Contracting and finance close out the fiscal year

Published Oct. 5, 2006
By Senior Airman Holly MacDonald
20th Fighter Wing Public Affairs

SHAW AIR FORCE BASE, S.C. -- Contracting and Finance work hand-in-hand at the end of the fiscal year to get close out budgeting accomplished. The yearly budget has to be spent by Sept. 30, which causes a hectic couple of weeks.

When it comes to the partnership of contracting and finance, finance has the money and contracting solicits bids for different projects.

Contracting and finance work very closely, coordinating several times during the night of Sept. 30, making sure things get processed and are accounted for in the systems, said Randy May, 20th Contracting Acquisition Flight chief.

They can't do their job without us and we can't do our job without them, the synergy there is unbreakable, said Lt. Col. Nicholas Johnston, 20th Comptroller Squadron commander.

Each year congress signs a bill awarding the Air Force a certain amount of money.

Because the money is awarded as a yearly procreation, the money is only good for one year.

At the beginning of the year, we delegate offices a certain amount of money to operate on. The amount is based on what their needs are and based on the past year's spending. We call that initial distribution, said Lt. Col. Johnston.

At 12:01 a.m. Oct. 1, contracting is still busy. Contracting has to get the yearly contracts set up right away such as: custodial services, postal services, dining facility contractors and others. Legally, contracted personnel cannot work without a valid contract and some work night shifts, so contracting has to act fast.

Throughout the year, more contracts are made and money is spent. Sometimes contracts are not as expensive as planned for and there is left over "fall out" money. Also, "fall out" money can be left over from funds set aside for emergencies.

"At the end of the year, we say 'okay, if you had a chance to spend more money, what do you really need?' We call that a spend list. And then we try to prioritize the most important, urgent things" Lt. Col. Johnston said.

There are specified cut off dates toward the end of the year.

Contracting must send out notifications in June to the unit resource advisors to get lists together of things they need. In July, any major contract requests must be submitted. By Aug. 1, contracting sends out advertisements for base needs, and by Aug. 30, they try to have everything on contract. The contracting office still tries to work with other needs if they don't make the cut off, Mr. May said.

Two weeks out, finance is trying to get the books closed out.

"The big push is getting everything through the accounting system and the contracting system by Sept. 30, spending all that money allotted and then closing the books," Lt. Col. Johnston said.

After all the hard work the end product is where many workers may feel job satisfaction. During this fiscal year Shaw contracted $154 million total. They contracted $46 million from June through August. And in September they contracted $57 million, Mr. May said.