The Government Financial Management Workforce: Issues and Solutions

1
The Government Financial Management Workforce
Issues and Solutions

• Association of Government Accountants
• Montgomery AL Chapter
• Fall Seminar
• November 14, 2008

2
GOVERNMENT WORKFORCE ISSUES IN THE U.S. AND AL

• Bob Childree, CGFO
• Alabama State Comptroller

3
Government Workforce Issues

• 60 of the workforce eligible for retirement
  within the next 10 years
• Employees retiring at 25 years
• Mass retirement could leave agencies with
  inadequate knowledge and manpower
• Career employees retiring with no trained
  successor
• Mission of agency could be jeopardized
• Services delayed
• Support interrupted

4
Government Workforce Issues

• Identification of competency gaps
• Employees with right skill levels
• Technology advancements
• Clerical and Technical positions are decreasing
• Professional and administrative positions are
  increasing
• Greater demand for decision making analysis
• Accountants
• Budget Analysts
• Financial Analysts

5
Government Workforce Issues

• Requirements
• Develop a workforce improvement plan
• Right People
• Right Jobs
• Right Skills
• Develop incentives for workforce planning
• Legislative/Personnel Changes
• Encourage leadership
• Tone at the Top

6
Government Workforce Issues

• Promote education and certification requirements
• New Accounting and Budgeting series requirements
  for State of Alabama
• Require continuing professional education
• Promote certification programs

7
Government Workforce Issues

• Federal Office of Personnel Management
• Developed Human Capital Framework
• Set Strategic Direction
• Analyze Workforce
• Develop Action Plan
• Implement Action Plan
• Monitor, Evaluate and Revise Plan

8
Government Workforce Issues

• Set Strategic Direction
• Link to SMART Planning Strategies
• Forecast Budget Expectations
• 2. Analyze Workforce
• Gaps in current and future needs
• Current skills vs future skills

9
Government Workforce Issues

• 3. Develop Action Plan
• Strategies to close gaps
• Implementation plan
• When to hire
• Who to hire
• Education and training needs
• Strategic Measures

10
Government Workforce Issues

• 4. Implement Action Plan
• Right People
• Coordinated efforts between State of Alabama,
  Auburn Montgomery and Association of Government
  Accountants
• Right Jobs
• Current job analysis
• Assess workflow requirements
• SMART Business Systems

11
Government Workforce Issues

• Right Skills
• Education and Training for Employees
• New State employee education and training policy
• Auburn Montgomery
• Governmental Accounting Option
• Certified Governmental Financial Manager
  Certification
• Governmental Accountant and Auditor Training
• Certified Public Manager Program
• State Personnel
• New requirements
• Salary increases

12
Government Workforce Issues

• 5. Monitor, Evaluate and Revise Plan
• Identify goals that have been met
• SMART Planning objectives
• Continuous training and education
• Encourage further education
• Coordinate new educational opportunity with other
  organizations
• Adjust Plan
• Correct problem areas immediately
• Identify new issues
• Education requirements
• Technology advancements
• Changes in administrations

13
State of AlabamaAccounting Series

• Tom White, CPA
• Chief Accountant and Director
• Bureau of Financial Services,
• Alabama Department of Public Health
• CFO, Alabama Public Health Care Authority

14
Major Topics Overview

• Compensation
• Job Specifications
• Minimum Qualifications
• Application Recruitment Process
• Testing

15
Compensation

• Salary ranges are not competitive with
• Private business
• City and county government
• Educational institutions
• Other states are not our competitors
• All salary ranges need to be reviewed
• For example - merit accountant lt 28,000
• Private enterprise and other government entrance
  level is 35,000
• Can not compete paying gt20 less than prevailing
  salary at professional entrance level

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Job Specifications

• Job class descriptions need to be revised and
  updated
• Last major changes made in 1989
• Computer technology inadequately addressed
• Job class definitions do not address organization
  structure needs

17
Minimum Qualifications

• Review minimum qualifications for all job classes
• Education
• Diploma
• College courses
• Degree requirements
• Experience requirement

18
Application Recruitment Process

• Streamline application process
• Applicants find other employment in the extended
  period it takes to complete the process and be
  placed on a register
• Educate departments on streamlined process
• Develop recruitment tools and solicit department
  staff to travel to schools and job fairs to
  promote merit system accounting series
• Administer test onsite and fast track grading
  process

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Testing

• Review all job class requirements to determine if
  a test is required
• If a test is required, use streamlined testing
  process whenever possible
• Test accounting knowledge
• Eliminate non-accounting/auditing related
  questions

20
Recommendations

• Presented to State Personnel Director and Staff

21
Accounting, Auditing Budget Series
Recommendations for Compensation

• Recommendations expanded to include all
  Accounting, Auditing, Budgeting and selected
  unique fiscal job classes at the request of State
  Finance Director
• Proposed pay ranges for twenty-one (21) existing
  and recommended job classes
• Proposed ranges based on salary data from
• Robert Half 2007 Salary Guide - Accounting
  
  and Finance Salaries
• AICPA
• Salary Expert
• Salary Wizard
• Wage Web
• Print newspaper job announcements
• Web sites reporting accountant salary data

22
Series Job Specifications

• Proposed revisions to existing and new job
  classes in accounting, auditing and budget series
• Revisions were developed by subject matter expert
  fiscal officers
• Robert Half Glossary of Job Descriptions for
  Accounting and Finance was used as a guide

23
Accounting Budget Series Minimum Qualifications

• Accounting Series Minimum Qualifications -
  Graduation from an accredited four year college
  or university, with one of the following 1)
  major course work in accounting or 2)
  concentration with the equivalent of 27 semester
  hours in accounting (all accounting courses must
  be successfully completed with a grade C or
  better).
• Budget Series Minimum Qualifications -
  Graduation from an accredited four year college
  or university with major course work in business
  or public administration, accounting, finance,
  economics or a closely related field.

24
Accounting Series Intern

• Accounting Intern New job class for accounting
  student recruitment.
• Concept modeled after Department of
  Transportation Professional Civil Engineer
  Trainee classification.

25
State Personnel Board Action

• Based on Personnel Staff Recommendations

26
Personnel Board Staff Approval

• Pay range changes to twenty-one (21) job classes
• Personnel staff concurred with fiscal officers
  recommendations on the majority of job class pay
  ranges. Where staff did not concur, in all
  cases, pay ranges were increased, but not the
  number recommended.
• Implementation/effective Date January 1, 2008
• Range changes affected 1,300 employees
• Majority were in accounting job classes
• Board approved major changes to twenty-three (23)
  revised job specifications as a package subject
  to final wording by State Personnel

27
Personnel Board Staff Approval Continued

• Compensable Factors (Minimum Qualifications)
  Graduation from an accredited four year college
  or university, with a bachelors degree in
  accounting or a bachelors degree in any other
  field including the completion of at least 27
  semester hours of accounting courses, preferably
  supplemented by professional certifications in
  accounting or auditing.
• Accountant
• No test required
• Register placement based on submitted application
  using minimum qualification screen only
• All register applicants show as tied scores
• Specific applicants can be recruited for register
  placement

28
Personnel Board Staff Approval Continued

• Accountant - Continued
• State Personnel will allow in-hire rate above
  step 1
• State Personnel term is minimum in-hire guideline
• Minimum in-hire guideline is now set at Range 71
  step 6 i.e. 1,597.80 SM or 38,347.20 annually
  
• Tentative job offers up to step 6 can be extended
  to a recruited applicant with stipulation that
  applicant must meet minimum qualifications
  required for register placement

29
Personnel Board Staff Approval Continued

• Accounting Intern renamed State Intern
• Generic job class for Accounting, Auditing,
  Budgeting and any other designated entrance level
  merit job class approved by State Personnel
• Conditional appointment
• Modeled after fiscal officers original
  Accounting Intern proposal
• Requires documented advancement toward a approved
  degree
• Semi-monthly pay with full merit system benefits
  or hourly pay at hiring agency discretion.

30
Personnel Board Staff Approval Continued

• Accounting Intern/State Intern continued
• State Intern class code 11917
• Full-time, part-time or coop
• State Intern Form (Personnel Form 21)
• Letter from accredited four-year college or
  university must be attached for initial
  appointment
• Pay range 5054,
• 10.44-14.77 per hour
• 905.10-1280.20 SM
• 21,722.40-30,724.80 annual

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PROFESSIONAL ACCOUNTING CERTIFICATION

• Judy Kamnikar, Ph.D., CPA, CGFM, CGFO
• Professor of Accounting
• Auburn University Montgomery

32
CERTIFICATION

• CGFM
• Certified Government Financial Manager
• CGFO
• Certified Government Finance Officer
• CIA
• Certified Internal Auditor
• CMA
• Certified Management Accountant
• CPA
• Certified Public Accountant

33
CGFM

• Association of Government Accountants
• Education Requirements
• Bachelors degree
• Including accounting and business courses
• Experience Requirements 2 years
• Fees
• Application fee, 85
• Examination fee, 109 per exam
• Reexamination fee, 109 per exam

34
CGFM

• Examinations - 3
• Government Environment
• Governmental Accounting, Financial Reporting, and
  Budgeting
• Government Financial Management and Control
• Examination Online multiple choice questions
• Eligibility Period 3 years from the date
  application is processed
• Reexamination on failed exams allowed after
  waiting period
• Unlimited testing during eligibility period
• CPE 80 hours every two years renewal fee
• Adherence to the AGA Code of Ethics

35
CGFO

• Government Finance Officers Association of
  Alabama
• Education Requirements
• Bachelors degree
• Including
• Experience Requirements 2 years
• Examinations 5
• No Longer Available
• CPE 40 hours per year, renewal fees
• Adherence to the GFOAA Code of Ethics

36
CIA

• Institute of Internal Auditors
• Education Requirements
• Bachelors degree or higher
• Certification /or Experience as waiver
• Students can test in senior year
• Experience Requirements 2 years
• Fees
• Application fee, 60-75
• Examination fee, 130-160 per exam
• Reexamination fee, 130-160 per exam

37
CIA

• Examinations - 4
• Internal Audit Activitys Role in Governance,
  Risk, and Control
• Conducting the Internal Audit Engagement
• Business Analysis and Information Technology
• Business Management Skills
• Examination Online multiple choice questions
• Eligibility Period Unlimited but must take
  exams during each 2 year period from the date
  application is processed
• Registration authorization period 180 days
• Reexamination exams allowed after waiting period
  of 90 days
• Unlimited testing during eligibility period
• CPE 80 hours every two years renewal fee
• Adherence to the IIA Code of Ethics

38
CMA

• Institute of Management Accountants
• Education Requirements
• Bachelors degree
• Score in 50th percentile or higher on GMAT or
  GRE
• Experience Requirements 2 years
• Fees
• Application fee, 200
• Examination fee, 190 per exam
• Reexamination fee, 190 per exam

39
CMA

• Examinations - 4
• Business Analysis
• Management Accounting and Reporting
• Strategic Management
• Business Applications
• Examination Online multiple choicequestion
• Eligibility Period 7 years from the date
  application is processed
• CPE 40 hours every year renewal fee

40
CPA

• American Institute of Certified Public
  Accountants
• Education Requirements - AL
• 150 Semester Hours including a Bachelors degree
• Concentration in Accounting
• Experience Requirements AL - 2 or 5 years
• Fees
• Application fee, 100
• Examination fee, 190 235 per exam
• Reexamination fee, 50 per exam

41
CPA

• Examinations - 4
• Auditing and Attestation
• Financial Accounting and Reporting
• Regulation Ethics, Professional and Legal
  Responsibilities, and Business Law
• Business Environment Concepts
• Examination Online multiple choice questions
• Eligibility Period 18 months from the date
  application is processed
• CPE 40 hours every year renewal fee

42
CERTIFICATION SUMMARY
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AUMs CGFM PROGRAM

• Keren Deal, Ph.D., CPA, CGFM
• Assistant Professor of Accounting
• Auburn University at Montgomery

44
AUMs CGFM PROGRAM

• CGFM Program at AUM
• Three courses
• ACCT 4510/6510 Governmental and Nonprofit
  Accounting, Financial Reporting and Budgeting
• ACCT 4520/6520 Governmental Financial
  Management and Control
• ACCT 4530/6530 Governmental Environment and
  Public Accountability

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AUMs CGFM PROGRAM

• Three ways to register to attend classes at AUM
• Register for MBA program and take classes as
  graduate student
• Register as an undergraduate
• Register as unclassified no degree program
• Registration procedures www.aum.edu
• Joy Strong in School of Business Advising
  334/244-3565
• Must complete registration by Dec 15, 2008

46
AUMs CGFM PROGRAM

• Courses in detail
• ACCT 4510/6510 (pertains to Part 2 of the CGFM
  Examination)
• Typically the 1st course of the program
• ACCT 4520/6520 (pertains to Part 3 of the CGFM
  Examination)
• ACCT 4530/6530 (pertains to Part 1 of the CGFM
  Examination)

47
AUMs CGFM PROGRAM

• Course Schedule for Spring 2009 (tentative)
• ACCT 4510/6510 500 730 pm T/Th
• January 8 March 3, 2009
• ACCT 4520/6520 500 730 pm T/Th
• March 5 May 7, 2009
• ACCT 4530/6530 210 450 pm T/Th
• March 5 May 7, 2009
• Course Schedule for Fall 2009 (tentative)
• ACCT 4510/6510 500 615 pm T/Th
• August December, 2009

48
AUMs CGFM PROGRAM

• AUMs success with the CGFM program
• Mixture of state and local government employees
• Local CPA firms
• Traditional students
• 50 exam parts have been administered in
  conjunction with the AUM program
• 90 pass rate to date
• 21 exam parts to be administered on campus
  December 8-9, 2008

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AUMs CGFM PROGRAM

• New CGFMs from the AUM program
• Carissa Adams-Fondren - State
• Kathleen Baxter State
• Rachel Chou State
• Pam Harris - State
• Mike Knighten County
• Vernita Saunders - State
• Donna Snyder State
• Penny Smith Local
• Regina Williams CPA Firm
• Douglas Patrick CPA Firm

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Questions???