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.
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