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

20

Questions?

21

Additional Charts

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