department of defense agency financial report fiscal year 2012

Department of Defense Agency Financial Report for FY 2012
MANAGEMENT’S DISCUSSION AND ANALYSIS
FISCAL YEAR 2012 OVERVIEW
The Department of Defense fields, sustains, and
employs the military capabilities necessary to
protect the United States and its allies and to
advance our national interests. Key among
America’s interests is security, prosperity, broad
respect for universal values, and an international
order that promotes cooperative action.
For FY 2012, the Department continued to shape
its program based on the defense strategy
expressed in the 2010 Quadrennial Defense Review
(QDR) report, a legislative-mandated review of
DoD strategies and priorities. The 2010 QDR
identified four priority objectives:
• Prevail in today’s wars
• Prevent and deter future conflict
• Prepare to defeat adversaries and succeed in a
wide variety of contingencies
• Preserve and enhance the All-Volunteer Force
7
Leon E. Panetta
Secretary of Defense
To enhance the ability of U.S. forces to protect and advance U.S. interests in both the near-
and long-term, the Department has focused on prevailing in today’s wars and rebalancing
military capabilities to prepare for an uncertain future. The Department also has sought to
further reform our institutions and processes to better support the urgent needs of the
warfighter; buy weapons that are effective, affordable, and truly needed, and ensure
taxpayer dollars are spent wisely and responsibly. The 2010 QDR and the FY 2012 budget
also address the Department’s imperative to take care of its people. Much has been asked
of the All-Volunteer Force and the civilians who have supported that force over the past
decade, and, as a nation, we are obligated to take care of our people to the best of our
ability.
During FY 2012, the Department’s enacted appropriations amounted to $645.7 billion
(Figure 2 depicts the composition of DoD’s budget authority). The DoD FY 2012 budget was
crafted to rebalance the priorities of America’s defense establishment, institutionalizing
successful wartime innovations to better enable success in today’s wars while ensuring that
our forces are prepared for a complex future. The funding enabled the Department to
maintain readiness to conduct missions abroad and a full spectrum of training, combat
training center rotations, and recruiting and retention efforts.
Management’s Discussion and Analysis