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AT THE FOREFRONT

Throughout the year, I was able to supplement my training with a trip to Chicago to observe operations of
the Federal Reserve Bank (FRB) of Chicago. Later when back at Merchants Bank, I would visit the Chicago
FRB’s District Branch in Indianapolis. Another trip to Chicago provided a week’s training at the Continental
Illinois National Bank and Trust. My time there focused on foreign exchange training at the bank’s
International Trading Desk. (Note: There is no truth to the rumor that my time spent there in 1981 led to the
bank’s government bailout in 1984 – an early example of “too big to fail”! I received additional training at the
Treasury in Washington, DC, and an American Banking Association course in New York City.

The TWI program in banking continues to offer opportunities to financial management officers. Since then,
the program has added opportunities for noncommissioned officers to participate. For many others, shorter
courses are available to financial management military personnel who have a desire to gain knowledge and
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skills in banking operations and service.

Resources for the Historically Inclined

How did we get from 1942 (when the War Department expressed an urgent need for military banking facilities
(MBFs) to 1990? Several authors and organizations contributed to the history of MBFs. I highly recommend
two authors, whose writings contain many references to individuals and organizations during that period.
Also recommended is one of several Government Accounting Office (GAO) (Government Accountability
Office since 2004) reports in 1975 leading to the transfer of MBF operations and funding from Treasury to
the DoD in 1978.

• Dr. Ronald L. Adolphi, for the period 1942 to 1982, who provides the history of MBFs and many of
the surrounding issues dealing with operations, services provided, revenue, costs, and regulatory
oversight.
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• Lieutenant Colonel Billy Barker, U.S. Army, Finance Corps, who’s Army War College research paper
in 1990 addresses the recurring issues of MBFs and the cost of business from bank contractor’s
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perspective.
• GAO report in 1975 included recommendations for DoD to reimburse Treasury for MBF operating
losses and to require the military services to take a more active role in the overseas MBFs.
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Assignment to U. S. Army Finance and Accounting Center (USAFAC)

The Military Department’s banking staffs began formalizing in 1978, soon after Treasury and DoD signed
two memorandums of understanding to transfer responsibility and funding for military MBFs from Treasury
to DoD. For the Army, USAFAC (primarily Colonel Ralph Dixon, Jr.), under the auspices of the Comptroller
of the Army (COA), began identifying and organizing individuals to create a military banking team. Although
it would take a few years, establishing a TWI program was a collaborative effort between the COA and
USAFAC staffs. Like some other parts of USAFAC, the banking staff wore two hats: first with respect to
operations, for instance maintaining regulations and writing procedures (USAFAC) and second, for creating
and updating policies as the Assistant COA (Finance and Accounting).

As the first Finance Corps officer to complete the TWI program, I was not the first Army Banking Officer. That
designation appropriately belongs to Captain Sharon Volgyi. She worked with Mr. Richard Hahn, Chief,
Disbursing and Banking Division, Field Services Office, USAFAC, and other banking and credit union staff
members on multiple domestic and overseas cash management initiatives. Mr. Hahn’s area of responsibility
also included disbursing operations (including losses of funds), SURE PAY/Check to Bank, Debt
Management, and the Prompt Pay Act. Whether by coincidence or fate, my role became clear as current
Presidential initiatives and governmentwide events focused on cash management and cost reduction in the
federal government.

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