Department of Defense

Fiscal responsibility rewards

Streamline the budget process, eliminate the dis-incentive to return money to the Federal Government, make it a measure that agencies that are able to return money can change the "color" so they can use for local projects that did not receive funding. Currently the Fed government provides different allocations of funds to the DoD for purchasing. These colors can only be used for thier intended purpose - for example O&M or Construction. If there is excess at the end of the fiscal year, the organization is penalized by the excess being taken by the Major Command and also their next budget being reduced by the amount taken - or more. Because of this, there is no incentive for organizations to be fiscally responsible and return money to MAJCOM or Air Force or the Government because they know they will be penalized so they rush to spend every dollar by the end of fiscal year, sometimes on things that are truly unnecessary or just fragrant fraud, waste and abuse. To eliminate this and provide an incentive to organizations, when there is excess money, the finance rules need to be changed so that the excess 1) does not count against the organization for the next fiscal year and any Major Command that tries to reduce a budget due to excess will have the Generals at the top punished (similiar to whistleblowers protection). 2) The excess money is given back to the fiscal responsible organization (if they want it too be) and the color changed to something they can use -- such as morale, technology investment, or mission etc as a benefit of remaining good fiscal stewards. and 3) make it part of a MAJCOM report on how much money was returned to the government, perhaps even rewarding the MAJCOM for their fiscal responsibility by prioritizing one of thier outyear funding requirements higher because they were able to save the most during the year.

 

All in all, most people want to be fiscally responsible but currently they are punished if they run their organization in a fiscally responsible manner. Knowing you will lose the money you don't spend, your budget will be cut the next year if you don't spend, and that you could actually lose a promotion for failing to spend money is not a very fiscally responsible message to the bases/MAJCOMs.

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Idea No. 5860