Download - PPBE Presentation
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Georgina AnthonyAntonella DemartiniChantell FletcherJacob LileSereney Usta
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Overview of PPBS & PPBE PPBS was developed in 1961 by the Department of Defense
Designed to improve efficiency through long-termplanning and cost-benefit analysis of alternative programs
Not expenditure driven, not limited to a single year
Linked policies and priorities with available financial
resources
PPPS became PPBE in 2003 to streamline connection
between priorities and decisions
PPBE is a high-level multi-year continuous budgetary
process
Used by DOD, NASA and NOAA
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Four Phases of PPBE (Planning) Provides strategic rationale for agency programming and
budgeting
Articulates long-range goals superimposed over ever-changing
conditions and trends
Forecasting is conducted from a cost-benefit perspective
Relates resource allocation to alternative uses of capabilities
and capacities
Example: DOD forecasts the number of troops/
equipment/services required for a military operation. This resultsin the creation of a Strategic Planning Guide (SPG) by the
Secretary of Defense and Joint Chiefs. The SPG is the final
analysis and will set the stage for phase two.
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Four Phases of PPPB (Programming) Aligns resources with specific actions to achieve department
goals
Programs are the actual activities, supporting equipment, goods
and services purchased/developed
Translates planning into action
Compares current capability with needed future capability
Evaluates existing programs for efficiency and guideline
development
Example: DOD FY 2012 Budget Request includes a 374page document addressing programming changes/terminations
i.e. promoting joint service solutions to address strategic needs
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Four Phases of PPBE (Budgeting) Budget Estimate Submission (BES) four years: Last completed,
current, next two years
Goal of BES is to estimate, formulate, justify, document to
support and implement directives
Using categories to associate programs to each objective, the
budget phase clearly connects budget decisions and strategic
planning
Example: DOD FY 2012 Budget Request includes a 87
page section: Program Acquisition Costs by Weapon System
reporting FY 10 and 11 quantity and cost detail for the
militarys combined weapon system
DOD uses this data to forecast cost estimates for maintaining
required programs for strategic compliance
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Four Phases of PPBE (Execution) The real world manifestation of the budget (where the rubber
meets the road)
A critical element of PPBEs core strategic purpose
Matches planned programs with actual resources
Measures performance
Provides feedback for more efficient and effective future
execution
Example: DOD FY 2012 Budget Request features the
Department of Defense Efficiency Initiatives, including reviewsof program costs, discussion of reduced overlap, emerging best
practices and potential for program reductions
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Advantages to PPBE Allows for long-term forecasting Provides the ability to connect budgetary decisionmaking with strategic outcomes Allows visualizing trade-off options as needs andcosts are considered simultaneously Provides prioritization by conducting gap andexcess analysis Offers flexibility, continual revision and ease ofprogram performance tracking
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Challenges to PPBE High financial and administrative costs (requires ahigh number of specialized analysts over an extendedperiod of time) Requires a high level of management and departmentacceptance and participation Limits creativity (long-term projection could lead to auniform approach to treating an evolving issue PPBE is only useful when units of an agency performsimilar tasks Despite the multi-year approach, the link betweenexpenditure and revenue may not be transparent
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Challenges to PPBE High financial and administrative costs (requires ahigh number of specialized analysts over an extendedperiod of time) Requires a high level of management and departmentacceptance and participation Limits creativity (long-term projection could lead to auniform approach to treating an evolving issue PPBE is only useful when units of an agency performsimilar tasks Despite the multi-year approach, the link betweenexpenditure and revenue may not be transparent
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Recommendations PPBE should only be used in highly structured agencieswith considerable capital and human resources (DOD,NASA) Performance measurement should be integrated intothe budgetary cycle The form of PPBE lends itself to performancemeasurement in each phase of the cycle As budget justification rests upon performance results,justification is necessary to receive public support The DOD could act more responsibly in their budgetingprocess
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Questions?
References: