An Cosantóir

www.military.ie the defence forces magazine | 21 expenditure cycle, from the moment a proposal is put together, through its implementation and ultimately through to disposal. Delivering real value for money is about achieving objectives while providing the lowest whole-of- life costs; not just providing value at the point of purchase. Ultimately, all personnel must fully appreciate the 'total cost of ownership' concept, as to do otherwise runs contrary to the delivery of true value for money. The Defence Group consists of two votes within the national budget: Vote 36 (Defence) and Vote 35 (Military Pensions). Tra- ditionally, these votes are mutually supporting: shortfalls in one have been made up by the other. Recent national economic challenges, however, have led to significant changes to the annual budgetary process. In 2010 a three-year plan was developed, which was followed by the Com- prehensive Review of Expenditure (CRE) 2011 to 2014. This established a three-year financial cycle for each vote, detailing a medium-term budgetary framework (MTBF). The MTBF confirms the expenditure ceiling for each vote across the following three years. Under the DPER a second CRE was conducted in 2014, establishing ceilings for 2015, 2016 and 2017. These ceilings are reaffirmed annually as part of the budget. The annual budget is now pub- lished in October and confirmed prior to the end of the year in the Revised Estimates or 'Rev'. Follow- ing publication of the 'Rev', which regularly tweaks elements of vote allocation, Military Finance Branch publishes the Defence Forces Esti- mates Book, which provides subhead detail, facilitating expenditure and oversight. The October budget compresses the estimates process and planners have to be cognisant of earlier deadlines to secure funds for the following year. The center of gravity of the DF Annual Plan 2015 is 'The provision of adequate resources to achieve the end state.' This reaffirms that access to an adequate financial allocation is the critical enabler; the element that facilitates all other resources. We con- tinue to face the challenge of operat- ing with historically reduced financial allocations but this is a challenge the Defence Forces has successfully met year-on-year since 2009. In 2008, €1.079 billion was available to the Defence Group, an unprecedented high associ- ated with our participation in the EU-led operation in Chad. (EU missions, unlike UN missions, rely on troop contributors to meet their own costs.) In contrast the 2016 Defence Group provision will be €903.5 million, a 16% reduction from that historic high. However, with reduced payroll costs associated with revised sala- ries and new strength ceilings, the Defence Forces is emerging into a period of financial stability. This is reinforced by the recent publication of the National Capital Infrastructure and Investment Programme 2016-2021 which will see €437 million invested in the Defence Forces. A challenge for the Defence Forces is the underfunding of Vote 35 (Military Pensions) and in recent years funds from Vote 36 have been used to supplement Vote 35. However, pensions are demand-led and non-discretionary and saw a 30% increase be- tween 2007 and 2012. (The number of pensioners now outstrips the number of serving personnel.) Despite the current financial limitations, which sees Ireland ranked second lowest in the EU in terms of defence expenditure at 0.6% of GNP, the Defence Forces continues to retain critical capabilities and deliver high quality defence outputs, including an annual overseas deployment rate of approximately 9% of the force, demonstrating a significant expeditionary capability and setting an enviable international benchmark. Cognisant of the Branch's role in enhancing the awareness of the organisation's financial mechanisms, we have this year offered both external and internal courses in the area of financial manage- ment, and recently selected 18 students to undergo the Certificate in Business Accounting conducted by the Chartered Institute of Management Accounting (CIMA). It is envisaged that the relation- ship with CIMA will be developed into the future with places on this course being advertised next year. In addition, the Branch has recently redrafted the syllabus for the Introduction to Defence Forces Financial Management course, which is aimed at personnel selected or aspiring to fill appointments in financial management, G8s, subheads, or national support elements (NSEs). In addition, the Branch conducts a series of one-day seminars throughout the year for those directly involved in financial management. The Defence Forces Estimates Book and Annual Financial Report, published by the Branch, are essential guidance documents for all senior leaders and for those who aspire to fill such appointments. Financial astuteness and resource management are core com- petencies for all personnel. Leaders at all levels should have an understanding of how they incur costs and how they can deliver greater value for money. In planning, financial provision cannot be taken for granted, and a central message from the Branch is that 'planning without having the necessary financial resources required to execute the plan is dreaming.' In the financial world admin and logs do not fol- low, they lead, and they must be part of the planning process to ensure financial viability. Too often in the past, financial provision was taken for granted. This time has passed. Military Finance Branch, together with subhead holders and their staffs, and colleagues in the DoD play a critical role in the enabling process. The Branch's outputs have, in recent times, facilitated the maintenance of operational output; supported the retention of key capabilities across the Defence Forces; and delivered value for money during a period of unprecedented financial restrictions. We now look forward to a period of investment in the Defence Forces through the White Paper implementation process.

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