DEPARTMENT OF THE AIR FORCE

Thomas N. Barnes Center for Enlisted Education (AETC)

Maxwell AFB, AL 36118

1 Oct 13

NONCOMMISSIONED OFFICER ACADEMY

STUDENT GUIDE
PART I
COVER SHEET
LESSON TITLE: UM06, RESOURCE STEWARDSHIP
TIME: 3 Hours
METHOD: Guided Discussion, Experiential Exercises, and Independent Assignments
REFERENCES:
Air Force Instruction (AFI) 36-2618, The Enlisted Force Structure, 27 Feb 09.
AFI 23-111 (vol. 1), Management of Government Property in Possession of the Air Force,
25 Jul 05.
AFI 38-204 (vol. 1), Programming USAF Manpower, 1 Aug 99.
AFI 38-101, Air Force Organization, 4 Apr 06.
AFI 38-201, Determining Manpower Requirements, 30 Dec 03.
AFI 38-202, Air Force Management Headquarters and Headquarters Support Activities, 1
Mar 95.
AFI 38-203, Commercial Activities Program, 20 Jun 08.
AFI 38-204, Programming USAF Manpower, 1 Aug 99.
AFI 38-205, Manpower & Quality Readiness and Contingency Management, 18 Jun 02.
AFI 38-301, Productivity Enhancing Capital Investment Program, 20 Nov 09.
AFI 38-401, The Air Force Innovative Development through Employee Awareness (IDEA)
Program, 12 Nov 07.
AFI 38-501, Air Force Survey Program, 12 May 10.
AFI 65-601, (vol. 1), Budget Guidance and Procedures, 3 Mar 05.
AFI 65-601 (vol. 2), Financial Management, Budget Management for Operations, 21 Oct
94.
AFI 65-601 (vol. 3), Financial Management, The Air Force Budget Corporate Process, 1
May 98.
AFMAN 38-208 (vol. 1), Air Force Management Engineering Program (MEP)
Processes, 29 Mar 02.
AFMAN 38-208 (vol. 2), Air Force Management Engineering Program (MEP)Quantification Tools, 19 Nov 03.

AFMAN 38-208 (vol. 3), Air Force Management Engineering Program-Logistics

Composite, 1 Mar 95.
AFPAM 38-102, Headquarters United States Air Force Organization and Functions
(chart book), 1 Jan 04.
AFPD 65-6, Financial Management, Budget, 1 May 98.
Kinicki & Kreitner, Organizational Behavior: Key Concepts, Skills, and Best Practices.
Fourth Edition, The McGraw-Hill Companies, 2009.
United States Air Force Fiscal Year Budget Overview, 2011.
U.S. Department of Defense official website, Statement by Secretary of the Air Force
Michael Donley and Chief of Staff of the Air Force Gen. Norton Schwartz on
Efficiencies (released 6 January 2011), http://www.defense.gov/releases
/release.aspx?releaseid=14181 (accessed 5 Apr 11).
STUDENT PREPARATION:
1. Read the student guide (6,800 words, approximately 60 minutes)
PART IA
GENERAL LEARNING OUTCOME: Students who graduate from the NCOA are
better prepared to lead and manage units, as evidenced by their comprehension of resource
stewardship.
SUPPORTED COMPETENCIES/DIRECTIVES:
The Resource Stewardship lesson supports the following AF Institutional Competency:
Organizational Managing Organizations and Resources
The Resource Stewardship lesson provides information necessary to effectively execute
AFI 36-2618, The Enlisted Force Structure.
TERMINAL COGNITIVE OBJECTIVE: Comprehend Resource Stewardship and its
impact on mission success.
TERMINAL COGNITIVE SAMPLES OF BEHAVIOR:
1. Explain the impact of Resource Stewardship on mission success.
2. Give examples of the impact of Resource Stewardship on mission success.
3. Predict the impact of Resource Stewardship on mission success.

AFFECTIVE OBJECTIVE: Value Resource Stewardship.

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PART IB
ORGANIZATIONAL PATTERN: Topical
LESSON OUTLINE:
CONTENT
INTRODUCTION: Attention, Motivation, and Overview
MP 1. Resource Stewardship
MP 2. Finance 101
MP 3. Manpower 101
MP 4. Resources: use only as directedand available
MP 5. Developing future resource stewards
CONCLUSION: Summary, Remotivation, and Conclusion

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PART II
STUDENT READING
Before 2011, Enlisted Professional Military Education did not teach Resource
Stewardship. So why now? First, Resource Stewardship is one of the Air Force
Institutional Competencies. According to the competencies, at the NCO level, you are
charged with achieving both basic and intermediate proficiency levels in Resource
Stewardship. This means that, as NCOs, you must be able to indentify, acquire, and
conserve resources needed to accomplish the mission. You must also be able to adhere to
timelines and milestones set for mission accomplishment and use resources as
directed/available. NCOs must also be able to prepare staff and unit, as well as procure
and manage resources to ensure mission success.
Second, even though in the past, the enlisted force (especially junior and mid-level
enlisted) had little to nothing to do with finance or manpower, that has changed and is still
changing. Although the concepts discussed here are somewhat complex, they are
necessary because the Air Force has recognized that staff sergeants, technical sergeants,
and master sergeants all need to become more knowledgeable on financial and manpower
processes earlier in their career. The knowledge you gain here at the NCO Academy on
Resource Stewardship will not only help you in your current rank and position, but will
prepare you for future roles as you will be expected to project and advocate for funding
and manning resources. And finally, it will benefit the Air Force over the long term as the
enlisted force gains competence in Resource Stewardship.
INTRODUCTION
Remember as children when our parents and
elders asked us to turn off the faucet when
not using the water or turn off the lights
when leaving a room. Conserving these and
other valuable resources is an action we all
learned early in life and those basic
principles serve us well today as Air Force
leaders and managers. As members of
management, we are ever-challenged to
conserve, preserve, and defend the resources
critical to accomplishing our mission. Our
personnel and the necessary funding are
more than just commodities; they are the
lifeblood that enables our Air Force to fulfill
its indispensable commitment to defend the
American People and its allies. Secretary of
the Air Force, Michael Donley and Chief of
former Staff of the Air Force, Gen. Norton
Schwartz commented on the Air Forces
commitment to efficiency:

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Figure 1, Defining Resource

Our nation and this department are facing fiscal challenges and growing
operating expenses for fuel, maintenance, health care, salaries and training.
Fiscal responsibility is a national security imperative. We are committed to a
deliberate and ongoing process to enhance capabilities by reducing overhead and
support functions and shifting resources to warfighter and readiness programs.1
According to AFI 36-2618, The Enlisted Force Structure, the primary focus of the NCO
tier is mission accomplishment. Operating at the tactical expertise level, SSgts and TSgts
accomplish the mission as effectively and efficiently as possible using available personnel
and resources.2 They are charged to properly and effectively use all resources under their
control to ensure the mission is effectively and efficiently accomplished and also
responsible for their subordinates development and the effective accomplishment of all
assigned tasks.3 The efforts of todays NCO are critical in supporting the NCOs
responsibilities to ensure money, facilities, and other resources are utilized in an effective
and efficient manner and in the best interest of the Air Force.4
RESOURCE STEWARDSHIP
Resource Stewardship is the careful and responsible management of resources under ones
control. For the NCO, this requires the efficient and effective use of assigned personnel,
financial, material, warfare, information and technology, and energy to ensure mission
success. To assist in understanding the concept of resource stewardship, lets first examine
the resources we are responsible for.
Personnel: Considered our most valuable resource, the appropriate amount (and
mix) of skilled and qualified individuals provides the workforce necessary for
organizations to meet ongoing and future mission requirements. Training and
development plans, institutional programs and processes, along with support
organizations are integrated to assist in effectively managing personnel.
Financial: This is the resource that is required in order to procure the material,
warfare, information and technology, and energy we need to accomplish our
missions. Understanding how the financial systems and processes work is critical
to the NCOs ability to ensure their Airmen have what they need to successfully
complete their missions both at home station and deployed locations.
Material: Are the physical goods that are required by our personnel to complete
their assigned duties. This is a vast category that includes natural and man-made
resources to include:
Natural:

Man-made:

Agriculture

Clothing

Air

Food

Land

Office/Industrial equipment

Water

Plastic

Wood

Vehicles

Warfare: To meet todays national security strategy objectives; funding,

procuring, maintaining, and updating war-related materials are a top military
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priority. Our warfighters deserve the best training, most-advanced materials (e.g.,
training equipment, body armor, and armored personnel carriers), and information
technologies available to fly, fight, and win in todays asymmetric combat
environment.
Information and Technology: We currently operate in a virtually limitless
information age where we rely heavily on the computation and communication
capabilities of todays information systems and technological advancements. Some
innovations we depend on daily include Internet with small, portable devices,
including cell phones, personal digital assistants (PDAs) such as the BlackBerry,
computers, e-mail, Broadband, radar, satellite systems, and the World Wide Web.
Energy: Energy is the critical force that powers businesses, manufacturing, the
transportation of goods and services, and our equipment, facilities, motor vehicles,
and aircraft. Energy supply and demand plays an increasingly vital role in our
national security and the economic output of our nation. It is not surprising that the
United States spends over 500 billion dollars annually on energy.5
Nonrenewable:

Renewable:

Oil (petroleum)

Biomass (organic energy)

Natural gas

Hydropower (water energy)

Coal

Solar (suns energy)

Uranium (nuclear)

Wind

FINANCE 101
Time is considered our most valuable and perishable resource; if you dont effectively
use it, youll lose it. Same goes for the allocated funds and personnel you have assigned to
your work centers. To procure, conserve, maintain, or increase these resources, we
incorporate schedules, processes, and periodic cycles into our daily responsibilities to
ensure we meet the deadlines associated with the effective management of our assigned
assets to meet our mission objectives. However, these administrative tools are only as
good as our understanding of them. Lets first examine the processes that assist us in
financial resource management.
We spend allocated funds via appropriation. In other words, we set aside money for
specific purposes. Every year, monies are allocated for military personnel costs such as
pay and allowances, permanent change of station and temporary duty assignments, and
medical care. In addition, appropriated monies fund training, research, and development,
weapon system procurement, military construction projects, and overseas contingency
expenses. One key appropriation is known as Operations and Maintenance (O&M) funds.
This includes funding for mobilization, recruiting, training, administration, and service
wide activities, civilian salaries, operating and maintaining an installation, environmental
restoration, and a myriad of other costs associated with day-to-day Air Force operations.
Though it is important to know all of the information mentioned above, as NCOs we are
most concerned with O&M appropriations because that is where we receive the funds
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necessary to accomplish our day-to-day responsibilities.

Budget Process
The budget process is a perpetual cycle of planning, programming, revising, adjusting, and
spending. Each cycle lasts one fiscal year (FY) which begins on 1 October and ends on 30
September of the following year. Each FY is divided into quarters and specific actions
take place within each quarter as outlined in Figure 2 below.
Consider a budget as a system of timelines and milestones. The budget cycle (1 Oct - 30
Sep), as well as each quarter within the cycle, offers concrete dates for determining,
analyzing, and prioritizing budgeting actions and decisions. Along the same lines, each
budget cycle includes several milestones such as quarterly spending targets, financial
execution plan submissions, and end-of-year close out.

Figure 2, Budget Cycle

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Although hundreds of actions and decisions occur throughout the budget cycle, NCOs are
most concerned with the Budget Execution Review (BER) process, financial execution
plans, and hitting budget spending targets. The BER drives most current year spending
and the following years execution plan. Before we look at the BER, we must first fully
understand the budget cycle; lets examine that process next.
First Quarter
October: About the only thing that happens in October is that the AF receives its funding
authorization, which comes in the form of actual funds or a Continuing Resolution
Authority (CRA). Once the AF receives its funding, it disperses it throughout the service
(MAJCOMs, etc). The Financial Execution Plan (FEP) must be developed and approved
prior to 30 September in order to be ready to implement on 1 October for the new FY.
November: On or about 1 November, cost centers begin working their first BER. It is
typically the units Resource Advisor (RA) who does this. He/she begins collecting
information from each section on their unfunded needs. This is where NCOs become an
important part of the budget process. Between mid-November and the end of December,
the RA finalizes the units BER inputs in preparation for the Wings Financial Working
Groups (FWG) first BER meeting in mid-January.
December: By the end of December, units (including each section) should have either
spent or obligated 25% of their budget. Sections who have not achieved this milestone
must justify why and, if they cannot justify why, are in danger of losing unused funds
during the first BER process.
Second Quarter
January: In mid-January, the Wings FWG holds its first BER. It is during this meeting
that all unfunded requests are considered and prioritized (racked and stacked). Also
during the meeting, decisions are made to re-allocate (take from one unit and give to
another) funds to cover the unfunded requests based on priorities assigned. This is why it
is important to have either spent or obligated 25% of your funds or risk losing them during
the BER. Also in January, usually near the end of the month, cost centers submit inputs
for the next FYs FEP. This is another time when NCOs become an important part of the
budget process because they must submit justification for existing baseline expenses and
project any known unfunded mission-related expenses and submit justification for them.
March: By the end of March, units (including each section) should have either spent or
obligated 50% of their budget. Sections who have not achieved this milestone must justify
why and, if they cannot justify why, are in danger of losing unused funds during the
second BER process. In addition, sections will be prompted by the RA to begin compiling
unfunded requests in preparation for the second BER.
Third Quarter
April: Sections continue to compile unfunded requests in preparation for the second BER.
May: The RA finalizes the units BER inputs. The Wings FWG holds its second BER,
typically mid-May.
June: By the end of June, units (including each section) should have either spent or
obligated 75% of their budget. Sections who have not achieved this milestone must justify
UM06SG - 8

why and, if they cannot justify why, are in danger of losing unused funds during the first
BER process. Also, near the end of June, units begin receiving warnings that the Wings
FWG will take control of unspent or unobligated funds by 1 August (typically).
Fourth Quarter
July: At this point, units should have spent or obligated all but 25% of their budget. Units
who have not achieved this milestone typically scramble at this point to spend the money.
August: End-of-year closeout begins on 1 August and runs through 30 September. As
stated earlier, it is on 1 August when the FWG takes control of all unspent and unobligated
funds across the Wing. Again, this is where the NCO is an important part of the budget
process. Most have heard the term fallout money. This refers to unobligated and unspent
funds discovered between mid-August and 30 September. Fallout money is typically used
to purchase items that may or may not be in direct support of the mission and are usually
nice to have (e.g. furniture, carpet, etc). This is when the unit RA begins asking sections
for inputs for requesting fallout money.
September: This is probably the most frantic month of the budget cycle. The entire Wing
is attempting to use all unspent or unobligated funds. Wings who fail in this endeavor risk
losing any unspent/unobligated portion of their budget the next FY. Units, and especially
sections, should have spent and/or obligated 100% of their budget by 30 September.
Budget Execution Review (BER)
Although we spend weeks developing a perfectly sound financial execution plan, more
often than not, unforeseen expenses pop up and throw our budget completely off track. Or,
we know about the expense but our current year budget isnt large enough to cover it.
Fortunately, the BER exists to help us through both situations.
The BER is a two-part process that occurs twice within each budget cycle. The first part
requires every level of command to identify, validate, and prioritize its unfunded
requirements, and then submit them to higher headquarters for funding consideration. The
second part requires each level of command to review and prioritize (rack and stack) all
subordinate command unfunded requirements. This allows all levels of command to move
funds around to cover funding shortfalls deemed top priority. Though the process is
tedious, and can be very frustrating at times, it is necessary to ensure prudent use of limited
funds.
Most of us have been involved in this process in some way or another. Some of us have
received fall-out money and did the happy dance because we were able to purchase the
supplies and equipment needed to accomplish the mission more efficiently. On the other
hand, many of us have watched while other sections, squadrons, groups, even wings reaped
the benefits of fall-out money. Getting unfunded requests funded is not difficult for those
willing to put in the time and effort to justify requirements and to meet submission
deadlines.
Although justification usually comes from current mission requirements, it can also come
from changes in mission and/or unexpected or unforeseen mission-related circumstances.
In addition, a good financial execution plan helps get unfunded requests funded because it
demonstrates solid planning, programming, and prudent use of existing funds.
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Financial Execution Plan (FEP)

Given the publics demand for prudent financial management, the financial execution plan
is an Air Force product used to balance available funding while delivering goods and
services to customers within the Operations and Maintenance (O&M) appropriation. Put
another way, it ensures funds provided in the Presidents Budget (PB) are distributed in a
manner to ensure Air Force objectives can be accomplished. At the lowest practical level,
the financial execution plan is used by all levels of an organization to identify and
prioritize key requirements to current year spending and for developing next years budget.
Despite mission differences, most organizations financial execution plans include the
same basic requirements. These include government purchase card (GPC) items,
equipment purchases, personnel training and development, and temporary duty expenses.
Most organizations also have information technology costs such as the purchase, repair, or
replacement of computers, printers, copiers, monitors, and maintenance and service
contracts. Other common areas include civilian pay, building maintenance, and custodial
service contracts.
A well-developed plan includes a prioritized and justified list of known, funded
requirements and a list of known but unfunded requirements with justification. A spend
plan projects when and how funds will be spent throughout the fiscal year. Although there
is no official template when creating a financial execution plan, they should include:
Section 1: Mission-Critical Requirements: Lists all mission-critical requirements
funded within the projected fiscal years budget along with the element of expense
investment code (EEIC) associated with each requirement.
Section 2: Justification: This is a short narrative justifying each requirement
identified in Section I.
Section 3: Unfunded Requirements: Another list identifying mission-essential
requirements that exceed projected funding. Again, include a narrative justifying each
requirement.
Section 4: Spend Plan: Illustrates how projected funds will be spent over a 12-month
fiscal year period.
So far, weve covered the budget process and financial execution plans, both of which are
important to meeting the timelines and milestones of mission success. However, to ensure
your spend plan is in accordance with congressional mandates, lets examine the
Antideficiency Act.
Antideficiency Act (ADA)6
The Antideficiency Act (ADA) is a law where Congress exercises its constitutional control
over the public purse. The act requires agencies that have violated its rules to report to the
President and Congress all relevant facts and a statement of actions taken. The act further
requires agencies to transmit a copy of each report to the Comptroller General on the same
date the report is transmitted to the President and Congress.
The fiscal principles underlying the ADA are really quite simple. Government officials
may not make payments or commit the United States to make payments at some future
time for goods or services unless there is enough money in the "bank" to cover the cost in
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full. The "bank," of course, is the available appropriation. Specifically, military and
civilian employees are prohibited from:
1. Making or authorizing expenditure from, or creating or authorizing an obligation
under, any appropriation or fund in excess of the amount available in the appropriation
or fund unless authorized by law. 31 U.S.C. 1341(a) (1) (A). In other words, do not
obligate your unit to spend more than it has been authorized and do not spend money
on unauthorized items or purchase items, contracts, resources, supplies, and so forth
from the wrong pot of money. For example, using operation and maintenance money
to purchase unit coins and tee-shirts to give to family members during the annual
picnic (see more examples below).
2. Involving the government in any obligation to pay money before funds have been
appropriated for that purpose, unless otherwise allowed by law. 31 U.S.C. 1341(a)
(1) (B). Simply put, do not spend, or obligate funds in anticipation of receiving them.
3. Accepting voluntary services for the United States, or employing personal services
not authorized by law, except in cases of emergency involving the safety of human life
or the protection of property. 31 U.S.C. 1342.
4. Making obligations or expenditures in excess of an apportionment or
reapportionment, or in excess of the amount permitted by agency regulations. 31
U.S.C. 1517(a).
Military and civilian employees who violate the ADA are subject to appropriate
administrative and punitive measures including, when circumstances warrant, suspension
from duty without pay or removal from office. In addition, those who "knowingly and
willfully" violate any of the provisions cited above shall be fined not more than $5,000,
imprisoned for not more than 2 years, or both. Other measures include admonishments,
reprimands, and adverse performance reports.
Ones good intentions are no defense for violating the ADA. There are numerous
examples of military personnel who have received administrative and punitive actions for
knowingly, and unknowingly, disobeying this directive.
One example from 2008 involves the Air War College (AWC) who used O&M funds
to purchase light refreshments for a regional studies event hosted by the AWC. Here,
members spent approximately $21,000 over a 5-year period and were responsible for
violating U.S.C. Title 31 which specially prohibits the purchase of light refreshments
with O&M funds. One individual received a letter of counseling and the other elected
to retire in lieu of disciplinary action.
This makes you wonder how many events you have attended where the units used O&M
funds to purchase refreshments. Below are other examples where NCOs are susceptible to
violating the Antideficiency Act.
Business Cards: Professionally-made cards are typically limited to recruiters and
investigators; others may buy card stock and use office printing equipment to make
cards.
Coins: Buying unit designated coins as mementos to give to family members of
deployed personnel would not be proper. Generally, O&M funds may be used for
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purchases that support an award for excellence in accomplishment or competition.

T-Shirts: The purchase of T-shirts for sports competitions is authorized as long as such
competitions are of a continuing nature.7 However, buying shirts for all unit personnel
in attendance is not authorized. Purchases are limited to shirts presented to winners in
support of unit sporting events.
Out-of-Cycle Use: Using unfunded money to purchase items, equipment, supplies,
services, and contracts that will be used or begin in the following FY is prohibited.
Terms and Definitions Associated with Finance 101
1. Antideficiency Act (ADA): Prohibits from involving the government in a contract or
obligation for the payment of money before an appropriation is made unless authorized
by law. Prohibits against over obligating or overspending an appropriation.
2. Antideficiency Act Violations: An act that results in exceeding limitations [misuse] of
funds authorized and appropriated by Congress in support of contract obligations.
3. Budget Allocation: Funding document, which represents cash for commitment or
obligation that is issued by the Secretary of the Air Forces Financial Management
Board (SAF/FMB) to a major command or field operating agency.8
4. Budget Allotment: Similar to a budget allocation except that it is issued by major
commands or field operating agencies to subordinate units.9
5. Continuing Resolution Authority (CRA): Fiscal law authority that allows the
government to continue operations at a minimum level for a specific amount of time,
usually a few days to a few weeks. This is important for NCOs to know because it
usually delays the initial distribution of funds. During CRA, units typically receive
funding authority for approximately 80% of the previous years budget amount. A
CRA is needed to prevent agencies from shutting down because without it, agencies
have no authority to incur fiscal obligations.
6. Cost Center (CC): The organization that gathers and distributes cost data.10
7. Cost Center Manager (CCM): Regulates the daily use of work hours, supplies,
equipment, and services in producing or doing things. Also, continually monitors the
relationship between resources used and products produced to allow for informed
resource realignments.11
8. Financial Execution Plan (FEP): Formally called Financial Plan or Fin Plan, the basic
purpose of the FEP submission is to ensure an equitable distribution of the President's
Budget (PB) for the next fiscal year (budget year) consistent with accomplishing Air
Force program objectives. The FEP is the main vehicle for distributing anticipated
funding (direct & reimbursable) in an equitable manner. All organizational levels
contribute their corporate knowledge and expertise.12
9. Financial Management Board (FMB): The senior advisory committee chaired by the
Commander or Deputy Commander and includes group commander level members and
the Comptroller (at installations), Directors, and special staffs (at commands). The
FMB approves budgets, financial plans, and revisions. The FMB also distributes the
annual funding, establishes priorities, and ensures consistency with programs and
UM06SG - 12

missions. FMB approval represents the final, approved installation or command

budget submitted to higher command and the final distribution of funds received from
higher command. The chairperson calls FMB meetings. The FMB retains minutes for
review by higher authority.13
10. Financial Working Group (FWG): Reviews program and cost factors, compares actual
with prior year costs, reviews justifications, periodically evaluates performance against
estimates, and submits a recommended financial plan to the FMB. The Comptroller or
the financial analysis officer chairs the Financial Working Group (FWG) and
designates appropriate resource advisors and other members to comprise the FWG.14
11. Milestones Associated with Budgeting Process: Significant events in the budgeting
process. (CRA, BER, End-of-Quarter, Close-out, etc.)
12. Obligation: A legal binding agreement between the government and another party.
The Air Force has entered a contractual obligation; however, no goods or services have
yet been received.
13. Program Objective Memorandum (POM): Biennial memorandum submitted to the
Secretary of Defense from each Military Department and Defense agency. It proposes
total program requirements for the next six years. It includes rationale for planned
changes from the approved Future Years Defense Program baseline within the Fiscal
Guidance issued by the Secretary of Defense.15
14. Resource Advisors (RA): Budget representative for an organization. The resource
advisor participates actively in resource management, including the planning,
programming, budgeting, acquiring, consuming, storing, and disposing of resources.
And, is directly responsible to the RCM.16
15. Responsibility Center Manager (RCM): The RCM normally heads an organization that
plans, organizes, directs, and coordinates activities of subordinate organizations and
functions. RC managers are the principal level that manages financial resources. The
RC manager directs work by subordinate functions (usually, CCs) that, in turn, use
resources to do that work. Also, appoints a resource advisor (usually at the squadron or
group organizational level) to oversee technical details of operations relating to
resource use.17
16. Timelines Associated with Budgeting Process: Submission deadlines associated with
quarterly and annual budget requirements.

UM06SG - 13

MANPOWER 101
The four Air Force manpower competencies are: Organization Structure, Program
Allocation and Control, Requirements Determination, and Performance Management.
Organization Structure: This competency deals with the functionality of organizations,
specifically activation, inactivation, redesignation, and reorganization. The Organizational
Change Request (OCR) is the instrument used to activate, inactivate, redesignate, or
reorganize organizations.
Program Allocation and Control: This competency centers on the Unit Manpower
Document and funded and unfunded position requirements.
a. Unit Manpower Document (UMD): This computer product details the
organization structure, (the number, skills, and grade and security requirements of
manpower authorizations), the position number for each authorization and other
pertinent data commanders and managers need to manage manpower resources. Any
change to the UMD requires a formal Authorization Change Request (ACR see
below), signed by the appropriate commander.
Note: The UMD does not reflect personnel assigned (faces). See the Unit
Personnel Management Roster (UPMR) for faces in spaces.
b. Funded Requirement: Authorized and funded position needed to accomplish the
assigned workload. Funded manpower positions are allocated by category (officer,
enlisted, and civilian). Given the fact that requirements have always exceeded
available funding, commanders first prioritize requirements and then allocate funding
to the highest priority.
c. Unfunded Requirement: Authorized, but unfunded positions needed to
accomplish the assigned workload.
Requirements Determination: This competency centers on the Authorization Change
Request (ACR) which is a multi-purpose instrument used to propose adjustments to a Unit
Manpower Document. ACRs are commonly used to request increases, decreases, or
realignments of manpower requirements and/or to change attributes on the UMD.
When your organizational mission changes, it may prompt an adjustment to one, some, or
many of the positions listed on the UMD. For instance, consider the Vehicle Operations
position (space), Position Number: 003287450J in the UMD (Table 1 Attachment 1).
Due to recent mission demands requiring more vehicles, you will need to assign a 7-skill
level to this position that is capable of managing a larger assigned fleet. To make this
change, you would submit an ACR (described above in Program Allocation and Control)
to change the UMD. Once the UMD change is approved, the above UPMR (Table 2
attachment 2) is then updated, with the qualified person (the face) to match the attributes
of the position.
Use an ACR to change attributes authorized on the UMD to include (see Attachment 3
for explanation of terms):
- Change Air Force Specialty Codes (AFSC)
- Adjust pay grade or skill levels
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- Change Security clearance (Special Access Requirement or SAR) or Personnel

Reliability Program (PRP) codes
Do not submit an ACR to solve short-term problems or when experiencing:
- Temporary shortage of assigned personnel
- Poor or inadequate supervision, personality conflicts, or lack of qualified personnel
- Self-imposed work over load
- Inefficient procedures and/or ineffective/inefficient use of personnel
Squadron commanders have ACR approval authority only when all authorizations
impacted are subordinate to the commander. Group commanders approve ACRs that cross
squadron lines of command (as long as all affected elements are subordinate to the group
commander). Wing (or vice) commanders approve ACR's that cross group lines of
command or when ACRs impact the wing staff.
Though most organizations have their own format, ACRs should include as a minimum:
(1) List of the UMD attributes that identify the affected position
(2) List of the UMD attributes that represent the desired change (typically bolded)
(3) Justification for each proposed change (what, why, and when)
Note: Check with your local Manpower Office before composing or submitting an ACR.
They can save you time and frustration by offering expert advice and direction. Also,
contact your MAJCOM functional manager and ensure the current UMD is accurate and
that previously submitted ACRs are confirmed.
Performance Management: This manpower competency concentrates on programs that
increase workforce efficiency and organization cost effectiveness.

Productivity Enhancement Capital Investment (PECI) Program

This program provides expedient funding for capital acquisition projects,
productivity improvement projects, and investment opportunities which provide
measurable benefits, real savings, and produce a return on investment (ROI) for
the Air Force within a 2 to 4 year period.
Each year, PECI invests an average of $10-$11 million that will net an average
life cycle savings of approximately $112 million. These investments have funded
a wide variety of productivity improvements - from technology upgrades that
increase administrative speed to major equipment purchases that increase base
capabilities. While the details of each PECI project may vary, they all have two
key elements in common - measurable benefits and real savings.
The PECI program provides a pool of money from which individual projects are
funded. Once funded, a project will pay back the initial investment and then some
within either 2 or 4 years, depending on the project category.
All of the remaining dollar savings that result from the improved productivity are
kept at the base to be used for any other purpose. So the more money that your
project ideas save, the more money your base gets to spend!
UM06SG - 15

For example:
Savings over 2-year period:

$150,000

Initial Investment:

$100,000

Savings awarded to the base:

$50,000

All PECI projects will fall under one of two categories depending solely on the amount of
the initial investment cost:
Fast Payback Capital Investment (FASCAP): Project Cost under $250,000, Program
Payback within 2 years, and Approved at MAJCOM Level.
Productivity Investment Fund (PIF): Project Cost Over $250,000, Program Payback
within 4 years, and Approved at Air Staff Level.
- The PECI Program is linked with the Air Force IDEA (see below) Program to
provide a potential path for increased incentive.
- Besides the cash rewards, service members who submit program suggestions create
an opportunity to be recognized by their commanders for demonstrating initiative and
creative thinking. Individuals or groups may have their efforts recognized through one
or more means (e.g., the Secretary of Defense Productivity Excellence Awards
Program, the Air Force Productivity Awards for Professional Excellence, performance
appraisal, etc.).
- The fundamental purpose of the PECI program is to improve the Air Force by
conserving the resources necessary to meet mission requirements in the most effective
and efficient manner possible.

Air Force Innovative Development Through Employee Awareness (IDEA) Program

This incentive program promotes process improvement and resource conservation

through a participative approach where ideas submitted by military and civilian
employees. Monetary awards are paid upon validation of tangible savings and/or
intangible benefits, not implementation of the idea. Tangible savings are computed
based on validated savings for the first year of operation. All monetary awards are
subject to applicable tax rules and the maximum award paid for one idea is $10,000.
Tangible Savings: Award will be 15 percent of validated savings; total award
will be no less than $200 and no more than $10,000 (includes any additional
awards from reconsiderations).
Intangible Benefits: Award will be $200. Only one award for intangible benefits
is authorized per approved idea.
Ideas may be sent to the AFMA - AF IDEA Program website:
https://www.my.af.mil/afknprod/community/views/home.aspx?Filter=AF-DP-00-06
To emphasize the NCOs role in process improvement and resource conservation, the
Enlisted Force Structure states that NCOs must, Develop innovative ways to improve
processes and provide suggestions up the chain of command that will directly
contribute to unit and mission success and to Seek ways to reduce costs and improve
efficiency.18 In todays challenged economy, we must do our part as military service
UM06SG - 16

members and American citizens to reduce operational costs to maximize the

taxpayers return of investment and better serve our warfighters.
RESOURCES: USE ONLY AS DIRECTEDAND AVAILABLE
The waste of plenty is the resource of scarcity.
- Thomas Love Peacock19
As we discovered throughout this reading, our organizations would not be able to
successfully execute their portions of the Air Force mission if the resources we relied on
most were unavailable. It is quite easy to take the necessities we use, and often times
misuse, for granted. As resource stewards, it is imperative that we appropriately use,
conserve, preserve, even defend the resources that enable us to meet organizational goals
of today-and tomorrow. To help in your resource conservation efforts, there is a myriad of
instructions, laws, policies, and regulations available to reference-with many of them listed
on pages 1 and 2 in the Reference section of this reading assignment.
DEVELOPING FUTURE RESOURCE STEWARDS
As members of management, we support the efforts of our leadership to acquire the
necessary personnel, materials, energy sources, information, technology, funds, and
warfare training and equipment our people need. As enlisted leaders, NCOs are the moral
fiber that ensures the effective and efficient use of all resources to continuously meet
mission requirements. Be the N.C.O! Be the one who:

Nurtures. Nurturing creates an organizational culture that fosters and promotes a

resource-conscious attitude. Coach and support the awareness and development of
every Airman by teaching, training, and educating them in the ways we effectively
use the resources we depend on.

Champions resource stewardship by advocating for the resources you need.

Promote and defend the programs, processes, and leadership decisions that ensure
the smart use of the resources we use. Include your Airmen in process
improvements by soliciting ideas and inputs regularly on how we can improve
operations for future Airmen. Make resource conservation and team effort!

Takes Ownership in the organizations resource management program. Be an

active role model in effectively using and managing the resources of your
organization. Be on the lookout for and correct the activities and personnel that
waste or misuse resources and commend those who appropriately conserve. The
actions, attitude, and behaviors you demonstrate as a resource steward will
influence the Airmen you serve with now and the generations that will follow.

UM06SG - 17

Attachment 1
Table 1, Unit Manpower Document, UMD (The Spaces)

CID

POS NBR

AFSC

0J

003244340J

91C0

0J

003244350J

2W271

0J

003287110J

0J

Duty Title

84771A

GRD

Off

Major

Nuclear
Weapons

ENL

SMSgt

84771A

1N371

Germanic
Linguist

ENL

MSgt

84771A

003287450J

2T151

Vehicle
Operations

ENL

SSgt

84771A

0J

003291890J

2S052

Supply Systems
Analyst

ENL

SSgt

84771A

0J

003292000J

3C051

Communication
Sys Operations

ENL

SrA

84771A

UM06SG - 18

SKL

CAT

Commander

SEI

PEC

CEC

Attachment 2
Table 2, Unit Personnel Management Roster (The Faces)
POS NBR

AFSC

003244340J

91C0

003244350J

Duty Title

Pr

Name

SSN

Rank

Commander

Pondiff,
Karen W.

1124

Major

2W271

Nuclear Weapons

Suave,
Enrique L.

3458

SMSgt

003287110J

1N371

Germanic Cryptologic
Linguist

Smith,
Peter I.

9982

003287450J

2T151

Vehicle Operations

Jasper,
Donald F.

003291890J

2S052

Supply Systems Analyst

003292000J

3C051

CommunicationComputer Systems
Operations

DAS

DOR

PRP

20080325

20000101

20080304

20051225

MSgt

20030102

20010701

6403

SSgt

19990213

19990101

Solara,
Jessica F.

3359

SSgt

200606199

20070501

Jordan,
Bernard S.

5547

SrA

20091014

20090415

UM06SG - 19

SKL

Attachment 3
UMD Terms and Definitions
CID (Command Identifier): Identifies to which command the UMD applies--0J - Air Education and Training Command
(AETC) or 1C - Air Combat Command (ACC).
POS (Position Number): is a 10-digit number assigned to each manpower authorization. The first 8 digits provide
identification and interface capability between manpower and personnel data systems. The last two digits represent the CID.
AFSC (Air Force Specialty Code): identifies the positions required/authorized specialty. The data code field may be
overridden by the use of a Duty Title Code, which is explained in paragraph 10. The AFSC description can be found by going
to the AFPC web site, going to the search function and typing in AFECD (for enlisted AFSCs) and AFOCD (for officer
AFSCs). (refer to AFI 36-2101)
SEI (Special Experience Identifier): is a three-character code, which indicates the requirement of special experience or
qualification. The individual must possess the prerequisites in AFI 36-2101 prior to the MPF assigning him/her to the position.
SEI codes common to an AFSC are found in AFI 36-2101 (not applicable to civilian authorizations).
GRD (Authorized Grade): is the authorized grade that is funded by Congress. It consists of the alpha characters for military
rank and the current GS rank or TBD for civilian positions. When there are Contract Manpower Equivalents (CME) additions,
CME is entered in this column. CME is the number of in-service man-years that would be required if the contracted workload
was performed in-house at the same workload and performance level required in the contract performance work statement.
CEC (Civilian Employment Group Category): shows the category in which the civilian would be hired. Some examples are
provided below. Again, a complete list of all the CEC codes can be found in the Reference Tables in MPES. (Salaried=GS,
Wage=WG, etc.)
SAR (Security Access Requirement): Indicates the security access necessary for normal recurring work to be performed in the
work center by the designated authorization. (Refer to AFI 31-501, Para 7.6.3.).
PRP/SCI (Personnel Reliability Program/Sensitive Compartmented Information): status code identifies authorizations that
require a PRP or SCI qualified individual.

UM06SG - 20

NOTES

US Department of Defense official website, Statement by Secretary of the Air Force Michael Donley and
Chief of Staff of the Air Force Gen. Norton Schwartz on Efficiencies, http://www.defense.gov/releases /
release.aspx?releaseid=14181
2
Air Force Instruction (AFI) 36-2618. The Enlisted Force Structure, 27 February 2009. p 5.
3
Ibid., p 12
4
Ibid., p 14.
5
Energy.gov website. Energy Sources. http://www.energy.gov/energysources/index.htm (accessed 5 Apr 11).
6
http://www.gao.gov/ada/antideficiency.htm
7
Air Force Instruction 65-601 volume 1, 3 March 2005, Financial Management, Budget Guidance and
Procedures, p 64
8
Ibid
9
Ibid
10
Ibid., p 14
11
Ibid, p 14
12
Air Force Instruction 65-601 volume 2, 21 October 1994, Financial Management, Budget management for
Operations, p 64
13
Ibid., p 15
14
Ibid., p 14
15
Air Force Instruction 65-601 volume 3, 21 October 1994, Financial Management, Budget management for
Operations, p 6
16
Ibid., 14
17
Ibid., 14
18
Air Force Instruction (AFI) 36-2618. The Enlisted Force Structure, 27 February 2009. p 11.
19
Brainy Quote website, Resource Quotes, http://www.brainyquote.com/quotes/keywords/resource_2.html

UM06SG - 21