The Future of Defense Financial Management and You

1. The Future of Defense Financial Management and You Presented to the ASMC Yankee Chapter By Alvin Tucker, CDFM-A August 16, 2012

2. Professional Overview • Your profession is Defense Financial Management • Specific Body of Knowledge • Ethical Standards • Public Trust • Legal Liability

3. Core Competencies for DoD Financial Management • Government Resource Management Environment • Manpower Management • Personnel Management • Management’s Responsibility for and Internal Controls • Defense Budget Process • Cost and Economic Analysis • Business Management Process Improvement • Fiscal Law • Finance • Accounting • Auditing

4. ASMC is your Professional Society • Non-profit association founded in 1948 • Serves financial managers in: • Five military services and defense agencies • Today has about 20,000 members • 150 chapters, 78 corporate members • Major offerings • National PDI and regional PDIs • Chapter training programs • Certification program (CDFM) • Professional journal • Selected training courses

5. What’s Happening Now? • OMB policy on “Conferences” • DoD course-based certification • Virtual PDI • Sequestration • Audit Readiness

6. GSA Scandal • 300 Feds go to Las Vegas in October 2010 • Spent $822K: Planning $136K, Conference $686K • Failed to follow contracting regulations • Incurred excessive and impermissible costs for food • Incurred impermissible and questionable miscellaneous expenses • Planning goal: make it “over the top”

7. Fall Out • President’s Executive Order, Nov 9, 2011 • 20 % reduction in travel in FY 2012 vs. FY 2010 • IG Report on GSA Conference, April 2, 2012 • Sen. Coburn (R-OK) amendment to Postal Reform • OMB memo, May 11, 2012 • Reduce FY 2013 travel by 30% vs. FY 2010 • Over $100K needs higher level approval • $500K prohibition, but it can be waived

8. Impact on ASMC • PDI and Mini-PDI’s qualify as “conferences”, especially if held in commercial facilities • Costs for approval parameters include: fees, food, lodging, transportation paid by Government • Presently, approval levels at DCMO and DepSecDef • Approval levels may change after the 1st round • Greater reliance on Virtual PDI

9. Virtual pdi • Began with PDI 2012 • Presently 1,184 paid participants • 73 workshops and interviews on line • CPE available • CPE management tool

10. COURSE-BASED CERTIFICATION • Approved in FY 2012 NDAA • Pilot begins October 1, 2012 (FY 2013) • Three skill levels: • Basic, Intermediate and Advanced • Specific course requirements • Continuing Professional Education (CPE) • Certification encouraged • Bachelor and advanced degrees encouraged

11. Sequestration • $1.2 Trillion over ten years • 50% to National Security, or $600 B • For DoD, about $50 Billion a year • Percentage reductions by appropriation title • President can exempt Military Pay • No programmatic discretion • Happens January 2, 2013

12. Sequestration (cont’d) • Good News: • “It can’t be allowed to happen” - DoD leaders • “It won’t happen” – Congressional leaders • Bad News: • Decision deferred until after the election

13. Issues for a Lame Duck Congress • Debt limit increase • Extension of Bush tax cuts • Continuing resolution • AMT fix • Doc fix • Sequestration • Extension of payroll tax reduction

14. Audit Readiness • Assert audit readiness for Statement of Budgetary Resources (SBR) by end CY 2014 • Begin audit of SBR in FY 2015 • Achieve clean audit opinions on all DoD FY 2017 financial statements

15. Audit Readiness (cont’d) • Provide more audit readiness training in the EDFM course • Develop an audit readiness training package for alternative delivery methods

16. What’s happening with you? • Sharpen skills • Stay flexible • Be mobile • Get more training • Diversify • Certification

17. Help You Stand Out • Test-based Certification • Certified Defense Financial Manager • Enhanced Defense Financial Management Training Course • 3 College Credits (undergraduate or Graduate with research paper) • ASMC awards

18. Help You Be a Leader • Leadership opportunities • In your ASMC chapter • In community service

19. CDFM Requirements • Complete four years of federal government related financial management experience with an Associate degree or higher), or • Complete three years of Defense related financial management experience (without degree), or • Complete two years of Defense related financial management experience an Associate degree, or higher.

20. Other Training in FY 2013 • Enhanced Defense Financial Management (EDFM) – 5-day training course • Acquisition module – 2-day course • Audio Conferences • Refresher courses for CDFM modules • Six other offerings during the year • Fiscal Law • 1-,2-,3-day courses on-site

21. PDI 2013Denver Convention Center Monday, May 27 – CDFM Review Courses, Module 4 Acquisition (2day) Tuesday, May 28 – CDFM Review, Testing, MicroSoft Training Wednesday, May 29– Official Opening, Service Day, General Session Thursday-Friday, May 30 – May 31Over 100 Workshops, 7 Mini-Courses, General Sessions

22. Assessment Results • Members value ASMC – 65% rated high, 6% low • ASMC professional development – 87% hi, 2.5% low • Member loyalty – 83% likely to renew, 5% not • Recommend to colleagues – 78% likely, 5% not • PDI – 74% highly satisfied

23. what our members want • Attract new and younger members • Focused education or certification – contracting and audit • Virtual PDI capability • More support for chapters: • National instructors for chapter meetings • Speaker identification

24. ASMC Five-Year Plan • NEC approved in June 2011 • Improve communications • Develop a virtual PDI • Better Chapter outreach • Provide more educational offerings

25. Five-Year Plan Goals • Increase membership to 50% of FM workforce • Increase active CDFM’s to 15% of FM workforce • Achieve 75 Five-Star Chapters • Attain 2,000 participants in virtual PDI • Develop a stronger image outside the FM community

26. ASMC Website