“Balancing acts” are often difficult feats, requiring both delicacy and precision, but for one U.S. Army financial manager, it’s much more than an act – it’s a profession.
For his efforts in keeping the Army’s portion of the Fund Balance with Treasury Statement of Difference reconciled, Stede Harwood, U.S. Army Financial Management Command financial management systems analyst, was recently named a U.S. Army Materiel Command employee of the quarter for the first quarter of Fiscal Year 2025.
“Stede's tireless efforts, collaborative spirit, and expertise resulted in a remarkable 96.8 percent reduction in aged Statement of Difference transactions, significantly mitigating audit risk and improving the accuracy of financial statements,” said Maj. Todd Anderson, USAFMCOM Financial Management and Field Operations Oversight supervisor under Army Financial Services.
The SOD report identifies the differences between what is being recorded in Army disbursing systems and what is being ultimately reported to the U.S. Treasury.
“When he sees things that aren’t balancing, Stede works with various disbursing offices here in the states, like those at the Defense Finance and Accounting Service and overseas like the ones operated by the 106th Finance Battalion in Germany and the 125th FIBN in the Pacific, and to fix any issues,” said Ken Crowder, AFS director.
“The metric the Treasury established for us to be in compliance is 60 days or less,” explained Harwood. “You have that long to clear or reconcile any differences before its considered aged, which ultimately impacts the Army's financial statements and auditability.”
While Army disbursing systems are critical systems providing warfighters the funds necessary to fight and win, especially in a contested environment with limited connectivity, the controls in the disbursing systems aren’t as numerous as those in the Army’s General Fund Enterprise Business System.
“Normal operations go through GFEBS with a lot of internal controls,” elaborated Crowder. “In the disbursing systems there aren’t as many controls and not as many people are looking at those systems, so sometimes people feel like they can be more expedient and miss out on proper documentation.”
That lack of documentation leads to many of the discrepancies Harwood must reconcile, he added.
Complicating Harwood’s efforts, Crowder said that the amount of transaction types, the structure of the Army, and the inexperience of junior disbursing officers can make things more difficult to correct once they are out of balance.
“The people he has to work with don’t work for us, they are often new to their roles, and the processes are always evolving,” said Crowder. “Stede has to be incredibly knowledgeable on all the transactions out there, he has to have great skills in establishing cooperation, and he has to train young lieutenants and captains on the constant changes.”
That collaboration and teamwork is where Anderson said Harwood really shines and what ultimately resulted in such large results.
“Stede brought together a team of stakeholders from across the [Department of Defense] and encouraged them to take action,” the Major explained. “His dedication and perseverance were instrumental in addressing the large backlog of [discrepancies], which had grown to nearly 700 transactions.”
While his bosses said they were impressed by his feats in a one-deep position, Harwood doesn’t see it in the same light.
“This is an honor, and I appreciate the acknowledgement of the work I have done; however, this effort isn't a solo act,” he explained. “It's taken an army of individuals who take the job seriously in ensuring Army funds are recorded timely and accurately.
“I'm honestly thrilled at the inroads I've been able to forge with DFAS Cleveland and the various Army commands to bring attention to the need for timely collections,” Harwood continued. “The results speak to that collaborative effort.”
“Stede's achievements are a testament to his exceptional analytical skills, attention to detail, and ability to collaborate with others,” concurred Anderson, who added that part of what makes Harwood so good at his job is his attention to not only fixing problems but preventing them as well.
“His proposal and review of instructional documentation to enable direct vouchering will have a lasting impact on preventing [discrepancies] from being created in the future,” the major added.
Harwood first began his career with Army finance and comptroller operations as a Soldier, enlisting in 1987. After 13 years of service, he worked for a time in the commercial world before rejoining the DoD as a contractor working with the Deployable Disbursing System in 2009. In 2012, Harwood joined the ranks of civil servants at DFAS, where he served for 11 years before joining USAFMCOM.
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