Core Competenciesfor Financial System Analystsin the Federal Government

A Joint Project of theFinancial Systems and Human Resources Committees

of the Chief Financial Officers Counciland the Joint Financial Management Improvement Program

CC-4September 1997

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Foreword

Core Competencies for Financial System Analysts in the Federal Government is the fourth documentin a series of core competencies publications developed jointly by the Chief Financial Officers Counciland the Joint Financial Management Improvement Program. These documents include the:

Framework for Core Competencies for Financial Management Personnel in the FederalGovernment, which established core competencies for accountants, budget analysts, and financialmanagers;

Core Competencies in Financial Management for Program Managers in the Federal Government;and

Core Competencies in Financial Management for Information Technology Personnel in the FederalGovernment.

The Financial System Analyst, working in cooperation with Information Technology Personnel, playsa crucial role in developing and maintaining effective financial management systems, as prescribed inthree major pieces of legislation--the Chief Financial Officers Act (CFOs Act) of 1990, theInformation Technology Management Reform Act (ITMRA) of 1996, and the Federal FinancialManagement Improvement Act (FFMIA) of 1996. The CFOs Act requires agency CFOs to developand maintain agency financial management systems that comply with applicable accounting principles,standards, and requirements; internal control standards; and requirements of OMB, the Department ofthe Treasury, and others. The ITMRA requires agencies to establish goals, ensure performancemeasurements are prescribed, benchmark agency processes, analyze missions and revise mission-related and administrative processes before investing in information technology, and ensureinformation security policies, procedures, and practices are adequate. The FFMIA requires eachagency to implement and maintain financial management systems that comply substantially withFederal financial management systems requirements, applicable Federal accounting standards, and theU.S. Standard General Ledger. The Financial Systems Analyst is a key person on whom the CFOdepends for developing and maintaining effective financial management systems.

This document contains core competencies, or the knowledge, skills, and abilities, considerednecessary for the financial system analyst to meet the challenges in today's changing environment. Foreach of the core competencies, the degree of knowledge, skill, and ability required is reflected forentry (level 1), mid (level 2), and senior (level 3) positions in terms of low, medium, and high. Thesources for developing the knowledge, skills, and abilities are discussed in the narrative preceding thematrix.

Contents

Foreword

Introduction

Core Competencies for Financial System Analysts 2

Financial Management and Accounting Principles and 3Practices

Federal Financial System Requirements 4

Financial Management Controls 5

Business Process Analysis and Redesign 6

Knowledge of System and Information Technology 7

Project Management 8

General 10

Specialized Knowledge Required for Financial 11Systems Professionals

..

Introduction

Background

The impetus for developing core competencies began in 1994 following a governmentwide trainingsymposium, sponsored by the Chief Financial Officers Council and the JFMIP, to share informationand identify priorities for human resource development. The priorities identified at the symposiumincluded developing core competencies for financial management personnel, which would assist CFOsand managers in obtaining and retaining a highly qualified workforce with knowledge, and know-how.The Framework for Core Competencies for Financial Management Personnel in the FederalGovernment discusses the rationale, in broader terms, for developing core competencies. In part, thisFramework document states the time has come for the Government to ensure that there is uniformityand consistency, to the extent feasible, in human resource development.

The Financial Systems and Human Resources Committees under the CFO Council, working inconjunction with the JFMIP established an interagency team to develop the core competencies forfinancial system analysts. A companion document on core competencies in financial management forcomputer system specialists is concurrently being developed by an interagency team. Both teamsworked closely with one another, since the coordination between the two disciplines of financialmanagement and information technology is needed to ensure the implementation of a successfulfinancial management system within the organization.

For these core competencies to be most effective, management from all disciplines need to fullysupport and promote the use of these documents on core competencies within their organizations. Tothe maximize benefits throughout the government from using core competencies, agencies areencouraged to share their best practices in education and training with other departments, and withJFMIP for posting to FinanceNet.

Purpose of this Document

This document is intended to be used as a reference tool and guide for financial system analysts at alllevels (as reflected in the matrix identifying the core competencies) and in any organizationalcomponent performing financial management functions. As new financial management systems arebeing developed to meet the informational needs of agency management, central agenciesrequirements, Congress and other outside parties, this document will help foster bettercommunication among the financial management and information technology communities, who mustwork together to develop and implement a system that will provide the financial information needed.

Core Competencies for Financial System Analysts

The core competencies for Financial System Analysts identify the knowledge, skills, and abilitiesconsidered necessary to perform effectively in today's rapidly changing environment. The corecompetencies are identified by the following levels:

Level 1 Entry level: Typically consisting of introductory fundamental, basic, and routine activities;normally 1 to 3 years of experience as a financial system analyst.

Level 2 Mid level: Consisting of applying proficiencies as a fully functional and experiencedanalyst; normally 2 to 4 years as a financial system analyst.

Level 3 Senior level: Normally a team leader or supervisor, typically consisting of activities whichaddress complex, expertise, program impact, or extended operations involving multipleorganizations.

The core competencies reflect the degree of knowledge, skills, and abilities required for a financialsystem analyst. The degree is identified as low, medium, or high within each level. For example, thedegree of knowledge, skills, and abilities required of accounting by a financial system analyst is lessthan what one would expect for an accountant, and the rankings in section A of the matrix show themto be low to medium for the financial system analyst. In overall terms, the matrix reflects theprogression expected as an individual moves from one level to the next.

Training Resources

For the competencies described in this document, there are numerous courses available within eachagency, from established educational institutions, and from the many vendors in the business ofprofessional education. Classroom instruction is very important in order to gain the essentialprinciples and policies of various financial management processes and techniques. However, thisknowledge must be reinforced with practical applications toward achieving these competencies.Financial system analysts will also benefit from management training in leadership, qualitymanagement, team management and oral and written communications in terms of facilitating theirapplication of financial management principles.

An excellent resource for financial system analysts to find the types of training to meet their specificneeds is through the Internet. The FinanceNet address--http://www.financenet.gov/--provides accessto the web pages that contain many of the course catalogs and training materials from both privateand public sector organizations in the education and training business.

Core Competencles(Knowledge of, Ability to Use, or Levels Learning Objectives

Skill in Using)1 23

A. Financial Management andAccounting Principles and Practices

1. Accounting concepts and principles L M M 1. Obtain general understanding of traditionalaccounting practices, operations, and procedures.

L M M 2. Acquire knowledge on the different methods ofaccounting including accrual, obligation, and costmethods.

2. Federal accounting concepts and L M M Acquire general understanding of:standards

o Federal accounting concepts and appropriationprocess.

o Federal Financial Reporting.

o Federal Financial/Accounting Standards.

o Internal agency fund control practices.

3. Agency accounting policies and L M M Acquire knowledge of agency/organization:procedures

o accounting policies and procedures

o agency financial reporting

Core Competencies(Knowledge of, Ability to Use, or Levels Learning Objectives

Skill in Using)1 2 3

B. Federal Financial SystemRequirements

1. Financial systems requirements issued L M H Acquire general understanding of:by central agencies

o FMIP Framework for Federal Financial Systems

o JFMIP Federal Financial System Requirements(FFMSR)

o OMB Circular A-127 - Federal Financial Systems

2. Applicable legislative, administrative L M H Identify and interpret planning requirements resultingand regulatory requirements from major legislative and administrative changes as

they apply to the incumbent's financial systems.

o Treasury Financial Manual (TFM)

o OMB Circulars

3. Working knowledge of functionalities L M H 1. Acquire basic understanding of the functionalin agency financial systems process of financial systems being supported, e.g.,

payroll, accounts payable, etc.

L M H 2. Acquire knowledge of agency accounting andrelated financial management and informationsystems through:

o Interviews and discussions with agency financialsystems professionals.

o Review and analysis of agency applicationoperations manuals and user manuals.

4. Understanding of agency financial L M H 1. Acquire general knowledge of the technical designsystems architecture structure supporting the agency's financial systems.

L M H 2. Acquire working knowledge of the functionalsystem integration, e.g., core and feeder systems.

4

Core Competencies(Knowledge of, Ability to Use, or Levels Learning Objectives

Skill in Using)

C. Financial Management Controls

1. Management controls concepts and H H H 1. Acquire a general understanding of the importanceprinciples of a strong system of management controls.

M M H 2. Acquire an understanding of how managementcontrols reasonably ensure that:

o financial integrity is maintained for the recordingof transactions and the recording of results.

o transactions are executed in accordance withmanagement's general or specific authorization.

o resources are safeguarded against waste, loss, andmisuse.

2. Establishing management controls M M H Identify and implement appropriate general controlsand application controls.

3. Assessing, improving and correcting L M H Monitor and evaluate systems of management controlsmanagement controls with appropriate documentation, identify deficiencies,

and assist in correcting deficiencies.

Core Competencies(Knowledge of, Ability to Use, or Levels Learning Objectives

Skill in Using)1 2 3

D. Business Process Analysis andRedesign

1. Mission and functions of agency L M H Acquire knowledge of the agency/organization'sand/or organization structure, mission, functions, and major components.

2. Agency's strategic plan L L H Obtain understanding of the Agency's Strategic Planand the agency's strategy for change.

3. Evaluation of financial L M H Acquire knowledge of tools and techniques and theprocesses/systems ability to analyze processes and costs of specific

practices and procedures.

4. Development of alternatives to L M H Acquire knowledge of tools and techniques and theimprove/redesign processes/systems ability to reengineer/redesign business

processes/systems in order to achieve more efficientoperations.

Core Competencies(Knowledge of, Ability to Use, or Levels Learning Objectives

Skill in Using)1 2 3

E. Knowledge of System andInformation Technology

1. Analyze and test off-the-shelf L H M 1. Acquire knowledge of available commercial off-the-software packages or other software shelf software packages.

L H H 2. Relate functional requirements to commercial off-the-shelf software packages capabilities toeliminate as much customization as possible.

2. Systems design concepts L M M Acquire general knowledge of System DevelopmentLife Cycle.

3. Data management concepts L L M 1. Acquire knowledge of data stewardshipresponsibilities.

L M H 2. Acquire knowledge of data architecturemethodologies.

L L L 3. Acquire knowledge of database administration.

4. System architecture concepts for L M M Acquire knowledge of system hardware andsoftware, hardware, and telecommunications environment supporting agencyelecommunications financial system.

5. Computer security requirements L M H 1. Acquire knowledge of functional securityrequirements for financial systems.

L L L 2. Acquire general knowledge of technical security.

6. Continuity of operations (concept of L L L Acquire general knowledge of technical operation ofbackup and recovery) financial system, including production control

concepts.

Core Competencies(Knowledge of, Ability to Use, or Levels Learning Objectives

Skill in Using)1 23

F. Project Management

1. Project planning L M H 1. Acquire knowledge of structure of appropriationsand other funds that support existing and futureprograms and the mission of the Agency and howfund management impacts on programsachievement and financial systems.

L M H 2. Acquire knowledge of budget preparation process,strategies, and options for specific areas ofresponsibility on financial programs and systemsaccording to prescribed format and specifications.

L M H 3. Acquire knowledge of current and desirableaccounting functions, policies, procedures, andfinancial system performance related to the project.

2. Project monitoring L H H Perform life cycle management on the development ofa new or substantially modified system as a means ofaccomplishing its activities and tasks.

3. Acquisition management L M H 1. Administer and manage contracts for goods andservices to ensure quality performance and preventcost overruns.

L M H 2. Acquire, monitor, control resources according toestablished specifications for the development andimplementation of new or the modification of theexisting financial systems.

Core Competencies(Knowledge of, Ability to Use, or Levels Learning Objectives

Skill in Using)1 2 3

F. Project Management (con't)

4. Team building skills L M H 1. Demonstrate team-building techniques necessary toensure a cohesive and productive workplace:

o Possess the ability to integrate people from manydisciplines into an effective team.

o Be able to use basic coaching, brainstorming,directing, and delegating techniques and skills tofoster teamwork and project success.

o Possess the necessary skills to be able to negotiateeffectively for materials, supplies, and services thatare essential to the success of the project.

L M H 2. Demonstrate conflict methods necessary to ensurethat each project is completed on time and withinbudget:

o Recognize the determinants of conflict and theirtiming in the project life cycle to enhance activeparticipation and minimize unproductive conflict.

M H H 3. Provide effective communication with allorganizational levels to keep lines ofcommunication open to minimize conflict.

5. Change management skills L M H Manage and control changes to existing financialsystems and related organizational structures to reducecosts, increase benefits, and improve performancethrough change management techniques.

Core Competencles(Knowledge of, Ability to Use, or Levels Learning Objectives

Skill In Using)

G. General

1. Mission and functions of central L L M Acquire knowledge of the roles and missions of theagencies central agencies and other service providers and how

they interface with your agency.

2. Written communication H H H 1. Prepare routine memoranda and reports

L H H 2. Prepare and/or review documentation in support ofreports and/or systems requirements.

L M H 3. Prepare and review complex reports andjustifications for senior management.

3. Oral communication L H H 1. Give presentations including problems statements,recommendations, and project status.

L M H 2. Give complex/high-visibility presentations to seniormanagement (conferences, major meetings,seminars, etc.)

10

Specialized Knowledge Required for Financial Management Systems

In certain instances, such as analysis, design, and development of financial management systems,the Financial System Analysts will be required to develop specialized knowledge related to theunique requirements of the particular system. The matrix that follows identifies various financialsystems common throughout the government and lists the specialized knowledge required forthose persons engaged in the development of those systems. It highlights the basic financialknowledge that should be acquired in order to perform their duties effectively.

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