation's debt ceiling and avoid a default
on the Nation's loans. Republicans insisted on large spending
(Hearing webcast and written testimony available a
(Hearing transcript, webcast, and written testimonyy
available at http://armed-services.senate.gov//
FOR THE RECORD
Links Archive Army ALT July-September 2011 Army ALT January-March 2012 Navigation Previous Page Next Page