Transforming the Department of Defense financial management: a strategy for change : hearing before the Subcommittee on National Security, Veterans Affairs, and International Relations of the Committee on Government Reform, House of Representatives, One Hundred Seventh Congress, second session, June 4, 2002


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Página 69 - DOD faces financial management problems that are pervasive, complex, long-standing, and deeply rooted in virtually all business operations throughout the department.
Página 96 - Mr. Chairman, this concludes my statement. I would be pleased to answer any questions you or other members of the Subcommittee may have at this time. CONTACTS AND ACKNOWLEDGMENTS For further information about this testimony, please contact Gregory D. Kutz at (202) 512-9095 or, Randolph C.
Página 79 - Cultural resistance to change, military service parochialism, and stovepiped operations have all contributed significantly to the failure of previous attempts to implement broad-based management reforms at DOD. The department has acknowledged that it confronts decades-old problems deeply grounded in the bureaucratic history and operating practices of a complex, multifaceted organization and that many of these practices were developed piecemeal and evolved to accommodate different organizations, each...
Página 78 - Officer (CFO) to establish the mission and vision for the agency's future financial management and to direct, manage, and provide oversight of financial management operations. However, at DOD, the Comptroller — who is by statute the department's CFO — has direct responsibility for only an estimated 20 percent of the data relied on to carry out the department's financial management operations. The...
Página 73 - DOD's ability to control costs, ensure basic accountability, anticipate future costs and claims on the budget (such as for health care, weapon systems, and environmental liabilities), measure performance, maintain funds control, prevent fraud, and address pressing management issues.
Página 79 - ... performance goals. It is imperative that major improvement initiatives have the direct, active support and involvement of the Secretary and Deputy Secretary of Defense to ensure that daily activities throughout the department remain focused on achieving shared, agencywide outcomes and success.
Página 74 - These numerous systems have evolved into the overly complex and error-prone operation that exists today, including (1) little standardization across DOD components, (2) multiple systems performing the same tasks, (3) the same data stored in multiple systems, (4) manual data entry into multiple systems, and (5) a large number of data translations and interfaces that combine to exacerbate problems with data integrity.
Página 69 - Previous administrations over the past several decades have tried to address these problems in various ways but have largely been unsuccessful. In this regard, on September 10, 2001, Secretary of Defense Rumsfeld announced a broad initiative intended to "transform the way the department works and what it works on" which he estimated could save 5 percent of DOD's budget — or an estimated $15 to $18 billion annually.
Página 1 - Rayburn House Office Building, Hon. Christopher Shays (chairman of the subcommittee) presiding. Present: Representatives Shays and Tierney.

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