The Services historically propose annual budgets that contain an amount for base operating support that is significantly less than the known requirements.

Secretary Westphal and Secretary Matiella, to what extent are these efforts documented sufficiently to help ensure that they will be implemented in a timely and effective manner?

Secretary Hale, according to the 10-K Securities and Exchange Commission reports that the four top defense contractors recently filed, the difference between their pension plan assets and future pension liabilities range from $2.9 billion…

Due to a change in Federal accounting rules that would accelerate the amount contractors can recover from DOD for their employee pension costs, DOD may have to pay billions of dollars more for weapons programs than originally planned.

How do we solve this? How do we get to the point where there is not this position?

How concerned are you about this issue today?

Let me just ask you, Secretary Hale.

How can we change this process to ensure the budget proposals reviewed by Congress are an accurate accounting of what we expect to pay?

I understand that, among all the Services, the Air Force may have the most difficulty meeting Secretary Panetta's accelerated goal of 2014, as opposed to 2017, to achieve auditability of its SBR.

I think where we become concerned, is when it is leading us in directions that we did not authorize.

I appreciate that and we certainly would like to see your policies and appreciate that this is something you have already put a focus on prior to this incident that was really a complete debacle.

without the ability to audit DOD's Statement of Budgetary Resources (SBR), how do we actually know we are saving this money?