# Presentation: 330196

##  The Budget Process 

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

-  The Budget Process

- Tim GroenTeam LeaderResource Management Team6 November 2007

## This Presentation:
Foreign Aid Reform and State Department Technology:  What’s New?
How Does the New Process Relate to Grants?
Overview of PM/WRA Funding.

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- This Presentation:
- Foreign Aid Reform and State Department Technology:  What’s New?
- How Does the New Process Relate to Grants?
- Overview of PM/WRA Funding.

## Foreign Aid Reform:  What’s New?
Creation of a Director of U.S. Foreign Assistance (F).
Has authority over all State and USAID foreign assistance funding and programs.
Directs consolidated policy, planning, budget, implementation, and performance measurement mechanisms.
The “F” Process.

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- Foreign Aid Reform:  What’s New?
- Creation of a Director of U.S. Foreign Assistance (F).
- Has authority over all State and USAID foreign assistance funding and programs.
- Directs consolidated policy, planning, budget, implementation, and performance measurement mechanisms.
- The “F” Process.

## Foreign Aid Reform:  What’s New? Cont.
Transformational Diplomacy.
Renewed focus on moving countries forward.
Operational Plans.
More input from the field.
The Foreign Assistance Framework.
Establishes a basis for ‘graduating’ countries from USG assistance.
Five Objectives and five Country Categories.

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- Foreign Aid Reform:  What’s New? Cont.
- Transformational Diplomacy.
- Renewed focus on moving countries forward.
- Operational Plans.
- More input from the field.
- The Foreign Assistance Framework.
- Establishes a basis for ‘graduating’ countries from USG assistance.
- Five Objectives and five Country Categories.

## The Foreign Assistance Framework:
Five Objectives:
Peace and Security.
Governing Justly and Democratically.
Investing in People.
Economic Growth.
Humanitarian Assistance.
Five Country Categories:
Rebuilding.
Developing.
Transforming.
Sustaining Partnership.
Restrictive.

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- The Foreign Assistance Framework:
- Five Objectives:
- Peace and Security.
- Governing Justly and Democratically.
- Investing in People.
- Economic Growth.
- Humanitarian Assistance.
- Five Country Categories:
- Rebuilding.
- Developing.
- Transforming.
- Sustaining Partnership.
- Restrictive.

## State Department Technology:  What’s New?
DoS has adopted a new integrated financial management system – the Global Financial Management System (GFMS).  
A new financial management system, together with a new process for obtaining funds, did result in slower than normal processing times in FY2007.

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- State Department Technology:  What’s New?
- DoS has adopted a new integrated financial management system – the Global Financial Management System (GFMS).
- A new financial management system, together with a new process for obtaining funds, did result in slower than normal processing times in FY2007.

## Question:  How does the new Foreign Assistance Framework and the F process affect the annual appropriations process and PM/WRA planning, project approval, and execution?

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

## The annual appropriations process is largely unchanged.
Fiscal Year:  1 October through 30 September.
Continuing Resolutions.
Sets spending for a specific period of time.
Stopgap measure until final agreement is reached.
Continues policies of last appropriation.
In general – no new projects.  

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- The annual appropriations process is largely unchanged.
- Fiscal Year:  1 October through 30 September.
- Continuing Resolutions.
- Sets spending for a specific period of time.
- Stopgap measure until final agreement is reached.
- Continues policies of last appropriation.
- In general – no new projects.

## The funding approval process within the Department has changed.
Prior to an appropriation enacted by Congress.
F approves allocations under a Continuing Resolution.
After an appropriation enacted by Congress.
F approves allocations for specific countries and projects.
OMB apportions funding to DoS Resource Management (RM) upon request from F.
RM allots funding to PM/WRA.
PM/WRA obligates.

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- The funding approval process within the Department has changed.
- Prior to an *appropriation *enacted by Congress.
- F approves *allocations *under a Continuing Resolution*.*
- After an* appropriation* enacted by Congress.
- F approves *allocations* for specific countries and projects.
- OMB *apportions* funding to DoS Resource Management (RM) upon request from F.
- RM *allots* funding to PM/WRA.
- PM/WRA *obligates*.

## The planning process within PM/WRA is changing.
Starting in FY2008, PM/WRA will have to participate in creation of new Department wide Operational Plans and Performance Reports.
These two documents will strengthen the links between funding, activities, and results; and between Washington and the field.
PM/WRA will be increasingly tied to and affected by other Departmental policies and goals.
Starting in FY2009, PM/WRA hopes to eliminate the separate funding account structure we currently have.
PM/WRA would no longer receive separate allotments for SA/LW, Humanitarian Demining, and the International Trust Fund.
We would have only one account – Conventional Weapons Destruction (CWD) – which would streamline invoicing, draw-downs, and accounting.

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- The planning process within PM/WRA is changing.
- Starting in FY2008, PM/WRA will have to participate in creation of new Department wide Operational Plans and Performance Reports.
- These two documents will strengthen the links between funding, activities, and results; and between Washington and the field.
- PM/WRA will be increasingly tied to and affected by other Departmental policies and goals.
- Starting in FY2009, PM/WRA hopes to eliminate the separate funding account structure we currently have.
- PM/WRA would no longer receive separate allotments for SA/LW, Humanitarian Demining, and the International Trust Fund.
- We would have only one account – Conventional Weapons Destruction (CWD) – which would streamline invoicing, draw-downs, and accounting.

## Timeline of Key Events:  
June through October:
Programs obligate their FY2007 funds.
Congress passes FY2008 Foreign Operations Bill.
Preparation of FY2009 budget request.
October through December:
Operating Units (like PM/WRA) work on Operational Plans for FY2008 and Performance Reports for FY2007.
Negotiations with OMB on FY2009 budget request and preparation of FY2009 Congressional Budget Justification.
October through September (2008):  
Programs continue to expend their FY2007 and other old year funds.
Either under a Continuing Resolution, or after an appropriation, programs obligate their FY2008 funds.
January (2008) through February:
Submission of FY2009 budget request to Congress.
Three budget years for every calendar year.

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- Timeline of Key Events:
- June through October:
- Programs obligate their FY2007 funds.
- Congress passes FY2008 Foreign Operations Bill.
- Preparation of FY2009 budget request.
- October through December:
- Operating Units (like PM/WRA) work on Operational Plans for FY2008 and Performance Reports for FY2007.
- Negotiations with OMB on FY2009 budget request and preparation of FY2009 Congressional Budget Justification.
- October through September (2008):
- Programs continue to expend their FY2007 and other old year funds.
- Either under a Continuing Resolution, or after an appropriation, programs obligate their FY2008 funds.
- January (2008) through February:
- Submission of FY2009 budget request to Congress.
- Three budget years for every calendar year.

## Three Budget Years to One Calendar Year.  In CY2007, we are:
Obligating and expending our FY2007 funds.
Submitting the President’s FY2008 Budget Request (Jan-Feb); Congress is acting on it, and as early as October – we can begin implementation.
Preparing the President’s FY2009 Budget Request from the Department to OMB.

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- Three Budget Years to One Calendar Year.  In CY2007, we are:
- Obligating and expending our FY2007 funds.
- Submitting the President’s FY2008 Budget Request (Jan-Feb); Congress is acting on it, and as early as October – we can begin implementation.
- Preparing the President’s FY2009 Budget Request from the Department to OMB.

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

## Question from a Grant Recipient:  How does the State Department’s internal timeline affect me?

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

## There are two types of grants awarded by PM/WRA:
Sole Source Grants in support of Goals and Objectives
Humanitarian Demining Effort 
Small Arms/Light Weapon Destruction 
Competitive Grants directed at specific topics of interest

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- There are two types of grants awarded by PM/WRA:
- Sole Source Grants in support of Goals and Objectives
- Humanitarian Demining Effort
- Small Arms/Light Weapon Destruction
- Competitive Grants directed at specific topics of interest

## If you have been notified you are receiving a grant under current year (FY2008) funding (or hope to be):
Try to plan for projects so they do not need to start (or expire) early in the Fiscal Year – funds may not be available.
Have your paperwork ready for when funding does arrive (Proposal and SF424 = approved amount)
There may be instances where DoS is ‘waiting’ to receive funding prior to awarding a grant.
DoS personnel will be particularly busy in the July-September time period.

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- If you have been notified you are receiving a grant under current year (FY2008) funding (or hope to be):
- Try to plan for projects so they do not need to start (or expire) early in the Fiscal Year – funds may not be available.
- Have your paperwork ready for when funding does arrive (Proposal and SF424 = approved amount)
- There may be instances where DoS is ‘waiting’ to receive funding prior to awarding a grant.
- DoS personnel will be particularly busy in the July-September time period.

## If you are a Sole Source Grantee:
Best time of the year for you to begin planning:  January-March for work you would do the following year.
This allows for sufficient discourse between PM/WRA and you; and for PM/WRA to adequately plan and secure funding.
Coordination with the GOR is necessary to ensure you meet desired timelines

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- If you are a Sole Source Grantee:
- Best time of the year for you to begin planning:  January-March *for work you would do the following year.*
- This allows for sufficient discourse between PM/WRA and you; and for PM/WRA to adequately plan and secure funding.
- Coordination with the GOR is necessary to ensure you meet desired timelines

## Overview of PM/WRA Budget:

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- Overview of PM/WRA Budget:

## Overview of PM/WRA Budget:
FY2007:  $81,002,000.
Humanitarian Demining, the ITF, and the Iraq Supplemental:  $64,835,000.
SA/LW:  $16,167,000.
FY2008:  $121,206,000.
A higher percentage of this money is for SA/LW activities than in previous years.

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- Overview of PM/WRA Budget:
- FY2007:  $81,002,000.
- Humanitarian Demining, the ITF, and the Iraq Supplemental:  $64,835,000.
- SA/LW:  $16,167,000.
- FY2008:  $121,206,000.
- A higher percentage of this money is for SA/LW activities than in previous years.

## How PM/WRA distributed foreign assistance dollars in FY2007:
Grants:  		50.43%
Contracts:  		34.18%
ITF:  		 	10.67%
Other:  		  4.72%
Total:	        	       100.00%

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- How PM/WRA distributed foreign assistance dollars in FY2007:
- Grants:  		50.43%
- Contracts:  		34.18%
- ITF:  		 	10.67%
- _Other:  __	__	__  4.72%_
- Total:	        	       100.00%

## Summary:
New Faces.
New Changes.
New Challenges.
Expanded Operations.
Questions?

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- Summary:
- New Faces.
- New Changes.
- New Challenges.
- Expanded Operations.
- Questions?

## For more information on foreign assistance reform:  
www.state.gov/f
Contact Information:
Tim Groen
Team Leader, Resource Management Team
PM/WRA
(202) 663-0107
groentr@state.gov

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- For more information on foreign assistance reform:
- _[www.state.gov/f](http://www.state.gov/f)_
- Contact Information:
- Tim Groen
- Team Leader, Resource Management Team
- PM/WRA
- (202) 663-0107
- groentr@state.gov

## Backup Slides

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

## Peace and Security:
Program Area 1.3 Stabilization Operations and Security Sector Reform:
1.3.3 Destruction and Security of Conventional Weapons.
Destruction of At-Risk Conventional Weapons.
Physical Security and Stockpile Management.
Destruction of Man-Portable Air Defense Systems (MANPADS)
1.3.4 Explosive Remnants of War
Demining and Mine Risk Education.
Removal/Destruction of Abandoned/Unexploded Ordnance.

- _BUREAU OF POLITICAL-MILITARY AFFAIRS_

- Peace and Security:
- Program Area 1.3 Stabilization Operations and Security Sector Reform:
- 1.3.3 Destruction and Security of Conventional Weapons.
- Destruction of At-Risk Conventional Weapons.
- Physical Security and Stockpile Management.
- Destruction of Man-Portable Air Defense Systems (MANPADS)
- 1.3.4 Explosive Remnants of War
- Demining and Mine Risk Education.
- Removal/Destruction of Abandoned/Unexploded Ordnance.