1. Tampa Bay PDI Al Runnels, CDFM Executive Director, ASMC 3 April 2014 ASMC & YOU

2. A GENDA  Federal Financial Environment  The FM Profession  ASMC – Your Professional Society  Membership  Certification Programs (ASMC and DoD)  DoD Audit Readiness  National and Virtual PDI 2

3. 3 US Government Spending as a Percentage of GDP (Source: FY 2012 Consolidated Federal Financial Report)

4. D EFENSE F INANCIAL M ANAGEMENT P ROFESSION  Body of Knowledge  Ethical Standards  Legal Liability  Public Trust 4

5. ASMC  Non-profit association founded in 1948  Serves DoD and US Coast Guard financial managers  19,000 members, 140 chapters, 63 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 5

6. M EMBERSHIP  54,000 Defense Financial Managers  2011: Highest ASMC Membership ≈ 20,000  Currently About 19,000 Members (35% of 54,000)  Down 2.7% from Last Year  February Joins and Renewals Higher than Feb Last Year  Army and Air Force 26% and 27%, respectively; Navy 13%, USMC 4%, DFAS 7%, USCG 1%  $26 Annual Dues 6

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8. CDFM C ERTIFICATE  6,874 CDFMs (13% of 54,000) 1,587 CDFM-A  CDFMs:  Army 28%  Air Force 25%  Navy 14%  USMC 4%  DFAS 5% 8

9. B ENEFITS OF CDFM  Solid foundation to support the DoD and Coast Guard financial management communities  Increased knowledge of defense financial management  Greater confidence on the job  Portable and tangible indicator of experience and knowledge  Management incentives and continuing education  Enhanced credibility and employee value 9

10. EDFM/CDFM C ORE C OMPETENCIES 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 10

11. D O D FM E NTERPRISE -W IDE C OMPETENCIES (1 – 17 A PPLY TO D O D 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 11

12. 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 12

13. CDFM C ERTIFICATION P ROCESS  Step 1 – Adhere to ASMC Pledge of Professionalism  Step 2 - Enroll in CDFM Program and receive enrollment welcome message  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 13

14. CDFM C OST / M AINTENANCE  Earning the certification Enrollment fee - $35 members $70 non-members Examination fee - $95 per exam  Maintaining the certification Renewal fee - $20 members $40 non-members 80 CPEs every 2 years (incl 2 Ethics); at least 20 in each year 14

15. P REPARATION FOR CDFM  Start with www.asmconline.org www.asmconline.org  Preparation options Course - Enhanced Defense Financial Management Training Course (EDFMTC) Refresher courses Pre-PDI workshops Self-Study 15

16. C ERTIFICATION F OCUS  Focus on enrollees who have not completed CDFM  Survey - Mod 2 Budget and Cost Management Refresher Course  Textbook Update  Exam Update  EDFMT – Credit toward DoDFMCP  Level 1 - 8 hours; Level 2 – 32 hours 16

17. Enhanced Defense Financial Management Training Course FM MyLearn Course Description: FMF2512 – Jul 12 Course Length: 40 hours Aligned FM CompetenciesCertification Level Proficiency Level Aligned Hours Accounting Concepts, Policies and Principles236 Audit Concepts, Policies and Principles233 Budget Concepts, Policies and Principles238 Budget Execution235 Budget Formulation, Justification and Presentation 234 Decision Support115 Financial Concepts, Policies and Principles234 Financial Management Analysis232 Fundamentals and Operations of Budget113 Level 1 TotalLevel 3 Total 8 Hours32 Hours

18. D O D FM C ERTIFICATION P ROGRAM Approved in FY 2012 NDAA  Implementation by Components by 10/2014  Skill levels: 1, 2, and 3  Two years to complete at each level  Specific course based requirements  Additional certification encouraged  Bachelor and advanced degrees encouraged  Continuing Education and Training Units required after completion: 40 / 60 / 80 at Levels 1 / 2 / 3, respectively 18

19.  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 Purpose of DoD FMCP https://fmonline.ousdc.osd.mil/19

20.  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 DoD FMCP Applicability https://fmonline.ousdc.osd.mil/20

21. FlexibilityIntegrity/HonestyInterpersonal Skills ResilienceCustomer ServiceOral Communication Continual LearningProblem SolvingWritten Communication Service MotivationTechnical CredibilityMission Orientation Computer Literacy Team Building Accountability Decisiveness Influencing/Negotiating DoD Mission and Culture Human Capital Management Leveraging Diversity Conflict Management Developing Others DoD Corporate Perspective National Security Foundation Technology Management Financial Management Creativity and Innovation Partnering Entrepreneurship National Defense Integration National Security Environment Vision External Awareness Strategic Thinking Political Savvy Global Perspective National Security Strategy Lead the Institution Lead Self Lead Teams/Projects Lead People Lead Organizations/ Programs 21

22.  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) 22 https://fmonline.ousdc.osd.mil/ FM Certification Requirements Foundation Built on DoD FM Competencies

23. 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/ 23 Total Course Hours 46

24. DoD FM 101 Modules Course: DoD FM 101 for Level 1 Modules*Course Hours Introduction to DoD1 Accounting2 Finance2 Budget3 Audit Readiness3 Fiscal Law2 Ethics1 PPBE2 Auditing2 Analysis/Decision Support2 Acquisition/Contracting2 Cost Analysis2 *Six of the twelve modules may be waived with the exception of Audit Readiness https://fmonline.ousdc.osd.mil/ 24

25. FM Certification Equation: Level 2 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 Aligned Courses on FM myLearn Leadership Competencies 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) FM Certification Level 2 + + + * 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 60 CETs every two years https://fmonline.ousdc.osd.mil/ 25 Total Course Hours 71

26. FM Certification Equation: Level 3 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 Leadership Competencies 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) FM Certification Level 3 + + + + [Strongly Recommended] Work towards Master’s Degree + [Strongly Recommended] Completion of one of the DoD-approved Test-Based Certifications 80 CETs every two years At Least One 3-month Developmental Assignment + * Proficiency Level 5 ** Proficiency Level 3 *** Higher Proficiency Level Course https://fmonline.ousdc.osd.mil/ Aligned Courses on FM myLearn Aligned Courses will be on FM myLearn 26 Total Course Hours 81

27. DoD FM LMS Requirements 27  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

28. D O D A UDIT R EADINESS  Assert audit readiness for Statement of Budgetary Resources by end of CY2014  Begin audit of SBR in FY2015  Achieve clean audit opinions on all DoD FY 2017 financial statements  ASMC added info on audit readiness to EDFM course material (New textbook soon to be published for use in EDFMT)  ASMC will revise “auditing” competency area CDFM exam module to include questions about audit readiness 28

29. ASMC PDI 2014 (S EATTLE C ONVENTION C ENTER )  PDI = FM Leadership / Defense FM Training and Professional Development  CDFM Prep Training and CDFM Testing  Six General Sessions, 46 Workshops, 17 Mini- courses (Levels 2 and 3)  Wednesday - Service Day – Updates on Component FM Policy and Guidance  Up to 21 CETs/CPEs  ASMC National Awards Program  Virtual PDI 2014 29

30. V IRTUAL PDI 2012  73 workshops and interviews on line  Approximately 50 CPEs available  Cost: $99 ($2/CPE)  CPE management tool  1,300 participants 30

31. 31 Questions?