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

2. 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

3. D EFENSE F INANCIAL M ANAGEMENT P ROFESSION  Broad Body of Knowledge  Public Trust / Ethical Standards  Legal Liability  Stewardship of Taxpayer Dollars 4

4. 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 5

5. 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 6

6. US Government Spending as a Percentage of GDP (Source: FY 2014 Consolidated Federal Financial Report) 7

7. US Government Taxes and Other Revenue (Source: FY 2014 Consolidated Federal Financial Report) 8

8. US Budget Deficit & Net Operating Cost (Source: FY 2014 Consolidated Federal Financial Report) 9

9. PB 16 Base Budget Supports the 2014 QDR Strategy Sequester-Level Budgets Do Not ($B) PB 2013 PB 2016 Sequester-Level Budgets 10

10. The FY 2016 President’s Budget is a Strategy-Driven, Resource-Informed Budget 585 574 437 468 479 534 601 666 691 687 645 33 583 6 23 3 8 3 7 1 17 597 * Reflects FY 2013 Enacted level excluding Sequestration 614* 560 578 591 Numbers may not add due to rounding $750 $250 $500 $0 FY01FY02 FY03 FY04 FY05 FY06 FY08 FY07 FY09 FY10 FY12FY11 FY13 FY14 FY15FY16FY17 FY18 FY19 FY20 287328365377400411431479513528 530495 496 534547556564570 345 316 581 166 73 91 76 116 187 146 162 159 115 82 85 64 51 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

11. Projections (red bars) assume FYDP plus $26.7 billion annual placeholders for OCO in years beyond FY 2016 Korea VietnamReagan Buildup Iraq/Afghan Fiscal Year (FY 2016 Dollars in Billions) Vietnam FY68-74: -29.9% Buildup/Cold War FY86-98: -32.8% Korea FY52-56: -42.4% Total Budget Trends (Including supplemental and OCO funding) FY10 – FY20: -26%/-$198B 12

12. DoD Outlays as a Percentage of Federal Spending FY 1950 - FY 2016 Korea 57.0% Vietnam 43.4% FY 2016 : 14.3% Reagan (1986) Build Up 26.8% 13

13. The Big Picture… …and Challenge H ISTORY OF A UDIT E FFORTS TO D ATE The 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-2009 Audit efforts involve all functional areas enterprise-wide Initial DoD Efforts Begin FY 2014 Statutory Direction Achieve Audit Readiness of General Fund Statement of Budgetary Resources (SBR) 2017 FY 2017 Statutory Direction Achieve Full Agency Financial Statement Audit Readiness 13

14. 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

15. ASMC M EMBERS (A S OF 1 J UNE 2015)  17,521 (32% of 54,000 Defense FMers) ASMC MembersDoD 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

16. 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

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18. 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

19. 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

20. 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 Certification Level 1 TotalCertification Level 2 Total 8 Hours32 Hours 20

21. 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%) 16%  Private Sector (6%) N/A  USCG (1%) N/A DON: 19%

22. 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

23. 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

24. 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

25. 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 C ERTIFICATION P RICING C OMPARISON 25

26. P REPARATION FOR CDFM  Start with www.asmconline.org 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

27. 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

28. 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

29. 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

30. 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

31. Additional Slides re DoD FM Certification Program 31 https://fmonline.ousdc.osd.mil/

32. 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

33. 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/ 33

34. 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/ 34 Total Course Hours 71

35. 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 Total Course Hours 81 35

36. 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 36