Financial Management: Profile of Defense Finance and Accounting Service
Financial Managers (Letter Report, 05/27/98, GAO/AIMD-98-133).

Pursuant to a legislative requirement, GAO provided information on the
qualifications, including formal education, professional work
experience, training, and professional certifications, of personnel
serving in key financial management positions in the Defense Finance and
Accounting Service (DFAS).

GAO noted that: (1) the three DFAS financial management executives in
its review are the Director, the Deputy Director for Accounting, and the
Deputy Director for Finance; (2) each of the executives had attained
master's degrees; (3) the Director had spent 30 years at the Department
of Defense (DOD); (4) the Deputy Directors had DOD careers ranging from
26 to 33 years; (5) one of the executives held several professional
certifications; (6) of the 265 key DFAS financial managers responding to
GAO's review: (a) about 6 percent were military officials, serving
mainly as directors, deputy directors, and division directors at
operating locations (OPLOC); 94 percent were civilians serving mainly as
division directors, branch chiefs, and Chief Financial Officer statement
staffs at centers, and deputy directors and division directors at
OPLOCs; (b) 13 of the 15 military officials and 201 of the 250 civilians
reported holding bachelor's degrees, with 10 of these respondents
reporting more than one major; (c) about 71 percent of these 214
managers majored in accounting, while approximately 23 percent reported
degrees in business-related majors other than accounting; (d) 99
respondents also reported holding master's degrees, with 3 of these
respondents reporting more than one major; (e) 12 of these 99 managers
held master's degrees in accounting, while about 71 percent reported
degrees in business-related majors other than accounting; (f) the
military officials' careers ranged from 11 to 33 years, averaging 23
years, while the civilians' careers ranged from 1 to 53 years, averaging
23 years; (g) about 69 percent of all respondents reported performing
several financial management-related functions included in GAO's review
during their careers; (h) 224 reported completing training in one or
more of the categories included in GAO's review during 1995 and 1996;
(i) of these 224 managers: about 88 percent listed general topics, such
as computers, supervision, strategic planning, and communication skills,
as examples of the training completed; about 39 percent reported
completing financial-related training; and about 50 percent reported
completing accounting-related training, such as accounting standards and
financial reporting; (j) about 31 percent of the 265 respondents
reported holding one or more professional certifications; and (k) of the
83 managers this group, 80 reported holding accounting and other
financial management certifications.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  AIMD-98-133
     TITLE:  Financial Management: Profile of Defense Finance and 
             Accounting Service Financial Managers
      DATE:  05/27/98
   SUBJECT:  Financial management
             Military personnel
             Education or training
             Defense audits
             Accounting
             Military officers
             Civilian employees
             Chief financial officers
             Human resources training
IDENTIFIER:  JFMIP
             Joint Financial Management Improvement Program
             
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Cover
================================================================ COVER


Report to the Director of the Defense Finance and Accounting Service

May 1998

FINANCIAL MANAGEMENT - PROFILE OF
DEFENSE FINANCE AND ACCOUNTING
SERVICE FINANCIAL MANAGERS

GAO/AIMD-98-133

Profile of DFAS Financial Managers

(918910)


Abbreviations
=============================================================== ABBREV

  CFO - Chief Financial Officer
  CGFM - Certified Government Financial Manager
  CPA - Certified Public Accountant
  CWO - Chief Warrant Officer
  DAO - Defense Accounting Office
  DFAS - Defense Finance and Accounting Service
  DOD - Department of Defense
  FMFIA - Federal Managers' Financial Integrity Act
  GAO - General Accounting Office
  GMRA - Government Management Reform Act
  GPRA - Government Performance and Results Act
  GS - General Schedule
  JFMIP - Joint Financial Management Improvement Program
  NFMC - Nonfinancial Management Certifications
  OFMC - Other Financial Management Certifications
  OPLOC - Operating Location

Letter
=============================================================== LETTER


B-279330

May 27, 1998

Mr.  Gary W.  Amlin
Director, Defense Finance
 and Accounting Service

Dear Mr.  Amlin: 

As highlighted in our February 1997 high-risk series report,\1 one of
the greatest challenges to improving financial management throughout
the Department of Defense (DOD) is establishing a well-qualified,
professional financial management workforce.  Our objective in this
series of assignments is to provide information on qualifications,
such as formal education, professional work experience, training, and
professional certifications of personnel serving in key financial
management positions in DOD.  Due to concerns on the part of DOD
officials regarding the completeness of personnel databases and
personnel files, we are obtaining this information from biographies
and/or profile instruments provided by each manager. 

This is the fifth of our planned reports on the qualifications and
experience of DOD's financial management workforce.  It contains
information we obtained on key financial managers in the Defense
Finance and Accounting Service (DFAS).  We have already issued our
reports on key financial managers within the Office of the Under
Secretary of Defense (Comptroller),\2 the Air Force,\3 the Army,\4
and the Navy/Marine Corps.\5 As agreed with DOD officials, our
reviews are confined to key financial management positions.  These
positions most often include comptrollers, deputy comptrollers, and
budget officers at major commands and installations in the military
services.  At DFAS, including its headquarters, centers, and
operating locations, these positions include directors, deputy
directors, accounting and finance directorate/division directors and
branch chiefs, and personnel working directly on Chief Financial
Officers (CFO) Act statements and notes.  (Hereafter, the latter are
referred to as CFO statement staff.) These reports can help Defense
agencies in shaping their plans to enhance the qualifications, such
as formal education and training, of their financial management
workforce, as necessary.  In addition, the reports provide baseline
information that can be helpful in monitoring progress.  Our final
report in this series will discuss the qualifications and
professional work experience of personnel serving in key financial
management positions across DOD relative to those in private sector
companies and large state governments.  We will also identify steps
DOD has taken and others it should consider implementing to enhance
its financial management workforce to fully meet the objectives of
the CFO Act. 

This report provides qualification and professional work experience
information on 3 DFAS financial management executives and 265 of 577
key financial managers representing 22 of the 23 DFAS organizations
included in our review. 


--------------------
\1 High-Risk Series:  Defense Financial Management (GAO/HR-97-3,
February 1997). 

\2 Financial Management:  Profile of DOD Comptroller/CFO Financial
Managers (GAO/AIMD-97-97,
June 27, 1997). 

\3 Financial Management:  Profile of Air Force Financial Managers
(GAO/AIMD-98-4, November 28, 1997). 

\4 Financial Management:  Profile of Army Financial Managers
(GAO/AIMD-98-58, February 25, 1998). 

\5 Financial Management:  Profile of Navy and Marine Corps Financial
Managers (GAO/AIMD-98-86, April 15, 1998). 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :1

The three DFAS financial management executives included in our review
are the Director, the Deputy Director for Accounting, and the Deputy
Director for Finance.  Each of the executives had attained master's
degrees.  The Director had spent 30 years at DOD.  The Deputy
Directors had DOD careers ranging from 26 to 33 years.  One of the
executives held several professional certifications. 

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

  -- About 6 percent (15) were military officials, serving mainly as
     directors, deputy directors, and division directors at operating
     locations (OPLOCs); 94 percent (250) were civilians serving
     mainly as division directors, branch chiefs, and CFO statement
     staffs at centers, and deputy directors and division directors
     at OPLOCs. 

  -- Thirteen of 15 military officials and 201 of the 250 civilians
     reported holding bachelor's degrees, with 10 of these
     respondents reporting more than one major.  About 71 percent of
     these 214 managers majored in accounting, while approximately 23
     percent reported degrees in business-related majors other than
     accounting. 

  -- Ninety-nine respondents (11 military and 88 civilian
     respondents) also reported holding master's degrees, with 3 of
     these respondents reporting more than one major.  Twelve of
     these 99 managers held master's degrees in accounting, while
     about 71 percent reported degrees in business-related majors
     other than accounting. 

  -- The military officials' careers ranged from 11 to 33 years,
     averaging 23 years, while the civilians' careers ranged from 1
     to 53 years, averaging 23 years.  About 69 percent of all
     respondents reported performing several financial
     management-related functions included in our review during their
     careers. 

  -- Two hundred twenty-four (12 military and 212 civilian
     respondents) reported completing training in one or more of the
     categories included in our review during 1995 and 1996.  Of
     these 224 managers, (1) about 88 percent listed general topics,
     such as computers, supervision, strategic planning, and
     communication skills, as examples of the training completed, (2)
     about 39 percent reported completing financial-related training,
     and (3) about 50 percent reported completing accounting-related
     training, such as accounting standards and financial reporting. 

  -- About 31 percent of the 265 respondents reported holding one or
     more professional certifications.  Of the 83 managers in this
     group, 80 reported holding accounting and other financial
     management certifications, as follows:  32 were Certified Public
     Accountants (CPA),\6 64 were Certified Government Financial
     Managers (CGFM),\7 and 8 held other certifications, including
     the Certified Management Accountant and Certified Internal
     Auditor. 


--------------------
\6 The CPA certification program has existed since 1917.  State
organizations administer this program, awarding the certificate based
on the applicant's formal education, professional work experience,
and successful completion of a comprehensive examination developed by
the American Institute of Certified Public Accountants. 

\7 The CGFM program was initiated by the Association of Government
Accountants in July 1994.  Until June 30, 1996, the certificate was
awarded based on an evaluation of an applicant's formal education and
professional work experience in government financial management. 
Since then, certifications have also required the successful
completion of three comprehensive examinations covering (1) the
governmental environment, (2) governmental accounting, financial
reporting, and budgeting, and (3) governmental financial management
and control. 


   REQUIREMENTS FOR FINANCIAL
   MANAGERS
------------------------------------------------------------ Letter :2

The CFO Act of 1990 was enacted to address longstanding problems in
financial management in the federal government.  The act established
CFO positions throughout the federal government and mandated that,
within each of the largest federal departments and agencies, the CFO
oversee all financial management activities relating to the programs
and operations of the agency.  Among the key responsibilities of CFOs
are overseeing the recruitment, selection, and training of personnel
to carry out agency financial management functions. 

Recognizing that a qualified workforce was fundamental to achieving
the objectives of the CFO Act and other related management reform
legislation aimed at improving federal financial management, the
Human Resources Committee of the Chief Financial Officers Council and
the Joint Financial Management Improvement Program (JFMIP)\8 have
made proposals addressing the recruitment, training, retention, and
performance of federal financial management personnel.  In November
1995, JFMIP published the Framework for Core Competencies for
Financial Management Personnel in the Federal Government,\9 designed
to highlight the knowledge, skills, and abilities that accountants,
budget analysts, and other financial managers in the federal
government should possess or develop to perform their functions
effectively in accordance with the CFO Act.  JFMIP stressed the need
for federal government financial managers to be well-equipped to
contribute to financial management activities, such as the execution
of budgets, under increasingly constrained resource caps, and the
preparation, analysis, and interpretation of consolidated financial
statements. 

A primary goal in this body of work is to obtain and share with DOD
information on the formal education, professional work experience,
training, and professional certifications of key financial managers
in the department, including the Office of the Under Secretary of
Defense (Comptroller), each of the military services, and the Defense
Finance and Accounting Service. 


--------------------
\8 JFMIP is a joint and cooperative undertaking of the Office of
Management and Budget, General Accounting Office, Department of the
Treasury, and Office of Personnel Management to improve and
coordinate financial management policies and practices throughout the
government. 

\9 Framework for Core Competencies for Financial Management Personnel
in the Federal Government, a joint project of the Human Resources
Committee of the Chief Financial Officers Council and the Joint
Financial Management Improvement Program, November 1995. 


   OBJECTIVE, SCOPE, AND
   METHODOLOGY
------------------------------------------------------------ Letter :3

The objective of this assignment is to provide information on the
formal education, professional work experience, training, and
professional certifications of personnel serving in key financial
management positions in DFAS.  We obtained this information from
biographies and profile instruments due to the concerns of DFAS
officials regarding the completeness of personnel databases and
personnel files.  We worked with DFAS officials to determine the key
financial management positions to be included in this review.  These
positions typically included directors, deputy directors,
directorate/division directors, branch chiefs, and CFO statement
staff serving at DFAS headquarters, 5 centers, and 17 operating
locations.  As agreed with DFAS, we did not verify the information
contained in the profiles provided by the respondents.  A more
detailed discussion of our scope and methodology, including a
description of how we obtained qualifications and work experience
data, is in appendix I. 

We performed our audit work from March 1997 through March 1998 in
accordance with generally accepted government auditing standards. 
The Director, DFAS provided comments on a draft of this report. 
These comments are discussed in the "Agency Comments" section of this
report and are reprinted in appendix VII. 


   PROFILE OF DFAS FINANCIAL
   MANAGEMENT EXECUTIVES
------------------------------------------------------------ Letter :4

Table 1 provides information on the formal education, careers, and
professional certifications of the three DFAS executives included in
our review.  All three held both bachelor's and master's degrees. 
The three executives held bachelor's degrees in accounting; majors
associated with their master's degrees included business
administration and business management.  The Director had spent 30
years at DOD.  The two Deputy Directors' DOD careers ranged from 26
to 33 years.  A review of biographical information provided to us
showed that the three executives had served in financial
management-related positions during most of their DOD careers.  One
of the executives also held several financial management
certifications.  The Director was a Certified Public Accountant, a
Certified Government Financial Manager, and a Certified Cost Analyst. 



                                Table 1
                
                  Profile of DFAS Financial Management
                               Executives

----------------------------------  ----------------------------------
Director
----------------------------------------------------------------------
Formal education                    Bachelor's Degree in Accounting
                                    Master's Degree in Business
                                    Administration

Career                              DOD -30 years

Certifications                      Certified Public Accountant (CPA)
                                    Certified Government Financial
                                    Manager (CGFM)
                                    Certified Cost Analyst (CCA)


Deputy Director for Accounting
----------------------------------------------------------------------
Formal education                    Bachelor's Degree in Accounting
                                    Master's Degree in Business
                                    Management

Career                              DOD -33 years; other government
                                    sector -2 years

Certifications                      None


Deputy Director for Finance
----------------------------------------------------------------------
Formal education                    Bachelor's Degree in Accounting
                                    Master's Degree in Business
                                    Administration

Career                              DOD -26 years

Certifications                      None
----------------------------------------------------------------------

   PROFILE OF DFAS FINANCIAL
   MANAGERS
------------------------------------------------------------ Letter :5

In collaboration with DFAS officials, we identified 577 financial
managers across the agency for this review, of which 265 (or 46
percent) responded by providing information on their qualifications
and experience.  Respondents included

  -- 17 of 28 managers from DFAS headquarters;

  -- 163 of 403 managers from the 5 centers; and

  -- 85 of 146 managers from 16 of 17 OPLOCs. 

As shown in table 2, the response rate ranged from 25 percent from
the 5 centers' finance managers to 66 percent from the OPLOCs'
accounting managers. 



                                Table 2
                
                 Response Rates From DFAS Organizations

                                          Popula  Number of    Percent
                                            tion  responden  respondin
DFAS organization                           size         ts          g
----------------------------------------  ------  ---------  ---------
Headquarters:
----------------------------------------------------------------------
 Accounting                                  20         12         60
 Finance                                      8          5         63

5 Centers:
----------------------------------------------------------------------
 Directorate                                 11          7         64
 Accounting                                 172        101         59
 Finance                                    220         55         25

17 Operating Locations:
----------------------------------------------------------------------
 Directorate                                 34         22         65
 Accounting                                  59         39         66
 Finance                                     53         24         45
======================================================================
Total                                        577        265         46
----------------------------------------------------------------------
Seventeen respondents from DFAS Headquarters included one assistant
deputy director, nine directorate/division directors, and seven CFO
statement staff.  The 248 respondents from DFAS centers and OPLOCs
included 29 senior-level directors and principal deputy directors, 26
finance and accounting operations deputy directors and assistant
deputy directors, 89 directorate/division directors, 40 branch
chiefs, and 64 CFO statement staff. 

Of the 265 respondents, 6 percent were military officials.  The 15
military officials, including 13 commissioned officers, 1 chief
warrant officer, and 1 master sergeant, served mainly as directors,
deputy directors, and division directors at OPLOCs.  The 250
civilians most often served as division directors, branch chiefs, and
CFO statement staff at centers, and deputy directors and division
directors at OPLOCs.  Table 3 provides a breakout of the military and
civilian respondents by rank and grade, respectively. 



                                Table 3
                
                    Number of Military and Civilian
                              Respondents

        Military officials                      Civilians
----------------------------------  ----------------------------------
Rank                        Number  Grade                       Number
--------------------------  ------  --------------------------  ------
Brigadier General (O-7)          0  Senior Executive                 7
Colonel (O-6)                    8  15                              40
Lieutenant Colonel (O-5)         1  14                              34
Major (O-4)                      2  13                              65
Captain (O-3)                    2  12                              65
First Lieutenant (O-2)           0  11                              14
Second Lieutenant (O-1)          0  9                               10
Chief Warrant Officer            2                                  15
 (CWO-4)                             6,7,8
 Master Sergeant (E-7)
======================================================================
Total                           15  Total                          250
----------------------------------------------------------------------

      FORMAL EDUCATION ATTAINED
---------------------------------------------------------- Letter :5.1

Of the 265 respondents, over 80 percent (including 13 of the 15
military officials and 201 of 250 civilians) reported holding
bachelor's degrees, and about 37 percent (11 military and 88 civilian
respondents) reported holding master's degrees. 

Of the 214 respondents holding bachelor's degrees, 10 reported more
than one major.  A review of the profiles showed that 151 managers,
or about 71 percent of these 214 respondents, reported accounting
majors, 49 managers reported one or more other business-related
majors, and 23 managers reported majors that were not business
related.  Table 4 shows the bachelor's degree majors reported by the
214 DFAS financial managers. 



                                Table 4
                
                  Bachelor's Degree Majors Reported by
                        DFAS Financial Managers

                                               Number of bachelor's
                                                   degree majors
                                             -------------------------
                                             Milita
                                                 ry              Total
                                             offici  Civili    degrees
Majors                                          als     ans   by major
-------------------------------------------  ------  ------  ---------
Accounting                                        4     147        151
Other business                                    6      44         50
Nonbusiness                                       4      19         23
======================================================================
Total degrees                                    14     210        224
----------------------------------------------------------------------
Of the 99 respondents holding master's degrees, 3 reported more than
one major.  A review of the profiles showed that, of these 99
managers, 12 reported one or more accounting majors, 70 reported one
or more other business-related majors, and 17 reported
nonbusiness-related majors.  Table 5 shows the master's degree majors
reported by the 11 military officials and 88 civilians. 



                                Table 5
                
                Master's Degree Majors Reported by DFAS
                           Financial Managers

                                             Number of master's degree
                                                      majors
                                             -------------------------
                                             Milita
                                                 ry              Total
                                             offici  Civili    degrees
Majors                                          als     ans   by major
-------------------------------------------  ------  ------  ---------
Accounting                                        0      13         13
Other business                                   12      60         72
Nonbusiness                                       1      16         17
======================================================================
Total degrees                                    13      89        102
----------------------------------------------------------------------
The key financial managers were also requested to provide information
on the number of accounting-related subjects completed as part of
their formal education.  Of the 265 respondents, 252 reported
completing one or more of these subjects, as follows: 

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

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

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

Included in this latter group were 214 managers (or 81 percent of the
respondents) who reported completing both principles of accounting
and intermediate accounting along with at least four other subjects. 
Based solely on a review of their formal education, these 214
managers appear to have met the requirements to serve in federal
GS-510 accountant\10 positions. 


--------------------
\10 The typical educational requirement for GS-510 accountants is 24
credit hours in accounting-related subjects.  A person completing
principles of accounting and intermediate accounting subjects
(typically two courses of each) and four other subjects would
generally meet this hour requirement.  A civilian employee could also
be classified as a GS-510 with fewer than 24 hours of
accounting-related courses if a review of his or her formal
education, training, and experience so warrants. 


      PROFESSIONAL WORK EXPERIENCE
      ACQUIRED
---------------------------------------------------------- Letter :5.2

A review of the profiles showed that the 15 military officials'
careers ranged from 11 to 33 years, averaging 23 years, while the 250
civilians' careers ranged from 1 to 53 years, averaging 23 years. 
About 85 percent of the military and civilian respondents had spent
most of their careers in DOD.  Also, about 69 percent of all
respondents reported that they had performed several of the financial
management-related functions included in our review. 

Figures 1 and 2 show the average number of years of work experience
by rank for the military officials and by grade for the civilians,
respectively. 

   Figure 1:  Professional Work
   Experience Reported by DFAS
   Financial Managers--Military
   Officials

   (See figure in printed
   edition.)

   Figure 2:  Professional Work
   Experience Reported by DFAS
   Financial Managers--Civilians

   (See figure in printed
   edition.)

In collaboration with DFAS officials, we identified five functions
which are often performed by personnel serving in key financial
management positions, including: 

  -- financial statement preparation--preparing annual financial
     statements and footnotes;

  -- financial reporting/accounting policy--preparing financial
     reports and consulting on the application of accounting policy;

  -- financial analysis--performing tasks associated with cost
     accounting, business process improvements, budgeting, cash flow
     analysis, cost analysis, revenue and expenditure forecasting,
     and other analysis of financial position and operations;

  -- accounting operations--recording and reporting accounting
     transactions; and

  -- accounting systems development and maintenance--performing tasks
     associated with the functional design and maintenance of
     accounting and finance systems. 

Eight military and 174 civilian respondents (or about 69 percent of
the 265 respondents) reported that they had performed three or more
of these functions during their careers.  Figures 3 and 4 show the
number of military officials and civilians who had performed each
function at sometime during their careers, and the average number of
years of experience in each function.  For example, figure 3 shows
that 13 of the 15 military officials had performed financial
reporting tasks for an average of 13 years. 

   Figure 3:  Experience in
   Financial Management Functions
   Reported by DFAS Financial
   Managers--Military Officials

   (See figure in printed
   edition.)

   Figure 4:  Experience in
   Financial Management Functions
   Reported by DFAS Financial
   Managers--Civilians

   (See figure in printed
   edition.)


      TRAINING COMPLETED DURING
      1995 AND 1996
---------------------------------------------------------- Letter :5.3

During 1995 and 1996, about 80 percent of the military and 85 percent
of the civilian respondents reported completing some training in one
or more of the categories included in our review.  Of the 224
respondents (12 military and 212 civilian respondents) receiving
training, (1) about 88 percent listed general topics, such as
computers and supervision, as examples of the training they had
completed, (2) about 39 percent reported completing training in
financial-related topics, and (3) about 50 percent reported
completing training in accounting-related topics, such as accounting
standards and financial reporting.  Also, a review of the profiles
showed that 92 managers completed only general training and 41 other
managers had not completed any training.  Therefore, over 50 percent
of the 265 respondents had not received any accounting or financial
training for those 2 years. 

Figure 5 shows the training reported as being completed by the 265
respondents during the 2-year period. 

   Figure 5:  Training Reported by
   DFAS Financial Managers as
   Being Completed During 1995 and
   1996

   (See figure in printed
   edition.)

A review of the profiles showed

  -- total receiving accounting-related training:  111 (5 military
     and 106 civilian respondents),

  -- total receiving financial-related training:  87 (6 military and
     81 civilian respondents),

  -- total receiving training in general topics:  196 (12 military
     and 184 civilian respondents), and

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


      PROFESSIONAL CERTIFICATIONS
      HELD
---------------------------------------------------------- Letter :5.4

About 31 percent of the 265 respondents reported holding one or more
professional certifications.  A review of the profiles showed that,
of these 83 managers,

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

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

  -- 8 civilians held other financial management certifications,
     including the Certified Management Accountant and Certified
     Internal Auditor, and

  -- 6 civilians reported nonfinancial management certifications. 

Of the 182 managers that did not hold any professional
certifications, 11 were military officials and 171 were civilians. 
Figure 6 shows the types of certifications reported by the 265 DFAS
financial managers. 

   Figure 6:  Professional
   Certifications Reported by DFAS
   Financial Managers

   (See figure in printed
   edition.)

Legend:

CPA:  Certified Public Accountant
CGFM:  Certified Government Financial Manager
OFMC:  Other financial management certifications
NFMC:  Nonfinancial management certifications

Appendixes II through VI provide the formal education, professional
work experience, training, and professional certification data for
the 15 military officials and 250 civilians by their respective
organizations, including: 

  -- DFAS headquarters in appendix II;

  -- 5 centers in appendix III;

  -- 16 of the 17 OPLOCs in appendix IV;

  -- accounting operations at DFAS headquarters, centers, and OPLOCs
     in appendix V; and,

  -- finance operations at DFAS headquarters, centers, and OPLOCs in
     appendix VI. 


   AGENCY COMMENTS
------------------------------------------------------------ Letter :6

In commenting on a draft of this report, DFAS generally agreed with
the contents and stated that the information will provide a useful
benchmark in setting goals for the agency's career development
programs.  The DFAS comments are reprinted in appendix VII. 


---------------------------------------------------------- Letter :6.1

We are sending copies of this report to the Chairmen and Ranking
Minority Members of the Senate Committee on Governmental Affairs; the
House Committee on Government Reform and Oversight; and the
Subcommittee on Government Management, Information and Technology of
the House Committee on Government Reform and Oversight; the Secretary
of Defense; and the Director of the Office of Management and Budget. 
Copies will also be made available to others upon request. 

If you have any questions about this report, please contact me at
(202) 512-9095.  Major contributors to this report are listed in
appendix VIII. 

Sincerely yours,

Lisa G.  Jacobson
Director, Defense Audits


SCOPE AND METHODOLOGY
=========================================================== Appendix I

In collaboration with DFAS officials, we identified senior executives
and financial managers to be included in this review as those serving
in key positions throughout DFAS.  The three senior executives
included the Director, the Deputy Director for Accounting, and the
Deputy Director for Finance.  The 577 key financial management
positions selected for this review included: 

  -- 28 from DFAS headquarters involved in accounting/CFO statement
     operations and finance operations;

  -- 403 from the 5 centers, including center directors and deputy
     directors, and managers involved in accounting/CFO statement
     operations and finance operations; and

  -- 146 from the 17 operating locations (OPLOCs), including OPLOC
     directors and deputy directors, and managers involved in
     accounting operations and finance operations. 

In addition to the 3 senior executives, 265 financial managers
located at 22 of the 23 organizations responded to this review.  The
265 respondents included 17 DFAS headquarters managers, 163 center
managers, and 85 managers from OPLOCs. 

Table I.1 identifies the DFAS organizations and information on the
key financial managers included in this review. 



                               Table I.1
                
                  DFAS Organizations and Key Financial
                    Managers Included in This Review

DFAS Headquarters
----------------------------------------------------------------------
17 of the 28 managers responding included 1 assistant deputy director,
9 directorate/division directors, and 7 CFO statement staff.

5 DFAS Centers

163 of the 403 managers responding included 7 directors/principal
deputy directors, 8 deputy directors/assistant deputy directors, 44
directorate/division directors, 40 branch chiefs, and 64 CFO statement
staff.

17 DFAS Operating Locations

85 of the 146 managers from 16 of the 17 OPLOCs responding included 14
directors, 8 principal deputy directors, 18 deputy directors, and 45
division directors.
----------------------------------------------------------------------
In an August 1988 report,\1 GAO proposed a framework for evaluating
the quality of the federal workforce over time.  Quantifiable
measures identified in that report include specific knowledge,
skills, and abilities.  Using this report and the JFMIP study on core
competencies, and in collaboration with DOD representatives, we
identified four indicators to measure the attributes that key
financial managers can bring to their positions.  These indicators
include formal education, professional work experience, training, and
professional certifications.  These attributes are being used to
measure the qualifications and experience of key financial managers
in the five DOD organizations included in our reviews. 

We then worked with DFAS officials in developing a data collection
instrument to gather the following types of information under each
indicator: 

  -- Formal education:  degrees attained, academic majors, and
     specific accounting and financial-related courses completed. 

  -- Professional work experience:  (1) number of years worked in
     current position, years at DOD, years in other government
     agencies, and years in the private sector and (2) experience in
     five specific financial management-related functions. 

  -- Training (referred to as continuing professional education in
     the profile instrument):  for the period of 1995-1996,\2
     specific subjects completed related to accounting, other
     financial-related topics, and general topics. 

  -- Professional certifications:  CPA, CGFM, other financial
     certifications, and nonfinancial management certifications held. 

For the three DFAS executives, we obtained information on their
formal education, careers, and professional certifications from
biographies and profile instruments provided by these officials.  For
all other individuals, we collected information on the four
indicators using profile instruments.  Due to DFAS officials'
concerns over their completeness, we did not use personnel files and
databases.  This procedure is being used for collecting qualification
and experience information from all DOD organizations included in
this series of assignments. 

Since DFAS chose to maintain the anonymity of its respondents, our
DFAS liaisons sent profile instruments to the three DFAS executives
and other key financial managers at DFAS Headquarters, the 5 centers,
and the 17 OPLOCs.  The liaisons conducted additional follow-up
efforts to contact those financial managers who did not initially
respond as well as those respondents whose profile instruments were
returned with incomplete information.  Through these efforts, we
received complete profile information from the three DFAS executives
and 46 percent of the key financial managers identified for this
review.  Figure I.1 contains the profile instrument we used to obtain
personnel qualification and experience information from the key
financial managers. 

As agreed with DFAS, we did not attempt to verify the information
contained in the profiles we received.  However, as noted above, for
incomplete instruments, the DFAS liaisons conducted follow-up efforts
and obtained the missing information. 

We conducted our work from March 1997 through March 1998 in
accordance with generally accepted government auditing standards. 

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

   (See figure in printed
   edition.)



   (See figure in printed
   edition.)



   (See figure in printed
   edition.)



   (See figure in printed
   edition.)



   (See figure in printed
   edition.)



   (See figure in printed
   edition.)


--------------------
\1 Federal Workforce:  A Framework for Studying Its Quality Over Time
(GAO/PEMD-88-27, August 4, 1988). 

\2 For DFAS's own analysis, the instrument requested training for an
additional year--1997. 


PROFILES OF RESPONDENTS FROM DFAS
HEADQUARTERS
========================================================== Appendix II

We included 28 key financial managers from DFAS Headquarters, 17 of
whom provided information on their qualifications and experience. 
This population included one assistant deputy director, nine
directorate/division directors, and seven CFO statement staff.  Table
II.1 shows the civilian composition of these managers, by grade. 



                               Table II.1
                
                     Number of Civilian Respondents

                              Civilians
----------------------------------------------------------------------
Grade                                                           Number
--------------------------------------------------------------  ------
Senior Executive                                                     1
15                                                                   9
14                                                                   5
13                                                                   2
======================================================================
Total                                                               17
----------------------------------------------------------------------

   FORMAL EDUCATION ATTAINED
-------------------------------------------------------- Appendix II:1

As shown in table II.2, all 17 respondents held bachelor's degrees,
with 1 reporting more than one major.  Thirteen of the 17 managers
majored in accounting, while 5 managers reported other
business-related majors. 



                               Table II.2
                
                  Bachelor's Degree Majors Reported by
                 DFAS Headquarters Financial Managers--
                               Civilians

                                                             Number of
                                                            bachelor's
Majors                                                   degree majors
--------------------------------------------------  ------------------
Accounting                                                          13
Other business                                                       5
Nonbusiness                                                          0
======================================================================
Total degrees                                                       18
----------------------------------------------------------------------
As shown in table II.3, 6 respondents also held master's degrees. 
One manager held a master's degree in accounting and 5 managers
listed other business-related majors. 



                               Table II.3
                
                Master's Degree Majors Reported by DFAS
                   Headquarters Financial Managers--
                               Civilians

                                                             Number of
                                                              master's
Majors                                                   degree majors
--------------------------------------------------  ------------------
Accounting                                                           1
Other business                                                       5
Nonbusiness                                                          0
======================================================================
Total degrees                                                        6
----------------------------------------------------------------------
All 17 managers reported completing 7 or more courses in
accounting-related subjects.  Based solely on a review of their
formal education, the 17 respondents appear to have met the
requirements to serve in GS-510 accountant positions. 


   PROFESSIONAL WORK EXPERIENCE
   ACQUIRED
-------------------------------------------------------- Appendix II:2

A review of the profiles showed that the average number of years of
professional work experience was 28 years for the 17 civilians, with
a range of 15 to 37 years.  With one exception, the respondents had
spent most of their careers in DOD.  Figure II.1 shows the work
experience by grade for the civilians. 

   Figure II.1:  Professional Work
   Experience Reported by DFAS
   Headquarters Financial
   Managers--Civilians

   (See figure in printed
   edition.)

Figure II.2 shows the number of respondents who indicated that they
had performed each financial management function previously outlined
at sometime during their careers, and the average number of years of
experience in each function.  A review of the profiles also showed
that 15 of the 17 civilians had performed three or more of these
functions. 

   Figure II.2:  Experience in
   Financial Management Functions
   Reported by DFAS Headquarters
   Financial Managers--Civilians

   (See figure in printed
   edition.)


   TRAINING COMPLETED DURING 1995
   AND 1996
-------------------------------------------------------- Appendix II:3

Figure II.3 shows the training reported by the 17 respondents as
being completed during 1995 and 1996. 

   Figure II.3:  Training Reported
   by DFAS Headquarters Financial
   Managers as Being Completed
   During 1995 and 1996

   (See figure in printed
   edition.)

A review of the profiles showed

  -- 8 respondents receiving accounting-related training,

  -- 6 respondents receiving financial-related training,

  -- 10 respondents receiving training in general topics, and

  -- 7 respondents receiving no training. 


   PROFESSIONAL CERTIFICATIONS
   HELD
-------------------------------------------------------- Appendix II:4

A review of the profiles showed that 2 respondents were CGFMs; the
remaining 15 managers did not hold professional certifications. 

Figure II.4 shows the types of professional certifications reported
by the DFAS Headquarters financial managers. 

   Figure II.4:  Professional
   Certifications Reported by DFAS
   Headquarters Financial Managers

   (See figure in printed
   edition.)

CGFM:  Certified Financial Manager


PROFILES OF RESPONDENTS FROM DFAS
CENTERS
========================================================= Appendix III

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

  -- Cleveland,

  -- Columbus,

  -- Denver,

  -- Indianapolis, and

  -- Kansas City. 

Surveys were distributed to 403 financial managers; 163 responded,
representing all five centers.  From the five centers' directorate
level, 7 of the 11 key managers responded.  Table III.1 shows the
population and respondents from each center's accounting and finance
operations unit. 



                              Table III.1
                
                  Population and Respondents From DFAS
                                Centers

                                                    Popula  Respondent
Center and operation                                  tion           s
--------------------------------------------------  ------  ----------
Cleveland
 Accounting                                            57          38
 Finance                                               18           1
Columbus
 Accounting                                            27          15
 Finance                                               25           4
Denver
 Accounting                                            39          17
 Finance                                               28           3
Indianapolis
 Accounting                                            30          18
 Finance                                              104          41
Kansas City
 Accounting                                            19          13
 Finance                                               45           6
Five center totals
 Accounting                                           172         101
 Finance                                              220          55
----------------------------------------------------------------------
The 163 respondents included 7 center directors/principal deputy
directors, 8 deputy directors/assistant deputy directors, 44
directorate/division directors, 40 branch chiefs, and 64 CFO
statement staff.  Table III.2 shows the military and civilian
composition of the respondents, by rank and grade, respectively. 



                              Table III.2
                
                    Number of Military and Civilian
                              Respondents

        Military officials                      Civilians
----------------------------------  ----------------------------------
Rank                        Number  Grade                       Number
--------------------------  ------  --------------------------  ------
Brigadier General (O-7)          0  Senior Executive                 6
Colonel (O-6)                    2  15                              15
Lieutenant Colonel (O-5)         0  14                              14
Major (O-4)                      0  13                              34
Captain (O-3)                    1  12                              54
First Lieutenant (O-2)           0  11                              14
Second Lieutenant (O-1)          0  9                               10
Chief Warrant Officer            1  6,7,8                           12
 (CWO-4)
======================================================================
Total                            4  Total                          159
----------------------------------------------------------------------

   FORMAL EDUCATION ATTAINED
------------------------------------------------------- Appendix III:1

As shown in table III.3, 125 of the 163 respondents held bachelor's
degrees, with 7 reporting more than one major.  The major for 91 of
these managers was accounting, while 22 managers reported one or more
other business-related majors. 



                              Table III.3
                
                  Bachelor's Degree Majors Reported by
                     DFAS Center Financial Managers

                                               Number of bachelor's
                                                   degree majors
                                             -------------------------
                                             Milita
                                                 ry              Total
                                             offici  Civili    degrees
Majors                                          als     ans   by major
-------------------------------------------  ------  ------  ---------
Accounting                                        0      91         91
Other business                                    2      21         23
Nonbusiness                                       1      17         18
======================================================================
Total degrees                                     3     129        132
----------------------------------------------------------------------
As shown in table III.4, 50 respondents also held master's degrees,
with 1 reporting more than one major.  Nine managers held one or more
master's degrees in accounting or accounting-related majors, while 29
managers reported other business-related majors. 



                              Table III.4
                
                Master's Degree Majors Reported by DFAS
                       Center Financial Managers

                                             Number of master's degree
                                                      majors
                                             -------------------------
                                             Milita
                                                 ry              Total
                                             offici  Civili    degrees
Majors                                          als     ans   by major
-------------------------------------------  ------  ------  ---------
Accounting                                        0      10         10
Other business                                    2      27         29
Nonbusiness                                       0      12         12
======================================================================
Total degrees                                     2      49         51
----------------------------------------------------------------------
One hundred fifty-one of the 163 respondents reported completing one
or more courses in accounting-related subjects, as follows: 

  -- 1-2 subjects:  5 civilians,

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

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

Based solely on a review of their formal education, 1 military
official and 126 civilians in the latter group appear to have met the
requirements to serve in GS-510 accountant positions. 


   PROFESSIONAL WORK EXPERIENCE
   ACQUIRED
------------------------------------------------------- Appendix III:2

A review of the profiles showed that the average number of years of
professional work experience was 21 years for the 4 military
officials, with a range of 11 to 27 years, and 21 years for the 159
civilians, with a range of 1 to 53 years.  Approximately 80 percent
of the respondents had spent most of their careers in DOD.  Figures
III.1 and III.2 show the work experience by rank for the military
officials and by grade for the civilians, respectively. 

   Figure III.1:  Professional
   Work Experience Reported by
   DFAS Center Financial
   Managers--Military Officials

   (See figure in printed
   edition.)

   Figure III.2:  Professional
   Work Experience Reported by
   DFAS Center Financial
   Managers--Civilians

   (See figure in printed
   edition.)

Figures III.3 and III.4 show the number of military and civilian
respondents who indicated that they had performed each financial
management function previously outlined at sometime during their
careers, and the average number of years of experience in each
function.  A review of the profiles also showed that 2 military
officials and 105 civilians had performed three or more of these
functions. 

   Figure III.3:  Experience in
   Financial Management Functions
   Reported by DFAS Center
   Financial Managers--Military
   Officials

   (See figure in printed
   edition.)

   Figure III.4:  Experience in
   Financial Management Functions
   Reported by DFAS Center
   Financial Managers--Civilians

   (See figure in printed
   edition.)


   TRAINING COMPLETED DURING 1995
   AND 1996
------------------------------------------------------- Appendix III:3

Figure III.5 shows the training reported by the 163 respondents as
being completed during 1995 and 1996. 

   Figure III.5:  Training
   Reported by DFAS Center
   Financial Managers as Being
   Completed During 1995 and 1996

   (See figure in printed
   edition.)

A review of the profiles showed

  -- total receiving accounting-related training:  72 civilians,

  -- total receiving financial-related training:  48 civilians,

  -- total receiving training in general topics:  114 (2 military and
     112 civilian respondents), and

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


   PROFESSIONAL CERTIFICATIONS
   HELD
------------------------------------------------------- Appendix III:4

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

  -- 25 civilians were CPAs,

  -- 43 civilians were CGFMs,

  -- 5 civilians held other financial management certifications, and

  -- 4 civilians held nonfinancial management certifications. 

Of the 107 managers that did not hold any professional
certifications, 4 were military officials and 103 were civilians. 
Figure III.6 shows the types of professional certifications reported
by the DFAS center financial managers. 

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

   (See figure in printed
   edition.)

Legend:

CPA:  Certified Public Accountant
CGFM:  Certified Government Financial Manager
OFMC:  Other financial management certifications
NFMC:  Nonfinancial management certifications


PROFILES OF RESPONDENTS FROM DFAS
OPERATING LOCATIONS (OPLOCS)
========================================================== Appendix IV

Eighty-five of 146 managers (representing 16 of the 17 OPLOCs)
provided information on their qualifications and experience,
including 14 directors, 8 principal deputy directors, 18 deputy
directors, and 45 division directors.  Table IV.1 shows the
population and respondents from the accounting and finance
organizations at each OPLOC. 



                               Table IV.1
                
                  Population and Respondents From DFAS
                          Operating Locations

                                  Accounting
                                  operations       Finance operations
                              -------------------  -------------------
                              Populati  Responden  Populati  Responden
OPLOCs (State)                      on         ts        on         ts
----------------------------  --------  ---------  --------  ---------
Charleston (SC)                      4          3         4          3
Dayton (OH)                          3          0         3          0
Honolulu (HI)                        3          0         3          0
Lawton (OK)                          4          4         3          2
Limestone (ME)                       3          2         3          2
Norfolk (VA)                         4          2         4          2
Oakland (CA)                         3          3         3          3
Omaha (NE)                           3          2         3          1
Orlando (FL)                         3          2         3          2
Pensacola (FL)                       4          1         3          1
Rock Island (IL)                     3          3         3          0
Rome (NY)                            4          4         4          2
San Antonio (TX)                     3          2         3          0
San Bernardino (CA)                  3          3         3          3
San Diego (CA)                       4          1         3          1
Seaside (CA)                         3          3         2          2
St. Louis (MO)                       5          4         3          0
======================================================================
Total                               59         39        53         24
----------------------------------------------------------------------
Table IV.2 shows the military and civilian composition of the
respondents by rank and grade, respectively. 



                               Table IV.2
                
                    Number of Military and Civilian
                              Respondents

        Military officials                      Civilians
----------------------------------  ----------------------------------
Rank                        Number  Grade                       Number
--------------------------  ------  --------------------------  ------
Brigadier General (O-7)          0  Senior Executive                 0
Colonel (O-6)                    6  15                              16
Lieutenant Colonel (O-5)         1  14                              15
Major (O-4)                      2  13                              29
Captain (O-3)                    1  12                              11
First Lieutenant (O-2)           0  11                               0
Second Lieutenant (O-1)          0  9                                0
Master Sergeant (E-7)            1  8                                3
======================================================================
Total                           11  Total                           74
----------------------------------------------------------------------

   FORMAL EDUCATION ATTAINED
-------------------------------------------------------- Appendix IV:1

As shown in table IV.3, 72 respondents held bachelor's degrees, with
2 reporting more than one major.  The major for 47 of these managers
was accounting, while 22 managers reported other business-related
majors. 



                               Table IV.3
                
                  Bachelor's Degree Majors Reported by
                   DFAS Operating Location Financial
                                Managers

                                               Number of bachelor's
                                                   degree majors
                                             -------------------------
                                             Milita
                                                 ry              Total
                                             offici  Civili    degrees
Majors                                          als     ans   by major
-------------------------------------------  ------  ------  ---------
Accounting                                        4      43         47
Other business                                    4      18         22
Nonbusiness                                       3       2          5
======================================================================
Total degrees                                    11      63         74
----------------------------------------------------------------------
As shown in table IV.4, 43 respondents also held master's degrees,
with 2 reporting more than one major.  The major for 2 of these
managers was accounting, while 36 managers reported one or more other
business-related majors. 



                               Table IV.4
                
                Master's Degree Majors Reported by DFAS
                 Operating Location Financial Managers

                                             Number of master's degree
                                                      majors
                                             -------------------------
                                             Milita
                                                 ry              Total
                                             offici  Civili    degrees
Majors                                          als     ans   by major
-------------------------------------------  ------  ------  ---------
Accounting                                        0       2          2
Other business                                   10      28         38
Nonbusiness                                       1       4          5
======================================================================
Total degrees                                    11      34         45
----------------------------------------------------------------------
Eighty-four of the 85 respondents reported completing one or more
courses in accounting-related subjects, as follows: 

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

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

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

Based solely on a review of their formal education, the 8 military
officials and 62 civilians in the latter group appear to have met the
requirements to serve in GS-510 accountant positions. 


   PROFESSIONAL WORK EXPERIENCE
   ACQUIRED
-------------------------------------------------------- Appendix IV:2

A review of the profiles showed that the average number of years of
professional work experience was 24 years for the 11 military
officials, with a range of 12 to 33 years, and 25 years for the 74
civilians, with a range of 9 to 38 years.  With few exceptions, the
respondents had spent most of their careers in DOD.  Figures IV.1 and
IV.2 show the average number of years of work experience by rank for
the military officials and by grade for the civilians, respectively. 

   Figure IV.1:  Professional Work
   Experience Reported by DFAS
   Operating Location Financial
   Managers--Military Officials

   (See figure in printed
   edition.)

   Figure IV.2:  Professional Work
   Experience Reported by DFAS
   Operating Location Financial
   Managers--Civilians

   (See figure in printed
   edition.)

Figures IV.3 and IV.4 show the number of military and civilian
respondents who indicated that they had performed each financial
management function previously outlined at sometime during their
careers, and the average number of years of experience in each
function.  A review of the profiles also showed that 6 military
officials and 54 civilians had performed three or more of these
functions. 

   Figure IV.3:  Experience in
   Financial Management Functions
   Reported by DFAS Operating
   Location Financial
   Managers--Military Officials

   (See figure in printed
   edition.)

   Figure IV.4:  Experience in
   Financial Management Functions
   Reported by DFAS Operating
   Location Financial
   Managers--Civilians

   (See figure in printed
   edition.)


   TRAINING COMPLETED DURING 1995
   AND 1996
-------------------------------------------------------- Appendix IV:3

Figure IV.5 shows the training reported by the 85 respondents as
being completed during 1995 and 1996. 

   Figure IV.5:  Training Reported
   by DFAS Operating Location
   Financial Managers as Being
   Completed During 1995 and 1996

   (See figure in printed
   edition.)

A review of the profiles showed

  -- total receiving accounting-related training:  31 (5 military and
     26 civilian respondents),

  -- total receiving financial-related training:  33 (6 military and
     27 civilian respondents),

  -- total receiving training in general topics:  72 (10 military and
     62 civilian respondents), and

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


   PROFESSIONAL CERTIFICATIONS
   HELD
-------------------------------------------------------- Appendix IV:4

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

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

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

  -- 3 civilians held other financial management certifications, and

  -- 2 civilians held nonfinancial management certifications. 

Of the 60 managers that did not hold professional certifications, 7
were military officials and 53 were civilians.  Figure IV.6 shows the
types of professional certifications reported by the DFAS OPLOC
financial managers. 

   Figure IV.6:  Professional
   Certifications Reported by DFAS
   Operating Location Financial
   Managers

   (See figure in printed
   edition.)

Legend:

CPA:  Certified Public Accountant
CGFM:  Certified Government Financial Manager
OFMC:  Other financial management certifications
NFMC:  Nonfinancial management certifications


PROFILES OF RESPONDENTS INVOLVED
IN DFAS ACCOUNTING OPERATIONS
=========================================================== Appendix V

Included in our review were 251 managers involved in accounting
operations at DFAS headquarters, centers, and OPLOCs.  Of these 251
managers, 152 provided information on their qualifications and
experience.  These 152 respondents included 14 deputy/assistant
deputy directors, 53 directorate/division directors, 14 branch
chiefs, and 71 CFO statement staff.  Table V.1 provides the rank of
the 1 military official and grades of the 151 civilians. 



                               Table V.1
                
                    Number of Military and Civilian
                              Respondents

        Military officials                      Civilians
----------------------------------  ----------------------------------
Rank                        Number  Grade                       Number
--------------------------  ------  --------------------------  ------
Brigadier General (O-7)          0  Senior Executive                 0
Colonel (O-6)                    0  15                              15
Lieutenant Colonel (O-5)         0  14                              22
Major (O-4)                      1  13                              45
Captain (O-3)                    0  12                              48
First Lieutenant (O-2)           0  11                              10
Second Lieutenant (O-1)          0  9                                9
Other                            0  7                                2
======================================================================
Total                            1  Total                          151
----------------------------------------------------------------------

   FORMAL EDUCATION ATTAINED
--------------------------------------------------------- Appendix V:1

As shown in table V.2, 137 of the 152 respondents held bachelor's
degrees, with 9 reporting more than one major.  One hundred eight
managers majored in accounting, while 23 managers reported one or
more other business-related majors. 



                               Table V.2
                
                  Bachelor's Degree Majors Reported by
                 Managers of DFAS Accounting Operations

                                               Number of bachelor's
                                                   degree majors
                                             -------------------------
                                             Milita
                                                 ry              Total
                                             offici  Civili    degrees
Majors                                          als     ans   by major
-------------------------------------------  ------  ------  ---------
Accounting                                        0     108        108
Other business                                    1      23         24
Nonbusiness                                       0      14         14
======================================================================
Total degrees                                     1     145        146
----------------------------------------------------------------------
As shown in table V.3, 51 respondents also held master's degrees,
with 1 reporting more than one major.  Ten of these managers reported
one or more accounting or accounting-related majors and 31 managers
reported other business-related majors. 



                               Table V.3
                
                   Master's Degree Majors Reported by
                 Managers of DFAS Accounting Operations

                                             Number of master's degree
                                                      majors
                                             -------------------------
                                             Milita
                                                 ry              Total
                                             offici  Civili    degrees
Majors                                          als     ans   by major
-------------------------------------------  ------  ------  ---------
Accounting                                        0      11         11
Other business                                    1      30         31
Nonbusiness                                       0      10         10
======================================================================
Total degrees                                     1      51         52
----------------------------------------------------------------------
One hundred fifty of the 152 respondents reported completing three or
more courses in accounting-related subjects, as follows: 

  -- 3-5 subjects:  6 civilians and

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

Based solely on a review of their formal education, the military
official and 142 civilians in the latter group appear to have met the
requirements to serve in GS-510 accountant positions. 


   PROFESSIONAL WORK EXPERIENCE
   ACQUIRED
--------------------------------------------------------- Appendix V:2

A review of the profiles showed that the military official had 17
years with DOD; the average number of years of professional work
experience was 21 for the 151 civilians, with a range of 1 to 41
years.  Approximately 80 percent of the respondents had spent most of
their careers in DOD.  Figures V.1 and V.2 show the average number of
years of work experience by rank for the military official and by
grade for the civilians, respectively. 

   Figure V.1:  Professional Work
   Experience Reported by Managers
   of DFAS Accounting
   Operations--Military Officials

   (See figure in printed
   edition.)

   Figure V.2:  Professional Work
   Experience Reported by Managers
   of DFAS Accounting
   Operations--Civilians

   (See figure in printed
   edition.)

Figures V.3 and V.4 show the number of military and civilian
respondents who indicated that they had performed each financial
management function previously outlined at sometime during their
careers, and the average number of years of experience in each
function.  A review of the profiles also showed that 111 civilians
had performed three or more of these functions. 

   Figure V.3:  Experience in
   Financial Management Functions
   Reported by Managers of DFAS
   Accounting Operations--Military
   Officials

   (See figure in printed
   edition.)

   Figure V.4:  Experience in
   Financial Management Functions
   Reported by Managers of DFAS
   Accounting
   Operations--Civilians

   (See figure in printed
   edition.)


   TRAINING COMPLETED DURING 1995
   AND 1996
--------------------------------------------------------- Appendix V:3

Figure V.5 shows the training reported by the 152 respondents as
being completed during 1995 and 1996. 

   Figure V.5:  Training Reported
   by Managers of DFAS Accounting
   Operations as Being Completed
   During 1995 and 1996

   (See figure in printed
   edition.)

A review of the profiles showed

  -- total receiving accounting-related training:  78 civilians,

  -- total receiving financial-related training:  47 civilians,

  -- total receiving training in general topics:  103 (1 military and
     102 civilian respondents), and

  -- total not receiving training:  23 civilians. 


   PROFESSIONAL CERTIFICATIONS
   HELD
--------------------------------------------------------- Appendix V:4

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

  -- 21 civilians were CPAs,

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

  -- 6 civilians held other financial management certifications, and

  -- 1 civilian held a nonfinancial management certification. 

The 101 managers that did not hold any professional certifications
were civilians.  Figure V.6 shows the types of professional
certifications reported by managers of DFAS accounting operations. 

   Figure V.6:  Professional
   Certifications Reported by
   Managers of DFAS Accounting
   Operations

   (See figure in printed
   edition.)

Legend:

CPA:  Certified Public Accountant
CGFM:  Certified Government Financial Manager
OFMC:  Other financial management certifications
NFMC:  Nonfinancial management certifications


PROFILES OF RESPONDENTS INVOLVED
IN DFAS FINANCE OPERATIONS
========================================================== Appendix VI

Included in our review were 281 managers involved in finance
operations at DFAS headquarters, 5 centers, and 17 OPLOCs.  Of these
281 managers, 84 provided information on their qualifications and
experience.  These 84 respondents included 13 deputy and assistant
deputy directors, 45 directorate/division directors, and 26 branch
chiefs.  Table VI.1 provides the ranks of the 8 military officials
and grades of the 76 civilians. 



                               Table VI.1
                
                    Number of Military and Civilian
                              Respondents

                  Military officials                      Civilians
------------------------------------------------------  --------------
Rank                                            Number   Grade  Number
----------------------------------------------  ------  ------  ------
Brigadier General (O-7)                              0  Senior       1
                                                        Execut
                                                           ive
Colonel (O-6)                                        2      15       8
Lieutenant Colonel (O-5)                             1      14      12
Major (O-4)                                          1      13      20
Captain (O-3)                                        2      12      17
First Lieutenant (O-2)                               0      11       4
Second Lieutenant (O-1)                              0       9       1
Chief Warrant Officer (CWO-4),                       2   6,7,8      13
 Master Sergeant (E-7)
======================================================================
Total                                                8   Total      76
----------------------------------------------------------------------

   FORMAL EDUCATION ATTAINED
-------------------------------------------------------- Appendix VI:1

As shown in table VI.2, 49 of the 84 respondents held bachelor's
degrees, with 1 reporting more than one major.  Twenty-eight managers
majored in accounting, while 17 managers reported other
business-related majors. 



                               Table VI.2
                
                  Bachelor's Degree Majors Reported by
                  Managers of DFAS Finance Operations

                                               Number of bachelor's
                                                   degree majors
                                             -------------------------
                                             Milita
                                                 ry              Total
                                             offici  Civili    degrees
Majors                                          als     ans   by major
-------------------------------------------  ------  ------  ---------
Accounting                                        2      26         28
Other business                                    4      13         17
Nonbusiness                                       1       4          5
======================================================================
Total degrees                                     7      43         50
----------------------------------------------------------------------
As shown in table VI.3, 27 respondents also held master's degrees,
with 1 reporting more than one major.  The major for 2 of these
managers was accounting, while 23 reported one or more other
business-related majors. 



                               Table VI.3
                
                   Master's Degree Majors Reported by
                  Managers of DFAS Finance Operations

                                             Number of master's degree
                                                      majors
                                             -------------------------
                                             Milita
                                                 ry              Total
                                             offici  Civili    degrees
Majors                                          als     ans   by major
-------------------------------------------  ------  ------  ---------
Accounting                                        0       2          2
Other business                                    5      19         24
Nonbusiness                                       0       2          2
======================================================================
Total degrees                                     5      23         28
----------------------------------------------------------------------
Seventy-three respondents reported completing one or more courses in
accounting-related subjects, as follows: 

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

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

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

Based solely on a review of their formal education, the 3 military
officials and 43 civilians in the latter group appear to have met the
requirements to serve in GS-510 accountant positions. 


   PROFESSIONAL WORK EXPERIENCE
   ACQUIRED
-------------------------------------------------------- Appendix VI:2

A review of the profiles showed that the average number of years of
professional work experience was 20 years for the 8 military
officials, with a range of 11 to 27 years, and 25 years for the 76
civilians, with a range of 7 to 43 years.  With few exceptions, the
respondents had spent most of their careers in DOD.  Figures VI.1 and
VI.2 show the average number of years of work experience by rank for
the military officials and by grade for the civilians, respectively. 

   Figure VI.1:  Professional Work
   Experience Reported by Managers
   of DFAS Finance
   Operations--Military Officials

   (See figure in printed
   edition.)

   Figure VI.2:  Professional Work
   Experience Reported by Managers
   of DFAS Finance
   Operations--Civilians

   (See figure in printed
   edition.)

Figures VI.3 and VI.4 show the number of military and civilian
respondents who indicated that they had performed each financial
management function previously outlined at sometime during their
careers, and the average number of years of experience in each
function.  A review of the profiles also showed that 2 military and
44 civilian respondents had performed three or more of these
functions. 

   Figure VI.3:  Experience in
   Financial Management Functions
   Reported by Managers of DFAS
   Finance Operations--Military
   Officials

   (See figure in printed
   edition.)

   Figure VI.4:  Experience in
   Financial Management Functions
   Reported by Managers of DFAS
   Finance Operations--Civilians

   (See figure in printed
   edition.)


   TRAINING COMPLETED DURING 1995
   AND 1996
-------------------------------------------------------- Appendix VI:3

Figure VI.5 shows the training reported by the 84 respondents as
being completed during 1995 and 1996. 

   Figure VI.5:  Training Reported
   by Managers of DFAS Finance
   Operations as Being Completed
   During 1995 and 1996

   (See figure in printed
   edition.)

A review of the profiles showed

  -- total receiving accounting-related training:  18 (1 military and
     17 civilian respondents),

  -- total receiving financial-related training:  23 (1 military and
     22 civilian respondents),

  -- total receiving training in general topics:  65 (5 military and
     60 civilian respondents), and

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


   PROFESSIONAL CERTIFICATIONS
   HELD
-------------------------------------------------------- Appendix VI:4

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

  -- 4 civilians were CPAs,

  -- 11 civilians were CGFMs,

  -- 1 civilian held an other financial management certification, and

  -- 5 civilians held nonfinancial management certifications. 

Of the 68 managers that did not hold any professional certifications,
8 were military officials and 60 were civilians.  Figure VI.6 shows
the types of professional certifications reported by managers of DFAS
finance operations. 

   Figure VI.6:  Professional
   Certifications Reported by
   Managers of DFAS Finance
   Operations

   (See figure in printed
   edition.)

Legend:

CPA:  Certified Public Accountant
CGFM:  Certified Government Financial Manager
OFMC:  Other financial management certifications
NFMC:  Nonfinancial management certifications




(See figure in printed edition.)Appendix VII
COMMENTS FROM THE DEFENSE FINANCE
AND ACCOUNTING SERVICE
========================================================== Appendix VI


MAJOR CONTRIBUTORS TO THIS REPORT
======================================================== Appendix VIII


   ACCOUNTING AND INFORMATION
   MANAGEMENT DIVISION,
   WASHINGTON, D.C. 
------------------------------------------------------ Appendix VIII:1

George H.  Stalcup, Associate Director
Geoffrey B.  Frank, Assistant Director
Robert L.  Self, Project Manager
Dennis B.  Fauber, Evaluator-in-Charge
Linda J.  Brigham, Senior Auditor
Patricia A.  Summers, Senior Auditor
Francine M.  DelVecchio, Communications Analyst
Michelle A.  Howard, Intern


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