Assessment of alternative funding models for activities in RDECOM (now CCDC) and ATEC / Drake Warren [and 5 others].

Format:

Book

Author/Creator:

Warren, Drake E., author.

Contributor:

Arroyo Center. Forces and Logistics Program, sponsoring body.

Rand Corporation, publisher.

United States. Army, sponsoring body.

Language:

English

Subjects (All):

Armed Forces--Accounting.

Armed Forces--Appropriations and expenditures.

United States. Army--Appropriations and expenditures.

United States.

United States. Army--Accounting.

United States. Army.

Other Title:

Assessment of Alternative Funding Models for Activities in RDECOM

Place of Publication:

Santa Monica, Calif. RAND Corporation 2020

Summary:

In 2016, the Office of the Under Secretary of Defense (Comptroller) (OUSD[C]) asked the military departments to minimize reimbursable civilian personnel costs to increase the transparency of accounting practices and improve auditability. The OUSD(C) guidance focuses on minimizing reimbursables because they make transactions between organizations less transparent and harder to trace. Along with financial and accounting considerations, the authors' assessment considered how the current reimbursement models and several alternative funding models at two Army commands—the U.S. Army Research, Development, and Engineering Command (RDECOM, renamed the Combat Capabilities Development Command [CCDC] in February 2019) and the U.S. Army Test and Evaluation Command (ATEC)—impact those commands, their customers, and the Army. The authors have the following recommendations: that RDECOM and ATEC continue to operate within their current reimbursement models and that the commands pursue improvements to their current funding models that would allow them to address stakeholder financial and accounting concerns without the drawbacks and risks of alternative funding models. This report should be of most interest to organizations in the Department of Defense that have been asked to minimize reimbursable civilian personnel costs. In addition, the report will be of general interest to government organizations seeking a better understanding of internal transfer pricing, including examples of how transfer pricing is used and the strengths and weaknesses of different mechanisms.

Contents:

Introduction

Overview of Funding Models Used by RDECOM and ATEC

Overview of Funding Models Used Across DoD

Criteria for Assessing Funding Models

Assessments of Alternative Funding Models

Improved Accounting Practices

Remaining Challenges and Analyses

Appendix A: RDECOM Funding Overview

Appendix B: ATEC Funding Overview

Appendix C: Indirect Budget Processes at RDECOM and ATEC

Appendix D: RDECOM "Net Zero" Analysis

Appendix E: Overview of Previous Studies and Efforts Within DoD

Appendix F: Funding Models Used Across DoD Intramural RDT & E Organizations

Appendix G: Overview of Auditability, Transparency, and Appropriateness in DoD

Appendix H: Assessment of Financial Auditability Requirements

Appendix I: Required Actions to Transition to Alternative Funding Models

Appendix J: Price Impact Calculations

Appendix K: Use Cases

Appendix L: Additional Details About Some Potential Improvements

Appendix M: Evaluation of Alternative Courses of Action

Appendix N: Potential Hybrid and Dual-Funded Working Capital Fund Approaches

Appendix O: Discussions and Visits.

Notes:

Print resource.