Integrity - Innovation - Service Leaders in Motion Program: Accounting and Financial Management Associates Mike Anderson Tuesday, January 17, 2006

Integrity - Innovation - Service 2 of 11 Provide responsive, professional finance and accounting services for the people who defend America Best Value to Our Customers: World-class provider of finance and accounting services Trusted, innovative financial partner One Organization, One Identity Employer of choice, providing a progressive and professional work environment DFAS Vision

Integrity - Innovation - Service 3 of 11 DFAS Mission

Integrity - Innovation - Service 4 of 11 Department of Transportation Department of the Army Department of the Navy Department of the Air Force DFAS Department of Defense Department of the Interior Executive Office of the President of the United States of America Zack Gaddy Department of Defense Hierarchy

Integrity - Innovation - Service 5 of 11 How DFAS Does Business Congress appropriates funds to DoD Since our creation, we have operated as a Working Capital Fund DFAS DFAS Customers Our customers want best value services Customers pay for our services We provide services to customers The administration wants competition and accountability in all government operations Administration Every dollar saved by DFAS is a dollar that can be used to better equip our warfighters

Integrity - Innovation - Service 6 of 11 DFAS is “Big” Business World’s largest finance and accounting operation - 14,000 employees Service 5.7 million military members, military retirees and annuitants, and DoD civilians Manage 267 active DoD Appropriations worth $517 billion Manage a $176 billion Retirement Trust Fund Disbursement $346.6 billion annually Process 11.2 million commercial invoices Oversee 7.3 million travel payments and settlements Administer 124 million accounting transactions annually

Integrity - Innovation - Service 7 of 11 Maintain… General ledgers Accounts receivable Accounts payable Perform… Cash reporting Funds control/budgetary accounting Property/plant/equipment accounting Payroll accounting Cost accounting Reconciliations Data integrity analysis Disbursing (paying & collecting) activities Other Functions Prepare financial statements Define accounting requirements Provide accounting and financial advice Implement & support financial systems Record inventory values Develop, produce, and analyze accounting reports Accounting Responsibilities

Integrity - Innovation - Service 8 of 11 Direct Effect on our Military Forces If We Take Early Payment Discounts... They Can Buy a Bradley Fighting Vehicle If We Eliminate Prompt Payment Interest Penalties... They Can Buy a Blackhawk Helicopter

Integrity - Innovation - Service 9 of 11 Comparison Matrix

Integrity - Innovation - Service 10 of 11 DFAS Locations before BRAC Limestone Rome Arlington Norfolk Charleston Japan San Antonio Pensacola Orlando Hawaii

Integrity - Innovation - Service 11 of 11 DFAS Locations Post BRAC Indianapolis Columbus Rome Cleveland Limestone

Integrity - Innovation - Service 12 of 11 A Little About Our 5 Sites – Indianapolis, IN POPULATION: 784,242 people INDIANAPOLIS MOTOR SPEEDWAY Indy 500 & NASCAR Races CONSECO FIELDHOUSE Home of the Indiana Pacers Concerts & Other Large Events RCA DOME Home of the Indianapolis Colts Home of the 2006 NCAA Men’s Basketball Final Four CIRCLE CENTER MALL Fashion Mall in the Downtown Area INDIANAPOLIS ZOO World’s Only Under Water Dolphin Dome VERIZON WIRELESS MUSIC CENTER Outdoor Music Pavillion

Integrity - Innovation - Service 13 of 11 A Little About Our 5 Sites – Columbus, OH POPULATION: 730,008 people NATIONWIDE ARENA Home of the Columbus Blue Jackets Ice Hockey Team THE OHIO STATE UNIVERSITY Big 10 Athletics & College Town Atmosphere COOPER STADIUM Home of the Triple-A Clippers, a New York Yankees Farm Team SEGA GAMEWORKS Popular Game Center Features Over 200 Video and Virtual Reality Games MAGIC MOUNTAIN Outdoor and Indoor Entertainment

Integrity - Innovation - Service 14 of 11 A Little About Our 5 Sites – Cleveland, OH POPULATION: 500,000 people QUICKEN LOANS CENTER Home of the Cleveland Cavaliers CLEVELAND BROWNS STADIUM Home of the Cleveland Browns CLEVELAND METROPARKS ZOO ROCK-N-ROLL HALL OF FAME Rock and Roll History Museum PALACE THEATRE Historic Music Theatre BLOSSOM MUSIC CENTER Outdoor Music Pavillion

Integrity - Innovation - Service 15 of 11 A Little About Our 5 Sites – Rome, NY POPULATION: 34,551 people TURNING STONE RESORT & CASINO Casino and Golf Course in Utica, NY HOWE CAVERNS—CAVES Top 5 NY Family Attractions WATER SAFARI “ENCHANTED FOREST” NY’s Largest Water Theme Park ERIE CANAL VILLAGE Outdoor Living History Museum ORISKANY BATTLEFIELD August 1777—American Revolution FORT STANWIX NATIONAL MONUMENT

Integrity - Innovation - Service 16 of 11 A Little About Our 5 Sites – Limestone, ME POPULATION: 2,325 people ALBERT MICHAUD MEMORIAL PARK Provides Outdoor Recreational Activities TRAFTON LAKE RECREATION AREA One of the Best Fishing lakes in Northern Maine FLYE POINT MUSIC AND ARTS FESTIVAL Annual Festival of Incredible Music Amid the Beauty of the Maine Coast THE LIMESTONE COUNTRY CLUB Provides Golfing on a Challenging 9-Hole Course

Integrity - Innovation - Service 17 of 11 Why a Career with DFAS? What’s in it for You? Industry Standards Positive Work Environment Employees First In the next five years, a large percentage of our workforce will be eligible for retirement.

Integrity - Innovation - Service 18 of 11 Industry Standards Competitive Entry-Level Salaries With Known Promotion Potential Vacation: Starting at 13 days, Progressing to 26 Days Annually Retirement Plan with Agency Contributions Health and Life Insurance Job Security

Integrity - Innovation - Service 19 of 11 Positive Work Environment Flexible Work Schedules 10 Paid Federal Holidays Per Year 13 Paid Sick Days Per Year Business Casual Atmosphere Physical Health and Wellness Programs

Integrity - Innovation - Service 20 of 11 Employees First Tuition and Certification Reimbursement Value the Balance of Personal Life and Work Compensation for Overtime Travel Opportunities Professional Development

Integrity - Innovation - Service 21 of 11 Professional Development: Leaders in Motion Program Years One and Two Four six-month rotations (examples) Accounting Military Pay Systems Travel Year Three Permanently Placed Continued On-the-job Training Leadership Opportunities Ongoing throughout program Coaching/mentoring Training classes Special/challenging projects Site/customer visit Leadership/networking conferences Monthly meetings with senior managers and peers Monthly professional association luncheons Regular topical briefings on “hot” Agency issues Accounting and Financial Management Associates Noncompetitive advancement to target position

Integrity - Innovation - Service 22 of 11 Career Progression Entry Professional Journey Management Executive Staff Manager Senior Staff Senior Manager Partner DFAS Public Accounting Firm Organizational Hierarchy Approximately 80% of the workforce are at the professional or journey levels. Employees advanced through a combination of education, training, and experience.

Integrity - Innovation - Service 23 of 11 Accounting Associates Assigned a project to streamline work processes and minimize redundancy within DFAS. Developed flowcharts and analyzed all accounting processes performed at DFAS Columbus. Provided results and recommendations for action. Information used to develop High Performing Organization concept. “The project was a great way to get a feel for the “big picture” sense of what we do at DFAS. So much goes on here and this helped me to put a lot of the pieces together.” Tara Magusiak, Ohio State University

Integrity - Innovation - Service 24 of 11 Financial Management Associate Assigned to a benchmarking study where I solicited information from the military pay organizations of foreign countries (e.g., Israel, UK, Canada). Compared their costs and service to DFAS’s. Presented my findings to senior executives and foreign dignitaries. Created a database to track the pay of soldiers who are wounded in action. Developed an online application to help our customers get immediate answers to their pay questions. “ At DFAS, I have always felt that my job matters, and that I have been given meaningful, high-level work. I honestly do not feel I would have gotten this much opportunity anywhere else, and I would not trade my experience for anything.” Renay Ringo – Indiana University

Integrity - Innovation - Service 25 of 11 Third Year Associate My career progression at DFAS has been a life in the fast lane! From the moment I joined the DFAS team, I became part of a world-wide team who serve our country’s finest men and women. I have met the military customer we support first hand, worked side-by- side with the men and women in uniform, experienced the chaotic day of an air traffic controller on one of the busiest Air Force fighter bases in the world, and then sat in the cockpit of an F-15. “DFAS was the right move for me. If you want a rewarding career with a lifetime of great memories, then the DFAS Associate program is the place for you.” Bryan Thompson – University of Maine

Integrity - Innovation - Service 26 of 11 DFAS Associate IU Alumni

Integrity - Innovation - Service 27 of 11 DFAS Internships Internships (won Best of the Best in the Outstanding Indiana Internship Program in 2003, funded by Lilly Endowment) Program consists of: 70% OJT with seasoned DFAS employee 20% corporate, group research project with final presentation 10% topical briefings, networking (lunches, field trip, manager meetings), and other assignments (BSC) 92 interns DFAS in Summer 2005; at least 100 planned for 2006 Adding spring and fall internships in 2007 Targeting sophomores and juniors Indiana University Summer Finance and Accounting Interns 2005

Integrity - Innovation - Service 28 of 11 Intern Project Examples Individual Project Examples  Build customer service website where no one existed  Learn Hurricane Katrina reporting process, build and populate spreadsheets, participate in daily teleconferences with updated reports  Reduce and/or eliminate $150M in aged accounts receivables Group Project Examples Evaluate our Employee Awards Program and provide recommendations for improvement Evaluate the effectiveness of our Customer Service “touch points” Design a Leadership Development Program for our technicians

Integrity - Innovation - Service 29 of Student Intern - Holly Van De Venter Individual Project: Design a violations database in Access to track transactions not posting due to errors. Accomplishments: Created automatic to notify and request information from other sites allowing transactions to be posted correctly. Trained staff of 50 on new procedures. Briefed Agency Director. “In three months, I completed a project that really improved day-to-day operations. My great summer experience led me to choose DFAS. I knew I could make a difference and would be surrounded by people committed to making DFAS a world class organization.” Holly Van De Venter, University of North Dakota

Integrity - Innovation - Service 30 of 11 Maybe we don’t get thanked everyday, but... …but we are committed to providing world-class service at a reduced cost to the military members and their families.

Integrity - Innovation - Service 31 of 11 Your Financial Work