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Fiscal Year 2008 Department of the Air Force Financial Statements and Notes

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Fiscal Year 2008 Department of the Air Force Financial Statements and Notes Table of Contents Message from the Secretary of the Air Force ..........................................................................................................................ii Message from the Assistant Secretary of the Air Force for Financial Management and Comptroller .................................iii Management Discussion and Analysis Air Force Heritage ......................................................................................................................................................... 1 Air Force Core Values ................................................................................................................................................... 1 Air Force Critical Capabilities ...................................................................................................................................... 2 Air Force Goals ............................................................................................................................................................. 2 Air Force in Action – FY 2008 ...................................................................................................................................... 3 Reinvigorate the Air Force Nuclear Enterprise ................................................................................................. 3 Partner With The Joint and Coalition Team to Win Today’s Fight .................................................................. 3 Develop and Care for Airmen and Their Families .......................................................................................... 4 Modernize Our Aging Air and Space Inventories ........................................................................................... 4 Acquisition Excellence .................................................................................................................................... 4 Air Force Structure ........................................................................................................................................................ 5 Air Force Major Management Initiatives ...................................................................................................................... 9 Energy and Environmental Focus ..................................................................................................................... 9 Personnel Services Delivery........................................................................................................................... 11 eLog21 ........................................................................................................................................................... 11 Air Force Resources .................................................................................................................................................... 12 Air Force Financial Management Evolution ............................................................................................................... 13 CFO Compliance ............................................................................................................................................ 13 Financial Services Transformation ................................................................................................................. 13 Internal Controls ............................................................................................................................................ 13 Continuous Improvement .............................................................................................................................. 14 Air Force General Fund Appropriations ............................................................................................................................................................. 15 Current and Future Financial Systems - DEAMS ....................................................................................................... 16 Air Force Working Capital Fund Supply Management Activity Group .......................................................................................................................... 17 Depot Management Activity Group ............................................................................................................................ 18 Financing the Fight .................................................................................................................................................................. 21 Financial Statements General Fund Principal Statements ...................................................................................................................................... 25 Notes to the Principal Statements .................................................................................................................. 31 Required Supplementary Stewardship Information ...................................................................................... 73 Required Supplementary Information ........................................................................................................... 81 Audit Opinion ................................................................................................................................................ 89 Working Capital Fund Principal Statements ...................................................................................................................................... 99 Notes to the Principal Statements ................................................................................................................ 105 Required Supplementary Information ......................................................................................................... 129 Audit Opinion .............................................................................................................................................. 131 i ii iii ““People eople wewere e hungrhunhungrygr fforor foodfood and ffrfreedom.r edom. We werweree giving thethem both and they werwere most gratgrateful.” ful ” -Col--Col.Col Gailail HHalverson, lver on, UUSAF AF (re((ret),re ),), thetthehe BerlinBerlin AirliftAirlift “C“Candy ndyndy Bomber”omber” Management Discussion and Analysis Air Force Heritage African-Americans who flew fighter escorts for U.S. bomb- ers during World War II. Airmen such as General “Chap- pie” James, General Benjamin Davis and many other heroes facing racism and discrimination at home demonstrated sheer undaunted courage serving their country in a time of war. Tuskegee Airmen painted the tails of their aircraft red to identify themselves thus becoming known as “Red Tails.” Their skill and performance became legendary to both Axis and Allied forces. These are two examples of our rich history, and this legacy of successful mission accomplishment continues today as the USAF is engaged in its worldwide mission. That mis- sion is: To fly, fight and win in Air, Space and Cyberspace. We executed the Berlin Airlift mission, we led the way in We stt BBerlinerserliners watchw att chh asas a U.S.UU.SS. CC-54 -554 SkymasterSkymastter ddedeliverslivers ddesperatelyesperattelly desegregating the military, we are carrying out our current needed supplies during the Berlin Airlift. mission, and we are committed to the accomplishment of future missions. We are always aware of our history and our or over 60 years, America has depended upon its vision: Lasting Heritage… Limitless Horizons. Airmen to provide dominance in the air, space, and Fthe emerging cyberspace domains. This continues The Air Force strategic framework consists of these the execution of our charter. We draw on a proud heritage elements: beginning with our founding as a separate service over Our Core Values are: six decades ago. This year we celebrate another historic Integrity First milestone: the 60th anniversary of mission accomplishment of our fi rst great challenge. In June 1948, the newly estab- Service Before Self lished United States Air Force (USAF) started the ultimately Excellence in All That We Do successful Berlin Airlift. This heroic effort by USAF Air- men ended the attempted strangulation of the people in the Western Sector of Berlin. A loadmaster and maintenance personnel conduct This year we also celebrate the 60th anniversary of pre-flight checks on a C-17 Globemaster III before the desegregation of the military. This was taking off from Pegasus White Ice Runway, Antarctica. in no small part made possible by the Tuskegee Airmen, the group of brave 1 Our Critical Capabilities are: “It is my deep conviction that we have Global Vigilance reached a turning point in the long Global Reach history of our efforts to guarantee a Global Power freedom and equality to all our Our Goals are: citizens…and when I say all Americans, Foster Mutual Respect and Dignity I mean all Americans.” Sustain Air, Space and Cyberspace Capabilities Provide Persistent Situational Awareness - President Harry S. Truman Develop Joint and Battle-Ready Airmen Improve the Total Force Quality of Life Achieve Open, Transparent Business Practices and a Clean Audit Foster Air Force Smart Operations for the 21st Century (AFSO21) One of the key enablers of our operational success, whether on the approaches into Berlin in 1948 or in the skies over Iraq and Afghanistan today, remains our Air Force Financial Management professionals from all components of the Total Force. They demonstrate their devotion to duty, capabili- ties,
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