ASMC
&
D EFENSE F INANCIAL
M ANAGEMENT
Al Runnels, CDFM
Executive Director
ASMC
A GENDA

The FM Profession

Financial Management Environment

DoD Audit Readiness

ASMC – Your Professional Society

Membership

Certification Programs (ASMC and DoD)

ASMC National PDI and Virtual PDI
2
D EFENSE F INANCIAL
M ANAGEMENT P ROFESSION

Broad Body of Knowledge

Public Trust / Ethical Standards

Legal Liability

Stewardship of Taxpayer Dollars
4
EDFM/CDFM C ORE
C OMPETENCIES
1.
Government Resource
8.
Management Environment
Cost and Economic
Analysis
2.
Fiscal Law
9.
Internal Controls
3.
Finance
10.
4.
Accounting
Business Management
Process Improvement
11.
Auditing
5.
Defense Budget Process
6.
Manpower Management
7.
Personnel Management
5
D O D FM E NTERPRISE -W IDE C OMPETENCIES
( 1 – 1 7 A P P LY TO D O D F M C P )
1.
Fundamentals & Operations
of Finance
12.
Budget Formulation, Justification &
Presentation
2.
Fundamentals & Operations
of Military & Civilian Pay
13.
Financial Management Analysis
14.
Audit Concepts, Policies & Principles
3.
Payroll Concepts, Policies
& Principles
15.
Financial Management Systems
4.
Commercial Pay Concepts,
Policies & Principles
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
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
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
PB 16 Base Budget Supports the 2014 QDR Strategy
Sequester-Level Budgets Do Not
($B)
$610
$590
$570
$550
$530
$510
$490
$470
$450
FY11
FY12
FY 2013 PB
FY13
FY14
FY15
FY 2016 PB
FY16
FY17
FY18
FY19
Sequester-Level
FY20
10
The FY 2016 President’s Budget is a
Strategy-Driven, Resource-Informed Budget
33
$750
666
666
691
1
7
687
645
601
3
534
187
8
$500
468
479
316
345
6
159
115
166
3
614*
578 581
560
82
85
64
495
496
496
585
591
597
27
27
27
556
564
570
574
583
51
27
534
547
116
437
73
146
162
91
76
377
400
17
23
$250
287
328
365
411
431
479
513
528
528
530
$0
FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
* Reflects FY 2013 Enacted level excluding Sequestration
Numbers may not add due to rounding
DoD Topline, FY 2001 – FY 2020
(Current Dollars in Billions)
Base Budget
OCO
Other
11
The $27 million shown in FY 2017 through FY 2020 for OCO are placeholder amounts
Total Budget Trends
(Including supplemental and OCO funding)
FY10 – FY20:
-26%/-$198B
(FY 2016 Dollars in Billions)
Iraq/Afghan
800
751.8
Vietnam
Korea
700
663.0
Reagan Buildup
Vietnam
FY68-74: -29.9%
Korea
FY52-56: -42.4%
600
Buildup/Cold War
615.9 FY86-98: -32.8%
598.8
585.3
566.3
553.4
500
400
398.1
388.0
376.5
300
198.4
200
100
0
Fiscal Year
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
12
DoD Outlays as a Percentage of Federal Spending
FY 1950 - FY 2016
80%
70%
Korea
60%
57.0%
50%
Vietnam
43.4%
40%
Reagan (1986)
Build Up
30%
26.8%
20%
FY 2016 : 14.3%
10%
0%
1950
1960
1970
1980
1990
2000
2010
13
The Financial Audit Requirement and DoD Approach
H ISTORY OF A UDIT E FFORTS TO D ATE
The Big Picture…
…and Challenge
FY 2017 Statutory Direction
2017
Achieve Full
Agency Financial Statement
Audit Readiness
2014
FY 2014 Statutory Direction
Achieve Audit Readiness
of General Fund Statement of
Budgetary Resources (SBR)
2009
Pre-2009
Initial Priorities
Established
1994
Initial DoD Efforts
Begin
2005
FIAR Office
Established
Audit emphasis
largely within only the
comptroller organizations
Post-2009
Audit efforts involve
all functional areas
enterprise-wide
13
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
ASMC M EMBERS
(A S OF 1 J UNE 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%)
DON: 10,100 (19%)

USMC 615 (4%)

DFAS 1,233 (7%)
8,800 (16%)
15
ASMC M EMBERSHIP

Challenges

Re-established Membership

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
D O D FM C ERTIFICATION P ROGRAM
Approved in FY 2012 NDAA









Established framework to guide FM professional development
Supports Departments efforts in Audit Readiness & Decision
Support/Analysis
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
No “grandfathering”
18
CDFM B ENEFITS

Provides solid foundation in support of DoD and US
Coast Guard financial management operations

Impressive credential – initiative, drive, knowledge

Enhanced credibility and employee value

Greater confidence on the job

Portable & tangible indicator of experience and
knowledge

Continuing education requirement

EDFMT – Credit toward DoD FMCP

Level 1: 8 hours; Level 2: 32 hours
19
Enhanced Defense Financial Management Training Course
FM MyLearn Course Description: FMF2512 – Jul 12
Course Length: 40 hours
Aligned FM Competencies
Certification Proficiency
Level
Level
Aligned
Hours
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 Hours
20
A CTIVE CDFM S
(A S OF 1 J UNE 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%)
DON: 19%

USMC 252 (4%)

DFAS 361 (5%)
16%

Private Sector (6%)
N/A

USCG (1%)
N/A
CDFM I NITIAL
R EQUIREMENTS

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 – must have three years defense-related FM
experience

Degree (associate or higher) – must have two years of
defense-related FM experience

If no defense-related FM – must have four years of
federal government related FM experience
22
CDFM
C ERTIFICATION P ROCESS

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
23
CDFM C OST / M AINTENANCE

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
24
C ERTIFICATION P RICING
C OMPARISON
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
25
P REPARATION
FOR

Start with www.asmconline.org

Preparation options
CDFM
Enhanced Defense Financial Management
Training Course (EDFMTC)
Pre-PDI workshops
Refresher courses
Self-Study (not an option – a must)
26
C ERTIFICATION F OCUS

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)
27
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 2015
28
ASMC PDI 2016
(1-3 June 2016)

Host Chapter: Orlando FL - Central Lightning
Supporting Chapters: Tampa Bay, Greater
Jacksonville, and Space Coast

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 Include Access to Virtual PDI 2016
29
V IRTUAL 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
FMCP
30
Additional Slides re DoD FM Certification Program
https://fmonline.ousdc.osd.mil/
31
FM Certification Equation: Level 1
Course
Hours
FM
Competencies
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
Aligned Courses will be on FM
myLearn
6
+
DoD FM 101 Course**
Total Course Hours
* Proficiency Level 1
** Six of the twelve modules may be waived with the
exception of Audit Readiness
24
46
+
At Least 2 Yrs DoD FM Experience
FM Certification Level 1
40 CETs every two years
https://fmonline.ousdc.osd.mil/
32
DoD FM 101 Modules
Course: DoD FM 101 for Level 1 Modules*
Introduction to DoD
Accounting
Finance
Budget
Audit Readiness
Fiscal Law
Ethics
PPBE
Auditing
Analysis/Decision Support
Acquisition/Contracting
Cost Analysis
Course Hours
1
2
2
3
3
2
1
2
2
2
2
2
*Six of the twelve modules may be waived with the exception of Audit Readiness
https://fmonline.ousdc.osd.mil/
33
FM Certification Equation: Level 2
Course
Hours
FM
Competencies
Leadership
Competencies
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
Lead Teams/Projects Level
10
Audit Readiness + Fiscal Law Course + Ethics Courses
Total Course Hours
* Proficiency Level 3
** Proficiency Level 1
60 CETs every two years
Aligned Courses on FM myLearn
+
Aligned Courses will be on FM
myLearn
+
9
71
+
At Least 4 Yrs FM Experience Required
(2 years Must be DoD FM Experience)
FM Certification Level 2
+ [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
https://fmonline.ousdc.osd.mil/
34
FM Certification Equation: Level 3
Course
Hours
Financial Management Systems *
FM
Competencies
Leadership
Competencies
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
Lead People Level
12
Audit Readiness + Fiscal Law Course + Ethics Courses ***
Total Course Hours
* Proficiency Level 5
** Proficiency Level 3
*** Higher Proficiency Level Course
9
81
Aligned Courses on FM myLearn
+
+
+
+
Aligned Courses will be on FM
myLearn
At Least 8 Yrs FM Experience Required
(2 years Must be DoD FM Experience)
At Least One 3-month Developmental
Assignment
FM Certification Level 3
80 CETs every two years
+ [Strongly Recommended] Work towards Master’s Degree
+ [Strongly Recommended] Completion of one of the DoD-approved
Test-Based Certifications
https://fmonline.ousdc.osd.mil/
35
Vision
External Awareness
Strategic Thinking
Political Savvy
Lead the
Global Perspective
National Security Strategy Institution
Technology Management
Financial Management
Creativity and Innovation
Partnering
Lead
Entrepreneurship
National Defense Integration
National Security Environment
Human Capital Management
Leveraging Diversity
Conflict Management
Developing Others
DoD Corporate Perspective
National Security Foundation
Team Building
Accountability
Decisiveness
Influencing/Negotiating
DoD Mission and Culture
Flexibility
Resilience
Continual Learning
Service Motivation
Computer Literacy
Integrity/Honesty
Customer Service
Problem Solving
Technical Credibility
Organizations/
Programs
Lead People
Lead Teams/Projects
Interpersonal Skills
Oral Communication
Written Communication
Mission Orientation
Lead Self
36