Navy Escrow Account: Increasing Financial Flexibility

摘要

The current fiscally constrained environment creates several challenges for Department of the Navy (DoN) and Department of Defense (DoD) financial managers. One of the most critical is balancing operational requirements with the need to replace ships, aircraft, and facilities. To that end, transforming the current financial practices within the DoN/DoD is required. This paper addresses the proposed Navy escrow account, a mechanism for eliminating wasteful spending while maximizing all available financial resources. The account, as envisioned, would provide financial managers with the incentive to generate cost savings and the means by which those funds could be recapitalized. The creation of an escrow account coincides with the Navy's Sea Enterprise initiative, the resource enabler of Sea Power 21. Sea Enterprise builds upon the three strategic imperatives of changing the culture, changing structure and processes, and harvesting savings.