Defense Finance and Accounting Service
Encyclopedia
The Defense Finance and Accounting Service (DFAS) is an agency of the United States Department of Defense
that provides finance
and accounting services for the civil and military members of the Department. Headquartered in Indianapolis, IN, it was activated on Jan. 18, 1991. DFAS is the world's largest finance and accounting operation.
DFAS pays all DoD military and civilian personnel, retirees and annuitants, as well as major DoD contractors and vendors. DFAS also supports customers outside the DoD in support of electronic government initiatives. These customers include the Executive Office of the President, the Environmental Protection Agency, the Department of Energy, the Department of Veterans Affairs, the Department of Health and Human Services and the Broadcasting Board of Governors.
DFAS is a working capital
fund agency financed by reimbursement of operating costs from its governmental customers (mostly the military service departments) rather than through direct appropriations. This service-provider relationship with its customers has resulted in a continuous innovation and improvement in the quality of services DFAS provides. DFAS has steadily reduced its operating costs and has returned these savings to customers in the form of decreased costs.
In FY 2010, DFAS:
Dick Cheney
created the Defense Finance and Accounting Service to reduce the cost of Defense Department finance and accounting operations and to strengthen financial management through consolidation of finance and accounting activities across the department. Since its inception, DFAS has consolidated more than 300 installation-level finance and accounting offices into 10 sites, and reduced the work force from about 27,000 to about 13,000 personnel.
In 2003, DFAS was selected by the Office of Personnel Management
to be one of four governmental entities to provide payroll services for the U.S. government. In 2004, Nielsen Norman Group
named the Defense Finance and Accounting Service's portal (ePortal) among the 10 best government intranet
s in the world. Experts at the Nielsen reviewed hundreds of intranets before naming the top ten which shared traits like good usability and organization, performance metrics
and incremental improvements.
The 2005 round of Base Realignment and Closure
cuts had DFAS being completely restructured. Many sites were integrated into major centers. The organization has continued to shift its focus to be a joint service provider, to smoothly meet the needs of all the armed services. These changes allow the entity to do more with less and continue its exceptional performance. This transformation ensures DFAS a long and valued life in the years to come.
One of the most visible responsibilities of DFAS is handling military pay
.
United States Department of Defense
The United States Department of Defense is the U.S...
that provides finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
and accounting services for the civil and military members of the Department. Headquartered in Indianapolis, IN, it was activated on Jan. 18, 1991. DFAS is the world's largest finance and accounting operation.
DFAS pays all DoD military and civilian personnel, retirees and annuitants, as well as major DoD contractors and vendors. DFAS also supports customers outside the DoD in support of electronic government initiatives. These customers include the Executive Office of the President, the Environmental Protection Agency, the Department of Energy, the Department of Veterans Affairs, the Department of Health and Human Services and the Broadcasting Board of Governors.
DFAS is a working capital
Working capital
Working capital is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is...
fund agency financed by reimbursement of operating costs from its governmental customers (mostly the military service departments) rather than through direct appropriations. This service-provider relationship with its customers has resulted in a continuous innovation and improvement in the quality of services DFAS provides. DFAS has steadily reduced its operating costs and has returned these savings to customers in the form of decreased costs.
In FY 2010, DFAS:
- Processed 168.9 million pay transactions (6.4 million people)
- Made 8.1 million travel payments
- Paid 11.4 million commercial invoices
- Maintained 255.2 million General Ledger accounts
- Managed military retirement and health benefits funds ($487.9 billion)
- Made $578 billion in disbursements to pay recipients
- Managed $31.9 billion in foreign military sales (reimbursed by foreign governments)
- Accounted for 1,129 active DoD appropriations
History
In 1991, Secretary of DefenseUnited States Secretary of Defense
The Secretary of Defense is the head and chief executive officer of the Department of Defense of the United States of America. This position corresponds to what is generally known as a Defense Minister in other countries...
Dick Cheney
Dick Cheney
Richard Bruce "Dick" Cheney served as the 46th Vice President of the United States , under George W. Bush....
created the Defense Finance and Accounting Service to reduce the cost of Defense Department finance and accounting operations and to strengthen financial management through consolidation of finance and accounting activities across the department. Since its inception, DFAS has consolidated more than 300 installation-level finance and accounting offices into 10 sites, and reduced the work force from about 27,000 to about 13,000 personnel.
In 2003, DFAS was selected by the Office of Personnel Management
Office of Personnel Management
The United States Office of Personnel Management is an independent agency of the United States government that manages the civil service of the federal government. The current Director is John Berry.-History:...
to be one of four governmental entities to provide payroll services for the U.S. government. In 2004, Nielsen Norman Group
Nielsen Norman Group
Nielsen Norman Group is a usability consulting company created by user experience experts Donald Norman, Jakob Nielsen, and Bruce Tognazzini. Besides these three principals, there are many lesser known experts in the company....
named the Defense Finance and Accounting Service's portal (ePortal) among the 10 best government intranet
Intranet
An intranet is a computer network that uses Internet Protocol technology to securely share any part of an organization's information or network operating system within that organization. The term is used in contrast to internet, a network between organizations, and instead refers to a network...
s in the world. Experts at the Nielsen reviewed hundreds of intranets before naming the top ten which shared traits like good usability and organization, performance metrics
Software metric
A software metric is a measure of some property of a piece of software or its specifications. Since quantitative measurements are essential in all sciences, there is a continuous effort by computer science practitioners and theoreticians to bring similar approaches to software development...
and incremental improvements.
The 2005 round of Base Realignment and Closure
Base Realignment and Closure
Base Realignment and Closure is a process of the United States federal government directed at the administration and operation of the Armed Forces, used by the United States Department of Defense and Congress to close excess military installations and realign the total asset inventory to reduce...
cuts had DFAS being completely restructured. Many sites were integrated into major centers. The organization has continued to shift its focus to be a joint service provider, to smoothly meet the needs of all the armed services. These changes allow the entity to do more with less and continue its exceptional performance. This transformation ensures DFAS a long and valued life in the years to come.
One of the most visible responsibilities of DFAS is handling military pay
United States Military Pay
United States Military Pay is money paid to members in the United States Armed Forces. The amount of pay may vary by the member's rank, time in the military, location duty assignment, and by some special skills the member may have.-Pay versus Allowance:...
.
Locations
- Current locations:
- Major Sites
- Indianapolis, IndianaIndianapolis, IndianaIndianapolis is the capital of the U.S. state of Indiana, and the county seat of Marion County, Indiana. As of the 2010 United States Census, the city's population is 839,489. It is by far Indiana's largest city and, as of the 2010 U.S...
(Headquarters) - DFAS is headquarted in the MG Emmett J. Bean Finance Center, a 1600000 square feet (148,644.9 m²) building that was part of Fort Benjamin HarrisonFort Benjamin HarrisonFort Benjamin Harrison was a U.S. Army post located in suburban Lawrence, Indiana, northeast of Indianapolis. It is named for the 23rd United States President, Benjamin Harrison. Land was purchased in 1903, with the post being officially named for President Harrison in honor of Indianapolis being...
. A solar panel system was installed on the roof of the building in 2010, allowing the building to generate 1.8-MW. - Cleveland, OhioCleveland, OhioCleveland is a city in the U.S. state of Ohio and is the county seat of Cuyahoga County, the most populous county in the state. The city is located in northeastern Ohio on the southern shore of Lake Erie, approximately west of the Pennsylvania border...
- Columbus, OhioColumbus, OhioColumbus is the capital of and the largest city in the U.S. state of Ohio. The broader metropolitan area encompasses several counties and is the third largest in Ohio behind those of Cleveland and Cincinnati. Columbus is the third largest city in the American Midwest, and the fifteenth largest city...
- Limestone, MaineLimestone, MaineLimestone is a town in Aroostook County, Maine, United States. The population was 2,314 at the 2010 census. The town is best known for being the home of the Loring Commerce Center...
- Rome, New YorkRome, New YorkRome is a city in Oneida County, New York, United States. It is located in north-central or "upstate" New York. The population was 44,797 at the 2010 census. It is in New York's 24th congressional district. In 1758, British forces began construction of Fort Stanwix at this strategic location, but...
- EuropeEuropeEurope is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
- JapanJapanJapan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
- Europe
- Indianapolis, Indiana
- Smaller scaled back sites
- Arlington, Virginia (realigned)
- Texarkana, TexasTexarkana, TexasTexarkana is a city in Bowie County, Texas, United States. It effectively functions as one half of a city which crosses a state line — the other half, the city of Texarkana, Arkansas, lies on the other side of State Line Avenue...
- Bratenahl, OhioBratenahl, OhioBratenahl is a wealthy village in Cuyahoga County, Ohio, United States. It is bordered by the city of Cleveland on three sides and by the shoreline of Lake Erie to the north. The population was 1,197 at the 2010 census...
- Major Sites
- Closed sites:
- Patuxent River, Maryland
- Charleston, South CarolinaCharleston, South CarolinaCharleston is the second largest city in the U.S. state of South Carolina. It was made the county seat of Charleston County in 1901 when Charleston County was founded. The city's original name was Charles Towne in 1670, and it moved to its present location from a location on the west bank of the...
- Dayton, OhioDayton, OhioDayton is the 6th largest city in the U.S. state of Ohio and the county seat of Montgomery County, the fifth most populous county in the state. The population was 141,527 at the 2010 census. The Dayton Metropolitan Statistical Area had a population of 841,502 in the 2010 census...
- Denver, ColoradoDenver, ColoradoThe City and County of Denver is the capital and the most populous city of the U.S. state of Colorado. Denver is a consolidated city-county, located in the South Platte River Valley on the western edge of the High Plains just east of the Front Range of the Rocky Mountains...
-Lowry Air Force BaseLowry Air Force BaseLowry Air Force Base is a former United States Air Force base located in the cities of Aurora and Denver, Colorado. Its primary mission throughout its existence was Air Force technical training and was heavily involved with the training of United States Army Air Forces bomber crews during World... - Kansas City, MissouriKansas City, MissouriKansas City, Missouri is the largest city in the U.S. state of Missouri and is the anchor city of the Kansas City Metropolitan Area, the second largest metropolitan area in Missouri. It encompasses in parts of Jackson, Clay, Cass, and Platte counties...
- Lawton, OklahomaLawton, OklahomaThe city of Lawton is the county seat of Comanche County, in the U.S. state of Oklahoma. Located in the southwestern region of Oklahoma approximately southwest of Oklahoma City, it is the principal city of the Lawton Oklahoma Metropolitan Statistical Area...
- Lexington, KentuckyLexington, KentuckyLexington is the second-largest city in Kentucky and the 63rd largest in the US. Known as the "Thoroughbred City" and the "Horse Capital of the World", it is located in the heart of Kentucky's Bluegrass region...
- Norfolk, VirginiaNorfolk, VirginiaNorfolk is an independent city in the Commonwealth of Virginia in the United States. With a population of 242,803 as of the 2010 Census, it is Virginia's second-largest city behind neighboring Virginia Beach....
- Omaha, NebraskaOmaha, NebraskaOmaha is the largest city in the state of Nebraska, United States, and is the county seat of Douglas County. It is located in the Midwestern United States on the Missouri River, about 20 miles north of the mouth of the Platte River...
- Oakland, CaliforniaOakland, CaliforniaOakland is a major West Coast port city on San Francisco Bay in the U.S. state of California. It is the eighth-largest city in the state with a 2010 population of 390,724...
- Orlando, FloridaOrlando, FloridaOrlando is a city in the central region of the U.S. state of Florida. It is the county seat of Orange County, and the center of the Greater Orlando metropolitan area. According to the 2010 US Census, the city had a population of 238,300, making Orlando the 79th largest city in the United States...
- Pacific
- Pensacola, FloridaPensacola, FloridaPensacola is the westernmost city in the Florida Panhandle and the county seat of Escambia County, Florida, United States of America. As of the 2000 census, the city had a total population of 56,255 and as of 2009, the estimated population was 53,752...
- Rock Island, IllinoisRock Island, IllinoisRock Island is the county seat of Rock Island County, Illinois, United States. The population was 40,884 at the 2010 census. Located on the Mississippi River, it is one of the Quad Cities, along with neighboring Moline, East Moline, and the Iowa cities of Davenport and Bettendorf. The Quad Cities...
- St. Louis, MissouriSt. Louis, MissouriSt. Louis is an independent city on the eastern border of Missouri, United States. With a population of 319,294, it was the 58th-largest U.S. city at the 2010 U.S. Census. The Greater St...
- San Antonio, TexasSan Antonio, TexasSan Antonio is the seventh-largest city in the United States of America and the second-largest city within the state of Texas, with a population of 1.33 million. Located in the American Southwest and the south–central part of Texas, the city serves as the seat of Bexar County. In 2011,...
- San Bernardino, CaliforniaSan Bernardino, CaliforniaSan Bernardino is a city located in the Riverside-San Bernardino metropolitan area , and serves as the county seat of San Bernardino County, California, United States...
- San Diego, CaliforniaSan Diego, CaliforniaSan Diego is the eighth-largest city in the United States and second-largest city in California. The city is located on the coast of the Pacific Ocean in Southern California, immediately adjacent to the Mexican border. The birthplace of California, San Diego is known for its mild year-round...
- Seaside, CaliforniaSeaside, CaliforniaSeaside is a city in Monterey County, California, United States, with a population of 33,025 as of the 2010 census. Seaside is located east-northeast of Monterey, at an elevation of 33 feet...