Presented to the ASMC Yankee Chapter By Alvin Tucker, CDFM-A August 16, 2012 T HE F UTURE OF D EFENSE F INANCIAL M ANAGEMENT AND Y OU

P ROFESSIONAL O VERVIEW  Your profession is Defense Financial Management  Specific Body of Knowledge  Ethical Standards  Public Trust  Legal Liability

C ORE C OMPETENCIES FOR D O D F INANCIAL M ANAGEMENT 1. Government Resource Management Environment 2. Manpower Management 3. Personnel Management 4. Management’s Responsibility for and Internal Controls 5. Defense Budget Process 6. Cost and Economic Analysis 7. Business Management Process Improvement 8. Fiscal Law 9. Finance 10. Accounting 11. Auditing

ASMC IS YOUR P ROFESSIONAL S OCIETY  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

W HAT ’ S H APPENING N OW ?  OMB policy on “Conferences”  DoD course-based certification  Virtual PDI  Sequestration  Audit Readiness

GSA S CANDAL  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”

F ALL O UT  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

I MPACT 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 1 st round  Greater reliance on Virtual PDI

V IRTUAL PDI  Began with PDI 2012  Presently 1,184 paid participants  73 workshops and interviews on line  CPE available  CPE management tool

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

S EQUESTRATION  $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

S EQUESTRATION ( 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

I SSUES FOR A L AME D UCK C ONGRESS  Debt limit increase  Extension of Bush tax cuts  Continuing resolution  AMT fix  Doc fix  Sequestration  Extension of payroll tax reduction

A UDIT R EADINESS  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

A UDIT R EADINESS ( CONT ’ D )  Provide more audit readiness training in the EDFM course  Develop an audit readiness training package for alternative delivery methods

W HAT ’ S HAPPENING WITH YOU ?  Sharpen skills  Stay flexible  Be mobile  Get more training  Diversify  Certification

H ELP Y OU S TAND O UT  Test-based Certification  Certified Defense Financial Manager  Enhanced Defense Financial Management Training Course  3 College Credits (undergraduate or Graduate with research paper)  A SMC awards

H ELP Y OU B E A L EADER  Leadership opportunities  In your ASMC chapter  In community service

CDFM R EQUIREMENTS 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.

O THER T RAINING 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

PDI 2013 D ENVER C ONVENTION C ENTER 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 31 Over 100 Workshops, 7 Mini-Courses, General Sessions

A SSESSMENT R ESULTS  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

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

ASMC F IVE -Y EAR P LAN  NEC approved in June 2011  Improve communications  Develop a virtual PDI  Better Chapter outreach  Provide more educational offerings

F IVE -Y EAR P LAN G OALS  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

ASMC W EBSITE