ASMC & D EFENSE F INANCIAL M ANAGEMENT

Al Runnels, CDFM Executive Director ASMC

A GENDA 

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

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

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%) 14

ASMC M EMBERSHIP 

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

D O D FM C ERTIFICATION P ROGRAM

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

Purpose of DoD FMCP 

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

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

18

DoD FMCP Applicability  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

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

19

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

20

FM Certification Requirements  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)

Foundation Built on DoD FM Competencies https://fmonline.ousdc.osd.mil/

21

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/

22

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/

23

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/

24

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/

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

B ENEFITS

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 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 28

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%)



USMC 252 (4%)



DFAS 361 (5%)

DON: 19%

16%

29

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 - 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 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

31

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 32

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

33

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)

34

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) 35

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 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 2015 38

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 39