Al Runnels, CDFM Executive Director ASMC ASMC & D EFENSE F INANCIAL M ANAGEMENT.

Al Runnels, CDFM Executive Director

ASMC

ASMC &

DEFENSE FINANCIAL MANAGEMENT

AGENDA

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

DEFENSE FINANCIALMANAGEMENT PROFESSION

Broad Body of Knowledge

Public Trust / Ethical Standards

Legal Liability

Stewardship of Taxpayer Dollars

4

EDFM/CDFM CORE COMPETENCIES

1. Government Resource Management Environment

2. Fiscal Law

3. Finance

4. Accounting

5. Defense Budget Process

6. Manpower Management

7. Personnel Management

8. Cost and Economic Analysis

9. Internal Controls

10. Business Management Process Improvement

11. Auditing

5

DOD FM ENTERPRISE-WIDE COMPETENCIES

(1 – 17 APPLY TO DOD FMCP )

1. Fundamentals & Operations of Finance

2. Fundamentals & Operations of Military & Civilian Pay

3. Payroll Concepts, Policies & Principles

4. Commercial Pay Concepts, Policies & Principles

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

11. Budget Execution

12. Budget Formulation, Justification & Presentation

13. Financial Management Analysis

14. Audit Concepts, Policies & Principles

15. Financial Management Systems

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

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

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 $450

$470

$490

$510

$530

$550

$570

$590

$610

FY 2013 PB FY 2016 PB Sequester-Level

PB 16 Base Budget Supports the 2014 QDR StrategySequester-Level Budgets Do Not

($B)

PB 2013

PB 2016

Sequester-Level Budgets

10

The FY 2016 President’s Budget is a Strategy-Driven, Resource-Informed Budget

585 574

437468

479

534

601

666 666691

687645

33

583

6

23

3

8

3

71

17

597

* Reflects FY 2013 Enacted level excluding Sequestration

614*

560578 591

Numbers may not add due to rounding

$750

$250

$500

$0FY01 FY02 FY03 FY04 FY05 FY06 FY08FY07 FY09 FY10 FY12FY11 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

287 328 365 377 400 411 431 479 513 528 528 530 495 496 496 534 547 556 564 570

345316

581

166

7391 76

116

187 146162 159

115

82 85 6451 27 27 27 27

DoD Topline, FY 2001 – FY 2020(Current Dollars in Billions)

The $27 million shown in FY 2017 through FY 2020 for OCO are placeholder amounts

Base Budget OCO Other

11

Projections (red bars) assume FYDP plus $26.7 billion annual placeholders for OCO in years beyond FY 2016

Korea Vietnam Reagan Buildup

Iraq/Afghan

Fiscal Year

(FY 2016 Dollars in Billions)

VietnamFY68-74: -29.9%

Buildup/Cold WarFY86-98: -32.8%

KoreaFY52-56: -42.4%

Total Budget Trends(Including supplemental and OCO funding)

FY10 – FY20:-26%/-$198B

12

1950

1953

1956

1959

1962

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

2004

2007

2010

2013

2016

0%

10%

20%

30%

40%

50%

60%

70%

80%

DoD Outlays as a Percentage of Federal SpendingFY 1950 - FY 2016

Korea57.0%

Vietnam43.4%

FY 2016 : 14.3%

Reagan (1986)Build Up

26.8%

13

The Big Picture……and Challenge

HISTORY OF AUDIT EFFORTS TO DATEThe Financial Audit Requirement and DoD Approach

FIAR Office Established

2005

1994

Initial Priorities Established

2009

2014

Pre-2009 Audit emphasis

largely within only the comptroller organizations

Post-2009Audit efforts involve all functional areas

enterprise-wideInitial DoD Efforts Begin

FY 2014 Statutory DirectionAchieve Audit Readiness

of General Fund Statement of Budgetary Resources (SBR)

2017 FY 2017 Statutory DirectionAchieve Full

Agency Financial Statement Audit Readiness

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 MEMBERS

(AS OF 1 JUNE 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%)

USMC 615 (4%)

DFAS 1,233 (7%) 8,800 (16%)

DON: 10,100 (19%)

15

ASMC MEMBERSHIP

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

DOD FM CERTIFICATION PROGRAM

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”

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CDFM BENEFITS

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 Level

Proficiency Level

Aligned Hours

Accounting Concepts, Policies and Principles 2 3 6Audit Concepts, Policies and Principles 2 3 3Budget Concepts, Policies and Principles 2 3 8Budget Execution 2 3 5Budget Formulation, Justification and Presentation

2 3 4

Decision Support 1 1 5Financial Concepts, Policies and Principles 2 3 4Financial Management Analysis 2 3 2Fundamentals and Operations of Budget 1 1 3

Certification Level 1 Total Certification Level 2 Total

8 Hours 32 Hours20

ACTIVE CDFMS(AS OF 1 JUNE 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%) 16%

Private Sector (6%) N/A

USCG (1%) N/A

DON: 19%

CDFM INITIAL REQUIREMENTS

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 CERTIFICATION PROCESS

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 COST / MAINTENANCE

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

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

CERTIFICATION PRICING COMPARISON

25

PREPARATION FOR CDFM

Start with www.asmconline.org

Preparation options

Enhanced Defense Financial Management Training Course (EDFMTC)

Pre-PDI workshops

Refresher courses

Self-Study (not an option – a must)

26

http://www.asmconline.org/

CERTIFICATION FOCUS

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

VIRTUAL 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

31https://fmonline.ousdc.osd.mil/

FM Certification Equation: Level 1

FM

Competencies

Course Hours

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 6 Aligned Courses will be on FM myLearn

DoD FM 101 Course** 24

At Least 2 Yrs DoD FM Experience

FM Certification Level 1

+

+

+

* Proficiency Level 1** Six of the twelve modules may be waived with the exception of Audit Readiness

40 CETs every two years

https://fmonline.ousdc.osd.mil/ 32

Total Course Hours 46

DoD FM 101 Modules

Course: DoD FM 101 for Level 1 Modules* Course Hours

Introduction to DoD 1 Accounting 2Finance 2Budget 3Audit Readiness 3Fiscal Law 2 Ethics 1PPBE 2Auditing 2Analysis/Decision Support 2Acquisition/Contracting 2Cost Analysis 2

*Six of the twelve modules may be waived with the exception of Audit Readiness



FM Competencies

Course

Hours

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

Aligned Courses will be on FM myLearn

Audit Readiness + Fiscal Law Course + Ethics Courses 9

At Least 4 Yrs FM Experience Required (2 years Must be DoD FM Experience)


+

+

+

* Proficiency Level 3 ** Proficiency Level 1

+ [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





FM Competencies

Course

Hours

Financial Management Systems * 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 *** 9 At Least 8 Yrs FM Experience Required(2 years Must be DoD FM Experience)


+++

+ [Strongly Recommended] Work towards Master’s Degree+ [Strongly Recommended] Completion of one of the DoD-approved Test-Based Certifications


At Least One 3-month Developmental Assignment

+ * Proficiency Level 5 ** Proficiency Level 3*** Higher Proficiency Level Course

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


Aligned Courses will be on FM myLearn


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Flexibility Integrity/Honesty Interpersonal SkillsResilience Customer Service Oral CommunicationContinual Learning Problem Solving Written CommunicationService Motivation Technical Credibility Mission OrientationComputer Literacy

Team Building Accountability Decisiveness Influencing/NegotiatingDoD Mission and Culture

Human Capital Management Leveraging Diversity Conflict Management Developing Others DoD Corporate PerspectiveNational Security Foundation

Technology Management Financial Management Creativity and Innovation Partnering Entrepreneurship National Defense IntegrationNational Security Environment

Vision External Awareness Strategic Thinking Political Savvy Global PerspectiveNational Security Strategy

Lead the Institution

Lead Self

Lead Teams/Projects

Lead People

Lead Organizations/Programs

36

Al Runnels, CDFM Executive Director ASMC ASMC & D EFENSE F INANCIAL M ANAGEMENT.

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