AGA TOPICS Newsletter

Jeff Steinhoff, CGFM, on Forty Years of Federal Service, AGA Membership and How an Idea Led to the CGFM Program

Please discuss your federal career, the changes you have witnessed since you started out more than 40 years ago as well as significant accomplishments.
I began my federal career as an auditor with the Army Audit Agency. From the outset, I enjoyed auditing and found the variety of issues interesting and challenging and the people great to work with and very dedicated. I look back fondly to that experience and the strong audit foundation that was built during those early years. In 1973, I joined the Government Accountability Office (then the General Accounting Office), specializing in the financial management arena for my entire GAO career. For the past almost nine years, I was honored to serve first as Assistant Comptroller General of the United States for Accounting and Information Management and then as the Managing Director for Financial Management and Assurance. It was a privilege to work with three outstanding Comptrollers General: Elmer Staats, Chuck Bowsher and Dave Walker—who epitomize the best in public service and have provided lasting vision to the government accountability community. Very few people in government have the opportunity to work with such giants in our profession and to have had only three top leaders in more than 34 years with the organization. I have been truly blessed and very much appreciate the opportunities that GAO provided to me to make a difference, which is what public service is all about.

Now, what has changed in the past four decades? I could say almost everything has changed (and changed for the better), but will focus on one change that permeates everything we do in our day-to-day lives. We are now in an information age, an age that knows no bounds and continues to rapidly evolve and push the envelope. Many accountability professionals grew up with technology and have little understanding of (and perhaps could never truly comprehend) what it was like before the advent of computers and the field of information technology. When I started my federal career, not only were there not computers, there were not even calculators. (Yes, you cranked the handle on an adding machine, most of which did not even have tapes.) The first time I saw a hand held calculator was in early 1970, when a co-worker came back from Japan.  The calculator added, subtracted, multiplied, divided and computed the square root—the most basic functionality. While it would cost less than $1 today, it cost $350 at a time when the starting salary for government accountants was a little over $7,000.  In today’s dollars, $350 equates to about $2,000 today. The XEROX Corporation was just getting off the ground. As an auditor, you prepared a work paper summarizing the material from source documents. You did not photocopy records for audit documentation. And when photocopying emerged on the landscape, the machines did not print multiple copies of large documents and collate and staple them together in a flash with a push of a button.  No, you fed in documents one page at a time, and waited minutes for your copy of that single page to emerge. All reports and written documents were typed and had to be letter perfect, which was no small feat as typewriters did not yet have correction features. If the person in the typing pool made one mistake, he/she had to start over again. Needless to say, productivity was not near what it is today. And think of the accountant who had to keep the books and records and reconcile any differences. Relatively speaking, the auditor had it easy.

Today, auditors match data files and mine data for anomalies, electronic audit document is the norm, and audit products do not have to go through a typing gauntlet.  The environment we work in today (and take for granted) was not even imaginable 40 years ago. I could go on and on with many more examples but it suffices to say that information technology has changed everything in our lives. No doubt, it has been a blessing, and no one can imagine going back to the past, but it has also added complexities to our everyday lives and demands on our time from e-mail to instant messaging to voice mail to the expectation of instant turnaround.

In this profession, the work is never finished. What do you see as the single greatest challenge facing the profession and government today?
In every respect, the accountability profession has made incredible progress over the past 40 years. Looking to the future, the greatest challenge our profession faces is finding ways to add greater value to program and operational managers by providing reliable, relevant and timely information for decision support and day-to-day operations. We have to move from a focus on transaction processing to one that routinely provides financial information that is useful to management. Moving from the backroom to the boardroom is what it is all about. We have to continue on that journey as today too much time is still being spent on preparing auditable financial statements and complying with a range of one-size-fits-all requirements. While important as a measure of an organization’s ability to be accountable, audited financial statements provide a historical perspective and have proven at the federal level to still be of little value to the program manager and the overseer, such as Congress, who need a different portfolio of information to do their jobs. This came through loud and clear at a forum on financial management systems sponsored by Comptroller General Dave Walker this past December and attended by 35 financial management experts, including AGA’s Executive Director, Relmond Van Daniker. This is not to say that audited financial statements do not have value; but their value is more as a catalyst in improving our systems and internal control so that we can move to the next stage and support the decision-maker. We also need to reexamine the financial reporting model and work to make financial statements more relevant and, therefore, more valuable. Looking outside the traditional box will be a must for the future. The important role that FASAB and the JFMIP play will become ever more important. Further, we will all be faced with reducing the cost of the financial management and auditing as the future holds difficult budget times at all levels of government. We are all going to be faced with doing more with less and less, regardless of which political party wins the presidency in November 2008. While we have a lot of challenges, I want to applaud the progress that has been made by the accountability community and the ongoing initiatives that promise to bear fruit in the future. Everyone should be most proud of our collective achievements, but mindful that the job is never finished as the question rightly observed.

Discuss if you will the impact of legislation such as the CFO Act, GPRA, GMRA, and others that were passed during your career and your thoughts about the impact they have had on government accountability.
In answering this question, I will admit to not being totally objective as I was GAO’s point person for financial management legislation going back to the days of the Federal Managers’ Financial Integrity Act in 1982. Let’s talk about the CFO Act. It has had profound impact on the federal financial management community and on government accountability. The act passed in late 1990, so we have 17 years of experience to fall to back on in assessing the results. Who would have ever imagined that 19 of 24 CFO agencies would be receiving clean audit opinions only 45 days after the end of the fiscal year and that internal control weaknesses would be significantly reduced? Who would have imagined financial management making a president’s radar; but it is an integral part of the President’s Management Agenda and has been so since the start of the Bush administration. Who would have imagined a clean opinion on a primary governmentwide financial statement, but this year GAO rendered a clean opinion on the Statement of Social Insurance? Who would have imagined outsourcing accounting to another federal agency, but this is happening. By any measure the journey is not over, but the range of management legislation has resulted in better government. We now need to move to the next leg of the journey and successfully address what I view as the three key provisions of the CFO Act: the systematic measurement of performance, the development of cost information and the integration of systems—program, budget and accounting. The best is yet to come, and AGA and its members need to continue to advance government accountability at all levels.

With the 2008 election around the corner and a new administration coming to town, what government financial management priorities would your to-do list for the new president include?
Clearly the top priority should be to focus attention in a meaningful way on the nation’s fiscal challenges. We not only have to stop digging but begin to fill the hole. The numbers speak for themselves, and they tell a harrowing tale. Recent public opinion polls show that American’s are becoming more aware of the severity of the problem and more people want their leaders to step forward. It remains to be seen, though, how this manifests itself since bold action by elected officials is not always rewarded at the ballot box, and bold action is what is needed. AGA and its members must play an important role in educating people about the facts and the devastating long-term impact of inaction. AGA’s early involvement in the Fiscal Wake-Up Tour, spearheaded by Comptroller General David Walker, was a very important commitment to beginning the dialogue.

In terms of the accountability community, the new administration must ensure a continuing commitment to the legislative concepts of the CFO Act and related legislation and to move to the next phase of the process as I outlined above. The appointment of CFOs and IGs with extensive track records of excellence in their respective fields and impeccable ethical values will be critical to building on the many successes to date. Wise investments in people and systems will be needed. The administration and the Congress will need to avoid the temptation of trying to balance the budget through arbitrary cuts in the management infrastructure, which I have seen happen all too often in the past. It does not work and will prove to be penny-wise and pound foolish over the long term. In the early 1990s, AGA issued a special report to the incoming Clinton administration laying out a game plan for financial management priorities. Perhaps such a document would be useful at the end of 2008.

Of course, AGA would like to know how your membership has enhanced your career and why you’d encourage young professionals to become involved with AGA.
My involvement in AGA, for which I have been a member since 1976, has been very extensive and very rewarding professionally. It has involved a lot of hard work and commitment; but you only get out of something what you put into it. Membership in AGA is the best way to broaden one’s perspective on financial management and auditing issues, network among peers at all levels across government, and have a chance to lead and make a difference while growing as a professional. Just getting to know others outside your own organization is invaluable and makes it much easier to navigate through the layers and different facets of government. You get to know other professionals outside of your own organization, and not only break down barriers that might otherwise exist, but gain a better understanding of differing points of view. AGA offers endless opportunities to become involved regardless of your years of service or level in your organization and is always looking for a few good men and women. AGA provides opportunities to do research and to publish articles in newsletters and professional journals. AGA’s training programs are exceptional. Leadership positions are available, and some serve in positions, such as chapter president, very early in their careers, thus giving them a unique developmental opportunity and responsibility that they would not otherwise get from their employer. If you view your career as a job, it will always be a job. If you view it as a profession, it will be much more rewarding. While there is no secret recipe for success, your efforts to be active part of the profession through AGA can help maximize your own career potential and enable you to be part of a profession and not just someone doing a job.

As the “father” of AGA’s CGFM Program, you must certainly look back with pride at the hard work it took to bring the program into fruition. Almost 15 years after its inception, CGFM has become the gold standard certification for the government financial management and accountability profession. What are your thoughts about where we’ve been and where we’re going with CGFM?
I want to thank AGA’s National Board of Directors, the National Executive Committee, the Chapter Presidents and officers for their support of the proposal for the CGFM Program and for having the confidence to take a chance on what was a concept from a National President with a one-year term. Without their support, we would not have been able to begin the journey. Once we got the thumbs up, it was a labor of love, with too many volunteers to mention coming to the forefront to contribute their precious time and vast talents to implement the program and developing the CGFM Exams. It is an example of what AGA members can achieve when they work together toward a common goal. The program is now moving toward the next level under the outstanding leadership of the national office CGFM staff and the Professional Certification Board, which I am honored to serve on as a member. Everyone worked very hard over many years to make the program what it is today. From the outset we had the support of the membership, and we did it right and did not cut any corners. The hard work has certainly paid off for our profession, and the number of people taking the CGFM Exams and becoming new CGFMs has taken off in the past several years. The best years are ahead of us, with every metric and indicator pointing upwards. With everyone’s continuing support, I am confident the CGFM Program will remain the gold standard for the government accountability profession and will continue grow in stature.

What are your plans for retirement?
My plans right now are to live a long time, enjoy life, and make the most of whatever the future holds professionally. As I write this, I’ve been retired for three days, and so far, so good. Retiring from GAO was a very difficult decision as it is a great organization with great people doing important work, and I was most honored to serve the American public and be part of the government accountability community. After 40 years, though, it was time for me to seek new challenges in life. Of course, I will be available to assist AGA in any way I can and was pleased when Marie asked me to answer these questions as I very much enjoy writing and sharing my perspectives. I have received a number of inquiries regarding some potentially interesting professional opportunities. I plan to sort through my options once the dust has settled and see if they make sense for me and the organization, as it is important to me to add value and make a difference. Whatever I do in the future, I will look back at the past 40 years of federal service as a special opportunity to work with outstanding accountability professionals at levels of government and to be involved professionally with AGA, the preeminent professional organization for advancing government accountability.

Any final thoughts?
For all those in the government accountability profession, you have a special calling and a unique opportunity to make a difference for the American public. Never be complacent, and view each and every challenge as an opportunity. We spend most of our adult lives working (and unfortunately commuting to work if you are in a large metropolitan area like Washington, D.C.), so make it a profession and not a job. What sets AGA members apart is that they have made their career a profession by being involved in their profession and actively working to advance government accountability. Forty years went by in the blink of an eye for me because it was always a profession and never a job. I enjoyed each day. My thanks to everyone I have had the privilege of coming in contact with during my federal government career for the opportunity to learn and to grow professionally, and I look forward to 40 more years.