Special Operations Financial Management

UNCLASSIFIED
U.S. Special Operations Command
Resourcing
Special Operations
American Society of Military Comptrollers
Professional Development Institute
Mr. Fran Machina
30 May 2014
The overall classification of this briefing is:
UNCLASSIFIED
UNCLASSIFIED
United States Special Operations Forces
UNCLASSIFIED
Agenda

History

Structure & Personnel

Priorities

Funding

Accounting

Summary
UNCLASSIFIED
3
UNCLASSIFIED
U.S. Special Operations Command
History
UNCLASSIFIED
Operation EAGLE CLAW
“Desert One”
UNCLASSIFIED
April 25, 1980
UNCLASSIFIED
5
UNCLASSIFIED
MFP-11 Background

Desert One 1980:



Failure in joint special operations
Goldwater-Nichols 1986:

Created “a unified combatant command for
special operations missions”
UNCLASSIFIED

Cohen-Nunn 1987:

Amendment to FY87 Def Auth Act

Established MFP-11 and ASD/SOLIC
DEPSECDEF Memo 1991:

Delineated Services and USSOCOM
programming and budgeting
responsibilities
6
UNCLASSIFIED
National Defense
Authorization Act of 1986
Secretary Of
Defense
Under Secretary
of Defense (POLICY)
U.S. Special
Operations
Command
Assistant Secretary
of Defense
(Special Operations
Low-Intensity Conflict
& Interdependent
Capabilities)
Established the U.S. Special Operations Command (USSOCOM) and the Office of the
Assistant Secretary of Defense for Special Operations Low Intensity Conflict and
Interdependent Capabilities - ASD (SOLIC-IC)
UNCLASSIFIED
7
USSOCOM
UNCLASSIFIED
A Unique Organization
A Unified
Combatant Command
UNCLASSIFIED
… with
Service, Military
Department, and
Defense Agency-like
responsibilities
8
UNCLASSIFIED
Unique Capabilities
Combatant Command
• Command of all SOF &
Theater Special Operations
Commands (TSOCs)
• Synchronize planning for
global operations
against terrorist networks
• Deploy SOF to support
Geographic Combatant
Commanders (GCCs)
• As directed, conduct
operations globally
• Plan & execute pre-crisis
activities
UNCLASSIFIED
Legislated Military
Department-Like
Authorities
• Organize, train, equip SOF
• Develop SOF strategy,
doctrine, and tactics
• Program & budget for SOF
• Procure SOF-peculiar
equipment
• Monitor management of
SOF personnel
• Ensure interoperability
• Conduct internal audits
9
U.S. Special
Operations Command
Structure &
Personnel
UNCLASSIFIED
UNCLASSIFIED
UNCLASSIFIED
Unified Commands
CJCS
SECRETARY OF
DEFENSE
SERVICE CHIEFS
U.S.
STRATEGIC
COMMAND
U.S.
PACIFIC
COMMAND
UNCLASSIFIED
U.S.
NORTHERN
COMMAND
U.S.
CYBER
COMMAND
U.S.
SOUTHERN
COMMAND
U.S.
TRANSPORTATION
COMMAND
U.S.
EUROPEAN
COMMAND
U.S.
SPECIAL OPERATIONS
COMMAND
U.S.
CENTRAL
COMMAND
U.S.
AFRICA
COMMAND
11
UNCLASSIFIED
USSOCOM Personnel
14%
Air Force
Military
Air Force
Civilians
86%
9%
18,143 Total Manpower
7%
USSOCOM
Military
USSOCOM
Civilians
Army Military
Army Civilians
93%
91%
36,698 Total Manpower
4%
12%
88%
UNCLASSIFIED
11,158 Total Manpower
Navy
Military
Marine Corps
Military
96%
Navy
Civilians
3,327 Total Manpower
Marine Corps
Civilians
12
UNCLASSIFIED
The SOF Team
United States Special
Operations Command (USSOCOM)
United States Army
Special Operations
Command
(USASOC)
Naval Special
Warfare Command
(NAVSPECWARCOM)
Air Force
Special Operations
Command
(AFSOC)
Marine Corps
Special Operations
Command
(MARSOC)
Joint Special
Operations Command
(JSOC)
Joint Special
Operations
University
(JSOU)
FT BRAGG, NC
NAB CORONADO,
CA
SPECIAL FORCES
RANGERS
SEAL TEAMS
AVIATION
SPECIAL BOAT
TEAMS
MISO
SEAL DELIVERY
VEHICLE TEAMS
CIVIL AFFAIRS
NAVAL SPECIAL
WARFARE CENTER
JFK SPECIAL
WARFARE CENTER
UNCLASSIFIED
HURLBURT AFB, FL
CAMP LEJUENE, NC
AVIATION - FIXED
WING
& VERTICAL LIFT
SPECIAL TACTICS
AVIATION FID
ISR/PED
MARINE SPECIAL
OPERATIONS
COMPANIES
MARINE SPECIAL
OPERATIONS
ADVISORY GROUP
AIR FORCE SPECIAL
OPERATIONS
SCHOOL
MARINE SPECIAL
OPERATIONS
SUPPORT GROUP
MARINE SPECIAL
OPERATIONS
SCHOOL
FT BRAGG, NC
JOINT STANDING
DEVELOPMENT,
TRAINING
AND EXERCISES
TAMPA, FL
SOF EDUCATION
AND
STAFF TRAINING
13
UNCLASSIFIED
Theater Special
Operations Commands
USEUCOM
USNORTHCOM
USCENTCOM
SOCEUR
SOCNORTH
Stuttgart, Germany
Peterson AFB, Colorado
SOCKOR
Camp Kim, Seoul, Korea
USAFRICOM
USSOUTHCOM
SOCCENT
MacDill AFB, Florida
USPACOM
USPACOM
SOCAFRICA
SOCSOUTH
Stuttgart, Germany
SOCPAC
Camp Smith, Hawaii
Homestead ARB, Florida
UNCLASSIFIED
14
UNCLASSIFIED
USSOCOM Headquarters
Chief Information
Officer
Commander
Senior Enlisted
Advisor
Political Advisor
Personal
Staff
Acquisition
Executive
Dep CDR MOB
& Reserve Affairs
Acquisition
Center
CFO / Comptroller
Sr. Advisor
Science & Technology
Deputy
Commander
Director
Strategic
Communication
Vice Commander – NCR
SOPA
Assistant
Vice Commander – NCR
Chief of Staff
Deputy Chief of Staff
WO
SOLA
LNOs
HQ CMDT
J2
UNCLASSIFIED
J3
J4
J5
J6
J8
FMD
J1/7/9/JSOU
15
SOFM Directorate
Responsibilities
UNCLASSIFIED
 (Accounting Directorate) – Dave Ramseyer:
 Operating Accounting
 Systems Accounting
 (Budget/Operations Directorate) – Bob Baker:
 HQ Accounting
 CFO Compliance
 Budget and Execution
 Centrally Managed Programs
 Flying Hours/Flying Hours Program Office
 Desk Officers
 (Investments Directorate) – George Woods:
 Acquisition Programs
 Strategic Integration
 (Integration Directorate) – Ed Shapiro:
 Policy & Funds Control
 Systems Integration/Resource Data Management Office
 Budget Integration
 (Special Programs Directorate) – COL Chris Zimmerman:
 Intelligence
 Classified Budget
 Special Funding Authorities
UNCLASSIFIED
16
U.S. Special
Operations Command
Priorities
UNCLASSIFIED
UNCLASSIFIED
UNCLASSIFIED
Global Persistent
Presence
The overall classification of this briefing is:
UNCLASSIFIED
UNCLASSIFIED
18
USSOCOM
Commander Priorities
Win the Current Fight
UNCLASSIFIED
Preservation of the Force and Families

resources
Freedom of maneuver to realign resources

Humans are more important than hardware

Unify SOF efforts globally

Increase predictability through PERSTEMPO

Maximize Afghan/Host Nation lead

Institutionalize resiliency solutions

Modernize key SOF platforms

Strengthen SOF families

Develop game changing capabilities

Enhance Intelligence, Surveillance, &
Reconnaissance
Expand the Global SOF Network

Networked, agile SOF that can achieve global
effects

IImplement Theater Special Operations
Command master plan
Freedom of maneuver to realign resources

Align USSOCOM to support network
UNCLASSIFIED
Sustain Current Functions

Sustain Current Programs

Increase Acquisition Agility

x
Compete
migration of Overseas Contingency
Operations funding to baseline funding
19
U.S. Special
Operations Command
Funding
UNCLASSIFIED
UNCLASSIFIED
CFO Mission &
Vision Statements
UNCLASSIFIED
Mission
Advise the Commander, USSOCOM, the USSOCOM Staff, the
Component Commanders, and the TSOCs on all financial management
matters. Prepare, submit, and defend all budget products, and analyze
the execution of the command’s funding and Congressional
appropriation matters. Utilize a strategy-to-resource integration
approach across the Planning, Programming, Budget, and Execution
(PPBE) process.
Vision
Appropriately resource the SOF warfighter to achieve USSOCOM’s
mission of providing fully capable SOF to defend the United States and
its interests.
UNCLASSIFIED
21
UNCLASSIFIED
Legislative Intent
10 USC Sec. 167
“The commander of the special operations
command shall be responsible for, and shall
have the authority to conduct, the following:
Development and acquisition of special
operations-peculiar equipment…Program and
budget execution.”
UNCLASSIFIED
22
UNCLASSIFIED
Special Operations Peculiar

SO-PECULIAR - Equipment, material, supplies, and services
required for special operations mission support for which there is
no broad conventional force requirement.
 Includes standard items used by other DoD forces but modified for
special operations forces (SOF).
 Items initially designed for, or used by, SOF until adapted for use as
Service-common by other DoD forces.
 Items approved by the USCOMSOC as critically urgent for the immediate
accomplishment of a special operations mission but not normally
procured with MFP 11.
UNCLASSIFIED
23
UNCLASSIFIED
MFP-11 SOF Peculiar vs. Service Common
•
•
•
•
•
•
•
•
•
•
•
Service Funded:
Initial Training
Basic MOS Training
Pay
Entitlements
Officer PME
Service PME
Tuition Assistance
Housing
Family Services
DFAC
Fitness Center
•
•
•
•
•
•
•
MFP-11 Funded:
SOF Basic Skills
Training
Advanced Skills
Training
Operational
Travel/TDY
SOF Advanced
Education Benefits
SOF Unique Uniforms
and Equipment
POTFF
Civilian Pay, Awards,
and Benefits
Over 6,500 Army, Navy, and Air Force Civilians
UNCLASSIFIED
UNCLASSIFIED
Enhanced Air Transportability
Pylons
Common Avionics Architecture
System (CAAS) Cockpit
Common Missile Warning System (CMWS) w/
Improved Countermeasures Dispenser
Standardized Engines
(T55-GA-714A)
Suite of Integrated Radio Frequency
Countermeasures (SIRFC)
Standard Aircraft
Max Gross Wt (54,000 lbs)
XM-216 Dark Flares
Multi-Mode Radar (MMR)
Infrared Exhaust
Suppressors (IES-47)
Expanded Left-forward
Gunner’s Window
Left Gunner
Windows Modifications
Aerial Refuel Probe
New Electro-Optical Sensor System
(EOSS FLIR)
Standardized Extended
Range (Fat Tank)
Configuration
AN/AVR-2B Laser Detection System
Improved Bilge Paint
& Corrosion Protection
GRAY= Army Provided
UNCLASSIFIED
New-build Nose/Cockpit Structure
RED = SOF Unique
Rescue Hoist
Rebuilt Airframe Structure (New
Elect. Wires/ Hydraulic Lines)
YELLOW = SOF Driven-Tested / Army-Adopted
25
UNCLASSIFIED
MFP-11 Funding Flow
$
Congress
$
OMB
OSD
$
$
USSOCOM
UNCLASSIFIED
26
UNCLASSIFIED
USSOCOM Budget/Manpower
SOF relies heavily on OCO ~25% in FY14
$12.0
$9.3
$9.9
$8.9
$10.3
$10.8
$9.8
$3.9
$8.0
$3.3
$3.7
$4.1
60
$9.2
$2.4
$2.3
70
$7.7
50
$2.8
40
$6.0
30
$4.0
$6.0
$6.2
$6.1
$6.2
$6.9
$7.4
$6.9
$7.7
$2.0
20
10
$0.0
Military (ES) / Civilian (FTE) in Thousands
$10.0
$ in Billions
69.7
66.3
54.2
80
0
FY 08
FY 09
Base
FY 10
FY 11
OCO
FY 12
FY 13
FY 14*
FY 15*
Manpower End Strength
* FY 08-13 totals represent EOY actuals; FY 14 represents enacted base/OCO funding; FY 15 OCO to be submitted separately .
UNCLASSIFIED
27
UNCLASSIFIED
USSOCOM FUNDING VS. DOD
USSOCOM TOA AS A PERCENT OF DOD
FY08
FY09
FY10
FY11
FY12
9.4
8.9
9.9
10.3
10.8
665.9
666.3
690.9
687.0
645.5
1.4%
1.3%
1.4%
1.5%
1.7%
($B)
USSOCOM
DOD
% of DOD
FY13
9.8
577.5
1.7%
FY14
9.2
581.2
1.6%
FY15
7.7
495.6
1.6%
Sources: FY08-13 DoD FY14 Green Book and USSOCOM annual budget requests; FY14 Enacted Appropriation; FY 2015 Defense Budget Overview (base only)
Marine Corps
6.2%
Air Force
27.8%
Navy
23.6%
USSOCOM
1.6%
DW (Other)
16.7%
Army
24.1%
UNCLASSIFIED
28
USSOCOM FY2013
Funding by Component
USASOC
$2.6B
MARSOC
$0.2B
NSWC
$1.1B
UNCLASSIFIED
SOCA $33M
SOCC $48M
SORDAC
$0.6B
TSOCs
$0.2B
Other HQ
$1.4B
SOCE $38M
SOCK $20M
SOCS $32M
AFSOC
$2.3B
HQSOCOM
$1.5B
SOCP $53M
SOCN $0.4M
UNCLASSIFIED
29
USSOCOM
FY 2013-2015 Totals
UNCLASSIFIED
UNCLASSIFIED
OCO $2,368
OCO $2,277
MILCON $521
RDT&E $457
MILCON $383
RDT&E $357
MILCON $411
RDT&E $508
PROC $1,524
PROC $1,706
PROC $1,414
O&M $4,774
O&M $4,782
O&M $5,222
($M)
FY 2013 Actual
FY 2014 Enacted
FY 2015 PB
Base
$7,457
$6,936
$7,665
OCO
$2,368
$2,277
-
Total
$9,825
$9,213
$7,665
*FY2015 OCO request is being submitted separately pending DoD guidance
UNCLASSIFIED
**Numbers in ‘000s
30
UNCLASSIFIED
CFO 2014 Fiscal Priorities

Overseas Contingency Operations (OCO) funding
 Continue OCO to Base (O2B) transition into SOF
–
–
Full migration of O2B critical to future of SOF operations
Various enduring requirements that will still exist after FY15
 OCO Execution
–
–

OMB guidelines will be used to constrain & discipline DoD spending
Seeking SOF exception to match new Defense Strategy
Support Commander Vision
 Resource Global SOF Network and Support Initiatives

Auditability
 Achieve new clean audit milestones (2014 & 2015)
 SOF Dependent on Services new ERP Systems to achieve auditability
–
Continuing to adapt and learn for SOF to achieve DoD goals
UNCLASSIFIED
31
U.S. Special
Operations Command
Accounting
UNCLASSIFIED
UNCLASSIFIED
USSOCOM Fiduciary
Oversight
UNCLASSIFIED

USSOCOM required to prepare stand-alone financial statements IAW
CFO Act of 1990

SecDef Memo, Improving Financial Information and Achieving Audit
Readiness, dtd 13 October 2011



Audit readiness for Statements of Budgetary Resources by end of 2014
Meet audit readiness for all DoD financial statements by 2017
DoD’s interest in USSOCOM:



Service-like Unified Command
Only non-Service component that “owns” military equipment
Solely responsible for Major Force Program 11, and several appropriations
–


Executes funding in O&M, Procurement, RDT&E, & MILCON
SOCOM accounts significantly impact auditability of Defense-Wide financial
statements.
Command Priority


Recognize benefits of accurate financial reporting
Quarterly briefings financial statements trends
UNCLASSIFIED
33
USSOCOM
Accounting Challenges
UNCLASSIFIED
SABRS
MARSOC
SOCPAC
NAVSPECWARCOM
SOCEUR
SOCAFRICOM
STARS-HCM
STARS-FL
NAVY ERP
JSOC
GAFS-R
DEAMS (ERP)
STANFINS
SOMARDS
GFEBS (ERP)
SOCKOR
HQ SOCOM
SOC NORTH
SOCCENT
AFSOC
USASOC
SOCSOUTH
USSOCOM funds executed in the Services’ accounting systems
UNCLASSIFIED
34
UNCLASSIFIED
U.S. Special Operations Command
Wrap Up
UNCLASSIFIED
UNCLASSIFIED
A Unique and Capable Force
Older, Mature, Multiple-time Volunteers
Arduous Initial Training With High Attrition
Multiple Advanced Tactical Schools
Regionally Focused Assignments
Proficient in at Least One Foreign Language
Exceptional Physical Skill and Endurance
Intelligent Adaptive Problem Solvers
Possess both Individual and Team Skills
UNCLASSIFIED
36
UNCLASSIFIED
SOF’s Relevance is its People
INTEGRITY
COMPETENCE
COURAGE
CREATIVITY
SOF TRUTHS
• Humans are more important than hardware
• Quality is better than quantity
• Special Operations Forces cannot be mass produced
• Competent Special Operations Forces cannot be
created after emergencies occur
• Most SOF operations require non-SOF support
UNCLASSIFIED
37
UNCLASSIFIED
The Fifth SOF Truth
Organic
Enablers
Organic
Enablers
Organic
Enablers
Organic
Enablers
Organic
Enablers
Marine Air-Ground
Task Force
(MAGTF)
Air and Space
Expeditionary Force
(AEF)
ServiceProvided
Capabilities
Expeditionary/Carrier
Strike Group
(ESG/CSG)
US Special Operations
Forces
Modular Army – Brigade
Combat Team
(BCT)
5th SOF Truth:
Most SOF operations require non-SOF support
10 U.S.C.
167 and 164(c): USSOCOM resources SO-Peculiar Requirements
UNCLASSIFIED
38
UNCLASSIFIED
Summary

USSOCOM is a Unique Combatant Command
 Budget and acquisition authorities for SOF unique requirements
 Service-like responsibility to provide forces to GCCs
 Material to DOD achieving auditability
 Mini-DOD…has four Service components
 Requires support from Services to succeed
UNCLASSIFIED
39
UNCLASSIFIED
USSOCOM Quiz

Established in what year?

Number of personnel FY14?

Funding for SOF peculiar requirements is called? MFP-11

Total FY14 budget? $9.2B

SOF budget as percent of DOD budget? 1.6%

Percent of SOCOM budget in OCO? 25%
UNCLASSIFIED
1987
69,300
40
UNCLASSIFIED
Questions
UNCLASSIFIED
41
UNCLASSIFIED
Budget Perspective
What if…
We take a family budget and model it after the
American
Federal
Household
Budget Budget
Federal
Budget?
U.S.Annual
Tax Revenue
Family Income
$2,775,000,000,000
$27,750
Federal
Budget
Family
Planned Expenses $3,455,000,000,000
$34,550
Let’s drop
8 credit
zeros
that
looks like!
NewNew
Debt
$680,000,000,000
cardand
debt see what
$6,800
National
Debt Credit Card Balance
$17,601,000,000,000
Outstanding
$176,010
Sequestration
(-1.2T ovr
Sequestration
10yr)
-$120,000,000,000
-$1,200
(LESS 8 ZEROES!)
Source: 2013 Totals (actuals) as reported in the Budget of the U.S. Government, FY 2015, Office of Management and Budget, Table S-1 & S-4Current National Debt (round to
nearest $B) as of 01 Apr 2014 from US Treasury website, http://www.treasurydirect.gov/NP/debt/current.
UNCLASSIFIED
42