Department of Defense, Under Secretary of Defense (Comptroller)

Department/Agency: Department of Defense

Position:

Under Secretary of Defense (Comptroller)

Executive Schedule: Executive Level IV - Presidential Appointment with Senate Confirmation

Major Responsibilities:

• Direct the preparation and management of the Pentagon budget and defend it before Congress. Administer the department’s planning, programming and budgeting system
• Set uniform budgetary, fiscal and management procedures for department branches to ensure cost-effectiveness and interoperability
• Control and account for all department financial resources
• Build and maintain relationships with domestic and international financial institutions and defense contractors, including monitoring the adequacy of international financial agreements
• Set prices for sales of Pentagon goods and services to foreign governments and other buyers
• Oversee the Defense Contract Audit Agency and Defense Finance and Accounting Service. Coordinate the interactions of other Pentagon branches with these agencies
• Responsibilities outlined in Directive 5118.3

Key Competencies and Preferred Qualifications:

• Business or industry executive
• Familiarity with Capitol Hill and its budgetary procedures
• Prior experience with DOD planning, programming and budgeting

Insight:

The Bush administration requested $515 billion in discretionary funds for the Department of Defense for fiscal 2009, a $36 billion or 7.5 percent increase over 2008. An emergency funding request for the wars in Iraq and Afghanistan added $70 billion to the tab, and supplemental requests will likely take the final number still higher.

Under Secretary of Defense (Comptroller) is charged with keeping the Pentagon’s complicated books in order. The next comptroller will face the ever-ballooning costs of the war on terror, the increasing reluctance of Congress and international partners to contribute to the coffers and the challenge of modernizing outdated business systems throughout the department to achieve a clean audit.

When President George W. Bush tapped Tina Jonas for the comptroller position in 2004, Jonas highlighted the financing of the war on terror and the modernization of the department’s financial management systems as her two biggest challenges. The defense budget must support “the welfare and morale of our men and women in uniform” and provide the necessary funds to “fight and win the Global War on Terrorism,” Jonas said, and the business management systems used to prepare, disburse and monitor that budget must be reformed and revamped.  

Building a War Chest

With Congress starting to balk at the spiraling costs of the war in Iraq, the new president must find a polished salesman skilled in the inner workings of Capitol Hill to squeeze war dollars out of leery lawmakers.

Jonas’s predecessor, Dov Zakheim, said he was surprised that his duties included “tin cupping” for war funds around the globe. “I found myself involved in many international negotiations, and actually established an international office,” Zakheim said in his response to the Council for Excellence in Government’s Prune Book survey. That task will only become harder as the U.S. seeks to draw down its own forces in Iraq. Zakheim suggests working closely with other agencies such as the Departments of State and Treasury. “Try to avoid turf fights,” he cautioned. 

Entering the 21st Century

Managing the money for a modern war requires modern business systems. The Department of Defense has been replacing outdated processes and systems in an effort to cut costs and streamline work. The next comptroller will continue the work of his or her predecessors to modernize the Pentagon’s financial management systems.

“As our military forces transform their capabilities to adapt to a changing security environment that requires speed, agility and flexibility, so must we change our business processes to ensure that we can provide support to them in the most efficient and effective way,” Jonas told the Senate Armed Services Committee in November 2004.    

Both Jonas and Zakheim emphasized the importance of financial accountability. Auditable financial statements and the timely and proper disbursement of appropriated funds resulted in more organizations within the Department of Defense earning a clean bill of financial health.

Systems malfunctions can have serious consequences for men and women in uniform. Jonas took office amid payroll problems that led to missing or inaccurate paychecks for deployed National Guard troops. The Comptroller must motivate the financial management staff to prevent and correct such problems.

 Zakheim said, “I found that financial management was a DOD backwater. It is important to motivate the staff so that they realize their work is both important and meaningful.” He also emphasized the necessity of twice yearly budget execution reviews to ensure that the Pentagon’s financial operations are adequately evaluated for cost-effectiveness.

Key Relationships – Within the Department or Agency:

Deputy Secretary of Defense
Policy Office

Key Relationships – Within the Government:

Deputy Director, Office of Management and Budget
Associate Director, Office of Management and Budget
Head of Programs, Joint Chiefs of Staff
Director of Program Analysis and Evaluation, Joint Chiefs of Staff
Service Vice Chiefs, Joint Chiefs of Staff
Assistant Secretaries for Financial Management, Joint Chiefs of Staff
Under Secretary of State for Economic Affairs, Department of State
Under Secretary of Treasury for International Affairs, Department of Treasury
Deputy Assistant to the President, National Security Council

Key Relationships – Outside the Government:

Contractor Interest Groups, such as the Professional Services Council

Nomination Referred to:

Senate Committee on Armed Services

Current Position Profile:
1. Robert F. Hale (Confirmed: Feb. 9, 2009). Former Executive Director of the American Society of Military Comptrollers; Former Assistant Secretary of the Air Force (Financial Management and Comptroller). Certified Defense Financial Manager (CDFM), past member of the Defense Business Board, and a fellow of the National Academy of Public Administration.

Recent Position Profiles:

2. Kevin Scheid (2008-2009). Acting Principal Deputy Under Secretary and Comptroller. 

3. Tina W. Jonas, MA, (2004-2008).  Former Federal Bureau of Investigation chief financial officer. Former House Appropriations staff member and OMB senior budget examiner. 

4. Dov S. Zakheim, Ph.D. (2001-2004). Former deputy under secretary of defense for planning and resources and former CEO of System Planning Corp., a contractor that works on electronics, software and national security research