Proposed DoD Financial Management Professional Certification Program
Presented to the ASMC Audio Conference
DoD Financial Workforce Management Office October 13, 2011
1
Agenda
• Goals and approach• Program specifics: Level 1, 2, 3
– Competencies – Alignment of competencies
• Major Next Steps• Way ahead• Challenges• Conclusion
2
• Establish a framework for FM development• Establish a mechanism to encourage key
training:– Auditable Financial Statements– Decision Support/Analysis
• Encourage career broadening and leadership• Make recommendations to USD(C) and
Service FMs, Defense Agency FMs
3
Key Goals for Senior Working Group
• Mandatory Program for DoD FM Civilians and Military– Awaiting Congressional authorization
• Applies by Level to each position – POSITIONS will be CODED as Level 1, Level 2 or Level 3
• Certain courses and experience required– Waivers only with approval of Service FM or Agency FM (limited delegation)
4
Overall Approach
• Based on FM and Leadership Competencies– 23 OSD Enterprise FM Competencies – Selected FM and Leadership Competencies
and Proficiency Levels at each Certification Level
• Details developed with experienced personnel• Continued coordination with USD (P&R)
5
Developing the Program Specifics
Foundation Built on DoD FM Competencies
Financial Management Systems
Decision Support
Financial Stewardship
Financial Management Analysis
Financial Concepts, Policies and Principles
Financial Reporting
Fundamentals & Operations of Finance
Financial Management Reporting Analysis
Advanced Financial Concepts
Accounting Analysis
Accounting Concepts, Policies and Principles
Fundamentals & Operations of Accounting
Budget Concepts, Policies and Principles
Budget Execution
Fundamentals & Operations of Budget
Budget Formulation, Justification & Presentation
Commercial Pay Concepts, Policies and Principles
Payroll Concepts, Policies and Principles
Fundamentals & Operations of Military & Civilian Pay
Audit Concepts, Policies and Principles
Audit Planning and Management
Decision Support - Audit Execution
Audit Reporting
Draft FM Competencies, as of 9/8/2011
6
Alignment of the 05XX Occupational Series with FM Competencies
23 FM Competencies Cover All 13 FM Occupational Series
7
FinancialStewardship
Fin Mgt Systems
Decision Support
Fin Mgt Analysis
Financial CP&P
Financial Reptng
Fund & Opns of Finance
FM & Reptng Analysis
Advanced Financial
ManagementAccounting
AnalysisAccounting
CP&P
Fund & Opns of Accntng
Budget CP&P
Budget Execution
Fund & Opns of Budget
Budget Form, Justn & Pres
Comm Pay CP&P
Payroll CP&P
Fund & Opns of
Mil & Civ Pay
Audit CP&PAudit
Planning & Mgt
Decision Support --
Audit Execution
Audit Reporting
Competency
Financial Stewardship
Fin Mgt Systems Decision Support Fin Mgt Analysis Financial CP&P Financial Reptng Fund & Opns of
FinanceFM & Reptng
AnalysisAdvanced Financial
Management
Occupation Series
501 Financial Administration and Program X X X X X X
503 Financial Clerical and Assistance X X X
530 Cash processing X X X
505 Financial Manager X X X X
599 Financial Student Trainee X X X X X X
Competency
Financial Stewardship
Fin Mgt Systems Decision Support Accounting
Analysis Accounting CP&P Financial Reptng Fund & Opns of Accntng
Occupation Series
510 Accounting X X X X X X
525 Accounting Technician X X X X
Competency
Financial Stewardship
Fin Mgt Systems Decision Support Fin Mgt Analysis Budget CP&P Budget Execution Fund & Opns of
BudgetBudget Form, Justn
& Pres
Occupation Series
560 Budget Analysis X X X X X X X
561 Budget Clerical and Assistance X X X X
CompetencyFinancial
StewardshipFin Mgt Systems Accounting CP&P Comm Pay CP&P
Occupation Series
540 Voucher Examining X X X X
Competency
Financial Stewardship
Fin Mgt Systems Payroll CP&P Fund & Opns of
Mil & Civ Pay
Occupation Series
0544-0545 Civilian and Military Pay X X X X
Competency
Financial Stewardship Audit CP&P Audit Planning &
MgtDecision Support --Audit Execution Audit Reporting
Occupation Series0511 Auditing X X X X X
C06-10-108 v1.5B14-10-107
FM Certification Equation: Level 1
8
FM Competencies
Financial Management Systems*
Decision Support*
Competency in Fundamentals and Operations of [X] [Accounting, Budget, Finance, etc]*
Courses, TBD
Courses, TBD
Courses, TBD
Courses, TBD
Courses, TBD
Hours
Leadership Competencies
Lead Self Courses, TBD
Courses, TBDHours
FM 101 Course Hours
At Least 2 Yrs DoDFM Experience
Time in Job
FM Certification Level 1
+
+
+
* Proficiency Level 1
40 CEU/CPE every two years
C06-10-108 v1.5B14-10-107
FM Certification Equation: Level 2
9
FM Competencies
Financial Management Systems**
Decision Support**
Concepts, Policies and Principles of [X]**
Budget Formulation, Justification and Presentation**
Accounting Analysis OR Financial Mgt Analysis**
Fundamentals and Operations of [Y] [Accounting, Budget, Finance, etc]*
Courses, TBD
Courses, TBD
Courses, TBD
Courses, TBD
Courses, TBD
Hours
Leadership Competencies
Lead TeamsCourses, TBD
Courses, TBDHours
Audit Readiness Course
Fiscal Law Course Hours
At Least 4 Yrs DoDFM Experience
Time in Job
FM Certification Level 2
+
+
+
*Proficiency Level 1 **Proficiency Level 3
+ [Recommended] Work towards Bachelor’s Degree+ [Recommended] Completion of one of the DoD-approved Test-Based Certification Programs
+ At Least One 3-month Developmental Assignment (Recommended)
Time in Job60 CEU/CPE every two years
Test-Based Certifications
Recommended by the DoD FM Certification Senior Working Group1 Accredited Business Accountant (ABA)
2 Certified Accounts Payable Professional (CAPP)
3 Certified Payroll Professional (CPP)
4 Accredited in Business Valuation (ABV)
5 Certified Business Manager (CBM)
6 Certified Forensic Accountant (Cr.FA)
7 Certified Quality Auditor
8 Forensic Certified Public Accountant
9 Certified in Financial Forensics (CFF)
10 Certified Cost Estimator/Analyst (CCE/A)
11 Certified Fraud Examiner
12 Certified Government Audit Professional (CGAP)
13 Certified Government Financial Manager (CGFM)
14 Certified Information Systems Auditor (CISA)
15 Certified Internal Auditor (CIA)
16 Certified Management Accountant (CMA)
17 Certified Public Accountant (CPA)
18 Certified Treasury Professional (CTP)
19 Certified Defense Financial Manager (CDFM)
20 Certified Cost Consultant (CCC) 10
C06-10-108 v1.5B14-10-107
FM Certification Equation: Level 3
11
FM Competencies
Financial Management Systems***
Decision Support***
Budget Formulation, Justification and Presentation***
Accounting Analysis AND Financial Mgt Analysis***
Advanced Financial Management***
Concepts, Policies and Principles of [Y]**
Courses, TBD
Courses, TBD
Courses, TBD
Courses, TBD
Courses, TBD
Hours
Leadership Competencies
Lead peopleCourses, TBD
Courses, TBDHours
Audit Readiness Course*
Fiscal Law Course* Hours
At Least 6 Yrs DoDFM Experience Time in Job
FM Certification Level 3
+
+
+
**Proficiency Level 3 ***Proficiency Level 5 *Higher Proficiency Level Course
+ [Strongly Recommended] Work towards Master’s Degree+ [Strongly Recommended] Completion of one of the DoD-approved Test-Based Certification Programs
+Time in Job
At Least One Developmental Assignment
80 CEU/CPE every two years
Amount of Course/CEU Requirements
• Level 1: About 40-80 course hours in FM and Leadership related areas + 40 CEU/CPE every two years
• Level 2: About 50-100 course hours in FM and Leadership related areas + 60 CEU/CPE every two years
• Level 3: About 50-100 course hours in FM and Leadership related areas + 80 CEU every two years
• For Reference: DAWIA course requirements: – Level 1: 105 hrs Level 2: 198 hrs Level 3: 71 hrs– 80 CEU every two years for all Levels
12
Major Next Steps
• Scope (Estimated number of FM Civilian positions)– Level 1: ≈ 4,500– Level 2: ≈ 33,000– Level 3: ≈ 10,000Note: Estimated 10,000 FM Military positions not included
• Major actions which must be accomplished in order to launch the Program:
– Positions coded (Level 1, 2 or 3)– Learning Management System (LMS) in place– Coordinated with Defense Civilian Personnel Data System
(DCPDS) and HR community
13
• Option 1: All 3 Levels at once; all Components/Organizations– Option 1A: All 3 Levels at once; Selected Organizations
• Option 2: Level 1 only; all Components/Organizations– Option 2A: Level 1 only; Selected Organizations
• Option 3: Level 2 only; all Components/Organizations– Option 3A: Level 2 only; Selected Organizations
• Option 4: Level 3 only; all Components/Organizations– Option 4A: Level 3 only; Selected Organizations
Options for Phasing
14
All favor some type of pilot program and fixed periods for implementation;Recommend a goal for full implementation
15
Communications Approach
• Significant leadership involvement
• Possible mechanisms– Video (one for each MILDEP with USDC and FM;
one for DFAS/DCAA with USDC and Director;
one for Agencies)
– Speeches
– Comptroller Magazine
– Audio Conferences to answer questions
– FM Online
– Professional organizations
16
Way Ahead – Near Term
Task Projected Date
Align Courses to Competencies August – October 2011
Final Leadership Approval November 2011
Develop DODI and DODD 2011 (for coordination)March 2012 (issue)
NDAA Language Ongoing
Communications and Marketing Calendar 2012
Complete FM 101 Course July 2012
Code Positions ≈ January – June 2012
Establish Learning Management System (LMS) ≈ January – June 2012
Implementation of Major Pilots By October 2012
17
Way Ahead – Longer Term
Task Projected DateBegin Phased Implementation January 2013
Full Implementation March 2014
18
Challenges
• “Marketing” to FM leaders and career fields• Funding Strategy• Alignment of Courses to Competencies• Learning Management System (LMS) – required to track Certification requirements
– Several Components have an LMS– Need to leverage these capabilities in implementing a DoD system
– Costs need to include cost for personnel at the Component
level to administer the LMS
• Coding of Position Descriptions
19
Conclusion
• The Proposed DoD FM Certification Program:– Focuses on DoD Audit Readiness and on Analytics
– Provides a certification framework for the 58,000 people doing DoD financial management
– Level 1, 2, 3 tied to experience in financial management
– Gives the FM workforce a recognized body of knowledge
– Uses existing courses (mapped to competencies) where possible
– Develops expertise standards using DoD-wide competencies
– Encourages college degrees and test-based certifications
Making a Good FM Workforce Better
Senior Working Group Composition
Members
Name Component
Jessielyn Cameron Army
Terry Placek Army
Bill Rone Air Force
Frank Donnelly Air Force
Jami Murray Department of Navy (DON)
Lorraine Williams Department of Navy (DON)
Steve Turley Defense Logistics Agency (DLA)
Dr. Pamela ClayDefense Information Systems Agency (DISA)
Robin GregoryDefense Information Systems Agency (DISA) (alternate)
Pat BeckerleDefense Finance and Accounting Service (DFAS)
Jackson MullerDefense Contract Audit Agency (DCAA)
Adjunct Members
Name Component
John Ruoff Office of General Counsel (OGC)
Dr. John DillCivilian Personnel Management Service (CPMS)
David RudeCivilian Personnel Management Service (CPMS) (Alternate)
Sharon Jackson OSD (AT&L)
Dr CJ LaCivitaDr Francois Melese
Defense Resource Management Institute (DRMI)
Lashunda Lewis Defense Finance Management & Comptroller School (DFM&CS)
David Berg Army Defense Comptrollership Program, Syracuse
COL Clay Army Financial Management School, Ft. Jackson
Garry Shafovaloff Defense Acquisition University
Adrienne Ferguson CFO Academy
Senior Working Group Chair: Sandra Gregory, OUSD(C) FWM
22
Test-Based Certifications
Recommended by the DoD FM Certification Senior Working Group1 Accredited Business Accountant (ABA)
2 Certified Accounts Payable Professional (CAPP)
3 Certified Payroll Professional (CPP)
4 Accredited in Business Valuation (ABV)
5 Certified Business Manager (CBM)
6 Certified Forensic Accountant (Cr.FA)
7 Certified Quality Auditor
8 Forensic Certified Public Accountant
9 Certified in Financial Forensics (CFF)
10 Certified Cost Estimator/Analyst (CCE/A)
11 Certified Fraud Examiner
12 Certified Government Audit Professional (CGAP)
13 Certified Government Financial Manager (CGFM)
14 Certified Information Systems Auditor (CISA)
15 Certified Internal Auditor (CIA)
16 Certified Management Accountant (CMA)
17 Certified Public Accountant (CPA)
18 Certified Treasury Professional (CTP)
19 Certified Defense Financial Manager (CDFM)
20 Certified Cost Consultant (CCC) 23
Level 1 Level 2 Level 3
FMCompetencies
• Financial Management Systems
• Decision Support (Cost Analysis)
• Fundamentals and Operations of: (to include the importance of Costing)
Select One Track
• Financial Management Systems• Decision Support (Cost Analysis)• Budget Formulation, Justification and Presentation• Accounting Analysis OR Financial Management Analysis
• Financial Management Systems• Decision Support (Cost Analysis)• Budget Formulation, Justification and Presentation• Accounting Analysis AND
Financial Management Analysis • Advanced Financial Management
FM Courses • FM 101 (Pre-requisite): Introduction to DoD Finance Accounting Budget Audit Analysis/Decision Support PPBE Fiscal Law Cost Analysis Acquisition (Contracting) Ethics Integration of all of the above relevant to achieving Auditability
• Other Aligned courses – TBD
Other Aligned Courses, such as: Audit Readiness - FIAR Fiscal Law Defense Fin Mgmt Course – DFM&CS Defense Decision Support Course – DFM&CS Intro to Earned Value Management - DAU Acquisition Reporting Concepts & Policy Requirements - DAU DON Practical Comptroller Course - DON Planning, Programming & Budget Execution - Army GAGAS – DCAA
FM Staff Officer Course – AF
Other Aligned Courses, such as: Audit Readiness - FIAR Fiscal Law Senior Resource Managers Course – Army Budgeting & Congressional Relations for Strategic Leaders – CFO Academy Multi Criteria Decision Making - -DRMI
Senior Auditor School – Army Organizational Effectiveness for Cost Managers - DON
Foundation Built on DoD FM Competencies
DRAFT CONCEPTUAL FRAMEWORK (1 of 3)
Accounting
Finance
Budget
Mil/Civ Pay
• Concepts, Policies and Principles of X
Concepts, Policies and Principles of Y• Fundamentals and Operations of
Analysis/Decision Support
Cost Analysis
Auditability
Analysis
Analysis
Audit Readiness
GAGAS
Analysis
Analysis
Multi Criteria Decision Making
Senior Auditor School
Y
24
Audit Readiness
Level 1 Level 2 Level 3FM Experience 2 Years Experience 4 Years Experience 6 Years Experience
Other Functional Experience
None Explore the opportunity for one Developmental Assignment (at least 6 months) within the Component within an alternate FM track or FM area
Required: At least one Developmental Assignment (at least 6 months); preferred outside of FM
Education Desired: Work towards completion of Bachelor’s Degree
Recommended: Work towards completion of Bachelor’s Degree
Strongly Recommended: Work towards completion of Master’s Degree
CPE/CEU 24 Hours every two years 48 Hours every two years 80 Hours every two years
Test-Based Certifications
Not Applicable Recommended: Completion of one of the DoD-approved Certification Programs
Strongly Recommended: Completion of one of the DoD-approved Certification Programs
Foundation Built on DoD FM Competencies
DRAFT CONCEPTUAL FRAMEWORK (2 of 3)
25
Level 1 Level 2 Level 3LeadershipCompetencies
Lead Self Flexibility Resilience Continual Learning Service Motivation Computer Literacy Integrity/Honesty Customer Service Problem Solving Technical Credibility Interpersonal Skills Oral Communication Written Communication Mission Orientation
Lead Teams Team Building Accountability Decisiveness Influencing/Negotiating DoD Mission and Culture
Lead People Human Capital Management Leveraging Diversity Conflict Management Developing Others DoD Corporate Perspective National Security Perspective
Leadership Courses
• Communication Skills-Web Based• Listening and Feedback Skills-Web Based• DoD Acculturation Course• Civilian Education System (CES) – basic
• Decision Making for Government Leaders•CES – intermediate•Leading the 21st Century Workforce•Individual Diversity-Web Based•Supervisor Development Course •Organizational Culture for Strategic Leaders•Group Development-Web Based
• Leader as Coach• National Security Studies• Managers Development Course• CES - advanced
DRAFT CONCEPTUAL FRAMEWORK (3 of 3)
Foundation Built on DoD FM Competencies 26
“Broadening” Conceptual View
27
Fundamentals and Operations of Concepts, Policies and Principles of
Fundamentals and Opns of Level 1
Level 2
Level 3
PRIMARYSPECIALTY
PRIMARYSPECIALTY
SECONDARYSPECIALTY
Concepts, Policies and Principles of
SECONDARYSPECIALTY
Advanced Financial Management Competency
Level 2
• Financial Management Systems• Financial Stewardship• Decision Support (Cost Analysis)• Budget Formulation, Justification and Presentation• Accounting Analysis OR Financial Management Analysis • Concepts, Policies and Principles of
• Fundamentals and Opns of Different Specialty from CP&P
28
PRIMARYSPECIALTY
SECONDARYSPECIALTY
Accounting
Finance
Budget
Mil/Civ Pay
Level 3
• Financial Management Systems
• Financial Stewardship
• Decision Support (Cost Analysis)
• Budget Formulation, Justification and Presentation
• Accounting Analysis AND Financial Management Analysis
• Advanced Financial Management
• Concepts, Policies and Principles of
29
SECONDARYSPECIALTY
30
DoD FM (5XX) Workforce SizeSustain Career Series Workforce Size
31.5 31.0 30.4 30.9 30.8 30.9 31.5
35.337.1 37.1
11.5 11 10.5 10.6 10.7 10.2 9.8 10.4 11.1 10.8
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 3QFY11
# of F
M Wo
rk Se
ries (
thousa
nds)
Non-DFAS DFAS
Source: www.fedscope.gov and Components’ Input to FY 10 Environmental Forecast, September 2011
Analysis of Trends:
• No growth in 1st 3 Quarters of FY11.
• Workforce is expected to remain stable during the remainder of the FY, unless un-forecasted migrations from other non-FM Occupation Series occur. • The FM Workforce is augmented with approximately 200 Operations Research Analysts (1515s) that perform cost analysis based functions throughout the Department (not reflected on charts)
FY 2011 Goal:
No further declines from FY 2008 baseline
Result/Score:
No declines
Achieving a Stable FM Workforce Size
G
Series DFASNon-DFAS
Description Series DFASNon-DFAS
Description
501 2,200 13,085Financial Administration
and Program540 7 162 Voucher Examining
503 204 2,591Financial Clerical and
Assistance544 296 174 Civilian Pay
505 3 636 Financial Manager 545 1,380 697 Military Pay
510 2,916 3,098 Accounting 560 16 7,120 Budget Analysis
511 82 7,005 Auditing 561 0 821Budget Clerical and
Assistance
525 3,647 1,056 Accounting Technician 599 16 379 Student Trainee
530 16 290 Cash Processing 5XX 10,783 37,114 TOTAL
31
DOD 5XX Workforce StaffingAnalysis of Trends:
• Through 2QFY11, Gains and Losses are balanced
• On-going challenges include: - Anticipating the rate of losses when the economy improves - Anticipating the effect of budget pressure on DoD - Understanding gaps and vacancies
FY11 Goal:
Expect staffing Gains to keep pace with any staffing Losses.
Result/Score:
Gains are keeping pace with Losses
Staff the FM Workforce
4.1
4.7 4.7
5.55.2 5.3
1.9
4.2
5.05.2
5.4
3.4 3.5
1.9
0
1
2
3
4
5
6
FY05 FY06 FY07 FY08 FY09 FY10 2QFY11
Nu
mb
er
of
Em
plo
yee
s (#
/Tho
usan
ds)
Gains Losses
Current Staffing Trends are Keeping Pace with Vacancies
0.57
0.34
0.62
0.39
0.59
0.28
0.35
0.64
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
Army Navy Air Force Defense Agencies
Nu
mb
er
of
Em
plo
yee
s (#
/Th
ou
san
ds)
2QFY11 Gains 2QFY11 Losses
G
Source of information – www.fedscope.gov, accessed September , 2011
32
5%
33%
11%10%
40%
15%15%
50%
15%
0%
20%
40%
FM Certif ications Bachelor Degrees Advanced Degrees
% o
f F
M W
ork
forc
e
Estimates Only
FY06 FY09 FY10
% of FM Civilian Workforce with ProfessionalCertifications or Degrees
Analysis of Trends:
• Continued emphasis on FM certifications is achieving results
• Occupation Series with positive education requirements (0510 (Accountant) and 0511 (Auditor)) have 80-95% Bachelor Degree personnel and pull up all of 05XX
• Percentage of Advanced Degree holders is stable
FY11 Goal:
A steady increase in the number of degreed and credentialed FM employees (baseline FY06)
Result/Status:
• Increase from FY09 to FY10 in Certifications
Increase FM Workforce Credentials
Sources of Estimates:
• Certifications: Components Input and the American Society of Military Comptrollers, April 2011
• Education: DMDC Report, May 2011
FM Workforce Credentials Generally Increasing
G
*Source of information – www.fedscope.gov, accessed September, 2011
DOD FM Workforce(By Mission Critical Series / Length of Service)
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
0-5 5-9 `10-14 15-19 20-24 25-29 30-34 35+
# of
Per
son
nel
501
510
511
560
33
Analysis of Trends:
• Recruitment initiatives are being pursued to maintain the strength of the FM Mission Critical Occupations
• The FM community is exploring options to maintain the workforce and to eliminate the sharp decline in staffing within the initial 10 years of employment
FY11 Goal:
To limit decline in FM Workforce within initial 10 years of employment and not to decrease from 2nd Qtr FY10 levels
Result/Status:
No Decline; increase of 2,154 with 0-9 Years Service (from 2d Qtr FY10)
Focus on Our FM Workforce
MCO Workforce as of 2d QTR FY11
Length of Service (Years)G