--.--.--.- Jdnt Fhanc~l~~em.ent liw.t Pngvam The Joint Financial Management Improvement Progmm (JPMIP) is a joint cooperative umkr&ng ofthe Office ofManagement and Budget, the General Accounting Office, the Department ofthe Treasury, and the O&e of Personuel Management, working with each other and with operating agencies to improve &ran&l management practices throughout government The Program was initiated in 1948 by the Secretary ofthe Treasury, the Director of the Bureau ofthe Budget, and the Comptroller General, and was given statutory authorization in the Budget and Accounting Procedures Act of 1950. The Civil Service Commission, now the Of&e of Personnel Management, joined JPMD? in 1966. The overall objective ofthe JPMIP is to make improvements that contribute signikantly to the eEe+ve and efhcient operations of governmental programs. Activities aimed at achieving this objective include: - Developing genexal objectives in those areas of common interest to the central agencies for guiding the improvement of financial management aaoss government and promoting strategies for achieving those objectives. - Reviewing and coordinating central agencies’ acdvities and policy promulgations affecting fmancial management to avoid possible conflict, inconsistency, duplication, and contbsion. - Underuking projects and special reviews of siguificant problems and new technologies in Gnancial management and publishing the findings and conclusions. - Acting as a catalyst and cleariughouse for sharing and disseminating financial management information about good financial management techniques and technologies. - Reviewing the fiuancial management efforts of the operating agencies and serving as a catalyst for further improvements. The JFMTP plays a hey role in mobii resources and coordinaung cooperative efforts in the improvement of financial management practices, and relies on the active participation of federal agencies to be successful. The Joint Program is guided by a Steering Committee consisting of key policy officials from each of the sponsoring agencies. A hey official from a program agency also serveson the Steaing Committee. A small staffheaded by an Executive Director provides support to the Committee. Y JOINT FINANCIAL MANAGEMENT IMPROVEMENT PROGRAM MEMOUNDUM TO: President3 Councii OnManagement Improvement chiefFiMncialofEcerscQutlcil FederaIl?inauciaiManagers’council Comptrollers Roundtable Other FederalFinankiManagers suBJEm Contin& ProfizssionaiI&cation for PederaiAccountants Inadequati ithan& systemsaud seriousinternai contro1weaknessesin’the federai government have beenidentiiied for riori attention Long-term e&its toovercome theseweaksses will ~~ea~iofw~-~a~-~-.~t~~~l~ve~,~~y~d~~y~ shrink further unlesswe start nowto systematicaliy reb d our in-houseexpertise. This report documents the rest&s of the JPMIP’s reject on’continuing profkssionai education for ~‘accountants.The ‘report was developedby & e Jaum),,project teamwith assistanceand advice from federal firianciai managers,academi&ans,and practitioners: It provides a statement of federai accountauts~major, functions in such areasas (1) ,technicalguidance; (2) iuternal control; (3) fhanciaI adysis andreporting; (4) systemdevdo ment;~operation, and maintenance; and (5) supervision&adershi ,.andcomnmnkation, FIlrtL r, .itt;providesalist of subject areaswhich cover the iuiowkdgq slcl&* , and abrhuesof federal accountantsand of themajor federai guideiines that accountantsmust apply. FinaUy,,it provides a continuing professional .educationmodel asa guide to agencies. ‘. Becauseaccounting infbrmation rovides the foundation fbr, sound &an&i decisions,we 8. recommend that continuing pro ifs sionai education for federai accountants be incorporated into longknge plans and impiemented by departments and agenciesf&improvement of financial management. Further, we recommend that OMB encouragea continuing education poiicy for federal accountantsand provrde monetary commitment for it. Such action could be a key mgredient in the effective implementation of the ChiefFinanciai OfEcers Act of 1990. TheJFMIP Steering Committee: JamesB. Lancaster,Jr. AssociateDirector for Administration OfFiceof PersonnelManagement Dennis J. Fischer Deputy Assistant Secretaryfor Finance Executive Director Department of Heaith and Human Services Joint Financki Management Improvement Program 666 11th Street, N.W., Suite 705 Washington, D.C. 20001 ;, I.” .,,., .> , -~-. _- -.--.--.._, BACKGROUND Continuhig prc&wi&aI e&ation~(Cl?E) tir federal accountantsis vital to keep pacewith the vast changes$I j%deraLfin@ operations due to legal, reguIatory, standard, and technological deveJ9pments.The government, @wever, ’ do+ not offer +I effective CPE program t.0meet thesechangesand mabrain the highest ,., professionaI competency of its 12,000 GS-510 accountants. ., ,’ /’ PR@IECT~bBJBC~S AND SCOPE TheJoint FinanciaI ManagemexUnprovement program (JFMll?) Steering c&xn.miW $qxtd its staffto review accguntant tmining needsthrou&,the 1990s anddeveibp a comprehensive academicand continuing education,state- , 1 ment in the interests of upgradkg the professionalism of kkxa.l accountants. The project staffdeveloped and circulated f& comment statements listing federal raccountants’fbnctions; knowledge, skills, and abilities; and education needs. Financial managersin all departments and major independent agencies respondedin a very positive man&r to the proje& statementsof accountants’ ‘primuyfim$ons; lcnowIedge, skiUs,and abilities; aiid continuing education needs.They said that these statementswere comprehensive and needed. iihnagers also requestedcontinuing professional education that focused on applying federal requirements. The subject areasfor which agenciesshould provide educational opportunities fbr their entry- and career-levelaccountants cover the knowledge, skills, and abilities that accountantsapply in carry+ out their primary functions: (1) technical guidance; (2) internal controk (3) &n&I analysisand reporting; (4) systemdevelopment, operation, and maintenance; and (5) sup&vi&n, &adqship; and qnm&ic&ion. To guide agenciesin making and implementing plans fbr continuing professional education, the project team developed a combing professional education (CPE) model. FederalfinauciaI manageis, careerdevelopment managers, and education speci&xs should use this.Cl?E model, functions state- ment, and suggestededucation list to develop ok improve their contjnuing educa- tion pky@r fAq$l a~~untants. Individual acukntants .F encoumged @ e thi$Urmatibti to’ a&s their current expertise and pIan,$heircon&wing educa- tion. Agency management is also urged to incorporate Cl?E into federal account- ant position descriptions, monitor the completion of CPE, and’assesscompIiance ‘in annual perfbrmance appraisalsof the accountantsand their supervisors, x3lim~sumY CONCLUSION AND RECO&QT.ENDATIONS Continuing education of &eraI entry- and career-levelaccountantsinvoIveq the commitmeni bfnxkii@&nt in ceidd ii&i program agencies.To implement tmihm strategks for improving continuing education and proksionalis~ we recokmendthq ., ,,‘. .’ ‘, AGBNCY~Akk&T: 1. s~~~~~,~n~~~~~~~p~~~‘~r aeh accoufltafit andpmtide monetarycommiqzntforit. ,, 2. ldude in GS-510 position~dexrip~ogs a rkquirement that accountants should obtaiq ? @st ?Qhours ofrelevaqt continuing education every 2 yearsatid inc6rpokt.e this requirement iu thy +ex+ careerdevelopment ,’ program. 3. Iixorpora~ thk functions statement for federal accountantsinto agencyjob or position descriptions in whole or by relkxxe. 4. Develop or update continuing education plans fbr accouutauts,using this report as a guide, and also & Monitor thy completion of CPE and b. Assess,iu annual pe&rmance appraisals,supervisor and mployee compIiance with the agency’scontinuing education requirements. OMB: Support a continuing education p~%cyfbr fkderal accouutautsand provide monetary commitnknt fk it Il+x@orate by refkrencethe functions statement for kderal accountantsinto the governmentwide GS-510 accouritant classification standard, .(. .Z.‘.,.,.,,..,_ ._ _..__.._.I.. ,,,, -. _-.-.‘- --. ..I_ ,......-. -.-. ____---- -.--.- --__----.-..-..~I EXE~SUMMARY I . . . . . . . . . . -.~*‘.,.............,,,,,.I iv INTRODiJtiON . . . . ..I................................. 1 The Role of,& Federal kc&want . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 I PROJECT O~JECIWES AND t$~Ol?E . . . . . . . . . . . . . . . . . ..I... 4 ... : ,’ ~PROJl3CXACCOMPL.ISHMENTS ANDJU3SuLTS . . . . . . . . . . . . .5 ” JFMII? Devehpmerit~Efforts . . 1..%.........................*..... 5 Functions~Stati~ent . . . . . . . . .7. . . . . . . . . . ..i..............*....... ’ ‘5 Education Areas fbr FederalAccouhtanti . . ..C...................... 7 PederaI Guidance to be Applied,by Account&s . . . . . . . . . . . . . . . . . . . . . 8 FederalAccountant Qualification Standard . . . . . . . . . . . . . . . . . . . . . . . . . 8 C@inuing Pr’ofessionalEducation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 ~CpEModeIandAgenkyImplemen~tiofl. :. . . . . . . . . . . . . . . . . . . . . 11 Relevant CoQrsesAre OfknDifIhlt to Pind . . . . . . . . . . . . . . . . . . . 13 I;.’ Fundin%bB . . . ..i.....w................................ 13 Monit&ngCl% ......................................... 13 Other Studies Promoting Fuhther CPE ........................ 14 Ongoing Efforts to Restructure Accounting Education ............... 15 CONCLUSION AND RE$COMMENDATlONS . . . . . . . . . . . . . . . .17 APPENDIXES 1 Primary Functions, Activities and Tasks fix Major Categoriesof GS-510 Accountan& .. ..c ................................ 18 2 SuggestedAreas of Education for GS-510 Accountants ............. 31 3 Major Federal Guidelines to be Applied by GS-510 Accountants ...... 38 4 StafEngLevelsofGS-51OAccountantsbyAgency.. ................ 4-O 5 Major Contributors to This Report ............................ 41 BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 ABBRE~m;*$~AcRoNyMs’ A* AsS~tion of Goveqment Accountants Gird ChiefFinancial~cer .; .” C.P.R &de ofpederal .’ RegdatioIls cm ci&in&~ProfiessionalEducatioll PASB. ” k.n&cial Accbuntiag StandardsBoard FMFIA’ ‘, F+&h.na@ers~ Financial Integrity Act ‘, GineiaU~aicepted accwnting principles .GAO Generali@o&ting OEce _‘. GASB . . Goyernment Accounting StandardsBoard GSA, G+xal ServicesAd&&ration, JFMIP Joint Financial Management Improvement Program KSAS Knowl~~sldlls, &nd abilities ’ OMB, GfFice of Ma&em&t and Budget OPM. OfEcqof PersonnelManagement PCIE President’sCouncil on Integrity and Efficiency SGL: U.S. Government Stwdm~ Gew&!h&r I.. . I I’ ‘. ‘: I ‘8 1’ . ; ... mu INTRODUCTION ., C ontinuing professional education (CPE) of federal accountantsis vitaI to keep pacewith the constant changesin f&r-al Einancialoperations due to new or amended administrative or program IegisIation; regulatory, standard or technoIogicaLdevelopments;and anincreasing span of responsibilites evohing from automation,advances.‘Giivernment accountantsneed appropriate education to 1) conductand communicate the rest&x of their work proficiently, 2) maintain awarenessfbr internal or external fraud and abuse,and 3) better monitor the vast and numerous risks in the government’s programs and administrative operations involving large dolhr amounts and extensive,transaction volume. ,i,,I,,;; : Federalgovernment accountantsand other sta@&ntain financiial data for a fiscd_y&r “_ 1990_ budget_ - of 1 triGon doI!ars. In toda@ &mate of fiscal constraint continuing education~foraccountantsin government operations is important. Becausetrain&5.t1creasesproductivity, the providiug of continuing education wiUhelptoachieveeconomyandeE~ciency. ” According.&qeN’ +pod I’. Commission on the Public Service’, statistics show that pain@g &$loy~ results in higher retention and morale and increased credibility. The,Commission stated that government trainhq shows a lack of cIa.t$y about the purposes,costs, and benzfits oftrainiq. The Commission suggestedthree training purposesto keep’iu mind proficiency on the job, tnii&ng for rene+, and tmining for growth and development. The Glvvmmm ‘t E~loyees lhaki@Aei, Chapter 41 of Title 5, U.S. CI&, providesthe basic authori+ion Ex employee tr+ing throughout most of the government, Executive Order 11.343,April 29, ‘1967, directs agencyheadson using tbis general statutory authority. Both the law and the Executive Order authorize OPM to issue reguIations governing various aspectsof the law. In carrying out thesegovernmentwide duties, OPM provides training oversight along with advice and leadership~inpersonnel management and evaluation. Agency management is assignedby law (5 U.S.C; 4103) the responsibility for establishing and implementing an agency%program to ensureprofessional proficiency through continuing education and on-the-job train& Basedon our observations,the government does not offer an e&ctive continuing education program to maintain the highest professional competency of its 12,000 accountants (seeappendix 4). The government’s most direct options are to pay more to compete for accounting entrants or provide continuing educa- tion for I, those ,,. on board The most feasible choice is for the government to focus -*:; ‘._-.-- _-- .-,*---.. ..::.I ‘. I, ..,,,; : : j ,I‘i, ‘I 1 Paul A Vokker, LcaclarkipjGrAmt+tG: R&4&& theP&i4 Sh, 1989, pp. 140-155. on continuing profwional ‘. ecluc&i& t&develop +n&maintain qualified account- ants. .( , .‘. A ; ‘A. Y - ,,., ; By defir&o~ +i&&&$ is @wsy$ee of’or&@ion and controIs over an entity5 ecotiom@eivt&ii3. Afzct+iting iii&i+it&+ art of analyzing the financial position an+ :o~~~~~~~:ofthi,l;tity’?r, a’&g&ent within it The profession’sdisti@i+ e$l$% f+~‘;ic$ountingstan~ds, policies, procedures, and the deGgn, devklopnienc iiAaU+t$on, operation, and maintenance of accoutlting irifbrmation sy$&&. .’ : 1 ,‘./ ,‘,. ), In addiqon * this speci- ~ourx& ,$c@$ accountantscommunicate to government dec&ionmak@ @&mesning, sign$icance, and status of fkderal fimding, concepts,pr$po+, and a@nativ$ They also must be lcnowkdgeable of @e development a$ useof automA& systemsto provide quick responsesto the fl~@~cialinkrmation needsofthe organization, the Congress, and the central management and review agenciesofthe Heral government. In the context of this report, the central ggenaeS’inkkdUiie&nekl Accounting Of&e (GAO), the Oflice OfManagement and Budget (OMB), the Ok&e of PersonnelManagement (OPM), and the Department ofthe Treasury. To efkctively communi+te $vith management, accountantsmust provide acawte, cornpI* and Gwly akcwntin&&incia& budgetary, and program inknation conce* aJItrakactioti andthe statusof operations, inclkding 2 For purposes ofthis report, the terms in@xnal controls, internal accounting and admk&ratiye co+ols, and management controls are synonymous. 3 Donald E. Kieso and Jkrry J. Weygandt, I~~&wati~. 6th ed., 1988. obligation and cost data, in an efficient, economical manner. PederaI accountants can, and should more ofken, be called on to help determine the most cost-mve way @ achievea progra&s #nissioa This requires a,conscious efkrt on the part of inauy ,aqFtants:to i@xact &We with other professionalsin the financial ma@a&ti&t,comn@iity~ iQkrti&lar budget and program managersand ,’ ana&&.‘U~ing an&lytikal &l coiixnx&i~tion~skilis in the federal accountants’ enviromat is vital to’& six&k of e&ijWgra& mission. i Many age& have acco&ti& respo&biiiti& fbr multibillion-dokr F. programs and administrative operatioti. Thek &~c&, accounting, reporting, a$ fipy$al qaqqmmt p?ctii s+* +kct a level of financial sophistica- Itron appropikt@x t.$$ @$@$ship re&otiibiIities. Thus, the accountant’s p$&iti* is the$f+ndki&i for thq&@ntfs fJnancialmanagement improvegent: eB&ts. @ki@ing .pr@$ss@x&ducation is essentialfor ‘@$$~QII& $xke+q pace throughou+kir careeti’tith rapid +nges in au@matgdtkch@~ogy,&d +ii~eMent 6fkkra.l a&&nting standardsand A, systimic problem in federaI accountants?, proficiency is the absenceof kkctive trainiq. Continuing education has not been a requireinent of continued employm&+ and perform~ce &aIuatick. How&e;, for auditors (a related .’ piof@&), &de&I audit standard.4state that indkiduals should obtain 80 hours of c&NinGng edwation ‘everytwo yearq. '3 PIkO~CT OBJECTIVi3S ,’ AND ,, _. SCOPE T ocarryoutits~~,~improvefiederal~management,thc~ Steeriag~~~~~i~,~~.~y~issueof~account- apts’ trainhg ne&. & tlw Commi@s direction, the major objective was to dewi+ a comprehewive list of subject v .$x ,the,contiuujng education of federal accow@@s. (The GS-$10 aq.ountantqeri&,is a subsetof the GS-500 ,, .Tbisreport ,“‘, ‘. ,., : ‘, ,, ,, l prw a state+&t &fiederal +ccountaii~‘~fimctions and identifies subject~areasf+ accoiiaritig and Akxi edu+ion; l dism accountanti’ con*+ professional education (CPE); l ,providesa pc$i f&r i&pkm~nta~on of CI% by agency -qvm=ti l dkusses CP~ impkmenwion, fundiagi andmonitoring; and l describ on-going e&h to retmxtw accounting education. ‘, 4 JFMIP Development EfIbrts The prbject’s initial information baseincluded discussionswith federal hanciaI managemand,a reviekof recent bPA&, US. Army Accounting and Finance Centek, ~&sock&n of Govqent Aqogntants studies on accountant educati& expgienie, and 6zlas@catioq,,*ds. Referencesourcesalso i.nchdd aca$emidan and praktit3one~+rature addressingthe future of accounting e&&ion. The tiibJio@phy ht$ the project’s refkrencesources. The &ojci&s hff deklopd pr+&n&+ ~&&i&s on accountants’ fhnctions, knotiledge,~sk$, ~bilitiek, and subj& ak+s f+‘&kihing education from coryiul~tio~ with ei& federal finan@ managersand from reviews of commonly-usedf referencesources.These individuah assistedthe project stafFin identif)kg the @imary duties of the major categoriesoffederal GS-510 accountantsaspresent@ in the fhnctio~ statement. The knowkdge, skills, and abilitks to --performthese _-_ acchuuting fhuctio~ and the relevant education needs were then identified. Seve@financiaI maixgers in 911federal dep;agtmentsand major independent agenciesreceived dr@ copies of the fhnctioixs, knowledge, skills, abilities, and con- tinuing’education statements.These draft copies were distributed &rough die ChiefFinancial OfEcers Co- the FederalF~cialManagers coundl, the ComptroIIers Roundtable, and other selectedorganizations and individuals in academiaandpublicaccountingiirms.comments~mthefederalfinancial management community and the other respondentscited the drafk statementsas comprehensive and needed. The detailed results of this e&t are p;eSentedin the following appendixes: Appendix 1: Primary Functions, Activities, and Tasks f&r Major Categories of GS-510 Accountants Appendix 2: SuggestedAreas of Education fbr GS-510 Accountants Functions statement Becauseno HeraI standard describesin suflicient depth the nature, range, and complexity of GS-510 accouqants’ dictions and responsibilities, the project staff and,~~~managers & fiinctions &krnmt (ippetidix%ey$+nd-d~-- 1), T& &&$Td% hmmt duties i&n&aas p-din * major categoriesof GS-510 accountants: . StaffAccountant:Accounmts whose work is primarily devoted to aoxnmhg and hancial management p&y development aswell as generalmanagement accounting; . ‘OpkratioiwAb.nt&: Accountan@ whose work is primarily devoted to,day-to-day operatipns, financial ,reporting, and cost ,’ yM-@;qd ,, ./ (, l Systems Accouutaut: Accouutantswhose~work is primarily devoted .‘. ” ” to fiuancial management systemsdesign, development, .. .I~ implementario~~maintenance, anddo&nentition. ,, 3 :, Many duties of,these,three accountant categoriesare consideredinterchange- able, except for technical com@ter matters.~Therefore,identification of the com- /)’ mop jiimctibm. am&g f+&al accountantscan be &isiikd into five major areas: 1. Tecbh%l Guidanti: The undersw, interrelating, interpreting, explain- .’ ’ ing,‘and applying of accounting~d budget concepts,standards,principles, policies, and procedures,especiallyfederaI appropriation law, fund control, j ~accountingandreportingrequirements, and also computer skills. 2. Tpterpa,Contr$:, The monitoring and managing of a specific entity, program, or.appropriation’s accounting, administrative, or management controls. ,,l:. 3. Finaai$al Aualysti ind Reporting: The monitoring, reviewing, or examin- iug ofac.coun& spe@c appropriation, or entire entiqs financial records for interim status reports; monthly; quarterly, or annual reporting requirements; or other specialneeds. : 4. Systems Develcipment, Opera&n, andMaintenance: The coordinating, designin& developing, operariug, maintajniug, reviewing, and modif$ug of ” all atzc~unting~financiat, and related systemsfor effect@ financial manage- ment, inchding iuteractionwith budgetary and program functions, in accordancev&h Meral requirements and guidance. ,. 5; Sup&h, Leadersl&ip, ancj Comm&cation: The dealing successfuuy through interpersonal skills with a variety of organizational and individual ‘characteristics,loyalties, issues,and commitments; delegating and assigning responsibihties~managing information flows; communicating efhxtively; .,I.. ‘. and related behavioral matters. ” :. ;., _\ ., .‘i : ‘~C$II@QQJ s~~m~~t,c-~m~.,duplication, to better servethe needsof ‘a broadaudience with varied res$onSbilities in theirfinancial management en- vironmenti. To upgrade the functions and quality of work of federal accountants, we support agencyrecommendations to incorporate the functions statement ‘, into agencyjob or position descriptions in whole or by specific referenceto I, ‘, appendix 1;to cJarXyfederal accountants~duties. Education Areas fior P*& +untants The entry requirement fh GS-510 accountantsis education and/or experience tbat meets the OPM qualifhioti standard (seepage 9). ., J+s~o$.idundons. sta+mait qi +gpUamwledge, skiIs, and abilities, the susgestedsubject aieagkr,feder+.l accagam’ continuing prohsionai educa- tion we* deve+xL These &e &sented in appendix 2 and are summarized b&w: ,f .’ Con+&ngp+.@&leduc&& ’ ‘: ‘,’ 1. Updam, on generally accept&daccount& principks, concepts, and application, /’ :. ; 2. &zderakacwunw; bud@ing; and reporting references: Pederalaccountiugstar+~& l A~;yrJat$xGw l Sxfederal government and Comptrollek General . U.S. Governm~S~d Gmoidw~ i )lM.lP PM~Pinrutcial,~W# System requirements . ~g#.##&$jJ&$##J :’ . Federal budget formulation (OMB C&z&r A-11) l Federal budget execution (OMB Circular A-34) l 9 Appropriation (fhd wntrol) accountiug Other legal or rkgulatory requiremhts l 3. Other appropriate edvation:, Interd agencypolici~ andproceduk l * Agencyacco~tingmanu$sandhandbooks Organiz&~ri$ a$ program orientation l l O~-~-j&&&&&g l Maintaining adequakautomated or manual documentation l Statistical sari~ph$ ti Bpprdpri&te ’ . preventitmg,dq, ‘@ .&cOrting &&j l Evalua~ accountiug q%te~&~‘~, l Understanding compute* e@iptient, computer system desigu, development, controls, sofhvare, m&intenauce,and security l Databaseconcepts, ~pphtious, proceying, maintenance, aud analpis : : l Management of projects and resourcxk ‘_ . Communicationand~behavi~ral sldlIs The list includes appropriate subject areasto provi+ flexibility fbr specialha- tion of duties amoug the major categoriesof the GS-510 accountant series.The implementation of this list as a continuing professional education plan requires a strong orgauizational commitment to educateaud train stafF, Project Aceomplisiuuents and&stale Federal Guidance to be Applied by Accountants A separatelist of major federal guidelines to be applied by accountantswas developed.This list, presentedin more.detail in appendix 3, covers 9 ~P&zc@&x0$7e.&&~* pltls numerous ComptroJler . Generalandagkncydecisions l program and agencyadministrative IegisIation . genetiy acceptedaccounting principles ’ 8 federal accounting standa& (GAG Poby asd Pmcedwes&n&J Gtliclctnu ofF&d&mk, patti&Iy titik 2 and related payroIl aud fiscal requirements in titi 6 and7) l OMB budgetary reporting requirements and guidance 9 U.S. Government Standwd Gt?wraZb&er T PI& Federial.&ngmialM$qpuwt Systems:Cure Fhmcti System Reqnii~ti, which are ipmpo~ted in GAO, OMB, and Treasury requirements _’ . Treasury financial reporting requirements . .other requirements, suchas federal acquisition, personnel,travel, and records regulations : ,: Becausethesefederal accounting requirements are extensive,it may take 5 to 10 yearsto cover them in courses,seminars,~andon-the-job training. Federal Atiuntant Qylifi~~oai St&lard The continuing professional education neededby a GS-510 accountant is deter- mined in part by the extent of the indkiduall’s education on entering employment. The qualifkation standard estabhshedby OPM for a GS-510 accountant is asfol- lows (the qualification standardis combined for the GS-510 accountant and GS-511 auditor series):4 , (... 4 The statement is quoted from page 51 of theQ&z@ti Standmdfw Zb&radc Inter& P?vjhi& Positkms,Of&e of PersonnelManagement, June 1990. --- Project Accomplishments andResub Basic Requirements: A Degree: accounting; or a degree in a~relatedfield such as business admir?isbration, finance, or public admGtration that inckkles or was supplemented by 24 semester hours in accounting. The 24 hours may incl@e up to 6 hours ofcredit in business law. (The term caccounting’ mea.tx$‘accounthig and/or audit&$ in this standard. Similarly ‘accouut- an! should be interpreted, generally, as ‘accountam and/or auditor.‘) OR B. Combination of education and experience -at least 4 years of expexieuce in accounting, or an equivalent combination of accounting experience, colkge-level education, and tmining that provided profes- sional accounting knowledge. Applicant’s background must also iuclude at least one of the following: l.‘Twenty-f-bur semester hours in accounting or auditing courses of appropriate type and quality. ‘Ibis can in&de up to 6 hours of business law. 2. Aceticate as CertifiedPublic Accountant or a Certified lieemal Auditor, obtained through written examination. OR 3. Completion of the requirements for a degree with major study in accounting, auditing or a related field which includes substan- tiaI course work in accounting or auditing, e.g., 15 semester hours, but which does not fully sati@ the 24 semester hour requirement of paragraph A, provided that (a) the applicant has succeddy demonstratd the ability to perform work of the GS-11 or higher grade level in accounting, aud$ing or a related field, e.g., valuation engineering or financial institution examin- ing; (b) a panel of at least two higher level professional account- ants or auditors have determined that the applicant has demonstratedagoodknowledgeof~~~andofre~d and underlying fields that equals in breadth, c&p& currency, aud level of advancementwhichisnormaUyassociatedwithsuc- cessful completion of the 4-year course of study in paragraph A; and (c) except f?x literal nonconformance to the requirement of 24 semester hours in accounting, the applicants education, train- ing, and experience fidly meet the specified requirements. Project+izcomplishments andResults Continuing Profbsional Educatim The need to maintain proficiency throughcontinuing professional education is co&on to ali professions.The federai audit community recognized the need for cx&inuiug professional education and incorporated a recommendation in the 1988 revision of the Gov~mt+Azu#ti~ Snwdwd?. These standardsstate that auditors should obtah at least 80 hours of continuing professional education every 2 years.Two reports issued by the President’s Council on Integrity and I3fEciency (PCIE) also addressedauditors’ training: the St&y @X.&W Z?aK~, November 1987, and the 1988 @n@yad@naof Trahzhg ComesAvadubh in the FdmdAdit Gwtmmnity. Ideally, a continuing professional education program fix federal accountants should 9 complement an undergraduateor equivalent qtiahiication in accounting, businessadministration, or finance;. . include the unique accounting, lega& regulatory, and reporting requirements of the federai sector; l keep federal accountantsup-to-date u&h current eventswithin the accounting profession; and . provide the skiiis necessaryto apply new technoIogies in automation, infbrmation management, and accounting. It is recommended that agencymanagemeut require fhderai accountantsto obtain 80 hours of continuing professional education every 2 years,simiiar to auditor requirements. Accountants’ contifltljng education should inciude accounting concepts, assessmentof internal and management controis, sampling design, data anaiysis,and supervision. Training may cover subjectsrelated to public administration, public policy, economics, social sciences,and computer science. 5 U.S. General Accounting Of&e, GOP enavnestAuditiqg S&&r&, 1988 revision, pp. l-l and 1-2. CPE Model and Agency Implementation In deveIoping this report, the projqzt objectives were to (1) iden* the fbtions, knowkdge, skiUs,ad abilities of @haI accountants; (2) develop the subject areaslist for their continuing professional education (expectedpear- mance); and (3) reqmmend actions to.&efW fiaanc;al management communiity. The project team preparqhhe fc$Iowing continuing prokssional educatJoqm$eI to iI.l+r+lz the ,q+$, $cpE dqelopment, implementation, ‘xhd &aluatioti. ,P The CPE ~$ie~~~6ws , ,” I.;’ ” ‘I’. ‘. ,, ., . ,what theJ&Il? proj&tkcompJiskl and 9 what agency~t$ &anagement and ed&ation specialistsneed to do to complete the continuing education cycle. Continuing Professlonal Education Cycle Contribute positive experiences to CPE Compare actual to expected performance Provide CPE and Identify CPE differences, evaluate learning cite strategy, objectives Identify suitable CPE . . .-’ : ,._._.. _.. .,. . :._. ‘. _;...\.:v.. - ‘;,‘-i< ,.,.-“‘.-‘,.K j ; ,,,I ) ,;,‘a ;’ :: p.Fi..‘,;;i:r Upon receiving.this repo&, agencies%reenccGi3ge.dtd complete tht! loop in the continuing education model over a period of time. First, agenciesmay assess their accountants’performance with the JFMD? &xtions statement and continu- ing education list. This will help agenciesto idenb’fl educational needs,that is, the difEerenc6between expected (appendix 1) and actual perfonmanceby the agency’s accountants. It is a good idea to work with education specialiststhroughout the various stepsin the model. Project Accomplishments and&sults Next, agencymanagement can plan an education strategyto meet continuing education needs.After deciding agencywide education objectives for its accountants,the agencymay iden* suitable continuing education or train@, and arrange,conduct, or develop appropriate continuing education. Education specialistscan assistgreatly in focusing the delivery of the education message-a ‘-good combination for coursedevelopment is to team subject-matter expertswith instnictional design specialists. .. A&$ evaluating &rticipant leaming, agenciesshot@ contribute to a governmentwide continuing education databasethose (classroom or self-study) cqursesor seminarswhich resultedin positive learning experiences.In somein- stances,ifcoursiz materials were made available to other federal agencies,educa- tional opportunities could,~beincreasedat nominal cost. Depending on the status of department and,agencyconunuingeducation programs for accountants,it is ex- pected that some may need to do more work than others to upgrade their continu- ing education program for accountants. To develop good staff, federal managersstatedthat the best on-the-job-training for accountantswas extended cross-training of 1 or’2 yearsin eachof the major financial management areas:budgeting, accounting, financial and program analysis,and reporting; Such cross-training should also include headquartersand regional assignments.Combination of formal training with on-the-job experience, gained through extensive rotational programs and successivelymore responsible assignments,also develops candidatesfor top management and leadershipposi- tiOllS. Representativesfrom the Departments of the Air Force and the Army stated that their departments send selectedmid-level stafferswith severalyearsex- perience to their integrated financial management programs. Coursesaretaught fdl-time for a 5- or 6-month period. The curriculums include (1) accounting standards,(2) appropriation law and IegaI decisions, (3) budget formulation and execution, (4) Treasury financial reporting requirements, (5) internal manage- ment information needs, (6) internal control reporting, (7) aquisition and travel regulations, and (8) agencypolicies and procedures. Accountant tmining in the civilian agenciesdoesnot adequatelyfocus on teach- ing federal accounting concepts and integrating the various reporting require- ments. Such tmining heavily f&uses on proceduresor reiteration of reporting requirements. Federal financial managers’comments pointed out that the ability to apply conceptsand analytical @Is is,important for all accountantsbecause their dark s~~pd~ ~~~~~n~ daisy. ~~ beers observedthat acquiring such abilities is particularly important for accounting technicians or paraprofessionalswho have enteredaccountant positions. .l2 JZ!! CPB: PcdGlyt GS-S~O&ounwnt8R@ort ProjefztAccomplishment8 d,Rfzsuh .’ ,. : Relevant (hme~.,Ar& To Bind often Difiicuit The project staff searchedfor ‘an appropriate course databasefor federal accountantsto supportthe Cl?E subject areaslist. The available databasescovered coursesin flriance and supervision. They included coursedata provided by OPM, the Departments of EnergyandTransportation, theDepartment of the Army, the USDA Graduate School, and other agencies. Au available databasefully covering the subject areasfor accountants’ Cl%, however, did not exist. To Gil this void,the JFMII? Steering Committee directed that a compendium of appropriate coursesbe deveIopedand updated periodically. This supporting compendiuui of courseswill be available as a separatedocument to accompany this continuing education report. It will be updated periodically through agencysubmission’of courseadditions and feedback on course participa- tiommd evaluation of the learning experience; :I: Iu the current federai deficit situation, funds for traking are Jitnited GAO ,’ reported to the Congress6that 30 of66 responding agencieshad reduced training ibds by-10 percent or more,due to overall budget cuts required by the balanced budget act (Gratnm-Rudman-IIoihngs). Twelve agenciesreported cuts of 50 per- cent or greater. While train@g funds may be early candidatesfor budget-cutting, agency management should carefully consider such actions. The Vokker Commission pointed out that iftrah&g is understood to be an element of investment forgrowth and productivity, feaeral expenditures on train- ing are low. YIhe federal government spendsabout three-quartersof 1 percent of its payroll dollars on traiuiug. In contrast, many of the top-rated companies spend as much as 10 percent of payroll for this purpose, while the miiitary devotes as much as 15 to.20 percent of its payroll doiiars to this goaL”’ Monitoring CPE Management is responsiblefor overseeingthe agency’scontinuing education program aswell as monitoring and documenting individuai employee’s com- piiauce with CPE requirements. Agencies shouid document completed education _, I or trai@g~&nual..perfonnance,app&sai of:b&h employees and supervisors should~refkct compliance withagency Cl?E expectations. 6 Trhqg Bui&ctx A~enoy Bw@tMW itc RRspotwGto the Balmaced Bu&etAct (GAO/GGD-86-98BR July 16,1986). 7 LeadmapjhP2h&x Rdv&d&J the Public se&e, Vol. 2, p. 143. E Project Accomplishments andResults To monitor CPE, some agencymanagersare developing continuing education pIans and tracking systemswith assignedcredit for classroom, seminar, workshop, or self-study train& Teaching accounting in collegesand universities should also couut fix credit. Managers of existing CpEprognims may be contactedfor infor- mation. Some~referencesare the GAO Training Institute, inspectors generaistaff, and the U.S. Army Accounting and Finance Centen Recent studies point out that continuing professional education of federal government personnel should.&rease.‘The CE! SHY& 2000 report, issued by OPM,in June 1988, stated that federal train&needs should concentrateon high- ly ski&xl prof5ssionaiswith transferableskiils and in rapidly evolving fields. The report inch&d accountantsinthis group and further noted that the government will hire fkw from the private sector above the entry levei. Thus, the government must invest heaviiy in continuing development of skiiis. To maintain an up-to- ‘date skill base,agenciesmust reinvest in ,their technical work force at aii leveis. The report aiso~stressededu&tingfor the fhture.It stated that the obvious solu- tion to the difEculties in hiring the mosbeducatedworkers is to educateand train those already on board. Where skiiis are now or wiii be in short supply, agencies should invest in new schooling for current employees.Tuition aid, educationai sabbaticals,and even muhiyear advancedtmining programs should be the norm in agencieshaving &iii shortages.Where appropriate,.programs may require some cost sharing and ,theparticipant’s commitment to continued federal employ- ment. 4 In auother report, issued in April 1989, the Vokker Commission recom- mended that OPM’encourage agenciesto develop their own CPE programs, to arrange for comparable training with other government agencies,or to look out- side government for the neededtraining. while the commission statedthat OPM shotsld get out of the speciaiized train& businessand aiiow the agenciesto take more responsibility for their own training*, the JFMIJ? conch&s that OPM or other organizations must continue to conduct basic training for employees, particuiarly for those fkom the numerous small agencies. In addrasiug mid-career education, the Volcker report noted that government train& policies emphasizebrief, job-focused training. programs to achievenear- ,._ pxm rest&s. Long~termtmining~whichbasthechamcter ofinvestment in human capitai, was ,cbt froa most agencies’budgets: me recommending that agencies modify their policies to use the potential of the educational community, the com- mission also stated that academiamust respond witi vigorous efforts to build 8 Leauim~~Arntha: Rebddiqg the Publlic Service, Summary Vol., p. 44. l?rojectAccompli&ments andResults effective mid-career programs. Management shouldaiso have a basic under- standing that payoffs in tmining arelong-term, not, short-term. Agency management, under OMB’s budgetary oversight role, must actively and openly commit both policy and monetary support to CPE for accouutants. Without continuing education to focus the accounting and fkanciai management sta8%.onimplementation ofthe most effective ana@icaImethods and data for deaslonmaking, the chancesofinadequate or inappropriate decisionsbasedon incomplete data and information increasek- Sue;gestida ,~oti~fed&aI managersfoi &ainiiq that would cost lessthan on- campus,tmining include providing for self-study andexpanding university instruc- tion at worksites. By cross-servicingor speci&ing in se&ted course develop- ment .andprtxentatio~‘agencies co&i sharesome costs of developing Cl?E coursesfor accountants. ‘, In geographic areaswith large concentrations.of federal accountants,colleges may be,encouragedto inc&de in their accounting and public administration cur- ricdums elective doutseson federd sector accountingand budgeting. Arrange? ments between agenciesand the’academic community couid include certificate programs of s& to eight course3in reiated study areas,such as controliership or in- formation management. Ideally, credit for thesecoursescould be applied to an ad- vanced degree.As noted in recent prbfessiod reports and literature, trait&g of entry and careerprofessionalsshould be a partnership between academicinstitu- tions, the practicing profession in the federal government, and the private sector. Ongoing 33fforts to Restructure Accounti~@ Education Academicians and practitioners are addressingthe future of accounting educa- tion. Large accounting firms cite the Bedford &kmhtee’s repor? for its analyses and recommendations on curricuium content and teaching methods. They con- sider the report an excellent foundation for the restructuring of accounting edycation. Ten of the committee’s 28 recommendations addressthe future scope, content, and structure of accounting education, caliing for a broad undergraduate curricuium. The committee recommended that collegesand universities approach accounting education as an information development and distribution function. for economic decisionmaking. The report also points out that, in addition to the . .., ...A i’ ,. , ” 9 Norton Bedford et al, “Future Accounting Education: Preparing for the Expanding Profession, the American Accounting Association Committee on the Future Structure, Content, and Scope of Accounting Education,“lj;rlrceJ hAcwunti~Educati (Spring 1986), pp. 168-195. Project AccomplishmentsandResults traditional analysisof transactionsinto financial statements,the restructuring needsto expand instruction into such areasas disclosure.1o The Bedford Committee’s report addressesthe future curriculum as spanning five major educational components: generaleducation, generalprofessional educa- tion, specializedprofessional accounting education (at the graduate Ievel only), d-ml programsi and continuing education programs. The committee pointed out that close cooperation between universities,.accounting Grms, government organizations, industry, and profession&societies is necessaryto restructure the accounting.+@zulum, The Bedford Committee further stated that an early topic of study$ouUbe the nature, the design, and the implementation of information sys(==* The committee’s pIan12 for implementation by-the year 2000 suggestedthree phasesto the academic and practitioner communities: (1) gathering support- which is describedin a deta+d treatise;‘~~(2j putting it to work-target comple- tion date 1990, and (3) midcourse review-target date 1995. The Iargest accounting firms’! have,offered $4 million~in grants to support development of curriculums that are respo&ve to the needsof the profession; further, a coor- dinating &nmittee has been e+ablished.‘Iii support of the Bedford Committee and accounting firm initiatives, re#sentatives of the federal financial community should monitor the-progressof accountants’curriculum restructun?ngand meet and participate with the &mmittee to voice federal concernsand needs. Accountants in both the public and private sectorshave recognized the need to develop the entry and careeraccountant%ability to think, communicate, under- stand the nature and role of ethics, and use judgment to support decisionmaking. Federalfinancial managers,academicians,and the professionsl organizations are calling for more emphasison communicatioq behavioral sciences;andunder- standiug the entity% administrative processes,it&ding strategic decisionmaking and phuuiing, economics, managerial accounting, and use of computers and infor- mation systems. 10 “puture Accounting Education* p. 191. 11 *Puture Accounting Education,” p. 179. 12 “Puture Accounting Education,” pp. 194195. 13 JosephJSchultz, Jr., et al, eds.Rmhtin~AccoamtiqgEdau&im Reports ON the Enti?vrtmenG P?i@&ate, and Ctcrrictclzlm ofAcomtiqg, American Accounting Association A&ounting Education Series,vol. no. 10,1989. 14 Arthur Anderson & Co., et al. Penpectiv~ m Edwatim: Capabilitifi SWHS irethe Accounting profkrsionApr. 1989, p. 3. coNcnJsIoN Am kl3COA@kIE~~ONS Oven& the,task of estabhshingcontinuing $rofessionaI education for entry and careerfederal accountantsto maintain them at effective and productive IeveIs involves the commitment of top~leveI management in GAO, OMB, OPM, the Department of the Treasury; and aII the other departmen& and agencies.In view of the de+pments in accounting education, ,changesin the accounting profession, and the continuing criticaI need to improve federal financial manage- ment, we recommend that 6 1. Support a continuing education poIicy for federaI accountantsand provide monetary commitment fbr it. ‘0 ’ 2. Include iu GS-51O~positiondescriptions a requirement that accountants should obtain at leastSOhours of relevant continuing education every 2 years; and also incorporate this requirement in the agency’scareerdevelop- ment program. 3. incorporate the functions statement for federaI accountants (appendix 1) into agencyjob or position descriptions in whole or by reference. 4. Develop or update continuiug education pIans for accountants,using this report aSa guide, and aIso a. Monitor the completion of CPE and b. Assess,in annual.performance appraisals,supervisor and employee compliance with the agency’scormnuing education re- quirements. OMB: Support a continuing education pohcy for federal accountantsand provide monetary commitment for it. Incorporate by referencethe functions statement for federaI accountantsinto the governmentwide GS-510 accountant classification standard. 1 Appendix 1 PRIMARY FUNC’IXONS; AC-S, AND TASKS FOR AL’XJOR CATEGORIES ‘OF GtMlO’ACCOtJNTANTS This appendix lists the functions, activities, and tasksof federal accountants.Three major accouu~ cate@ries in the federal government aredifFerentid Thqe categoriescover staE accountants (which iuchdes poli~,tid generalmanagement account+@, operations accountants (which i&u@ cost accou+nts),~~d syste&‘acc&ntatits. Except for Fcal computer matters, most of the duties of thesethree &omtant categories‘he consideredinter&angeabIe, providing @ Uividhals m the reqtiitp k+owIedge, ~&ills, a&l abilities (KSAs) to carry out assigned filnitiolls. ‘rlll.6 KSAS f or“’ a&otik&s tik presekd in apppdix 2 along with a list of suggested areasof continuing education foi federal accounthts.~ ” I. TECHNICAL GUIDANCE RJ@~QJWBILITIES St&, ‘0ptxatins systems Acemutant Accountant Accountant Primary Functions, Activitks, andTasks Interprets, Impkments May assist A. Major accounting policy guidelines and directives provkks, or or herprets with monitors l to monitor and improve internal controis and corn iiance with the FederalManagers’ FinanciaFIntegrity Act (FMFIA); and l to improve financiai management analysis, accounting, financial reporting and dis- closure, and efkctiveness and efficiency of operations (coordinates with LB.) 1. Guidance, direction, and expert advice Provides Implements Ma assist a. Authoritative determinations applyin account- wi tl ing concepts, principles, and standar%sto accounting and financial activities and opera- tions Provides Piovid& or May provide b. T&3$moky, procedural guidance and implements merit leadership on &e over- all oFrationT o fiscal matter!, accoun$.ugand flnarpal systems,and Cnvc+ reportmg reqmrements fbr w 0rgamzaQons ap- propriated and nonappropriated funds 18 Appadx 1 Staff operations systems I. 2. .,’ Accountant Aeeoulltant ileemlltant l?rimaryFunetions,‘Actmitiee, and’&& Develops or Implements Uses,or c. De lrtment or agency.accountingmanual, updates oruses prescribes w lt & prescribesaccounts and recording of transactionsaccording to the U.S. Govern- ment Stw&& GeneraJI&qt~ (SGL), o erat- mg procedures?and inter.& and externi!i reportrq requuemen~ to provide for proper accountmg and reportmg of the orgaxuzauon’s transactions Establishes, May estab- Ma assist i%zilitaW, or li&uses, wi x maymain- .lllaixltains, tain or updates Directs, or Drects,. ,&Sip@, With e. Use of .consistentlycompiled programming monitors monitors, accountmg, budgeung, and reportir& data’and implements, disclosuresto promote better-informed or provides decisionmaking Provides Implements Ma assist f. Policy guidance and direction for compre- ivi tzI hensrvefinancial management functions and appropriate interreIadonships and assistance ~0 program functions to ensureagencywide implementation of financial management initiatives such as l cashmanagement improvements; l reporting on internal controls according to FMFIA requirements (seealso IIJ?.); l full im lementation of credit management and de%t collection according to standards in 4 C.P.R.100, OMB Circular A-129, and the Tremty FinamiuMiwzd; l prompt payment; l electronic fimds transfer; l travel management; and l use of credit cards Provides, Provides, Provides, g. Administration and program officials with coordinates, coordinates, coordinates, ap ropnate accounung policies, procedures, or advises or advises or advises anii Ttems for agencyaccounting relating to financral management and operaung programs to propose changesin internal policy direc- tives and recommend actions or alternatives to resolveunfavorable situations or problems (coordinates with LB.) ., ., ..,, ..c,, Participates’ Participates Participates h. Decision-making sessionswith management to in or assists in or assists in or assists determine and implement resolution of with with with problems Appendix 1 St& OptdOllS systems Acsounmt Aeeountant Aceoutltant l?rimaryFun&ns, A&i&, andTasks Develops or Recom- May recom- i. Briefing papers and decision memoranda to preSents mends mend dexxIxIv;terpret estabhshedpohcy gtudes Has May have May have j. Responsibility for drafting proposed changes to organization policy statement+ regulations, or proceduresto improve operatronsor to resolveprobIems Participates Participates Participates k. conferences, briefings, or presentitions in in in regarding effect.of proposed changesto methods and roceduresin the treatment of accounting lJ ’ ormation (e.g., concepts, theory, position, and other papers) Provides Provides Provides 1.Accounting and financial expert advice to l program operating officials on fund availability, operatiug procedures,financial management nnprovements, and other matters l budget and administrative officials on using accounting and financial recordsto make budget projections and formulate future budget and appropriation requests l management and chieffinancial officer (CFO) on use and expenditure of fund allocations for ongoin programs and plan- ning of new or reviseB ones Provides Provides May provide m. Advice and assistance.to to and supervisory management conce rePationshr s between accounung7 an finance anB its importance m 1) Achieving management%objectives, 2) Strengtheniug finand controls, and 3) Complying with fiuancial management improvement plans Maintains Maintains Maintains n. Liaison externally with GAO, GSA, OMB, or promotes or promotes or promotes OPM, Treasury, and ins ectors generalto coordinate department f!Ln cial management poIicies with governmentwide policies aswell asi.nternaIIy amo* offices responsiblefor ac- counting policy, i!i ormation resources,finan- cial operations, and legal interpretations Actsas Actsas ActsaS 0. Representativefbr the chief financial officer at meetin and conferenceswith management, GSA, J!%ice, and the central agencies(GAO, OMB, OPM, andTreasury) W -----.- - Appendix 1 St4lfE operatiolls systems Accountant Accountant Accountant Primary Functions, Activities, and Tasks 2. Laws, standards,regulations, and requirements Drafts or Drafts or MaYdraft a Legislative proposals recommends recommends or may recommend Ana+esor Analyzes, Analyzes, b. Theefkctof s in legiskion; GAO interprets communi- interprets, standards;or5% 0 , Treasury, or organization- cates,or or com- al requirements on agencyaccounting and monitors municates financial poIicies, operations, or systems management Converts or ,+npIements May prepare c. +egislation *andcentral agency@dance into tiommuni- ‘or recom- nn@xrientmg policy that consrdersthe unique cates ‘.: pleg.ldf ernuronment, systems,and operations of the asency Promotes, promotes,, Assists with d. Coordination of legislation with accounting converts, or implements, or may suuxiards and reporting requirements COlIlXlld- or recomb prepare cat-es mends accountkt~ policies, operations, , actwrties, and tasks Conducts or Conductsor Ma assist a. PI* orga.nization’sfinancial management participates participates wi x prrorittes and monitoring their accomplish- ments Develops Develops May par- b. Justification fbr required budget resourcesfor or revievk or reviews ticipate with financial management operauons, priorities, and initiatives IInterprets, Interprets, Interprets, B. Major financial management systemspolicy, provides, provrdes, provxks, or guidelines, and directives monitors, or implements, implements may assist or may 9 to comply witb with assistwi& - JFMlP FderdFinu~cial2Man~~t Systenwrequirements; l to monitor and improve internal controls and compliance with the .Fwand. _ _.. . : .” :. l td hnprove’accounting and financial reporting and effectivenessand efliciency of operations 21 ,-----_-- Appendix 1 ,,. II. INT#lRNAJXONTROL RE,SPONSlBILITIES St& opeEation8 sy5tems Aewuntaut Aceountant Accountant Primary Functions, Activities, andTasks communi- cQmmuni- Assists k Poliq, pperations, or systemsoperational standards cat-es, cates, with, pertammg p iut&ua.l control design, analysis, Prep?- implements, prepares, programmmg, and documentation momtors, or prepares, monito&, reviews monitors, or or revi~ reviews Monitors Directs, Directs, B. Revi& of organkatiidn’s &&grated accosting and monitors, or desig& or financial management reporting systemsor se ents Pr=- presents ,, to iden* source docuknts and worlcflok; Jr artand track.dFent contro1, systemsinterfaces,and defiuenues; and to recommend improvem+s in methods and controls to firstname.lastname@example.org@ GAO spd- ads, 0MB;Trvy and ortip+ reqve merits, and Sectron , FM@ reportmg reqmrements on 5nanual s tems assuring appropriate drsclosureof iinancialcon ccltion Reviews, Reviews, Reviews, C. Broad studies and reports of controls to determine anal 3or analyzes,or analyzes,or ~c$eness, efficiency econom , and security of conr ucts conducts conducts accounlitl~.d financi J systems,pohcies, ; 3 ures, opera- practi~s, staFmen@,and r?ports of goveFentaI and nongovernmental opera- tions (e.g., service,suppo& or supply contractors) Analyzes or Analyzes, As&stswith D. Modification of existing control procedties to meet communi- commuxli- changing requirements or to comply with new legisla- cates cates,or tion monitors Identities, IdeiUifies, Identifies, E. Common accounting and financiaI management analyzes, analyzes, analyzes, control problems (e. ., asinadequate fund control, &ZiV&MES, evaluates, evahlates, inaccurate da?, and fack of roper documentation at trouble- trouble- trouble- selectedor ational he P) and recommendations shoots, shoolx3,or shoots, or to correct r ficiencies resolves,or resolve23 resolves reviews and approves overS=, Designs, ASSiStS, I?.Adeq~ of organization’s internal controls in coordinates, maintains,, designs, Ongo , new, or enhancedsystemsto account for all analyzes, monitor&, coordinates, assets, “E; abilities, uity, revenue, and ensein com- reviews, or analyzes,or analyzes,or liauce with GAO“B ohcy and PnwdzmsT&-a n+k approves reviews reviews !Gtdunce ofFedqaL$yenc~, Titkk2, GAAP, the FM.Fl& laws govermug administrative control of fbnds, other applicable program or a n Ie * la- tion, and other requirements sg e&i &y&f! JFMII?, OMB, Treasury, and e organization _.-..-_-_- - Appedx 1 StdF operations systems Aeeountallt Aeeoulltallt A.eeountant~ Primary Functions, Aetiviti, and Tasks, Promotes Promotes PrOmotes G. Coordination of or tion’s internal control respon- sibilities as team ed@= ort among administrative, Gxxuxial management, and programmatic personnel conducts, Conducts or conducts, H. Qua&y assurancereviews, vulnerability assessments, gui$es, over- ass+3 in guides, or m+nal contro1an+ accounting or financial systems sees, or ap- assistsin revxws, as appropmkte proves ’ Es~!ish&es, IWpWies, Dt+gns, I. $ablishment and updating of edit tablesfor account- 3 mg, financiaz trave2.eqt, and program automated +&&& ,w, 27 or systep data to.ensye compliance with recording and ay=b=- reviews, 0; .asiisB’dth repoarngpr;lctlces analyzes &views or &vjew~,or Pr q or J. Spe$?catjons of new or enhancedautowted account- a.nalyze~~ analyzes alligs +g and financial reporting systemsfor appropriate ‘, mternal controls (coordinates with IV.B.) Cond&, Res ndsto Assists~ K. Reviews of accoun ’ olicy, operations, or systems s-q, or $esigns or designs to veriQ such contra ?!ii!L ctions as certification and iq?ects, or d.isbEement, quality assurance,commerciaI monitors accovts, efliciency, efkctiyeness, economy, and s-v, Monitors Implements Assists in L. Follow-up action in responseto central audit, opera- tional, or administrative recommendations III. FINtiCIilL MANAkZukuwT RESPONSIBILITfES (analysis and reporting) St28 ope+ions ~pxnlii Accountant Accoumint Accountant Primary Rmxions, Activities, andTasks Promotes, Directs or Assists with A Account maintenancefor appropriated and non- reviews, or hnp!FrneFts appropriated funds approves Day-to$ay accounting and financial operations (a$pg, chss~, reconciling, recording, and adjustmg transachonsand account bahnces,mcluding concurrent budgetary entries in general and subsidiary ,. ..I. .I i ; Iedge@ .md preparing repot ,td’~~~e appropfiae &%.%.~,-& with ~$yq.,.pd l federal accounting standards(GAO P&+y and Ftveedam&fid@ Gzcidartceof Fe&d en&s, Title2), l GUI? 9( or corporations, trusts, etc.), l laws aad regulations, and Appendix1 St&f opesatiolls systems Accountant Accountant Aeeountant PriamyFunctions,Activities,andTaslc~~ .m B. Management of specific administrative accounting areas Monitors, Monitors, Assists with 1. Management, administrative, and pro.f=-y?=r interacts, interacts, uel on the certification of the availab ty of verifies, or verities, or to preclude over-obligation approves approves :;. : Monitors, Monitors, Assists with 2. Pr personnel on:,mt, construction, and interacts, ill&lXlCtS; wor“5$”-in-progresspayments and interagency verities, or Vi*=, or reimbursements approves approves May Manages Assistswith 3. Disbursements and collection of funds to ensure manage, that accuratecashman ment exists through bill- reviews, or ing and cokction of deF ts aswell as payment approves under terms for purchasesor servicesreceived May review Reviews or Selectively 4. Payment of servicesor bills for purchases or may ap- approves reviews or prove approves May certify Cetim or Mayceq 5. Accuracy of supportingdata to’disbursiug g7ze may disburse function for payment of purchasesor services Promotes, Manages Advises 6. Payroll operations, including leave and benefits reviews, or approves May con- May conduct Assists with 7. Physical inventories to verify records and duct or condition or quantity of items and appropriately reviews adjust accounts,iffunction not assignedto others C. Financial and management analysis Promotes, Conducts or Assists with 1. Automated reviews of account balances overseesor promotes approves ,~~~.con- &s&g*&. andhi 2. Analysesand interpretation of accounting and duct, monitors, or promotes financial management data to monitors, promotes, promotes, reviews, or reviews, or approves approves Appendix 1 staff OptSdOXlS SJMXXtl8 Accountant Accountant Accountant h!imaryFuncdons, Aetivitiea, and Tasks l analyzeobligations, deobligations, and expenditure by budget actwity, cost center, and object classfor use in budget justifica- tions to OMB and to the Congress; l assistmauagement in decision-making duties in matters ranging from discon- tinuauce, changesin current or long-term operations, or new program development; l veriQ antideficiency violations; . identify deviations Corn management plans; l assessadequacyof current accounting policies, systems, or procedures; . show the effects of changesin accounting methods on financial reports; l ad~yze costs of organizations, programs, job orders, or other categories; l calculatedirect and indirect costs; l determine causesof cost overruns; . review status of revolving fuudand monitor its cashltxls to ensuref&d liquidily; l track reimbursable earnings; 9 determine adversetrends; and l recommend changesnecessary Reviews Develops or Assists with 3. Cost anaIysistools (inflation indices, cost esti- updates mates, allocation, or other distribuuon methods) Mayanalyze Analyzes Assists with 4. Forward fiuancing and multiyear procurement requests Provides Provides Assists with 5. Accounting and fiscal servicesto subordinate as welI as department or headquartersfinancial management organizations Promotes Promotes Assists with 6. Coo$ination of matters, such asfunds availability and mventory control, with budget and procure- ment staff Assists with May Not 7. yen &ims for final resolution or term&a- .’ ,ormay. prq=e, applicable ;I;-?~3 e sent of Jusuceor GAO according cheisee may submit, . .s or tracks 25 Appendix 1 St& operations sJ%tems Accountant Aecounmt Accoulltant . PrlnMl!v Funetions,Activi~, andTasks : D. Report preparation May over- Directs, As&ts with 1. Preparation recorxiliatio~ and consolidation of see,reviews, prepares, iuternal aud exterual accounting and CnanciaI or approves revrevvs,or management reports to meet legal or other report- approves ing requirements of the program, agency,or department; the central management agencies;the President; and the Congress, such as budget execution cashmanagement foreign military salesreports expenditure reports 0rganizationaI status reports allotment statusreports / quarterly, monthly, and/or daily detail reports . annual reports, schedules,and financial statementsaccompanied by appropriate dis- cIosure notes Monitors, Compiles, Ass~with 2. MultipIe reports, statements, and other reviews, or reviews, documents submitted b subordinate organiza- may compile monitors, or tious for operations wi t.i common characteristics, approves and preparesschedules,reports, and financial statements-to ensureaccuratereporting and identification of current or future problem areas Promotes Promotes Promotes 3. Coordination of interagency program and joint- *ding accouflting reports with other orgamza- Uous or agenues IV. SYSTEM RESPONSIBILITIES (development, operation, and.maintenance of systems with accounting, budget, financial, and relevant program data) St& opemtiolls systems Accountant Accountant Accountant Primary Functions, A&i&s, andTasks A. Automated s tern planning, research,or usageadvice, inchldiug lnc rmauon management and technology updates Pfmotes; Contributes Provides or reviews, or to oversizes approves guidance Appendix1 StdT operations s*ll.ls heountant Aieouutant Aicountant PrimaqFunuions, Activities, andTasks Reviews, ~Coordiuates Servesas 2. Prbject leader or manager fbr developing monitors, or with accouuting systemsor subsystems approves Reviewsor Drafis Provides 3. Overall direction of new *couumd’ approves fiuaucial system(s) projects, sp development actwitxs, systemprogramming, data baseadministration, audhardware and software maintenauce Provides or Requests or Provides 4. Technical assistauceto promotes provides . program managers, l flnauce and accounting offices, +l l othef agencyu&s and systemdevelopers Pr&ides or Updates Provides 5. Advice to management and accounting 0Ecer or promotes supervisory accountant on systeminter&es, controls, efFectiveness,and implementation of higher level required systems Promotes Prbmotes 6. Coordination of accounting and financial system or assists automation requirements with iufbrmation system personnel Promotes Promotes Promotes 7. Nonaccouutiug systeminterfaces May oversee Reconciles Conducts 8. Up-to-date inventory of accoun ’ and financiaI management systemsand off-the-s “a elfaccounting products used I.II an agencyto maintain account- mg and financial records Reviews or JustXes Justifk 9. Need hr primary or unique subsidi approves system(s) development basedon cost- wr aualyses,GAO standard, OMJ3 regulatious, user reqmrements, and multifhctional mtegration needs R.eviews Develops or Develops or 10. Innovative approachesto appIy automation tech- uses nology to major resourcemanagement problems I 1. : - .‘_ Part+ipates Participates Participates 11. In the design, planniug, implementation and use of microcomp~rs in accountiug envirouments 27 Appendix 1 St& opexations systems Aeeountant Accountant Accountant PrimaryFun~ns,Actmities, andTa&s Reviews lnsuires 12. The e6xt of higher IeveI system chaugesand about proposed chaugesolllocaloperations Reviews or Reviews Applies 13. Accounting system polici~, procedures,and approves l-egukiorls to systemsdeslgu B. Development of accounting and fhancial automated system specifications 1. Caordiuationwith usersto design specifications for system to meet users’needs Reviews Reviews Develops 2. Functional s~catious under contract or in- house) ibr accountiug and fbancial systemsalong with poIicies; roccdures,aud user iustruetious fbr designatecfoperating levels (seeaho II. J.) Promo&s Conducts Assists 3. @views of detailed designsof systemsptxifica- tlons to ensure conformity with GAO standards, OMB.a+ Treas~ requirements, asweli as ~~~ondaxs, procedures,and standards C. Test& validation, and installation of accounting and f&unuai automated systems Reviews Conducts Coordinates 1. Tests and validations of ntiIy developedor or assists euhaucedaccounting and financiaI reporting sys- Reviewsor Reviews Analyzes 2. Systemvalidation and test resuks approves Eusur~ or Assistsill PerhIlls 3. Installation of systems(Iocal to organizationwide) monitors Promotes or Reviews, RLeviews, 4. System chauge requests approves may ap- =Y ap- prove, or prove or FYP tests Promotes Conducts or conducts 5. Field tests of trainhg materials assim with or assists with Appendix 1 Staff operations systems Accountant Aecoulltant Aeeoulltant Primary Functions, Aetivi&, and,Ta&s ._ D. Documentation of accountirig and financial automated systems Approves PlXpltS Prepares 1. FLlnctiollal description of systems Reviewsor Defines, Assistswidl~ 2. Accounting and financial systemrequirements, appkoves sets, or such.asaccount coding structure and reporting Utilizes reqwrements in developing or enhancing systems PartiCi~kS IA&j Prepares, .’ * 3. Dveloptietit of fina.wiaI Systemsmanuals, ‘in,+stsor reviqq rewks, ph;. operations .hdbooks, systemsoperating 9pp@+ tests, or t&if, @ly prqcedures,and trairhg materials for new or approves approves revmd systemsand ~procedures Recom- Recom- Makes or 4. changes to accounting policy, operating .proce- qemis or mends or recommends dub, and automated data systemghidatice to approves may a$prove euhance such system operations Moni(ors or Monitorqor Mainkius 5. Up-to~~t~~ documentation relative’to system approves approves opeepons, design, and khanges ,I’ ,, Promotes or Reviews or Maintains 6. Documentation of ail computer program testing approves approves Promotes Requests Issues 7. Necessarytraininginstructions V. SUPERVISION, LEADERSHIP, AND COMMUNICATIONRESPONSIBILITIES St& op!ation8 systems Accountant Accountant Accowmnt Primary Functions, Activities, andTasks May super- Supervises Supervises A. Worlcphus and professional or nonprofessional stafFto vise carry out licy, operations, or systemsleadership responsibP‘ties Servesas Responds to Servesas B. Proj? leader or manager fbr organization’s special stucba and reviews monitoriug compliance with policy, operations, or systemsresponsibilities and procedures Appendix1 StdF operaliolls sm’ .’ : ,., Acwulltant Aecoulltant Accountant Primary Functions, ActMtk, andTasks Makes aaakes C. OraI and written resentationsto superiok and top management anB other internai and externaI hxested parties to advise and report to them poky, operations, or systemsdeficiencies,ways to improve, andcorrectiveactionphs Provides or Provides or Provides pr D. Adequate internal and externaI trahing io&uus to promotes promotes promotes enye sMknows laws, n&s, and reI& tiolls as weu : : as cur&t trends and developments i&&kcounting ,profkssionand related fields ,,. ,’ . Proyidesor Providesor P,rovidesor E. .Development and pa&i ation in anacco~~ prgmo@s pq+Js~ promo-. iutern prom model eB;rft;erthe Pr@de&al Managemat Intern (PA&l) program, for, tintroIler, generaIfhki~planagement, and sujpen;isory ‘accountaxltposltlolls I ’ ). Promote8 Promhes Promotes P. Greater irktielation bet&x& &nning,~budget, accounting, and kinancial management functions Prepares, prepares, prepares, cohducts, collducts, conducts, ,’ updates, or updates, or updates, or promotes promotes promote3 ,Fi Appendix2 ,, ‘,. SUGGESTED AREAS OF EDiJtiAi’ION PORGS-510 ACCOUNTANTS This appendix presentsaccounting knowledge, skiIls, and abijities (K&Is) that federal accouutants need to perform thkir accounting fhnclions. These KSAs are derived from the federal accountant &r$tiqns statement (append.@1). T+e accounting and reked education column presentssubject area&The subj&.ind* kderal +yting standardsand requirementi (seeappendix 3), the karniug of which normally requires 5 to 10 yearson-the-job trainiq supplemented by coursesand scmiflivs. @lb+~educationlist was developedin conjunction with ongoing studies, revisions of classifkation and @alifkation standards,and other sourcesas list& in the bibliography to upgrade the pro&s- sional stature ofthe GS-510 accountant The accountant%work and conkming education are the basefir long-term financial management improvement in the federal government With the rapid changesin automated technoiogy and constant refinement of accounting and federa budgeting conceptsand standards,continuing professional education throughout everyone’scareeris imperative. Individuals who join an agency at the middle or senior management Ieveh should review this list to determine what lmowkdge they need to meet the basic technical background fix federal account- ants. Prior on-the-job experiencemay be acceptedaccording to individual agencypolicy. subjectareasof accountillKandrelated eduwion* Recommendedcourses: Accountingprillciples Accounting theory Intermediateaccounting Advanced accounting Cost accounting Businesslaw programs) ix&ding preparation of Statistics a propriate financial statements and Computer science c&d osures. Elective courses: FinanciaIallalysis .&westment accounting Jndustry~s ecificaccounting ,,.‘.‘. r. *.-. ,.., .., J!&Ggq!l-a=Q~~g ,I. 7,,.,..,; *+ 7, XI ..,~.~‘“~~“.‘.:,,“‘““‘,” Oth& speuti accountmg, Enance, or businessadministration courses ,GMl? updates on principles, concepts,and applications * Except hr item 11, the subject areasapply to the entire KSA item and not a spe&c subelment. o~x++!n<s: ciixda&l, “sunget. Pqrmtition”; cirdar ii-s*, =mdget Ikcudon”; arid other issuances Treasury FinaneiaIManuaI (Tl?M) requirements Appropriatiy a&unting, with emphasis on fund control and fiuld availability Special areaaceountiug Trustfunds Revolvipgfbuds Credit management Other regulatory requirements Pro& fitiancia .,data ,, 1 For amorc detailedlist, seeappendix 3. 2 Theterm%ndcontror”r&rsto mamging eongrcssionally-appropriatedfunds (obligational autbority) to eusurc that (1) tbcy arc used only fbr authorized purposes, (2) they are economically and e&iently used, (3) obligations and disbursementsdo not exceedtbc amounts authorized and available, and (4) the obligation or disbursement of amounts autborkd is not reserved or othcrwisc deferred witbout congressionallcnowlcdgc and approval. Every agencyis requ@edto have .asystemof a$ninistrat@e control of&&&,~~prov&$b~~~ Director oftbc Office of Management and Budget, that will restrict obligations or expend@res for each appropriation to the amounts appropriated and apportioned or reapportioned for the current fiscal per&L In addition, the systemused to control funds admkistmtively must fix responsibility for creating any obligation, incurring any expenditure, or making a disbursement in excessof an apportionment reapportionment, or other subdivision of authority. The requirements fbr thesesystemsand the fund control reporting areprescribed by OMB. i_ Appendix 2 subjcctarcasof ,ycoatiq~ditcdcdafPtian ‘, 2. Understand, develop, and apply external central agencyre@rements asstated above, reporting r uiremats for central agen- sup+nented by mternaI agencyand other train- cies (GAO,“40MB, OPM, andTreasury) ingmxentrahgency kequirementsand GAAP onaccounting,budgetary,udgetary,c.ial updates on principles, concepts,and apphca- rep. , payroll (leave and benefits), l tiousintheareasof and GS on travel regulations. 7 Federalfinancial report@ TtwswyF&MMd ” Other reguIatory reqkements OPMFedivaJPersmnel2Mknlcal l@id&~*&~tclaciotts (FAR) Pedqral trayA regulatioti .T?ede*rekords ‘kg&i&s 3. Understand and appIy internal agency lnternaf agency&an&l pokies and awxming, budgetary, andfi.Imdd procedures reporting r uirements, including grant, contract, an“8 procurement monitoring. Agency accounting ma.uuaIsand handbooks Program regulations and handbooks 4. Understand and @nplementor apply the Orga&zati&al and program orientations organization% mwslo~ laws, program provisions, regulations, and rocedures A propriate legal, regulatory, and proceduraI mwordinationwithin temaFaccount- if ereqes. (i.e., Debt CoIkction Act) and simihr ing, budgetary, program, and financial activities afkcthg management and operations reporting requirements 5. U&&stand the,inWeIatioqhips SametrainiqasJistedinitemsland2above, g;sd= supplemented by .. bdlFt=Yi Program, On-the-job experience (hcluding intra- and a. Apply auaIytical skills to the data interagency cross-traiuhg through rotation) b. Iq -ret efkcts, fhancial coursesill “fE cations, and trends imp Management information requirements c. Prepare and summarize fhxxasts statistical sampling Appropriate mathematics 33 Appendix 2 6. Use researchmethods and techniques: surveydesigll 5 Databasedesign a. Apply statistkal sampling techniques statisticalsampling .togatherandardyzedata Statistical analysis Statid sofisvare ‘, j b. Recognizetherelevanceofdata C.l?lanstepstoverifydata d. Test datacollection procedures e. Test verification procedures ‘, 7. I.& lenknt i&&i&s ohh~ JQint Finan- JFMlP seminars, forums, conferences,reports, CJ’ Man&&n$nt Improvement Pro- andstudies gram and the cential overs’ t agencies (GAO, OMB, OPM, and Preasury). 8. Ap ly and evaluatecontrol star&u& for InternaI control standards(GAO Pal’ ltttd Bv- fkd! raIgovernment accounting and ccdtiru~d& Gidmc ofFder lr Apn~ciw, reporting requirements: Titlc2, app. II) a useflowGhartingtechniq~ Accoux+ng SystemsStandards’(GAOPoZ@ a& desigqed to &us oninternal controls of l+llccd~ru~d& Gu&mc OfFhdAgen- dlesystem ciG.F,T&k 2, app. III) b. Recognize the significance of F&d Managkrs’ Fhkcial Integrity Act vtdne~ility~rnen~ini~~g @=I internal control weahsses OMB Circulars A-123, “Internal Control Sys- C. tems”; A-127, “pinancial Management Sys teqs”; and A-130, =&hnapent ,of Federal InfbrmationR.esources~ ” i. _ .‘. . I_ . . . _ . .’ . .! ., .’ </. ; “6 : 34 /’ “!’ Appendix 2 S&je&areaa,ofs’ I : acw*‘d.relatcd*h ,, ./. 9. fthage SpecXc admiuhmtive account- Projectmauageinent~~ .’ ., UlgareaS: Resource management .Thne management a. Plan, organize, and prepare project Team pmtion and mariapent outlines and worksteps Individual job lan@ng and management Management Pk techiques b. Prioritize and delegatework ~perfhlanceand~productivi M@t&ung appropriate automated aa manual c. Modi@ w& to fit thxfhxs documentation support / ;. .. : ,. ,,.’ , ., -, .‘,‘1 ,” d. Document work in automated or IRf * for payroll,, 1099 .keporthg, travez manuaIiik3 , and other responsithies for required : :, 7e&P Yagency e. Report accorditigto requirepent I., :I .,- P*ral Acqu@ion Regulations GSAal$-l cy travf$ regulations Other rer eo*,ini le ‘entig &gisIation such as Prompt paynient Afctp .’ ,’ , ., ,, -I- : 10. Understand and use organization’s Data processing hardwareandsoftwareto Basic computer use AppIication of a pro riate computer so&are a. Design databasesand data colhxtion (mm0 or mainfknejj systemsandproced~~ Databaseconce$s, applications; and b.,Mahtain automated financial maintenance informalioxlsystems DatabaseauaIysis “, ,’ ‘c. Use exist@ databaseto create Computir systeni d+& ‘: another database System design in Worn&xl enVii-onment Designingsystemsurveys d Store and maintain data in usable ibrm ’ Computer systemanalysiS 0 Computer system huagement e. Corn Iy with security laws and Computersekurity refJ ations Tekommunications ~pplicatiork f. coIlsuItwithtechnicaspecialists .’ whennecessary Understanding computei equipment co&&ration g. Advisesubordinate 0nusingADP software and equipment Understanding specification develo ment and review for computer equipment, soixv are, and h. Ident@ and solve databaseproblems appropriate controIs 3 The Prompt PaymentAct of 1982 (Public Law 97-177; 31 U.S.C. 39) provides specific criteria to federal agcncks for de-g due dates on commmcialinvoices when relatedcontracts do not include payment--timing provisions and requires agenciesto pay interest penaltieswhen payments arelate. Appedix 2 ~subjcctarcaaof~ ; ’ accountingand~atcdcducation I. 11. Exercise supervision and leadership: ‘. a. Advise subordinates and management Brie&g techniques and interpersonal com- on interpretation of standards,laws, muuications remlations. and uolicies. or &her *wktraints;ti&g accimhg, budgetxy, program, andhancial retxktiix areas *- Y ,’ b. Participate in and idvise Problem-solvin and decisionu$ing and ass& s@ordinates MariagerialI eaf mEp ::I,( > pr+bkms atatatatatatatatatat tc~selectand II& ‘Managiugpersonal and organizational change appropriate Analyti&.tidm* Managing performance methods; formats, and@ocedukes c. EfFktively motivate employees Motivating assistants supervisorytraining’ Chnmuuication with all personnel IeveIs ,.’ d. Evaluate the adequaq of Cc;*~“f”““” appraisals,counseling, subordinate’s work e; Interview job applicants and select DefiuiugneededskUs best candidatesin compkacewith Conducting job interviews personnel processes E Plan and conduct training Instructor or facilitator training ., .:,.;:.. , 36 Appendix 2 subjectarea8of accoe and related education 12. Commuuicate the meaning of numbers Briefiug techniques effectiveIy, orauy and in writing, to Ruuniug effktive meetings a. &wide ap ropriate iuformation tx3 present ani potentiai usersto make Interpersodcommuuications rational investment, credit, or similar decisious I3fRctive listening b, Present anaIj& of amounti, thing, Pubiic speaking ad u+rt&nty ofphospective receipts andexpenditure Preparing, writing, and editing correspondence, >j I. reports,,and presentations c. Provide hfor~~~tion about the ” a@able resources;claims to such 1 Prae l financialstatements, disciosure resources,and iilqeffects oftransactions, notes, 3 speciaIreports events,and tzircbstances on the entity% resources d Focus decisionmakingonIimiti resourcesand/or other coustraints ;. e. Focus on efficiencv and efkctivenas of activities to me&we successofa program or entity f. Exphinaccountingstandardsin nontechnicaI Ianguage g. Report on stewardship of respousibiIities 37 .’ !, ‘-., ,., ,, ... ,GAAI?: :% ‘, _‘,, ’ ,; .‘, ‘ ‘./ StandardsBoqd (ENS@ are geuerally applied,iri &XI&$ tirpora@o~~~‘~ ~co+we with the i ,prokisions &i fhtli i& thek euabw authorizatioti kderal agencit$generally~foIlow federal acEauntingscandardsrnaintainedinGAOPo~asut~~~2Mknualj6r~~F~ Apzc&i, Ti& 2, To tbkexteia &it @ida@e is not provided .by-@tsource, ~a&nciesareto tillow other g&a&k +.kpprop@e ,&v&ped by thk GApi ,@B, ‘;Ireasury; he Financial Ac- cm&g &tin&& hard (RUB), and the Governnieht Acchhg S@I.I~$ Board (GASB). GAO: ,’ ’ ,’ ./ :’ ,‘, ., ‘_ ” Principlw ofP&dAm, ,lst ed, GAO Of&e ofthe General Cqunse~ ,(washington: GPO, June 1982): ., ,, De&h of tht CIb+dbr Gent& oftbe Wited Stata ‘I ,: Policy andPvvcedtim~d* G~&nceofFe&rd*~k: Tit& 2, Wcounting Principks aud Standards,=Aug. 31,1987; T&I%6, “payroll, Leave, and Allowauces,” June 5,1989; Tit& 7, *PiA Guidaxw~ Feb. 12,199O. Acciwtztiqg Guide; Ba& Topiw ReW~~to~~rntcl Wabh (GAO/kiFMD 90-5, Jan. 1990,exphuredrafk). . JFMIP: Fe&rdFi~~~t&stems: Cmc Fhanchd SystemReqGw&, Jan. 1988; Pevroww@~ll Syste~RequiremtWs, May 1990. OMB: Circular requirements and related bulletins: circular A-11, “Preparation and Submission ofBudget Estimates,” July 2,199O. Circuiar A-34, Tnstructions on Budget Execution,” Aug.‘26,1985. Circular A-123, %ternal Control Systems,” Aug. 4,1986. Circular A-125, “Prompt Payment” Aug. 19,1982, and amendments (being revisediu 1990) 4pendix3 circular ,&+27, ,$L&l M-tit SystcmsjsDS 1984 amended by Buhh M-85-10, ‘%anchIMeent &d Accounting’Objectiv&,” &. l&1985, Bulletin M-85-16, “Guidelines kr EvaluatiDg Financial Management and Accosting Sys tem$ May24 1985, BuItetinM-86-28, ThancialManagement SystemsWith Standard Generalkdger (SGL) Attadunent,“’ Sept. 19,1986, Bulletin M-88-32, ‘XstabIisbing Financial Management System Software Program,” (com- manly known asthe GSAProcurem em Schedde), $q$. 2?,,,1988, &mal CaJ.I,kx l?edqaI Managers’ Finaqci# Iqegri~~A& (FMFIA),Rep&a, July 5,1990, Ann@ C+lJfor ~-&XI! Fhancial Systizmglans, June $(I;:1989; ‘. ~, OPM: lb&ion CbMti StirdfiAccunnti~ Seriw, GS-510. Washington, DC: Of&x of Person- n&hqeme~ December 1989 (supersedesFeb. 1961; amend&I (TS57), JUIX 1965). Positi Cf,aa#ah Sttandurdfi~~ Stvits, GS-511. I&sbington, DC: OfIke of Personnel Managemen~May 1982. $&4qicatiS~&~Acwn nti qg snita-, GS-510. Washington, DC:,OfEce ofPersonnel Management, June 1990. Zhkw~E4wz~~~~, rehed bu&&s, and SpppIementalguidance. U.S. Government Stmdurd Gtvwrul~~, 1986. . ... ‘.;j ^ ._..a. : STAFFING LEI&Lf3 ,dP GS-510 ACCOUNTANTS BY’AGENCY NlldMX* Army,Department&he . .. . .. ..V......................~..‘...... 2,666 Air Force, De@rtment ofthe. .................................... 1,468 Navy, Department of the ........................................ 1,404 Agritulmre,D&mtof I’ 702 .. ........ .... ................ ......... He&handkumanS~~,I)epartm&tof ......................... $89 Treasury, Department of the ..................................... 542 Interior, Department of the ..................................... 439 Veterans AEairs, Department of .................................. 414 Transportatio~~Department of ................................... 393 Energy, De+rtnie& of ......................................... 382 D&ensk Logistics Agency ........................................ 373 Housing and Urban Development, Department of .................... 326 ~ristice,‘Department of ......................................... 293 General~ti~Administrati0xl ................................... 249 NationalAeronautics andspace Administration.. ...................... 197 Coxiunerce, Department of ...................................... ‘171 Environmental Protection Agency ................................. 160 Securities &lkhange timmission ................................ 151 Labor, Department of .......................................... 136 Department of Defense (other than Army, Air Force, Navy, and Defense Logistics Agency) ....................................... 114 State, Department of .......................................... 76 Education, Department of ....................................... 58 Small BusinessAdministration .................................... 50 OfEce of Personnel Management .................................. 48 Other agencies ................................................... 493 TOT AT.4 11,894 * These figures representthe la-t available OPM data as of June 30,199O. -- Appendix5 ” MAJOR CONTRIBUTORS TO THIS REPORT Joint Finand Management Improvement Program: Senior Project Director . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Kenneth Winne Project Director, , . . . . . . . . . . ..‘............................... Judithkerstenberg ‘, Other Contributors: .,, / / Reviews of Functions Statement and SuggestedAreas of Education List: ‘, , @putment D~+-m&fH’&,&&0fAgricukure jHm& .,...;,;..........~.........~............. ‘J&. Per Ben Ezra . . . . . . . . . y . . . . . . y’...... ~. . . . . Jpe Per&one Department of Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . williamFurmall Departyq ofTmpo*tion y.........,y.....................,.. JosephCapuano Department of V&era& Af%rs . . . . . ..a..d......A..................... Myrta Sale @deral Energy Regulatory Commission . . . . ..*..................... Steven Porman National Aeronautics aqd SpaceA&&i&ration . . ..?........................ Lew Lauria Oflice of PersoxinelManagement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Richard Indelicate ~~‘~f~p~~ Department ofAgricukure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Peter Ben Ezra Deparmxnt of D&nse . . . . . . . . . . . . . ..y...................... Herbert A. Kraft, Jr. Departmeiit ofEnergy . . . . . . . . . . . ..*............*.................. JamesReid D;eP;artmentof Hkakh tid Human Services . . . . . . . . . . . . . . . . . . . . . . . . . . ‘Dennis Fischer Department #the titerior . . . . . . . . . . . . . . . . . . .. . . . . ... . . . . . . . . . . . . . WilliamKendig Department of Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . W~amFurman GeneralAccountingoftice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Linda EhrIich J. Tom Luter Janett Smith ErnstandYoung . . . . . . . . . ..v................................ Cornelius Tierney Financial Accounting StandardsBoard . . . . . . . ..a..................... David Moss0 Grant Thornton . . . . . . . . . . ..I.................................. Richard WUett KPMGPeatManvic.k . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Harold Steinberg Price Waterhouse . . . . . . . . . ..a.................................. Edward J.HaUer . BIBLIOGRAPHY American Accounting Association American Account& C&mission. *position Statement No. One: Objectives ofEducation for Accounta&‘. Sept.=tr 19 . Arthur Anderson & Co., et, al. ?lkq&ti~& ori Education: Capabilks fbr Succek in the Account- ing Profkssion” Apr. 1989. Brown, Ri+d E.Aemnti~andAmn~ iiz Pdehi~a~. The American Society for Public A.dmuwmtioa Waslungton, DC.: 1988. ,’ Bowsher, Jack E. lI&ati~Ammkz.- LGsJmtJLGcwncrl in theNatids Gpokathms. New York: John Wiley & Sons, Inc., 1989. ., Campbe& Robe@J., ‘&st-EfF” Compu~r-~as~,Training,* ?‘&hz~ k&~~$]iww&, Vol. 42, No. 7, July $?88, pp. 62-66. Clarke, Lillian W., *How to Integrate communication Sk& into the Accounting Curriculum,“BtwJ- nd3due&Forrwrc, Vol. 41, No. 6,Mar. 1987, pp. 15-17. ” Cdlins, Stephen H., %keting the New GO-Hour Standard,“Jbtlmal g?klccuwz~~~, Aug. 1989, pp. 55-57. ,’ ,’ Chq&km of l+ah& CoumwAvailizbk itz theFclllmcclAdt Chmwz&y. The President%Couucil on Integrity and Efficiency. Washington, D.C.: 1988. CompteY Sewti~: c liancew&b lWniqgRty~kemen& of th Cot&&r SeewityAet,~1987. U.S. GeneralAccounting i!ili ce (GAO). Washington, DC. (GAO/IMTEG89-16BR, Feb. 22,1989). D&y, Ekn and Liuda La&, “How to Sat&Q the New CPE Requirements,“$w& ofXccuwzhwy, Peb; 1990, pp. 65-68. DioGuardi, 1. J., “why Doesn’t The Government Understand Accounting?” Phuwk&wz&e, Sept./Ott. 1988, pp. 27-31. Ed& Reqdmen&jjGr&q into tbeAecantiqgl+@askm American institute of Certified Public Accountants. 2nd ed, rev., New York Feb. 1988. Egenolf.. Robert V., and Fred Nordhauser, *Status of Governmental and Non-Profit Accounting Education In Master OfPA/A (Public Administration/Public A&irs) Programs,” Z%eGovmmt Amwaw~ Jmmd, Vol. 39, No. 1, Sprhigl990, pp.39-45. Expeknee andi%&& St&y, GS-510, Accountant U.S. Army Finance and Accounting Center. Indianapolis, IN, Oct. 1989. Fe&dADP Pemwmel:Reemhnmt ./. andRe&ztiw (GAo/IMTEc89-12BR, Feb. 7,1989). FulmcrlEmpluym: ComnrmcGDq~~sRec~~ofThrcc~~PPariciotw (GAO/GGD- 90-41, Jan. 18,199O). Fedmd Rmwitigad HiGn~:Mahiqg GovmmtJobshde to Pmpctive Employees (GAO/GGD-90-105, Aug. 22,199O). Bibliography lkxtndal Management: OveraIl PIan Needed to Guide SystemImprovements at Educa~on ~(GAO/AFMD-88-l5,Dec. 1987). FiWInte&Act: I&~ Cuntn&Rm&in I~~cP~dpvogrccntJ~BtiimrJinLavw (GAO/AFMD-9040, Nov. 28, ,1989). ;: Forman, StevenD., me Federal wernment Operations Accountant-ANeed for Upgrading,” .I The CG?nmmhtAccunntan~Jond, Vol. 38, No; 2, Summer 1989, pp. 33-38. Furman, W-T., 5Zigher Professional Standards-ADiExent View,* TheGinwnmentAcwnnt- antsJwd, Vol. 37, No. 2, Summer 1988, pp. 29-31. w-.-v I-r ‘-‘““‘““‘~ WRWrn .------7 _ -_ ,--- --- ---- - ---- -- ing4hxiation committee on the leofAccountin~Rdllcationisalsloknownas~Be;dfbrdCom- ; -. - Govmmentall Tmbiq~l+vj&. Assdciation of Government Accountits. Alexhiria, VA: 1987. .‘. ,\* Hea$ Loyd C. aAccouuting, Communication, and the Pygmalian Syndrome,“&w~tiqg H-, Vol. 1, No. 1, March 1987, pp. 1-8. Hedrk&T~rry E., “New Challengeskx Government Managers,” TheBwtmwat, Vol. 19, No. 1, Spring 1990, pp. 17-20. Hicks, Margaret, and Victoria S. Ryxner, “Paraprofessionalsin Public Accounting-Current State of Use,” 2% CPA Jd, May 1990, pp. 84-86. ,’ Higley, Wayne M., and Richard E. B&r, *A Comparative Analysis of ProfessionalEducation and Jkensure Preparation,“lrsuRr itt~m~ti~~wa~, Vol. 2, FaU 1987, pp. 220-236. The Hudson Institute. Ch? &w&c 2000. U.S. Of&x of Person& Management CareerEntry Group, Washingtou, D.C.: June 1988. Hughes, Jessey.,.a,nd Dennis W. Kerns, “Education in Governmental Accouuting and Auditing: Whose Respons~bhy? 2% Ginwn~t&conntan& Jorcmccl,Vol. 36, No. 1, Spring 1987, p. 54. ‘. ” k/‘.’ J$Fcoat, C., et. al. Tmk Fone Rtpt otcDmGkrping Cliw@dm SW&@Acwusta~&. Associa- uon’of Government Accountants, Alexandria, V& May 31; 1988 (cover letter). ! JobAmdysh: Develiph~andDowntmtiqgData. Of& of Perkonnel Management, Was-n, D.C.: Dec. 1973. Kkso, DonaId I&, ,andJerry J. Weygandt I&e&n&k&A J&I Wdey& Sons, Inc., New York: 1988. Knechel, W. Robert and Doug SnowbaIl, aAccounti& Internships and SubsequentAcademic Per- fixmance: An EmpiricaI Study,” ThcAccounti#~R, Spring 1987, pp. 799-807. Bibliography Krause, Paul and StevenJ. Adams, *Are Management Accountants l?rofessionals?“&zqg~~ Accotmtitqq, Vol. 68, No. 10, Apr. 1987, pp. 36-62. 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Theplcblic Senh: IsawsAfictiqg Its&&y, h’i’ctivmm, Int&&$ && &war&tip (GAO/GGD-90- 103,&pt. 13,. 1990). T SchuItz, JosephJ., Jr., et al, ReorientiqqAcc~~~t&Uu&ur~ Repmk m theEfitimmG Projk- so&q and Cwkulwn ofAcc0rctiq.g. American Accounting Association, Accounting Education Series, Vol. 10. Sarasota, FL: 1989. Schultz, JosephJ., Jr., ‘YEheBedford Committee Report: Prospectsfor Implementation,” ljsccesin Acwunti~Eclucrtciotc, Vol. 4, No. 10, Spring 1989. St&y ofAw&uk Tminiqy. The President’s Council on Integrity and Efficiency. Washington, DC.: Nov. 1987. Subotnik, Dan, “what Accounting Can Learn from Legal Education,” &mm in Acmntin~ Edtiw tbn, Vol. 2, Fall 1987, pp. 313-324. Tierney, Cornelius E., “Accounting for Government: Sense,Not Nonsense,” ?%eG$nvnvmtAc- ctwntan~J~vit4, Vol. 39, No. 1, Spring 1990, pp. 3-12. Tm’nin~ B@getx&my Bu&etRedu&ms in lkpnse to theBakued Bq&etAct, (GAO/GGD-86- 98-BR, July 16,1986). Wardlow, Penelope S., ?I’he CPA Examination and Not For Profit Accounting,” The (Anmmzent Am&ants Jmmzl, Vol. 37, No. 2, Summer 1988, pp. 53-58. Woo&k@,-BIw;!?Lncreasing the~Productivity of Public ,&c&r Tmining;! P&&~.&&&r$~ Repietp, Vol.XII, No. 2, Water 1988, pp. 205-217. Vokker, Paul A, et. al. Leadmb~jbrAmtka: Rebuddin~thePublic Service.The National Commis- sion on the public Service.Washington, D.C.: Apr. 1989. Requeam hr copies ofJFMTl? reports should be sent to: Joint Fiuancial Management Improvement Program 666 11th Street NW,‘Suite 705 Washington, DC 20001 Telephone (202) 376-5439 Fax (202) 376-5396 U.S. General Accounting Office JOINT FINANCIAL MANAGEMENT IMPROVEMENT PROGRAM First Class Mail 666 1 lth Street NW Postage & Fees Paid Suite 705 GAO Washington, DC 20001 Permit No. G-100 OFFICIAL BUSINESS PENALTY FOR PRIVATE USE $300 I
Continuing Professional Education: Federal GS-510 Accountants' Report
Published by the Government Accountability Office on 1990-12-01.
Below is a raw (and likely hideous) rendition of the original report. (PDF)