# Presentation: 481114

## CFO 1011.0 NASA Business Environment

**CFO 101****1.0 NASA Business Environment**

- School of Business Management
- Last Update:  Aug 2008

**CFO University**

## 1.1  Where the Buck Starts
Federal
Legislative
Executive
1.2  NASA
1.3  CFO
1.4  NASA Centers
1.5  NASA Shared Services Center
1.6  Space Industry
1.7  Center-specific content
1.8  Summary

- Federal
- Legislative
- Executive
- 1.2  NASA
- 1.3  CFO
- 1.4  NASA Centers
- 1.5  NASA Shared Services Center
- 1.6  Space Industry
- 1.7  Center-specific content
- 1.8  Summary

- Agenda

## NASA Centers

**NASA HQ**

**Executive Branch**

**Legislative Branch**

**President appoints Cabinet and “directs” federal agencies and departments**

**Congress (Senate and House of Representatives) drafts laws & oversees federal agencies & departments**

**We work for the President.**
**We get funding from Congress.**
**We get direction from HQ.**

- 1.1 Federal

- Major Players

**Notes:**
And we get a lot of advice from a whole lot of other people

## a financial plan that provides a summary of intended expenditures along with proposals for how to meet them

a political instrument that allocates scarce public resources among the social & economic needs of the jurisdiction

a managerial / administrative instrument that ensures all programs / activities will be reviewed at least once a year

an economic instrument that can direct a nation's economic growth & development

an accounting instrument that holds government officials responsible for the funds with which they have been entrusted

**A Budget is...**

- a ***financial plan*** that provides a summary of intended expenditures along with proposals for how to meet them
- a ***political instrument*** that allocates scarce public resources among the social & economic needs of the jurisdiction
- a* ****managerial / administrative instrument*** that ensures all programs / activities will be reviewed at least once a year
- an ***economic instrument*** that can direct a nation's economic growth & development
- an* ****accounting instrument*** that holds government officials responsible for the funds with which they have been entrusted

- Budget  – “An Expression of Policy”

**Notes:**
• The definition of the Federal Budget can be viewed from a broad to specific perspective but understanding why a budget is significant, necessary, and the impact it has helps explain why so much effort is made to facilitate the process from beginning to end.
• The chart above begins by presenting a very broad perspective of what the Federal Budget is and what it does. This is a conceptual and generic framework from which we can further define the Federal budget.
• The Federal budget is generally viewed as being a product of the President since the law requires the President to present a budget to Congress, however the Federal Budget is a joint product resulting from the shared powers of Executive and Legislative branches of government.

## Federal Budget Authority

*“**We the people of the United States, in order to form a more perfect Union, establish *_*Justice*_*, insure *_*domestic Tranquility*_*, provide for the *_*common defense*_*, promote the *_*general Welfare*_*, and secure the *_*Blessings of Liberty*_* to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."*

*It all starts with the Constitution but where does funding NASA fit in? The Space Act refers to our role in support of the “general welfare”*

**Notes:**
Lots of things come under “general welfare.”  NASA is one of them.

## Federal Budget Authority

*Article 1, Section 8 of the Constitution says:*

*Article 1, Section 9 of the Constitution says:*

- Furthermore,

***“******No money shall be drawn from the***
*** ******Treasury, but in Consequence of ***
***appropriations made by law”.***

***“******Congress shall have the power to levy and collect taxes, duties, imports, and excises to pay debts and provide for the common defense and general welfare of the united States”.***

**Notes:**
“General Welfare” again cited in Article 1, Section 8
Appropriations passed by Congress is the methodology whereby these “general welfare” provisions are provided funds to pursue said “general welfare”  

## National Aeronautics & Space Act1958

- Sec. 102.  (a) The Congress hereby declares that it is the policy of the United States that activities in space should be devoted to peaceful purposes for the benefit of all mankind.
- (b) The Congress declares that the _general welfare_ and security of the United States require that adequate provision be made for aeronautical and space activities. The Congress further declares that such activities shall be the responsibility of, and shall be _directed by, a civilian agency_ exercising control over aeronautical and space activities sponsored by the United States...
- (c) The Congress declares that the _general welfare_ of the United States requires that the National Aeronautics and Space Administration seek and encourage, to the maximum extent possible, the _fullest commercial use of space_.

**Notes:**
This law is how and why we exist as an agency
Dwight Eisenhower was president at the time
Note that is states “civilian agency.”  We have had issues over this time regarding militarization of the agency and having a defense-oriented mission
“commercial use of space” is the section  by which we have outsourced and commercialized many of our assets, and the basis which will lead to others in the future

## Slide 8

**Notes:**
Biggest increase:  Medicare & medicaid
Defense has actually shrunk

## Slide 9

**Notes:**
Same years, divides the categories into 3
Interest is actually mandatory
Note mandatory spending increases... double in 40 years
Discretionary spending almost halved (that’s where NASA is)

## FY 2009 Federal Government projections...

$15.0     Trillion / Year Gross Domestic Product 

$  3.1     Trillion Annual Budget 

$10.0     Trillion Debt

$407      Billion projected FY09 budget deficit

 $17.6      Billion Annual NASA Budget 
(.56% of federal budget)

- $15.0     Trillion / Year Gross Domestic Product
- $  3.1     Trillion Annual Budget
- $10.0     Trillion Debt
- $407      Billion projected FY09 budget deficit
** ****$17.6     **** ****Billion Annual NASA Budget **
**(.56% of federal budget)**

- Federal Summary

***DYK? ***
*Each penny costs .81 of a cent to make, but the US Mint collects one cent for it. The profit goes to help fund the operation of the United States Mint and to help pay the public debt. In 2000, this profit added up to about $24 million.*

**Notes:**
NASA used to state publicly that it was only .7 % of the federal budget
New calculations show only .56%
Budget deficit of $400 billion doesn’t bode well for the future for budget allowances for NASA or other negative effects (interest rates, investments, etc)

## U.S. Government Federal Budget Financial Indicators(Dollars in Millions)

| Year  | Receipts | Outlays | Deficit | Debt | Interest |
| --- | --- | --- | --- | --- | --- |
| 2002 | 1,853,395 | 2,011,153 | -157,758 | 6,198,401 | 332,537 |
| 2003 | 1,782,532 | 2,160,117 | -377,585 | 6,760,014 | 318,141 |
| 2004 | 1,880,279 | 2,293,006 | -412,727 | 7,354,673 | 321,679 |
| 2005 | 2,153,859 | 2,472,205 | -318,346 | 7,905,316 | 352,345 |
| 2006 | 2,404,254 | 2,708,677 | -248,181 | 8,611,473 | 398,744 |
| 2007 | 2,568,239 | 2,730,241 | -162,002 | 9,295,438 | 440,412 |
| 2008 est. | 2,521,175 | 2,931,222 | -410,047 | 9,865,335 | 481,241 |
| 2009 est. | 2,699,947 | 3,107,355 | -407,408 | 10,436,944 | 518,982 |
| 2010 est. | 2,931,348 | 3,091,340 | -159,992 | 10,982,658 | 552,764 |
| 2011 est. | 3,076,423 | 3,171,233 | -94,810 | 11,536,685 | 585,811 |

**Notes:**
Note: FY08 and 09 levels of $400B+, but then FY10 and 11 “magically” are reduced to more tolerable levels.  
Interest on debt continues to rise, as does debt... almost doubles from 02 to 11

## Office of Management & Budget (OMB)
Circular A-11 Budget Formulation
Circular A-76 Public Private Competitions
Circular A-123 Management’s Responsibility for Internal Controls
Bulletin 01-09 Annual Financial Report Form & Content
Bulletin 01-02 Annual Report Audit Requirements
Department of the Treasury Guidance (TFM)
Monthly Financial Reports, inc. cash/fund reconciliation
General Services Administration (GSA) Guidance
Federal Travel Regulation (FTR)
Government Accountability Office (GAO) 
Audit Guidance (Manuals)
Financial Systems Integration Office (FSIO)
Federal Accounting Standards Advisory Board (FASAB)
Other Federal Agencies
Department of Defense (DoD)
Federal Aviation Administration (FAA)

- Circular A-11 Budget Formulation
- Circular A-76 Public Private Competitions
- Circular A-123 Management’s Responsibility for Internal Controls
- Bulletin 01-09 Annual Financial Report Form & Content
- Bulletin 01-02 Annual Report Audit Requirements
- Department of the Treasury Guidance (TFM)
- Monthly Financial Reports, inc. cash/fund reconciliation
- General Services Administration (GSA) Guidance
- Federal Travel Regulation (FTR)
- Government Accountability Office (GAO)
- Audit Guidance (Manuals)
- Financial Systems Integration Office (FSIO)
- Federal Accounting Standards Advisory Board (FASAB)
- Other Federal Agencies
- Department of Defense (DoD)
- Federal Aviation Administration (FAA)

- Federal Regulations / Guidance

***Message***
***There are many federal agencies which guide how our budget is spent***

**Notes:**
OMB circulars guide how agencies should manage
A-11 has voluminous information on budget formulation
A-76 is the main direction for commercialization of government activities; FAIR Act requires the annual categorization of cs workforce into “inherently governmental” work and “potentially contracted for” work
Many are concerned with financial management, reporting, controlling, reconciling accounting balances
GSA is the majority landlord of the federal government; Centers “own” their buildings on campus; NASA HQS leases from GSA, as do most other Washington, DC locations
GSA also provides all the travel-related direction:  per diem rates, contracted-for airlines, etc.
There are organizations which publish accounting standards prescribed for federal agencies
Even regulations directed at DoD and FAA have applicability to us

## 1.1  Where the Buck Starts
Federal
Legislative
Executive
1.2  NASA
1.3  CFO
1.4  NASA Centers
1.5  NASA Shared Services Center
1.6  Space Industry
1.7  Center-specific content
1.8  Summary

- Federal
- Legislative
- Executive
- 1.2  NASA
- 1.3  CFO
- 1.4  NASA Centers
- 1.5  NASA Shared Services Center
- 1.6  Space Industry
- 1.7  Center-specific content
- 1.8  Summary

- Agenda

## Legislative Governance

- Authorization & Appropriation Acts
- 2000 Reports Consolidation Act
- 1998 Federal Activities Inventory Reform (FAIR) Act
- 1996 Federal Financial Management Improvement Act (FFMIA)
- 1994 Government Management Reform Act (GMRA)
- 1993 Government Performance & Results Act (GPRA)
- 1990 Chief Financial Officers (CFO) Act
- -----------------------------------------------
- 1982 Federal Manager’s Financial Integrity Act (FMFIA)
- 1982 Prompt Pay Act
- 1978 Inspector General Act
- 1971 Legislative Reorganization Act
- 1950 Budget & Accounting Act
- 1921 Budget & Accounting Act
- 1870 Anti-deficiency Act
- 1787 U.S. Constitution

- _Focuses On_
- Accountability
- Statements/Perf.
- Sourcing
- Full Cost
- Statements
- Performance
- Systems

**Notes:**
Govt has only recently focused on financial accountability & reporting
Earlier infrequent legislation focused on budget & control matters
Now much if it is accounting and financial management-related

The most important of these acts is discussed in the next couple pages

## 1870 Anti-deficiency Act 
This was the first major effort by Congress to exert more control over Government expenditures
At the time, agencies frequently obligated more funds than they had been appropriated and then submitted "coercive deficiency" requests to Congress to pay their bills
The Anti-Deficiency Act provided that no department could make greater expenditures during a fiscal year than had been provided by Congress
In addition, the departments could not enter into contracts for the future payment of money in excess of appropriations 

1990 Chief Financial Officers (CFO) Act
Enacted to improve the financial management practices of the Federal government, and to ensure the production of reliable and timely financial information for use in managing and evaluating Federal programs
Title 1 – General Provisions
Title 2 – Establishment of Chief Financial Officers
Title 3 – Enhancement of Federal Financial Management Activities

- This was the first major effort by Congress to exert more control over Government expenditures
- At the time, agencies frequently obligated more funds than they had been appropriated and then submitted "coercive deficiency" requests to Congress to pay their bills
- The Anti-Deficiency Act provided that no department could make greater expenditures during a fiscal year than had been provided by Congress
- In addition, the departments could not enter into contracts for the future payment of money in excess of appropriations
**1990 Chief Financial Officers (CFO) Act**
- Enacted to improve the financial management practices of the Federal government, and to ensure the production of reliable and timely financial information for use in managing and evaluating Federal programs
- Title 1 – General Provisions
- Title 2 – Establishment of Chief Financial Officers
- Title 3 – Enhancement of Federal Financial Management Activities

- Legislative Governancecontinued

**Notes:**
Anti-Deficiency Act – this can and does happen today 
Contractor files a claim on a contract, takes years to settle, contract and obligations long expired, if successful, results in agency requirements for bills to be paid beyond amount of appropriation for those years
violations are reportable directly to the President

1990 CFO Act required audited statements for commercial activities
1990 CFO Act provided for establishment of CFOs in major federal agencies; previously
 NASA had Comptroller organizations
Arnold Holz, first NASA CFO
Political appointment; must submit resignation at end of President’s term
One of only 2-3 positions in the Agency requiring approval of Congress

## Anti-deficiency Act / Mandates

	“An officer or employee of the Unites States Government...may not...make or authorize an expenditure or obligation exceeding an amount available in an appropriation or fund...”     (31USC 1341)

	“If an officer or employee...violates section 1341...the head of the agency...shall report immediately to the President and Congress all relevant facts and a statement of actions taken.”     (31USC 1351)

	“An officer or employee knowingly and willfully violating section 1341...shall be fined not more than $5,000, imprisoned for not more than 2 years, or both.”			        (31USC 1350)

- 	“An officer or employee of the Unites States Government...may not...make or authorize an expenditure or obligation exceeding an amount available in an appropriation or fund...”     (31USC 1341)
- 	“If an officer or employee...violates section 1341...the head of the agency...shall report immediately to the President and Congress all relevant facts and a statement of actions taken.”     (31USC 1351)
- 	“An officer or employee knowingly and willfully violating section 1341...shall be fined not more than $5,000, imprisoned for not more than 2 years, or both.”			        (31USC 1350)

- Legislative Governancecontinued

**Notes:**
The “knowingly and willfully” part keeps our Administrator out of jail.  The instances where these things happen today are largely beyond the control of the agency (e.g. contract claims)

## 1993 Government Performance & Results Act (GPRA)
The broad intent of the legislation is to enhance the effectiveness, efficiency, and accountability of government programs by directing federal agencies to more singularly focus their management efforts on the results that are achieved, and away from such traditional concerns such as staffing and activity levels
Under GPRA, agencies must:
Set goals
Measure performance
Report on their accomplishments
Agencies must also ask and answer some basic questions: 
What is our mission? 
What are our goals and how will we achieve them? 
How can we measure performance? 
How will we use that information to make improvements? 

- The broad intent of the legislation is to enhance the effectiveness, efficiency, and accountability of government programs by directing federal agencies to more singularly focus their management efforts on the results that are achieved, and away from such traditional concerns such as staffing and activity levels
- Under GPRA, agencies must:
- Set goals
- Measure performance
- Report on their accomplishments
- Agencies must also ask and answer some basic questions:
- What is our mission?
- What are our goals and how will we achieve them?
- How can we measure performance?
- How will we use that information to make improvements?

- Legislative Governancecontinued

**Notes:**
Father of GPRA:  Al Gore
GPRA made all federal agencies tie its budget to performance objectives; publish performance reports
Precursor to the Bush Administrations’s “President’s Management Agenda” which still includes “Budget and Performance Integration” as it’s #5 agenda item

## 1994 Government Management Reform Act (GMRA)
The Government Management Reform Act of 1994 uses "reinventing government" principles to pursue improved Federal management
The act covers:
Audited agency financial statements
Cost of living raises
Annual leave accumulations
Electronic delivery of government payments
Franchise fund pilot program
Consolidating or eliminating reports that federal agencies make to Congress 
1996 Federal Financial Management Improvement Act (FFMIA)
Intended to advance Federal financial management by ensuring that Federal financial systems can and do provide reliable, consistent disclosure of financial data, and that they do so on a basis that is uniform across the Federal government from year to year consistently using professionally-accepted accounting standards

- The Government Management Reform Act of 1994 uses "reinventing government" principles to pursue improved Federal management
- The act covers:
- Audited agency financial statements
- Cost of living raises
- Annual leave accumulations
- Electronic delivery of government payments
- Franchise fund pilot program
- Consolidating or eliminating reports that federal agencies make to Congress
**1996 Federal Financial Management Improvement Act (FFMIA)**
- Intended to advance Federal financial management by ensuring that Federal financial systems can and do provide reliable, consistent disclosure of financial data, and that they do so on a basis that is uniform across the Federal government from year to year consistently using professionally-accepted accounting standards

- Legislative Governancecontinued

**Notes:**

GMRA tried to streamline and update the methods in which the government conducts business
Lots of IT initiatives
FFMIA gave rise to legions of consultants and auditors who came knocking on federal agencies’ doors to help us comply

## Legislative Key Players

**Legislative Key Players**

**110****th**** Congress**

**House**

**Senate**

**Authorizations**

**Appropriations**

**• ****Committee on Science and Technology****	**
**Chair- Bart Gorton (D-TN)**
**Ranking Minority –Ralph Hall (R-TX)****	**

**• ****Committee on Appropriations**
**	**
**Chair - David Obey (D-WI)**
**Ranking Minority -**
**	****Jerry Lewis (R-CA)**

**• ****Committee on Commerce, Science & Transportation  **
**Chair – Daniel Inouye**
** ****(D-HA)  **
**Co-Chair - Ted Stevens **
**(R-AK)****	**

**• ****Subcommittee on Commerce, Justice and Science**
**Chair –Barbara Mikulski (D-MD)**
**Ranking Minority - Richard Shelby (R-AL)**

**• ****Subcommittee on  Space, Aeronautics, and Related Sciences**
**Chair- Bill Nelson (D-FL)**
**	**
**Ranking Minority – David Vitter (R-LA)**

**• ****Subcommittee on Commerce, Justice, Science & Related Agencies**
**Chair – Alan Mollohan (D-WV)****	**
**Ranking Minority -**
**Rodney Frelinghuysen (R-NJ)**

**House**

**Senate**

***Conference***

**• ****Subcommittee on Space & Aeronautics**
**	**
**Chair- Mark Udall (D-CO**
**Ranking Minority - **
** ****Tom Feeney (R-FL)**

**• ****Committee on Appropriations**
**Chair – Robert Byrd (D-WV)**
**	**
**Ranking Minority -Thad Cochran (R-MS)**

***Reality***
***Specific Agency knowledge and direction is wielded by key staff persons ***

**Notes:**
The names in RED are those senators and congressmen who have a NASA Center in their state or district
Most of them are considered “friends of NASA”  
Appropriations side have more power, as they decide our budget levels

## Legislative Process - Authorization

- Authorization laws have two basic purposes:
- Establish, continue or modify federal programs
- Prerequisite under House and Senate rules (sometimes statute) for Congress to appropriate budget authority for programs
- Authorizations _*should*__ _precede the Appropriations process
- Authorization committees provide Congressional oversight of agency programs and plans
- Bills often include limits on the amount that can be appropriated for the program / agency
- Some programs / agencies are authorized annually, others for a specified number of years, or even indefinitely.
- Congress may enact appropriations for a program / agency even though there is no specific authorization for it (waive rules)

*Last NASA Authorization Bills: *
*FY 2000, FY 2005*

**Notes:**
We don’t need an approved Authorization Bill to proceed with appropriation and our mission activities
Authorization Cmte mostly advisory in nature

## Legislative Process - Appropriations Bill 

_**SENATE**_

- Hearings/Markup before
**Science, State, Justice and Commerce Subcommittee**

- Hearings/Markup before
**Commerce Justice and Science Subcommittee**

- Markup by
**Appropriations Committee**

- Markup by
**Appropriations Committee**

- Report

- Report

**FLOOR**

**FLOOR**

**Conference**

**President Signs or Vetoes Appropriations Bill  **

- Rules

- Legislative Process - Appropriations Bill

**Notes:**
This is a depiction of the appropriations process
Appropriation committees in both House and Senate
There are 13 appropriation bills to fund the entire federal government
NASA is in the “Science, State, Justice and Commerce” appropriation
This is new as of 2005.  Previously, NASA was under the “HUD, VA and Independent Agencies” appropriation.
Good move for NASA: for years, it was difficult justifying funds for International Space Station vs. urban housing subsidies and VA hospital funding

## Appropriation Process

- Provides budget authority to agencies (how much and for what)
- Desired Appropriation receipt is October 1 at beginning of fiscal year
- Allows an agency to incur obligations
- Originates in the House of Representatives
- A point of order can be raised on an appropriations bill containing funding for a program that is not authorized
- Appropriation segments
- Appropriation Bill: establishes funding to be used for a specific purpose
- Omnibus Bill: single bill covering various agencies or changes
- Continuing Resolutions: interim appropriation that provides funding to allow operations to continue on October 1 if appropriations have not been approved
- Level of spending equal to lower of: (1) Presidents Request, (2) Last years appropriation level, (3) Congress conference action
- Earmarks: funding set aside for a specific purpose, use or recipient

***DYK?***
*- The Treasury Department makes the cash payment on behalf of all agencies except DOD*
*- Agencies get approval from the appropriation to obligate/expend funds from the Treasury*

**Notes:**
Continuing Resolutions more the norm than the exception
Earmarks have been a particularly irksome problem for NASA over the last several years.  
Example:   ~$15B budget... .5B in earmarks

## Provide stop-gap funding for agencies that have not received a regular appropriation by the start of the FY
Omnibus continuing resolutions incorporate many or all regular appropriations bills into a single bill to finance agencies for an entire fiscal year
Continuing resolutions are enacted in the form of a joint resolution. 
Have the same legal effect as a regular appropriation
Limited in duration, scope and financing; no two CRs are alike:
Funding period specified; available until appropriation passed or time expired
Funds must be obligated before end of CR period.
Existing and ongoing work only; no new initiatives or program accelerations allowed
Funded by formula; lesser of House, Senate or ongoing rate

- Omnibus continuing resolutions incorporate many or all regular appropriations bills into a single bill to finance agencies for an entire fiscal year
- Continuing resolutions are enacted in the form of a joint resolution.
- Have the same legal effect as a regular appropriation
- Limited in duration, scope and financing; no two CRs are alike:
- Funding period specified; available until appropriation passed or time expired
- Funds must be obligated before end of CR period.
- Existing and ongoing work only; no new initiatives or program accelerations allowed
- Funded by formula; lesser of House, Senate or ongoing rate

- Legislative Process – Continuing Resolutions

**Notes:**
• Continuation Resolutions (CRs) have been required frequently to sustain government operations.  In 1987, the entire government operated under an Omnibus Continuing  Resolution".  In FY96, an Omnibus Appropriations Act also was used to fund 5 appropriations at reduced levels due to election year political impasse on the budget.   ( See definition above.)  This ended a string of 13 Continuing Resolutions and two government shutdowns/furloughs.. 
• Continuing Resolution funding levels are generally determined by formula (being the lesser of last years obligation level or the House or Senate passed version of the Appropriations Bill) prorated by the effective time period.  No new starts are allowed with funding only for existing on going efforts.  Specific guidance is provided in each case - NO TWO CRs ARE ALIKE!
• Funding under a CR remains until passage of a regular appropriations bill or expiration date, whichever comes first.   

## Legislative Process - Rescission

- Established by the Impoundment Control Act of 1974
- The act of rescission occurs when previously-appropriated funds are withheld from obligation permanently.
*Often used as a budget reduction tool*
*Can be proposed by Congress or President*
- Funds proposed for rescission have not historically served as a significant spending reduction tool.
*Since enactment of the ICA in 1974, Presidents*
*            **have proposed 1,172 rescissions totaling $75.8 billion dollars. *
*The Congress has accepted 459 of those proposals (39%), totaling $24.9 billion  **(33%). *
*During this period, Congress has initiated $104.8 billion in*
*            **rescissions to revise spending decisions.*

***DYK?***
*NASA recission in FY 2008 totaled $193 million *

**Notes:**
NASA received a recission in the FY 2008 Omnibus funding bill of $193 million (from prior year funds)
Based on large unobligated amount NASA carried out of FY 2007
The agency spread the amounts out among all Mission Directorate programs
More on unobligated situation in the agency in the Budget Execution section

- Legislative Earmarks

**Notes:**
As noted previously, earmarks have been a problem for NASA recently, particularly since FY 2000
FY06... almost 600 separate earmarks worth nearly $.5 million... all for activities, funding, grants, contracts, facilities, contributions, etc. which may or may not be related to our space mission, for which NASA never requested funds
Represents favors and “pork” for legislators
NASA is one of Sen. Robert Byrd’s favorite targets for his home state of West Virginia, but many senators and congressmen participate, even the “friends of NASA”  

## Budget Stages 

- Calendar yr	05	06	07	08	09	10

- Formulation	Advocacy	Execution	Audit/Evaluation

**07**

**08**

**09**

**10**

- (07 accountability report)

- (08 accountability report)

- 08  Performance
- Plan/budget  development

- 07 Performance
- Plan /budget development

- 09 Performance
- Plan/budget  development

- 10 Performance
- Plan /budget development

- (09 accountability report)

- 09 Submit to OMB

- 09 Budget to Congress
- The “baseline” for FY10 PPBE

- Appropriation bill signed or CR

- Budget Stages

**Notes:**
Depicts the different budget phases and the budgets simultaneously being developed, justified, executed, reported, audited.  

Draw a line down from the calendar year to “time now” and see that the FY10 budget is being developed, 09 advocated/justified, 08 executed, 07 executed and reported on....

## 1.1  Where the Buck Starts
Federal
Legislative
Executive
1.2  NASA
1.3  CFO
1.4  NASA Centers
1.5  NASA Shared Services Center
1.6  Space Industry
1.7  Center-specific content
1.8  Summary

- Federal
- Legislative
- Executive
- 1.2  NASA
- 1.3  CFO
- 1.4  NASA Centers
- 1.5  NASA Shared Services Center
- 1.6  Space Industry
- 1.7  Center-specific content
- 1.8  Summary

- Agenda

## Executive Offices

- Detailees, career, political

- Political

- Primarily career staff

**Notes:**
While we get many of the OMB circulars and management requirements from the OMB (the “M” part of OMB), our policy and direction largely comes from the OSTP (bottom left)
Federal science policy emanates from OSTP
Sometimes the direction is politically-motivated (e.g. global warming)

- “We are not here to mark
- time, but to make
- progress, to achieve
- results and to leave a
- record of excellence.”
*	**- President George W. Bush,   **	**October 15, 2001*

- Achieve **breakthrough**, not just marginal, improvements in management and program performance
- Five mutually reinforcing government-wide initiatives
**(1) ****	****Strategic Management of ****	****Human Capital**
**(2) ****	****Competitive Sourcing**
**(3) ****	****Improved Financial ****	****Performance**
**(4) ****	****Expanded Electronic ****	****Government**
**Budget and Performance**
**        ****Integration**

- Executive Direction:  Presidents Management Agenda (PMA)

**Notes:**
 5 government-wide initiatives in the PMA
#3 and #5 are of most importance to the CFO/Business community
More on PMA in Section 4.0

## Executive Branch Reporting Tool -Integrated Budget and Performance Document

- NASA’s President’s Budget request is displayed in a public document called the Integrated Budget and Performance Document (IBPD)
- According to OMB, Congressional justification should be in the form of a “performance budget” which should include:
- A description of what you plan to accomplish, organized by strategic goal;
- Background on what you have accomplished
- Performance targets for current and budget years and how you expect to achieve those targets; and
- What resources you are requesting to achieve the targets
- President’s budget is not binding on Congress...it is a request.  Limited shelf life!

**Notes:**
• IBPD is the format in which the NASA Budget is submitted
It directly corresponds to achievement of PMA item #5, integrating budget and performance

## Executive Branch Reporting Tool – Program Assessment Rating Tool

- The PART was developed to assess and improve program performance so that the Federal government can achieve better results.
- identifies a program’s strengths and weaknesses to inform funding and management decisions aimed at making the program more effective. The PART therefore looks at all factors, including program purpose and design; performance measurement, evaluations, strategic planning, program management and program results.
- NASA PART programs and their Ratings
- Constellation Systems  --  Adequate
- Human Systems Research and Technology --  Moderately Effective
- Integrated Enterprise Management -- Moderately Effective
- International Space Station -- Moderately Effective
- NASA Advanced Capabilities in Space Exploration -- Adequate
- NASA Aeronautics Technology -- Effective
- NASA Astronomy and Astrophysics Research -- Adequate
- NASA Earth-Sun System Research -- Moderately Effective
- NASA Education Program -- Results Not Demonstrated
- Solar System Exploration -- Effective
- Space and Flight Support -- Moderately Effective
- Space Shuttle -- Adequate

**Notes:**
The PART is the rating tool used by the Executive Branch (essentially OMB)
It is an assessment of the achievements of the IBPD
Although it does not visibly affect NASA’s budget request from the President, it likely has weight in the internal decision processes of NASA’s request
Many of the ratings appear to be somewhat arbitrary, mostly due to the fact that there is little to compare NASA’s work with
e.g.  What other “solar system exploration” programs are there to compare with NASA’s effectiveness?  
e.g.  Space Shuttle basis for comparison?
Notable
IEMP... moderately effective (system still not working smoothly)
Education... results not demonstrated
Space Shuttle... adequate

## A-11:  Preparation, Submission and Execution of the Budget
Part 1 – Provides an overview of the budget process
Discusses the basic laws that regulate the budget process and the terms and concepts you need to know to understand the budget process
Part 2 – Covers development of the President’s Budget and tells you how to prepare and submit materials required for OMB and Presidential review of agency requests and for formulation of the Budget, including development and submission of performance budgets
Part 3 – Discusses budget supplementals and amendments, rescission proposals and deferrals, and investments
Part 4 – Provides instructions on budget execution
Part 5 – Covers Federal credit programs
Part 6 – Describes requirements for strategic plans and annual program performance reports and provides an overview of the Performance Budget
Part 7 – Discusses planning, budgeting and acquisition of capital assets, and tells you how to prepare and submit information on new and past acquisitions
Part 8 – Supplementary materials 

_**Part 1**_ – Provides an overview of the budget process
- Discusses the basic laws that regulate the budget process and the terms and concepts you need to know to understand the budget process
_**Part 2**_ – Covers development of the President’s Budget and tells you how to prepare and submit materials required for OMB and Presidential review of agency requests and for formulation of the Budget, including development and submission of performance budgets
_**Part 3**_ – Discusses budget supplementals and amendments, rescission proposals and deferrals, and investments
_**Part 4**_ – Provides instructions on budget execution
_**Part 5**_ – Covers Federal credit programs
_**Part 6**_ – Describes requirements for strategic plans and annual program performance reports and provides an overview of the Performance Budget
_**Part 7**_ – Discusses planning, budgeting and acquisition of capital assets, and tells you how to prepare and submit information on new and past acquisitions
_**Part 8**_ – Supplementary materials

- OMB Circular A-11

**Notes:**
OMB Circular A-11 is the OMB direction on formulating, submitting and executing the budget

## A-11, Part 4 - Instructions on Budget Execution
Section 1:  Apportionment and Reapportionments
Apportionment/reapportionment process
SF 132, Apportionment and reapportionment schedule
Apportionments under continuing resolutions
Agency operations in the absence of appropriations
Section 2:  Budget Execution Reports
SF 133 Report on budget execution and budgetary resources
Section 3:  Other Reports
Procedures for monitoring Federal outlays
Reports on unvouchered expenditures
Requirements for reporting anti-deficiency violations
Administrative control of funds

**Section 1**:  Apportionment and Reapportionments
- Apportionment/reapportionment process
- SF 132, Apportionment and reapportionment schedule
- Apportionments under continuing resolutions
- Agency operations in the absence of appropriations
**Section 2**:  Budget Execution Reports
- SF 133 Report on budget execution and budgetary resources
**Section 3**:  Other Reports
- Procedures for monitoring Federal outlays
- Reports on unvouchered expenditures
- Requirements for reporting anti-deficiency violations
- Administrative control of funds

- OMB Circular A-11, Part 4

**Notes:**
Part 4 lays out the process for receiving funds and the reports the federal government requires on a regular basis
Apportionment is covered in Budget Execution; it describes the process for an agency to receive its distribution of its appropriated budget from OMB, who acts as the agent for the Department of Treasury

## Budget deliberations are internal 
Budget recommendation to OMB is administratively restricted
All personnel obligated to support President's Budget
Witnesses will give frank and complete answers to all questions
Witnesses will avoid volunteering personal opinions that reflect positions inconsistent with the President’s program or appropriation request
No discussions of the Agency’s request to OMB 

**Budget deliberations are internal **
**Budget recommendation to OMB is administratively restricted**
**All personnel obligated to support President's Budget**
**Witnesses will give frank and complete answers to all questions**
**Witnesses will avoid volunteering personal opinions that reflect positions inconsistent with the President’s program or appropriation request**
**No discussions of the Agency’s request to OMB **

**PER OMB CIRCULAR A-11**

- OMB - Rules of Engagement

**Notes:**
PER OMB CIRCULAR A-11
Budget deliberations within the Agency are an internal process, and are not to be discussed outside of the Agency.

The NASA budget recommendation to OMB is administratively restricted information  --  (available only to appropriate government officials who need to know).

Once the President has presented his budget recommendations to Congress, all members of the Executive Branch are obligated to support that budget.
Witnesses will give frank and complete answers to all questions and to support the President's budget decisions, even if they are counter to their personal recommendations or preferences.

The time between OMB budget submission (Sept) and the President’s Budget submission (February), no discussion of the proposed budget is to take place outside the agency

## A-123 - Management's Responsibility for Internal Control

Appendix A: 
Implementation Plans
Implementation Guide
Frequently Asked Questions
Appendix B:
Fraud, Waste and Error in Government Charge Card Programs
Credit Checks on All New Purchase and Travel Card Applicants
Appendix C:
Requirements for Effective Measurement and Remediation of Improper Payments

- Appendix A:
- Implementation Plans
- Implementation Guide
- Frequently Asked Questions
- Appendix B:
- Fraud, Waste and Error in Government Charge Card Programs
- Credit Checks on All New Purchase and Travel Card Applicants
- Appendix C:
- Requirements for Effective Measurement and Remediation of Improper Payments

- OMB Circular A - 123

**Notes:**
Internal Controls is a major “clean audit” issue for the agency
One of the 2 negative findings in our audit report issued by Ernst & Young accounting firm
A-123 spells out the agency responsibility for internal controls
Much more to come on Internal Controls in 2.0 Financial Management

## OMB – Federal Budget Outlays

- _NASA is here_

**Notes:**
The federal government counts its spending in “outlays”
Outlays are the actual debiting of the accounts of the U.S. Treasury
Not something the agency tracks or has control over
We use commitments, obligations, costs, disbursements, covered in other sections of CFO 101

Note where NASA’s .6% of the federal budget is located, in Discretionary spending.  
We annually compete for our share of the 18% of the federal budget

## NASA Budget as % of Federal Budget

**Notes:**
Chart shows a high of 3.8% to a low today of .5% of NASA’s portion of the federal budget
1970’s heyday was the Apollo era
Fell off rather quickly after the early 70’s to less than  1% and generally stayed in that range, even with the development of the space shuttle program in the late 70s, early 80’s

## 1.1  Where the Buck Starts
Federal
Legislative
Executive
1.2  NASA
1.3  CFO
1.4  NASA Centers
1.5  NASA Shared Services Center
1.6  Space Industry
1.7  Center-specific content
1.8  Summary

- Federal
- Legislative
- Executive
- 1.2  NASA
- 1.3  CFO
- 1.4  NASA Centers
- 1.5  NASA Shared Services Center
- 1.6  Space Industry
- 1.7  Center-specific content
- 1.8  Summary

- Agenda

## NASA Vision & Mission

- Our Mission
- 	To pioneer the future in space exploration, scientific discovery, and aeronautics research

- Our Vision
- 	Extending a human presence throughout the solar system

**Notes:**
You’ve all seen or know about the NASA vision (not supposed to use that term anymore for our Exploration activities); It’s used here in the generic NASA vision sense
In many ways our 3-part vision:  space exploration, scientific discovery and aeronautical research... compete with one another, through the many constituents, for our limited resources

## NASA’s Strategic Goalssource: NASA Strategic Plan - 2006

- _Strategic Goal 1_: Fly the Shuttle as safely as possible until its retirement, not later than 2010.
- _Strategic Goal 2_: Complete the International Space Station in a manner consistent with NASA’s International Partner commitments and the needs of human exploration.
- _Strategic Goal 3_: Develop a balanced overall program of science, exploration, and aeronautics consistent with the redirection of the human spaceflight program to focus on exploration.
- _Strategic Goal 4_: Bring a new Crew Exploration Vehicle into service as soon as possible after Shuttle retirement.
- _Strategic Goal 5_: Encourage the pursuit of appropriate partnerships with the emerging commercial space sector.
- _Strategic Goal 6_: Establish a lunar return program having the maximum possible utility for later missions to Mars and other destinations.

**Notes:**
These are NASA’s strategic goals straight out of the agency strategic plan
You’ve heard them before; seen the Administrator talk about them
They haven’t essentially changed since President Bush set the agency on a course toward exploration and return to moon and Mars, and haven’t essentially changed since 2004.

## Key Governance Documents

**Presidential Policy Directive**
**Vision for Space Exploration**
**January 2004**

**Exploration **
**Systems **
**Architecture **
**Study**

**NASA Strategic Plan**
**February 2006**

**Annual Budget Requests**

**National Aeronautics **
**& Space **
**Act of 1958**
**P.L. 85-568**
**July 1958**
**NASA Authorization Act**
**P.L. 109-155**
**December 2005**
**Annual Appropriations**

**NASA implements a balanced portfolio of space and aeronautics programs for the President and Congress within the resources provided **

**National Aeronautics **
**R&D Policy**
**December 2005**

**National Academy**
**of Sciences Reports**

**NASA Policy Regs,**
**Directives, **
**Fin Mgmt Reqmts**

**Notes:**
Starting with the Space Act in 1958, which created the agency, we take direction from a variety of laws and documents and create another group of documents which, for lack of a better word, documents what our plans, goals and objectives are
From the high-level President’s policy directive on the Vision for Space Exploration...... to the many financial and policy rules and regulations we must follow to properly spend the money to achieve those goals and objectives

## Slide 42

**Notes:**
This is the Agency organization chart
Note the offices reporting directly to the Administrator
4 mission directorates
Mission support offices include the OCFO
Lots of functions within Institutions & Management
10 Centers, which includes JPL (actually a contract arrangement)
10 healthy Centers has been a goal expressed by Mike Griffin throughout his tenure

## NASA Customers

**NASA**

**White House**

**Contractors / Vendors**

**International Partners**

**Outside Science **
**Community**

**Space Advocacy **
**Groups**

**Inspector General**

**General Public**

**Government Accountability Office**

**Office of Science**
**and Technology**
**Policy**

**Media**

**Office of **
**Management &**
**Budget (OMB)**

**Congress**

- Many masters to serve... limited resources

**US Treasury**

**Other Federal, State and Local Agencies**

**Science Community**

**Notes:**
Did we miss anybody...?  
A customer is defined as someone to whom to deliver a product.  In this sense, you can see we have lots of customers
I can only think of one group we might have missed, at least in this chart.  school children, who we have assumed an obligation to educate in math and the sciences

## NASA Resources

** ****Assets ****	****  $45 billion (net) **
** ****Workforce****	****  ~50,000 (18k CS & 32k on-site contr.) + 100k contractors**
** ****Organization****	****  HQ/Mission Directorates, 10 Centers **
** ****Workload****	****  40 Programs & 200 Projects **

**Space Operations**
**$6.8B**

**Aeronautics**
**$0.6B**

**Science**
**$5.5B**

**Exploration**
**Systems**
**$3.9B**

**Institution**
**$2.0B**
**(included in pgms)**

- 1.2

**Agency Suppt**
**$0.6B**

**Notes:**
Facts and figures about the agency

## NASA FY 2008 Budget 

- NASA FY 2008 Budget

*New budget structure for FY 2009 discussed in 3.0 – Resources Mgmt.*

**Notes:**
Here is the budget the agency has to work with
This is the FY 2008 President’s Budget
Also defined as “the good old days” where we had only 3 appropriations

## FY 2009 NASA Budget

**Notes:**
Note that for FY 2009, we now have 7 appropriations, listed in Black
Remember that each new budget year proposal comes with 4 years of runout budget estimates
Notable...
 Budget doesn’t keep with inflation (~3% and in actuality higher in the aerospace world); thus, less buying power
Level budget for science (robotic missions to Mars, Pluto, comets, earth-observing systems, etc)
Level but significantly reduced (from the past) budget for aeronautics
Redo acronym to NaSA
Exploration budget where the future $$$ is
Shuttle budget going to zero by 2012
ISS holding through FY 2016
CASP... new account contains much of the overhead/administrative requirements of the agency
IG is always a separate appropriation to maintain its independence

Bottom Line:  more $ than in the past... less actual spendable $

## NASA Funding

- 3 Appropriations (FY08)... 7 Appropriations (FY09)
- Most funds are available for obligation for _2 years_
- Exception:  Construction of Facilities (CofF) funding can be 3-year funding or no-year funding
- Requirements
- Must be accounted for separately
- Must be reported separately
- Funds are not interchangeable between appropriations
- Accounts controlled via Congressional Operating Plan (AOP) agreement with our authorizing and appropriating committees

**Notes:**
More appropriations leads to greater controls over spending
A challenge for budget operations
Nearly all our funds are good for obligation for 2 years
Exceptions:  some Construction of Facilities $

## Budget Strategic Priorities

**Source: NASA FY 2010 Strategic Planning Guidance**

- Highest priority on investments most critical to carrying out the Vision
- Meets commitments to International Partners in completing the ISS assembly
- Retires Shuttle no later than September 30, 2010
- Pursues commercial cargo capabilities for ISS
- Demonstrates Initial Operational Capability (IOC) for Orion Crew Exploration Vehicle by March 2015
- Maintain Science Growth at 1% and at inflation after FY 2012.
- Maintain 10 healthy centers and a workforce able to meet future challenges, distributing work to make the most efficient use of existing capabilities/facilities from an Agency perspective.

**Notes:**
Guidance from the SPG which kicked off the PPBE 10 process
Maintaining 10 healthy Centers is going to be a challenge, esp. when 4 of our 10 Centers were the traditional aeronautics Centers (LaRC, GRC, ARC, DFRC);  just pointed out the $.5 billion aeronautics budget being shared among them
These Centers are now moving into new arenas (Exploration)

## Planning, Programming, Budgeting and Execution (PPBE) Process

**Agency PPBE notional schedule**

**Notes:**
Notional PPBE schedule for the agency’s budget formulation process
7 month process for the Centers, with the other 5 months being dominated by HQS activities... then it starts all over again
Actually more like 18 months when one includes the congressional hearings, testimony, justification and advocacy of the budget

## NASA’s PPBE Process Takes 18 Months

**M**

**A**

**M**

**J**

**J**

**A**

**S**

**O**

**N**

**D**

**J**

**F**

**M**

**A**

**M**

**J/J**

**A**

**S**

**18 MONTHS**

**PRESIDENT**

**CONGRESS**

**•  ****Budget Resolution **

**•  ****Authorization Acts **

**•  ****Appropriation Acts**

**OMB**

**OMB**

**AGENCIES**

**AGENCIES**

**• ****Internal determination of requirements  **

**  ****and authorities **

**  ****-  Formation of budget recommendations**

**• ****Midyear update /  **

**   ****sequester report **

**•  ****Apportionment of **

**   ****appropriated funds**

**• ****Operating Plans **

**• ****Implementation of **

**   ****program **

**• ****Obligations **

**• ****Costs **

**• ****Outlays**

**• ****Final budget **

**approval **

**• ****Budget message to **

**  ****Congress**

**• ****Review and                  **

**integrate agency  **

**recommendations **

**   ****- Markup and **

**reclama process **

**• ****Secure final **

**determinations by **

**  ****President**

**O**

**PPBE 10**

**10 Appropriation **

**Notes:**
This chart begins our discussion of the steps involved in the budget process.  This process spans a long period of time, during which factors affecting the outcome can change.  In the spring and early summer,  OMB develops an overall approach for the coming budget and provides guidance to the agencies (the degree of guidance varies greatly year-to-year). In the meantime, agencies prepare their budget recommendations which are due to OMB, in most cases, on September 1. The OMB review takes place in the September-November period. OMB will usually give the Agency a tentative allowance in late November.  Normally, agencies are given a short deadline opportunity to appeal the decisions -- first to the director of OMB, then to a budget review board, and ultimately to the President. The President's final decision in December is the basis for the budget transmitted to the Congress in January or early February.

## PPBE Phases and Steps

**Notes:**
This chart is how the agency was introduced to its new budget process in the development of the FY 2009 agency budget
PPBE... much more on this subject in 3.0 Resources Management
More still in the CFOU course Budget Formulation

## 1.1  Where the Buck Starts
Federal
Legislative
Executive
1.2  NASA
1.3  CFO
1.4  NASA Centers
1.5  NASA Shared Services Center
1.6  Space Industry
1.7  Center-specific content
1.8  Summary

- Federal
- Legislative
- Executive
- 1.2  NASA
- 1.3  CFO
- 1.4  NASA Centers
- 1.5  NASA Shared Services Center
- 1.6  Space Industry
- 1.7  Center-specific content
- 1.8  Summary

- Agenda

## 1990 Chief Financial Officers (CFO) Act
Enacted to improve the financial management practices of the Federal government, and to ensure the production of reliable and timely financial information for use in managing and evaluating Federal programs
Title 1 – General Provisions
Title 2 – Establishment of Chief Financial Officers
Title 3 – Enhancement of Federal Financial Management Activities

- Enacted to improve the financial management practices of the Federal government, and to ensure the production of reliable and timely financial information for use in managing and evaluating Federal programs
- Title 1 – General Provisions
- Title 2 – Establishment of Chief Financial Officers
- Title 3 – Enhancement of Federal Financial Management Activities

- NASA CFO Governance

**Did You Know? **
- The CFO Act of 1990  established the requirement for federal agencies to establish Chief Financial Officers. Previous to that, NASA’s lead financial officer was the Comptroller.

## NASA CFO Organization Chart

**Center **
**Chief Financial Officers**

**Financial **
**Management **
** ****Division**
*Leslie Hyland*

**Business**
**Integration **
** ****Division **
*Daphne Jefferson*

**Budget **
**Division**
*David Schurr*

**Quality **
**Assurance**
** ****Division **
*Frank Petersen*

**Chief Financial Officer **
*Ronald Spoehel*

**Deputy **
**Chief Financial Officer **
*Terry Bowie*

**Notes:**
Top level organizational chart of the OCFO organization
Mr. Spoehel is a political appointee; all Center CFOs work for him

## Role of the Chief Financial Officer

- Agency CFO is the Corporate Officer responsible for:
- Financial risks of the agency
- Financial planning
- Record keeping
- Communicating financial performance and forecasts to our governance stakeholders

**Notes:**
Many roles of the past NASA CFO and Comptroller organizations have been assumed by the Agency Program Analysis & Evaluation (PA&E) office
Largely an integration and bookkeeping role
Major initiative:  obtaining a clean financial opinion from independent auditors

## Ensure all stakeholders clearly understand how NASA resources effectively and efficiently support NASA’s mission 
Provide Agency programs, projects and institutional management with financial knowledge, information, and tools to ensure effective program planning and decision-making
Enable the OCFO workforce to provide world-class management and processes in support of the Agency’s mission

- Provide Agency programs, projects and institutional management with financial knowledge, information, and tools to ensure effective program planning and decision-making
- Enable the OCFO workforce to provide world-class management and processes in support of the Agency’s mission

- OCFO Goals

## Responsible Stewards – Accountable and responsive to stakeholders for ensuring the optimal use of resources
Objective Advisors – Providing independent counsel to NASA decision-makers at all levels
Proactive Problem Solvers – Forward thinking in anticipating and addressing Agency-level issues
Effective Communicators – Advancing the open exchange of ideas, information, and knowledge
Respectful of Partners – Working in concert with others inside and outside the Agency to achieve NASA’s mission
Leaders in Excellence – Promoting best practices in all that we do.
Committed to Our People – Supporting the professional growth and development of our staff

**Objective Advisors** – Providing independent counsel to NASA decision-makers at all levels
**Proactive Problem Solvers** – Forward thinking in anticipating and addressing Agency-level issues
**Effective Communicators** – Advancing the open exchange of ideas, information, and knowledge
**Respectful of Partners** – Working in concert with others inside and outside the Agency to achieve NASA’s mission
**Leaders in Excellence** – Promoting best practices in all that we do.
**Committed to Our People** – Supporting the professional growth and development of our staff

- OCFO Operating Principles

## Internal
Agency managers
Mission Directorate managers
Center managers
Program / Project managers
Functional managers
Employees
External
Public / Taxpayers
Congress / GAO
White House / Office of Management & Budget
Department of the Treasury
Inspector General
Space, Science & Aeronautic interest groups
Media
Vendors / Contractors
Other federal, state & local agencies

- Agency managers
- Mission Directorate managers
- Center managers
- Program / Project managers
- Functional managers
- Employees
**External**
- Public / Taxpayers
- Congress / GAO
- White House / Office of Management & Budget
- Department of the Treasury
- Inspector General
- Space, Science & Aeronautic interest groups
- Media
- Vendors / Contractors
- Other federal, state & local agencies

- CFO Customers

**Notes:**
Service 
Mission success thru service/control 
Plan, Pay, Report & Control
Professionalism
Develop staff commensurate with requirements
Continuous Learning 
Information Technology
Quality information thru integrated system capabilities 
Standardization (process & data) Integration & Internet
Efficiency
Mission & administrative efficiencies thru cost management 
Accountability
	 Full accountability thru performance/financial reports 
	Financial and Performance/Results, Metrics
             Not just you spent it.  How well, What did you get?
             How can you do better? How  does that link to your mission?
             Can someone else Private/Academics do better?
	Plan do review, Budget Account Report
	Say what you do Do what you say Prove it!

## 1.1  Where the Buck Starts
Federal
Legislative
Executive
1.2  NASA
1.3  CFO
1.4  NASA Centers
1.5  NASA Shared Services Center
1.6  Space Industry
1.7  Center-specific content
1.8  Summary

- Federal
- Legislative
- Executive
- 1.2  NASA
- 1.3  CFO
- 1.4  NASA Centers
- 1.5  NASA Shared Services Center
- 1.6  Space Industry
- 1.7  Center-specific content
- 1.8  Summary

- Agenda

##  NASA Field Centers

- Ames Research Center
- Moffett Field, California

- Jet Propulsion Lab
- Pasadena, California

- Dryden Flight Research Center
- Edwards AFB, California

- Glenn Research Center
- Cleveland, Ohio

- NASA Headquarters
- Washington DC

- Langley Research Center
- Hampton, Virginia

- Goddard Space Flight Center
- Greenbelt, MD

- Marshall Space Flight Center
- Huntsville, Alabama

- Johnson Space Flight Center
- Houston, Texas

- Kennedy Space Center
- Cape Canaveral, Florida

** **NASA Field Centers

- Stennis Space Center &
- NASA Shared Services  Ctr
- Mississippi

- Wallops Flight
- Facility

**Notes:**
Each Center is highlighted individually 
NASA’s origin dates back to 1917 when the Langley Aeronautical Memorial Laboratory was established in S.E. Virginia under the National Advisory Committee for Aeronautics, or NACA.  
It’s likely not by accident that the space program operations are disbursed throughout the country in an effort to gather nationwide constituents and support for the mission of the agency
Mention each Center and its location

## NASA Center Missions

**NASA Headquarters **
- NASA Headquarters, located in
- Washington, D.C., exercises management over the space flight centers, research centers, and other installations that constitute NASA.

**Ames Research Center**
- Ames Research Center specializes in research
- geared towards creating new knowledge and
- new technologies that span the spectrum of
- NASA interests.

**Dryden Flight Research Center** As the lead for flight research, Dryden continues to innovate in aeronautics and space technology. The newest, fastest, the highest -- all have made their debut in the vast, clear desert skies over Dryden.

**Glenn Research Center **Glenn Research Center develops and transfers critical technologies that address national priorities through research, technology development, and systems development for safe and reliable aeronautics, aerospace, and space applications.

**Goddard Space Flight Center **The mission of the Goddard Space Flight Center is to expand knowledge on the Earth and its environment, the solar system, and the universe through observations from space.

**Jet Propulsion Laboratory **The Jet Propulsion Laboratory, managed by the California Institute of Technology is NASA's lead center for robotic exploration of the Solar System.

**Johnson Space Center **From the early Gemini, Apollo, and Sky Lab projects to today's Space Shuttle and International Space Station programs, Johnson Space Center continues to lead NASA's effort in Human Space Exploration.

**Kennedy Space Center **Kennedy Space Center is America's Gateway to the Universe -- leading the world in preparing and launching missions around the Earth and beyond.

**Langley Research Center **Langley continues to forge new frontiers in aviation and space research for aerospace, atmospheric sciences, and technology commercialization to improve the way the world lives.

**Marshall Space Flight Center **Bringing people to space; bringing space to people. Marshall Space Flight Center is world leader in the access to space and use of space for research and development to benefit humanity.

**Stennis Space Center **Stennis is responsible for NASA's rocket propulsion testing and for partnering with industry to develop and implement remote sensing technology.

**Notes:**
Here’s a synopsis of what each center does

## A Brief History of Johnson Space Center

- The Center's famed Mission Control Center, or MCC, has been the operational hub of every American human space mission since Gemini IV. The MCC manages all activity onboard the space station and directs all space shuttle missions, including station assembly flights and Hubble Space Telescope servicing.  The MCC is set aside as a national historic facility.

- A Brief History of Johnson Space Center

## A Brief History of Ames Research Center

- The first firm mention of the center that became NASA Ames appeared 66
- years ago, on Dec. 30, 1938, in a report presented to Joseph S. Ames, chair of theNational Advisory Committee for Aeronautics.  Ames had encouraged NACA committeemembers to anticipate America’s entry into the second world war. So, they formed a NACA special committee on future research facilities to study if the Langley Memorial Aeronautical Laboratory could be expanded and, if not, where a second laboratory should be built.  After considerable study, based on an exhaustive earlier Navy survey, the report proposed “a second major aeronautical research station by NACA on the present Army field in Sunnyvale, California.” President Roosevelt approved the plan quickly.  Congress approved funding for construction at Moffett Field. Groundbreaking for the first permanent Ames building (now N210) was in late February 1940.

- A Brief History of Ames Research Center

## A Brief History of Glenn Research Center

- A Brief History of Glenn Research Center

## A Brief History of Kennedy Space Center 

- On July 29, 1958, President Dwight D. Eisenhower signed _[Public Law 85-568 ](http://www.nasa.gov/offices/ogc/about/space_act1.html)__, creating the National Aeronautics and Space Administration, also known as NASA. In July 1962, the agency established its Launch Operations Center on Florida's east coast, and renamed it in late 1963 to honor the president who put America on the path to the moon. __NASA's John F. Kennedy Space Center has helped set the stage for America's adventure in space for more than four decades. The spaceport has served as the departure gate for every American manned mission and hundreds of advanced scientific spacecraft. From the early days of Project Mercury to the space shuttle and International Space Station, from the Hubble Space Telescope to the Mars Exploration Rovers, the center enjoys a rich heritage in its vital role as NASA's processing and launch center._

- A Brief History of Kennedy Space Center

## A Brief History of Dryden Flight Research Center

- A Brief History of Dryden Flight Research Center

## A Brief History of Marshall Space Flight Center 

- President Eisenhower addressed guests and employees of the new NASA organization that had resulted from the Army transfer of 4,670 civil service employees and 1,840 acres of Redstone Arsenal property and facilities worth $100 million. The new NASA center was named for the late General George C. Marshall. Mrs. Marshall was among those who joined the President at the dedication. Dr. Wernher von Braun, who became the Center's first Director, also participated.
- The Marshall Center had been activated on July 1, 1960, as part of NASA, which had been established on October 1, 1958, by Congressional passage of the National Aeronautics and Space Act and charged with conducting the Nation's space exploration programs.

- A Brief History of Marshall Space Flight Center

## A Brief History of Stennis Space Center 

- In October 1961, a historic announcement was made: the federal government had selected an area in Hancock County, Miss., to be the site of a static test facility for launch vehicles to be used in the Apollo manned lunar landing program.  It was the largest construction project in the state of Mississippi and the second largest in the United States at that time.
- SSC has undergone a number of name changes. Its original name, Mississippi Test Operations, was changed to Mississippi Test Facility in 1965. In 1974, the facility was named the National Space Technology Laboratories reporting to NASA Headquarters in Washington, D.C.
- In May 1988, it was renamed the John C. Stennis Space Center in honor of U.S. Sen. John C. Stennis for his steadfast leadership and staunch support of the nation's space program.

- A Brief History of Stennis Space Center

## A Brief History of Langley Research Center 

- In April of 1920, President Wilson concurred with NACA's suggestion that the facility be named "Langley Memorial Aeronautical Laboratory" in honor of Dr. Samuel P. Langley (1834-1906), the third Secretary of the Smithsonian Institution, and the facility was officially dedicated 11 July 1920. Until the establishment of Ames and Lewis (Now Glenn Research Center at Lewis Field) in the 1940s, Langley was NACA’s only aeronautics research facility.
- Langley Laboratory's first wind tunnel, a replica of a ten-year-old British design, became operational in June 1920. The tunnel was the first of a series opened at the site. In 1930, the world’s first full-scale tunnel was built on the site. Since that time, the Harrier VTOL fighter, the F-16, the American supersonic transport, the Space Shuttle and Lunar Landing Test Vehicle have all been tested in the facility, which is still in use today, modified to allow new testing procedures.  In 1948, the center’s name was changed from Langley Memorial Aeronautical Laboratory to simply Langley Aeronautical Laboratory. On 1 October 1958 the laboratory, as a NACA facility, became a component of the National Aeronautics and Space Administration and was officially renamed "Langley Research Center."

- A Brief History of Langley Research Center

## A Brief History of Goddard Space Flight Center 

- A center for theoretical research was established in 1961 as the New York office of the Theoretical Division of Goddard Space Flight Center. In July 1962 it was separated organizationally from the Theoretical Division and renamed "Goddard Institute for Space Studies." It worked closely with academic scientists in the New York area.

- A Brief History of Goddard Space Flight Center

## A Brief History of Jet Propulsion Lab

- Reorganized in November 1944 under the name "Jet Propulsion Laboratory," the facility continued postwar research and development on tactical guided missiles, aerodynamics, and broad supporting technology for U. S. Army Ordnance.
- JPL was transferred from Army jurisdiction to NASA’s control in December 1958 shortly after the establishment of the new organization. However, NASA’s contractual arrangement with the California Institute of Technology for the performance of research and development at JPL began in 1962. Currently, JPL is a government-owned facility located 32 km northeast of Los Angeles.

- A Brief History of Jet Propulsion Lab

## Center CFOs

- ARC – Paul Agnew
- DFRC – Robert Gardner
- GRC – Debra Watson
- GSFC – Cyprian Ejiasa
- JSC – John Beall
- JPL – Dale Johnson
- KSC – Susan Kroskey
- LARC – Kenneth Winter
- MSFC – Pam Cucarola
- SSC – James Bevis

**Notes:**
Most are relatively new (within the last 5 years)
CFOs work directly for the OCFO
Can be a somewhat complicated relationship with the Center Director, and the need for the CFO to serve 2 masters
Movement in the last 10 years to appoint those with a financial management background to CFO (vs. budget or other management professions)

## Center CFO Responsibilities 

- Budget (Plan, analyze, justify, control & advise)
- Plan Manage, Consolidate & Defend Budgets (Formulate Budgets)
- Monitor Financial Performance (Execute Budgets)
- Control fund allocations
- Account (Record, control, report & advise)
- Account for transactions
- Report financial results
- Pay bills pursuant to laws/contracts, certify payments
- Pay employees
- Other (Systems, controls & evaluations)
- Review program/service cost estimates
- Analyze/consult on financial matters
- Manage/implement integrated financial systems
- Provide timely & useful information for decision making
- Assure fiscal compliance (inc. NASA Financial Mgt. Manual/Regs)

**Notes:**
CFO office is responsible for these functions 

## 1.1  Where the Buck Starts
Federal
Legislative
Executive
1.2  NASA
1.3  CFO
1.4  NASA Centers
1.5  NASA Shared Services Center
1.6  Space Industry
1.7  Center-specific content
1.8  Summary

- Federal
- Legislative
- Executive
- 1.2  NASA
- 1.3  CFO
- 1.4  NASA Centers
- 1.5  NASA Shared Services Center
- 1.6  Space Industry
- 1.7  Center-specific content
- 1.8  Summary

- Agenda

## NASA Shared Services Center (NSSC)

- NSSC is an innovative public-private partnership
-      between NASA, the States of Mississippi and
-      Louisiana, and a service provider, Computer
-      Sciences Corporation
- Opened for business in March 2006 at Stennis Space Center
- Consolidates transactional services to achieve efficiencies for cost reduction
- The NSSC is performing a phased consolidation of select business and technical services that are performed at multiple Centers across the Agency into one single, shared services center
- Consolidation allows the NSSC to increase operational efficiency and provide a consistent level of customer service

**Notes:**
Consolidation of “back room” services to NASA employees
Awarded to Mississippi after nationwide competition

NSSC Vision:   “Unparalleled service”
 NSSC Mission:  “to provide timely, accurate and customer focused support for selected NASA business and technical services”

## Financial Responsibilities of the NSSC

- Within Financial Management, NSSC performs
- Employee travel (foreign & domestic)
- Employee relocation services
- Payroll
- Accounts payable (2008)
- Accounts receivable (2008)
- Financial statements (2008)
- The NSSC processes AP, AR, travel, and payroll for each of the NASA Centers, Headquarters, and the NSSC
- The NSSC:
- Develops and maintains appropriate internal controls based on generally accepted accounting principles and NASA policy
- Collects information, reconciles data, and provides support to respond to requests
- Performs periodic reconciliations as required by NASA policy and procedures
- Prepares financial reports
- Performs fiscal year end and new year activities

**Notes:**
AP, AR and financial statements are the latest financial management functions to migrate to NSSC (2008)
Not unique to NASA, government or business
DoI has been processing NASA cs payroll for years
Prior to that USDA provided the same service
Many businesses have the “business center” concept for these functions

## NSSC Services

- Other NSSC functions
- HR (personnel actions; training requests processing; awards)
- Procurement (grants, SBIR, STTR management)
- IT (ODIN program management)
- Contact the NSSC
- 1 Telephone (1-877-NSSC123)
- 2 Send an E-mail to nssc-contactcenter@nasa.gov
- 3 Submit a Web inquiry
- 4 Contact Center Liaison

**Notes:**
NSSC also provides services for HR, procurement and IT
They 

## 1.1  Where the Buck Starts
Federal
Legislative
Executive
1.2  NASA
1.3  CFO
1.4  NASA Centers
1.5  NASA Shared Services Center
1.6  Space Industry
1.7  Center-specific content
1.8  Summary

- Federal
- Legislative
- Executive
- 1.2  NASA
- 1.3  CFO
- 1.4  NASA Centers
- 1.5  NASA Shared Services Center
- 1.6  Space Industry
- 1.7  Center-specific content
- 1.8  Summary

- Agenda

## Industry Partnerships

- NASA does not accomplish its mission alone
- > 100,000 contractors, subcontractors, vendors, universities, etc. in partnership with NASA
- Locations nationwide
- Provides economic impact much greater than its totals in the local, regional and state geographic locations

## NASA Procurement Activity

**FY****	****	****NASA Obs****	****Procurement Obs****	****	****%**
- FY 2007	$17.7 B		$14.4 B		81%
- FY 2006	$17.8 B		$15.8 B		89%
- FY 2005	$18.1 B		$15.3 B		85%
- FY 2004	$16.0 B		$13.5 B		84%

*Message:  Successful completion of NASA’s mission is highly leveraged through its industry partners.  80-90% of our work is procured from and conducted by our industry partners*

## Top NASA Contractors - FY 2007

- United Space Alliance			      $1,822 million
- Lockheed Martin					804
- Jacobs Technology				563
- ATK Launch Systems				561
- Boeing Co					516
- Pratt & Whitney Rocketdyne			372
- SAIC						357
- Honeywell Technology				303
- Space Gateway Services				278
- Northrup Grumman				248
- Russian Space Agency				100

## Current Trends in the Space Industry

- Space research, exploration, technology used to be the sole domain of NASA
- Several factors have been changing the environment since the mid-1980s...
- Federal space commercialization policies
- NASA failures
- Emerging new space-related industries
- International cooperation & competition
- State spaceports
- Partnerships

**Notes:**
LAWS
1984 Commercial Space Launch Act (Landsat)
1988 CSLA Amendments (ELVs)
DOT has Office of Space commercialization office

COUNTRIES
Kerou, Fr Guiana
ESA
ISS partners
Japan
China

INDUSTRY
Spacehab
Space X
X-Prize
Virgin Galactic

STATES
CA
NM
VA

## 1.1  Where the Buck Starts
Federal
Legislative
Executive
1.2  NASA
1.3  CFO
1.4  NASA Centers
1.5  NASA Shared Services Center
1.6  Space Industry
1.7  Center-specific content
1.8  Summary

- Federal
- Legislative
- Executive
- 1.2  NASA
- 1.3  CFO
- 1.4  NASA Centers
- 1.5  NASA Shared Services Center
- 1.6  Space Industry
- 1.7  Center-specific content
- 1.8  Summary

- Agenda

## 1.1  Where the Buck Starts
Federal
Legislative
Executive
1.2  NASA
1.3  CFO
1.4  NASA Centers
1.5  NASA Shared Services Center
1.6  Space Industry
1.7  Center-specific content
1.8  Summary

- Federal
- Legislative
- Executive
- 1.2  NASA
- 1.3  CFO
- 1.4  NASA Centers
- 1.5  NASA Shared Services Center
- 1.6  Space Industry
- 1.7  Center-specific content
- 1.8  Summary

- Agenda

## NASA Business Environment Summary

- The authority to spend federal money on behalf of the taxpayers comes with a host of legal and regulatory conditions
- The NASA budget remains <1% of the federal total with many customers to satisfy
- The Office of the CFO is a service organization which assists the Agency to achieve its mission while maintaining fiduciary responsibility on behalf of the taxpayers
- The space industry is rapidly changing to a greater commercial role.