1 We Train the World Air Force Financial Update to SC70 Air Force Security Assistance Training Mr. Rick Jellison Director of Financial Management

Status of Case Closure Status of Case Closure Where are we? FY03 – FY06 All Countries Closed FY07 – All Countries Issued for closure FY09 – All Countries Issued for closure Other Years FY10 – FY14 Open years still being worked Expect no less than four prior years to remain open as closure process continues 2

Financial Health of the Program Financial Health of the Program Restructure of the Air Force Financial Management Team has improved greatly Enhanced Case Closure efforts Budget/Accounting transparency Improved Coordination between agencies With an aging fleet of aircraft and facilities, the cost-share model for ENJJPT partners will continue to increase Aircraft Mods/Repairs have increased by 65% in the past 5 years (FY12-16) and rising to 77% (FY11-17) Facilities sustainment has been underfunded leaving the program with a significant repair bill for the future 3

Financial Health of the Program Financial Health of the Program An Aging Fleet of Aircraft to Maintain The US Air Force is aggressively pursuing a replacement aircraft for aging T-38 fleet Current projected replacement (T-X) to start fielding is in FY26 Partners should expect continued increases in their cost-share moving forward Costly repairs to our dedicated fleet makes the current cost-share model difficult to pallet for some partners BL - The cost of participation will continue to rise moving forward More discussion as we move closer to aircraft procurement and delivery 4

Financial Health of the Program Financial Health of the Program Sustaining Aging ENJJPT Facilities We, ENJJPT Partners, have an obligation to ensure we sustain the facilities that are directly tied to the quality of training our students receive ENJJPT facilities have not been maintained to adequate levels in the past due to the growing cost of maintaining facilities The USAF anticipates a requirement of $6.2M annually to sustain ENJJPT facilities Due to cost-model/approved budget USAF currently spends $2.0M on ENJJPT facilities annually This must change if we want ENJJPT to continue to be the premier training location for developing basic fighter pilot skills 5

Financial Health of the Program Financial Health of the Program Sustaining Aging ENJJPT Facilities, Con’t The US Air Force Installation and Mission Support Center will take over facilities sustainment funding by FY17 This means we will have a new performing organization that supports our training program It is critical that we increase our facilities sustainment budget to meet our future training needs today We do not want to push a facilities bill to you after the fact due to Safety/Health/Life must pay bills, although this might happen We need to be prepared to increase our facilities requirement in FY17 to no less than $6.2M annually At the current cost-share model that would mean $4.65M USAF and $1.55M for all other participating partners to share USAF has agreed to program for their share of this increase 6

Closing Closing Action must be taken now to prevent failure of our ENJJPT facilities We must also continue to monitor our aging fleet costs and look for ways to extend fleet life in a cost efficient manner Request SC Chairman task FLS to discuss aging facilities concerns and make recommendation to SC on how to move forward on funding 7

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