ALCOAST 015/09
COMDTNOTE 7500
SUBJ:  FY08 OPERATING EXPENSES APPROPRIATION CLOSEOUT PERFORMANCE
1. WITH THE FY2008 FINANCIAL CYCLE NOW COMPLETE, I AM PLEASED TO
REPORT THAT WE SUCCESSFULLY CLOSED OUT THE 6.113 BILLION DOLLAR
FY2008 OE APPROPRIATION WITH A UNOBLIGATED BALANCE OF 4.3 MILLION
DOLLARS, A HISTORICALLY HIGH 99.93 PERCENT SPEND DOWN RATE. THIS
RESULT WAS NOT ACCOMPLISHED BY ACCIDENT. IT WAS ACHIEVED THROUGH
YOUR DILIGENT EXECUTION OF A WELL THOUGHT OUT PLAN THAT BALANCED
CENTRALIZED RISK MANAGEMENT WITH DECENTRALIZED EXECUTION. THIS
APPROACH ULTIMATELY LED TO GREATER FUNDS AVAILABILITY TO THE FIELD
AND THESE FUNDS WERE USED TO ACCOMPLISH THE COAST GUARDS MISSIONS
AND SUSTAIN READINESS. THE FOLLOWING ACTIVITIES WERE SPECIFICALLY
EXECUTED TO ACHIEVE THESE RESULTS:
  A. FIRST, INDIVIDUAL UNIT EFFORTS PROVIDED FOR A THOROUGH AND
ACCURATE RECONCILIATION OF THOUSANDS OF COAST GUARD ACCOUNTS,
ENSURING THAT OUR FINANCIAL DATA WAS HIGHLY ACCURATE AND PROVIDED
THE BASIS FOR PRECISE FINANCIAL DECISION MAKING DURING CLOSEOUT.
  B. SECOND, UNITS RIGOROUSLY VALIDATED OVER $300 MILLION IN
CURRENT YEAR UNDELIVERED ORDERS (UDOS), WHICH ALLOWED US TO RECOVER
OVER 1 MILLION DOLLARS IN OVEROBLIGATIONS. THESE RECOVERED FUNDS
WERE DEOBLIGATED AND TRANSFERRED TO HIGH PRIORITY MISSION AREAS AND
PROGRAMS.
  C. THIRD, HEADQUARTERS FINANCIAL ANALYSTS MORE ACCURATELY MODELED
ANTICIPATED ANTECEDENT LIABILITIES (UNANTICIPATED FUTURE COSTS TO
BE FUNDED BY THE CURRENT YEAR APPROPRIATION). THIS MODELING
PROVIDED A GREATER UNDERSTANDING OF PROJECTED FUTURE YEAR RISK OR
VARIABILITY, ENABLING THE OE APPROPRIATION UNOBLIGATED BALANCE TO
BE DRIVEN NEAR ZERO WHILE MANAGING OUTYEAR RISK AT THE
ORGANIZATIONAL LEVEL.
2. WE MUST CONTINUE THIS SUCCESSFUL TREND BY BUILDING ON LESSONS
LEARNED TO IMPROVE OUR OPERATIONAL AND FINANCIAL POSTURE. THIS IS
ONLY POSSIBLE THROUGH CONTINUOUS VIGILANCE AT ALL LEVELS. I HAVE NO
DOUBT YOU ARE UP TO THE CHALLENGE OF EXECUTING OUR FY2009
APPROPRIATIONS. THE PUBLIC DESERVES NOTHING LESS. BRAVO ZULU.
3. RDML K. A. TAYLOR, ASSISTANT COMMANDANT FOR RESOURCES, SENDS.
4. INTERNET RELEASE AUTHORIZED.