Budget Reviews
The annual budget review is a comprehensive financial analysis of the proposed budget as submitted by the Project Owner in accordance with the transaction documents. The budget is benchmarked against prior year actual financials, pro forma financials for the coming year, and other similarly scoped projects. The review contains a narrative overview, in addition to a series of questions/items raised by the portfolio management team, and the responses provided by the Project Owner. AF Portfolio Management branch makes recommendations on approval to the installation (MRC) but does not have the authority to grant approval itself. According to the delegation of authority, the Wing Commander or MAJCOM is typically authorized to grant approval.
In most cases, Project Owners are required to submit an annual operating budget not less than 90 days prior to the commencement of each Project fiscal year. Depending on the Project's Delegation of Authority, the Air Force (Installation Wing Commander or MAJCOM) has thirty or sixty days from receipt of the budget (specific dates will be identified in the project's transaction documents) to issue an approval or rejection. Rejections are usually accompanied by suggested alternatives or modifications. If the Project Owner and the Air Force do not reach an agreement with respect to the preliminary budget within thirty day's after the Air Force's initial rejection, the Project Owner is required to begin operations for the upcoming fiscal year under the governance of the existing (current year) budget.
