The AGA Weblog

The Role of an Educator in Professional Development

By: Thomas G. Amyot, CGFM, CPA, CIA

Thomas G. Amyot, CGFM, CPA, CIA, a member of AGA’s New York Capital Chapter, was employed by the New York State Comptroller’s Office for more than 30 years at various levels as an auditor. For the past 11 years, he has been employed by the College of Saint Rose as a faculty member in the School of Business, teaching a variety of accounting courses at both the undergraduate and graduate levels. Tom retired from the College as of June 30, 2008. He is the recipient of AGA’s 2008 National Educator Award.

Professional development can take a variety of forms, depending on the needs of the recipients of the presentations and the needs of the organization employing them.

We are all aware that professional development is a requirement for employees in an audit organization that follows the Yellow Book. This can be met in a variety of ways—classroom-type instruction limited to employees, more open enrollment-type courses and conferences such as AGA’s PDC. The goal of this training is to develop or enhance the skills of the auditors so they can do their work more effectively and efficiently.

From my own experience, I would like to share with you one approach that was used to develop an organization-wide training program. To best organize the training, we had to determine what common skills and attributes we wanted the auditors at each level in the organization to have. Obviously, the needs of entry-level auditors differed significantly from the needs of the in-charge or supervisory auditors. Once we identified the skills and attributes, we were able to design courses that had the learning objectives we needed. This gave us a base of courses that we had to either develop or otherwise acquire and that would serve as the foundation of our annual training plan. To allow flexibility in the plan, we also allowed the staff to identify courses that they felt would be valuable to them. These requests were evaluated and in most cases were approved.

Once implemented, we were then able to re-use those courses that worked or modify those that we or the attendees determined needed modification and offered them in following years as the auditors progressed through the ranks. We were always cognizant of the need to keep the material current and to appropriately mix the technical material with the softer skills such as writing, supervising and managing. The goal throughout the program was to develop an audit staff that was technically competent and was introduced to skills they would need as they moved through the ranks.

In the academic environment where I have been for the past 11 years, I always stressed to my students that the accounting field is very dynamic. I would refer them to number of FASB and GASB statements to show them that accounting is not a staid profession, but one that is ripe for continuing development and provides a viable opportunity for those who wish to be successful in this field. Likewise, the professional standards, whether through the Yellow Book, PCAOB, AICPA or other professional standards require a commitment to continuous learning. In my teaching experience, I have found that students related very well to the examples from my work experience that I used to illustrate various instructional points.

Also, I would call their attention to news articles or other current events that illustrated topics that we were discussing in class. This also reinforced to them the need to be current with what was going on in the world. This was especially valuable as we went through the Enron debacle and similar events that put our profession in a less than favorable light with the public. I also recall some words that our college president used at commencement exercises where he would remind the students that the classroom work was done, but learning is a lifelong task that must be embraced by those who wish to be successful. One other benefit that I found from teaching was that my use of experiences from my audit career caused some of my students to choose or consider government accounting or auditing as a career. Prior to my time as a faculty member, this point of view did not exist on our faculty.

I would pose the following questions for your consideration:

a. how do your training experiences aid your professional growth?

b. can you relate current events to your own professional knowledge and skills?

TOMORROW: Happy Independence Day!

MONDAY: Julie Brenman, Director of Strategic Initiatives, City of Durham, NC

Partners in Education and Training: AGA, Academe and Government

By: Judith A. Kamnikar, Ph.D., CGFM, CPA

Judith A. Kamnikar, Ph.D., CGFM, CPA, a member of AGA’s Montgomery Chapter, is Professor of Accounting and Special Assistant to the Chancellor at Auburn University Montgomery and the recipient of AGA’s 2008 Cornelius Tierney/Ernst & Young Research Award, 1987 Superior Performance as Chapter President and 1987 South Central Region Outstanding Chapter President.

I’m sure you’ve read the recent retirement projections for baby boomers—one in five state employees and more than one-third of federal workers will be eligible to retire in the next five years. The loss of human capital, knowledge and skill sets can be detrimental to any agency. The financial management team, however, cuts across all agencies/departments within a government. As Alabama’s financial leaders foresaw, the productivity and competence of state agencies’ financial management teams can be harmed if the key financial personnel retire without comparable replacements. Thus, they took a proactive position to raise the competency level for both continuing employees and new hires.

To attract new employees, the CFOs, in conjunction with the state Personnel Department, revised job specifications for existing positions and created new positions, using terminology consistent with both private- and public-sector language for accounting and finance positions. They restated compensation levels for new hires to represent average pay for similar positions in the private sector. Student internships, both full-time and part-time, are now used to attract qualified candidates while they are working on their undergraduate degrees. Full-time student interns also are eligible to participate in the state benefit package, including health care and pension programs.

To retain and motivate current employees and to encourage their professional development, at least one professional accounting certification is required for the state comptroller, deputy state comptroller, and other chief fiscal officers in the largest and most complex agencies/departments. These certifications may be Certified Public Accountant (CPA), Certified Government Financial Manager (CGFM), Certified Government Finance Officer (CGFO), Certified Management Accountant (CMA) or Certified Internal Auditor (CIA). In addition, all financial management employees acquiring certification are eligible for promotion and increases to salary according to the respective agency policies.

I have regular contacts with several state and local government CFO’s through AGA and other professional committees and meetings. Our discussions have frequently focused on those issues facing the government financial management community. So, it was only natural to bring AUM into the mix to facilitate preparing students for internships or careers in state government and to provide additional educational opportunities for current state employees. A task force of state CFOs and AUM accounting faculty identified specific academic courses and degree programs that would provide the necessary background for individuals to enter state accounting, auditing and budgeting positions. AUM also agreed to expand its governmental accounting courses from one to three and revise the general MBA program courses to include government specific case and research assignments for enrolled state employees.

Next, we focused on certification. Task force members unanimously agreed to select the CGFM as the recommended choice for professional accounting certification for two reasons. First, it has an all-inclusive focus on government—federal, state and local. Second, it is the most recognized certification in the government industry other than the CPA. Plus, AGA has proven it can maintain the CGFM Program and its commitment to continuously improve government financial management professionals. And so, AUM began discussions with AGA regarding the government financial management courses and CGFM testing at AUM. AGA and AUM signed an agreement in which AUM would be used as a testing site twice a year for those students taking government financial management courses at AUM. Examinations were administered to 14 candidates in fall 2007 and to 20 candidates in spring 2008. The pass rate in the fall was 93 percent; in May it was 81 percent for a cumulative pass rate of 86 percent.

This cooperative effort between AGA, Auburn University at Montgomery and the state of Alabama was possible because of the long-term relationships between the parties and their overlapping missions. Governments look for qualified professional financial management personnel. We at the university level are in the business of educating students to fill the government financial management leadership roles of the future. And as a professional governmental accounting association, AGA is appropriately positioned to provide the professional certification and subsequent continuing education to maintain certification.

Whether or not these initiatives will be successful in maintaining and/or increasing the pool of qualified government financial managers as well as raising the individual skill levels of applicants can only be determined with the passage of time. But I am optimistic that this approach will be successful. If not, I do know that the open dialogue between these education partners will make whatever adjustments are needed to continue its current success.

Do you believe this initiative, partners in education and training, is a model that could be successfully adopted in your state or geographical area?

TOMORROW: Helene A. Baker, CGFM, AGA TX-OK Regional Vice President-Elect on "Upcoming Accounting Changes"

Education: The Proof is in the Numbers

By: William Morehead, Ph.D., CGFM

William Morehead, Ph.D., CGFM, a member of AGA’s Jackson Chapter, is the chair of Accountancy, Computer Information Systems and Finance at Delta State University in Cleveland, MS. He is AGA’s National President-Elect Designate.

It’s not too late to file your taxes. However, if you’ve not started the process, you shouldn’t be reading this blog because your tax return must be postmarked by midnight tonight! Another small bit of trivia—today is the 96th anniversary of the sinking of the Titanic. It sank on April 15, 1912.

Many of us in state and local government believe taxes and sinking seem related. Recently, there have been numerous references to declining state tax revenues across the country, and all the talk of budget shortfalls makes government financial managers everywhere feel we are sinking beneath the weight of keeping everything balanced. A variety of options has been discussed, including employee layoffs, budget cuts, closing mental health facilities, reducing the number of participants in state Medicaid programs, stopping certain state services and reducing funding to education.

In recent weeks, I have attended several meetings and training sessions regarding the role of education in economic development. While I have long heard of and championed the economic development role of education, I want to share some interesting statistics with you.

The average high school dropout rate in the U.S. is approximately 26 percent (The Education Trust, Inc.). In Mississippi, this rate is 33 percent (Mississippi Institutions of Higher Learning (IHL)). IHL officials have said if we, in Mississippi, can reduce our dropout rate by 7 percent to the national average, and if these graduates earn the average income of individuals with a high school degree, contribute to the local economy and pay taxes, we would see $1 billion improvement in our state sales tax collections. Billion with a “B”! This type of boost in sales tax collections would make a tremendous difference in our ability to move our state forward.

Other statistics show the U.S. is slipping in the world’s placement in reading, math and science skills. Out of 32 participating countries in a study conducted by the U.S. Department of Education, National Center for Education Statistics (DOE, NCES), 15-year olds in the U.S. ranked 15th in reading, 19th in math and 14th in science in 1999. When the study was repeated with 29 participating countries, respective numbers for the same age group of U.S. teens fell in their ranking to 20th in reading, 24th in math and 19th in science in 2003. Do these statistics alarm you? Can we turn this around?

Granted, this discussion is brief and over simplified. Nevertheless, think about the consequences if we were to focus our efforts on producing more and better high school and college graduates. As part of our Citizen-Centric Reporting Program, should we include information regarding our high school dropout and college and university graduation rates? I am not suggesting we throw more money at education. I am suggesting we start a serious dialogue about improving our local, state and federal budgets by generating more income for taxation. More educated and employed individuals will improve our economy through income generation, which can reduce the budgetary need for services provided to the unemployed, uninsured and underinsured, thereby providing additional resources to be redistributed elsewhere in our strained budgets.

What do you think? Is this worth the discussion?

TOMORROW: Martin Benison, CGFM, Controller, Commonwealth of Massachusetts, on AGA's Partnership for Intergovernmental Management and Accountability

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