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Four interrelated subsystems make up the RMS to meet the objectives of the DOD. They are as follows: Programming and budgeting Management of resources for operating units Management of inventory and similar assets Management of acquisition, use, and disposi- tion of capital assets The first, third, and fourth items are ap- plicable primarily at the department, bureau, or inventory manager level. The AK would be most concerned with the second item. Current guide- lines for the management of resources for operating units are found in Financial Manage- ment of Resources Operations and Maintenance (Shore Activities), NAVSO P-3006, Financial Management of Resources Fund Administration (Operating Forces), NAVSO P-3013-1, and Financial Management of Resources Operating Procedures (Operating Forces), NAVSO P-3013-2. OBJECTIVES The basic objectives of the RMS, as applied to operating units, are as follows: l To determine the cost of operation of an activity in terms of total resources consumed or applied. l To establish a system of controls that will be of maximum value to commanders. Com- manders use these controls to assure that resources are used effectively and efficiently in the accomplishment of the mission of the activity. l To furnish operating budget grantors and other levels of management, up to and including the Navy Comptroller, that degree of financial information necessary for effective coordination and control of resources. These objectives are achieved by implementa- tion of the planning, programming, and budgeting system and the use of such functional terms as funds, appropriations, expense operating budgets, responsibility centers, cost centers, expense elements, and OPTARs. With an understanding of the interlocking functions of all these factors, the fiscal side of supply becomes a clear and purposeful system. The material presented in this TRAMAN provides the necessary background information. Perhaps AKs may not be personally involved in the consolidation of budget estimates; however, it will be helpful if they know how the process is carried out and how the action taken at higher levels may both depend upon and affect what they do locally, The RMS affects the entire management process in the DOD. The following paragraphs briefly define steps in the management process. Figure 2-1 indicates the normal sequence of the steps in the management cycle. Planning in DOD is concerned with develop- ing long- and midrange strategy and operational concepts, objectives, and requirements based on continuously projected appraisals of the world situation and on technological and intelligence forecasts. Programming is concerned with setting specific 5-year defense goals and the schedule for achieving them, grouping functions and activities sharing the same objectives into major programs, and estimating resource requirements for each. Budgeting is the function of formulating 1-year projections of resource requirements for programs, balancing priorities in the competition for limited resources, and obtaining associated funds. Accounting is the function of measuring the results of performance (progress and status of Figure 2-1.—Department of Defense management process. 2-3



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