Author: Gregory Allison (page 1 of 2)

Are You Certifiable 2.0?

This is a revised and updated version of the “Are You Certifiable?” that was posted in “Death & Taxes” on November 11, 2016.  This post reflects the new online process for testing in the North Carolina Finance Officers Certification Program, as well as the overall process and requirements to obtain certification recognition.  The previous version of the blogpost has been removed.

The above question has been posed to me time and again over the years, probably for obvious reasons!  (And the quick answer is…yes, I am! But I digress…)  However, it was not posed from the perspective of how I am using it in this context. One of the most common phone calls or e-mails that I receive on a regular basis relates to the North Carolina Finance Officers Certification Program.  As more and more baby boomers have their retirement lunches and collect their gold watches (click here for more on that topic!), the turnover in local government finance across the state and the infusion of newly minted local government finance employees has contributed to the exploding interest in this program.  This blog focuses on the specifics of the program, educational and testing requirements, and other frequently asked questions.  This is an updated version of a previously posted blog about the certification program to address the new by-laws and the introduction of the online testing format.

What is the North Carolina Government Finance Officers Association (NCGFOA) certification program?

The NCGFOA certification program was created over 30 years ago as a joint effort of the then North Carolina Public Finance Officers Association and the North Carolina Association of County Finance Officers (the two associations formerly merged into the NCGFOA in 2011).  The program is governed by a Certification Committee made up of both municipal and county officials that are members of the Association and appointed by its President to serve one or more terms.  Contrary to popular belief, the program is not a certification program of the UNC School of Government . The School’s role is to provide administrative and consultative support.

In general, who is eligible to be considered for certification?

Individuals that are a finance officer of a local government or public authority or individuals that hold a supervisory or professional position in a local government or public authority related to financial functions, such as internal audit, investments, budgeting, or accounting.  The general rule is that an Associates degree or higher is required for initial hires that occur January 1, 2010, and after.  Thus, there are no degree requirements for individuals hired in local government BEFORE January 1, 2010.  Ultimately, to apply for certification after all educational and testing requirements have been met, individuals must be members of the NCGFOA.

What experience is necessary in order to apply for certification?

The basic experience requirements are:

  1. At least one year’s experience in North Carolina as a legally designated finance officer of a local government or public authority and at least one additional year of governmental financial management/responsibility, or
  2. At least two years’ experience in North Carolina local government finance and at least two additional years of governmental financial management/responsibility.

The experience must be within the five years that precede the application for certification.  However, the educational and testing processes may be taking place while the experience is being gained.

The “additional year or years of governmental financial management/responsibility” as referred to above may have been gained in another state.

May an advanced educational degree or other type of certification replace some of the experience requirements?

A master’s or doctoral degree may replace one year of any experience requirements.  Likewise, a valid Certified Public Accountant (CPA) would replace one year of experience requirements.

May the experience requirements be met in another state or may another state’s finance officers’ certification program be transferred to the North Carolina certification?

Generally, no. A valid CPA license would still count for one year of experience, but other types of state certifications are not transferrable. Work experience in another state may not replace the required “North Carolina years” of experience as referred to previously, but may satisfy the “additional year or years of governmental financial management/responsibility”.

What are the educational requirements of the certification process?

There are five core courses related to the certification program and each are part of the UNC School of Government curriculum.  An individual must successfully complete four of these programs.  The five core courses are:

  1. Introduction to Local Government Finance
  2. Governmental Accounting and Financial Reporting
  3. Budgeting and Financial Planning (two courses but counted collectively as one requirement)
    1. Budgeting in Local Government
    2. Capital Financing in Local Government
  4. Cash Management and Investment of Public Funds
  5. Effective Supervisory Management Program

Are there any waiver options for the core courses?

If one has completed the School of Government’s Municipal and County Administration Program, it can replace the Introduction to Local Government Finance program.

Experience may be used to waive core courses, as follows:

  1. Three to six years of experience in North Carolina governmental finance may substitute one core course requirement.
  2. Over six years of experience in North Carolina governmental finance may substitute two core course requirements.

It should be noted, however, that the courses themselves are excellent reviews for the related examinations.

Could other courses or programs be considered as waivers for any of the core courses?

Yes, potentially.  The Certification Committee may be asked to approve whether or not a particular course or program offered by an institution of higher learning, a professional association, or other similar organization could be considered as an appropriate substitution.  Such decisions are made on a case-by-case basis.

Does one have to take a core course before they can sit for the associated examination?

Actually, no.  However, the core courses themselves are considered to be an integral part of the educational process in preparing one to be a certified finance officer.  To that end, the general expectation is that the core course requirements will be met, regardless if the test is passed before completing the course.

Is there a possible “testing out” option for any of the core courses?

There is one opportunity for an individual to waive all core course requirements by examination.  The exams themselves are administered online three times per year (more on that shortly).  If a person sits for and passes all four exams within a calendar year’s examinations, all or any of the core course requirements that haven’t been completed would be waived.  If all four exams are not passed during this attempt, but one or more of them are successfully passed, the individual will receive core course credit for those parts passed.  However, the remaining core course requirements must be completed.

What are the examination requirements?

There are four exams that must be successfully completed (i.e., pass with a grade of 70% or higher).  There are no waivers for the exams.  The four exams are as follows:

  1. Governmental Accounting and Financial Reporting
  2. Cash Management and Investment of Public Funds
  3. Budgeting and Financial Planning
  4. Financial and Supervisory Management (tied to the Effective Supervisory Management Program)

Except as noted above, the exams are obviously directly related to an associated core course.  The Introduction to Local Government Finance course does not have a related examination, per se, but is rather a course that includes all related subjects.

Who develops the examinations and how are they structured?

The Certification Committee is responsible for maintaining a test bank for all exams and it is updated on a regular basis.  As accounting and financial reporting requirements in particular are ever-changing, the testing topics will evolve as well.  However, such changes in accounting and financial reporting requirements will not be included in the test banks until after they are required to be implemented.  The exams are administered three times per year on a secure SAKAI platform.

The tests themselves are objective.    Each of the four exams will have 50 multiple choice questions worth 2 points each.  The exams are on a 100 point grading scale.  The grade results are either Pass or Fail.  Numerical grades will not be given.

How are the exams administered?

The exams will be available on the last successive Thursday and Friday of January, May, and September of each calendar year.  Announcements will be posted when registration is available for each testing cycle.  The exams will be accessible from 8 a.m. until 3 p.m. of each of those days.  Any of the four exams can be accessed during that time.  Once an exam is opened, there will be 2 hours to complete it.  There is no pausing the exam. At the end of 2 hours, the exam will automatically close if it has not already been submitted.  If that occurs, the candidate will only get credit for those questions answered correctly.

How many opportunities does an individual have to complete all four examinations?

The Certification Committee considers the “clock” to have begun once an individual successfully passes at least one of the four exams.  Again, successful completion of an exam is to pass with at least a grade of 70% – which will be communicated simply as a Pass or a Fail.  From that point, an individual has 4 years to complete the remaining parts.

How much does it cost to take an exam?

While subject to change, depending on what is necessary to cover exam costs, the current fee structure to sit for one or more exams is as follows:

  1. One part – $50
  2. Two parts –    80
  3. Three parts – 110
  4. Four parts –  140

Payment for the exams may be made online at the time of registration or the School of Government will send an invoice for those that cannot pay upfront.  There are discounts built into the pricing structure when multiple tests are taken during a testing cycle.

When are individuals notified of their exam results?

Although the exams are automatically scored initially, results will be withheld until all exams are reviewed to ensure there were no internal coding issues, especially in the early exams.  Participants should be notified whether they passed or failed by e-mail within one to two weeks following the exam.   There are no numerical grades – only Pass or Fail.

Are there any study guides and/or practice exams available?

There are no official study guides prepared for any of the exams.  The primary resource for study would be the respective course itself and the associated materials. An Introduction to Local Government Finance, Fourth Edition (2018) is the best resource for overall reference.  In addition, Section 159 of the North Carolina General Statutes (click here) includes all of the basic requirements of finance officials in North Carolina. As for the Governmental Accounting and Financial Reporting exam, other governmental GAAP textbooks such as the national Government Finance Officers Association Governmental Accounting, Auditing, and Financial Reporting are good supplemental materials.

There are no practice exams available, nor are copies of previously-taken exams available for review.

What happens after I successfully complete the examinations and all other certification requirements?

The following blogpost covers post-certification life and answers all the frequently asked questions related to continuing professional educational requirements and renewal periods.


Registration for the NCGFOA Certified Finance Officer Exams on October 25 and 26 will opened today, Wednesday, October 17 at 8:00 a.m.  The following links are for instructions on the registration process and for the registration links page directly.  Please note that the School of Government has a new registration system and you may be required to create an account if you have not recently.  All of this information is in the instructions page.


Once registration has closed, complete information regarding instructions for access, technical support and parameters of the exams themselves will be provided no later than Wednesday, October 24.  


Registration Instructions

Exam Registration Links


NCGFOA Finance Officer Certification Exams Schedule Update

As was announced in August, the first online offering for the NCGFOA Finance Officer Certification Exams was scheduled to be Thursday and Friday, September 27 and 28.  Given the widespread impact of Hurricane Florence and the demands that are going to be placed on management and finance officials over the next weeks and even months, the Certification Committee believed it best to postpone the first offering.  Also, the University has been closed since late last week and is now dealing with unexpected IT issues, thus this will give them time to approve the final platform, a task that was scheduled for this week.  The first online exams are now scheduled for Thursday, October 25 and Friday, October 26.  Afterwards, the online exams will be held on the final successive Thursday and Friday of January, May, and September each year. Continue reading

Of Interest to You

In November 2017, the Governmental Accounting Standards Board (GASB) issued an Exposure Draft entitled Accounting for Interest Cost during the Period of Construction.  The GASB is proposing a standard that would significantly change the way certain interest costs are accounted for during the period of construction of capital assets.  And (for once) for the better!  If approved in its current form (and I do not anticipate any real challenges to this proposal), governmental entities would simply recognize interest as an expense or an expenditure in the period it’s incurred, whether or not it is during the construction period.  As such, there would be no further interest capitalization to calculate and report.

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It’s the Lease of My Worries!

The Governmental Accounting Standards Board (GASB) recently released GASB Statement No. 87, Leases. This project is a bit unusual in that it basically mirrors a similar recent project of the Financial Accounting Standards Board.  In the end, both the private sector and the public sector will be accounting for operating lease arrangements in basically the same way.  When implemented, this standard will change how the accounting and financial reporting is done for most operating lease arrangements, with very limited exceptions.  The standard will not affect, however, how capital lease arrangements are currently accounted for and reported.

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What Fun Awaits?


The Governmental Accounting Standards Board (GASB) apparently never slows down!  The past several years have seen an explosion of activity that includes significant changes to governmental financial reporting – and there is MUCH more to come!  A future blog post will focus on the most recently approved pronouncement – GASB Statement No. 87, Leases, which provides guidance for lease contracts for nonfinancial assets, and is consistent with private-sector lease requirements recently approved by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). This blog post, however, is a quick peek into the current GASB agenda and the expected timelines for those projects.

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Introducing the 2017-2018 Finance Calendar of Duties

The UNC School of Government has just posted its most recent Local Finance Bulletin, the 2017-2018 Finance Calendar of Duties for City and County Officials, prepared by Gregory S. Allison.  This annual publication is a monthly guide for finance and budgeting officials on all statutory and regulatory reporting and administrative responsibilities.  The finance calendar has been a publication of the School of Government for decades and is an online, free resource for finance officers, budget officers, clerks, and other administrative officials.

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You Are Doing WHAT to the Governmental Funds?? – Part 3, The Long-Term Approach

Yogi Berra said it best.  “It’s déjà vu all over again.”  That is what should come to everyone’s mind upon reviewing the third measurement focus and basis of accounting proposal from the Governmental Accounting Standards Board’s (GASB) recent Invitation to Comment (ITC), Financial Reporting Model Improvements – Governmental FundsAs was noted in the previous blog post You Are Doing WHAT to the Governmental Funds?? –  Part 2, the Short-Term Approach, each proposal is moving further and further away from the current financial resource measurement focus and the modified accrual basis of accounting currently used in the governmental funds.  Well, this is an all-out retreat!!  In fact, it is also being referred to as the total financial resources approach.

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You Are Doing WHAT to the Governmental Funds?? – Part 2, The Short-Term Approach

In our last chapter, You Are Doing WHAT to the Governmental Funds?? – Part 1, The Near-Term Approach, we explored one of the three new measurement focus and basis of accounting (MFBA) options being considered for the governmental funds.  These approaches are presented in the Governmental Accounting Standards Board’s recent Invitation to Comment (ITC), Financial Reporting Model Improvements – Governmental Funds.  And you thought it was a scary chapter!?? The suspense continues with the second MFBA proposal – the short-term (or working capital) approach.  One spoiler alert (but it is for your own good) – each approach goes further away from the current resource measurement focus and modified accrual basis of accounting currently used by the governmental funds.  (Just wait until you read Part 3….)

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You Are Doing WHAT to the Governmental Funds?? – Part 1, The Near-Term Approach

In my previous post, Invitation to Comment – or Invitation to Disaster?? The Long Slog to a New Financial Reporting Model Begins!, I provided a fascinating overview of the Governmental Accounting Standards Board’s (GASB) new financial reporting model project.  As was noted, the actual Invitation to Comment (ITC), Financial Reporting Model Improvements – Governmental Funds is a first step in the long due process of developing a new GAAP standard.  As is the case here, an ITC usually provides an opportunity for the GASB to solicit feedback on various proposal considerations.  A significant aspect of the reporting model project is the reconsideration of the unique measurement focus used in the governmental funds (current financial resources).  The ITC details three new measurement focus approaches to consider – the near-term approach, the short-term approach, and the long-term approach.  This post, focusing on the near-term approach, is the first in a series that will provide (hopefully) a clearer insight into the plotting that is occurring in Norwalk.

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