asmc defense financial management - asmc … training... · service motivation technical...

Al Runnels, CDFM Executive Director

ASMC

ASMC

&

DEFENSE FINANCIAL

MANAGEMENT

AGENDA

ASMC – Your Professional Society

The FM Profession

Financial Management Environment

Membership

Certification Programs (ASMC and DoD)

DoD Audit Readiness

ASMC National and Virtual PDI

2

ASMC

Non-profit association founded in 1948

Serves DoD and US Coast Guard financial managers

17,521 members, 155 chapters, 68 corporate members

Major offerings

Chapter training programs

Certification program (CDFM)

National / Regional / Local PDIs

Armed Forces Comptroller Journal

Selected training courses (Fiscal Law / Acq)

National Awards Program

Scholarship Program

Leadership Development 3

DEFENSE FINANCIAL

MANAGEMENT PROFESSION

Broad Body of Knowledge

Public Trust / Ethical Standards

Legal Liability

Stewardship of Taxpayer Dollars

4

EDFM/CDFM CORE

COMPETENCIES

1. Government Resource Management Environment

2. Fiscal Law

3. Finance

4. Accounting

5. Defense Budget Process

6. Manpower Management

7. Personnel Management

8. Cost and Economic Analysis

9. Internal Controls

10. Business Management Process Improvement

11. Auditing

5

DOD FM ENTERPRISE-W IDE COMPETENCIES

(1 – 17 APPLY TO DOD FMCP )

1. Fundamentals & Operations of Finance

2. Fundamentals & Operations of Military & Civilian Pay

3. Payroll Concepts, Policies & Principles

4. Commercial Pay Concepts, Policies & Principles

5. Financial Concepts, Policies & Principles

6. Fundamentals & Operations of Accounting

7. Accounting Concepts, Policies & Principles

8. Accounting Analysis

9. Fundamentals and Operations of Budget

10. Budget Concepts, Policies & Principles

12. Budget Formulation, Justification & Presentation

13. Financial Management Analysis

14. Audit Concepts, Policies & Principles

15. Financial Management Systems

16. Advanced Financial Management

17. Decision Support

18. Audit Planning & Management

19. Audit Reporting

20. Decision Support - Audit Execution

21. Financial Management & Reporting Analysis

22. Financial Reporting

23. Financial Stewardship

6

US Government Spending as a Percentage of GDP (Source: FY 2014 Consolidated Federal Financial Report)

7

US Government Taxes and Other Revenue (Source: FY 2014 Consolidated Federal Financial Report)

8

US Budget Deficit & Net Operating Cost (Source: FY 2014 Consolidated Federal Financial Report)

9

$450

$470

$490

$510

$530

$550

$570

$590

$610

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

FY 2013 PB FY 2016 PB Sequester-Level

PB 16 Base Budget Supports the 2014 QDR StrategySequester-Level Budgets Do Not

($B)

10

The FY 2016 President’s Budget is a

Strategy-Driven, Resource-Informed Budget

585574

437468

479

534

601

666666

691687

645

33

583

6

23

3

8

3

71

17

597

* Reflects FY 2013 Enacted level excluding Sequestration

614*

560578 591

Numbers may not add due to rounding

$750

$250

$500

$0FY01 FY02 FY03 FY04 FY05 FY06 FY08FY07 FY09 FY10 FY12FY11 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

287 328 365 377 400 411 431 479 513 528 528 530 495 496 496 534 547 556 564 570

345316

581

166

7391

76116

187 146162 159

115

82 85 6451 27 27 27 27

DoD Topline, FY 2001 – FY 2020(Current Dollars in Billions)

The $27 million shown in FY 2017 through FY 2020 for OCO are placeholder amounts

Base Budget OCO Other

11

198.4

663.0

376.5

566.3

388.0

615.9

398.1

751.8

598.8585.3

553.4

0

100

200

300

400

500

600

700

800

50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

Projections (red bars) assume FYDP plus $26.7 billion annual

placeholders for OCO in years beyond FY 2016

Korea Vietnam Reagan Buildup

Iraq/Afghan

Fiscal Year

(FY 2016 Dollars in Billions)

VietnamFY68-74: -29.9%

Buildup/Cold WarFY86-98: -32.8%

KoreaFY52-56: -42.4%

Total Budget Trends(Including supplemental and OCO funding)

FY10 – FY20:-26%/-$198B

12

0%

10%

20%

30%

40%

50%

60%

70%

80%

1950 1960 1970 1980 1990 2000 2010

DoD Outlays as a Percentage of Federal SpendingFY 1950 - FY 2016

Korea57.0%

Vietnam43.4%

FY 2016 : 14.3%

Reagan (1986)

Build Up26.8%

13

ASMC MEMBERS(AS OF 1 JUNE 2015)

17,521 (32% of 54,000 Defense FMers)

ASMC Members DoD FMers (53,300)

Army 5,152 (29%) 13,800 (26%)

Air Force 4,446 (25%) 12,000 (23%)

Navy 2,070 (12%)

USMC 615 (4%)

DFAS 1,233 (7%) 8,800 (16%)

DON: 10,100 (19%)

14

ASMC MEMBERSHIP

Membership growth campaign (May/June 2013)

Re-established Membership Committee – met four times since May 2014

Renewals Campaign / Outreach to Drops (Sep – Nov 2014)

Top 30 Chapters by Size

Focus on Early Careerists

$26 Annual Membership Fee

ENGAGEMENT AND VALUE

15

DOD FM CERTIFICATION PROGRAM

Approved in FY 2012 NDAA

Skill levels: 1, 2, and 3

Two years to complete at each level

Specific course based requirements

Additional test-based certification encouraged

Bachelor and advanced degrees encouraged

Continuing Education and Training Units

required after completion: 40 / 60 / 80 at Levels

1 / 2 / 3, respectively

17

Establish a framework to guide DoD FM professional development

Intent is to make a good FM workforce even better!

• Establish a mechanism to encourage key training in

Audit Readiness

Decision Support/Analysis

• Encourage career broadening and leadership

• Transition to a more analytic orientation

• Ensure financial management workforce has knowledge, skills, and abilities

necessary to achieve auditable financial statements

Course-based rather than test-based

Based on FM and Leadership Competencies

Purpose of DoD FMCP

https://fmonline.ousdc.osd.mil/ 18

Applicable to DoD Civilians and Military in the DoD FM Workforce

DoD FM Workforce includes personnel who are assigned to FM

designated positions:

—Civilians in the 05XX Occupational Series;

—Civilians who perform financial management tasks, but are not in the

05XX Occupational Series;

—Military members in FM Occupational Specialties;

—Military members who perform financial management tasks, but are not

in FM Occupational Specialties.

All FM positions will be coded Level 1, Level 2, or Level 3

No Grandfathering—no incumbent DoD FM members receive

Certification “automatically;” all must achieve Certification

Two years to achieve certification

DoD FMCP Applicability


Flexibility Integrity/Honesty Interpersonal SkillsResilience Customer Service Oral CommunicationContinual Learning Problem Solving Written CommunicationService Motivation Technical Credibility Mission OrientationComputer Literacy

Team BuildingAccountability

DecisivenessInfluencing/Negotiating

DoD Mission and Culture

Human Capital ManagementLeveraging Diversity

Conflict ManagementDeveloping Others

DoD Corporate PerspectiveNational Security Foundation

Technology ManagementFinancial Management

Creativity and InnovationPartnering

EntrepreneurshipNational Defense Integration

National Security Environment

VisionExternal Awareness

Strategic ThinkingPolitical Savvy

Global PerspectiveNational Security Strategy

Lead the

Institution

Lead Self

Lead Teams/Projects

Lead People

Lead Organizations/

Programs

20

DoD FM Certification Requirements at each of three Levels:

– Training in FM Competencies (course-based)

– Training in Leadership Competencies (course-based)

– Other Required Courses

– FM Experience / DoD FM Experience

– Developmental Assignment (Level 3)

– Continuing Education and Training (CET)

Encourages:

– Formal Education and FM Test-Based Certification (Levels 2 and 3)

21https://fmonline.ousdc.osd.mil/

FM Certification Requirements

Foundation Built on DoD FM Competencies

FM Certification Equation: Level 1

FM

Competencies

Course

Hours

Financial Management Systems* 6

Decision Support* 4

Fundamentals and Operations of [X]

[Accounting, Budget, Finance, or

Military and Civilian Pay]*6

Aligned Courses on FM myLearn

Leadership

Competencies

Lead Self Level 6 Aligned Courses will be on FM

myLearn

DoD FM 101 Course** 24

At Least 2 Yrs DoD FM Experience

FM Certification Level 1

+

+

+

* Proficiency Level 1** Six of the twelve modules may be waived with the exception of Audit Readiness

40 CETs every two years


Total Course Hours 46

DoD FM 101 Modules

Course: DoD FM 101 for Level 1 Modules* Course Hours

Introduction to DoD 1

Accounting 2

Finance 2

Budget 3

Audit Readiness 3

Fiscal Law 2

Ethics 1

PPBE 2

Auditing 2

Analysis/Decision Support 2

Acquisition/Contracting 2

Cost Analysis 2

*Six of the twelve modules may be waived with the exception of Audit Readiness



FM

Competencies

Course

Hours

Financial Management Systems* 8

Decision Support* 8

Accounting Analysis OR Financial Mgt

Analysis*10

Budget Formulation, Justification and

Presentation OR Budget Execution*10

Concepts, Policies and Principles of [X]*

[Accounting, Audit, Budget, Finance,

Commercial Pay, or Payroll]10

Fundamentals and Operations of [Y]

[Accounting, Budget, Finance, or Military

and Civilian Pay]**6


Leadership

Competencies

Lead Teams/Projects Level 10

Aligned Courses will be on FM

myLearn

Audit Readiness + Fiscal Law Course + Ethics Courses 9

At Least 4 Yrs FM Experience Required (2 years Must be DoD FM Experience)


+

+

+

* Proficiency Level 3 ** Proficiency Level 1

+ [Recommended] At Least One 3-month Developmental Assignment + [Recommended] Work towards Bachelor’s Degree+ [Recommended] Completion of one of the DoD-approved

Test-Based Certifications

60 CETs every two years




FM

Competencies

Course

Hours

Financial Management Systems * 4

Decision Support * 10

Accounting Analysis AND Financial Mgt

Analysis *12

Budget Formulation, Justification and

Presentation AND Budget Execution *12

Advanced Financial Management * 12

Concepts Policies and Principles of [Y]

[Accounting, Audit, Budget, Finance,

Commercial Pay, or Payroll] **10

Leadership

Competencies

Lead People Level 12

Audit Readiness + Fiscal Law Course + Ethics Courses *** 9 At Least 8 Yrs FM Experience Required(2 years Must be DoD FM Experience)


++

+

+ [Strongly Recommended] Work towards Master’s Degree+ [Strongly Recommended] Completion of one of the DoD-approved

Test-Based Certifications 80 CETs every two years

At Least One 3-month Developmental Assignment

+* Proficiency Level 5** Proficiency Level 3*** Higher Proficiency Level Course

https://fmonline.ousdc.osd.mil/


Aligned Courses will be on FM

myLearn


25

DoD FM LMS Requirements

A Sharable/Content Object Reference Model (SCORM) & Section 508

Compliant System that Facilitates:

• Administration / Oversight / Validation / Auditability

Documents/Tracks:

• Required Course Curricula for Your Positions

• Achievement of Certification Requirements

• Documentation of Certification Requirements

• Achievement of Required # Years Work Experience

• Achievement of Developmental Assignment (Level 3)

• Continuing Education and Training (CETs)

Tracks Progress from Reporting to Validation

Hosts/Launches OUSD(C) Developed Web-Based Courses

Documents Waivers if Applicable

Applicable to both Civilian and Military

https://fmonline.ousdc.osd.mil 26

BENEFITS OF CDFM

Solid foundation in support of DoD and US Coast Guard financial management communities

Knowledge of defense financial management

Greater confidence on the job

Enhanced credibility and employee value

Portable & tangible indicator of experience and knowledge

Continuing education requirement

EDFMT – Credit toward DoD FMCP

Level 1: 8 hours; Level 2: 32 hours

27

Enhanced Defense Financial Management Training CourseFM MyLearn Course Description: FMF2512 – Jul 12

Course Length: 40 hours

Aligned FM Competencies Certification Level

ProficiencyLevel

AlignedHours

Accounting Concepts, Policies and Principles 2 3 6

Audit Concepts, Policies and Principles 2 3 3

Budget Concepts, Policies and Principles 2 3 8

Budget Execution 2 3 5

Budget Formulation, Justification and Presentation

2 3 4

Decision Support 1 1 5

Financial Concepts, Policies and Principles 2 3 4

Financial Management Analysis 2 3 2

Fundamentals and Operations of Budget 1 1 3

Certification Level 1 Total Certification Level 2 Total

8 Hours 32 Hours28

ACTIVE CDFMS(AS OF 1 JUNE 2015)

7,165 CDFMs (13% of 54,000) (1,762 CDFM-A)

CDFMs DoD FMers

Army 2,114 (30%) 26%

Air Force 1,734 (24%) 23%

Navy 906 (13%)

USMC 252 (4%)

DFAS 361 (5%) 16%

DON: 19%

29

CDFM INITIAL

REQUIREMENTS

Ethics - read and agree to abide by ASMC’s Pledge of Professionalism

Education - High School Diploma or equivalent

Examination - pass three CDFM examination modules

Experience -

No degree - have at least three years in defense-related FM

Degree (associate or higher) - complete at least two years of defense-related FM

If no defense-related FM - have at least four years of federal government -related FM

30

CDFM CERTIFICATION PROCESS

Step 1 – Adhere to ASMC Pledge of Professionalism

Step 2 - Enroll in CDFM Program

Step 3 - Submit Verification of Financial Management Experience Form

Step 4 – Purchase CDFM examinations (3 Modules)

Step 5 – Schedule CDFM examinations

Step 6 - Prepare for CDFM examinations

Step 7 – Pass CDFM examination

Step 8 - Renew certification every two years

31

CDFM COST / MAINTENANCE

Earning the certification

Enrollment fee - $40 members$75 non-members

Examination fee - $99 per exam

Maintaining the certification

Renewal fee - $25 members$45 non-members

80 CPEs every 2 years (incl 2 Ethics); at least 20 in each year

32

Certified Defense Financial Manager™ (CDFM®)- Enrollment fee @ $35/$70 (ASMC member/non-member)- 3 exams @ $95 each - Renewal fee @ $20/$40 (ASMC member/non-member)

Certified Public Accountant (CPA)

- Application fee ranges from $50-$150 (established by Board of Accountancy)

- 4 exams @ average $200 each (fee depends on section of exam and jurisdiction)

- Additional fee required for CPA license (issued at jurisdiction level)

Certified Government Financial Manager® (CGFM®)- Application fee @ $85 - 3 exams @ $109 each

Certified Public Finance Officer (CPFO)- 5 exams @ $295 for first exam and $145 each for remaining four

CERTIFICATION PRICING

COMPARISON

33

PREPARATION FOR CDFM

Start with www.asmconline.org

Preparation options

Enhanced Defense Financial Management Training Course (EDFMTC)

Pre-PDI workshops

Refresher courses

Self-Study (not an option – a must)

34

http://www.asmconline.org

CERTIFICATION FOCUS

Focus on enrollees who have not completed CDFM

Survey - Mod 2 Budget and Cost Management

Refresher Course

Exam Update Project

Textbook Update

“Live, on-line, instructor led” training

Virtual presentation (Mod 1.1)

35

The Big Picture…

…and Challenge

HISTORY OF AUDIT EFFORTS TO DATE

The Financial Audit Requirement and DoD Approach

FIAR Office Established

2005

1994

Initial Priorities Established

2009

2014

Pre-2009

Audit emphasis largely within only the

comptroller organizations

Post-2009

Audit efforts involve all functional areas

enterprise-wideInitial DoD Efforts Begin

FY 2014 Statutory Direction

Achieve Audit Readiness

of General Fund Statement of

Budgetary Resources (SBR)

2017 FY 2017 Statutory Direction

Achieve Full

Agency Financial Statement

Audit Readiness

36

ASMC PDI 2015(27 – 29 May 2015)

Feedback: GREAT TRAINING & PROFESSIONAL

DEVELOPMENT!!!

2500 Participants

120 - CDFM Prep Training and CDFM Testing

Training Content:

General Sessions

Service Day

19 Mini-courses & Workshops

Up to 21 CPEs/CETs

ASMC National Awards Program

Included Access to Virtual PDI 2016 37

ASMC PDI 2016(1-3 June 2016)

Orlando, FL Host Chapter - Central Lightning

Chapter Tampa Bay, Greater Jacksonville, and

Space Coast Chapters supporting

CDFM Prep Training and CDFM Testing

Training Content:

General Sessions

Service Day

Mini-courses & Workshops

Up to 21 CPEs/CETs

ASMC National Awards Program

Will Again Include Access to Virtual PDI 201538

VIRTUAL PDI 2015

Audio recording including (19 Mini-Courses / approx 50 workshops)

Approx 100 hours of content and CPEs

available

Cost: Individual $99 (Approx $1/CPE)

V-PDI for Chapters ($249)

CPE management tool

Note: V-PDI Mini-course content provides CPEs; but does not

provide “direct credit” toward meeting requirements of DoD

FMCP39