Purpose:

1
INFORMATION BRIEFING
Purpose To provide information concerning
UFM and the Armys Implementation Plan.
2

• Agenda
• What is UFM?
• Enabling Legislation
• Why do UFM?
• How does it work?
• Pilot Phase Transfer Features
• When and where will UFM be implemented?
• Who is managing the UFM Implementation Plan?
• Status of Plan
• Next Steps
• What are the potential effects of UFM?
• Conclusion

3

• What is UFM?
• UFM is the merging of appropriated funds (APF)
  and nonappropriated funds (NAF) for the purpose
  of providing morale, welfare, and recreation
  (MWR) services under the NAF set of rules and
  procedures in order to facilitate
• Procurement of property and
• services for MWR.
• Management of employees to
• provide the programs.
• Financial reporting and management.
• UFM is an Army-wide MWR initiative that
  complements structural changes of Installation
  Management Agency (IMA) implementation.

4

• What is UFM? (contd)
• UFM applies only to Direct APF Support (i.e.,
  Management Decision Execution Packages (MDEP)
  that support Soldier MWR (QDPC), Child
  Development (QCCS) and Youth Development (QYDP)),
  and the MWR portion of the IMA Regional offices
  funded under QMIS.
• Indirect Support (utilities, maintenance and
  repair, communications) continues to be provided
  by the responsible garrison managers on a
  non-reimbursable basis per AR 215-1.
• There are no forced conversions of APF personnel
  under UFM.
• Exclusions Army Community Services (ACS), Army
  Lodging, and other Supplemental Mission programs
  (i.e., museum funds) since these are not defined
  as military MWR per DoDI 1015.15.
• UFM does not increase or decrease funding. It is
  an alternative means of execution.

5

• Enabling Legislation
• Enabling Legislation is included in Section 323
  of the Bob Stump National Defense Authorization
  Act for Fiscal Year 2003.
• Legislation states
• Under regulations prescribed by Secretary of
  Defense, funds appropriated to DoD and available
  for MWR
• May be treated as NAF and expended in accordance
  with laws applicable to NAF.
• APF shall be considered NAF for all purposes and
  remain available until expended.
• Conditions
• UFM is available only if a MWR program is
  authorized to receive APF support and only in
  amounts and for the purpose the MWR program is
  authorized to receive the funds.

6

• Enabling Legislation (contd)
• Conditions (contd)
• Conversion of employment positions
• Secretary of Defense identifies positions of
  employees in MWR who are paid with APF whose
  status may be converted to status of NAF
  employee
• With consent of employee, status may convert.
• If employee does not consent, employee may not be
  removed because of failure to provide consent.
• Conversion will be without break in service.
• Conversion shall not entitle employee to
  severance pay, back pay, or separation pay under
  Subchapter IX of Chapter 55 of Title 5.
• Conversion will not be considered an involuntary
  separation or other adverse personnel action
  entitling an employee to any right to benefit
  under such title or any other provision of law or
  regulation.

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• Why do UFM?
• As practical as possible in the Army, reduce the
  number of different processes used to support
  MWR.
• Create single financial planning and reporting
  tool.
• Build streamlined procurement and personnel
  support systems.
• Expedite the execution of APF support of MWR.
• UFM upfront APF to NAF transfer procedures get
  resources to MWR operations faster than
  traditional Garrison APF direct obligations or
  MWR utilization, support, and accountability
  (USA) process.

8

• How does UFM work?
• The Deputy Assistant Secretary of the Army
  (Financial Operations), in coordination with the
  Army General Counsel and Under Secretary of
  Defense (Comptroller), has interpreted the public
  law to allow for the
• Immediate obligation, accrual, expense and
  disbursement of APF prior to goods or services
  being acquired by the NAF system.
• Transfer of APF to NAF to be based on an
  established memorandum of agreement (MOA) between
  NAF Instrumentalities and Army Resource Managers.
• The Defense Finance and Accounting Service -
  Indianapolis (DFAS-IN) acknowledges the
  interpretation and worked with IMA and CFSC on
  detailed instructions.

9

• How does UFM work? (contd)
• MOA between Government and NAF Instrumentality
  serves as basis for transferring APF to NAF.
• Outlines MWR requirements and funding.
• Payment schedule.
• Purpose for which funds are to be used.
• Government creates upfront obligation, accrual,
  expense and disbursement of APF to the NAF
  Instrumentality based on MOA payment schedule.
• Once transfer occurs, NAF management and
  accounting systems are responsible for tracking
  and reporting use of dollars.
• Once UFM is implemented, the MWR utilization,
  support, and accountability (USA) process will be
  limited to special circumstances.

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• Pilot Phase Transfer Features
• To simplify APF to NAF transfer process, IMA and
  CFSC created a primary MOA on behalf of the Pilot
  Sites.
• Established basis for Army-wide transfers.
• Local MOAs were allowed during Pilot Phase to
  address unfinanced requirements.
• The Army Banking and Investment Fund (ABIF) is
  serving as the conduit for transferring the APF
  to the appropriate NAF accounts.

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• Pilot Phase Transfer Features (contd)
• Under Pilot Phase MOA includes limitations on the
  use of NAF for APF authorized MWR requirements
• If FY 05 funding equals or is less than FY 04 APF
  execution, APF shortfall may not increase above
  FY 04 shortfall.
• If FY 05 funding is greater than FY 04 execution,
  APF shortfall must be reduced during FY 05 dollar
  for dollar.
• MOA is subject to availability of funds and the
  prescribed levels of service.
• The Decision to include these limitations in the
  UFM initiative was in response to the Board of
  Directors concern about the use of NAF for APF
  authorized MWR requirements. Addressing the
  shortfall is not part of Department of Defense
  UFM policy and procedures.

12

• When and where will UFM be implemented?
• Four Phases
• PHASE I
• Planning for UFM
• PHASE II
• Fort Campbell, KY
• White Sands Missile Range, NM
• Fort Drum, NY
• U.S. Army Garrison-Michigan (Selfridge)
• CFSC
• PHASE III
• Implement at all U.S. Garrisons
• Implement at overseas pilot sites
• (USA Japan Korea Grafenwoehr, GE)
• PHASE IV
• Implement at remaining overseas sites

• FY 03/04 - Develop and coordinate best ideas.

• Pilot Sites operate under UFM.
• Share lessons through workshops.
• IMA, CFSC oversee pilot phase and help Army
  prepare for FY 06.

• Operate under UFM in FY 06.

• Operate under UFM in FY 07.

13

• Who is managing the Armys Implementation Plan?
• Lead Sponsor CFSC Chief Financial Management
  Officer, Project Manager Chief,
  Financial Plans and Programs Office.
• Functional Teams established to oversee Pilot
  Sites and Army-wide implementation. Functional
  Teams are staffed with subject matter experts
  from CFSC, IMA, Army Staff, Secretariat
• Finance (CFSC-FM Lead).
• Human Resources (CFSC-HR Lead).
• Procurement (CFSC-NC Lead).
• Project manager routinely briefs CFSC, IMA and
  MWR Working Group on status of Plan.

14

• Status of Plan
• Mechanics of the transfer process were validated
  and successfully implemented both at the central
  and local/garrison levels.
• Original Pilot Sites have been operating since FY
  05. Still on-target for full implementation for
  FY 07.

15

• Observations
• CRA heavily influenced timing of MODs and
  frequency of transfers.
• Targets Inconsistent application and execution
  of the UFM guidance caused problems in the field.
• IMETS fielded
• Training became online.
• Usage rates continue to increase.
• Reported shorfalls
• FY 05 year-end fund issue.
• CRA and timing of MODs.
• Unearned income balances.

16

• Next Steps
• Assisting IMA Europe.
• Expanding IMETS usage.
• Developing FY 07 financial plan.
• Evaluating incremental costs of support services.
• Incorporating UFM into other Army initiatives
  (SBC).

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• What are the potential effects of UFM?
• Positive
• Reduce number of processes supporting MWR.
• Provide procurement, Human Resources, and
  Financial Management tools that are more
  responsive to managements needs.
• Accelerate execution of APF support through
  upfront transfers of APF to NAF.
• Reduce Garrison work load for Resource Managers,
  Civilian Personnel Advisory Center, and Director
  of Contracting.
• Develop a standard, automated means of tracking
  the MWR workforce.

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• What are the potential effects of UFM?
• Challenges
• Incremental cost of providing Government support
  may shift from APF to NAF (Civilian Personnel
  Support, accounting, etc.).
• Must-pay MWR APF authorized bills may not be
  honored. (To date, this does not appear to be an
  issue).
• Other Army Quality of Life programs managed by
  the Garrison are not allowed to practice UFM.
  (Pursuing including these activities).
• Experienced MWR Civil Servants may not wish to
  convert to NAF and may choose to leave Army.
  (Conversions are occurring and doesnt appear to
  be an issue).
• UFM link to other Army initiatives such as common
  levels of services is not yet clearly defined.
  (Ongoing discussions with IMA).
• UFM has never been tested OCONUS. Issues may
  surface, complicating implementation. (Overseas
  Pilot Sites are actively identifying these issues
  for resolution).

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• Conclusions
• UFM provides opportunity to improve support to
  MWR operations.
• Pilot Phase may uncover new challenges.
• Keys for successful implementation are
• Research, Development, Test and Evaluation.
• Full disclosure issues and options.
• Clear, consistent communication with all
  echelons.