ederal Financial Manage William Earle Klay, DPA, CGFM, amem- Barry White, an at-large member of Winter 2005 ber of AGAS Tallahassee Chapter, is a pro- AGA, is an expert in government manage- fessor in the Askew School of Public Ad- ment and budgeting. He serves as the di- AGA is pleased to present essays from By: Catherine A. Kreyche and Mitch Laine, CGFM ministration and Policy att he Florida State rector of Government Performance Pro- five top government finance officials. The University. He teaches and writes in gen- jects at the Council for Excellence in essays were originally included in the It's hard to question anything that seeks eral public administration, policy and pub- Government, and as a private consultant. book, “Leadership Secrets of Government to further the federal government's effi- lic financial administration. His several He spent3 1 years in federal service, in- Financial Officials,” a collaboration with ciency and effectiveness. Yet while we're years of practitioner experience include cluding 25 years with the U.S. Office of Oracle Corporation, AGA and NASACT. busy implementing reforms, we need to service as a U.S. Army logistics officer, a Management and Budget. take a step back and ask ourselves a few financial systems specialist, a policy ana- questions. In our zeal to reform the system, lyst and a senior planner. Leadership in the Public Sector aurnen ewcee ssoavreirlbyu rcdoemnipnlge x ourre qwuoirrke mfeonrtcse? with CGSAaPm. Ma. m MecmCbaellr, oMfP AAG,A ’C GFTMal,l aChPaAs,s eeC IA, Controslssi ngO vearn d FiDnoacnucmiaeln tRienpgo rtIinntegr nal BCyo:m mMaorntwine aJl.t Bhe niosfo Mna, ssCaGcFhMu,s eCtotmsp troller, Catherine A. Kreyche isa c ommunications Chapter, is city auditor for the City of Talla- By: Steven J. Berkowitz, MBA, CPA Martin J. Benison, CGFM, a member of strategist with Management Concepts. hassee. He has served on auditing and In response to an internal control defi- AGA’s Boston Chapter, was re-appointed Mitch Laine, CGFM, an AGA Past accounting standards boards and ciency and to bring Sarbanes-Oxley-like comptroller of the Commonwealth of National Presidenatn d member of advisory councils at the national and local requirements to the federal government, Massachusetts by Governor Mitt Romney AGA’s Richmond Chapter, is an instructor government level and is the 2005-2006 the U.S. Office of Managemenatn d Bud- in January 2003, after his initial four-year for Management Concepts and an inde- AGA National President. get (OMB) revised OMB Circular A-123, term. Prior to that, Benison served as pendent consultant. He served as deputy which requires sweeping changes to deputy comptroller for six years, manag- chief financial officer and assistant in- many aspects of financial reporting. This ing the commonwealth’s accounting and spector general for audit for the U.S. Finding Your Way Though the article describes a structured methodolo- financial reporting operations. Department of Education. Government Performance Maze gy agencies could use to comply with By: Craig Foltin, DBA, CGFM, CPA the new assessment and documentation requirements. Leadership State and local governments have made great strides in measuring and improving Steven J. Berkowitz, MBA, CPA, a mem- By: Samuel T. Mok, CGFM, Chief Financial ederal Audit performance over the last two decades. ber of AGA’s Montgomery/Prince Georges Officer, U.S. Department of Labor By: Robert E. Gray, CGFM This is partly because of economic crises, County Chapter, is a senior manager with Samuel T. Mok, CGFM, a member of Basic steps in the audit process; an decreasing revenue streams and cuts in BearingPoint. Prior to BearingPoint, AGA's Washington, D.C. Chapter, is the understanding of Government Auditing state and federal funding. This article Berkowitz was the assistant director for chief financial officer of the U.S. Depart- Standards; the importance of documented sorts out and classifies the existing re- CFO and Central Service Operations at the ment of Labor. Previously he served as and functioning internal controls; and how search and practices and points one to National Institutes of Health, U.S. Depart- managing member of Condor Consulting to resolve audit findings—all are impor- the major resources and guidance on the ment of Health and Human Services. (an international business consulting firm), tant training courses for audit organiza- subject of government performance. comptroller and chief financial officer of tions. But, as this author found out, they Craig Foltin, DBA, CGFM, CPA, a member the U.S. Department of the Treasury, U.S. are just as important training courses for of AGA’s Cleveland Chapter, has been the Revised OMB Circular A-123: SOX for Foreign Service Officer (Bureau of East managers of the entities that we audit. mayor of Lorain, OH, since 1999. His cur- Federal Agencies Asian and Pacific Affairs) and as a captain AysDsgaeGcpeeRiatAenopriscebgavstsrere no ar trlitmSmA n e eeGaGfiEntneAe.nw ttd nt Glaet ehrerlsreo a ae afylaCOl , adAh I segaaG Cr(rput OG itdhIcSeFiaeGurotMn) l, ud,,rt s t e uewrhgmrrehiewaevto ,eeiimmn rrcsbeaeeOeteldm f r fbw,iihaRiecfin etretssghhe pi rleoeot ao fcnhs2fc tt.e6 Io o n nar-UAts .in-S n .- rraceffwederiifondsntfinitaphitt n co,itcti rnoeieei$snravnmyi,8lmic bp0 t yll ha’rm eelueeisxii lm spynzlpef.iisir onnrto reHgtene ipsi amstal bn lhruig aeamedn c ungs2dacend 0 otoi0 pa.7wcmsen. ianprd pHvltfA aieioaosln sdwr gihmmnms simae a tcnyerhnriavoneecsirn tdect,cdsiee- i t srtbwhe.yshaae d afts Itrveienhoresd e -m BCCMmmiyInGaOae:SgFnnnm A aM Kaao, gDy, g rle eCeeetrIcwComeAsre Pn,ei CmA tnFbC oeWOtfCe .s Srf o,eAf aH d ,naOC2e dw1OrM k,aaOB ilnB,2n d u0 s 0adCC,4ggKii ,eeiOr smnDtct, uc Bh liAeH(aae a,OrnsOr Mdf dCBN fwao)iGpinc. Frcen Moks Ao,e,g-oun r1fnt2 acC 3mP-a, A , igo2AtHPnef0rwue n eb0ata cla5hriceise sdcc)u D .ao .rUi uA e.sfnSdrAte.dm til diionlAinnfogtrigw uiUsm ioStoysnfr fah oaN lre(ttl edAhiyT. ew,ioG F msn.Nee h ad-betaeaLr inirnawofaddnnael ca s rWlh BLeo ocetrAaeaholcneidkd vades de rd iRdiseraen hetpnmAeicodlyptGrl oi tA-r.o S f ues to be active in AGA and is currently in earned several professional awards and Management's Responsibility for Internal private practice. statewide board appointments. Control. The revisions to OMB A-123 are a A Leader Among Leaders response to the Sarbanes-Oxley Act of 2002, which contains increased internal By: Connie Nass, State Auditor, State of Performance and Accountability Re- control responsibilities for management indiana ports: Revealing Government's Results and auditors of publicly traded compa- Connie Nass, a member of AGA’s Central ng the Perplexing Issues of By: Barry White nies. This article outlines some of the chal- Indiana Chapter, was inaugurated in 1999 ting Thanks to Performance and Accountabili- lenges ahead for federal agencies as they as the 53rd auditor of the State of Indiana, By: William Earle Klay and Sam M. ty Reports (PARs)t,h e task of learning comply with A-123. only the fifth woman to hold the office. Be- McCall, CGFM, CPA, CIA, CGAP about government results is slowly but Kyleen W. Hawkins, DBA, CGFM, CPA, fore becoming Auditor of State, she first This article addresses Service Efforts steadily becoming less daunting. Federal CISA, CIA, CCSA, is one of the founders served the residents of her native Hunt- acmunerdar seAunrtc ecsco onmbcepe rlrneisq usishrhemodue (lindSn E tAppu )eb rlrfiecop rorrmetapinoncrgte i angn.d annaugnaeclni cadiloe csau nmader enp ten rofiwno trremenaqdnuecider etdod abttoea ieinantsteoyg rotanote e r efaain-d- , pa(PanSndIy) ’,C sE wOeh deuorcfea Ptrsiohoveni adiles n tisine arclvh iacSreesgr.ve i cSoehfs e,t hweI anccs.o ma-l so ihhneegrrb ieuinrgngho tva asyt eiaav recs i tfayis nc aomnucanicyaioll rop rr.o ofg LHarutanemrt,si ndgluboruwir-ng g, ASrcpceterptraeosinsr odstnAaeissrnd sgd o,bsb cy yir taBethtoaheiace otr GnidGo o onvtavseone r drena nxnmopmdetee nhrnectirtoasmn l,ec FneaiAtrnnc ndacws noi cptueohen sx t-sSOi ifEnfbiAgl-e auCRrteaen ripdwtsoehierrf atistticth aneatmg ne abd k(a oCerfaE s fnEAo dxRra c ) fee gevlPodalerolerudonaa gclterP e aA.r meRipn T o hAharicantscisd on aughrh.nte otilacwplb eei dAl lGioAttoo'yk s s staap ynKpo toirn fmsow i AfibrteHihsakl sraiPodtnrriwsoe iavscosi kf di ,eana nccttlcC iLuoGiadutFletn Ml teS,r ie iRnrsoCgvkc Pi akcAase ,tss f,teoi hrsse sIa 1nm U2cecn. ony inetvHsae,eurr rsls .tiir -n-e- - lmmefoiurocnneraaidelnc citbitpaauhxalseal isnldn, ye e v1sa,aoss4sw s0tni0aa setnntiddeeo dnwi .u nt ajidnlouibdsts ty, re cynao cnmtodopu acrsnraaeivgaeetesded ffrooumr solutions, to include AGA’s Certificate of ternal attestation, database management Excellence in SEA Reporting Program are and conducting continuing education provided for consideration. seminars for CPAs. SPRING 2006 JOURNAL OF GOVERNMENT FINANCIAL MANAGEMENT 67 Con tLiUnP MWUevGa a He was responsible for the financial oper- services include cost reduction, standard- Pa ations of Idaho state governmenatnd also ization, maintaining or obtaining unquali- operated the state's central Computer fied opinions on financial statements, By: David M. Walker, CPA, Comptroller By: Robert E. Gray, CGFM, CIA, CFE Service Center. He is also an attorney and resolving reportable conditions and/or General of the United States his prior government service included Managers are always looking for ways material weaknesses in internal controls, David M. Walker, CPA, a member of serving as a deputy attorney general, to develop their employees so they will be adapting new financial statement and/or AGA's Washington, D.C. Chapter, began county prosecuting attorney and mayor. ablet oa ssume leadership positions in audit requirements, improving effective- his 15-year term as the comptroller of the their organizations. In addition to training ness in financial management operations United Stated on November 9, 1998. As courses and on-the-job assignments, a and/or providing useful financial informa- comptroller general, Walker is the nation’s Leading through an sometimes-overlooked opportunity is ac- tion to program officials for decision- chief accountability officer and head of tive participation in professional organiza- making. This article reports on the AGA the U.S. Government Accountability Office By: Trisha Neely tions like AGA, where members can de- Corporate Partner Advisory Group's (GAO). GAO's mission is to help improve |t hought |w ould take a different spin on velop leadership skills. research on shared services. the performance and ensure the account- leadership by recounting my experience ability of the federal government for the at the state level implementing an ERP RobertE .G ray, CGFM, CIA, CFE, a mem- Irwin T. “Ted” David, CGFM, CPA, a benefit of Congress and the American (Enterprise Resource Planning) system. | ber of AGA’s Seattle Chapter, retired as a member of AGA’s Washington, D.C. Chap- people. am sure many of you are in various stages regional inspector general from the U.S. ter, retired last year as chief financial offi- of implementing your own ERP system, or Department of Agriculture, Office of the cer/chief administrative officer of NOAA's are just getting started. | hope my experi- Inspector General. He is currently work- National Weather Service. He was previ- Advice Along the Way ence will help to guide yours. ing with state agencies to strengthen their ously the deputy chief financial officer of audit and review procedures and with pri- the U.S. Department of Agriculture and a By: J.D. Williams, JD, MPA, CGFM, Direc- Trisha Neely, MBA, a member of AGA’s vate, nonprofit organizations to improve partner with Deloitte & Touche. tor of State and Local Government, Oracle Dover Capital Chapter, is director, division their internal controls systems. Corporation of accounting, State of Delaware. She has J.D. Williams, JD, MPA, CGFM, a mem- worked for the state for aimost 30 years. ber of AGAs Idaho Centennial Chapter, is She was appointed to her current position director of State & Local Government for in 2002 and is responsible for directing the Oracle Public sector. He is responsible for statewide policy and systems manage- By: Irwin T. “Te avid, CGFM, CPA relationships with state and local govern- ment processes for the accounting and ments in the U.S. He held a similar position payroll functions to all state agencies, Most federal agencies, large and small, at PeopleSoft prior to the merger of the school district, charter schools and two are using or considering use of some form two technology companies. He retired in institutions of higher education. of shared services as they modernize, update or reptlheiar fcinaenci al manage- 2002 as the elected Idaho state controller. ment systems. Reasons for shared ¥10) 0]o l 00 Ay ANe 7+ WaO r-|(-lalel-ia CEAR Awards Ceremony, AGA‘s First National Internal Control & National Press Club, Washington, D.C. Fraud Conference, Hyatt Regency, Atlanta, GA National Executive AGA‘s Second National Performance Committee Meeting, Management Conference, Renaissance San Diego Marriott Hotel & Marina, Schaumburg Hotel & Convention Center, San Diego, CA Schaumburg, {L AGA‘s 55th Annual Professional AGA‘s 56th Annual Professional Development Conference & Development Conference & Exposition, Exposition, San Diego Marriott Hotel Renaissance Nashville Hotel, Nashville, TN & Marina, San Diego, CA