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1. Joint Financial Management in a Defense Support of Civil Authorities (DSCA) Environment17 November 2010Brad L. RameyComptrollerUS Army North UNCLASSIFIED

2. Terms • USNORTHCOM – United States Northern Command • USARNORTH – United States Army North • ASCC – Army Service Component Command • DSCA – Defense Support to Civil Authorities • - Defense Security Cooperation Agency • FCO – Federal Coordinating Office • JFO – Joint Field Office • CBRN – Chemical, Biological, Radiological, Nuclear • RBA – Reimbursable Budget Authority • ARC – ARNORTH Reimbursement Cell • FMAT – Financial Management Augmentation Team • DCO/E – Defense Coordination Office/Element • MA – Mission Assignment • CONOP – Contingency Operation • Economy Act • Stafford Act

3. Types of Disasters Bridge Collapse Domestic Disaster Aid – Deepwater Horizon Oil Spill Wild Fires Each brings a unique set of financial management challenges Major Hurricane CBRN Foreign Disaster Aid – Haiti Earthquake

4. Defense Coordinating Officers COL Moore July ‘10 COL Hutson AUG ‘10 SJFHQ-N HUR& Haiti COL Fulton July 09 MN floods COL Stanley DCO X: ‘06-’08 DCO l: ‘08-Present WA/CA WLF (NIFC) HUR Dean, Gustav, Hannah, Ike, Earl COL McCormick AUG ‘10 USACE: HUR Gustav/Ike COL Freehill June ‘06 UNGA 64/65; HUR Omar/Earl COL Armstrong JAN ‘06 SoCAL WLFs, Samoan tsunami HUR Ernesto, Earl; typhoon Melor COL Mathis July ’06 HUR Hannah, Alex, Earl; NSSE’s X 5 COL Holmes May ‘10 COL Lehr AUG ‘10

5. Background • Lack of Financial Accountability during a well-known major disaster necessitated reengineering the financial management process • Problems • A Single Mission Assignment and Three Services • No sub-division of Reimbursable Budget Authority (RBA) • Units spent without knowing funding limitation • Different Services and different accounting systems • Billing procedures or “rejects” at DFAS • USNORTHCOM tasked to convene working groups to develop “A Way Ahead”

6. Solutions • Ensure USNORTHCOM EXORD provides funding guidance • “USNORTHCOM will not provide funding. Services will capture costs from within existing budget authority and seek reimbursement through Service channels.” • ARNORTH Reimbursement Cell (ARC): • Direct POC for units on Mission Assignment for RBA • Distribution and management of reimbursable budget authority from Primary Agencies • Financial Management Augmentation Team (FMAT) • Functions as ARC with more robust capability with representatives from each Service • Communication within the Services and DFAS

7. Reimbursable Funding Example Disaster Strikes Federal Emergency Management Agency PRIMARY AGENT FCO Requirement USARC (EPLOS) Mission Assignment RBA Mission Assignment Negotiation TRANSCOM ARC USARNORTH (DCO) AFNORTH MCI WEST MARCH AFB NAVAL REG SW NORTHCOM SURGEON FORSCOM AMC Distribution of Reimbursable Budget Authority to Supporting HQS

8. DSCA Operations DSCA operations fall into three major categories each with unique financial aspects • Contingency Operations (Immediate Response) • Action taken to prevent loss of life or property, typically in support of local communities • Economy Act (Full Reimbursement) • Support to another federal agency based on a formal agreement or request for assistance • Stafford Act (Partial Reimbursement) • Requires Presidential disaster declaration • Primary Federal Agency requests DOD assistance UNCLASSIFIED

9. Contingency Operations Event Funding Organization uses their service-funded direct budget authority (DBA) There is no authority to exceed Direct Budget Authority. Ever. By law. Reimbursement Organization tracks all associated costs by use of APC/ESP/JON codes No guarantee of reimbursement , however it should be sought Any reimbursement will likely be from organization’s higher HQ UNCLASSIFIED

10. Economy Act Event Funding Organization operates using reimbursable authority as outlined in the Primary Federal Agency’s service agreement Available reimbursable authority is based on initial support estimates or pre-negotiated support agreements Reimbursement Organization tracks Total costs by use of APC/ESP/JON codes and bills to federal partner Billing may be submitted incrementally, however is normally after the fact Full Reimbursement from Federal partner is required AD component pay and allowances are reimbursable Reserve/Guard called to AD, pay and allowances are reimbursable Regular civil service pay is reimbursable Regular civil service OT in support of event is reimbursable Temporary hires specifically to support that agreement/assignment Service contracts specifically in support of event Federal to Federal support; No Presidential Disaster Declaration UNCLASSIFIED

11. Stafford Act Event Funding Organization operates using reimbursable authority as outlined in the Primary Federal Agency’s agreement/assignment Available reimbursable authority is based on initial support estimates or pre-negotiated support agreements/assignments Reimbursement Organization tracks all Incremental costs by use of APC/ESP/JON codes and bills to federal partner Reimbursement can be ongoing Incremental reimbursement only (not applicable if provided for elsewhere) AD component pay and allowances is notreimbursable Reserve/Guard called to AD, pay and allowances are reimbursable Regular civil service pay is not reimbursable Regular civil service OT in support of event is reimbursable Temporary hires specifically to support that agreement/assignment Service contracts specifically in support of event Requires a Presidential Disaster Declaration UNCLASSIFIED

12. Financial Management Process Yes No UNCLASSIFIED

13. Take Aways • Contingency Operations: There is no reimbursable authority to exceed the unit’s service-funded DBA • Economy Act: Total costs are tracked and billed to a Primary Federal Agency • Stafford Act: Total costs are tracked and Incremental costs are billed to a Primary Federal Agency • Points of Contact: • ARNORTH Reimbursement Cell • NC Financial Management Augmentation Team READ THE ORDER

14. Questions UNCLASSIFIED