What’s on the Horizon?
The Proposed
DoD Financial Management
Certification Program
Office of the Under Secretary of
Defense (Comptroller)
October 2011
Agenda
•
•
•
•
•
Goals and approach
Program specifics
Major Next Steps
Way ahead
Questions
2
Key Goals for Senior Working Group
• 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
Legislative Update
• Proposed HASC Language
– Section 1061
• Proposed SASC Language
– Section 1003
• Will be a Conference Committee item for FY12
National Defense Authorization Act (NDAA)
4
Overall Approach
• Mandatory Program for DoD FM Civilians and Military
– Awaiting Congressional authorization
• Applies by Level to each position
– Level 1
– Level 2
– Level 3
• Certain courses and experience required
– Waivers only with approval of Service FM or
Agency FM (limited delegation)
5
Developing the Program Specifics
• 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
– Army, DON, Air Force, DFAS, DCAA, DeCA, DLA,
DISA, DAU, DoDIG, MDA and others
• Continued coordination with USD (P&R)
6
FM Certification Equation: Level 1
Courses, TBD
Financial Management Systems*
FM
Competencies
Courses, TBD
Decision Support*
Courses, TBD
Fundamentals and Operations of
[X] [Accounting, Budget, Finance,
etc]*
Hours
Courses, TBD
Courses, TBD
+
Leadership
Competencies
Courses, TBD
Lead Self
Courses, TBD
Hours
+
FM 101 Course
Hours
+
40 CEU/CPE every two years
At Least 2 Yrs DoD
FM Experience
Time in Job
FM Certification Level 1
* Proficiency Level 1
B14-10-107
C06-10-108 v1.5
7
FM Certification Equation: Level 2
Financial Management Systems**
Courses, TBD
Decision Support**
Courses, TBD
Concepts, Policies and Principles of [X]**
FM
Competencies
Courses, TBD
Fundamentals and Operations of [Y]
[Accounting, Budget, Finance, etc]*
Courses, TBD
Budget Formulation, Presentation and
Justification **
Accounting Analysis OR Financial Mgt
Analysis**
Leadership
Competencies
Courses, TBD
+
Courses, TBD
Lead Teams
+
60 CEU/CPE every two years
*Proficiency Level 1
**Proficiency Level 3
B14-10-107
Hours
+
+
Courses, TBD
Hours
Audit Readiness Course
Fiscal Law Course
Hours
At Least 4 Yrs DoD
FM Experience
Time in Job
At Least One 3-month
Developmental Assignment
(Recommended)
Time in Job
FM Certification Level 2
+ [Recommended] Work towards Bachelor’s Degree
+ [Recommended] Completion of one of the DoD-approved
Test-Based Certification Programs
C06-10-108 v1.5
8
FM Certification Equation: Level 3
Financial Management Systems***
Courses, TBD
Decision Support***
Courses, TBD
Budget Formulation, Justification and
Presentation***
FM
Competencies
Courses, TBD
Accounting Analysis AND Financial Mgt
Analysis***
Hours
Courses, TBD
Advanced Financial Management***
Courses, TBD
Concepts, Policies and Principles of [Y]**
Leadership
Competencies
+
Lead people
Courses, TBD
Hours
Courses, TBD
+
Audit Readiness Course*
80 CEU/CPE every two years
**Proficiency Level 3 ***Proficiency Level 5
*Higher Proficiency Level Course
B14-10-107
+
+
Fiscal Law Course*
Hours
At Least 6 Yrs DoD
FM Experience
Time in Job
At Least One
Developmental Assignment
Time in Job
FM Certification Level 3
+ [Strongly Recommended] Work towards Master’s Degree
+ [Strongly Recommended] Completion of one of the DoD-approved
C06-10-108 v1.5
Test-Based Certification Programs
9
Amount of Course CEU/CPE 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/CPE 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
10
Major Next Steps
• Scope (Estimated number of FM Civilian positions)
– Level 1: ≈ 4,500
– Level 2: ≈ 33,000
– Level 3: ≈ 10,000
Note: 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
11
Options for Phasing
• 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
All favor some type of pilot program and fixed periods for implementation;
Recommend a goal for full implementation
12
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
13
Way Ahead – Near Term
Task
Projected Date
Align Courses to Competencies
August – October 2011
Final Leadership Approval
Develop DODI and DODD
November 2011
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
We are Moving towards a DoD FM Certification Program in FY12
14
Way Ahead – Longer Term
Task
Projected Date
Begin Phased Implementation
January 2013
Full Implementation
March 2014
15
Questions?
16
Championing a Strong
DoD Financial Management Workforce
…because People are the most
important part of our financial
operations!
17
Additional Charts
18
Senior Working Group Composition
Senior Working Group Chair: Sandra Gregory, OUSD(C) FWM
Members
Name
Adjunct Members
Component
Jessielyn Cameron
Army
Terry Placek
Army
Name
John Ruoff
Dr. John Dill
Component
Office of General Counsel (OGC)
Civilian Personnel Management
Service (CPMS)
Civilian Personnel Management
Service (CPMS) (Alternate)
Bill Rone
Air Force
Frank Donnelly
Air Force
David Rude
Jami Murray
Department of Navy (DON)
Sharon Jackson
OSD (AT&L)
Lorraine Williams
Department of Navy (DON)
Steve Turley
Defense Logistics Agency (DLA)
Dr CJ LaCivita
Dr Francois Melese
Defense Resource Management
Institute (DRMI)
Defense Finance Management &
Comptroller School (DFM&CS)
Army Defense Comptrollership
Program, Syracuse
Army Financial Management
School, Ft. Jackson
Dr. Pamela Clay
Robin Gregory
Pat Beckerle
Jackson Muller
Defense Information Systems
Agency (DISA)
Defense Information Systems
Agency (DISA) (alternate)
Defense Finance and Accounting
Service (DFAS)
Defense Contract Audit Agency
(DCAA)
Lashunda Lewis
David Berg
COL Clay
Garry Shafovaloff
Defense Acquisition University
Adrienne Ferguson
CFO Academy
19
Test-Based Certifications
Recommended by the DoD FM Certification Senior Working Group
1
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)
20
DRAFT CONCEPTUAL FRAMEWORK (1 of 3)
Level 1
FM
Competencies
• Financial Management Systems
• Decision Support (Cost Analysis)
• Fundamentals and Operations of:
(to include the
importance of
Costing)
Accounting
Finance
Level 2
Level 3
• Financial Management Systems
• Decision Support (Cost Analysis)
• Budget Formulation, Justification and
Presentation
Analysis OR Financial
• Accounting Analysis
Management Analysis
Analysis
• Concepts, Policies and Principles of
• Financial Management Systems
• Decision Support (Cost Analysis)
• Budget Formulation, Justification and
Presentation
Analysis
• Accounting Analysis
AND
Financial Management Analysis
X
• Advanced Financial Management
Budget
Select One
Track
FM Courses
Mil/Civ Pay
• FM 101 (Pre-requisite):
Introduction to DoD
Finance
Accounting
Budget
Audit
Analysis/Decision Suppo
Support
Analysis/Decision
rt
PPBE
Fiscal Law
Cost Analysis
Acquisition (Contracting)
Ethics
Integration of all of the above
Auditability
relevant to achieving Auditability
• Fundamentals and Operations of
Y
Other Aligned Courses, such as:
 Audit
AuditReadiness
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
GAGAS - Army
 GAGAS
– DCAA
Concepts, Policies and Principles of
Other Aligned Courses, such as:
 Audit Readiness
- FIAR
 Fiscal Law
Senior Resource Managers Course – Army
 Budgeting & Congressional Relations for
Strategic
Leaders
– CFOMaking
Academy
Multi
Criteria
Decision
 Multi Criteria Decision Making - -DRMI
Senior Auditor School
 Senior Auditor School – Army
 Organizational Effectiveness for Cost
Managers - DON
 FM Staff Officer Course – AF
• Other Aligned courses – TBD
Foundation Built on DoD FM Competencies
Y
21
DRAFT CONCEPTUAL FRAMEWORK (2 of 3)
Level 1
Level 2
Level 3
FM 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 DoDapproved Certification Programs
Foundation Built on DoD FM Competencies
22
DRAFT CONCEPTUAL FRAMEWORK (3 of 3)
Level 1
Leadership
Competencies
Lead Self
Leadership
Courses
• Communication Skills-Web Based
• Listening and Feedback Skills-Web
Based
• DoD Acculturation Course
• Civilian Education System (CES) – basic
Level 2
Lead Teams
Flexibility
Resilience
Continual Learning
Service Motivation
Computer Literacy
Integrity/Honesty
Customer Service
Problem Solving
Technical Credibility
Interpersonal Skills
Oral Communication
Written Communication
Mission Orientation
Team Building
Accountability
Decisiveness
Influencing/Negotiating
DoD Mission and Culture
• 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
Foundation Built on DoD FM Competencies
Level 3
Lead People
Human Capital Management
Leveraging Diversity
Conflict Management
Developing Others
DoD Corporate Perspective
National Security Perspective
• Leader as Coach
• National Security Studies
• Managers Development Course
• CES - advanced
23
Draft FM Competencies, as of 9/8/2011
Financial Management Systems
Fundamentals & Operations of Accounting
Decision Support
Budget Concepts, Policies and Principles
Financial Stewardship
Financial Management Analysis
Financial Concepts, Policies and Principles
Budget Execution
Fundamentals & Operations of Budget
Budget Formulation, Justification &
Presentation
Financial Reporting
Commercial Pay Concepts, Policies and
Principles
Fundamentals & Operations of Finance
Payroll Concepts, Policies and Principles
Financial Management Reporting Analysis
Fundamentals & Operations of Military &
Civilian Pay
Advanced Financial Concepts
Audit Concepts, Policies and Principles
Accounting Analysis
Audit Planning and Management
Accounting Concepts, Policies and
Principles
Decision Support - Audit Execution
Audit Reporting
24
Alignment of the 05XX Occupational Series with FM Competencies
Competency
Financial
Stewardship
Fin Mgt Systems
Decision Support
Fin Mgt Analysis
Financial CP&P
Financial Reptng
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Financial
Stewardship
Fin Mgt Systems
Decision Support
X
X
X
X
X
X
X
X
X
Financial
Stewardship
Fin Mgt Systems
Decision Support
Fin Mgt Analysis
Budget CP&P
Budget Execution
X
X
X
X
X
X
X
X
X
X
Financial
Stewardship
Fin Mgt Systems
Decision Support
Accounting CP&P
Comm Pay CP&P
Fund & Opns of
Accntng
X
X
X
X
X
X
Financial
Stewardship
Fin Mgt Systems
Decision Support
Payroll CP&P
Fund & Opns of Mil
& Civ Pay
X
X
X
X
X
Financial
Stewardship
Audit CP&P
Audit Planning & Mgt
Decision Support -Audit Execution
Audit Reporting
X
X
X
X
X
Fund & Opns of
Finance
FM & Reptng Analysis
Advanced Financial
Management
X
X
Occupation Series
501 Financial Administration and Program
503 Financial Clerical and Assistance
530 Cash processing
505 Financial Manager
599 Financial Student Trainee
Competency
Occupation Series
510 Accounting
525 Accounting Technician
Competency
Occupation Series
560 Budget Analysis
561 Budget Clerical and Assistance
Competency
Occupation Series
540 Voucher Examining
Competency
Occupation Series
0544-0545 Civilian and Military Pay
X
X
X
X
X
X
Accounting CP&P Accounting Analysis
Financial Reptng
Fund & Opns of
Accntng
X
X
Fund & Opns of
Budget
Budget Form, Justn &
Pres
X
X
Competency
Occupation Series
0511 Auditing
23 FM Competencies Cover All 13 FM Occupational Series
Financial Fin Mgt
Stewardship Systems
Decision
Support
Budget
Budget
CP&P Execution
Fin Mgt
Analysis
Fund &
Opns of
Budget
Fund &
Opns of
Finance
FM &
Reptng
Analysis
Budget Form, Comm Pay Payroll
Justn & Pres
CP&P
CP&P
Fund &
Opns of
Mil & Civ
Pay
Financial
CP&P
Financial
Reptng
Advanced
Financial
Management
Audit CP&P
Accounting Accounting
Analysis
CP&P
Audit
Planning &
Mgt
Decision
Support -Audit
Execution
Fund &
Opns of
Accntng
Audit
Reporting
As of 17 Oct 2011
25
Champion a Strong and Capable Financial
Management Workforce
•
•
•
•
•
Sustain Career Series Workforce Size
Staff the FM Workforce
Control FM Workforce Attrition
Increase FM Workforce Credentials
DoD FM Workforce
September 2011
26
Sustain Career Series Workforce Size
DoD FM (5XX) Workforce Size
# of FM Work Series (thousands)
40.0
37.1
35.3
35.0
31.5
31.0
30.9
30.4
• No growth in 1st 3 Quarters of FY11.
37.1
31.5
30.9
30.8
Analysis of Trends:
• Workforce is expected to remain stable during
the remainder of the FY, unless un-forecasted
migrations from other non-FM Occupation Series
occur.
30.0
25.0
20.0
15.0
11.5
11
10.5
10.7
10.6
10.2
9.8
10.0
10.4
11.1
10.8
5.0
0.0
FY02
FY03
FY04
FY05
FY06
Non-DFAS
Series DFAS
501
503
NonDFAS
FY07
Description
Financial Administration
and Program
Financial Clerical and
2,591
Assistance
2,200 13,085
204
FY08
FY09
FY10
3QFY11
DFAS
• 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:
Series DFAS
No further declines from FY 2008 baseline
NonDFAS
Description
Result/Score:
540
7
162
Voucher Examining
544
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
821
Budget 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
No declines
TOTAL
Source: www.fedscope.gov and Components’ Input to FY 10 Environmental Forecast, September 2011
27
Achieving a Stable FM Workforce Size
G
Staff the FM Workforce
DOD 5XX Workforce Staffing
Number of Employees (#/Thousands)
6
5.0
4.7
5
5.55.4
5.2
Analysis of Trends:
5.3
5.2
• Through 2QFY11, Gains and Losses are balanced
4.7
4.14.2
4
• 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
3.5
3.4
3
1.91.9
2
1
0
FY05
FY06
FY07
FY08
Gains
FY09
FY10
2QFY11
FY11 Goal:
Losses
0.64
Number of Employees (#/Thousands)
0.70
0.60
0.57
0.62
0.59
Expect staffing Gains to keep pace with any
staffing Losses.
0.50
0.39
0.40
0.35
0.34
Result/Score:
0.28
0.30
Gains are keeping pace with Losses
0.20
0.10
0.00
Army
Navy
2QFY11 Gains
Air Force
Defense Agencies
2QFY11 Losses
Source of information – www.fedscope.gov, accessed September , 2011
28
Current Staffing Trends are Keeping Pace with Vacancies
G
Control FM Workforce Attrition
Attrition to Total FM Workforce
Analysis of Trends:
6%
% Reasons for Attrition to Total
5%
5%
4%
4%
3%
3%
3%
3%
2%
2%
2%
2%
2%
2%
1.5%
1%
1%
1.1% 1%
.9%
1%
.6%
• Overall attrition rates are well below the
government average of 8%
• The aging workforce continues to have a
significant impact on attrition rates;
however, the poor economy continues to affect
retirements
• All attrition categories are generally consistent
with FY10
0%
Retirement
2005
Resignation
2006
2007
2008
Agency Transfer Out
2009
2010
Other Separation
2Q11
For Resignations and Agency Transfers Out, not
to exceed Government average turnover rate
(current rate is 8%)*
2%
2QFY11 % Reasons for Attrition to Total
FY11 Goal:
1.7%
1.6%
1.5%
1.3%
1.3%
1.1%
0.9%
1%
Result/Score:
1.1%
1.0%
0.8%
.3%
0.5%
2.0% Turnover Rate through 2nd Quarter;
projected to be 4.0% for FY11.
G
.2%
0%
Retirement
Resignation
Army
Navy
Agency Transfer Out
Air Force
Other Separation
DOD
Source of information
•Attrition data reflected in chart – www.fedscope.gov, accessed September, 2011 Other Separations include: Reductions in Force, Deaths, and Termination or Removals
29
FM Retention is Stable
Increase FM Workforce Credentials
% of FM Civilian Workforce with Professional
Certifications or Degrees
50%
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
Estimates Only
40%
40%
% of FM Workforce
33%
• Percentage of Advanced Degree holders is
stable
20%
15%
15% 15%
11%
10%
5%
0%
FM Certifications
Bachelor Degrees
FY06
FY09
Advanced Degrees
FY10
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
Sources of Estimates:
• Certifications: Components Input and the American Society of
Military Comptrollers, April 2011
• Education: DMDC Report, May 2011
30
FM Workforce Credentials Generally Increasing
G
DOD FM Workforce
(By Mission Critical Series / Length of Service)
MCO Workforce as of 2d QTR FY11
Analysis of Trends:
10000
• Recruitment initiatives are being pursued to
maintain the strength of the FM Mission
Critical Occupations
9000
8000
• 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
# of Personnel
7000
6000
501
510
5000
511
FY11 Goal:
560
4000
To limit decline in FM Workforce within initial
10 years of employment and not to decrease
from 2nd Qtr FY10 levels
3000
2000
Result/Status:
1000
0
0-5
5-9
`10-14
20-24
Length of 15-19
Service (Years)
25-29
30-34
35+
No Decline; increase of 2,154 with 0-9 Years
Service (from 2d Qtr FY10) G
*Source of information – www.fedscope.gov, accessed September, 2011
31
Focus on Our FM Workforce
“Broadening” Conceptual View
Level 3
Concepts, Policies and Principles of
Advanced Financial Management
Competency
SECONDARY
SPECIALTY
Level 2
Concepts, Policies and Principles of
SECONDARY
SPECIALTY
PRIMARY
SPECIALTY
Fundamentals and Opns of
Fundamentals and Opns of
Level 1
PRIMARY
SPECIALTY
32
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 Accounting
Finance
Budget
PRIMARY
SPECIALTY
Mil/Civ Pay
• Fundamentals and Opns of
Different Specialty from CP&P
SECONDARY
SPECIALTY
33
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
SECONDARY
SPECIALTY
34