NAVAL POSTGRADUATE SCHOOL Monterey, California THESIS An Analysis of the Implementation of the Standard Accounting, Budgeting and Reporting System (SABRS) in the *Kh Marine Division by David E. Melchar December, 1980 Thesis Advisor: W.H. Skierkowski Appr'oved for public release; distribution unlimited Thesi s MW3 NAVAL POSTGRADUATE SCHOOL Monterey, California THESIS An j Analysis of the Implementation of the Standard Accounting, Budgeting and Reporting System (SABRS) in the Jj'th Marine Division by David E. Melchar December, I98O Thesis Advisor: W.H. Skierkowski Approved for public release; distribution unlimited KNOX LIBRARY DUDLEY SCHOOL NAVAL POSTGRADUATE CALIF 93940 SECURITY CLASSIFICATION OF THIS PACK (Whma Dm* ffnr.r.di MONTEREY, READ INSTRUCTIONS REPORT DOCUMENTATION PAGE BEFORE COMPLETING FORM 1. REPORT NuSRfl 2. GOVT ACCESSION NO. S. NtClFlENT'S CATALOG NUMBER «. title ranTfetottMj An Analysis of the Implemen- »• TYPE OF REPORT * PERIOO COVERED tation of the Standard Accounting, Budget- Master's Thesis? ing and Reporting System (SABRS) in the December, I980 ^th Marine Division S. PERFORMING ORG. REPORT NUMICI 7. auThorc*; i. CONTRACT OR GRANT NOMBERfaj David E. Melchar * PERFORMING ORGANIZATION NAME AND AOOREBS 10. PROGRAM ELEMENT. PROJECT TASK AREA * WORK UNIT NUMBERS Naval Postgraduate School Monterey, California 939^0 11. CONTROLLING OFFICE NAME AND AOORESS 12. REPORT DATE Naval Postgraduate School December, 1980 Monterey, California 939^0 IS. NUMBER OF PAGES 14. MONITORING AGENCY NAME * AOORESSfl/ dllloront trom Controlling Otlleo) 18. SECURITY CLASS, (ol thlm report; Naval Postgraduate School Unclassified Monterey, California 939^0 \%m. OECLASSIFI CATION/ DOWN GRADING SCHEDULE IS. DISTRIBUTION STATEMENT (ol thit Hopmrl) Approved for public release; distribution unlimited 17. DISTRIBUTION STATEMENT (ol tho omotroct ontotvd In Block 20, II dltlotmnl from Report) <•. SUPPLEMENTARY NOTES IS. KEY WORDS (Continue on rowtoo old* II nooooomrr art imontlfy my Mock nummor) SABRS Marine Corps Reserve Financial Control Systems 20. ABSTRACT (Contlnum an rotoroo old* It noeooomr on* Idomtlly my kloek mmmkot) The irth Marine Division, a member of the U.S. Marine Corps' reserve air/ground team, is hindered in managing its financial resources by unavoidable situations peculiar to the reserve structure and by problems associated with the financial control system presently utilized by the division. A proposed single financial system, the Standard Accounting, Budgeting and Reporting System (SABRS), scheduled for implementation throughout the FORM COITION 1 do ,; AN 73 1473 OF NOV «• IS OBSOLETE 2- S/N 010 014- 6401 | SECURITY CLASSIFICATION OF THIS PAOE (Whom Dmtm Kntorod) JuWTJ^CJjMHgjC*gUH o» Ti..t»»«t^»%« «.<• *« Marine Corps during FY8l has the potential to remedy many pro- blems. However, the current implementation plan for the division provides extremely limited access to SABRS* benefits. This thesis examines the division's present system, the tenets of SABRS, and "the SABRS* implementation plan for the division. Finally, an analysis of two alternative implementation plans for the division results in the identification and recommendation of a plan which provides the division full SABRS benefits at a cost lower than the present system or the current implementation plan. D form 1473 2 /N 0102-014-6601 tceuMTv SuSimcIvmm •* *»•• **«",r*~ *"• •»»«~-» Approved for public release; distribution unlimited An Analysis of the Implementation of the Standard Accounting, Budgeting and Reporting System (SABRS) in the ffth Marine Division ty David E. Melchar Major, United States Marine Corps B.S., Roger Williams College, 1976 Submitted in partial fulfillment of the requirements for the degree of MASTER OF SCIENCE IN MANAGEMENT from the ABSTRACT The *Kh Marine Division, a member of the U.S. Marine Corps* reserve air/ground team, is hindered in managing its financial resources "by unavoidable situations peculiar to the reserve structure and by problems associated with the financial control system presently utilized by the division. A proposed single financial system, the Standard Accounting, Budgeting and Reporting System (SABRS) , scheduled for imple- mentation throughout the Marine Corps during FY81 has the potential to remedy many problems. However, the current implementation plan for the division provides extremely limited access to SABRS' benefits. This thesis examines the division's present system, the tenets of SABRS, and the SABRS' implementation plan for the division. Finally, an analysis of two alternative implementation plans for the division results in the identification and recommendation of a plan which provides the division full SABRS benefits at a cost lower than the present system or the current implemen- tation plan. TABLE OF CONTENTS I. INTRODUCTION. • 8 A. THE ^TH MARINE DIVISION AS A MEMBER OF THE MARINE CORPS RESERVE AIR/GROUND TEAM 8 B. OBJECTIVES 10 C GENERAL APPROACH AND METHOD OF THE THESIS .... 11 D. THESIS CHAPTER SUMMARY 11 II. THE JJ-TH MARINE DIVISION AND THE MARINE CORPS RESERVE 13 A. NATIONAL MILITARY RESERVE POLICY 13 B. BACKGROUND AND HISTORY OF THE MARINE CORPS RESERVE AND THE ^TH MARINE DIVISION 16 III. FINANCIAL CONTROL SYSTEMS. 23 A. DESCRIPTION OF A FINANCIAL CONTROL SYSTEM. ... 23 B. FINANCIAL CONTROL SYSTEM REQUIREMENTS WITHIN THE DEPARTMENT OF THE NAVY. 2? IV. THE CURRENT FINANCIAL CONTROL SYSTEM WITHIN THE 4-TH MARINE DIVISION 32 A. SYSTEM DESCRIPTION 32 B. ANALYSIS OF THE SYSTEM 4 2 V. THE STANDARD ACCOUNTING, BUDGETING AND REPORTING SYSTEM (SABRS) ^7 A. SABRS BACKGROUND AND DESCRIPTION ^7 B. PROPOSED IMPLEMENTATION OF SABRS WITHIN THE MARINE CORPS AND THE ^TH MARINE DIVISION 52 C. ALTERNATIVE METHODS OF IMPLEMENTATION IN THE DIVISION 57 . VI. CONCLUSIONS 71 A SUMMARY 71 B. CONCLUSIONS 72 1. Inadequacies of the *J>th Marine Division Financial Control System 72 2. Proposed Benefits of SABRS 73 3. Problems with the SABRS Implementation Plan for the *+th Marine Division 73 C. RECOMMENDATIONS 7^ APPENDIX A: ^th Marine Division Fund Administrators . .75 APPENDIX Bj ^th Marine Division Program Administrators . 80 APPENDIX Cs ^th Marine Division Decision Unit Managers 81 LIST OF REFERENCES 83 INITIAL DISTRIBUTION LIST. 86 ACKNOWLEDGMENT The author wishes to express his appreciation to his thesis advisors, Lt. Col. Walter H. Skierkowski and Professor James M. Fremgen, for their guidance and construc- tive comments. Special thanks are also due to Lt. Col. Mel Long, AC/S Comptroller, ^th Marine Division, and his staff for pro- viding the necessary material and background concerning the financial control system utilized by the ^th Marine Division. The author is especially grateful to his wife, Roberta, for her moral support, patience and understanding throughout our tour at the Naval Postgraduate School and her tireless efforts in typing the rough drafts of this manuscript. I. INTRODUCTION A. THE ij-TH MARINE DIVISION AS A MEMBER OF THE MARINE CORPS RESERVE AIR/GROUND TEAM The world political situation in I98O and as projected through 1985 poses a variety of challenges for the Marine Corps as a member of the Navy-Marine team. The Commandant of the Marine Corps, General Robert H. Barrow, stated before a subcommittee of Congress in February, I98O, that, ...the Marine Air/Ground Task Forces (MAGTF's) embarked in Navy amphibious shipping constitute the Nation's pre- mier capability for the forcible entry of combatant forces into a hostile environment. The capability to execute an « amphibious assault remains an absolute requirement. [Ref . 1] The unique ability of the MAGTF to project its power ashore is a result of the self-contained ground forces and aviation elements provided within the Marine Corps structure. This multi-faceted force encompassing combat, combat support, and service support components receives immeasurable benefit from continual joint air/ground planning and training. The Marine Corps currently possesses three MAGTFs , as provided by law, with the capability of adding a fourth task force through the mobilization of the Marine Corps Reserve, con- sisting of the Jj-th Marine Division and *Kh Marine Aircraft Wing. In his statement to Congress, General Barrow went on to attest that, ...the increased versatility of the Reserve is a strength we can safely rely upon to further solidify our readiness posture. |Ref. ll 8 As a key member of this reserve task force, the ^th Marine Division provides the combat forces and support to conduct the ground phase of operations designed to capture a target objective. The manpower and equipment structure of the ^th Marine Division purposely parallels that of the three active duty divisions within the Marine Corps. The major difference between the reserve and active divisions is that the Marines within the ^+th Division are essentially citizen soldiers. They are members of the civilian community who function as Marines in addition to their full-time civilian occupations. A further difference is the dispersion of reserve Marines throughout the United States in approximately 196 small self- supporting units of the ^th Division in I63 cities within k5 states and the District of Columbia. This necessary dis- persion of units and decentralization of responsibilities provide the basis for considerable logistical and adminis- trative problems for the division and are primary differences between the reserve and regular divisions. A nucleus of active duty Marines, including the Commanding General, a portion of the division general and special staff, and members of