1 / 9

NATO BI Syndicate 1 Report: Reducing corruption risks in Capability/ Programme Development and Budgeting Moderators: M

DRMI/NPS Defense Resources Management Institute Naval Postgraduate School Monterey, California www.nps.edu/drmi. NATO BI Syndicate 1 Report: Reducing corruption risks in Capability/ Programme Development and Budgeting Moderators: Ms. Susan Pond and Dr. F. Melese.

nuala
Download Presentation

NATO BI Syndicate 1 Report: Reducing corruption risks in Capability/ Programme Development and Budgeting Moderators: M

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. DRMI/NPS Defense Resources Management Institute Naval Postgraduate School Monterey, California www.nps.edu/drmi NATO BI Syndicate 1 Report:Reducing corruption risks in Capability/Programme Development and BudgetingModerators: Ms. Susan Pond and Dr. F. Melese

  2. Goal: Make recommendations on Reducing corruption risks in Capability/Programme Development and Budgeting • What are risks in building defense budgets? • Can we improve NATO’s Survey Questionnaire? (p.14) • What are cost-effective mitigation strategies? • Can we improve NATO’s Compendium of Best Practices? (Chap. 6)

  3. Basic Goals of Defense Budgeting • The defense budget represents a Civilian government contract to pay for Military Forces that contribute to overall National Security Goals • The legal use of funds builds public trust and confidence in defense institutions • The efficient use of funds minimizes the burden of defense on taxpayers • The effective use of funds guarantees the best possible outcomes/effects of defense spending for citizens • Corruption in defense budgeting undermines public trust, and the efficient and effective achievement of National and Collective Security Goals

  4. 1. Corruption risks in building defense budgets • A national security policy or military strategy that is not clearly documented • Input-oriented defense budgets not clearly linked to outcome-oriented national security policy/strategy/plans Increase Transparency: Senior civilian & military leadership issue clearly articulated, regularly updated, and fiscally realistic national security policy & strategic direction to guide defense planning • Increase Transparency: Adopt a Medium-Term Expenditure (Financial and Resources Management) Framework like PPBS that encourages performance (program-based) budgeting

  5. 1. What are corruption risks in building defense budgets? Increase Transparency: Coordinate donor aid through the budget process and include other revenues • Multiple revenue streams (donor aid; military defense business revenues; etc.) that are opaque • Off-Budget expenditures that should be included in the budget (flexibility; secret programs?) • On-Budgetexpenditures that should not be included in the budget (special interests?)

  6. 1. What are corruption risks in building defense budgets? • Conflicting objectives among key stakeholders: • Internal lobbying: Influence in budgeting processby elected or appointed officials, military and civilian leaders, the services, or other internal organizations • External lobbying: Influence in budgeting process by for-profit (or not-for-profit?) defense companies and other private contractors • Example: “Foot-in-the-door” (loss leader) Build Integrity: Codes of conduct that align incentives Increase Transparency: Interagency NSC; MoD; CAPE • Build Integrity: Legislation; Codes of conduct; Declare assets; Control revolving door • Increase Transparency: Record interactions & outcomes

  7. 1. What are corruption risks in building defense budgets? Increase Transparency: Independent Life-Cycle cost estimating (CAPE) Improve Accountability: Execution & Assessment; Independent audits (GAO) • Quality of information used in building budgets • Bias & errors in forecasting, costs, quantities, etc. • Control of information (undue influence of selected experts) • Competence and integrity of personnel involved in building budgets and in oversight roles • Build Integrity: Develop expertise and ethics • Increase Transparency: Education & training in Financial & Resources Management tools and techniques benchmarking best practices--DRMI

  8. DRMI/NPS Defense Resources Management Institute Naval Postgraduate School Monterey, California www.nps.edu/drmi Thank You for Joining UsandBon Voyage!

  9. BACK-UP SLIDE 1. Risks in building defense budgets Build Integrity: Codes of Conduct (Identify key players) • Lobbying; Conflicts of Interest • Input budgets not tied to policy/strategy (outputs/outcomes) • “Foot-in-the-door” (loss leaders) • Enforcement • Increase Transparency: Link Budgets to Strategy (Accounting Systems) • Increase Transparency: Total System Life-Cycle Costs • (Analytical Tools) • Improve Accountability: Independent Audits

More Related