Financial Management: Profile of Army Financial Managers
Published: 1998-02-25T00:00:00

Fast Facts:

Highlights:
section_title: Why GAO Did This Study
paragraphs: Pursuant to a legislative requirement, GAO provided information on the qualifications, including formal education, professional work experience, training, and professional certifications of personnel serving in key financial management positions in the Army.
section_title: What GAO Found
paragraphs: GAO noted that: (1) the four Army financial management executives included in its review are the Assistant Secretary of the Army (Financial Management and Comptroller), the Principal Deputy Assistant Secretary of the Army (Financial Management and Comptroller), the Deputy Assistant Secretary of the Army for Financial Operations, and the Deputy Assistant Secretary of the Army for Budget; (2) each of the executives had attained master's degrees; (3) the Assistant Secretary had spent 30 years at the Department of Defense (DOD); (4) the Deputy Assistant Secretaries had DOD careers ranging from 29 to 38 years, with one of the three also spending part of his career in the private sector; (5) two of the executives held certifications in government financial management; and (6) of the 233 other key Army financial managers responding to GAO's review: (a) about 27 percent (63) were miliary officers, serving mainly as resource managers and budget officers at major commands and installations; and 73 percent (170) were civilian personnel serving mainly in resource manager and budget officer positions at installations; (b) all 63 officers and 148 of the 170 civilians reported holding bachelor's degrees, with 17 of these respondents reporting more than one major; (c) about one-third of these 211 managers majored in accounting, while approximately 40 percent reported degrees in business-related majors other than accounting; (d) 132 respondents (53 officers and 79 civilians) also reported holding advanced degrees, with 17 of these respondents reporting more than one major; (e) five of the 132 managers held master's degrees in accounting, while about 75 percent reported degrees in business-related majors other than accounting; (f) the officers' careers ranged from 10 to 31 years, averaging 23 years, while civilians' careers ranged from 15 to 42 years, averaging 27 years; (g) 163 respondents reported completing training in one or more of the categories included in GAO's review during 1995 and 1996; (h) about 20 percent of the 233 respondents reported holding one or more professional certifications; and (i) of the 46 managers in this group, 44 reported holding accounting and other financial management-related certifications, as follows: 11 were Certified Public Accountants, 37 were Certified Government Financial Managers, and 2 held other certifications, including the Certified Cost Estimator/Analyst and Certified Internal Auditor.

section_title: Letter
paragraphs: As highlighted in our February 1997 high-risk series report, 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, professional work experience, training, and professional certifications of personnel serving in key financial management positions in DOD. Due to concerns on the part of DOD officials regarding the completeness of personnel databases and personnel files, we are obtaining this information from biographies and/or profile instruments provided by each manager.
This is the third 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 Army. We have already issued our reports on key financial managers within the Office of the Under Secretary of Defense (Comptroller) and the Air Force and we plan to issue reports on the Department of the Navy and 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, such as formal education and training, of their financial management workforce, as necessary. In addition, the reports provide baseline information that can be helpful in monitoring progress. Our final report in this series will discuss the qualifications and professional work experience of personnel serving in key financial management positions across DOD relative to those in private sector companies and large state governments. We will also identify 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 Army financial management executives and 233 of 301 key financial managers representing 145 of the 187 Army organizations included in our review.
subsections: section_title: Requirements for Financial Managers
paragraphs: 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 Management Improvement Program (JFMIP) have made proposals addressing the recruitment, training, retention, and performance of federal financial management personnel. In November 1995, JFMIP published the Framework for Core Competencies for Financial Management Personnel in the Federal Government, 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.
section_title: Objective, Scope, and Methodology
paragraphs: 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 Army. We obtained this information from biographies and profile instruments due to the concerns of Army officials regarding the completeness of personnel databases and personnel files. We worked with Army officials to determine the key financial management positions to be included in this review. These positions typically included resource managers, deputy resource managers, and budget officers serving at Army major commands and installations. As agreed with the Army, 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 through December 1997 in accordance with generally accepted government auditing standards. The Assistant Secretary of the Army (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 IX.
section_title: Profile of Army Financial Management Executives
paragraphs: Table 1 provides information on the formal education, careers, and professional certifications of the Department of the Army’s four executives included in our review. All four held both bachelor’s and master’s degrees. Bachelor’s degree majors included mathematics, education, accounting, and engineering, while those associated with master’s degrees included public administration, business administration, and civil engineering. The Assistant Secretary had spent 30 years at DOD. The three Deputy Assistant Secretaries’ DOD careers ranged from 29 to 38 years. In addition to his 38-year career at DOD, one of the Deputy Assistant Secretaries also spent 4 years in the private sector. A review of biographical information provided to us showed that three executives had served in financial management-related positions during most of their DOD careers. These positions involved the functional areas of accounting, auditing, budgeting, programming, costing, and manpower requirements at all levels of DOD, including another military department and various Defense agencies. While the fourth executive had served mainly in engineering-related positions during his 33-year DOD career, he had also recently served as Director of Resource Management at the U.S. Army Forces Command. Two executives were Certified Government Financial Managers.
section_title: Profile of Army Key Financial Managers
paragraphs: In collaboration with Army officials, we identified 301 financial managers across the department for this review, of which 233 (or 77 percent) responded by providing information on their qualifications and experience. Respondents included the 14 managers from the Office of the Assistant Secretary of the Army (Financial Management and Comptroller)—ASA(FM&C);
85 of 108 managers from eight operational commands and their
43 of 46 managers from the U.S. Army Training and Doctrine Command (TRADOC) and its installations;
30 of 43 managers from the U.S. Army Materiel Command and its (1) Industrial Operations Command and the Army arsenals and depots responsible for maintenance and manufacturing support and (2) seven systems commands responsible for the research, development, test, and evaluation (RDT&E) and procurement of Army systems, such as aviation, missiles, communications, and electronics;
32 of 59 managers from the U.S. Army Corps of Engineers and its
29 of 31 managers from other Army commands, including the Criminal Investigation Command, Military Entrance Processing Command, Medical Command, and Military District of Washington and their installations.
The 14 ASA(FM&C) respondents performed roles involving financial operations, financial management/accounting policy, and/or budget execution. The 219 respondents from major commands and installations included 132 resource managers, 26 deputy resource managers, 60 budget officers, and 1 working capital fund manager—the last being from the Industrial Operations Command.
Of the 233 respondents, 27 percent were military officers. The 63 officers served mainly as resource managers at major commands and installations, and the 170 civilians served most often in resource manager and budget officer positions at installations. Table 2 provides a breakout of the officers and civilians by rank and grade, respectively.
subsections: section_title: Formal Education Attained
paragraphs: Of the 233 respondents, over 90 percent (including the 63 officers and 148 of 170 civilians) reported holding bachelor’s degrees, and about 57 percent (53 officers and 79 civilians) reported holding master’s degrees. One of the respondents also reported holding a doctoral degree.
Of the 211 respondents holding bachelor’s degrees, 17 reported more than one major. A review of the profiles showed that 69 managers, or about one-third of the 211 respondents, reported accounting majors, 85 managers reported one or more other business-related majors, and 68 managers reported that one or more of their majors were not business related. Table 3 shows the bachelor’s degree majors reported by the 211 Army financial managers.
Of the 132 respondents holding master’s degrees, 17 reported more than one major. A review of the profiles showed that, of these 132 managers, 5 reported accounting majors, 99 reported one or more other business-related majors, and 41 reported one or more nonbusiness-related majors. Table 4 shows the master’s degree majors reported by the 132 respondents.
One civilian also reported holding a doctoral degree in public administration.
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 233 respondents, 207 reported completing one or more of these subjects, as follows:
1-2 subjects: 32 (6 officers and 26 civilians),
3-5 subjects: 51 (19 officers and 32 civilians), and
6 or more subjects: 124 (28 officers and 96 civilians).
Included in this latter group were 119 managers (or 51 percent of the respondents) who reported completing both principles of accounting and intermediate accounting along with at least four other subjects. Based solely on a review of their formal education, these 119 managers appear to have met the requirements to serve in federal GS-510 accountantpositions.
section_title: Professional Work Experience Acquired
paragraphs: A review of the profiles showed that the 63 officers’ careers ranged from 10 to 31 years, averaging 23 years, while the 170 civilians’ careers ranged from 15 to 42 years, averaging 27 years. Both officer and civilian respondents, with few exceptions, had spent most of their careers in DOD. Also, about 42 percent of all respondents, officers and civilians, reported performing several financial management-related functions 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.
In collaboration with Army officials, we identified four functions and associated tasks which are often performed by personnel serving in key financial management positions, including financial statement preparation/financial reporting/accounting policy—preparing annual financial statements and footnotes and any interim financial reports, as well as those advising the preparers in their application of accounting policies; 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; accounting systems development and maintenance—performing tasks associated with functional design and maintenance of accounting and finance systems.
Seventeen officers and 49 civilians (or about 30 percent of each group) reported that they had performed three or more of these functions during their careers. Figures 3 and 4 show, for the officers and civilians responding to this survey, which of these functions they had performed at sometime during their careers, and the average number of years of experience in each function. For example, as shown in figure 3, 50 of the 63 officers had performed financial analysis-related tasks for an average of 7 years.
section_title: Training Completed During 1995 and 1996
paragraphs: During 1995 and 1996, about 56 percent of the officers and 75 percent of the civilians reported completing some training in one or more of the categories included in our review. Of these 163 respondents (35 officers and 128 civilians) receiving training, (1) about 90 percent listed general topics, such as computers and supervision, as examples of the training they had completed, (2) about 50 percent reported completing training in financial-related topics, and (3) about 25 percent reported completing training in accounting-related topics, such as accounting standards and financial reporting. Also, a review of the profiles showed that 76 managers completed only general training and 70 other managers had not completed any training. Therefore, almost 63 percent of the 233 respondents had not received any accounting or financial training for those 2 years.
Figure 5 shows the training reported as being completed by the 233 respondents during the 2-year period.
A review of the profiles showed total receiving accounting-related training: 40 (10 officers and 30 civilians), total receiving financial-related training: 75 (21 officers and 54 civilians), total receiving training in general topics: 143 (26 officers and 117 civilians), and total not receiving training: 70 (28 officers and 42 civilians).
section_title: Professional Certifications Held
paragraphs: Almost 20 percent of the 233 respondents reported holding one or more professional certifications. A review of the profiles showed that, of these 46 managers,
11 civilians were CPAs,
37 were CGFMs (6 officers and 31 civilians),
2 civilians held other financial management-related certifications, including the Certified Cost Estimator/Analyst and Certified Internal Auditor, and
3 civilians reported nonfinancial management-related certifications.
Of the 187 managers that did not hold any professional certifications, 57 were officers and 130 were civilians. Figure 6 shows the types of certifications reported by the 233 Army financial managers.
Appendixes II through VIII provide the formal education, professional work experience, training, and professional certification data for the 63 officers and 170 civilians by their respective organizations, including:
ASA(FM&C) in appendix II;
8 operational commands and 50 of their 57 installations in appendix III; the U.S. Army Training and Doctrine Command and its 19 installations in appendix IV; the U.S. Army Materiel Command (AMC) and its Industrial Operations Command, and 8 of the 14 arsenals and depots in appendix V;
AMC and 6 of the 7 systems commands in appendix VI; the U.S. Army Corps of Engineers and 29 of its 55 installations in appendix VII; and
4 other Army commands and 16 of their 18 installations in appendix VIII.
section_title: Agency Comments and Our Evaluation
paragraphs: In commenting on a draft of this report, the Army generally concurred with the contents and stated that it believed the information will be beneficial in its Army-wide Financial Management Redesign implementation. The Army’s comments are reprinted in appendix IX. Also, the Army provided a number of technical comments, which were fully addressed in finalizing our report.
We are sending copies of this report to the Chairmen and Ranking Minority Members of the Senate Committee on Governmental Affairs; the House Committee on Government Reform and Oversight; and the Subcommittee on Government Management, Information, and Technology of the House Committee on Government Reform and Oversight; the Secretary of Defense; and the Director of the Office of Management and Budget. Copies will also be made available to others upon request.
If you have any questions about this report, please contact me at (202) 512-9095. Major contributors to this report are listed in appendix X.
section_title: Scope and Methodology
paragraphs: In collaboration with Army officials, we identified Army senior executives and financial managers 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 Army (Financial Management and Comptroller) ASA(FM&C) included the Assistant Secretary of the Army (Financial Management and Comptroller), the Principal Deputy Assistant Secretary of the Army (Financial Management and Comptroller), the Deputy Assistant Secretary of the Army for Financial Operations, and the Deputy Assistant Secretary of the Army for Budget. The 301 key financial management positions selected for this review included:
14 from ASA(FM&C) involved in financial operations, financial management/accounting policy, and/or budget execution-related functions and
287 (including resource managers, deputy resource managers, budget officers, and working capital fund managers) from 186 major commands and installations involved in (1) operations, (2) training, (3) maintenance and manufacturing, (4) research, development, test, evaluation, and procurement of Army systems, such as aviation, missiles, communications, and electronics, (5) engineering services for DOD and other entities, and (6) criminal investigation, processing of new enlisted personnel, medical services, and support functions for the Washington, D.C., area military organizations.
In addition to the 4 senior executives, 233 financial managers located at 145 of the 187 organizations responded to this review. The 233 respondents included the 14 ASA(FM&C) managers and 219 managers from major commands and installations comprised of 132 resource managers, 26 deputy resource managers, 60 budget officers, and 1 working capital fund manager.
Table I.1 identifies the Army major commands, the number of their installations, and information on the key financial managers included in this review.
U.S. Army Forces Command and 12 of its 16 installations (27 of the 35 managers responding included 13 resource managers, 3 deputy resource managers, and 11 budget officers)
U.S. Army Europe and its eight installations (11 of the 11 managers responding included 9 resource managers and 2 deputy resource managers)
Eighth U.S. Army and 9 of its 10 installations (15 of the 16 managers responding included 9 resource managers, 1 deputy resource manager, and 5 budget officers)
U.S. Army Pacific and its five installations (8 of the 13 managers responding included 6 resource managers and 2 deputy resource managers)
U.S. Army South (one of the three managers responding included one resource manager)
U.S. Army Military Traffic Management Command and two of its four installations (3 of the 10 managers responding included 1 resource manager, 1 deputy resource manager, and 1 budget officer)
U.S. Army Space and Strategic Defense Command and its two installations (six of the six managers responding included three resource managers, one deputy resource manager, and two budget officers)
U.S. Army Intelligence and Security Command and its 12 installations (14 of the 14 managers responding included 10 resource managers, 1 deputy resource manager, and 3 budget officers)
U.S. Army Training and Doctrine Command and its 19 installations (43 of the 46 managers responding included 18 resource managers, 7 deputy resource managers, and 18 budget officers)
U.S. Army Materiel Command and its Industrial Operations Command and 8 of 14 arsenals and depots (16 of the 26 managers responding included 9 resource managers, 1 deputy resource manager, 5 budget officers, and 1 working capital fund manager) (continued)
U.S. Army Materiel Command and six of its seven systems commands shown below (16 of the 20 managers responding included 5 resource managers, 5 deputy resource managers, and 6 budget officers) — U.S. Army Test and Evaluation Command — U.S. Army Simulation Training and Instrumentation Command — U.S. Army Chemical and Biological Defense Command — U.S. Army Aviation and Troop Command — U.S. Army Missile Command — U.S. Army Soldier Systems Command — U.S. Army Communications and Electronics Command U.S. Army Corps of Engineers and 29 of its 55 installations (32 of the 59 managers responding included 30 resource managers, 1 deputy resource manager, and 1 budget officer)
U.S. Army Criminal Investigation Command and its three installations (five of the five managers included two resource managers and three budget officers)
Military Entrance Processing Command (three of the three managers responding included one resource manager, one deputy resource manager, and one budget officer)
U.S. Army Medical Command and 9 of its 10 installations (11 of the 12 managers responding included 10 resource managers and 1 budget officer)
U.S. Army Military District of Washington and four of its five installations (10 of the 11 managers responding included 5 resource managers, 1 deputy resource manager, and 4 budget officers)
We obtained fiscal year 1997 Army budget data, including operation and maintenance (O&M); research, development, test, evaluation (RDT&E); and procurement funding from the ASA(FM&C) budget office. Those major commands and installations identified for this review managed $24 billion of the $64 billion Army budget during fiscal year 1997.
In an August 1988 report, 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 included 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 Army officials in developing a data collection instrument to gather the following types of information under each indicator:
Formal education: degrees attained, academic majors, and specific accounting and financial-related courses completed.
Professional work experience: (1) number of years working in current position, years at DOD, years in other government agencies, and years in the private sector and (2) experience in four specific financial management-related functions.
Training (referred to as continuing professional education in the profile instrument): for the period of 1995-1996, specific subjects completed 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 Army executives, we obtained information on their formal education, careers, and professional certifications from biographies and profile instruments provided by these officials. For all other individuals, due to Army 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 included in this series of assignments.
Since the Army chose to maintain the anonymity of its respondents, our Army liaisons sent profile instruments to the four Army executives and other key financial managers in the Office of the Assistant Secretary of the Army (Financial Management and Comptroller). The liaisons also sent profile instruments to points of contact at each major command, who, in turn, distributed the profile instruments to those key financial managers identified for this review at their respective commands and installations. The liaisons conducted additional follow-up efforts to contact those financial managers who did not initially respond as well as those respondents whose profile instruments were returned with incomplete information. Through these efforts, we received complete profile information from the four Army executives and 77 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 Army, we did not attempt to verify the information contained in the profiles we received. However, as noted above, for incomplete profile instruments, the Army liaisons conducted follow-up efforts and obtained the missing information.
We conducted our work from March through December 1997 in accordance with generally accepted government auditing standards.
section_title: Profiles of Office of the Assistant Secretary of the Army (Financial Management and Comptroller) Respondents
paragraphs: We included 14 key financial managers from the Office of the Assistant Secretary of the Army (Financial Management and Comptroller) (ASA(FM&C)), all of whom provided information on their qualifications and experience. This population included four managers involved in financial operations, one staff in financial management/accounting policy, and nine staff in budget execution functions. Table II.1 shows the officer and civilian composition of these managers, by rank and grade, respectively.
Brigadier General (O-7)
Colonel (O-6)
Lieutenant Colonel (O-5)
Major (O-4)
Captain (O-3)
First Lieutenant (O-2)
subsections: section_title: Formal Education Attained
paragraphs: As shown in table II.2, all 14 respondents held bachelor’s degrees. Two of the 14 managers majored in accounting, while 4 managers reported other business-related majors.
As shown in table II.3, 13 respondents also held master’s degrees, with 1 reporting more than one major. One manager held a master’s degree in accounting and seven managers listed other business-related majors.
Twelve respondents reported completing one or more courses in accounting-related subjects, as follows:
1-2 subjects: 4 civilians,
3-5 subjects: 3 (2 officers and 1 civilian), and
6 or more subjects: 5 (1 officer and 4 civilians).
Based solely on a review of their formal education, all five respondents in the latter group appear to have met the requirements to serve in GS-510 accountant positions.
section_title: Professional Work Experience Acquired
paragraphs: A review of the profiles showed that the average number of years of professional work experience was 27 years for the 4 officers, with a range of 25 to 30 years, and 25 years for the 10 civilians, with a range of 18 to 35 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 officers and by grade for the civilians, respectively.
B G()
Con()
Managers by rank (number at each rank)
S Execves ()
GS- ()
GS- ()
Managers by grade (number at each grade)
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, and as noted in figure II.3, was the only function performed by officers. A review of the 10 civilians’ profiles also showed that 4 had performed three or more of these functions.
Number of managers performing function (total = 4 respondents)
F /pong & acc policy ( yea) yea) opon ( yea) ( yea)
Number of managers performing function (total = 10 respondents)
F /pong & acc policy ( yea) yea) opon ( yea) ( yea)
section_title: Training Completed During 1995 and 1996
paragraphs: Figure II.5 shows the training reported by the 14 respondents as being completed during 1995 and 1996.
Number of managers (total = 14 respondents)
A review of the profiles showed total receiving accounting-related training: 4 (1 officer and 3 civilians), total receiving financial-related training: 4 civilians, total receiving training in general topics: 8 (1 officer and 7 civilians), and total not receiving training: 5 (3 officers and 2 civilians).
section_title: Professional Certifications Held
paragraphs: A review of the profiles showed that, of the four civilians reporting one or more professional certifications, one was a CPA, one held an other financial management certification, and one held a nonfinancial management certification.
Of the 10 managers that did not hold any professional certifications, 4 were officers and 6 were civilians. Figure II.6 shows the types of professional certifications reported by the ASA(FM&C) financial managers.
Number of managers (total = 14 respondents)
section_title: Profiles of Operational Command and Installation Respondents
paragraphs: The eight Army operational commands included in this review, shown below, managed O&M budgets totaling $8.98 billion during fiscal year 1997:
U.S. Army Forces Command,
U.S. Army Europe,
Eighth U.S. Army,
U.S. Army Pacific,
U.S. Army South,
U.S. Army Military Traffic Management Command,
U.S. Army Space and Strategic Defense Command (renamed U.S. Army Space and Missile Defense Command during this review), and
U.S. Army Intelligence and Security Command.
Surveys were distributed to 108 financial managers; 85 responded, representing all eight operational commands and 50 of their 57 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 each major command.
O&M budgets (in billions)
U.S. Army Forces Command (12)
U.S. Army Europe (8)
Eighth U.S. Army (9)
U.S. Army Pacific (5)
U.S. Army Military Traffic Management Command (2)
U.S. Army Space and Strategic Defense Command (2)
U.S. Army Intelligence and Security Command (12)
Total (50)
The 85 respondents included 52 resource managers, 11 deputy resource managers, and 22 budget officers. Table III.2 shows the officer and civilian composition of the respondents, by rank and grade, respectively.
Brigadier General (O-7)
Colonel (O-6)
Lieutenant Colonel (O-5)
Major (O-4)
Captain (O-3)
First Lieutenant (O-2)
subsections: section_title: Formal Education Attained
paragraphs: As shown in table III.3, 73 of the 85 respondents held bachelor’s degrees, with 8 reporting more than one major. The major for 21 of these managers was accounting, while 33 managers reported 34 other business-related majors.
As shown in table III.4, 41 respondents also held master’s degrees, with 3 reporting more than one major. One manager held a master’s degree in accounting, while 32 managers reported 33 other business-related majors.
Seventy-three of the 85 respondents reported completing one or more courses in accounting-related subjects, as follows:
1-2 subjects: 13 (3 officers and 10 civilians),
3-5 subjects: 16 (7 officers and 9 civilians), and
6 or more subjects: 44 (13 officers and 31 civilians).
Based solely on a review of their formal education, the 13 officers and 30 of the 31 civilians in the latter group appear to have met the requirements to serve in GS-510 accountant positions.
section_title: Professional Work Experience Acquired
paragraphs: A review of the profiles showed that the average number of years of professional work experience was 21 years for the 27 officers, with a range of 10 to 31 years, and 28 years for the 58 civilians, with a range of 18 to 42 years. With few exceptions, the 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.
B G()
Con() ()
M ()
C ()
Managers by rank (number at each rank)
S Execves ()
GS- ()
GS- ()
GS- ()
GS- ()
GS- ()
Managers by grade (number at each grade)
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 8 officers and 18 civilians had performed three or more of these functions.
Number of managers performing function (total = 27 respondents)
F /pong & acc policy ( yea) yea) opon ( yea) ( yea)
Number of managers performing function (total = 58 respondents)
F /pong & acc policy ( yea) yea) opon ( yea) ( yea)
section_title: Training Completed During 1995 and 1996
paragraphs: Figure III.5 shows the training reported by the 85 respondents as being completed during 1995 and 1996.
Number of managers (total = 85 respondents)
A review of the profiles showed total receiving accounting-related training: 13 (3 officers and 10 civilians), total receiving financial-related training: 26 (9 officers and 17 civilians), total receiving training in general topics: 46 (10 officers and 36 civilians), and total not receiving training: 29 (12 officers and 17 civilians).
section_title: Professional Certifications Held
paragraphs: A review of the profiles showed that, of the 10 managers reporting one or more professional certifications,
2 civilians were CPAs,
8 were CGFMs (1 officer and 7 civilians), and
1 civilian held a nonfinancial management certification.
Of the 75 managers that did not hold any professional certifications, 26 were officers and 49 were civilians. Figure III.6 shows the types of professional certifications reported by the operational command and installation financial managers.
Number of managers (total = 85 respondents)
section_title: Profiles of U.S. Army Training and Doctrine Command (TRADOC) and Installation Respondents
paragraphs: TRADOC managed an O&M budget of $2.3 billion for fiscal year 1997. Forty-three of the 46 key financial managers from TRADOC (representing its 19 installations) provided information on their qualifications and experience, including 18 resource managers, 7 deputy resource managers, and 18 budget officers. Table IV.1 shows the officer and civilian composition of the respondents by rank and grade, respectively.
Brigadier General (O-7)
Colonel (O-6)
Lieutenant Colonel (O-5)
Major (O-4)
Captain (O-3)
First Lieutenant (O-2)
subsections: section_title: Formal Education Attained
paragraphs: As shown in table IV.2, 36 respondents held bachelor’s degrees, with 1 reporting more than one major. The major for 13 of these managers was accounting, while 17 managers reported other business-related majors.
As shown in table IV.3, 28 respondents also held master’s degrees, with 2 reporting more than one major. The major for 2 of these managers was accounting, while 20 managers reported other business-related majors.
Thirty-eight of the 43 respondents reported completing one or more courses in accounting-related subjects, as follows:
1-2 subjects: 6 (1 officer and 5 civilians),
3-5 subjects: 10 (4 officers and 6 civilians), and
6 or more subjects: 22 (6 officers and 16 civilians).
Based solely on a review of their formal education, 5 of the 6 officers and the 16 civilians in the latter group appear to have met the requirements to serve in GS-510 accountant positions.
section_title: Professional Work Experience Acquired
paragraphs: A review of the profiles showed that the average number of years of professional work experience was 23 years for the 13 officers, with a range of 16 to 31 years, and 26 years for the 30 civilians, with a range of 15 to 38 years. With one exception, 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 officers and by grade for the civilians, respectively.
B G()
Con() ()
M ()
Managers by rank (number at each rank)
GS-15 (3)
GS-14 (8)
GS-13 (14)
GS-12 (5)
Managers by grade (number at each grade)
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 two officers and six civilians had performed three or more of these functions.
Number of managers performing function (total = 13 respondents)
F /pong & acc policy ( yea) yea) opon ( yea) ( yea)
Number of managers performing function (total = 30 respondents)
F /pong & acc policy ( yea) ( yea) opon ( yea) ( yea)
section_title: Training Completed During 1995 and 1996
paragraphs: Figure IV.5 shows the training reported by the 43 respondents as being completed during 1995 and 1996.
Number of managers (total = 43 respondents)
A review of the profiles showed total receiving accounting-related training: 4 (1 officer and 3 civilians), total receiving financial-related training: 14 (4 officers and 10 civilians), total receiving training in general topics: 26 (5 officers and 21 civilians), and total not receiving training: 11 (5 officers and 6 civilians).
section_title: Professional Certifications Held
paragraphs: A review of the profiles showed that, of the seven managers reporting one or more professional certifications, three civilians were CPAs, four were CGFMs (one officer and three civilians), and one civilian held another financial management certification.
Of the 36 managers that did not hold professional certifications, 12 were officers and 24 were civilians. Figure IV.6 shows the types of professional certifications reported by the Training and Doctrine Command and installation financial managers.
Number of managers (total = 43 respondents)
section_title: Profiles of Working Capital Fund Respondents
paragraphs: The 14 arsenals and depots within the U.S. Army Materiel Command’s (AMC) Industrial Operations Command (IOC) managed a fiscal year 1997 budget of $7.4 billion, derived in part from their customers’ O&M accounts. Sixteen of 26 key financial managers at AMC, IOC, and the arsenals and depots provided information on their qualifications and experience. The 16 respondents included 9 resource managers, 1 deputy resource manager, 5 budget officers, and 1 working capital fund manager. Table V.1 provides the rank of the officer and grades of the 15 civilians.
Brigadier General (O-7)
Colonel (O-6)
Lieutenant Colonel (O-5)
Major (O-4)
Captain (O-3)
First Lieutenant (O-2)
subsections: section_title: Formal Education Attained
paragraphs: As shown in table V.2, all of the 16 respondents held bachelor’s degrees, with 3 reporting more than one major. Eight managers majored in accounting, while two managers reported other business-related majors.
As shown in table V.3, eight respondents also held master’s degrees, with five reporting more than one major. All of the eight managers reported other business-related majors.
Fifteen of the 16 respondents reported completing one or more courses in accounting-related subjects, as follows:
1-2 subjects: 1 civilian,
3-5 subjects: 4 (1 officer and 3 civilians), and
6 or more subjects: 10 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.
section_title: Professional Work Experience Acquired
paragraphs: A review of the profiles showed that the officer had 26 years of professional work experience, while the 15 civilians’ experience averaged 26 years, with a range of from 17 to 37 years. With one exception, 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 officer and by grade for the civilians, respectively.
Colonel (1)
Managers by rank (number at each rank)
GS-15 (3)
GS-14 (5)
GS-13 (7)
Managers by grade (number at each grade)
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 the officer and three civilians had performed three or more of these functions.
Number of managers performing function (total = 1 respondent)
F /pong & acc policy ( yea) yea) opon ( yea) ( yea)
Number of managers performing function (total = 15 respondents)
F /pong & acc policy ( yea) yea) opon ( yea) ( yea)
section_title: Training Completed During 1995 and 1996
paragraphs: Figure V.5 shows the training reported by the 16 respondents as being completed during 1995 and 1996.
Number of managers (total = 16 respondents)
A review of the profiles showed total receiving accounting-related training: 2 civilians, total receiving financial-related training: 3 civilians, total receiving training in general topics: 11 civilians, and total not receiving training: 5 (1 officer and 4 civilians).
section_title: Professional Certifications Held
paragraphs: None of the 16 respondents held professional certifications.
section_title: Profiles of Systems Command Respondents
paragraphs: In addition to the arsenals and depots, the U.S. Army Materiel Command (AMC) also has oversight of systems commands. The seven systems commands, shown below, managed O&M, RDT&E, and procurement budgets totaling $3.88 billion during fiscal year 1997:
U.S. Army Test and Evaluation Command,
U.S. Army Simulation Training and Instrumentation Command,
U.S. Army Chemical and Biological Defense Command,
U.S. Army Aviation and Troop Command,
U.S. Army Missile Command,
U.S. Army Soldier Systems Command, and
U.S. Army Communications and Electronics Command.
The 16 key financial managers at AMC and these commands provided information on their qualifications and experience, including five resource managers, five deputy resource managers, and six budget officers. Table VI.1 shows the officer and civilian composition of the respondents by rank and grade, respectively.
Brigadier General (O-7)
Colonel (O-6)
Lieutenant Colonel (O-5)
Major (O-4)
Captain (O-3)
First Lieutenant (O-2)
subsections: section_title: Formal Education Attained
paragraphs: As shown in table VI.2, all 16 respondents held bachelor’s degrees, with 1 reporting more than one major. Four of these managers majored in accounting, while five managers reported six other business-related majors.
As shown in table VI.3, 11 respondents also held master’s degrees, with 2 reporting more than one major. The majors for six of these managers were business related.
Fourteen of the 16 respondents reported completing one or more courses in accounting-related subjects, as follows:
1-2 subjects: 2 civilians,
3-5 subjects: 7 (1 officer and 6 civilians), and
6 or more subjects: 5 (1 officer and 4 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.
section_title: Professional Work Experience Acquired
paragraphs: A review of the profiles showed that the average years of professional work experience was 25 years for the 4 officers, with a range of 24 to 26 years, and 26 years for the 12 civilians, with a range of 16 to 38 years. 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 officers and by grade for the civilians, respectively.
Colonel (4)
Managers by rank (number at each rank)
GS-15 (12)
Managers by grade (number at each grade)
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 two officers and three civilians had performed three or more of these functions.
Number of managers performing function (total = 4 respondents)
F /pong & acc policy ( yea) yea) opon ( yea) ( yea)
Number of managers performing function (total = 12 respondents) yea) yea) opon ( yea) ( yea)
section_title: Training Completed During 1995 and 1996
paragraphs: Figure VI.5 shows the training reported by the 16 respondents as being completed during 1995 and 1996.
Number of managers (total = 16 respondents)
A review of the profiles showed total receiving accounting-related training: 3 (1 officer and 2 civilians), total receiving financial-related training: 7 (1 officer and 6 civilians), total receiving training in general topics: 10 (1 officer and 9 civilians), and total not receiving training: 6 (3 officers and 3 civilians).
section_title: Professional Certifications Held
paragraphs: A review of the profiles showed that the two managers reporting professional certifications were CGFMs—one officer and one civilian. The 14 managers that did not hold any professional certifications included 3 officers and 11 civilians. Figure VI.6 shows the types of professional certifications reported by the systems command financial managers.
Number of managers (total = 16 respondents)
section_title: Profiles of Corps of Engineers Respondents
paragraphs: The U.S. Army Corps of Engineers managed O&M, RDT&E, and procurement budgets totaling $715 million during fiscal year 1997. Thirty-two of the 59 key financial managers (representing headquarters and 29 of its 55 offices) provided information on their qualifications and experience, including 30 resource managers, 1 deputy resource manager, and 1 budget officer. Table VII.1 shows the officer and civilian composition of the respondents by rank and grade, respectively.
Brigadier General (O-7)
Colonel (O-6)
Lieutenant Colonel (O-5)
Major (O-4)
Captain (O-3)
First Lieutenant (O-2)
subsections: section_title: Formal Education Attained
paragraphs: As shown in table VII.2, all 32 respondents held bachelor’s degrees, with 2 reporting more than one major. Nineteen managers majored in accounting, while 9 managers reported other business-related majors.
As shown in table VII.3, 14 respondents also held master’s degrees, with 2 reporting more than one major. Of the 14 managers, 1 majored in accounting and 11 reported other business-related majors.
Thirty of the 32 respondents reported completing one or more courses in accounting-related subjects, as follows:
1-2 subjects: 1 civilian,
3-5 subjects: 3 civilians, and
6 or more subjects: 26 (1 officer and 25 civilians).
Based solely on a review of their formal education, the officer and 22 of the 25 civilians in the latter group appear to have met the requirements to serve in GS-510 accountant positions.
section_title: Professional Work Experience Acquired
paragraphs: A review of the profiles showed that the officer had 26 years of professional work experience, while the average was 27 years for the 31 civilians, with a range of 16 to 40 years. The respondents had spent most of their careers in DOD. Figures VII.1 and VII.2 show the work experience by rank for the officer and by grade for the civilians, respectively.
Colonel (1)
Managers by rank (number at each rank)
S Execves ()
GS- ()
GS- ()
GS- ()
Managers by grade (number at each grade)
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 11 civilians had performed three or more of these functions.
Number of managers performing function (total = 1 respondent)
F /pong & acc policy ( yea) yea) opon ( yea) ( yea)
Number of managers performing function (total = 31 respondents)
F /pong & acc policy ( yea) yea) opon ( yea) ( yea)
section_title: Training Completed During 1995 and 1996
paragraphs: Figure VII.5 shows the training reported by the 32 respondents as being completed during 1995 and 1996.
Number of managers (total = 32 respondents)
A review of the profiles showed total receiving accounting-related training: 11 civilians, total receiving financial-related training: 11 civilians, total receiving training in general topics: 23 civilians, and total not receiving training: 7 (1 officer and 6 civilians).
section_title: Professional Certifications Held
paragraphs: A review of the profiles showed that, of the 17 civilians reporting one or more professional certifications,
5 were CPAs and
14 were CGFMs.
Of the 15 managers that did not hold any professional certifications, 1 was an officer and 14 were civilians. Figure VII.6 shows the types of professional certifications reported by the Corps of Engineers financial managers.
Number of managers (total = 32 respondents)
section_title: Profiles of Other Army Organizations’ Respondents
paragraphs: The other Army organizations included in this review, shown below, managed O&M, RDT&E, and procurement budgets totaling $945 million during fiscal year 1997:
U.S. Army Criminal Investigation Command,
Military Entrance Processing Command,
U.S. Army Medical Command, and
U.S. Army Military District of Washington.
The 29 key financial managers at these commands and their installations provided information on their qualifications and experience, including 18 resource managers, 2 deputy resource managers, and 9 budget officers. Table VIII.1 provides the ranks of the 14 officers and grades of the 15 civilians.
Brigadier General (O-7)
Colonel (O-6)
Lieutenant Colonel (O-5)
Major (O-4)
Captain (O-3)
First Lieutenant (O-2)
subsections: section_title: Formal Education Attained
paragraphs: As shown in table VIII.2, 26 respondents held bachelor’s degrees, with 2 reporting more than one major. Three of these managers majored in accounting, while 15 managers reported other business-related majors.
As shown in table VIII.3, 19 respondents also held master’s degrees, with 4 reporting more than one major. One or more of the majors reported by 17 of these 19 managers were business related.
Twenty-seven of the 29 respondents reported completing one or more courses in accounting-related subjects, as follows:
1-2 subjects: 5 (2 officers and 3 civilians),
3-5 subjects: 9 (5 officers and 4 civilians), and
6 or more subjects: 13 (6 officers and 7 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.
section_title: Professional Work Experience Acquired
paragraphs: A review of the profiles showed that the average number of years of professional work experience was 23 years for the 14 officers, with a range of 19 to 27 years, and 26 years for the 15 civilians, with a range of 19 to 40 years. The respondents had spent most of their careers in DOD. Figures VIII.1 and VIII.2 show the work experience by rank for the officers and by grade for the civilians, respectively.
Con() ()
Managers by rank (number at each rank)
GS-14 (6)
GS-13 (5)
GS-12 (4)
Managers by grade (number at each grade)
Figures VIII.3 and VIII.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 five officers and four civilians had performed three or more of these functions.
Number of managers performing function (total = 14 respondents)
F /pong & acc policy ( yea) yea) opon ( yea) ( yea)
Average years performing functions Number of managers performing function (total = 15 respondents)
F /pong & acc policy ( yea) yea) opon ( yea) ( yea)
section_title: Training Completed During 1995 and 1996
paragraphs: Figure VIII.5 shows the training reported by the 29 respondents as being completed during 1995 and 1996.
Number of managers (total = 29 respondents)
A review of the profiles showed total receiving accounting-related training: 5 (4 officers and 1 civilian), total receiving financial-related training: 12 (7 officers and 5 civilians), total receiving training in general topics: 20 (9 officers and 11 civilians), and total not receiving training: 8 (4 officers and 4 civilians).
section_title: Professional Certifications Held
paragraphs: A review of the profiles showed that, of the six managers reporting professional certifications, five were CGFMs (three officers and two civilians) and one civilian held a nonfinancial management-related certification.
Of the 23 managers that did not hold any professional certifications, 11 were officers and 12 were civilians. Figure VIII.6 shows the types of professional certifications reported by the other Army organizations’ financial managers.
Number of managers (total = 29 respondents)
section_title: Comments From the Department of the Army
section_title: Major Contributors to This Report
subsections: section_title: Accounting and Information Management Division, Washington, D.C.
paragraphs: George H. Stalcup, Associate Director Geoffrey B. Frank, Assistant Director Robert L. Self, Project Manager Jan E. Bogus, Auditor-in-Charge Linda J. Brigham, Senior Auditor Patricia A. Summers, Senior Auditor Dennis B. Fauber, Senior Evaluator Francine M. DelVecchio, Communications Analyst Michelle A. Howard, Intern 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.
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