United States General Accounting Office

GAO Report to the Acting Assistant Secretary

of the Navy (Financial Management and

Comptroller)

April 1998 FINANCIAL

MANAGEMENT

Profile of Navy and

Marine Corps Financial

Managers

GAO/AIMD-98-86

GAO United States

General Accounting Office

Washington, D.C. 20548

Accounting and Information

Management Division

B-279264 

April 15, 1998

Ms. Gladys J. Commons

Acting Assistant Secretary of the Navy

 (Financial Management and Comptroller)

Dear Ms. Commons:

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 a series of assignments

is to provide information on qualifications, such as formal education,

training, and professional certifications, and professional work experience

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 fourth 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 Department of

the Navy. We have already issued reports on key financial managers within

the Office of the Under Secretary of Defense (Comptroller)2

 and the

Departments of the Air Force3

 and Army.4 Also, we plan to issue a report

on the Defense Finance and Accounting Service. 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. These reports can

help Defense agencies in shaping their plans to enhance the qualifications

and work experience, 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

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 26,

1997).

4

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

Page 1 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

companies and large state governments. We will also identify those steps

DOD has taken and others it should consider implementing to enhance its

financial management workforce to fully meet the objectives of the Chief

Financial Officers (CFO) Act.

This report provides qualification and professional work experience

information on 4 Navy financial management executives and 194 of 306

key financial managers representing 90 of the 126 Navy and Marine Corps

organizations included in our review.

Results in Brief The four Navy financial management executives included in this review

are the Assistant Secretary of the Navy (Financial Management and

Comptroller); the Principal Deputy Assistant Secretary of the Navy

(Financial Management and Comptroller); the Director, Office of Financial

Operations; and the Director, Office of Budget. Each of the executives had

attained bachelor’s degrees and three of the four executives also held

master’s degrees. The Assistant Secretary had spent 27 years at DOD and 5

years in the private sector. The other three executives had DOD careers

ranging from 23 to 32 years, with two of these executives also spending

part of their careers in another government agency or the private sector.

One of the executives held a professional certification.

Of the 194 other key Navy and Marine Corps financial managers

responding to our review:

• About 23 percent (44) were military officers, serving mainly as

comptrollers at major commands and installations, and 77 percent

(150) were civilian personnel serving mainly in comptroller and budget

officer positions at installations.

• All 44 officers and 122 of the 150 civilians reported holding bachelor’s

degrees, with 5 of these respondents reporting more than one major.

About 28 percent of these 166 managers majored in accounting, while

approximately 43 percent reported degrees in business-related majors

other than accounting.

• Eighty respondents (39 officers and 41 civilians) also reported holding

master’s degrees, with 8 of these respondents reporting more than one

major. Six of these 80 managers held master’s degrees in accounting, while

about 78 percent reported degrees in business-related majors other than

accounting.

• The officers’ careers ranged from 4 to 33 years, averaging 21 years, while

the civilians’ careers ranged from 8 to 55 years, averaging 27 years. About

Page 2 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

62 percent of all respondents, officers and civilians, reported performing

several financial management-related functions included in our review

throughout their careers.

• One-hundred-sixty respondents (28 officers and 132 civilians) reported

completing training (referred to as continuing professional education in

the profile instrument) in one or more of the categories included in our

review during 1995 and 1996. Of these 160 managers, (1) about 94 percent

listed general topics, such as computers, supervision, strategic planning,

and communication skills, as examples of the training completed,

(2) 61 percent reported completing financial-related training, and (3) about

44 percent reported completing accounting-related training, such as

accounting standards and financial reporting.

• About 22 percent of the 194 respondents reported holding one or more

professional certifications. The 42 managers in this group reported holding

accounting and other financial management-related certifications, as

follows: 13 were Certified Public Accountants (CPA),5

 23 were Certified

Government Financial Managers (CGFM),6

 and 9 held other certifications,

including the Certified Management Accountant and Certified Fraud

Examiner.

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

Committee of the Chief Financial Officers Council and the Joint Financial

5

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.

6

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-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

Management Improvement Program (JFMIP)7 have proposed improvements

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,

8

 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 the Navy and Marine Corps. We obtained this information from

biographies and profile instruments due to the concerns of Navy officials

regarding the completeness of personnel databases and personnel files.

We worked with Navy officials to determine the key financial management

positions to be included in this review. These positions typically included

comptrollers, deputy comptrollers, and budget officers at Navy and Marine

Corps major commands and installations. As agreed with the Navy, 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.

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

accordance with generally accepted government auditing standards. The

7

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.

8

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-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

Assistant Secretary of the Navy (Financial Management and Comptroller)

provided comments on a draft of this report. These comments are

discussed in the “Agency Comments and Our Evaluation” section of this

report and are reprinted in appendix VIII.

Profile of Navy

Financial

Management

Executives

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

professional certifications of the Department of the Navy’s four executives

included in our review. All four held bachelor’s degrees and three also held

master’s degrees. Majors associated with their bachelor’s degrees included

mathematics, education, accounting, and engineering, while those

associated with their master’s degrees included public financial

management, business administration, operations research, and Middle

East Affairs and Arabic. The Assistant Secretary had spent 27 years at DOD

and 5 years in the private sector. The other three executives’ DOD careers

ranged from 23 to 32 years. In addition to her years at DOD, the Principal

Deputy Assistant Secretary had spent 2 years at the Social Security

Administration. The Director of the Office of Financial Operations had

spent 2 years in the private sector and as an adjunct professor; he had also

served as a part-time instructor of graduate and undergraduate level

accounting and financial management courses over a 10-year period. A

review of biographical information provided to us showed that three of the

executives had served in financial management-related positions during

most of their DOD careers. One of the executives also held a professional

certification. The Director, Office of Financial Operations was a Certified

Public Accountant.

Page 5 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

Table 1: Profile of Navy Financial

Management Executives

Assistant Secretary of the Navy (Financial Management and Comptroller)

Formal Education Bachelor’s Degree in Mathematics

Career DOD - 27 years; private sector - 5 years

Certifications None

Principal Deputy Assistant Secretary of the Navy (Financial Management and

Comptroller)

Formal Education Bachelor’s Degree in Education

Master’s Degree in Public Financial

Management

Career DOD - 26 years; other federal government

- 2 years

Certifications None

Director, Office of Financial Operations

Formal Education Bachelor’s Degree in Accounting

Master’s Degree in Business Administration

Career DOD - 23 years; private sector - 2 years;

adjunct professor of accounting and

financial management - 10-year period

(part time)

Certifications Certified Public Accountant

Director, Office of Budget

Formal Education Bachelor’s Degree in Engineering

Master’s Degree in Operations Research

Master’s Degree in Middle East Affairs and

Arabic

Career DOD - 32 years

Certifications None

Profile of Navy and

Marine Corps Key

Financial Managers

In collaboration with Navy officials, we identified 306 key financial

managers across the department for this review, of which 194 (or

63 percent) responded by providing information on their qualifications and

experience. Respondents included

• the 7 managers from the Office of the Assistant Secretary of the Navy

(Financial Management and Comptroller)—ASN/FM&C;

• 74 of 128 managers from four Navy operational commands and their

installations;

• 12 of 17 managers from the Chief of Naval Education and Training (CNET)

and its installations;

Page 6 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

• 68 of 110 managers from the Naval Sea Systems Command, Naval Air

Systems Command, Naval Supply Systems Command, and Naval Facilities

Engineering Command and (1) shipyards, weapon stations, aviation

depots, fleet industrial supply centers, and public work centers which

perform supply and maintenance support to other Navy and Marine Corps

organizations on a reimbursable basis and (2) air and surface warfare

centers responsible for the research, development, test, and evaluation

(RDT&E) and procurement of Navy aeronautical, electronics, ship, and

submarine systems; and

• 33 of 44 managers from Headquarters, U.S. Marine Corps and its

commands and installations.

The seven ASN/FM&C respondents performed roles including financial

operations, financial management/accounting policy, and/or budget

execution. The 187 respondents from Navy and Marine Corps major

commands and installations included 71 comptrollers, 47 deputy

comptrollers, 67 budget officers, and 2 working capital fund9

 managers.

About 23 percent of the 194 respondents were military officers. The 44

officers served mainly as comptrollers at major commands and

installations, and the 150 civilians served most often as comptrollers and

budget officers at installations. Table 2 provides a breakout of the officers

and civilians by rank and grade, respectively.

Table 2: Number of Officer and Civilian

Respondents Officers Civilians

Ranka Number Grade Number

Rear Admiral/Brigadier

General (O-7)

0 Senior Executive 12

Captain/Colonel (O-6) 14 15 28

Commander/Lieutenant

Colonel (O-5)

17 14 31

Lieutenant Commander/

Major (O-4)

8 13 38

Lieutenant/Captain (O-3) 5 12 35

Lieutenant (Junior

Grade)/First Lieutenant (O-2)

0 11 6

Total 44 Total 150

aThe first rank shown relates to Navy officers, while the second relates to Marine Corps officers.

9

Working capital fund activities sell goods and services to the military services and defense agencies

with a goal of operating on a break-even basis. Customers generally reimburse these activities from

their operation and maintenance or other appropriated fund accounts.

Page 7 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

Formal Education Attained Over 85 percent (the 44 officers and 122 of 150 civilians) of the 194

respondents reported holding bachelor’s degrees, and 41 percent (39

officers and 41 civilians) also reported holding master’s degrees.

Five of the 166 respondents holding bachelor’s degrees reported more

than one major. A review of the profiles showed that 47 managers, or

about 28 percent of these respondents, reported accounting majors, 73

managers reported other business-related majors, and 48 managers

reported that one or more of their majors were not business related. Table

3 shows the bachelor’s degree majors reported by the 166 Navy and Marine

Corps financial managers.

Table 3: Bachelor’s Degree Majors

Reported by Navy and Marine Corps

Financial Managers

Number of bachelor’s degree majors

Majors Officers Civilians

Total degrees by

major

Accounting 4 43 47

Other business 22 51 73

Nonbusiness 19 32 51

Total degrees 45 126 171

Eight of the 80 respondents holding master’s degrees reported more than

one major. A review of the profiles showed that, of these 80 managers, 6

reported accounting majors, 62 reported one or more other

business-related majors, and 15 reported one or more nonbusiness-related

majors. Table 4 shows the master’s degree majors reported by the 80

respondents.

Table 4: Master’s Degree Majors

Reported by Navy and Marine Corps

Financial Managers

Number of master’s degree majors

Majors Officers Civilians

Total degrees by

major

Accounting 2 4 6

Other business 37 29 66

Nonbusiness 7 9 16

Total degrees 46 42 88

Page 8 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

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 194 respondents, 176 had completed one or more

of these subjects, as follows:

• 1-2 subjects: 20 (5 officers and 15 civilians),

• 3-5 subjects: 44 (9 officers and 35 civilians), and

• 6 or more subjects: 112 (28 officers and 84 civilians).

Included in this latter group were 109 (or about 56 percent of the 194

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 109 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 44 officers’ careers ranged from 4

to 33 years, averaging 21 years, while the 150 civilians’ careers ranged from

8 to 55 years, averaging 27 years. Both officer and civilian respondents,

with a few exceptions, had spent most of their careers in DOD. Also, about

62 percent of all respondents reported that they had performed several of

the financial management-related functions included in our review during

their careers.

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

rank for the officers and by grade for the civilians, respectively.

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 9 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

Figure 1: Professional Work

Experience Reported by Navy and

Marine Corps Financial

Managers—Officers

Average number of years

0

5

10

15

20

25

30

35

Captain/Colonel (14)

Commander/Lt. Colonel (17)

Lieutenant Commander/Major (8)

Lieutenant/Captain(5)

Managers by rank (number at each rank)

Average years in other public/private sector

Average years in DOD

Page 10 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

Figure 2: Professional Work

Experience Reported by Navy and

Marine Corps Financial

Managers—Civilians

Average number of years

0

5

10

15

20

25

30

35

Senior Executives(12)

GS-15 (28)

GS-14 (31)

GS-13 (38)

GS-12 (35)

GS-11 (6)

Managers by grade (number at each grade)

Average years in other public/private sector

Average years in DOD

In collaboration with Navy 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;

• accounting operations—recording and reporting accounting transactions;

and

Page 11 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

• accounting systems development and maintenance—performing tasks

associated with the functional design and maintenance of accounting and

finance systems.

Thirty officers and 90 civilians (or about 62 percent of the 194

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

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

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 38 of the 44 officers had performed

financial analysis-related tasks for an average of 7 years.

Figure 3: Experience in Financial

Management Functions Reported by

Navy and Marine Corps Financial

Managers—Officers

Number of managers performing function (total = 44 respondents)

0

5

10

15

20

25

30

35

40

45

Financial statement

preparation (4 years)

Financial reporting/acctg

policy (6 years)

Financial analysis (7 years)

Accounting operations (5 years)

Accounting systems (3 years)

Average years performing functions

23

31

38

29

11

Page 12 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

Figure 4: Experience in Financial

Management Functions Reported by

Navy and Marine Corps Financial

Managers—Civilians

Number of managers performing function (total = 150 respondents)

0

10

20

30

40

50

60

70

80

90

100

110

120

130

140

150

Financial statement

preparation (7 years)

Financial reporting/acctg

policy (11 years)

Financial analysis (14 years)

Accounting operations (7 years)

Accounting systems (6 years)

Average years performing functions

71

113

146

87

51

Training Completed During

1995 and 1996

During 1995 and 1996, about 64 percent of the officers and 88 percent of

the civilians reported completing some training in one or more of the

categories included in our review. Of these 160 managers (28 officers and

132 civilians) receiving training, (1) 94 percent listed general topics, such

as computers, supervision, strategic planning, and communications skills,

as examples of the training they had completed, (2) 61 percent reported

completing some training in financial topics, and (3) about 44 percent

reported completing training in accounting topics, such as accounting

standards and financial reporting. Also, a review of the profiles showed

that 46 managers completed only general training and 34 other managers

had not completed any training. Therefore, 41 percent of the 194

respondents had not received any accounting or financial training for

those 2 years.

Figure 5 shows the training reported as being completed by the 194

respondents during the 2-year period.

Page 13 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

Figure 5: Training Reported by Navy

and Marine Corps Financial Managers

as Being Completed During 1995 and

1996

Number of managers (total = 194 respondents)

0

20

40

60

80

100

120

140

160

180

200

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

2 3

14

51

4

40 46

34

A review of the profiles showed

• total receiving accounting-related training: 70 (17 officers and 53 civilians),

• total receiving financial-related training: 98 (21 officers and 77 civilians),

• total receiving training in general topics: 151 (23 officers and 128 civilians),

and

• total not receiving training: 34 (16 officers and 18 civilians).

Professional Certifications

Held

About 22 percent of the 194 respondents reported holding one or more

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

42 managers,

• 13 were CPAs (1 officer and 12 civilians),

• 23 were CGFMs (3 officers and 20 civilians),

Page 14 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

• 9 held other financial management certifications, including the Certified

Management Accountant and Certified Fraud Examiner (3 officers and 6

civilians), and

• 6 reported holding nonfinancial management certifications (1 officer and 5

civilians).

Of the 152 managers that did not hold any professional certifications, 37

were officers and 115 were civilians. Figure 6 shows the types of

professional certifications reported by the 194 Navy and Marine Corps

financial managers.

Figure 6: Professional Certifications

Reported by Navy and Marine Corps

Financial Managers

Number of managers (total = 194 respondents)

0

20

40

60

80

100

120

140

160

180

200

CPA

only

CPA

and

CGFM

CPA,

CGFM,

and

OFMC

CPA,

CGFM,

and

NFMC

CGFM

only

CGFM

and

NFMC

OFMC

only

NFMC

only

None

Types of certifications held

9

2 1 1

16

3 8 2

152

CPA: Certified Public Accountant

CGFM: Certified Government Financial Manager

OFMC: Other financial management certifications

NFMC: Nonfinancial management certifications

Page 15 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

Appendixes II through VII provide the formal education, professional work

experience, training, and professional certification data reported by the 44

officers and 150 civilians by their respective organizations, including:

• ASN/FM&C in appendix II;

• four Naval operational commands and 34 of their 50 installations in

appendix III;

• the Chief of Naval Education and Training (CNET) and six of its seven

installations in appendix IV;

• Naval Sea Systems Command, Naval Air Systems Command, Naval Supply

Systems Command, and Naval Facilities Engineering Command and 19 of

their 28 working capital fund installations, including shipyards, weapon

stations, aviation depots, fleet industrial supply centers, and public work

centers in appendix V;

• Naval Sea Systems Command and Naval Air Systems Command and 9 of

their 13 air and surface warfare centers responsible for the research,

development, test, and evaluation (RDT&E) and procurement of Navy

aeronautical, electronics, ship, and submarine systems in appendix VI; and

• Headquarters, U.S. Marine Corps and 12 of its 17 commands and

installations in appendix VII.

Agency Comments

and Our Evaluation

In commenting on a draft of this report, the Navy indicated that the

information will be useful in its continuing efforts to ensure that all of its

financial managers are able to address the financial management needs of

the department. The Navy provided two additional comments:

• While acknowledging that accounting training and experience are

becoming increasingly relevant to the financial management working

environment, it stated that the report placed too much emphasis on the

accounting discipline.

• It stated that professional certifications in and of themselves may not

always be a useful indicator, adding that it has chosen to emphasize

continuing education as more useful in maintaining a flexible and

broad-based financial management workforce.

Our report presents information on a number of measures relating to

qualifications and experience of key Navy financial managers. As agreed

with Navy officials when we initiated this profiling work, information on

formal education and training, including accounting training, and

professional certification are among such important measures. The key

Navy financial managers surveyed are responsible for accurately recording

Page 16 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

and including the results of transactions in financial and budgetary reports

and statements for one of the largest entities in the federal government,

with worldwide operations. It is important that this information be

reliable, given its intended use for managerial and budgetary decisions.

We recently reported that the Navy, to an even greater extent than the

other military services, has been plagued for years by troublesome

financial accounting and reporting problems involving billions of dollars.11

Continuing errors, misstatements, and internal control weaknesses have

precluded the Naval Audit Service from rendering anything other than a

disclaimer of opinion on the Navy’s financial statements. In that context,

and as the Navy response indicates, the profiling information, including

formal education, professional work experience, training, and professional

certifications, will help the department evaluate its military and civilian

career programs to help ensure that Navy financial managers provide the

best possible service to customers.

Regarding Navy’s comment that it has chosen to emphasize continuing

education rather that professional certifications for its financial

management workforce, our point is that certifications, with

accompanying requirements for continuing professional education, can be

used as one vehicle in ensuring that financial managers receive necessary

training on an ongoing basis. The Navy’s comments are reprinted in

appendix VIII.

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.

11CFO Act Financial Audits: Programmatic and Budgetary Implications of Navy Financial Data

Deficiencies (GAO/AIMD-98-56, March 16, 1998).

Page 17 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
B-279264 

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

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

Sincerely yours,

Lisa G. Jacobson

Director, Defense Audits

Page 18 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Page 19 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Contents

Letter 1

Appendix I 

Scope and

Methodology

26

Appendix II 

Profiles of Office of

the Assistant

Secretary of the Navy

(Financial

Management and

Comptroller)

Respondents

35

Appendix III 

Profiles of Navy

Operational

Command and

Installation

Respondents

43

Appendix IV 

Profiles of Chief of

Naval Education and

Training (CNET) and

Installation

Respondents

52

Page 20 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Contents

Appendix V 

Profiles of Navy

Working Capital Fund

Respondents

59

Appendix VI 

Profiles of Navy

Systems Command

Respondents

67

Appendix VII 

Profiles of Marine

Corps Respondents

75

Appendix VIII 

Comments From the

Department of the

Navy

83

Appendix IX 

Major Contributors to

This Report

84

Tables Table 1: Profile of Navy Financial Management Executives 6

Table 2: Number of Officer and Civilian Respondents 7

Table 3: Bachelor’s Degree Majors Reported by Navy and Marine

Corps Financial Managers

8

Table 4: Master’s Degree Majors Reported by Navy and Marine

Corps Financial Managers

8

Table I.1: Navy and Marine Corps Command and Installation Key

Financial Managers Included in This Review

27

Table II.1: Number of Officer and Civilian Respondents 35

Table II.2: Bachelor’s Degree Majors Reported by ASN/FM&C

Financial Managers

35

Page 21 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Contents

Table II.3: Master’s Degree Majors Reported by ASN/FM&C

Financial Managers

36

Table III.1: Navy Operational Commands’ Key Financial Manager

Population and Respondents and Budgets for Fiscal Year 1997

43

Table III.2: Number of Officer and Civilian Respondents 44

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

Operational Command and Installation Financial Managers

44

Table III.4: Master’s Degree Majors Reported by Navy Operational

Command and Installation Financial Managers

44

Table IV.1: Number of Officer and Civilian Respondents 52

Table IV.2: Bachelor’s Degree Majors Reported by Naval

Education and Training Command and Installation Financial

Managers

52

Table IV.3: Master’s Degree Majors Reported by Naval Education

and Training Command and Installation Financial Managers

53

Table V.1: Number of Officer and Civilian Respondents 59

Table V.2: Bachelor’s Degree Majors Reported by Navy Working

Capital Fund Financial Managers

59

Table V.3: Master’s Degree Majors Reported by Navy Working

Capital Fund Financial Managers

60

Table VI.1: Number of Officer and Civilian Respondents 67

Table VI.2: Bachelor’s Degree Majors Reported by Navy Systems

Command Financial Managers

67

Table VI.3: Master’s Degree Majors Reported by Navy Systems

Command Financial Managers

68

Table VII.1: Number of Officer and Civilian Respondents 75

Table VII.2: Bachelor’s Degree Majors Reported by Marine Corps

Financial Managers

75

Table VII.3: Master’s Degree Majors Reported by Marine Corps

Financial Managers

76

Figures Figure 1: Professional Work Experience Reported by Navy and

Marine Corps Financial Managers—Officers

10

Figure 2: Professional Work Experience Reported by Navy and

Marine Corps Financial Managers—Civilians

11

Figure 3: Experience in Financial Management Functions

Reported by Navy and Marine Corps Financial

Managers—Officers

12

Figure 4: Experience in Financial Management Functions

Reported by Navy and Marine Corps Financial

Managers—Civilians

13

Page 22 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Contents

Figure 5: Training Reported by Navy and Marine Corps Financial

Managers as Being Completed During 1995 and 1996

14

Figure 6: Professional Certifications Reported by Navy and

Marine Corps Financial Managers

15

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

Experience Information on Navy and Marine Corps Financial

Managers

30

Figure II.1: Professional Work Experience Reported by

ASN/FM&C Financial Managers—Officers

37

Figure II.2: Professional Work Experience Reported by

ASN/FM&C Financial Managers—Civilians

38

Figure II.3: Experience in Financial Management Functions

Reported by ASN/FM&C Financial Managers—Officers

39

Figure II.4: Experience in Financial Management Functions

Reported by ASN/FM&C Financial Managers—Civilians

40

Figure II.5: Training Reported by ASN/FM&C Financial Managers

as Being Completed During 1995 and 1996

41

Figure II.6: Professional Certifications Reported by ASN/FM&C

Financial Managers

42

Figure III.1: Professional Work Experience Reported by Navy

Operational Command and Installation Financial

Managers—Officers

46

Figure III.2: Professional Work Experience Reported by Navy

Operational Command and Installation Financial

Managers—Civilians

47

Figure III.3: Experience in Financial Management Functions

Reported by Navy Operational Command and Installation

Financial Managers—Officers

48

Figure III.4: Experience in Financial Management Functions

Reported by Navy Operational Command and Installation

Financial Managers—Civilians

49

Figure III.5: Training Reported by Navy Operational Command

and Installation Financial Managers as Being Completed During

1995 and 1996

50

Figure III.6: Professional Certifications Reported by Navy

Operational Command and Installation Financial Managers

51

Figure IV.1: Professional Work Experience Reported by Naval

Education and Training Command and Installation Financial

Managers—Officers

54

Page 23 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Contents

Figure IV.2: Professional Work Experience Reported by Naval

Education and Training Command and Installation Financial

Managers—Civilians

55

Figure IV.3: Experience in Financial Management Functions

Reported by Naval Education and Training Command and

Installation Financial Managers—Officers

56

Figure IV.4: Experience in Financial Management Functions

Reported by Naval Education and Training Command and

Installation Financial Managers—Civilians

57

Figure IV.5: Training Reported by Naval Education and Training

Command and Installation Financial Managers as Being

Completed During 1995 and 1996

58

Figure V.1: Professional Work Experience Reported by Navy

Working Capital Fund Financial Managers—Officers

61

Figure V.2: Professional Work Experience Reported by Navy

Working Capital Fund Financial Managers—Civilians

62

Figure V.3: Experience in Financial Management Functions

Reported by Navy Working Capital Fund Financial

Managers—Officers

63

Figure V.4: Experience in Financial Management Functions

Reported by Navy Working Capital Fund Financial

Managers—Civilians

64

Figure V.5: Training Reported by Navy Working Capital Fund

Financial Managers as Being Completed During 1995 and 1996

65

Figure V.6: Professional Certifications Reported by Navy Working

Capital Fund Financial Managers

66

Figure VI.1: Professional Work Experience Reported by Navy

Systems Command Financial Managers—Officers

69

Figure VI.2: Professional Work Experience Reported by Navy

Systems Command Financial Managers—Civilians

70

Figure VI.3: Experience in Financial Management Functions

Reported by Navy Systems Command Financial

Managers—Officers

71

Figure VI.4: Experience in Financial Management Functions

Reported by Navy Systems Command Financial

Managers—Civilians

72

Figure VI.5: Training Reported by Navy Systems Command

Financial Managers as Being Completed During 1995 and 1996

73

Figure VI.6: Professional Certifications Reported by Navy

Systems Command Financial Managers

74

Page 24 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Contents

Figure VII.1: Professional Work Experience Reported by Marine

Corps Financial Managers—Officers

77

Figure VII.2: Professional Work Experience Reported by Marine

Corps Financial Managers—Civilians

78

Figure VII.3: Experience in Financial Management Functions

Reported by Marine Corps Financial Managers—Officers

79

Figure VII.4: Experience in Financial Management Functions

Reported by Marine Corps Financial Managers—Civilians

80

Figure VII.5: Training Reported by Marine Corps Financial

Managers as Being Completed During 1995 and 1996

81

Figure VII.6: Professional Certifications Reported by Marine

Corps Financial Managers

82

Abbreviations

ASN/FM&C Assistant Secretary of the Navy (Financial Management

and Comptroller)

CNET Chief of Naval Education and Training

CGFM Certified Government Financial Manager

CPA Certified Public Accountant

CFO Chief Financial Officer

DFAS Defense Finance and Accounting Service

DOD Department of Defense

FMFIA Federal Managers Financial Integrity Act

GMRA Government Management Reform Act

GPRA Government Performance and Results Act

JFMIP Joint Financial Management Improvement Program

MSC Military Sealift Command

NFMC Nonfinancial Management Certifications

O&M Operation and Maintenance

OFMC Other Financial Management Certifications

RDT&E Research, Development, Test, and Evaluation

Page 25 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix I 

Scope and Methodology

In collaboration with Navy officials, we identified senior executives and

financial managers from the Navy and Marine Corps to be included in this

review as those serving in key positions throughout the department. The

four senior executives in the Office of the Assistant Secretary of the Navy

(Financial Management and Comptroller) (ASN/FM&C) included the

Assistant Secretary of the Navy (Financial Management and Comptroller);

the Principal Deputy Assistant Secretary of the Navy (Financial

Management and Comptroller); the Director, Office of Financial

Operations; and the Director, Office of Budget. The 306 key financial

management positions selected for this review included:

• 7 from ASN/FM&C involved in financial operations, financial

management/accounting policy, and/or budget execution-related functions

and

• 299 (including comptrollers, deputy comptrollers, budget officers, and

working capital fund managers) from 126 Navy and Marine Corps major

commands and installations involved in (1) operations, (2) training,

(3) supply and maintenance, and (4) research, development, test,

evaluation, and procurement of Navy and Marine Corps systems, such as

aeronautics, electronics, ships, and submarines.

In addition to the 4 senior executives, 194 financial managers located at 89

of the 126 organizations responded to this review. The 194 respondents

included the 7 ASN/FM&C managers and 187 managers from major

commands and installations made up of 71 comptrollers, 47 deputy

comptrollers, 67 budget officers, and 2 working capital fund managers.

Table I.1 identifies the Navy and Marine Corps major commands, the

number of their installations, and information on the key financial

managers included in this review.

Page 26 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix I 

Scope and Methodology

Table I.1: Navy and Marine Corps

Command and Installation Key

Financial Managers Included in This

Review Navy Operational Organizations

Commander in Chief, U.S. Atlantic Fleet and 15 of its 22 installations (27 of the 55

managers responding included 10 comptrollers, 7 deputy comptrollers, and 10 budget

officers)

Commander in Chief, U.S. Pacific Fleet and 12 of its 21 installations (27 of the 50

managers responding included 11 comptrollers, 6 deputy comptrollers, and 10 budget

officers)

Commander in Chief, U.S. Navy in Europe and its two installations (eight of the nine

managers responding included two comptrollers, three deputy comptrollers, and three

budget officers)

Commanding Officer, Military Sealift Command and its five installations (12 of the 14

managers responding included 6 comptrollers, 2 deputy comptrollers, and 4 budget

officers)

Navy Training Organizations

Chief of Naval Education and Training Command and six of its seven installations (12 of

the 17 managers responding included 6 comptrollers, 1 deputy comptroller, and 5

budget officers)

Navy Working Capital Fund Organizations

Naval Sea Systems Command, Naval Air Systems Command, Naval Supply Systems

Command, and Naval Facilities Engineering Command and 19 of their 28 installations,

including shipyards, weapon stations, aviation depots, fleet industrial supply centers, and

public work centers (49 of the 79 managers responding included 18 comptrollers, 14

deputy comptrollers, 15 budget officers, and 2 working capital fund managers)

Navy Systems Command Organizations

Naval Sea Systems Command and Naval Air Systems Command and 9 of their 13 air and

surface warfare centers (24 of the 37 managers responding included 9 comptrollers, 7

deputy comptrollers, and 8 budget officers)

Marine Corps Organizations

Headquarters, U.S. Marine Corps and 12 of its 17 installations, such as operational,

training, working capital, and systems (33 of the 44 managers responding included 11

comptrollers, 9 deputy comptrollers, and 13 budget officers)

Note: The comptrollers and deputy comptrollers at Naval Sea Systems Command and Naval Air

Systems Command and the budget officer at Naval Air Systems Command were included in our

review of both working capital fund and systems command organizations.

We obtained fiscal year 1997 Navy and Marine Corps budget data,

including operation and maintenance (O&M); research, development, test

and evaluation (RDT&E); and procurement funding from the ASN/FM&C

budget office. Those major commands and installations identified for this

review managed $52 billion of approximately $80 billion budgeted for the

Navy and Marine Corps during fiscal year 1997.

Page 27 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix I 

Scope and Methodology

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

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 Navy officials in developing a data collection

instrument to gather the following types of information for 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 the five specific financial

management-related functions.

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

instrument): for the period of 1995-1996, specific training related to

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

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

other nonfinancial management certifications held.

For the four Navy executives, we obtained information on their formal

education, careers, and professional certifications from biographies

provided by these officials. For all other individuals, due to Navy officials’

concerns over the completeness of personnel files and databases, we also

agreed to collect information on the four indicators using profile

instruments. This procedure is being used for collecting qualification and

experience information from all DOD organizations in this series of

assignments.

The Navy liaisons sent profile instruments to the key Navy and Marine

Corps financial managers in the Office of the Assistant Secretary of the

Navy (Financial Management and Comptroller) and major commands and

installations identified for this review. The liaisons and we contacted those

financial managers who did not initially respond as well as those managers

1

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

1988).

Page 28 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix I 

Scope and Methodology

whose profile instruments were returned with incomplete information.

Through these efforts, we received complete profile information from the

four Navy executives and 63 percent of the key financial managers

identified for this review. Figure I.1 contains the profile instrument we

used to obtain personnel qualification and experience information from

the key financial managers.

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

contained in the profiles. However, as noted above, for incomplete

instruments, the Navy liaisons and we conducted follow-up efforts and

obtained the missing information.

We conducted our work from March 1997 through January 1998 in

accordance with generally accepted government auditing standards.

Page 29 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix I 

Scope and Methodology

Figure I.1: Profile Instrument Used to Collect Qualification and Experience Information on Navy and Marine Corps Financial

Managers

Page 30 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix I 

Scope and Methodology

Page 31 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix I 

Scope and Methodology

Page 32 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix I 

Scope and Methodology

Page 33 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix I 

Scope and Methodology

Page 34 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix II 

Profiles of Office of the Assistant Secretary

of the Navy (Financial Management and

Comptroller) Respondents

We included seven key financial managers in the Office of the Assistant

Secretary of the Navy (Financial Management and Comptroller)

(ASN/FM&C), all of whom provided information on their qualifications and

experience. This population included one manager involved in financial

operations, one manager in financial management/accounting policy, and

five managers in budget execution functions. Table II.1 shows the officer

and civilian composition of these managers, by rank and grade,

respectively.

Table II.1: Number of Officer and

Civilian Respondents Officers Civilians

Rank Number Grade Number

Rear Admiral (O-7) 0 Senior Executive 6

Captain (O-6) 1 15 0

Commander (O-5) 0 14 0

Lieutenant Commander

(O-4)

0 13 0

Lieutenant (O-3) 0 12 0

Lieutenant (junior grade)

(O-2)

0 11 0

Total 1 Total 6

Formal Education

Attained

As shown in table II.2, seven respondents held bachelor’s degrees, with

one reporting more than one major. None of the seven managers majored

in accounting and one manager reported a business-related major.

Table II.2: Bachelor’s Degree Majors

Reported by ASN/FM&C Financial

Managers

Number of bachelor’s degree majors

Majors Officers Civilians

Total degrees by

major

Accounting 0 0 0

Other business 0 1 1

Nonbusiness 1 6 7

Total degrees 1 7 8

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

manager held a master’s degree in accounting and another manager

reported a business-related major.

Page 35 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix II 

Profiles of Office of the Assistant Secretary

of the Navy (Financial Management and

Comptroller) Respondents

Table II.3: Master’s Degree Majors

Reported by ASN/FM&C Financial

Managers

Number of master’s degree majors

Majors Officers Civilians

Total degrees by

major

Accounting 0 1 1

Other business 0 1 1

Nonbusiness 1 0 1

Total degrees 1 2 3

Four respondents reported completing one or more courses in

accounting-related subjects, as follows:

• 1-2 subjects: two civilians,

• 3-5 subjects: none, and

• 6 or more subjects: two civilians.

Based solely on a review of their formal education, the two 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 number of years of professional

work experience was 26 years for the officer, and the average number of

years was 23 years for the civilians, with a range of 18 to 31 years. With

one exception, the respondents had spent most of their careers in DOD.

Figures II.1 and II.2 show the work experience by rank for the officer and

by grade for the civilians, respectively.

Page 36 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix II 

Profiles of Office of the Assistant Secretary

of the Navy (Financial Management and

Comptroller) Respondents

Figure II.1: Professional Work

Experience Reported by ASN/FM&C

Financial Managers—Officers

Average number of years

0

5

10

15

20

25

30

Captain

(1)

Managers by rank (number at each rank)

Average years in other public/private sector

Average years in DOD

Page 37 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix II 

Profiles of Office of the Assistant Secretary

of the Navy (Financial Management and

Comptroller) Respondents

Figure II.2: Professional Work

Experience Reported by ASN/FM&C

Financial Managers—Civilians

Average number of years

0

5

10

15

20

25

30

Senior Executives (6)

Managers by grade (number at each grade)

Average years in other public/private sector

Average years in DOD

Figures II.3 and II.4 show the number of officers and civilians 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. Financial analysis was the

function performed most frequently. A review of the profiles also showed

that three civilians had performed three or more of these functions.

Page 38 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix II 

Profiles of Office of the Assistant Secretary

of the Navy (Financial Management and

Comptroller) Respondents

Figure II.3: Experience in Financial

Management Functions Reported by

ASN/FM&C Financial

Managers—Officers

Number of managers performing function (total = 1 respondent)

0

1

2

Financial statement

preparation (0 years)

Financial reporting/acctg

policy (2 years)

Financial analysis (6 years)

Accounting operations (0 years)

Accounting systems (0 years)

Average years performing functions

0

1 1

0 0

Page 39 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix II 

Profiles of Office of the Assistant Secretary

of the Navy (Financial Management and

Comptroller) Respondents

Figure II.4: Experience in Financial

Management Functions Reported by

ASN/FM&C Financial

Managers—Civilians

Number of managers performing function (total = 6 respondents)

0

2

4

6

8

Financial statement

preparation (4 years)

Financial reporting/acctg

policy (2 years)

Financial analysis (17 years)

Accounting operations (7 years)

Accounting systems (5 years)

Average years performing functions

1

3

6

2 2

Training Completed

During 1995 and 1996

Figure II.5 shows the training reported by the seven respondents as being

completed during 1995 and 1996.

Page 40 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix II 

Profiles of Office of the Assistant Secretary

of the Navy (Financial Management and

Comptroller) Respondents

Figure II.5: Training Reported by

ASN/FM&C Financial Managers as

Being Completed During 1995 and

1996

Number of managers (total = 7 respondents)

0

1

2

3

4

5

6

7

Accounting and

general training

Accounting, financial, and general training

Financial and general training

General training only

No training

Categories of training

1 1 1

3

1

A review of the profiles showed

• total receiving accounting-related training: two civilians,

• total receiving financial-related training: two civilians,

• total receiving training in general topics: six civilians, and

• total not receiving training: one officer.

Professional

Certifications Held

A review of the profiles showed that, of the two respondents reporting one

or more professional certifications,

• one civilian was a CPA and CGFM and held another financial certification

and

• the officer held another financial management certification.

Page 41 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix II 

Profiles of Office of the Assistant Secretary

of the Navy (Financial Management and

Comptroller) Respondents

Five civilians did not hold any professional certifications. Figure II.6

shows the types of professional certifications reported by the ASN/FM&C

financial managers.

Figure II.6: Professional Certifications

Reported by ASN/FM&C Financial

Managers

Number of managers (total = 7 respondents)

0

1

2

3

4

5

6

7

CPA,

CGFM,

and

OFMC

OFMC

only

None

Types of certifications held

1 1

5

CPA: Certified Public Accountant

CGFM: Certified Government Financial Manager

OFMC: Other financial management certifications

Page 42 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix III 

Profiles of Navy Operational Command and

Installation Respondents

The four Navy operational commands included in this review, shown

below, managed O&M and working capital fund budgets totaling

$10.8 billion during fiscal year 1997:

• U.S. Atlantic Fleet,

• U.S. Pacific Fleet,

• U.S. Navy in Europe, and

• Military Sealift Command.

Surveys were distributed to 128 financial managers; 74 responded,

representing the four operational commands1

 and 34 of their 50

installations. Table III.1 shows the number of installations responding by

major command, the number of key financial managers surveyed within

each command, and the number responding to this review. The table also

shows the O&M funding budgeted for fiscal year 1997 for three of the major

commands, and the working capital fund budget for the Military Sealift

Command.

Table III.1: Navy Operational

Commands’ Key Financial Manager

Population and Respondents and

Budgets for Fiscal Year 1997

Commands (and

number of

installations)

responding

Financial

managers surveyed

Financial manager

respondents

Budgets

(in billions)

U.S. Atlantic Fleet (15) 55 27 $4.6

U.S. Pacific Fleet (12) 50 27 4.8

U.S. Navy in Europe (2) 9 8 .3

Military Sealift

Command (5)

14 12 1.1

Total (34) 128 74 $10.8

Note: Budgets are operation and maintenance for each command, except the Military Sealift

Command (MSC). MSC is a working capital fund activity.

The 74 respondents included 29 comptrollers, 18 deputy comptrollers, and

27 budget officers. Table III.2 shows the officer and civilian composition of

the respondents, by rank and grade, respectively.

1

As the Naval Facilities Engineering Command’s two construction battalions are operational in nature,

they are included in our review of operational organizations.

Page 43 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix III 

Profiles of Navy Operational Command and

Installation Respondents

Table III.2: Number of Officer and

Civilian Respondents Officers Civilians

Rank Number Grade Number

Rear Admiral (O-7) 0 Senior Executive 1

Captain (O-6) 5 15 6

Commander (O-5) 11 14 6

Lieutenant Commander 

(O-4)

3 13 16

Lieutenant (O-3) 4 12 20

Lieutenant (junior grade)

(O-2)

0 11 2

Total 23 Total 51

Formal Education

Attained

As shown in table III.3, 58 of the 74 respondents held bachelor’s degrees,

with 1 reporting two majors. The major for 15 of these managers was

accounting, while 27 managers reported other business-related majors.

Table III.3: Bachelor’s Degree Majors

Reported by Navy Operational

Command and Installation Financial

Managers

Number of bachelor’s degree majors

Majors Officers Civilians

Total degrees by

major

Accounting 2 13 15

Other business 12 15 27

Nonbusiness 9 8 17

Total degrees 23 36 59

As shown in table III.4, 31 respondents also held master’s degrees, with 3

reporting more than one major. Three managers held a master’s degree in

accounting, while 25 managers listed one or more other business-related

majors.

Table III.4: Master’s Degree Majors

Reported by Navy Operational

Command and Installation Financial

Managers

Number of master’s degree majors

Majors Officers Civilians

Total degrees by

major

Accounting 2 1 3

Other business 19 7 26

Nonbusiness 2 3 5

Total degrees 23 11 34

Page 44 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix III 

Profiles of Navy Operational Command and

Installation Respondents

Sixty-eight of the 74 respondents reported completing one or more

courses in accounting-related subjects, as follows:

• 1-2 subjects: 9 (3 officers and 6 civilians),

• 3-5 subjects: 16 (4 officers and 12 civilians), and

• 6 or more subjects: 43 (16 officers and 27 civilians).

Based solely on a review of their formal education, 14 officers and 27

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 23 officers, with a range

of 9 to 30 years, and 30 years for the 51 civilians, with a range of 12 to 45

years. With two exceptions, the 74 respondents had spent most of their

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

for the officers and by grade for the civilians, respectively.

Page 45 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix III 

Profiles of Navy Operational Command and

Installation Respondents

Figure III.1: Professional Work

Experience Reported by Navy

Operational Command and Installation

Financial Managers—Officers

Average number of years

0

5

10

15

20

25

30

35

40

Captain (5)

Commander (11)

Lieutenant Commander (3)

Lieutenant (4)

Managers by rank (number at each rank)

Average years in other public/private

Average years in DOD

Page 46 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix III 

Profiles of Navy Operational Command and

Installation Respondents

Figure III.2: Professional Work

Experience Reported by Navy

Operational Command and Installation

Financial Managers—Civilians

Average number of years

0

5

10

15

20

25

30

35

40

SES (1) GS-15

(6)

GS-14

(6)

GS-13

(16)

GS-12

(20)

GS-11

(2)

Managers by grade (number at each grade)

Average years in other public/private

Average years in DOD

Figures III.3 and III.4 show the number of officers and civilians 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. Financial analysis was the

function performed most frequently. A review of the profiles also showed

that 16 officers and 33 civilians had performed three or more of these

functions.

Page 47 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix III 

Profiles of Navy Operational Command and

Installation Respondents

Figure III.3: Experience in Financial

Management Functions Reported by

Navy Operational Command and

Installation Financial

Managers—Officers

Number of managers performing function (total = 23 respondents)

0

5

10

15

20

25

Financial statement

preparation (4 years)

Financial reporting/acctg

policy (5 years)

Financial analysis (5 years)

Accounting operations (4 years)

Accounting systems (2 years)

Average years performing functions

15

16

19

15

5

Page 48 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix III 

Profiles of Navy Operational Command and

Installation Respondents

Figure III.4: Experience in Financial

Management Functions Reported by

Navy Operational Command and

Installation Financial

Managers—Civilians

Number of managers performing functions (total = 51 respondents)

0

5

10

15

20

25

30

35

40

45

50

55

Financial statement

preparation (6 years)

Financial reporting/acctg

policy (13 years)

Financial analysis (14 years)

Accounting operations (7 years)

Accounting systems (6 years)

Average years performing functions

24

38

50

33

18

Training Completed

During 1995 and 1996

Figure III.5 shows the training reported by the 74 respondents as being

completed during 1995 and 1996.

Page 49 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix III 

Profiles of Navy Operational Command and

Installation Respondents

Figure III.5: Training Reported by Navy

Operational Command and Installation

Financial Managers as Being

Completed During 1995 and 1996

Number of managers (total = 74 respondents)

0

15

30

45

60

75

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

2 2

6

20

3

10

14

17

A review of the profiles showed

• total receiving accounting-related training: 30 (9 officers and 21 civilians),

• total receiving financial-related training: 35 (11 officers and 24 civilians),

• total receiving training in general topics: 50 (10 officers and 40 civilians),

and

• total not receiving training: 17 (9 officers and 8 civilians).

Professional

Certifications Held

A review of the profiles showed that, of the 17 managers reporting one or

more professional certificates,

• 4 were CPAs (1 officer and 3 civilians),

• 10 were CGFMs (1 officer and 9 civilians),

• 3 held other financial management certifications (2 officers and 1 civilian),

and

Page 50 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix III 

Profiles of Navy Operational Command and

Installation Respondents

• 2 held nonfinancial management certifications (1 officer and 1 civilian).

Of the 57 managers that did not hold any professional certifications, 19

were officers and 38 were civilians. Figure III.6 shows the types of

professional certifications reported by the Navy operational command and

installation financial managers.

Figure III.6: Professional Certifications

Reported by Navy Operational

Command and Installation Financial

Managers

Number of managers (total = 74 respondents)

0

15

30

45

60

75

CPA

only

CPA

and

CGFM

CGFM

only

CGFM

and

NFMC

OFMC

only

NFMC

only

None

Types of certification held

3 1

8

1 3 1

57

CPA: Certified Public Accountant

CGFM: Certified Government Financial Manager

OFMC: Other financial management certifications

NFMC Nonfinancial management certifications

Page 51 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix IV 

Profiles of Chief of Naval Education and

Training (CNET) and Installation

Respondents

CNET managed an O&M budget of $1.1 billion for fiscal year 1997. Twelve of

the 17 key financial managers from CNET (representing six of its seven

installations) provided information on their qualifications and experience,

including 6 comptrollers, 1 deputy comptroller, and 5 budget officers.

Table IV.1 shows the officer and civilian composition of the 12

respondents, by grade and rank, respectively.

Table IV.1: Number of Officer and

Civilian Respondents Officers Civilians

Rank Number Grade Number

Rear Admiral (O-7) 0 Senior Executive 1

Captain (O-6) 0 15 1

Commander (O-5) 1 14 1

Lieutenant Commander 

(O-4)

0 13 1

Lieutenant (O-3) 0 12 5

Lieutenant (junior grade)

(O-2)

0 11 2

Total 1 Total 11

Formal Education

Attained

As shown in table IV.2, 10 respondents held bachelor’s degrees, with 1

reporting more than one major. Five managers majored in accounting,

while four managers reported other business-related majors.

Table IV.2: Bachelor’s Degree Majors

Reported by Naval Education and

Training Command and Installation

Financial Managers

Number of bachelor’s degree majors

Majors Officers Civilians

Total degrees by

major

Accounting 0 5 5

Other business 0 4 4

Nonbusiness 1 1 2

Total degrees 1 10 11

As shown in table IV.3, two respondents also held master’s degrees, with

one reporting two majors. The major for one of the two managers was

business related.

Page 52 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix IV 

Profiles of Chief of Naval Education and

Training (CNET) and Installation

Respondents

Table IV.3: Master’s Degree Majors

Reported by Naval Education and

Training Command and Installation

Financial Managers

Number of master’s degree majors

Majors Officers Civilians

Total degrees by

major

Accounting 0 0 0

Other business 0 1 1

Nonbusiness 2 0 2

Total degrees 2 1 3

Nine of the 12 respondents reported completing one or more courses in

accounting-related subjects, as follows:

• 1-2 subjects: 1 officer,

• 3-5 subjects: 2 civilians, and

• 6 or more subjects: 6 civilians.

Based solely on a review of their formal education, the six 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 number of years of professional

work experience for the officer was 19 years and the average number of

years was 30 years for the 11 civilians, with a range of 14 to 37 years. 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

officer and by grade for the 11 civilians, respectively.

Page 53 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix IV 

Profiles of Chief of Naval Education and

Training (CNET) and Installation

Respondents

Figure IV.1: Professional Work

Experience Reported by Naval

Education and Training Command and

Installation Financial

Managers—Officers

Average number of years

0

5

10

15

20

25

30

35

40

Commander (1)

Managers by rank (number at each rank)

Average years in other public/private sector

Average years in DOD

Page 54 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix IV 

Profiles of Chief of Naval Education and

Training (CNET) and Installation

Respondents

Figure IV.2: Professional Work

Experience Reported by Naval

Education and Training Command and

Installation Financial

Managers—Civilians

Average number of years

0

5

10

15

20

25

30

35

40

SES (1) GS-15

(1)

GS-14

(1)

GS-13

(1)

GS-12

(5)

GS-11

(2)

Managers by grade (number at each grade)

Average years in other public/private

Average years in DOD

Figures IV.3 and IV.4 show the number of officers and civilians 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. The financial management

function performed most frequently was financial analysis. A review of the

profiles also showed that the officer and six civilians had performed three

or more of these functions.

Page 55 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix IV 

Profiles of Chief of Naval Education and

Training (CNET) and Installation

Respondents

Figure IV.3: Experience in Financial

Management Functions Reported by

Naval Education and Training

Command and Installation Financial

Managers—Officers

Number of managers performing function (total = 1 respondent)

0

1

2

Financial statement

preparation (2 years)

Financial reporting/acctg

policy (2 years)

Financial analysis (2 years)

Accounting operations (2 years)

Accounting systems (2 years)

Average years performing functions

1 1 1 1 1

Page 56 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix IV 

Profiles of Chief of Naval Education and

Training (CNET) and Installation

Respondents

Figure IV.4: Experience in Financial

Management Functions Reported by

Naval Education and Training

Command and Installation Financial

Managers—Civilians

Number of managers performing function (total = 11 respondents)

0

5

10

15

Financial statement

preparation (5 years)

Financial reporting/acctg

policy (12 years)

Financial analysis (17 years)

Accounting operations (9 years)

Accounting systems (5 years)

Average years performing functions

5

11 11

5

4

Training Completed

During 1995 and 1996

Figure IV.5 shows the training reported by 12 respondents as being

completed during 1995 and 1996.

Page 57 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix IV 

Profiles of Chief of Naval Education and

Training (CNET) and Installation

Respondents

Figure IV.5: Training Reported by

Naval Education and Training

Command and Installation Financial

Managers as Being Completed During

1995 and 1996

Number of managers (total = 12 respondents)

0

2

4

6

8

10

12

Accounting and

general training

Accounting, financial, and general training

Financial and general training

General training only

No training

Categories of training

1

6

1

3

1

A review of the profiles showed

• total receiving accounting-related training: 7 (1 officer and 6 civilians),

• total receiving financial-related training: 7 (1 officer and 6 civilians),

• total receiving training in general topics: 11 (1 officer and 10 civilians), and

• total not receiving training: 1 civilian.

Professional

Certifications Held

None of the 12 respondents reported holding professional certifications.

Page 58 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix V 

Profiles of Navy Working Capital Fund

Respondents

The 28 Navy working capital fund installations, including shipyards,

weapons centers, aviation depots, supply centers, and public work

centers, managed a fiscal year 1997 budget of $12.5 billion budget, derived

from their customers’ O&M accounts. Forty-nine1

 of the 79 financial

managers at the Naval Sea Systems Command, Naval Air Systems

Command, Naval Supply Systems Command, and Naval Facilities

Engineering Command and 19 of their installations provided information

on their qualifications and experience. The 49 respondents included 18

comptrollers, 14 deputy comptrollers, 15 budget officers, and 2 working

capital fund managers. Table V.1 provides the ranks of the 8 officers and

grades of the 41 civilians.

Table V.1: Number of Officer and

Civilian Respondents Officers Civilians

Rank Number Grade Number

Rear Admiral (O-7) 0 Senior Executive 3

Captain (O-6) 5 15 9

Commander (O-5) 2 14 12

Lieutenant Commander 

(O-4)

1 13 10

Lieutenant (O-3) 0 12 6

Lieutenant (junior grade)

(O-2)

0 11 1

Total 8 Total 41

Formal Education

Attained

As shown in table V.2, 44 of the 49 respondents held bachelor’s degrees,

with 1 reporting more than one major. Fifteen managers majored in

accounting, while 20 managers reported other business-related majors.

Table V.2: Bachelor’s Degree Majors

Reported by Navy Working Capital

Fund Financial Managers

Number of bachelor’s degree majors

Major Officers Civilians

Total degrees by

major

Accounting 1 14 15

Other business 5 15 20

Nonbusiness 3 7 10

Total degrees 9 36 45

1

The comptrollers and deputy comptrollers at Naval Sea Systems Command and Naval Air Systems

Command and the budget officer at Naval Air Systems Command were included in our review of the

working capital fund and systems command financial managers because these officials have oversight

responsibilities in both organizations.

Page 59 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix V 

Profiles of Navy Working Capital Fund

Respondents

As shown in table V.3, 23 respondents also held master’s degrees, with 1

reporting two majors. One manager reported a master’s degree in

accounting and 17 managers listed other business-related majors.

Table V.3: Master’s Degree Majors

Reported by Navy Working Capital

Fund Financial Managers

Number of master’s degree majors

Majors Officers Civilians

Total degrees by

major

Accounting 0 1 1

Other business 7 10 17

Nonbusiness 2 4 6

Total degrees 9 15 24

Forty-eight of the 49 respondents reported completing one or more

courses in accounting-related subjects, as follows:

• 1-2 subjects: 4 (1 officer and 3 civilians),

• 3-5 subjects: 13 (3 officers and 10 civilians), and

• 6 or more subjects: 31 (4 officers and 27 civilians).

Based solely on a review of their formal education, the 4 officers and 26

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 8 officers, with a range

of 4 to 33 years, and 27 years for the 41 civilians, with a range of 8 to 55

years. 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 officers and by grade for the civilians, respectively.

Page 60 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix V 

Profiles of Navy Working Capital Fund

Respondents

Figure V.1: Professional Work

Experience Reported by Navy Working

Capital Fund Financial

Managers—Officers

Average number of years

0

5

10

15

20

25

30

35

Captain (5)

Commander (2)

Lieutenant Commander (1)

Managers by rank (number at each rank)

Average years in other public/private sector

Average years in DOD

Page 61 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix V 

Profiles of Navy Working Capital Fund

Respondents

Figure V.2: Professional Work

Experience Reported by Navy Working

Capital Fund Financial

Managers—Civilians

Average number of years

0

5

10

15

20

25

30

35

Senior Executives (3)

GS-15 (9)

GS-14 (12)

GS-13 (10)

GS-12 (6)

GS-11 (1)

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 officers and civilians 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. The financial management

function performed most frequently was financial analysis. A review of the

profiles also showed that 6 officers and 27 civilians had performed three

or more of these functions.

Page 62 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix V 

Profiles of Navy Working Capital Fund

Respondents

Figure V.3: Experience in Financial

Management Functions Reported by

Navy Working Capital Fund Financial

Managers—Officers

Number of managers performing function (total = 8 respondents)

0

2

4

6

8

Financial statement

preparation (3 years)

Financial reporting/acctg

policy (5 years)

Financial analysis (8 years)

Accounting operations (6 years)

Accounting systems (5 years)

Average years performing functions

5 5

7

6

1

Page 63 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix V 

Profiles of Navy Working Capital Fund

Respondents

Figure V.4: Experience in Financial

Management Functions Reported by

Navy Working Capital Fund Financial

Managers—Civilians

Number of managers performing function (total = 41 respondents)

0

5

10

15

20

25

30

35

40

45

Financial statement

preparation (8 years)

Financial reporting/acctg

policy (11 years)

Financial analysis (14 years)

Accounting operations (7 years)

Accounting systems (6 years)

Average years performing functions

22

28

39

27

14

Training Completed

During 1995 and 1996

Figure V.5 shows the training reported by the 49 respondents as being

completed during 1995 and 1996.

Page 64 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix V 

Profiles of Navy Working Capital Fund

Respondents

Figure V.5: Training Reported by Navy

Working Capital Fund Financial

Managers as Being Completed During

1995 and 1996

Number of managers (total = 49 respondents)

0

5

10

15

20

25

30

35

40

45

50

Accounting and

general training

Accounting, financial, and general training

Financial and general training

General training only

None

Categories of training

2

13

16 15

3

A review of the profiles showed

• total receiving accounting-related training: 15 (3 officers and 12 civilians),

• total receiving financial-related training: 29 (3 officers and 26 civilians),

• total receiving training in general topics: 46 (7 officers and 39 civilians),

and

• total not receiving training: 3 (1 officer and 2 civilians).

Professional

Certifications Held

A review of the profiles showed that, of the 10 managers holding one or

more professional certifications,

• 3 civilians were CPAs,

• 6 were CGFMs (1 officer and 5 civilians),

• 2 civilians held other financial management certifications, and

• 1 civilian held nonfinancial management certifications.

Page 65 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix V 

Profiles of Navy Working Capital Fund

Respondents

Of the 39 managers that did not hold any professional certifications, 7

were officers and 32 were civilians. Figure V.6 shows the types of

professional certifications reported by the Navy working capital fund key

financial managers.

Figure V.6: Professional Certifications

Reported by Navy Working Capital

Fund Financial Managers

Number of managers (total = 49 respondents)

0

5

10

15

20

25

30

35

40

45

50

CPA

only

CPA

and

CGFM

CGFM

only

CGFM

and

NFMC

OFMC

only

None

Types of certifications held

2 1

4

1 2

39

CPA: Certified Public Accountant

CGFM: Certified Government Financial Manager

OFMC: Other financial management certifications

NFMC: Nonfinancial management certifications

Page 66 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VI 

Profiles of Navy Systems Command

Respondents

In addition to overseeing their respective working capital fund activities,

the Naval Sea Systems Command and Naval Air Systems Command also

have oversight of the development of Navy systems. These commands

managed an O&M budget of $5.0 billion, a RDT&E budget of $4.5 billion, and a

procurement budget of $15.3 billion during fiscal year 1997.

Twenty-four of the 37 key financial managers at these commands1

 and 9 of

their 13 installations provided information on their qualifications and

experience. The 24 included 9 comptrollers, 7 deputy comptrollers, and 8

budget officers. Table VI.1 shows the officer and civilian composition of

the 24 respondents.

Table VI.1: Number of Officer and

Civilian Respondents Officers Civilians

Rank Number Grade Number

Rear Admiral (O-7) 0 Senior Executive 2

Captain (O-6) 2 15 8

Commander (O-5) 0 14 7

Lieutenant Commander

(O-4)

0 13 5

Lieutenant (O-3) 0 12 0

Lieutenant (junior grade)

(O-2)

0 11 0

Total 2 Total 22

Formal Education

Attained

As shown in table VI.2, 23 of the 24 respondents held bachelor’s degrees,

with 1 also reporting two majors. Seven of these managers majored in

accounting, while 10 managers reported other business-related majors.

Table VI.2: Bachelor’s Degree Majors

Reported by Navy Systems Command

Financial Managers

Number of bachelor’s degree majors

Majors Officers Civilians

Total degrees by

major

Accounting 0 7 7

Other business 2 8 10

Nonbusiness 0 7 7

Total degrees 2 22 24

1

The comptrollers and deputy comptrollers at Naval Sea Systems Command and Naval Air Systems

Command and the budget officer at Naval Air Systems Command were included in our review of the

working capital fund and systems command financial managers because these officials have oversight

responsibilities in both organizations.

Page 67 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VI 

Profiles of Navy Systems Command

Respondents

As shown in table VI.3, 12 respondents also held master’s degrees. One

manager reported a master’s degree in accounting and eight managers

listed other business-related majors.

Table VI.3: Master’s Degree Majors

Reported by Navy Systems Command

Financial Managers

Number of master’s degree majors

Majors Officers Civilians

Total degrees by

major

Accounting 0 1 1

Other business 2 6 8

Nonbusiness 0 3 3

Total degrees 2 10 12

Twenty-three of the 24 respondents reported completing one or more

courses in accounting-related subjects, as follows:

• 1-2 subjects: 2 civilians,

• 3-5 subjects: 7 civilians, and

• 6 or more subjects: 14 (2 officers and 12 civilians).

Based solely on a review of their formal education, the respondents 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 years of professional

work experience was 26 years for the 2 officers, with a range of 24 to 27

years, and 27 years for the 22 civilians, with a range of 16 to 55 years. With

one exception, 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 2 officers and by grade for the 22 civilians,

respectively.

Page 68 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VI 

Profiles of Navy Systems Command

Respondents

Figure VI.1: Professional Work

Experience Reported by Navy Systems

Command Financial

Managers—Officers

Average number of years

0

5

10

15

20

25

30

35

Captain

(2)

Managers by rank (number at each rank)

Average years in other public/private sector

Average years in DOD

Page 69 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VI 

Profiles of Navy Systems Command

Respondents

Figure VI.2: Professional Work

Experience Reported by Navy Systems

Command Financial

Managers—Civilians

Average number of years

0

5

10

15

20

25

30

35

Senior Executives (2)

GS-15 (8)

GS-14 (7)

GS-13 (5)

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 officers and civilians 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. The financial management

function performed most frequently was financial analysis. A review of the

profiles also showed that one officer and nine civilians had performed

three or more of these functions.

Page 70 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VI 

Profiles of Navy Systems Command

Respondents

Figure VI.3: Experience in Financial

Management Functions Reported by

Navy Systems Command Financial

Managers—Officers

Number of managers performing function (total = 2 respondents)

0

1

2

3

Financial statement

preparation (3 years)

Financial reporting/acctg

policy (4 years)

Financial analysis (6 years)

Accounting operations (3 years)

Accounting systems (0 years)

Average years performing functions

1

2

1 1

0

Page 71 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VI 

Profiles of Navy Systems Command

Respondents

Figure VI.4: Experience in Financial

Management Functions Reported by

Navy Systems Command Financial

Managers—Civilians

Number of managers performing function (total = 22 respondents)

0

5

10

15

20

25

Financial statement

preparation (6 years)

Financial reporting/acctg

policy (10 years)

Financial analysis (13 years)

Accounting operations (8 years)

Accounting systems (3 years)

Average years performing functions

8

15

22

9 9

Training Completed

During 1995 and 1996

Figure VI.5 shows the training reported by the 24 respondents as being

completed during 1995 and 1996.

Page 72 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VI 

Profiles of Navy Systems Command

Respondents

Figure VI.5: Training Reported by Navy

Systems Command Financial

Managers as Being Completed During

1995 and 1996

Number of managers (total = 24 respondents)

0

5

10

15

20

25

Accounting and

general training

Accounting, financial, and general training

Financial and general training

General training only

No training

Categories of training

3

4

5

7

5

A review of the profiles showed

• total receiving accounting-related training: 7 (1 officer and 6 civilians),

• total receiving financial-related training: 9 (1 officer and 8 civilians),

• total receiving training in general topics: 19 (2 officers and 17 civilians),

and

• total not receiving training: 5 civilians.

Professional

Certifications Held

A review of the profiles showed that, of the eight managers reporting one

or more professional certifications,

• five civilians were CPAs,

• four were CGFMs (one officer and three civilians), and

• two civilians held nonfinancial management certifications.

Page 73 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VI 

Profiles of Navy Systems Command

Respondents

Of the 16 managers that did not hold any professional certifications, 1 was

an officer and 15 were civilians. Figure VI.6 shows the types of

professional certifications reported by the Navy systems command key

financial managers.

Figure VI.6: Professional Certifications

Reported by Navy Systems Command

Financial Managers

Number of managers (total = 24 respondents)

0

5

10

15

20

25

CPA

only

CPA,

CGFM,

and

NFMC

CGFM

only

CGFM

and

NFMC

None

Types of certifications held

4

1

2

1

16

CPA: Certified Public Accountant

CGFM: Certified Government Financial Manager

OFMC: Other financial management certifications

NFMC: Nonfinancial management certifications

Page 74 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VII 

Profiles of Marine Corps Respondents

The Marine Corps managed an O&M budget of $1.8 billion, a RDT&E budget

of $266.4 million, and a procurement budget of $580.7 million during fiscal

year 1997. Thirty-three of the 44 key financial managers (representing the

Headquarters, U.S. Marine Corps and 12 of its 17 commands and

installations) provided information on their qualifications and experience,

including 11 comptrollers, 9 deputy comptrollers, and 13 budget officers.

Table VII.1 shows the officer and civilian composition of the respondents

by rank and grade, respectively.

Table VII.1: Number of Officer and

Civilian Respondents Officers Civilians

Rank Number Grade Number

Brigadier General (O-7) 0 Senior Executive 1

Colonel (O-6) 3 15 5

Lieutenant Colonel (O-5) 3 14 5

Major (O-4) 4 13 6

Captain (O-3) 1 12 4

First Lieutenant (O-2) 0 11 1

Total 11 Total 22

Formal Education

Attained

As shown in table VII.2, 29 of the 33 respondents held bachelor’s degrees.

Six managers majored in accounting, while 14 managers reported other

business-related majors.

Table VII.2: Bachelor’s Degree Majors

Reported by Marine Corps Financial

Managers

Number of bachelor’s degree majors

Majors Officers Civilians

Total degrees by

major

Accounting 1 5 6

Other business 5 9 14

Nonbusiness 5 4 9

Total degrees 11 18 29

As shown in table VII.3, 13 respondents also held master’s degrees, with 3

reporting more than one major. The majors for these managers were

business related.

Page 75 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VII 

Profiles of Marine Corps Respondents

Table VII.3: Master’s Degree Majors

Reported by Marine Corps Financial

Managers

Number of master’s degree majors

Majors Officers Civilians

Total degrees by

major

Accounting 0 0 0

Other business 11 5 16

Nonbusiness 0 0 0

Total degrees 11 5 16

Twenty-nine of the 33 respondents reported completing one or more

courses in accounting-related subjects, as follows:

• 1-2 subjects: 2 civilians,

• 3-5 subjects: 7 (2 officers and 5 civilians), and

• 6 or more subjects: 20 (8 officers and 12 civilians).

Based solely on a review of their formal education, the respondents 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 years of professional

work experience was 21 years for the 11 officers, with a range of 15 to 28

years, and 26 years for the 22 civilians, with a range of 12 to 42 years. The

respondents had spent most of their careers in DOD. Figures VII.1 and VII.2

show the average number of years of work experience by rank for the

officers and by grade for the civilians, respectively.

Page 76 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VII 

Profiles of Marine Corps Respondents

Figure VII.1: Professional Work

Experience Reported by Marine Corps

Financial Managers—Officers

Average number of years

0

5

10

15

20

25

30

35

Colonel (3)

Lieutenant Colonel(3)

Major (4)

Captain (1)

Managers by rank (number at each rank)

Average years in other public/private sector

Average years in DOD

Page 77 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VII 

Profiles of Marine Corps Respondents

Figure VII.2: Professional Work

Experience Reported by Marine Corps

Financial Managers—Civilians

Average number of years

0

5

10

15

20

25

30

35

Senior Executives (1)

GS-15 (5)

GS-14 (5)

GS-13 (6)

GS-12 (4)

GS-11 (1)

Managers by grade (number at each grade)

Average years in other public/private sector

Average years in DOD

Figures VII.3 and VII.4 show the number of officers and civilians 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. The financial management

function performed most frequently was financial analysis. A review of the

profiles also showed that 7 officers and 13 civilians had performed three

or more of these functions.

Page 78 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VII 

Profiles of Marine Corps Respondents

Figure VII.3: Experience in Financial

Management Functions Reported by

Marine Corps Financial

Managers—Officers

Number of managers performing function (total = 11 respondents)

0

2

4

6

8

10

12

Financial statement

preparation (3 years)

Financial reporting/acctg

policy (10 years)

Financial analysis (10 years)

Accounting operations (6 years)

Accounting systems (3 years)

Average years performing functions

2

8

10

7

4

Page 79 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VII 

Profiles of Marine Corps Respondents

Figure VII.4: Experience in Financial

Management Functions Reported by

Marine Corps Financial

Managers—Civilians

Number of managers performing function (total = 22 respondents)

0

5

10

15

20

25

Financial statement

preparation (9 years)

Financial reporting/acctg

policy (11 years)

Financial analysis (14 years)

Accounting operations (5 years)

Accounting systems (9 years)

Average years performing functions

12

20

21

12

5

Training Completed

During 1995 and 1996

Figure VII.5 shows the training reported by the 33 respondents as being

completed during 1995 and 1996.

Page 80 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VII 

Profiles of Marine Corps Respondents

Figure VII.5: Training Reported by

Marine Corps Financial Managers as

Being Completed During 1995 and

1996

Number of managers (total = 33 respondents)

0

5

10

15

20

25

30

35

Accounting and

financial training

Accounting and

general training

Accounting, financial, and general training

Financial training only

Financial and general training

General training only

None

Categories of training

1 1

8

1

8

6

8

A review of the profiles showed

• total receiving accounting-related training: 10 (4 officers and 6 civilians),

• total receiving financial-related training: 18 (6 officers and 12 civilians),

• total receiving training in general topics: 23 (5 officers and 18 civilians),

and

• total not receiving training: 8 (5 officers and 3 civilians).

Professional

Certifications Held

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

more professional certifications,

• three were CGFMs (one officer and two civilians),

• two civilians held other financial management certifications, and

• one civilian held nonfinancial management certifications.

Page 81 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VII 

Profiles of Marine Corps Respondents

Of the 27 managers that did not hold any professional certifications, 10

were officers and 17 were civilians. Figure VII.6 shows the types of

professional certifications reported by the Marine Corps financial

managers.

Figure VII.6: Professional

Certifications Reported by Marine

Corps Financial Managers

Number of managers (total = 33 respondents)

0

5

10

15

20

25

30

35

CGFM

only

OFMC

only

NFMC

only

None

Types of certifications held

3 2 1

27

CGFM: Certified Government Financial Manager

OFMC: Other financial management certifications

NFMC: Nonfinancial management certifications

Page 82 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix VIII 

Comments From the Department of the

Navy

Page 83 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Appendix IX 

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

Donald H. Lentz, Auditor-in-Charge

Patricia A. Summers, Senior Auditor

Linda J. Brigham, Senior Auditor

Jan E. Bogus, Senior Auditor

Francine M. DelVecchio, Communications Analyst

Michelle A. Howard, Intern

(918911) Page 84 GAO/AIMD-98-86 Profile of Navy and Marine Corps Financial Managers
Ordering Information

The first copy of each GAO report and testimony is free.

Additional copies are $2 each. Orders should be sent to the

following address, accompanied by a check or money order

made out to the Superintendent of Documents, when

necessary. VISA and MasterCard credit cards are accepted, also.

Orders for 100 or more copies to be mailed to a single address

are discounted 25 percent.

Orders by mail:

U.S. General Accounting Office

P.O. Box 37050

Washington, DC 20013

or visit:

Room 1100

700 4th St. NW (corner of 4th and G Sts. NW)

U.S. General Accounting Office

Washington, DC

Orders may also be placed by calling (202) 512-6000 

or by using fax number (202) 512-6061, or TDD (202) 512-2537.

Each day, GAO issues a list of newly available reports and

testimony. To receive facsimile copies of the daily list or any

list from the past 30 days, please call (202) 512-6000 using a

touchtone phone. A recorded menu will provide information on

how to obtain these lists.

For information on how to access GAO reports on the INTERNET,

send an e-mail message with "info" in the body to:

info@www.gao.gov

or visit GAO’s World Wide Web Home Page at:

http://www.gao.gov

PRINTED ON RECYCLED PAPER
United States

General Accounting Office

Washington, D.C. 20548-0001

Official Business

Penalty for Private Use $300

Address Correction Requested

Bulk Rate

Postage & Fees Paid

GAO

Permit No. G100