Closing the gap between budget formulation and execution

Abstract

This thesis is a case study analysis of the Resource Management Office of the Bureau of Naval Personnel (PERS-02). Specifically, an analysis of projected versus actual budget figures was conducted. The purpose of the research was to explain anomalies in the budget formulation figures as compared to actual budget execution figures and define ways to improve the protocol between budget activities. Based on model comparisons, document reviews, and semi-structured interviews of PERS-02 leaders and managers, there were indications that PERS-02 had been severely stressed due to personnel reductions, a partial relocation to Millington, TN, and less than anticipated time savings from information technology management changes. Recommendations are offered to assist leaders and managers in making systematic changes to improve the efficiency and effectiveness of PERS-02 with the goal of increasing accuracy during budget formulation. Specific recommendations include: creation of realistic training programs tailored to enhance individual knowledge and skill sets, increased use of automated data systems geared to budget formulation and execution such as budget Builder and FASTDATA, and work schedule changes using shifts for both days and evenings.