United States General Accounting Office

GAO Report to the Director of the Defense

Finance and Accounting Service

May 1998 FINANCIAL

MANAGEMENT

Profile of Defense

Finance and

Accounting Service

Financial Managers

GAO/AIMD-98-133

GAO United States

General Accounting Office

Washington, D.C. 20548

Accounting and Information

Management Division

B-279330 

May 28, 1998

Mr. Gary W. Amlin

Director, Defense Finance

 and Accounting Service

Dear Mr. Amlin:

As highlighted in our February 1997 high-risk series report,1

 one of the

greatest challenges to improving financial management throughout the

Department of Defense (DOD) is establishing a well-qualified, professional

financial management workforce. Our objective in this series of

assignments is to provide information on qualifications, such as formal

education, professional work experience, training, and professional

certifications of personnel serving in key financial management positions

in DOD. Due to concerns on the part of DOD officials regarding the

completeness of personnel databases and personnel files, we are obtaining

this information from biographies and/or profile instruments provided by

each manager.

This is the fifth of our planned reports on the qualifications and

experience of DOD’s financial management workforce. It contains

information we obtained on key financial managers in the Defense

Finance and Accounting Service (DFAS). We have already issued our

reports on key financial managers within the Office of the Under Secretary

of Defense (Comptroller),2

 the Air Force,3 the Army,4 and the Navy/Marine

Corps.5

 As agreed with DOD officials, our reviews are confined to key

financial management positions. These positions most often include

comptrollers, deputy comptrollers, and budget officers at major

commands and installations in the military services. At DFAS, including its

headquarters, centers, and operating locations, these positions include

directors, deputy directors, accounting and finance directorate/division

directors and branch chiefs, and personnel working directly on Chief

Financial Officers (CFO) Act statements and notes. (Hereafter, the latter

1

High-Risk Series: Defense Financial Management (GAO/HR-97-3, February 1997).

2

Financial Management: Profile of DOD Comptroller/CFO Financial Managers (GAO/AIMD-97-97, 

June 27, 1997).

3

Financial Management: Profile of Air Force Financial Managers (GAO/AIMD-98-4, November 28,

1997).

4

Financial Management: Profile of Army Financial Managers (GAO/AIMD-98-58, February 25, 1998).

5

Financial Management: Profile of Navy and Marine Corps Financial Managers (GAO/AIMD-98-86,

April 15, 1998).

Page 1 GAO/AIMD-98-133 Profile of DFAS Financial Managers
B-279330 

are referred to as CFO statement staff.) These reports can help Defense

agencies in shaping their plans to enhance the qualifications, such as

formal education and training, of their financial management workforce,

as necessary. In addition, the reports provide baseline information that

can be helpful in monitoring progress. Our final report in this series will

discuss the qualifications and professional work experience of personnel

serving in key financial management positions across DOD relative to those

in private sector companies and large state governments. We will also

identify steps DOD has taken and others it should consider implementing to

enhance its financial management workforce to fully meet the objectives

of the CFO Act.

This report provides qualification and professional work experience

information on 3 DFAS financial management executives and 265 of 577 key

financial managers representing 22 of the 23 DFAS organizations included in

our review.

Results in Brief The three DFAS financial management executives included in our review

are the Director, the Deputy Director for Accounting, and the Deputy

Director for Finance. Each of the executives had attained master’s

degrees. The Director had spent 30 years at DOD. The Deputy Directors had

DOD careers ranging from 26 to 33 years. One of the executives held several

professional certifications.

Of the 265 key DFAS financial managers responding to our review:

• About 6 percent (15) were military officials, serving mainly as directors,

deputy directors, and division directors at operating locations (OPLOCs);

94 percent (250) were civilians serving mainly as division directors, branch

chiefs, and CFO statement staffs at centers, and deputy directors and

division directors at OPLOCs.

• Thirteen of 15 military officials and 201 of the 250 civilians reported

holding bachelor’s degrees, with 10 of these respondents reporting more

than one major. About 71 percent of these 214 managers majored in

accounting, while approximately 23 percent reported degrees in

business-related majors other than accounting.

• Ninety-nine respondents (11 military and 88 civilian respondents) also

reported holding master’s degrees, with 3 of these respondents reporting

more than one major. Twelve of these 99 managers held master’s degrees

in accounting, while about 71 percent reported degrees in business-related

majors other than accounting.

Page 2 GAO/AIMD-98-133 Profile of DFAS Financial Managers
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• The military officials’ careers ranged from 11 to 33 years, averaging 23

years, while the civilians’ careers ranged from 1 to 53 years, averaging 23

years. About 69 percent of all respondents reported performing several

financial management-related functions included in our review during

their careers.

• Two hundred twenty-four (12 military and 212 civilian respondents)

reported completing training in one or more of the categories included in

our review during 1995 and 1996. Of these 224 managers, (1) about

88 percent listed general topics, such as computers, supervision, strategic

planning, and communication skills, as examples of the training

completed, (2) about 39 percent reported completing financial-related

training, and (3) about 50 percent reported completing accounting-related

training, such as accounting standards and financial reporting.

• About 31 percent of the 265 respondents reported holding one or more

professional certifications. Of the 83 managers in this group, 80 reported

holding accounting and other financial management certifications, as

follows: 32 were Certified Public Accountants (CPA),6

 64 were Certified

Government Financial Managers (CGFM),7

 and 8 held other certifications,

including the Certified Management Accountant and Certified Internal

Auditor.

Requirements for

Financial Managers

The CFO Act of 1990 was enacted to address longstanding problems in

financial management in the federal government. The act established CFO

positions throughout the federal government and mandated that, within

each of the largest federal departments and agencies, the CFO oversee all

financial management activities relating to the programs and operations of

the agency. Among the key responsibilities of CFOs are overseeing the

recruitment, selection, and training of personnel to carry out agency

financial management functions.

Recognizing that a qualified workforce was fundamental to achieving the

objectives of the CFO Act and other related management reform legislation

aimed at improving federal financial management, the Human Resources

6

The CPA certification program has existed since 1917. State organizations administer this program,

awarding the certificate based on the applicant’s formal education, professional work experience, and

successful completion of a comprehensive examination developed by the American Institute of

Certified Public Accountants.

7

The CGFM program was initiated by the Association of Government Accountants in July 1994. Until

June 30, 1996, the certificate was awarded based on an evaluation of an applicant’s formal education

and professional work experience in government financial management. Since then, certifications have

also required the successful completion of three comprehensive examinations covering (1) the

governmental environment, (2) governmental accounting, financial reporting, and budgeting, and

(3) governmental financial management and control.

Page 3 GAO/AIMD-98-133 Profile of DFAS Financial Managers
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Committee of the Chief Financial Officers Council and the Joint Financial

Management Improvement Program (JFMIP)8

 have made proposals

addressing the recruitment, training, retention, and performance of federal

financial management personnel. In November 1995, JFMIP published the

Framework for Core Competencies for Financial Management Personnel

in the Federal Government,

9

 designed to highlight the knowledge, skills,

and abilities that accountants, budget analysts, and other financial

managers in the federal government should possess or develop to perform

their functions effectively in accordance with the CFO Act. JFMIP stressed

the need for federal government financial managers to be well-equipped to

contribute to financial management activities, such as the execution of

budgets, under increasingly constrained resource caps, and the

preparation, analysis, and interpretation of consolidated financial

statements.

A primary goal in this body of work is to obtain and share with DOD

information on the formal education, professional work experience,

training, and professional certifications of key financial managers in the

department, including the Office of the Under Secretary of Defense

(Comptroller), each of the military services, and the Defense Finance and

Accounting Service.

Objective, Scope, and

Methodology

The objective of this assignment is to provide information on the formal

education, professional work experience, training, and professional

certifications of personnel serving in key financial management positions

in DFAS. We obtained this information from biographies and profile

instruments due to the concerns of DFAS officials regarding the

completeness of personnel databases and personnel files. We worked with

DFAS officials to determine the key financial management positions to be

included in this review. These positions typically included directors,

deputy directors, directorate/division directors, branch chiefs, and CFO

statement staff serving at DFAS headquarters, 5 centers, and 17 operating

locations. As agreed with DFAS, we did not verify the information contained

in the profiles provided by the respondents. A more detailed discussion of

our scope and methodology, including a description of how we obtained

qualifications and work experience data, is in appendix I.

8

JFMIP is a joint and cooperative undertaking of the Office of Management and Budget, General

Accounting Office, Department of the Treasury, and Office of Personnel Management to improve and

coordinate financial management policies and practices throughout the government.

9

Framework for Core Competencies for Financial Management Personnel in the Federal Government,

a joint project of the Human Resources Committee of the Chief Financial Officers Council and the

Joint Financial Management Improvement Program, November 1995.

Page 4 GAO/AIMD-98-133 Profile of DFAS Financial Managers
B-279330 

We performed our audit work from March 1997 through March 1998 in

accordance with generally accepted government auditing standards. The

Director, DFAS provided comments on a draft of this report. These

comments are discussed in the “Agency Comments” section of this report

and are reprinted in appendix VII.

Profile of DFAS

Financial

Management

Executives

Table 1 provides information on the formal education, careers, and

professional certifications of the three DFAS executives included in our

review. All three held both bachelor’s and master’s degrees. The three

executives held bachelor’s degrees in accounting; majors associated with

their master’s degrees included business administration and business

management. The Director had spent 30 years at DOD. The two Deputy

Directors’ DOD careers ranged from 26 to 33 years. A review of biographical

information provided to us showed that the three executives had served in

financial management-related positions during most of their DOD careers.

One of the executives also held several financial management

certifications. The Director was a Certified Public Accountant, a Certified

Government Financial Manager, and a Certified Cost Analyst.

Table 1: Profile of DFAS Financial

Management Executives

Director

Formal education Bachelor’s Degree in Accounting 

Master’s Degree in Business Administration

Career DOD - 30 years

Certifications Certified Public Accountant (CPA)

Certified Government Financial Manager

(CGFM)

Certified Cost Analyst (CCA)

Deputy Director for Accounting

Formal education Bachelor’s Degree in Accounting

Master’s Degree in Business Management

Career DOD - 33 years; other government sector -

2 years

Certifications None

Deputy Director for Finance

Formal education Bachelor’s Degree in Accounting

Master’s Degree in Business Administration

Career DOD - 26 years

Certifications None

Page 5 GAO/AIMD-98-133 Profile of DFAS Financial Managers
B-279330 

Profile of DFAS

Financial Managers

In collaboration with DFAS officials, we identified 577 financial managers

across the agency for this review, of which 265 (or 46 percent) responded

by providing information on their qualifications and experience.

Respondents included

• 17 of 28 managers from DFAS headquarters;

• 163 of 403 managers from the 5 centers; and

• 85 of 146 managers from 16 of 17 OPLOCs.

As shown in table 2, the response rate ranged from 25 percent from the 5

centers’ finance managers to 66 percent from the OPLOCs’ accounting

managers.

Table 2: Response Rates From DFAS

Organizations

DFAS organization

Population

size

Number of

respondents

Percent

responding

Headquarters:

• Accounting 20 12 60

• Finance 8 5 63

5 Centers:

• Directorate 11 7 64

• Accounting 172 101 59

• Finance 220 55 25

17 Operating Locations:

• Directorate 34 22 65

• Accounting 59 39 66

• Finance 53 24 45

Total 577 265 46

Seventeen respondents from DFAS Headquarters included one assistant

deputy director, nine directorate/division directors, and seven CFO

statement staff. The 248 respondents from DFAS centers and OPLOCs

included 29 senior-level directors and principal deputy directors, 26

finance and accounting operations deputy directors and assistant deputy

directors, 89 directorate/division directors, 40 branch chiefs, and 64 CFO

statement staff.

Of the 265 respondents, 6 percent were military officials. The 15 military

officials, including 13 commissioned officers, 1 chief warrant officer, and 1

master sergeant, served mainly as directors, deputy directors, and division

directors at OPLOCs. The 250 civilians most often served as division

Page 6 GAO/AIMD-98-133 Profile of DFAS Financial Managers
B-279330 

directors, branch chiefs, and CFO statement staff at centers, and deputy

directors and division directors at OPLOCs. Table 3 provides a breakout of

the military and civilian respondents by rank and grade, respectively.

Table 3: Number of Military and

Civilian Respondents Military officials Civilians

Rank Number Grade Number

Brigadier General (O-7) 0 Senior Executive 7

Colonel (O-6) 8 15 40

Lieutenant Colonel (O-5) 1 14 34

Major (O-4) 2 13 65

Captain (O-3) 2 12 65

First Lieutenant (O-2) 0 11 14

Second Lieutenant (O-1) 0 9 10

Chief Warrant Officer (CWO-4)

Master Sergeant (E-7) 2 6,7,8 15

Total 15 Total 250

Formal Education Attained Of the 265 respondents, over 80 percent (including 13 of the 15 military

officials and 201 of 250 civilians) reported holding bachelor’s degrees, and

about 37 percent (11 military and 88 civilian respondents) reported

holding master’s degrees.

Of the 214 respondents holding bachelor’s degrees, 10 reported more than

one major. A review of the profiles showed that 151 managers, or about

71 percent of these 214 respondents, reported accounting majors, 49

managers reported one or more other business-related majors, and 23

managers reported majors that were not business related. Table 4 shows

the bachelor’s degree majors reported by the 214 DFAS financial managers.

Table 4: Bachelor’s Degree Majors

Reported by DFAS Financial Managers Number of bachelor’s degree majors

Majors

Military

officials Civilians

Total

degrees by

major

Accounting 4 147 151

Other business 6 44 50

Nonbusiness 4 19 23

Total degrees 14 210 224

Page 7 GAO/AIMD-98-133 Profile of DFAS Financial Managers
B-279330 

Of the 99 respondents holding master’s degrees, 3 reported more than one

major. A review of the profiles showed that, of these 99 managers, 12

reported one or more accounting majors, 70 reported one or more other

business-related majors, and 17 reported nonbusiness-related majors.

Table 5 shows the master’s degree majors reported by the 11 military

officials and 88 civilians.

Table 5: Master’s Degree Majors

Reported by DFAS Financial Managers Number of master’s degree majors

Majors

Military

officials Civilians

Total degrees

by major

Accounting 0 13 13

Other business 12 60 72

Nonbusiness 1 16 17

Total degrees 13 89 102

The key financial managers were also requested to provide information on

the number of accounting-related subjects completed as part of their

formal education. Of the 265 respondents, 252 reported completing one or

more of these subjects, as follows:

• 1-2 subjects: 11 (2 military and 9 civilian respondents),

• 3-5 subjects: 21 (3 military and 18 civilian respondents), and

• 6 or more subjects: 220 (9 military and 211 civilian respondents).

Included in this latter group were 214 managers (or 81 percent of the

respondents) who reported completing both principles of accounting and

intermediate accounting along with at least four other subjects. Based

solely on a review of their formal education, these 214 managers appear to

have met the requirements to serve in federal GS-510 accountant10

positions.

Professional Work

Experience Acquired

A review of the profiles showed that the 15 military officials’ careers

ranged from 11 to 33 years, averaging 23 years, while the 250 civilians’

careers ranged from 1 to 53 years, averaging 23 years. About 85 percent of

the military and civilian respondents had spent most of their careers in

DOD. Also, about 69 percent of all respondents reported that they had

10The typical educational requirement for GS-510 accountants is 24 credit hours in accounting-related

subjects. A person completing principles of accounting and intermediate accounting subjects (typically

two courses of each) and four other subjects would generally meet this hour requirement. A civilian

employee could also be classified as a GS-510 with fewer than 24 hours of accounting-related courses if

a review of his or her formal education, training, and experience so warrants.

Page 8 GAO/AIMD-98-133 Profile of DFAS Financial Managers
B-279330 

performed several of the financial management-related functions included

in our review.

Figures 1 and 2 show the average number of years of work experience by

rank for the military officials and by grade for the civilians, respectively.

Figure 1: Professional Work

Experience Reported by DFAS

Financial Managers—Military Officials

Average number of years

0

5

10

15

20

25

30

35

Colonel (8)

Lieutenant Colonel(1)

Major (2)

Captain (2)

Chief Warrant Officer(1)

Master Sergeant (1)

Managers by rank (number at each rank)

Average years in other public/private sector

Average years in DOD

Page 9 GAO/AIMD-98-133 Profile of DFAS Financial Managers
B-279330 

Figure 2: Professional Work

Experience Reported by DFAS

Financial Managers—Civilians

Average number of years

0

5

10

15

20

25

30

35

Senior Executives (7)

GS-15 (40)

GS-14 (34)

GS-13 (65)

GS-12 (65)

GS-11 (14)

GS-9 (10)

GS-6 through 8 (15)

Managers by grade (number at each grade)

Average years in other public/private sector

Average years in DOD

In collaboration with DFAS officials, we identified five functions which are

often performed by personnel serving in key financial management

positions, including:

• financial statement preparation—preparing annual financial statements

and footnotes;

• financial reporting/accounting policy—preparing financial reports and

consulting on the application of accounting policy;

• financial analysis—performing tasks associated with cost accounting,

business process improvements, budgeting, cash flow analysis, cost

analysis, revenue and expenditure forecasting, and other analysis of

financial position and operations;

Page 10 GAO/AIMD-98-133 Profile of DFAS Financial Managers
B-279330 

• accounting operations—recording and reporting accounting transactions;

and

• accounting systems development and maintenance—performing tasks

associated with the functional design and maintenance of accounting and

finance systems.

Eight military and 174 civilian respondents (or about 69 percent of the 265

respondents) reported that they had performed three or more of these

functions during their careers. Figures 3 and 4 show the number of

military officials and civilians who had performed each function at

sometime during their careers, and the average number of years of

experience in each function. For example, figure 3 shows that 13 of the 15

military officials had performed financial reporting tasks for an average of

13 years.

Figure 3: Experience in Financial

Management Functions Reported by

DFAS Financial Managers—Military

Officials

Number of managers performing function (total = 15 respondents)

0

2

4

6

8

10

12

14

16

Financial statement preparation (12 years)

Financial reporting/acctg

policy (13 years)

Financial analysis (13 years)

Accounting operations (10 years)

Accounting systems (5 years)

Average years performing functions

7

13

8

12

6

Page 11 GAO/AIMD-98-133 Profile of DFAS Financial Managers
B-279330 

Figure 4: Experience in Financial

Management Functions Reported by

DFAS Financial Managers—Civilians

Number of managers performing function (total = 250 respondents)

0

25

50

75

100

125

150

175

200

225

250

Financial statement

preparation (7 years)

Financial reporting/acctg

policy (9 years)

Financial analysis (8 years)

Accounting operations (10 years)

Accounting systems (6 years)

Average years performing functions

183 179

144

198

131

Training Completed During

1995 and 1996

During 1995 and 1996, about 80 percent of the military and 85 percent of

the civilian respondents reported completing some training in one or more

of the categories included in our review. Of the 224 respondents (12

military and 212 civilian respondents) receiving training, (1) about

88 percent listed general topics, such as computers and supervision, as

examples of the training they had completed, (2) about 39 percent

reported completing training in financial-related topics, and (3) about

50 percent reported completing training in accounting-related topics, such

as accounting standards and financial reporting. Also, a review of the

profiles showed that 92 managers completed only general training and 41

other managers had not completed any training. Therefore, over

50 percent of the 265 respondents had not received any accounting or

financial training for those 2 years.

Figure 5 shows the training reported as being completed by the 265

respondents during the 2-year period.

Page 12 GAO/AIMD-98-133 Profile of DFAS Financial Managers
B-279330 

Figure 5: Training Reported by DFAS

Financial Managers as Being

Completed During 1995 and 1996

Number of managers (total = 265 respondents)

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

Accounting training only

Accounting and

financial training

Accounting and

general training

Accounting, financial, and general training

Financial training only

Financial and general training

General training only

No training

Categories of training

20

7

25

59

1

20

92

41

A review of the profiles showed

• total receiving accounting-related training: 111 (5 military and 106 civilian

respondents),

• total receiving financial-related training: 87 (6 military and 81 civilian

respondents),

• total receiving training in general topics: 196 (12 military and 184 civilian

respondents), and

• total not receiving training: 41 (3 military and 38 civilian respondents).

Professional Certifications

Held

About 31 percent of the 265 respondents reported holding one or more

professional certifications. A review of the profiles showed that, of these

83 managers,

• 32 were CPAs (1 military and 31 civilian respondents),

Page 13 GAO/AIMD-98-133 Profile of DFAS Financial Managers
B-279330 

• 64 were CGFMs (3 military and 61 civilian respondents),

• 8 civilians held other financial management certifications, including the

Certified Management Accountant and Certified Internal Auditor, and

• 6 civilians reported nonfinancial management certifications.

Of the 182 managers that did not hold any professional certifications, 11

were military officials and 171 were civilians. Figure 6 shows the types of

certifications reported by the 265 DFAS financial managers.

Figure 6: Professional Certifications Reported by DFAS Financial Managers

Number of managers (total = 265 respondents)

0

20

40

60

80

100

120

140

160

180

200

220

240

260

280

CPA

only

CPA

and

CGFM

CPA

and

OFMC

CPA,

CGFM,

and

OFMC

CPA,

CGFM,

and

NFMC

CGFM

only

CGFM

and

OFMC

CGFM

and

NFMC

OFMC

only

NFMC

only

None

Types of certifications held

13 15

1 2 1

41

3 2 2 3

182

Legend:

CPA: Certified Public Accountant

CGFM: Certified Government Financial Manager

OFMC: Other financial management certifications

NFMC: Nonfinancial management certifications

Page 14 GAO/AIMD-98-133 Profile of DFAS Financial Managers
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Appendixes II through VI provide the formal education, professional work

experience, training, and professional certification data for the 15 military

officials and 250 civilians by their respective organizations, including:

• DFAS headquarters in appendix II;

• 5 centers in appendix III;

• 16 of the 17 OPLOCs in appendix IV;

• accounting operations at DFAS headquarters, centers, and OPLOCs in

appendix V; and,

• finance operations at DFAS headquarters, centers, and OPLOCs in appendix

VI.

Agency Comments In commenting on a draft of this report, DFAS generally agreed with the

contents and stated that the information will provide a useful benchmark

in setting goals for the agency’s career development programs. The DFAS

comments are reprinted in appendix VII.

We are sending copies of this report to the Chairmen and Ranking

Minority Members of the Senate Committee on Governmental Affairs; the

House Committee on Government Reform and Oversight; and the

Subcommittee on Government Management, Information and Technology

of the House Committee on Government Reform and Oversight; the

Secretary of Defense; and the Director of the Office of Management and

Budget. Copies will also be made available to others upon request.

If you have any questions about this report, please contact me at

(202) 512-9095. Major contributors to this report are listed in appendix

VIII.

Sincerely yours,

Lisa G. Jacobson

Director, Defense Audits

Page 15 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Contents

Letter 1

Appendix I 

Scope and

Methodology

22

Appendix II 

Profiles of

Respondents From

DFAS Headquarters

31

Appendix III 

Profiles of

Respondents From

DFAS Centers

36

Appendix IV 

Profiles of

Respondents From

DFAS Operating

Locations (OPLOCs)

45

Appendix V 

Profiles of

Respondents Involved

in DFAS Accounting

Operations

54

Page 16 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Contents

Appendix VI 

Profiles of

Respondents Involved

in DFAS Finance

Operations

62

Appendix VII 

Comments From the

Defense Finance and

Accounting Service

70

Appendix VIII 

Major Contributors to

This Report

71

Tables Table 1: Profile of DFAS Financial Management Executives 5

Table 2: Response Rates From DFAS Organizations 6

Table 3: Number of Military and Civilian Respondents 7

Table 4: Bachelor’s Degree Majors Reported by DFAS Financial

Managers

7

Table 5: Master’s Degree Majors Reported by DFAS Financial

Managers

8

Table I.1: DFAS Organizations and Key Financial Managers

Included in This Review

22

Table II.1: Number of Civilian Respondents 31

Table II.2: Bachelor’s Degree Majors Reported by DFAS

Headquarters Financial Managers—Civilians

31

Table II.3: Master’s Degree Majors Reported by DFAS

Headquarters Financial Managers—Civilians

31

Table III.1: Population and Respondents From DFAS Centers 36

Table III.2: Number of Military and Civilian Respondents 37

Table III.3: Bachelor’s Degree Majors Reported by DFAS Center

Financial Managers

37

Table III.4: Master’s Degree Majors Reported by DFAS Center

Financial Managers

37

Table IV.1: Population and Respondents From DFAS Operating

Locations

45

Page 17 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Contents

Table IV.2: Number of Military and Civilian Respondents 46

Table IV.3: Bachelor’s Degree Majors Reported by DFAS

Operating Location Financial Managers

46

Table IV.4: Master’s Degree Majors Reported by DFAS Operating

Location Financial Managers

46

Table V.1: Number of Military and Civilian Respondents 54

Table V.2: Bachelor’s Degree Majors Reported by Managers of

DFAS Accounting Operations

54

Table V.3: Master’s Degree Majors Reported by Managers of

DFAS Accounting Operations

55

Table VI.1: Number of Military and Civilian Respondents 62

Table VI.2: Bachelor’s Degree Majors Reported by Managers of

DFAS Finance Operations

62

Table VI.3: Master’s Degree Majors Reported by Managers of

DFAS Finance Operations

63

Figures Figure 1: Professional Work Experience Reported by DFAS

Financial Managers—Military Officials

9

Figure 2: Professional Work Experience Reported by DFAS

Financial Managers—Civilians

10

Figure 3: Experience in Financial Management Functions

Reported by DFAS Financial Managers—Military Officials

11

Figure 4: Experience in Financial Management Functions

Reported by DFAS Financial Managers—Civilians

12

Figure 5: Training Reported by DFAS Financial Managers as

Being Completed During 1995 and 1996

13

Figure 6: Professional Certifications Reported by DFAS Financial

Managers

14

Figure I.1: Profile Instrument Used to Collect Qualification and

Experience Information on DFAS Financial Managers

25

Figure II.1: Professional Work Experience Reported by DFAS

Headquarters Financial Managers—Civilians

32

Figure II.2: Experience in Financial Management Functions

Reported by DFAS Headquarters Financial Managers—Civilians

33

Figure II.3: Training Reported by DFAS Headquarters Financial

Managers as Being Completed During 1995 and 1996

34

Figure II.4: Professional Certifications Reported by DFAS

Headquarters Financial Managers

35

Figure III.1: Professional Work Experience Reported by DFAS

Center Financial Managers—Military Officials

39

Page 18 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Contents

Figure III.2: Professional Work Experience Reported by DFAS

Center Financial Managers—Civilians

40

Figure III.3: Experience in Financial Management Functions

Reported by DFAS Center Financial Managers—Military Officials

41

Figure III.4: Experience in Financial Management Functions

Reported by DFAS Center Financial Managers—Civilians

42

Figure III.5: Training Reported by DFAS Center Financial

Managers as Being Completed During 1995 and 1996

43

Figure III.6: Professional Certifications Reported by DFAS Center

Financial Managers

44

Figure IV.1: Professional Work Experience Reported by DFAS

Operating Location Financial Managers—Military Officials

48

Figure IV.2: Professional Work Experience Reported by DFAS

Operating Location Financial Managers—Civilians

49

Figure IV.3: Experience in Financial Management Functions

Reported by DFAS Operating Location Financial

Managers—Military Officials

50

Figure IV.4: Experience in Financial Management Functions

Reported by DFAS Operating Location Financial

Managers—Civilians

51

Figure IV.5: Training Reported by DFAS Operating Location

Financial Managers as Being Completed During 1995 and 1996

52

Figure IV.6: Professional Certifications Reported by DFAS

Operating Location Financial Managers

53

Figure V.1: Professional Work Experience Reported by Managers

of DFAS Accounting Operations—Military Officials

56

Figure V.2: Professional Work Experience Reported by Managers

of DFAS Accounting Operations—Civilians

57

Figure V.3: Experience in Financial Management Functions

Reported by Managers of DFAS Accounting Operations—Military

Officials

58

Figure V.4: Experience in Financial Management Functions

Reported by Managers of DFAS Accounting

Operations—Civilians

59

Figure V.5: Training Reported by Managers of DFAS Accounting

Operations as Being Completed During 1995 and 1996

60

Figure V.6: Professional Certifications Reported by Managers of

DFAS Accounting Operations

61

Figure VI.1: Professional Work Experience Reported by Managers

of DFAS Finance Operations—Military Officials

64

Page 19 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Contents

Figure VI.2: Professional Work Experience Reported by Managers

of DFAS Finance Operations—Civilians

65

Figure VI.3: Experience in Financial Management Functions

Reported by Managers of DFAS Finance Operations—Military

Officials

66

Figure VI.4: Experience in Financial Management Functions

Reported by Managers of DFAS Finance Operations—Civilians

67

Figure VI.5: Training Reported by Managers of DFAS Finance

Operations as Being Completed During 1995 and 1996

68

Figure VI.6: Professional Certifications Reported by Managers of

DFAS Finance Operations

69

Abbreviations

CFO Chief Financial Officer

CGFM Certified Government Financial Manager

CPA Certified Public Accountant

CWO Chief Warrant Officer

DAO Defense Accounting Office

DFAS Defense Finance and Accounting Service

DOD Department of Defense

FMFIA Federal Managers’ Financial Integrity Act

GAO General Accounting Office

GMRA Government Management Reform Act

GPRA Government Performance and Results Act

GS General Schedule

JFMIP Joint Financial Management Improvement Program

NFMC Nonfinancial Management Certifications

OFMC Other Financial Management Certifications

OPLOC Operating Location

Page 20 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Page 21 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix I 

Scope and Methodology

In collaboration with DFAS officials, we identified senior executives and

financial managers to be included in this review as those serving in key

positions throughout DFAS. The three senior executives included the

Director, the Deputy Director for Accounting, and the Deputy Director for

Finance. The 577 key financial management positions selected for this

review included:

• 28 from DFAS headquarters involved in accounting/CFO statement

operations and finance operations;

• 403 from the 5 centers, including center directors and deputy directors,

and managers involved in accounting/CFO statement operations and

finance operations; and

• 146 from the 17 operating locations (OPLOCs), including OPLOC directors and

deputy directors, and managers involved in accounting operations and

finance operations.

In addition to the 3 senior executives, 265 financial managers located at 22

of the 23 organizations responded to this review. The 265 respondents

included 17 DFAS headquarters managers, 163 center managers, and 85

managers from OPLOCs.

Table I.1 identifies the DFAS organizations and information on the key

financial managers included in this review.

Table I.1: DFAS Organizations and Key

Financial Managers Included in This

Review

DFAS Headquarters

17 of the 28 managers responding included 1 assistant deputy director, 9

directorate/division directors, and 7 CFO statement staff.

5 DFAS Centers

163 of the 403 managers responding included 7 directors/principal deputy directors, 8

deputy directors/assistant deputy directors, 44 directorate/division directors, 40 branch

chiefs, and 64 CFO statement staff.

17 DFAS Operating Locations

85 of the 146 managers from 16 of the 17 OPLOCs responding included 14 directors, 8

principal deputy directors, 18 deputy directors, and 45 division directors.

In an August 1988 report,1 GAO proposed a framework for evaluating the

quality of the federal workforce over time. Quantifiable measures

identified in that report include specific knowledge, skills, and abilities.

Using this report and the JFMIP study on core competencies, and in

collaboration with DOD representatives, we identified four indicators to

1

Federal Workforce: A Framework for Studying Its Quality Over Time (GAO/PEMD-88-27, August 4,

1988).

Page 22 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix I 

Scope and Methodology

measure the attributes that key financial managers can bring to their

positions. These indicators include formal education, professional work

experience, training, and professional certifications. These attributes are

being used to measure the qualifications and experience of key financial

managers in the five DOD organizations included in our reviews.

We then worked with DFAS officials in developing a data collection

instrument to gather the following types of information under each

indicator:

• Formal education: degrees attained, academic majors, and specific

accounting and financial-related courses completed.

• Professional work experience: (1) number of years worked in current

position, years at DOD, years in other government agencies, and years in

the private sector and (2) experience in five specific financial

management-related functions.

• Training (referred to as continuing professional education in the profile

instrument): for the period of 1995-1996,2

 specific subjects completed

related to accounting, other financial-related topics, and general topics.

• Professional certifications: CPA, CGFM, other financial certifications, and

nonfinancial management certifications held.

For the three DFAS executives, we obtained information on their formal

education, careers, and professional certifications from biographies and

profile instruments provided by these officials. For all other individuals,

we collected information on the four indicators using profile instruments.

Due to DFAS officials’ concerns over their completeness, we did not use

personnel files and databases. This procedure is being used for collecting

qualification and experience information from all DOD organizations

included in this series of assignments.

Since DFAS chose to maintain the anonymity of its respondents, our DFAS

liaisons sent profile instruments to the three DFAS executives and other key

financial managers at DFAS Headquarters, the 5 centers, and the 17 OPLOCs.

The liaisons conducted additional follow-up efforts to contact those

financial managers who did not initially respond as well as those

respondents whose profile instruments were returned with incomplete

information. Through these efforts, we received complete profile

information from the three DFAS executives and 46 percent of the key

financial managers identified for this review. Figure I.1 contains the profile

2

For DFAS’s own analysis, the instrument requested training for an additional year—1997.

Page 23 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix I 

Scope and Methodology

instrument we used to obtain personnel qualification and experience

information from the key financial managers.

As agreed with DFAS, we did not attempt to verify the information

contained in the profiles we received. However, as noted above, for

incomplete instruments, the DFAS liaisons conducted follow-up efforts and

obtained the missing information.

We conducted our work from March 1997 through March 1998 in

accordance with generally accepted government auditing standards.

Page 24 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix I 

Scope and Methodology

Figure I.1: Profile Instrument Used to Collect Qualification and Experience Information on DFAS Financial Managers

Page 25 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix I 

Scope and Methodology

Page 26 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix I 

Scope and Methodology

Page 27 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix I 

Scope and Methodology

Page 28 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix I 

Scope and Methodology

Page 29 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix I 

Scope and Methodology

Page 30 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix II 

Profiles of Respondents From DFAS

Headquarters

We included 28 key financial managers from DFAS Headquarters, 17 of

whom provided information on their qualifications and experience. This

population included one assistant deputy director, nine

directorate/division directors, and seven CFO statement staff. Table II.1

shows the civilian composition of these managers, by grade.

Table II.1: Number of Civilian

Respondents Civilians

Grade Number

Senior Executive 1

15 9

14 5

13 2

Total 17

Formal Education

Attained

As shown in table II.2, all 17 respondents held bachelor’s degrees, with 1

reporting more than one major. Thirteen of the 17 managers majored in

accounting, while 5 managers reported other business-related majors.

Table II.2: Bachelor’s Degree Majors

Reported by DFAS Headquarters

Financial Managers—Civilians Majors

Number of bachelor’s

degree majors

Accounting 13

Other business 5

Nonbusiness 0

Total degrees 18

As shown in table II.3, 6 respondents also held master’s degrees. One

manager held a master’s degree in accounting and 5 managers listed other

business-related majors.

Table II.3: Master’s Degree Majors

Reported by DFAS Headquarters

Financial Managers—Civilians Majors

Number of master’s

degree majors

Accounting 1

Other business 5

Nonbusiness 0

Total degrees 6

All 17 managers reported completing 7 or more courses in

accounting-related subjects. Based solely on a review of their formal

Page 31 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix II 

Profiles of Respondents From DFAS

Headquarters

education, the 17 respondents appear to have met the requirements to

serve in GS-510 accountant positions.

Professional Work

Experience Acquired

A review of the profiles showed that the average number of years of

professional work experience was 28 years for the 17 civilians, with a

range of 15 to 37 years. With one exception, the respondents had spent

most of their careers in DOD. Figure II.1 shows the work experience by

grade for the civilians.

Figure II.1: Professional Work

Experience Reported by DFAS

Headquarters Financial

Managers—Civilians

Average number of years

0

5

10

15

20

25

30

35

SES (1) GS-15

(9)

GS-14

(5)

GS-13

(2)

Managers by grade (number at each grade)

Average years in other public/private sector

Average years in DOD

Figure II.2 shows the number of respondents who indicated that they had

performed each financial management function previously outlined at

sometime during their careers, and the average number of years of

experience in each function. A review of the profiles also showed that 15

of the 17 civilians had performed three or more of these functions.

Page 32 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix II 

Profiles of Respondents From DFAS

Headquarters

Figure II.2: Experience in Financial

Management Functions Reported by

DFAS Headquarters Financial

Managers—Civilians

Number of managers performing function (total = 17 respondents)

0

5

10

15

20

Financial statement

preparation (8 years)

Financial reporting/acctg

policy (10 years)

Financial analysis (10 years)

Accounting operations (8 years)

Accounting systems (9 years)

Average years performing functions

14 14

11

14 14

Training Completed

During 1995 and 1996

Figure II.3 shows the training reported by the 17 respondents as being

completed during 1995 and 1996.

Page 33 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix II 

Profiles of Respondents From DFAS

Headquarters

Figure II.3: Training Reported by DFAS

Headquarters Financial Managers as

Being Completed During 1995 and

1996

Number of managers (total = 17 respondents)

0

5

10

15

20

Accounting and

general training

Accounting, financial, and general training

General training only

No training

Categories of training

2

6

2

7

A review of the profiles showed

• 8 respondents receiving accounting-related training,

• 6 respondents receiving financial-related training,

• 10 respondents receiving training in general topics, and

• 7 respondents receiving no training.

Professional

Certifications Held

A review of the profiles showed that 2 respondents were CGFMs; the

remaining 15 managers did not hold professional certifications.

Figure II.4 shows the types of professional certifications reported by the

DFAS Headquarters financial managers.

Page 34 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix II 

Profiles of Respondents From DFAS

Headquarters

Figure II.4: Professional Certifications

Reported by DFAS Headquarters

Financial Managers

Number of managers (total = 17 respondents)

0

5

10

15

20

CGFM

only

None

Types of certifications held

2

15

CGFM: Certified Financial Manager

Page 35 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix III 

Profiles of Respondents From DFAS Centers

The five DFAS centers included in this review are shown below:

• Cleveland,

• Columbus,

• Denver,

• Indianapolis, and

• Kansas City.

Surveys were distributed to 403 financial managers; 163 responded,

representing all five centers. From the five centers’ directorate level, 7 of

the 11 key managers responded. Table III.1 shows the population and

respondents from each center’s accounting and finance operations unit.

Table III.1: Population and

Respondents From DFAS Centers Center and operation Population Respondents

Cleveland

• Accounting 57 38

• Finance 18 1

Columbus

• Accounting 27 15

• Finance 25 4

Denver

• Accounting 39 17

• Finance 28 3

Indianapolis

• Accounting 30 18

• Finance 104 41

Kansas City

• Accounting 19 13

• Finance 45 6

Five center totals

• Accounting 172 101

• Finance 220 55

The 163 respondents included 7 center directors/principal deputy

directors, 8 deputy directors/assistant deputy directors, 44

directorate/division directors, 40 branch chiefs, and 64 CFO statement staff.

Table III.2 shows the military and civilian composition of the respondents,

by rank and grade, respectively.

Page 36 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix III 

Profiles of Respondents From DFAS Centers

Table III.2: Number of Military and

Civilian Respondents Military officials Civilians

Rank Number Grade Number

Brigadier General (O-7) 0 Senior Executive 6

Colonel (O-6) 2 15 15

Lieutenant Colonel (O-5) 0 14 14

Major (O-4) 0 13 34

Captain (O-3) 1 12 54

First Lieutenant (O-2) 0 11 14

Second Lieutenant (O-1) 0 9 10

Chief Warrant Officer (CWO-4) 1 6,7,8 12

Total 4 Total 159

Formal Education

Attained

As shown in table III.3, 125 of the 163 respondents held bachelor’s degrees,

with 7 reporting more than one major. The major for 91 of these managers

was accounting, while 22 managers reported one or more other

business-related majors.

Table III.3: Bachelor’s Degree Majors

Reported by DFAS Center Financial

Managers

Number of bachelor’s degree majors

Majors

Military

officials Civilians

Total degrees

by major

Accounting 0 91 91

Other business 2 21 23

Nonbusiness 1 17 18

Total degrees 3 129 132

As shown in table III.4, 50 respondents also held master’s degrees, with 1

reporting more than one major. Nine managers held one or more master’s

degrees in accounting or accounting-related majors, while 29 managers

reported other business-related majors.

Table III.4: Master’s Degree Majors

Reported by DFAS Center Financial

Managers

Number of master’s degree majors

Majors

Military

officials Civilians

Total degrees

by major

Accounting 0 10 10

Other business 2 27 29

Nonbusiness 0 12 12

Total degrees 2 49 51

Page 37 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix III 

Profiles of Respondents From DFAS Centers

One hundred fifty-one of the 163 respondents reported completing one or

more courses in accounting-related subjects, as follows:

• 1-2 subjects: 5 civilians,

• 3-5 subjects: 14 (2 military and 12 civilian respondents), and

• 6 or more subjects: 132 (1 military and 131 civilian respondents).

Based solely on a review of their formal education, 1 military official and

126 civilians in the latter group appear to have met the requirements to

serve in GS-510 accountant positions.

Professional Work

Experience Acquired

A review of the profiles showed that the average number of years of

professional work experience was 21 years for the 4 military officials, with

a range of 11 to 27 years, and 21 years for the 159 civilians, with a range of

1 to 53 years. Approximately 80 percent of the respondents had spent most

of their careers in DOD. Figures III.1 and III.2 show the work experience by

rank for the military officials and by grade for the civilians, respectively.

Page 38 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix III 

Profiles of Respondents From DFAS Centers

Figure III.1: Professional Work

Experience Reported by DFAS Center

Financial Managers—Military Officials

Average number of years

0

5

10

15

20

25

30

35

Colonel

(2)

Captain

(1)

Chief

Warrant

Officer

(1)

Managers by rank (number at each rank)

Average years in other public/private sector

Average years in DOD

Page 39 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix III 

Profiles of Respondents From DFAS Centers

Figure III.2: Professional Work

Experience Reported by DFAS Center

Financial Managers—Civilians

Average number of years

0

5

10

15

20

25

30

35

Senior Executives (6)

GS-15 (15)

GS-14 (14)

GS-13 (34)

GS-12 (54)

GS-11 (14)

GS-9 (10)

GS-6 through 8 (12)

Managers by grade (number at each grade)

Average years in other public/private sector

Average years in DOD

Figures III.3 and III.4 show the number of military and civilian respondents

who indicated that they had performed each financial management

function previously outlined at sometime during their careers, and the

average number of years of experience in each function. A review of the

profiles also showed that 2 military officials and 105 civilians had

performed three or more of these functions.

Page 40 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix III 

Profiles of Respondents From DFAS Centers

Figure III.3: Experience in Financial

Management Functions Reported by

DFAS Center Financial

Managers—Military Officials

Number of managers performing function (total = 4 respondents)

0

1

2

3

4

5

Financial statement preparation (12 years)

Financial reporting/acctg

policy (12 years)

Financial analysis (2 years)

Accounting operations (20 years)

Accounting systems (2 years)

Average years performing functions

2

4

2

1

2

Page 41 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix III 

Profiles of Respondents From DFAS Centers

Figure III.4: Experience in Financial

Management Functions Reported by

DFAS Center Financial

Managers—Civilians

Number of managers performing function (total = 159 respondents)

0

20

40

60

80

100

120

140

160

Financial statement

preparation (6 years)

Financial reporting/acctg

policy (8 years)

Financial analysis (8 years)

Accounting operations (9 years)

Accounting systems (5 years)

Average years performing functions

120

108

85

120

75

Training Completed

During 1995 and 1996

Figure III.5 shows the training reported by the 163 respondents as being

completed during 1995 and 1996.

Page 42 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix III 

Profiles of Respondents From DFAS Centers

Figure III.5: Training Reported by

DFAS Center Financial Managers as

Being Completed During 1995 and

1996

Number of managers (total = 163 respondents)

0

20

40

60

80

100

120

140

160

180

Accounting training only

Accounting and

financial training

Accounting and

general training

Accounting, financial, and general training

Financial training only

Financial and general training

General training only

No training

Categories of training

18

7

18

29

1

11

56

23

A review of the profiles showed

• total receiving accounting-related training: 72 civilians,

• total receiving financial-related training: 48 civilians,

• total receiving training in general topics: 114 (2 military and 112 civilian

respondents), and

• total not receiving training: 23 (2 military and 21 civilian respondents).

Professional

Certifications Held

A review of the profiles showed that, of the 56 managers reporting one or

more professional certifications,

• 25 civilians were CPAs,

• 43 civilians were CGFMs,

• 5 civilians held other financial management certifications, and

• 4 civilians held nonfinancial management certifications.

Page 43 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix III 

Profiles of Respondents From DFAS Centers

Of the 107 managers that did not hold any professional certifications, 4

were military officials and 103 were civilians. Figure III.6 shows the types

of professional certifications reported by the DFAS center financial

managers.

Figure III.6: Professional Certifications Reported by DFAS Center Financial Managers

Number of managers (total = 163 respondents)

0

20

40

60

80

100

120

140

160

180

CPA

only

CPA

and

CGFM

CPA

and

OFMC

CPA,

CGFM,

and

OFMC

CPA,

CGFM,

and

NFMC

CGFM

only

CGFM

and

OFMC

CGFM

and

NFMC

OFMC

only

NFMC

only

None

Types of certifications held

10 11

1 2 1

26

1 2 1 1

107

Legend:

CPA: Certified Public Accountant

CGFM: Certified Government Financial Manager

OFMC: Other financial management certifications

NFMC: Nonfinancial management certifications

Page 44 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix IV 

Profiles of Respondents From DFAS

Operating Locations (OPLOCs)

Eighty-five of 146 managers (representing 16 of the 17 OPLOCs) provided

information on their qualifications and experience, including 14 directors,

8 principal deputy directors, 18 deputy directors, and 45 division directors.

Table IV.1 shows the population and respondents from the accounting and

finance organizations at each OPLOC.

Table IV.1: Population and

Respondents From DFAS Operating

Locations

Accounting operations Finance operations

OPLOCs (State) Population Respondents Population Respondents

Charleston (SC) 4 3 4 3

Dayton (OH) 3 0 3 0

Honolulu (HI) 3 0 3 0

Lawton (OK) 4 4 3 2

Limestone (ME) 3 2 3 2

Norfolk (VA) 4 2 4 2

Oakland (CA) 3 3 3 3

Omaha (NE) 3 2 3 1

Orlando (FL) 3 2 3 2

Pensacola (FL) 4 1 3 1

Rock Island (IL) 3 3 3 0

Rome (NY) 4 4 4 2

San Antonio (TX) 3 2 3 0

San Bernardino (CA) 3 3 3 3

San Diego (CA) 4 1 3 1

Seaside (CA) 3 3 2 2

St. Louis (MO) 5 4 3 0

Total 59 39 53 24

Table IV.2 shows the military and civilian composition of the respondents

by rank and grade, respectively.

Page 45 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix IV 

Profiles of Respondents From DFAS

Operating Locations (OPLOCs)

Table IV.2: Number of Military and

Civilian Respondents Military officials Civilians

Rank Number Grade Number

Brigadier General (O-7) 0 Senior Executive 0

Colonel (O-6) 6 15 16

Lieutenant Colonel (O-5) 1 14 15

Major (O-4) 2 13 29

Captain (O-3) 1 12 11

First Lieutenant (O-2) 0 11 0

Second Lieutenant (O-1) 0 9 0

Master Sergeant (E-7) 1 8 3

Total 11 Total 74

Formal Education

Attained

As shown in table IV.3, 72 respondents held bachelor’s degrees, with 2

reporting more than one major. The major for 47 of these managers was

accounting, while 22 managers reported other business-related majors.

Table IV.3: Bachelor’s Degree Majors

Reported by DFAS Operating Location

Financial Managers

Number of bachelor’s degree majors

Majors

Military

officials Civilians

Total degrees

by major

Accounting 4 43 47

Other business 4 18 22

Nonbusiness 3 2 5

Total degrees 11 63 74

As shown in table IV.4, 43 respondents also held master’s degrees, with 2

reporting more than one major. The major for 2 of these managers was

accounting, while 36 managers reported one or more other

business-related majors.

Table IV.4: Master’s Degree Majors

Reported by DFAS Operating Location

Financial Managers

Number of master’s degree majors

Majors

Military

officials Civilians

Total degrees

by major

Accounting 0 2 2

Other business 10 28 38

Nonbusiness 1 4 5

Total degrees 11 34 45

Page 46 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix IV 

Profiles of Respondents From DFAS

Operating Locations (OPLOCs)

Eighty-four of the 85 respondents reported completing one or more

courses in accounting-related subjects, as follows:

• 1-2 subjects: 6 (2 military and 4 civilian respondents),

• 3-5 subjects: 7 (1 military and 6 civilian respondents), and

• 6 or more subjects: 71 (8 military and 63 civilian respondents).

Based solely on a review of their formal education, the 8 military officials

and 62 civilians in the latter group appear to have met the requirements to

serve in GS-510 accountant positions.

Professional Work

Experience Acquired

A review of the profiles showed that the average number of years of

professional work experience was 24 years for the 11 military officials,

with a range of 12 to 33 years, and 25 years for the 74 civilians, with a

range of 9 to 38 years. With few exceptions, the respondents had spent

most of their careers in DOD. Figures IV.1 and IV.2 show the average

number of years of work experience by rank for the military officials and

by grade for the civilians, respectively.

Page 47 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix IV 

Profiles of Respondents From DFAS

Operating Locations (OPLOCs)

Figure IV.1: Professional Work

Experience Reported by DFAS

Operating Location Financial

Managers—Military Officials

Average number of years

0

5

10

15

20

25

30

35

Colonel (6)

Lieutenant Colonel(1)

Major (2)

Captain (1)

Master Sergeant (1)

Managers by rank (number at each rank)

Average years in other public/private sector

Average years in DOD

Page 48 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix IV 

Profiles of Respondents From DFAS

Operating Locations (OPLOCs)

Figure IV.2: Professional Work

Experience Reported by DFAS

Operating Location Financial

Managers—Civilians

Average number of years

0

5

10

15

20

25

30

35

GS-15

(16)

GS-14

(15)

GS-13

(29)

GS-12

(11)

GS-8 (3)

Managers by grade (number at each grade)

Average years in other public/private sector

Average years in DOD

Figures IV.3 and IV.4 show the number of military and civilian respondents

who indicated that they had performed each financial management

function previously outlined at sometime during their careers, and the

average number of years of experience in each function. A review of the

profiles also showed that 6 military officials and 54 civilians had

performed three or more of these functions.

Page 49 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix IV 

Profiles of Respondents From DFAS

Operating Locations (OPLOCs)

Figure IV.3: Experience in Financial

Management Functions Reported by

DFAS Operating Location Financial

Managers—Military Officials

Number of managers performing function (total = 11 respondents)

0

2

4

6

8

10

12

Financial statement preparation (13 years)

Financial reporting/acctg

policy (14 years)

Financial analysis (17 years)

Accounting operations (9 years)

Accounting systems (4 years)

Average years performing functions

5

9

6

11

6

Page 50 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix IV 

Profiles of Respondents From DFAS

Operating Locations (OPLOCs)

Figure IV.4: Experience in Financial

Management Functions Reported by

DFAS Operating Location Financial

Managers—Civilians

Number of managers performing function (total = 74 respondents)

0

10

20

30

40

50

60

70

80

Financial statement preparation (10 years)

Financial reporting/acctg

policy (11 years)

Financial analysis (9 years)

Accounting operations (14 years)

Accounting systems (5 years)

Average years performing functions

48

57

49

64

42

Training Completed

During 1995 and 1996

Figure IV.5 shows the training reported by the 85 respondents as being

completed during 1995 and 1996.

Page 51 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix IV 

Profiles of Respondents From DFAS

Operating Locations (OPLOCs)

Figure IV.5: Training Reported by

DFAS Operating Location Financial

Managers as Being Completed During

1995 and 1996

Number of managers (total = 85 respondents)

0

10

20

30

40

50

60

70

80

90

Accounting training only

Accounting and

general training

Accounting, financial, and general training

Financial and general training

General training only

No training

Categories of training

2

5

24

9

34

11

A review of the profiles showed

• total receiving accounting-related training: 31 (5 military and 26 civilian

respondents),

• total receiving financial-related training: 33 (6 military and 27 civilian

respondents),

• total receiving training in general topics: 72 (10 military and 62 civilian

respondents), and

• total not receiving training: 11 (1 military and 10 civilian respondents).

Professional

Certifications Held

A review of the profiles showed that, of the 25 managers reporting one or

more professional certifications,

• 7 were CPAs (1 military and 6 civilian respondents),

• 19 were CGFMs (3 military and 16 civilian respondents),

Page 52 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix IV 

Profiles of Respondents From DFAS

Operating Locations (OPLOCs)

• 3 civilians held other financial management certifications, and

• 2 civilians held nonfinancial management certifications.

Of the 60 managers that did not hold professional certifications, 7 were

military officials and 53 were civilians. Figure IV.6 shows the types of

professional certifications reported by the DFAS OPLOC financial managers.

Figure IV.6: Professional Certifications

Reported by DFAS Operating Location

Financial Managers

Number of managers (total = 85 respondents)

0

10

20

30

40

50

60

70

80

90

CPA

only

CPA

and

CGFM

CGFM

only

CGFM

and

OFMC

OFMC

only

NFMC

only

None

Types of certifications held

3 4

13

2 1 2

60

Legend:

CPA: Certified Public Accountant

CGFM: Certified Government Financial Manager

OFMC: Other financial management certifications

NFMC: Nonfinancial management certifications

Page 53 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix V 

Profiles of Respondents Involved in DFAS

Accounting Operations

Included in our review were 251 managers involved in accounting

operations at DFAS headquarters, centers, and OPLOCs. Of these 251

managers, 152 provided information on their qualifications and

experience. These 152 respondents included 14 deputy/assistant deputy

directors, 53 directorate/division directors, 14 branch chiefs, and 71 CFO

statement staff. Table V.1 provides the rank of the 1 military official and

grades of the 151 civilians.

Table V.1: Number of Military and

Civilian Respondents Military officials Civilians

Rank Number Grade Number

Brigadier General (O-7) 0 Senior Executive 0

Colonel (O-6) 0 15 15

Lieutenant Colonel (O-5) 0 14 22

Major (O-4) 1 13 45

Captain (O-3) 0 12 48

First Lieutenant (O-2) 0 11 10

Second Lieutenant (O-1) 0 9 9

Other 0 7 2

Total 1 Total 151

Formal Education

Attained

As shown in table V.2, 137 of the 152 respondents held bachelor’s degrees,

with 9 reporting more than one major. One hundred eight managers

majored in accounting, while 23 managers reported one or more other

business-related majors.

Table V.2: Bachelor’s Degree Majors

Reported by Managers of DFAS

Accounting Operations

Number of bachelor’s degree majors

Majors

Military

officials Civilians

Total degrees

by major

Accounting 0 108 108

Other business 1 23 24

Nonbusiness 0 14 14

Total degrees 1 145 146

As shown in table V.3, 51 respondents also held master’s degrees, with 1

reporting more than one major. Ten of these managers reported one or

more accounting or accounting-related majors and 31 managers reported

other business-related majors.

Page 54 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix V 

Profiles of Respondents Involved in DFAS

Accounting Operations

Table V.3: Master’s Degree Majors

Reported by Managers of DFAS

Accounting Operations

Number of master’s degree majors

Majors

Military

officials Civilians

Total degrees

by major

Accounting 0 11 11

Other business 1 30 31

Nonbusiness 0 10 10

Total degrees 1 51 52

One hundred fifty of the 152 respondents reported completing three or

more courses in accounting-related subjects, as follows:

• 3-5 subjects: 6 civilians and

• 6 or more subjects: 144 (1 military and 143 civilian respondents).

Based solely on a review of their formal education, the military official and

142 civilians in the latter group appear to have met the requirements to

serve in GS-510 accountant positions.

Professional Work

Experience Acquired

A review of the profiles showed that the military official had 17 years with

DOD; the average number of years of professional work experience was 21

for the 151 civilians, with a range of 1 to 41 years. Approximately

80 percent of the respondents had spent most of their careers in DOD.

Figures V.1 and V.2 show the average number of years of work experience

by rank for the military official and by grade for the civilians, respectively.

Page 55 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix V 

Profiles of Respondents Involved in DFAS

Accounting Operations

Figure V.1: Professional Work

Experience Reported by Managers of

DFAS Accounting Operations—Military

Officials

Average number of years

0

5

10

15

20

25

30

35

Major

(1)

Managers by rank (number at each rank)

Average years in other public/private sector

Average years in DOD

Page 56 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix V 

Profiles of Respondents Involved in DFAS

Accounting Operations

Figure V.2: Professional Work

Experience Reported by Managers of

DFAS Accounting

Operations—Civilians

Average number of years

0

5

10

15

20

25

30

35

GS-15

(15)

GS-14

(22)

GS-13

(45)

GS-12

(48)

GS-11

(10)

GS-9 (9) GS-7 (2)

Managers by grade (number at each grade)

Average years in other public/private sector

Average years in DOD

Figures V.3 and V.4 show the number of military and civilian respondents

who indicated that they had performed each financial management

function previously outlined at sometime during their careers, and the

average number of years of experience in each function. A review of the

profiles also showed that 111 civilians had performed three or more of

these functions.

Page 57 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix V 

Profiles of Respondents Involved in DFAS

Accounting Operations

Figure V.3: Experience in Financial

Management Functions Reported by

Managers of DFAS Accounting

Operations—Military Officials

Number of managers performing function (total = 1 respondent)

0

1

2

Financial statement

preparation (0 years)

Financial reporting/acctg

policy (15 years)

Financial analysis (0 years)

Accounting operations (2 years)

Accounting systems (0 years)

Average years performing functions

0

1

0

1

0

Page 58 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix V 

Profiles of Respondents Involved in DFAS

Accounting Operations

Figure V.4: Experience in Financial

Management Functions Reported by

Managers of DFAS Accounting

Operations—Civilians

Number of managers performing function (total = 151 respondents)

0

20

40

60

80

100

120

140

160

Financial statement

preparation (6 years)

Financial reporting/acctg

policy (8 years)

Financial analysis (8 years)

Accounting operations (9 years)

Accounting systems (5 years)

Average years performing functions

129

119

91

117

84

Training Completed

During 1995 and 1996

Figure V.5 shows the training reported by the 152 respondents as being

completed during 1995 and 1996.

Page 59 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix V 

Profiles of Respondents Involved in DFAS

Accounting Operations

Figure V.5: Training Reported by

Managers of DFAS Accounting

Operations as Being Completed

During 1995 and 1996

Number of managers (total = 152 respondents)

0

20

40

60

80

100

120

140

160

Accounting training only

Accounting and

financial training

Accounting and

general training

Accounting, financial, and general training

Financial and general training

General training only

No training

Categories of training

19

7

21

31

9

42

23

A review of the profiles showed

• total receiving accounting-related training: 78 civilians,

• total receiving financial-related training: 47 civilians,

• total receiving training in general topics: 103 (1 military and 102 civilian

respondents), and

• total not receiving training: 23 civilians.

Professional

Certifications Held

A review of the profiles showed that, of the 51 managers holding one or

more professional certifications,

• 21 civilians were CPAs,

• 39 were CGFMs (1 military and 38 civilian respondents),

• 6 civilians held other financial management certifications, and

• 1 civilian held a nonfinancial management certification.

Page 60 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix V 

Profiles of Respondents Involved in DFAS

Accounting Operations

The 101 managers that did not hold any professional certifications were

civilians. Figure V.6 shows the types of professional certifications reported

by managers of DFAS accounting operations.

Figure V.6: Professional Certifications

Reported by Managers of DFAS

Accounting Operations

Number of managers (total = 152 respondents)

0

20

40

60

80

100

120

140

160

CPA

only

CPA

and

CGFM

CPA

and

OFMC

CPA,

CGFM

and

OFMC

CGFM

only

CGFM

and

OFMC

OFMC

only

NFMC

only

None

Types of certifications held

9 9

1 2

26

2 1 1

101

Legend:

CPA: Certified Public Accountant

CGFM: Certified Government Financial Manager

OFMC: Other financial management certifications

NFMC: Nonfinancial management certifications

Page 61 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix VI 

Profiles of Respondents Involved in DFAS

Finance Operations

Included in our review were 281 managers involved in finance operations

at DFAS headquarters, 5 centers, and 17 OPLOCs. Of these 281 managers, 84

provided information on their qualifications and experience. These 84

respondents included 13 deputy and assistant deputy directors, 45

directorate/division directors, and 26 branch chiefs. Table VI.1 provides

the ranks of the 8 military officials and grades of the 76 civilians.

Table VI.1: Number of Military and

Civilian Respondents Military officials Civilians

Rank Number Grade Number

Brigadier General (O-7)

0

Senior

Executive 1

Colonel (O-6) 2 15 8

Lieutenant Colonel (O-5) 1 14 12

Major (O-4) 1 13 20

Captain (O-3) 2 12 17

First Lieutenant (O-2) 0 11 4

Second Lieutenant (O-1) 0 9 1

Chief Warrant Officer (CWO-4),

Master Sergeant (E-7) 2 6,7,8 13

Total 8 Total 76

Formal Education

Attained

As shown in table VI.2, 49 of the 84 respondents held bachelor’s degrees,

with 1 reporting more than one major. Twenty-eight managers majored in

accounting, while 17 managers reported other business-related majors.

Table VI.2: Bachelor’s Degree Majors

Reported by Managers of DFAS

Finance Operations

Number of bachelor’s degree majors

Majors

Military

officials Civilians

Total degrees

by major

Accounting 2 26 28

Other business 4 13 17

Nonbusiness 1 4 5

Total degrees 7 43 50

As shown in table VI.3, 27 respondents also held master’s degrees, with 1

reporting more than one major. The major for 2 of these managers was

accounting, while 23 reported one or more other business-related majors.

Page 62 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix VI 

Profiles of Respondents Involved in DFAS

Finance Operations

Table VI.3: Master’s Degree Majors

Reported by Managers of DFAS

Finance Operations

Number of master’s degree majors

Majors

Military

officials Civilians

Total degrees

by major

Accounting 0 2 2

Other business 5 19 24

Nonbusiness 0 2 2

Total degrees 5 23 28

Seventy-three respondents reported completing one or more courses in

accounting-related subjects, as follows:

• 1-2 subjects: 9 (1 military and 8 civilian respondents),

• 3-5 subjects: 13 (3 military and 10 civilian respondents), and

• 6 or more subjects: 51 (3 military and 48 civilian respondents).

Based solely on a review of their formal education, the 3 military officials

and 43 civilians in the latter group appear to have met the requirements to

serve in GS-510 accountant positions.

Professional Work

Experience Acquired

A review of the profiles showed that the average number of years of

professional work experience was 20 years for the 8 military officials, with

a range of 11 to 27 years, and 25 years for the 76 civilians, with a range of 7

to 43 years. With few exceptions, the respondents had spent most of their

careers in DOD. Figures VI.1 and VI.2 show the average number of years of

work experience by rank for the military officials and by grade for the

civilians, respectively.

Page 63 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix VI 

Profiles of Respondents Involved in DFAS

Finance Operations

Figure VI.1: Professional Work

Experience Reported by Managers of

DFAS Finance Operations—Military

Officials

Average number of years

0

5

10

15

20

25

30

35

Colonel (2)

Lieutenant Colonel(1)

Major (1)

Captain (2)

Chief Warrant Officer(1)

Master Sergeant (1)

Managers by rank (number at each rank)

Average years in other public/private sector

Average years in DOD

Page 64 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix VI 

Profiles of Respondents Involved in DFAS

Finance Operations

Figure VI.2: Professional Work

Experience Reported by Managers of

DFAS Finance Operations—Civilians

Average number of years

0

5

10

15

20

25

30

35

Senior Executives (1)

GS-15 (8)

GS-14 (12)

GS-13 (20)

GS-12 (17)

GS-11 (4)

GS-9 (1)

GS-6 through 8 (13)

Managers by grade (number at each grade)

Average years in other public/private sector

Average years in DOD

Figures VI.3 and VI.4 show the number of military and civilian respondents

who indicated that they had performed each financial management

function previously outlined at sometime during their careers, and the

average number of years of experience in each function. A review of the

profiles also showed that 2 military and 44 civilian respondents had

performed three or more of these functions.

Page 65 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix VI 

Profiles of Respondents Involved in DFAS

Finance Operations

Figure VI.3: Experience in Financial

Management Functions Reported by

Managers of DFAS Finance

Operations—Military Officials

Number of managers performing function (total = 8 respondents)

0

2

4

6

8

Financial statement preparation (12 years)

Financial reporting/acctg

policy (10 years)

Financial analysis (2 years)

Accounting operations (10 years)

Accounting systems (2 years)

Average years performing functions

2

6

2

5

2

Page 66 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix VI 

Profiles of Respondents Involved in DFAS

Finance Operations

Figure VI.4: Experience in Financial

Management Functions Reported by

Managers of DFAS Finance

Operations—Civilians

Number of managers performing function (total = 76 respondents)

0

10

20

30

40

50

60

70

80

Financial statement

preparation (7 years)

Financial reporting/acctg

policy (9 years)

Financial analysis (7 years)

Accounting operations (10 years)

Accounting systems (7 years)

Average years performing functions

39 40

37

64

30

Training Completed

During 1995 and 1996

Figure VI.5 shows the training reported by the 84 respondents as being

completed during 1995 and 1996.

Page 67 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix VI 

Profiles of Respondents Involved in DFAS

Finance Operations

Figure VI.5: Training Reported by

Managers of DFAS Finance Operations

as Being Completed During 1995 and

1996

Number of managers (total = 84 respondents)

0

10

20

30

40

50

60

70

80

90

Accounting training only

Accounting and

general training

Accounting, financial, and general training

Financial training only

Financial and general training

General training only

No training

Categories of training

1 3

14

1

8

40

17

A review of the profiles showed

• total receiving accounting-related training: 18 (1 military and 17 civilian

respondents),

• total receiving financial-related training: 23 (1 military and 22 civilian

respondents),

• total receiving training in general topics: 65 (5 military and 60 civilian

respondents), and

• total not receiving training: 17 (3 military and 14 civilian respondents).

Professional

Certifications Held

A review of the profiles showed that, of the 16 managers holding one or

more professional certifications,

• 4 civilians were CPAs,

• 11 civilians were CGFMs,

Page 68 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix VI 

Profiles of Respondents Involved in DFAS

Finance Operations

• 1 civilian held an other financial management certification, and

• 5 civilians held nonfinancial management certifications.

Of the 68 managers that did not hold any professional certifications, 8

were military officials and 60 were civilians. Figure VI.6 shows the types of

professional certifications reported by managers of DFAS finance

operations.

Figure VI.6: Professional Certifications

Reported by Managers of DFAS

Finance Operations

Number of managers (total = 84 respondents)

0

10

20

30

40

50

60

70

80

90

CPA

only

CPA

and

CGFM

CPA,

CGFM,

and

NFMC

CGFM

only

CGFM

and

NFMC

OFMC

only

NFMC

only

None

Types of certifications held

2 1 1

7

2 1 2

68

Legend:

CPA: Certified Public Accountant

CGFM: Certified Government Financial Manager

OFMC: Other financial management certifications

NFMC: Nonfinancial management certifications

Page 69 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix VII 

Comments From the Defense Finance and

Accounting Service

Page 70 GAO/AIMD-98-133 Profile of DFAS Financial Managers
Appendix VIII 

Major Contributors to This Report

Accounting and

Information

Management Division,

Washington, D.C.

George H. Stalcup, Associate Director

Geoffrey B. Frank, Assistant Director

Robert L. Self, Project Manager

Dennis B. Fauber, Evaluator-in-Charge

Linda J. Brigham, Senior Auditor

Patricia A. Summers, Senior Auditor

Francine M. DelVecchio, Communications Analyst

Michelle A. Howard, Intern

(918910) Page 71 GAO/AIMD-98-133 Profile of DFAS Financial Managers
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