Table of Contents
- Why Become a Certified Government Financial Manager?
- What is a Government Financial Manager?
- What Does a Government Financial Manager Do?
- Requirements to Become a Certified Government Financial Manager
- How is the Certified Government Financial Manager Exam Scored?
- Study Resources and Preparation for the Certified Government Financial Manager Exam
- Career & Salary
Why Become a Certified Government Financial Manager?
Working for a government agency as a financial manager is similar to working for a private business or non-profit. You may work for the federal government, the military, public schools, or even for law enforcement. These agencies and others also need their funds to be carefully managed so that they are able to purchase needed equipment and pay their employees. Working for the government also means that you’ll work within a well-defined job role, following clear expectations from your supervisors.
As a federal government employee, you’ll be able to choose from a huge number of agencies such as the Securities and Exchange Commission (SEC), the Federal Bureau of Investigation (FBI), and the US Government Accountability Office (GAO), among others. The military (all branches) also needs professionals in accounting and finance to help them manage their various financial matters.
As a government financial manager, you’ll oversee employees, prepare financial records, review reporting systems, analyze finance reports, monitor payroll, and answer questions from elected officials.
What is a Government Financial Manager?
A government financial manager is a finance specialist or accountant with specialized abilities and knowledge working in the government sector. In your role, you may specialize in auditing or financial reporting, among other things.
To become a government financial manager, you’ll need at least a bachelor’s degree from an accredited university. And, once you’ve graduated, you need to study for the Certified Government Financial Manager (CGFM).
What Does a Government Financial Manager Do?
Your responsibilities will be many in this position. You’ll analyze financial data as you track the financial health of your agency. You’ll create financial reports, strategies, and plans for the long-term financial health of your government agency.
You’ll also prepare financial forecasts and business activity reports for your supervisor and oversee the employees tasked with budgeting and financial reporting. You’ll monitor all financial details in reporting to ensure that all legal requirements have been satisfied. You’ll also carry out tasks that are specific to your organization or industry within the government. This may include healthcare finance for organizations involved with healthcare, such as a military hospital. Or you may deal with cash or credit managers, controllers, insurance managers, risk managers, or treasurers or finance officers for your department. This also means you need to be familiar with current regulations and tax laws affecting your industry.
While professional certification isn’t mandatory, you may still want to obtain this recognition. It will serve to denote an extra level of competence in your job role. You’ll also need to have other business skills in order to be successful: communication, analytical, and organizational. You should also be detailed-oriented.
Requirements to Become a Certified Government Financial Manager
To be considered eligible to take any Certified Government Financial Manager (CGFM) exams, you are required to hold a bachelor’s degree (any discipline) from an accredited college or university. This institution must be located in the US. However, if your degree is from a foreign university, you are required to submit a report that says your degree is equivalent to either a bachelor’s or master’s degree.
Request your official transcript from your accredited university before you take a CGFM exam. The transcript must contain your name, your university or college’s name, confirmation that a bachelor’s or master’s degree was conferred, and the date you received it.
The CGFM examination content is spread across three exams: governmental environment, governmental accounting, financial reporting and budgeting; governmental financial management and control. The Association of Government Accountants works to keep all three exams current and up to date, so they will cover the most recent developments in the accounting field.
Governmental Environment: Material on this test covers local, state, and federal government and how each interacts with the other. Much of the exam requires an understanding of the three branches of government, its components, and how each level of government operates.
Governmental Accounting, Financial Reporting and Budgeting: This exam delves into governmental financial accounting, managerial cost accounting, and fee establishment.
Governmental Financial Management and Control: The material on this test covers financial management functions, financial and managerial analysis techniques, internal control, performance measurement/metrics/service efforts and accomplishments, and auditing.
Now that you know what each of the three exams covers, you need to know how long you’ll be sitting for each one. The Association Governmental Accountants (AGA) gives three exams that require governmental accountants to learn the materials and the standards to which they will be working.
AGA administers each exam at separate times year-round via more than 200 VUE testing centers in the US. The exams are offered three times each year at Pearson VUE testing centers. With more than 200 testing centers throughout the US, you’ll easily be able to find a center where it’s convenient for you to sit for your exam.
Each exam contains 115 questions. The exams are scheduled to last for 2 hours and 15 minutes.
How is the Certified Government Financial Manager Exam Scored?
After you complete each of your exams, you’ll be given your results right away. You’ll only learn whether you passed or failed, based on a printout that will be given to you. Or you may see the pass/fail on a computer screen.
If you didn’t pass your exam, you’ll receive a document that shows your scaled score. Using your Pearson VUE account, you’ll be able to get access to a detailed score report which tells you how you performed in each area.
The test scores are scaled and linked to raw scores. Exams for CGFMs use a scale of 200 to 700; 500 is the passing score. The most recent score you earned is the only one that is accessible through your account – it may also be a good idea to print out the score report you’re concerned about before you retake an exam.
Study Resources and Preparation for the Certified Government Financial Manager Exam
As you get ready to begin studying for your CGFM exam, you should familiarize yourself with several effective study tips. Giving yourself every opportunity to learn and familiarize yourself with exam material means you have a better chance of passing each exam.
Practice exam tips:
During your exam:
If you need to retake the exam:
The CGFM exam is like many other certifications of its type. There is plenty to remember and you are studying, not as a student but as a professional with work, family, and other responsibilities to maintain. Mental preparation is a large part of approaching each one of your exams. As long as you understand the ask in front of you and spend enough time applying yourself to the task of studying as the exam date gets closer, you, like many before you, should be able to pass the test without too much trouble.
Along with learning the material, you also need to learn some skills or refine them. These include communication, marketing, and sales skills.
Once you have been accepted into the CGFM program, it’s time to schedule your testing date with Pearson VUE. Then, you pay for your exam fee, which is $125, using a credit card, when you schedule the date for your exam. You can also pay by check, but you should check with the site to verify exactly how to do that, as the rules may change from state to state.
Before you choose the examination appointment you want (testing center or online exam), read the testing policies and procedures so you understand everything that pertains to your ability to take and pass the exam. Once you have read each policy, then you can schedule your exam appointment without worrying that you’re missing something.
Career & Salary
Where Might You Work?
Once you’ve graduated and passed your certification exams, where will you work? You can, of course, expect to work for a government agency; this may be local, state, or federal.
For instance, you may work for the General Services Administration (GSA), the FBI, US Department of the Treasury, IRS, the US Government Accountability Office (GAO), or the General Accounting Office).
You may also work for a state or local government, managing local revenues. performing compliance and federal audits of either state or local government entities, or carrying out white-collar crime investigations.
The employment picture for government financial managers looks good. Between 2018 and 2028, the estimate is that employment will increase by 16%, much faster than normal for most positions. After economic downturns and recessions, individuals, retirees, companies, and governments need the services that financial planners and financial managers provide.
Any time there is a crisis and government coffers are depleted, they need to make wise investments to refill them again—schools, health departments, environmental offices, and other agencies need to make sure they have the money to run their vital operations.
Financial managers plan where to buy, sell, or invest and then direct those investments so they earn the highest returns. If you are specializing in one form of financial management, such as risk management or cash management, you’ll be in high demand. The financial management industry has noted a stronger emphasis on risk management in recent years. Government financial managers who make decisions based on stability rather than risk are more likely to assist their employers in rebuilding funds, rather than losing money. It is these specialists who are likely to see a higher demand for their services.
States with an industry that is vulnerable to recessions particularly need the services of government financial managers. If oil prices, for instance, drop suddenly, that means the state loses. A knowledgeable financial manager can help soften these types of blows.