California Society of Municipal Finance Officers
Encyclopedia
The California Society of Municipal Finance Officers (or CSMFO) is a professional association of state, county, and local government
finance officers in California
. The California Society of Municipal Finance Officers is the statewide organization serving all California municipal finance professionals, an affiliate of the nationwide Government Finance Officers Association (GFOA). Membership is open to anyone in the State of California actively engaged in government finance in any city
, county, or special district. Its stated mission is to promote excellence in financial management through innovation, continuing education and professional development. CSMFO members are actively involved in the key issues facing cities, counties, and special districts in the State of California.
Recognizing that public servants have an obligation to serve the public’s interests, CSMFO serves to actively improve fiscal integrity, adherence to the highest standards of ethical conduct, and to create better accountability by disseminating best practices.
(CFO Act) was signed into law by President George H.W. Bush. For each of 23 federal agencies, the position of chief financial officer was created. Since that time, federal efforts have been intended to improve the government's financial management and develop standards of financial performance and disclosure. Similar financial expectations exist at State and Local government levels.
The chief financial officer
(CFO) of a public agency is the corporate officer primarily responsible for managing the financial risks of the business or agency. This officer is also responsible for budgeting, financial planning, record-keeping, cash flow management, higher management. communicating financial performance and forecasts to the community. The title may vary, such as finance director or treasurer, from agency to agency. The CFO typically reports to the city manager or other chief executive officer.
Financial reporting has multiple audiences, with a responsibility to citizens, taxpayers and voters to provide transparent accountability for use of public funds (taxes). Additionally, financial reporting must provide internal guidance to program managers to maintain budgetary control and to governing city councils and boards of directors to provide adequate financial policy guidelines.
The United States government in general has sought to improve the quality of financial reporting. The Government Accounting Standards Board (GASB
) has a stated mission to "establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports." Pronouncements in particular have trended to incorporate more comparable elements of business-sector.
The need for and value of financial managers has increased. Over the past decades, a number of factors have created a rapidly changing environment for today's government financial managers. Beginning with the New York City
financial crisis in the 1970s and 1980s, state and local governments began overhauling their financial management systems. In 1990, the Chief Financial Officers (CFO) act called for reforms that brought the goal of accountability to the forefront. The 1994 Bankruptcy of Orange County, California
further underscored the need for ongoing excellence and expertise in the field of municipal finance.
, sales tax
, income tax
, utility users tax (UUT), transient occupancy tax (hotel occupancy), and user fees such as licensing and permit fees.
Michael Genest is the Finance Director and Bill Lockyer
is the Treasurer
of the State of California. There are 480 California cities , 58 California counties about 3,400 Special Districts and School Districts, each with independent fiscal stewardship. Many City Treasurers are elected, and are therefore directly accountable to their constituents; the remainder are appointed either by City Council or City Manager. Finance Directors typically are appointed by the City Manager.
for public finance directors and treasurers who meet standards of education, experience and commitment to a code of ethics. CSMFO does not offer its own post-nominal professional certificate since GFOA already administers the Certified Professional Finance Officer (CPFO), CMTA offers the Certified California Municipal Treasurer
(CCMT) certification program , and the Association of Government Accountants offers the Certified Government Financial Manager
(CGFM) certification, requiring six hours of testing on Federal, State and Local Government Financial material.
1. Demonstrate and be dedicated to the highest ideals of honor and integrity
in all public and personal relationships to merit the respect and confidence of the elected officials, other public officials, employees and the public
.
2. Recognize and be accountable for their responsibilities as public officials; be sensitive and responsive to the rights
of the public
.
3. Exercise prudence and integrity in the management of funds in their custody and in all financial
transactions
.
4. Maintain their own competence
, enhance the competence of their colleagues and staff members, and provide encouragement to those seeking to enter the field of government finance.
5. Seek excellence in the public service
; be well informed and well prepared to exercise public authority.
6. Demonstrate professional integrity
in the issuance and management of information
; prepare and present statements and financial information fairly, in accordance with law
and generally accepted practices and guidelines.
7. Respect and protect privileged information
; be sensitive and responsive to inquiries from the public
and the media
within the framework of local government
policy
.
8. Act with honor, integrity
and virtue
in all professional relationships; respect the rights of their colleagues and other public officials with whom they work and associate.
9. Handle all matters of personnel within the scope of their authority on the basis of merit so that fairness and impartiality
govern their decisions.
10. Seek no favor or accept any personal gain which would influence, or appear to influence, the conduct of their official duties.
11. Protect the public trust
, avoid even the appearance of impropriety, and safeguard the integrity
of the government
they serve.
Standing Committees
Financial Leadership is furthered by engaging in efforts to assist statewide finance officers to develop the skills and capabilities necessary to enable them to become organizational leaders as well as technical experts.
CSMFO facilitates interagency communication for the purposes of sharing information and best practices. Cooperate with and complement the services provided by other organizations to increase the effectiveness of all.
Like GFOA nationwide, CSMFO sponsors award programs designed to encourage good financial reporting in California, for financial documents including the Comprehensive annual financial report
, or CAFR, and the annual budget
.
CSMFO provides technology information and analytical tools to help governments identify and apply appropriate, economical technologies to support efficient resource allocation, quality services, and effective decision making and to promote citizen involvement.
Local government
Local government refers collectively to administrative authorities over areas that are smaller than a state.The term is used to contrast with offices at nation-state level, which are referred to as the central government, national government, or federal government...
finance officers in California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
. The California Society of Municipal Finance Officers is the statewide organization serving all California municipal finance professionals, an affiliate of the nationwide Government Finance Officers Association (GFOA). Membership is open to anyone in the State of California actively engaged in government finance in any city
City
A city is a relatively large and permanent settlement. Although there is no agreement on how a city is distinguished from a town within general English language meanings, many cities have a particular administrative, legal, or historical status based on local law.For example, in the U.S...
, county, or special district. Its stated mission is to promote excellence in financial management through innovation, continuing education and professional development. CSMFO members are actively involved in the key issues facing cities, counties, and special districts in the State of California.
Recognizing that public servants have an obligation to serve the public’s interests, CSMFO serves to actively improve fiscal integrity, adherence to the highest standards of ethical conduct, and to create better accountability by disseminating best practices.
The Challenge to Excellence in Government Finance
The Chief Financial Officers Act of 1990Chief Financial Officers Act of 1990
The Chief Financial Officer and Federal Financial Reform Act of 1990, or CFO Act, signed into law by President George H.W. Bush on November 15, 1990, is a United States federal law intended to improve the government's financial management, outlining standards of financial performance and disclosure...
(CFO Act) was signed into law by President George H.W. Bush. For each of 23 federal agencies, the position of chief financial officer was created. Since that time, federal efforts have been intended to improve the government's financial management and develop standards of financial performance and disclosure. Similar financial expectations exist at State and Local government levels.
The chief financial officer
Chief financial officer
The chief financial officer or Chief financial and operating officer is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management...
(CFO) of a public agency is the corporate officer primarily responsible for managing the financial risks of the business or agency. This officer is also responsible for budgeting, financial planning, record-keeping, cash flow management, higher management. communicating financial performance and forecasts to the community. The title may vary, such as finance director or treasurer, from agency to agency. The CFO typically reports to the city manager or other chief executive officer.
Financial reporting has multiple audiences, with a responsibility to citizens, taxpayers and voters to provide transparent accountability for use of public funds (taxes). Additionally, financial reporting must provide internal guidance to program managers to maintain budgetary control and to governing city councils and boards of directors to provide adequate financial policy guidelines.
The United States government in general has sought to improve the quality of financial reporting. The Government Accounting Standards Board (GASB
Governmental Accounting Standards Board
The Governmental Accounting Standards Board is currently the source of generally accepted accounting principles used by State and Local governments in the United States of America...
) has a stated mission to "establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and guide and educate the public, including issuers, auditors, and users of those financial reports." Pronouncements in particular have trended to incorporate more comparable elements of business-sector.
The need for and value of financial managers has increased. Over the past decades, a number of factors have created a rapidly changing environment for today's government financial managers. Beginning with the New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
financial crisis in the 1970s and 1980s, state and local governments began overhauling their financial management systems. In 1990, the Chief Financial Officers (CFO) act called for reforms that brought the goal of accountability to the forefront. The 1994 Bankruptcy of Orange County, California
Orange County, California
Orange County is a county in the U.S. state of California. Its county seat is Santa Ana. As of the 2010 census, its population was 3,010,232, up from 2,846,293 at the 2000 census, making it the third most populous county in California, behind Los Angeles County and San Diego County...
further underscored the need for ongoing excellence and expertise in the field of municipal finance.
Role of CSMFO Membership
Members are finance directors and treasurers of municipalities and other local government agencies, whether elected or appointed, having responsibility for collection, receipt, reporting, custody, investment or disbursement of municipal funds. Municipal funding sources are commonly property taxProperty tax
A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...
, sales tax
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
, income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
, utility users tax (UUT), transient occupancy tax (hotel occupancy), and user fees such as licensing and permit fees.
Michael Genest is the Finance Director and Bill Lockyer
Bill Lockyer
William Westwood "Bill" Lockyer is an American politician. He is the current 32nd State Treasurer of California, elected in 2006 and re-elected in 2010. He has also served as California Attorney General and President Pro Tempore of the California State Senate...
is the Treasurer
Treasurer
A treasurer is the person responsible for running the treasury of an organization. The adjective for a treasurer is normally "tresorial". The adjective "treasurial" normally means pertaining to a treasury, rather than the treasurer.-Government:...
of the State of California. There are 480 California cities , 58 California counties about 3,400 Special Districts and School Districts, each with independent fiscal stewardship. Many City Treasurers are elected, and are therefore directly accountable to their constituents; the remainder are appointed either by City Council or City Manager. Finance Directors typically are appointed by the City Manager.
Professional Standards Setting
Certification is a guide for municipal finance directors and treasurers to become valued administrators in local government. CSMFO encourages professional certificationProfessional certification
Professional certification, trade certification, or professional designation, often called simply certification or qualification, is a designation earned by a person to assure qualification to perform a job or task...
for public finance directors and treasurers who meet standards of education, experience and commitment to a code of ethics. CSMFO does not offer its own post-nominal professional certificate since GFOA already administers the Certified Professional Finance Officer (CPFO), CMTA offers the Certified California Municipal Treasurer
Certified California Municipal Treasurer
A Certified California Municipal Treasurer is a post-nominal professional certification awarded by the California Municipal Treasurers Association to California public treasurers who meet standards of education, experience and a stated commitment to a code of ethics...
(CCMT) certification program , and the Association of Government Accountants offers the Certified Government Financial Manager
Certified Government Financial Manager
A Certified Government Financial Manager is a professional certification issued by the Association of Government Accountants . It was created in 1994 to provide a professional standard of financial expertise and ethics in government and a standard by which government financial management...
(CGFM) certification, requiring six hours of testing on Federal, State and Local Government Financial material.
CSMFO Code of Ethics
Members are enjoined to adhere to legal, moral and professional standards of conduct. The following ethical principles govern the conduct of the Municipal members of the California Society of Municipal Finance Officers who shall:1. Demonstrate and be dedicated to the highest ideals of honor and integrity
Integrity
Integrity is a concept of consistency of actions, values, methods, measures, principles, expectations, and outcomes. In ethics, integrity is regarded as the honesty and truthfulness or accuracy of one's actions...
in all public and personal relationships to merit the respect and confidence of the elected officials, other public officials, employees and the public
Public
In public relations and communication science, publics are groups of individuals, and the public is the totality of such groupings. This is a different concept to the sociological concept of the Öffentlichkeit or public sphere. The concept of a public has also been defined in political science,...
.
2. Recognize and be accountable for their responsibilities as public officials; be sensitive and responsive to the rights
Rights
Rights are legal, social, or ethical principles of freedom or entitlement; that is, rights are the fundamental normative rules about what is allowed of people or owed to people, according to some legal system, social convention, or ethical theory...
of the public
Public
In public relations and communication science, publics are groups of individuals, and the public is the totality of such groupings. This is a different concept to the sociological concept of the Öffentlichkeit or public sphere. The concept of a public has also been defined in political science,...
.
3. Exercise prudence and integrity in the management of funds in their custody and in all financial
FINANCIAL
FINANCIAL is the weekly English-language newspaper with offices in Tbilisi, Georgia and Kiev, Ukraine. Published by Intelligence Group LLC, FINANCIAL is focused on opinion leaders and top business decision-makers; It's about world’s largest companies, investing, careers, and small business. It is...
transactions
Financial transaction
A financial transaction is an event or condition under the contract between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals.-History:...
.
4. Maintain their own competence
Skill
A skill is the learned capacity to carry out pre-determined results often with the minimum outlay of time, energy, or both. Skills can often be divided into domain-general and domain-specific skills...
, enhance the competence of their colleagues and staff members, and provide encouragement to those seeking to enter the field of government finance.
5. Seek excellence in the public service
Public services
Public services is a term usually used to mean services provided by government to its citizens, either directly or by financing private provision of services. The term is associated with a social consensus that certain services should be available to all, regardless of income...
; be well informed and well prepared to exercise public authority.
6. Demonstrate professional integrity
Integrity
Integrity is a concept of consistency of actions, values, methods, measures, principles, expectations, and outcomes. In ethics, integrity is regarded as the honesty and truthfulness or accuracy of one's actions...
in the issuance and management of information
Information
Information in its most restricted technical sense is a message or collection of messages that consists of an ordered sequence of symbols, or it is the meaning that can be interpreted from such a message or collection of messages. Information can be recorded or transmitted. It can be recorded as...
; prepare and present statements and financial information fairly, in accordance with law
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
and generally accepted practices and guidelines.
7. Respect and protect privileged information
Information
Information in its most restricted technical sense is a message or collection of messages that consists of an ordered sequence of symbols, or it is the meaning that can be interpreted from such a message or collection of messages. Information can be recorded or transmitted. It can be recorded as...
; be sensitive and responsive to inquiries from the public
Public
In public relations and communication science, publics are groups of individuals, and the public is the totality of such groupings. This is a different concept to the sociological concept of the Öffentlichkeit or public sphere. The concept of a public has also been defined in political science,...
and the media
News media
The news media are those elements of the mass media that focus on delivering news to the general public or a target public.These include print media , broadcast news , and more recently the Internet .-Etymology:A medium is a carrier of something...
within the framework of local government
Local government
Local government refers collectively to administrative authorities over areas that are smaller than a state.The term is used to contrast with offices at nation-state level, which are referred to as the central government, national government, or federal government...
policy
Policy
A policy is typically described as a principle or rule to guide decisions and achieve rational outcome. The term is not normally used to denote what is actually done, this is normally referred to as either procedure or protocol...
.
8. Act with honor, integrity
Integrity
Integrity is a concept of consistency of actions, values, methods, measures, principles, expectations, and outcomes. In ethics, integrity is regarded as the honesty and truthfulness or accuracy of one's actions...
and virtue
Virtue
Virtue is moral excellence. A virtue is a positive trait or quality subjectively deemed to be morally excellent and thus is valued as a foundation of principle and good moral being....
in all professional relationships; respect the rights of their colleagues and other public officials with whom they work and associate.
9. Handle all matters of personnel within the scope of their authority on the basis of merit so that fairness and impartiality
Impartiality
Impartiality is a principle of justice holding that decisions should be based on objective criteria, rather than on the basis of bias, prejudice, or preferring the benefit to one person over another for improper reasons.-Philosophical concepts of impartiality:According to Bernard Gert, "A is...
govern their decisions.
10. Seek no favor or accept any personal gain which would influence, or appear to influence, the conduct of their official duties.
11. Protect the public trust
Public trust
The concept of the public trust relates back to the origins of democratic government and its seminal idea that within the public lies the true power and future of a society; therefore, whatever trust the public places in its officials must be respected....
, avoid even the appearance of impropriety, and safeguard the integrity
Integrity
Integrity is a concept of consistency of actions, values, methods, measures, principles, expectations, and outcomes. In ethics, integrity is regarded as the honesty and truthfulness or accuracy of one's actions...
of the government
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
they serve.
Training and Education in California Finance and Treasury
CSMFO has technical and professional committees that deal with financial issues facing government and the public. CSMFO also provides web-based technical support resources, educational material, conferences and technical publications for its members. CSMFO's annual statewide conferences provide an array of education across many topics and alternate annually between various northern and southern cities. By assembling leadership from a broad representation of government agencies and also bringing in subject matter experts in various disciplines, the collective expertise and professionalism of financial managers and policymakers is enhanced and improved.Statewide Financial Leadership
CSMFO is recognized as a leading source of expert knowledge in public financial management by exercising leadership in research, recommended practice and policy development, and information dissemination. Nationwide recognition is furthered through a continued association with the nationwide Government Finance Officers Association (GFOA). Statewide recognition is furthered through a thorough participation of members drawn from many cities, counties and special districts.Standing Committees
Financial Leadership is furthered by engaging in efforts to assist statewide finance officers to develop the skills and capabilities necessary to enable them to become organizational leaders as well as technical experts.
| Committee | Chair |
|---|---|
| Administration | Robert Burns, City of Chino |
| Annual Seminar | Janet Salvetti, City of Stockton |
| Budget and Management Reportng | Pamela Arends-King, City of Santa Ana |
| Career Development | Dennis Danner, City of Newport Beach |
| Fiscal Policy | Josh Betta, City of Glendora |
| Membership | Steve Chapman, City of Moreno Valley |
| Professional and Technical Standards | Jesse Takahashi, City of Campbell |
| Technology | John Adams, City of Thousand Oaks |
Resources
The CSMFO website is a well-known statewide resource for a variety of documents relevant to local government, the most obvious benefit of which is to avoid inefficient duplication of effort and to make more knowledge available statewide to everyone. CSMFO's library of resources includes sample RFPs, job descriptions, and a variety of documents and information relevant to local government. Categories of posted information include Accounting/Financial Reporting, Budgeting, Consultants, Investments/Cash Management, Job Descriptions, Payroll, Human Resources, Policies & Procedures, Revenue Management, RFPs/RFQs, and Technology.CSMFO facilitates interagency communication for the purposes of sharing information and best practices. Cooperate with and complement the services provided by other organizations to increase the effectiveness of all.
Like GFOA nationwide, CSMFO sponsors award programs designed to encourage good financial reporting in California, for financial documents including the Comprehensive annual financial report
Comprehensive annual financial report
A Comprehensive Annual Financial Report is a set of government financial statements comprising the financial report of a state, municipal or other governmental entity that complies with the accounting requirements—generally accepted accounting principles —promulgated by the Financial Accounting...
, or CAFR, and the annual budget
Budget
A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending. A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods...
.
CSMFO provides technology information and analytical tools to help governments identify and apply appropriate, economical technologies to support efficient resource allocation, quality services, and effective decision making and to promote citizen involvement.
See also
- Association of Government Accountants (AGA)Association of Government AccountantsThe Association of Government Accountants was founded on September 14, 1950. AGA serves Federal, State and local government accounting professionals by providing education, encouraging professional development, providing Government Accounting certification, and supporting standards and research to...
- American Institute of Certified Public Accountants (AICPA)American Institute of Certified Public AccountantsFounded in 1887, the American Institute of Certified Public Accountants is the national professional organization of Certified Public Accountants in the United States, with more than 370,000 CPA members in 128 countries in business and industry, public practice, government, education, student...
Private Sector Accounting - California Municipal Treasurers Association (CMTA)California Municipal Treasurers AssociationCalifornia Municipal Treasurers Association is the professional society of active public treasurers of California counties, cities, and special districts. It sets ethical standards for the treasury profession in state and local government in California....
- Certified California Municipal Treasurer (CCMT)Certified California Municipal TreasurerA Certified California Municipal Treasurer is a post-nominal professional certification awarded by the California Municipal Treasurers Association to California public treasurers who meet standards of education, experience and a stated commitment to a code of ethics...
- Certified Government Financial Manager (CGFM)Certified Government Financial ManagerA Certified Government Financial Manager is a professional certification issued by the Association of Government Accountants . It was created in 1994 to provide a professional standard of financial expertise and ethics in government and a standard by which government financial management...
- Certified Public Accountant (CPA)Certified Public AccountantCertified Public Accountant is the statutory title of qualified accountants in the United States who have passed the Uniform Certified Public Accountant Examination and have met additional state education and experience requirements for certification as a CPA...
- Government Finance Officers Association (GFOA)
- Government Finance Officers Association of Texas (GFOAT)Government Finance Officers Association of TexasThe Government Finance Officers Association of Texas is a professional association of state, county, and local government finance officers in Texas. The Government Finance Officers Association of Texas is the statewide organization serving all Texas municipal finance professionals, an affiliate...
- List of post-nominal letters
- Professional certificationProfessional certificationProfessional certification, trade certification, or professional designation, often called simply certification or qualification, is a designation earned by a person to assure qualification to perform a job or task...