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Report
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Toney Williams, CDFM, CFE
EMAIL: [email protected] Phone #: (901) 874-4336
PRIMARY REFERENCE: ASMC Website (http://www.asmconline.org) &
The Enhanced Defense Financial Management Training Course (EDFMTC) Textbook, rev Oct 2009
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 1
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
AGENDA

Brief Overview of The Three (3) CDFM Modules

Helpful “ Mental Tips” For Preparing for the Exam

Sample Test Questions and Answers

The Eight (8) Week Study Plan

Motivational Closing
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 2
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
The Three (3) CDFM Exam Modules

Module One: Resource Management Environment
Competency One: Government Resource Management Environment
Competency Two: Manpower Management
Competency Three: Personnel Management
Competency Four: Management’s Responsibility for Internal Control

Module Two: Budget and Cost Analysis
Competency One: Defense Budget Process
Competency Two: Cost and Economic Analysis
Competency Three: Business Management / Process Improvement

Module Three: Accounting and Finance
 Competency One: Fiscal Law
Competency Two: Finance
Competency Three: Accounting
Competency Four: Auditing
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 3
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
The Three (3) CDFM Exam Modules

Module One: Resource Management Environment
Competency One: Government Resource Management Environment
This area deals with the financial manager’s knowledge of relationships of checks
and balances among the branches of the Federal Government; structure of the Federal
budget, including sources of revenue and expenditures; the roles of the President,
Congress, Treasury, OMB, and other Federal agencies in the legislative process, and the
four phases of the Budget Cycle.
Knowledge Check
1. How many branches of government did the Constitution establish?
Answer: Three
2. What agency issues apportionments?
Answer: Office of Management and Budget (OMB)
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 4
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
The Three (3) CDFM Exam Modules

Module One: Resource Management Environment
Competency Two: Manpower Management
This area deals with the financial manager’s knowledge of manpower and force
management as they relate to resource management, manpower rules, regulations,
laws, and development of manpower requirements.
Knowledge Check
1. Where can the rules for calculating FTE employment be found?
Answer: OMB Circular A-11
2. What term is used to refer to the totality of units in a DoD component?
Answer: Force Structure
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 5
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
The Three (3) CDFM Exam Modules

Module One: Resource Management Environment
Competency Three: Personnel Management
This area deals with the financial manager’s knowledge of training, conflict
resolution, performance appraisal, EEO complaint resolution, and improving poor
performance.
Knowledge Check
1. New Federal employees normally serve a probationary period of how long?
Answer: One year
2. Effective training can be a critical component for achieving what?
Answer: Organizational Goals
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 6
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
The Three (3) CDFM Exam Modules

Module One: Resource Management Environment
Competency Four: Management’s Responsibility for Internal Control
This area deals with the financial manager’s knowledge of the Federal Managers’
Financial Integrity Act of 1982, Comptroller General Standards for Internal Controls
in the Federal Government, and applicable Federal Government and DoD management
control guidance and regulations.
Knowledge Check
1. The Integrity Act report must include agency plans to correct what type of
weakness?
Answer: Material Weakness
2. How many standards are there in the GAO Standards of Internal Control?
Answer: Five
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 7
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
The Three (3) CDFM Exam Modules

Module Two: Budget and Cost Analysis
Competency One: Defense Budget Process
This area deals with the financial manager’s knowledge of the DoD budget
formulation, review, and execution; OMB Circulars and implementation of DoD
guidance; relationships among and use of appropriations and funds; the stages of funds
execution; reimbursable and support agreements; flow of funds; and the DoD
programming process, terminology, and products.
Knowledge Check
1. Who serves as the Chairman of the National Security Council?
Answer: The President of the United States of America
2. Who is the principal advisor and assistant to the Secretary of Defense for budget
and fiscal matters?
Answer: Undersecretary of Defense, (Comptroller) / CFO
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 8
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
The Three (3) CDFM Exam Modules

Module Two: Budget and Cost Analysis
Competency Two: Cost and Economic Analysis
This area deals with the financial manager’s knowledge of mathematical and
statistical methods; cost estimating techniques; benefit analysis including payback,
return on investment, and present value; system acquisition and life-cycle management
policies, DoD Cost Guidance; concepts and principles for Activity-Based Costing; and
acquisition concepts, principles, and processes.
Knowledge Check
1. Cost savings, cost avoidance and productivity improvement are recognized as
what type of benefits?
Answer: Quantifiable Benefits
2. What is the difference between budget cost of work performed and actual cost of
work performed?
Answer: Cost Variance
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 9
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
The Three (3) CDFM Exam Modules

Module Two: Budget and Cost Analysis
Competency Three: Business Management / Process Improvement
This area deals with the financial manager’s knowledge of concepts of Business
Process Reengineering, special authority to use receipts, Government Performance and
Results Act of 1993, and directives and regulations related to the performance of
commercial activities.
Knowledge Check
1. What law or regulation has as its goal the improvement of Federal program
effectiveness and public accountability by promoting a new focus on results, service
quality, and customer satisfaction?
Answer: Government Performance and Results Act (GPRA)
2. What is an assessment of the results of a program activity when comparing to its
intended purpose?
Answer: Outcome or Outcome Measures
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 10
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
The Three (3) CDFM Exam Modules

Module Three: Accounting and Finance
Competency One: Fiscal Law
This area deals with the financial manager’s knowledge of law regarding availability
of appropriation as to the purpose, time, and amount; applicable Comptroller General
decisions; special purpose laws (credit reform, foreign assistance, arms export control
acts); penalties and sanctions applicable under law; the Anti-deficiency Act (as applied
to appropriation limitations); allotment or project executions; and authorization and
appropriation acts including the interrelationship and respective roles, reporting, and
notification requirements.
Knowledge Check
1. Federal appropriations law can be categorized into which three topical areas?
Answer: Purpose, Time, and Amount (PTA)
2. Article 1, Section 9, of the U.S. Constitution gives the power to appropriate funds
for operating the government to which branch of the government?
Answer: Legislative Branch (Congress)
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 11
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
The Three (3) CDFM Exam Modules

Module Three: Accounting and Finance
Competency Two: Finance
This area deals with the financial manager’s knowledge of rules concerning: military
and civilian pay, travel entitlements, vendor payments, electronic commerce, debt
management, and public funds internal controls and responsibility.
Knowledge Check
1. What is the primary organization in DoD with the responsibility for Finance
requirements?
Answer: The Defense Finance and Accounting Service (DFAS)
2. Which individuals hold personal and pecuniary liability for their actions in
financial transactions?
Answer: Certifying Officers, Disbursing Officers, and Accountable Officials
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 12
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
The Three (3) CDFM Exam Modules

Module Three: Accounting and Finance
Competency Three: Accounting
This area deals with the financial manager’s knowledge of Federal accounting
procedures and practices.
Knowledge Check
1. The Budget and Accounting Act of 1921 established the GAO (Legislative Branch)
to audit financial transactions of which branch of the government?
Answer: The Executive Branch (President)
2. What are the two self-balancing sets of accounts in the U.S. Government Standard
General Ledger (USGSGL)?
Answer: Budgetary and Proprietary
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 13
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
The Three (3) CDFM Exam Modules

Module Three: Accounting and Finance
Competency Four: Auditing
This area deals with the financial manager’s knowledge of Comptroller General’s
Generally Accepted Government Auditing Standards (often called simply the Yellow
Book), DoD audit policies and procedures, documentation requirements, reporting
requirements, audit program development criteria, frequency review criteria and
requirements, and constraints on non-audit services.
Knowledge Check
1. Who conducts, supervises, monitors, and initiates audits and investigations
relating to DoD programs and operations?
Answer: Department of Defense Inspector General (DODIG)
2. What document includes the objectives of the audit, the findings, and when
appropriate, the recommendations?
Answer: The Audit Report
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 14
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Helpful “Tips” For Preparing for the Exam





First and foremost , “Believe that you will pass and you will” When you believe something can be done, your mind will find ways
to do it. Believing a solution paves the way to a solution. ***You
must exude CONFIDENCE ***
Don’t procrastinate---You must commit your time and mind to
studying – remember Action cures fear !!!
Block off and dedicate a specific amount of time (preferably--8 weeks)
and a place where you can persistently, consistently, and fervently study
Accept the law of cause and effect. What appears to be someone’s
“Good Luck”…is “NOT” luck but “Planning, Preparation,
Successful Thinking, Motivation, and *** Action ***
Change your way of thinking about financial management (FM) -Think “Big” ---Think Department of Defense (DOD) FM!
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 15
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Sample “Test” Questions & Answers
Module One: Resource Management Environment
If Congress and the President do not complete action on all
appropriation by ____
A of September a _____ is passed by both houses
to avoid a shutdown of government.
A
B
C
D
30th, continuing 31th, continuing 7th, continuing 24th, continuing
resolution
resolution
resolution
resolution
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 16
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Sample “Test” Questions & Answers
Module One: Resource Management Environment
The House and Senate budget committees manage the budget
resolution step, These committees use the analysis provided by the
_____,
A as well as the views and estimates provided by the standing
committees regarding the funding required to continue their
programs
A
B
C
D
Congressional
House
Senate
Budget Office Appropriations Appropriations President's Chief
(CBO)
Committee
Committee
of Staff
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 17
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Sample “Test” Questions & Answers
Module One: Resource Management Environment
A was to provide for improvement, in
One of the goals of the _____
each agency of the Federal Government, of systems of accounting,
financial management, and internal controls to assure the issuance of
reliable financial information and to deter fraud, waste, and abuse of
Government resources.
A
CFO Act
B
Omnibus
Reconciliation
Act
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
C
Federal
Managers
Financial
Integrity Act
D
Budget
Enforcement Act
Slide 18
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Sample “Test” Questions & Answers
Module One: Resource Management Environment
C
_______
is the basic substantive legislation enacted by Congress that
sets up or continues the legal operation of a Federal program or
agency either indefinitely or for a specific time frame or sanctions a
particular type of obligation or expenditure within a program.
A
Allocations
B
Appropriations
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
C
Authorization
D
Budget
Authority
Slide 19
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Sample “Test” Questions & Answers
Module Two: Defense Budget Process
_________
is part of the government-wide system for the
C
administrative control of appropriations and funds. It is a
distribution of an amount available for obligation and/or
commitment in an appropriation or fund account into amounts
available for specified time periods, activities, projects, or
combinations.
A
B
C
D
Allotment
Apprortionment
request
Apportionment
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Treasury
Warrant
Slide 20
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Sample “Test” Questions & Answers
Module Two: Defense Budget Process
A ________
is a type of Economic Analysis that documents the review
C
of an entire process such as supply or maintenance. It requires a risk
assessment of each alternative requesting high and low estimates for
each cost element and subsequent probability distribution of
expected costs.
A
B
Environmental
Quality
Capital Budget
Economic
Analysis
Analyses
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
C
Functional
Economic
Analysis
D
Competitive
Source Economic
Analysis
Slide 21
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Sample “Test” Questions & Answers
Module Two: Defense Budget Process
The ______
provides guidance to the Federal Manager on improving
B
accountability and effectiveness of Federal programs and operations
by establishing assessing, correcting and reporting management
controls.
A
OMB Circular
A-11
B
OMB Circular
A-123
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
C
OMB Circular
A-76
D
OMB Circular
A-34
Slide 22
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Sample “Test” Questions & Answers
Module Three: Accounting and Finance
______is
required for reprogramming that result in increases in
C
procurement quantities of major program end items, changes to
Congressional Interest Items in an Authorization Act, movement of
funds between appropriations involving General Transfer Authority.
A
Presidental
Approval
B
Office of
Management
and Budget
Approval
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
C
D
Congressional
Prior Approval All of the above
Slide 23
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Sample “Test” Questions & Answers
Module Three: Accounting and Finance
The regulation that is composed of 15 volumes and provides DoD
components with the policy and procedures within the responsibility
of the Under Secretary of Defense (Comptroller) is the__________
C
A
B
The Red Book,
The Yellow
Financial
Book, Financial
Management
Management
Regulation
Regulation
(FMR)
(FMR)
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
C
The DoD
7000.14R,
Financial
Management
Regulation
(FMR)
D
The DoD
7014.00R,
Financial
Management
Regulation
(FMR)
Slide 24
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Sample “Test” Questions & Answers
Module Three: Accounting and Finance
D
The major focus of ________
is on certifying entitlements and
making payments. Additionally, it focuses on the various
disbursement responsibilities and requirements for safeguarding the
resources that are under an accountable individuals control.
A
Accounting
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
B
Contracting
C
Budget
D
Finance
Slide 25
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Sample “Test” Questions & Answers
Module Three: Accounting and Finance
The type of audit that determines whether financial information is
presented in accordance with established criteria, whether there is
adherence to compliance requirements and if financial assets are
adequately safeguarded is a _____________
audit.
D
A
Compliance
Audit
B
Performance
Audit
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
C
D
Program Audit Financial Audit
Slide 26
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
The Eight (8)Week Study Plan

Weeks One (1) & Two (2):
First Two Days (Monday and Tuesday): Read The American Society of
Military Comptrollers (ASMC) Reference Guide (July 2000_updated
January 2004).
Read it straight through like a book/novel. You are reading for
comprehension---not technical--not to research or reference
Second Ten Days (Wednesday thru Friday): Read The Enhanced Defense
Financial Management Training Course (EDFMTC) textbook
Read it straight through like a book/novel. You are reading for
comprehension---not technical--not to research or reference
Last Two Days (Saturday and Sunday): Rest and take in all that you have
read on an inclusive level. That is, continue to digest the “Big” picture of
DOD from your reading.
*** Comprehension through Repetition ***
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 27
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks

The Eight (8)Week Study Plan
Weeks Three (3) & Four (4) -- Module One (1):
Monday and Tuesday of Week Three (3): Follow the Required Five (5) steps for
Competency Area #1: The five steps are as follows:
Wednesday thru Friday: Competencies Two-Four, ONLY : Repeat the five (5)
steps listed above.
Saturday & Sunday: Rest !!!
Repeat the process above for week # Four (4): with the exception of Saturday;
Saturday you take Module One Exam!!!. Sunday you rest!
*** Comprehension through Repetition ***
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 28
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks

The Eight (8)Week Study Plan
Weeks Five (5) & Six (6) -- Module Two (2):
Monday and Tuesday of Week Five (5): Follow the Required Five (5) steps for
Competency Area #1: The five steps are as follows:
Wednesday thru Friday: Competencies Two & Three, ONLY : Repeat the five (5)
steps listed above.
Saturday & Sunday: Rest !!!
Repeat the process above for week # Six (6): with the exception of Saturday;
Saturday you take Module Two Exam!!!. Sunday you rest!
*** Comprehension through Repetition ***
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 29
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks

The Eight (8)Week Study Plan
Weeks Seven (7) & Eight (8) -- Module Three (3):
Monday and Tuesday of Week Seven (7): Follow the Required Five (5) steps for
Competency Area #1: The five steps are as follows:
Wednesday thru Friday: Competencies Two-Four, ONLY : Repeat the five (5)
steps listed above.
Saturday & Sunday: Rest !!!
Repeat the process above for week # Eight (8): with the exception of Saturday;
Saturday you take Module Three Exam!!!. Sunday you rest!
*** Comprehension through Repetition ***
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 30
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Closing
M: Motivation
You have to develop a motive or a purpose as to why you want to become a
CDFM.

Is it because you want a promotion?

Is it because you want the designation behind your name?

Is it for respect?

Is it for shear educational reasons or purposes?

Regardless of the reason or motive, you must discover that purpose. Once you
discover that motive, you can then begin to act on that motive. Motive plus
action equals Motivation! Motivation is a motive acted upon. You must develop
a motive and then act on that motive and display and stay motivated.

All successful individuals share this attribute
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 31
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Closing
O: Opportunity
You must take advantage of every single opportunity that presents itself for you
to learn and to study.

For example research and find out where the Enhance Defense Financial
Management Training Course (EDFMTC) is being offered and sign up and take
it – it is centrally funded – that is, it is free!!!

Take advantage of mentors, advice, articles, and the like, which will help you
study and obtain your CDFM.

It is absolutely essential that you seek out every single opportunity that is
possible.
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 32
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Closing
N: Network
Seek out those that already have the CDFM and network with them.

Trade business cards with them.

Seek advice and recommendations from them.

Network each and every opportunity that you get with someone that you know
that has successfully passed the CDFM exam.

You will find this to be tremendously helpful.
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 33
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Closing
E: Education
Set a goal to become more educated every day.

Take 30 minutes or an hour each day to study a segment of one of the modules of
the CDFM.

It will make you smarter whether you are about to take the exam or not.

The CDFM, in of itself, is quality education – alone.

It will help you with your everyday work environment regardless of the branch
of service that you work for - as the CDFM is DOD specific.
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 34
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Closing
Y: You
Finally, it is all about Y-O-U!

Will you develop a motive and/or a reason or a purpose to take the CDFM exam?

Will you put that motive into action and demonstrate and develop motivation to
study and pass the CDFM exam?

Will you take advantage of every opportunity to take classes including the
EDFMTC?

Will you take the opportunity to become an “expert” in DOD FM?

Will you take the opportunity to standout and separate yourself from the average
FM and your peers?

Will you educate yourself daily?

Will you use this eight week study plan? Will you become a CDFM in eight
weeks?
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 35
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
Closing
M:
*** Motivation ***
O:
*** Opportunity ***
N:
*** Network
***
E:
*** Education
***
Y:
*** You
***
Will you take this M.O.N.EY ?????
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 36
How to Become A Certified Defense
Financial Manager (CDFM) in 8 Weeks
QUESTIONS
EMAIL: [email protected] Phone #: (901) 874-4336
PRIMARY REFERENCE: ASMC Website (http://www.asmconline.org) &
The Enhanced Defense Financial Management Training Course (EDFMTC) Textbook, rev Oct 2009
Toney Williams, CDFM, CFE
ASMC PDI 2011
Minneapolis, MN
Slide 37

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