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We worked hard to sustain the capabilities of our Air Force despite the significant challenges associated with maintaining an aging fleet of aircraft while also recruiting and retaining our highly skilled all-volunteer force in a strong economy. We also modernized our equipment to the extent our budget allowed. We successfully transformed our Air Force into an Expeditionary Aerospace Force. That transformation allowed us to sustain our ability to meet combat requirements in a timely, responsive fashion over the long term. It also provided our people with more predictable deployment schedules. The Air Force addressed these challenges with an FY00 budget of roughly $70 billion. Consistent with the requirements of the Chief Financial Officers Act, this statement documents the expenditures devoted to our General Fund activities. It also briefly reviews selected performance measures established as part of the Government Performance and Results Acts and compares the results for FY00 to our previously set goals. We made effective use of our budget dollars by remaining a leader in financial reform. In FY00 we contin- ued our progress toward achieving auditable financial statements. Our enhanced internal controls and upgraded sys- tems continued to reduce the number of financial fraud cases. Furthermore, we maintained our commitment to train- ing our financial managers. Our guidelines for professional development ensured our financial professionals were well trained to meet constantly changing demands. As we progress through the new millennium, our mission remains: to defend the United States through con- trol and exploitation of air and space. We will continue our faithful stewardship of funds to ensure we dominate the aerospace medium. LAWRENCE J. DELANEY Acting Secretary of the Air Force 2 United States Air Force FY 2000 Financial Statement Message from the Assistant Secretary of the Air Force, Financial Management and Comptroller DEPARTMENT OF THE AIR FORCE WASHINGTON DC 20330-1130 OFFICE OF THE ASSISTANT SECRETARY February 2001 Message from the Assistant Secretary of the Air Force Financial Management and Comptroller I am pleased to present the Air Force General Funds financial statement for Fiscal Year 2000. This statement fulfills the requirements of the Chief Financial Officers Act and portions of the requirements of the Government Performance and Results Act. The statement documents how the Air Force spent the $70 billion of budget authority appropriated for FY 2000. In addition, this document briefly reviews our FY 2000 goals in light of actual performance. The Air Force successfully met its operational commitments in FY 2000 and achieved notable success in overcoming most of the staffing deficiencies of the previous fiscal year, meeting most of our target performance goals. We met our recruiting challenge; retention appears to be turning in the desired direction; and we are aggressively addressing readiness. We continue to implement financial management reforms in an effort to increase the resources available for application to the resolution of these remaining challenges. The Air Force did make progress in improving financial management in FY 2000, although much remains to be done. Achieving an auditable financial statement remains one of our key goals. In FY 2000, we continued to make progress on our plan to use the tri-annual review of obligations to remedy documentation shortcomings for older budget obligations, addressing one of the key remaining audit problems with our General Funds statement. We continued to tighten our controls to minimize the opportunities for financial fraud, and continued to implement guide- lines to increase the level of professional development and training for our key financial management personnel. We also made progress in improving some of our financial systems that provide data to the main accounting systems. The Air Force takes its responsibility for stewardship of the public funds seriously. We are therefore strongly committed to improvement in all aspects of financial management. JAMES R. SPEER Acting Assistant Secretary of the Air Force (Financial Management and Comptroller) 3 United States Air Force FY 2000 Financial Statement Overview Air Force Foundations Mission The mission of the U.S. Air Force is to defend the United States through aerospace power. Vision 2020 America’s Air Force—Global Vigilance, Reach, and Power Core Values ! Integrity First ! Service Before Self ! Excellence in All We Do Core Competencies ! Aerospace Superiority ! Global Attack ! Rapid Global Mobility ! Precision Engagement ! Information Superiority ! Agile Combat Support 5 United States Air Force FY 2000 Financial Statement Overview Air Force in Action—Year 2000 During Fiscal Year (FY) 2000, the U.S. Air Force responded to numerous challenges and contingencies with effective actions designed to provide the most suc- cessful resolutions. Perhaps the foremost of these efforts was to begin integrating the lessons learned from our successful Kosovo air campaign into the tactical and strategic knowledge base of Air Force operations. Other operations in FY 2000 included those in Iraq, contin- gency operations, and humanitarian actions at home and around the globe. Air Force Operations to Stabilize World Situations ur modernization and readiness programs Kosovo—After decisively winning peace in Kosovo, the continue our commit- Air Force continued to support the necessary details of O maintaining that peace. By providing timely materiel ment to ensuring that when our air- support and reinforcement for American and European men are called on to go into peacekeeping forces on the ground in Kosovo, the Air harm’s way, they will have the Force increased the viability of the International Relief complete set of tools to ensure Force (IRF). Air Force units operating from German that their success is never in North Atlantic Treaty Organization (NATO) bases trans- doubt. We owe them nothing less. ported Army units and their equipment to a staging base —F. Whitten Peters, in The Former Yugoslav Republic of Macedonia. In an Secretary of the Air Force effort similar to a bucket brigade operation, from this staging base the IRF moved on to Kosovo to provide Task Force Falcon with additional flexibility and force protection. Air Force capabilities were instrumental in 7 United States Air Force FY 2000 Financial Statement Air Force in Action—Year 2000 Force contingent of about 8,700 personnel based at Kunsan and Osan Air Bases continued to provide an air umbrella for protection from attack by the aggressively positioned North Korean military. North Korea continued to have a large well-armed force deployed close to the demilitarized zone and to spend a disproportionate share of its gross national product on its military at a time when its people were starving.