Agencies should improve financial management workforce planning, report finds
Technology is changing the kind of skills federal employees need.
Technological and demographic changes are driving a major shift in the federal financial management workforce, and agencies must do a better job preparing for future needs, according to a study conducted by the Association of Government Accountants and Management Concepts, a Washington-based professional services firm.
"The mix of federal financial management positions is changing: clerical and technical positions are decreasing and professional and administrative positions are increasing," the report found.
The report, "21st Century Federal Financial Managers: A New Mix of Skills and Educational Levels?" said technology has reduced reliance on manual processes and remaining positions require a better-educated workforce.
Specifically, the report cites increasing demand for people able to provide analysis that supports executive decision-making. The need stems from new reporting requirements from the Office of Management and Budget and pressure from lawmakers to provide program outcomes and measures. "All three major federal financial management positions -- accountant, budget analyst, and management and financial analyst --require analytical and decision-support competencies," the report noted.
While agencies are conducting workforce planning, most are failing to identify competency gaps and develop strategies to make sure they have enough people with the right skills -- and they won't be able to count on recent college graduates filling the gap. The study found that schools generally are not teaching basic federal budgeting, accounting and program concepts, and college graduates often lack understanding of federal appropriations law and the government's accounting and budget process.
Among the study's recommendations:
- Develop a comprehensive plan for improving the financial management workforce.
- Introduce incentives to move workforce planning forward.
- Establish continuing education requirements for both professional and administrative positions in financial management (as is now the case for federal auditors).
- Urge the National Association of State Boards of Accountancy and the American Institute of Certified Public Accountants to include questions about federal accounting on the certified public accountant examination. This would encourage colleges and universities to include a "federal accounting 101" course in their curriculum.
Although agencies have focused broadly on the potential impact a wave of retirements may have during the next decade, they need to focus more on what that may mean in the realm of financial management.
"A mass retirement of experienced managers could leave an agency with an inadequate workforce and thus vulnerable to mission failure. What is true for human capital management in general is also true for the federal financial management workforce," the report said.
"We must act if we are to avoid compromising standards of accountability and transparency to taxpayers," Miller said.