Leaders encourage participants to complete small monthly tasks which will range from updating and inviting other cohort members via LinkedIn to expand their network, taking a strength finder’s exam, updating and sharing resumes, and completing a capstone project. During the first two sessions, the group has learned a little about one another, covered topics related to self-care, have been introduced to Front Porch by Terri Willoughby, and discussed a bit about CSMFO with a visit from one of our Board Members, Amber Johnson. 

Cohort Members were asked why they chose to participate in this year’s Cohort. Here is what several of them had to say:

Jason Rosado, Finance Manager, City of Carlsbad
“I joined the program because I made a career change to local government. I have a lot of catching up to do, and I would like to network and learn more about the community. The program has been highly regarded by my peers and mentors in the community, so I'm thankful to have been able to join this cohort.” 

Michael O'Brien Administrative Services Director, City of San Dimas
“I joined the Cohort because I want to become more involved in CSMFO. I have attended the conferences for over 10 years now, and I thought it was time I take on a role with the organization. Part of that is networking and getting to know other members and understanding the challenges they are facing.” 

Stephanie (Stevie) Cuff, Sr Management Analyst, City of Moreno Valley
“My interest in the program was to continue my professional development through networking with others in my field, gaining cohort-based learning, and being an active participant in the exchange of ideas and insights.”  

Matthew Adams, Accounting and Revenue Manager, City of Lompoc
“The reason I chose to be a part of Cohort 6 is primarily to continue to build my professional network while being able to learn from others who have done similar things in their organizations. I didn't have much work experience when I joined my current organization, only classroom work and learning. I know that being able to learn from others is invaluable in our careers as well as building a network to help others feel comfortable doing so.” 

Raul Carrillo, Accountant, City of Fowler 
“I chose to be part of Cohort #6 to get new ideas and insights from other people that are in the finance world and to build new connections that face similar day to day challenges that I do.” 

Hogai Zalmai, Senior Accountant, Citrus Heights Water District 
“I decided to be a part of the Cohort because it offers a unique opportunity to enhance my skills and collaborate with like-minded individuals. It is an invaluable experience to be with a group of people who have great ideas and insights in governmental accounting. I am eager to learn and make valuable connections that will support my long-term aspirations.”

Virginia Ortega, Finance Manager, City of La Quinta
“Joining the program offers an opportunity to learn and connect with so many incredibly smart people throughout the state to share ideas and best practices for overcoming the challenges we may encounter. I previously worked in local government, but was away for some time and this seemed like a great way to jump right back in. I look forward to being an active participant and stepping out from behind the desk.” 

Anna Ramirez, Senior Account Clerk, City of Lincoln
“As a relatively young member of the public finance community whose background is primarily in debt issuance, I wanted to better understand the different challenges various types of municipalities face and take advantage of the opportunity to learn from the wisdom of those who have more experience than me.” 

Jennifer Stevenson, Principal Accountant, City of San Jose
“I’m excited to lead this year’s cohort as a way of giving back to my colleagues in CSFMO, I gained so much from participating in Cohort 5 last year and I want the program to continue to thrive. Given the diverse entities represented at CSMFO, it benefits us all to meet, share, and learn from each other’s challenges and successes. The cohort experience gives us important insights that all participants can take back to their entities, and a solid network of resources that we can reach out to when needed.”

Vanessa Ramirez, Accountant, City of Tracy 
“Cohort #5 was such a great experience that I am thankful to be one of the leaders and have such a great team of advisors. The Cohort has been a great way to get introduced to CSMFO and all it has to offer, all while getting to meet a great group of people from Cohorts past and present. My hope is for new and experienced members alike to continue to share, learn, and grow from one another while building a network that they can rely on for years to come!” 

For more information about the CSMFO Cohort Program, visit their webpage at https://csmfo.org/page/cohorts. 

2024 Cohort Program Leaders 
Elizabeth Garcia, CPA MBA   Administrative Services Manager, Marin/Sonoma Mosquito & Vector Control District
Jennifer Stevenson, Principal Accountant, City of San Jose
Vanessa Ramirez, Accountant, City of Tracy

2024 Cohort Program Advisors 
Amanda McGarr, Budget and Treasury Manager, City of Chico 

The CPFO Program for GFOA members is a broad educational program designed to verify knowledge in government finance disciplines. To earn the CPFO designation, candidates must pass a series of seven examinations covering the major public finance disciplines. 

Examination Areas:

The scholarship will cover the $1,200 fee for two years of participation in the CPFO program, which includes ten exam attempts and access to a CPFO Exam Prep product with over twenty recorded seminars. A CPFO scholarship recipient who does not finish the program within two years will need to pay $600 per year at their own expense to continue the program until they pass all of the exams. CSMFO and GFOA are not responsible for continued costs to participate. Candidates are allowed a maximum of five years to complete the program. 

Once earned, the CPFO designation is maintained by paying an annual membership fee and participating in fifteen hours of continuing professional education and three GFOA Engagement Credits each year.  More information about the CPFO Program can be found at GFOA.org/CPFO.

“As an accountant looking forward to future promotional opportunities, I found the CPFO program helpful to me in building my knowledge in other local government finance disciplines, such as purchasing and risk management, in which I had previously had less exposure. I found the GFOA reading materials easy to read and the exams to align well with the recommended reading material. I recommend the CPFO program to CSMFO/GFOA members looking to broaden their knowledge base and earn a certification valued in our profession.”

- Dennis Kauffman, City of Roseville

“I wanted to become a CPFO so I could broaden my knowledge in Finance. It started as a pursuit to learn more and grow in the field but during the process I received a promotion to Finance Director and then it became about doing all I could to better serve my agency and community.  In addition, the CPFO program is more than just a certification, you are gaining invaluable skills such as specialized knowledge, problem solving, time management, adaptability, and networking. The resources provided within the program will help you in your personal life as well as your career.”

- Jennifer Ustation, City of Beaumont

“I am grateful to have been selected by CSMFO as a 2022 CPFO Scholarship recipient. I started the program as a relatively new Finance Director, and it has been a great way to expand my public finance knowledge, particularly in areas where I had less on the job experience. The depth and variety of training materials provided is excellent, and I also enjoy learning from and connecting with others in the program through the GFOA Candidates Forum. I am still currently enrolled and look forward to earning that CPFO designation in the very near future!”

- Jennifer Becker, City of Burbank

Scholarship Process

To be considered for the scholarship, applicants must be an active member of both CSMFO and GFOA with two years local government experience and submit an application at the following link: CPFO Scholarship Application

The deadline to submit applications is September 6, 2024.

Award of scholarship is based on one’s ability to meet the requirements. All confirmed applicants will then be entered into a random drawing for final selection. For the four recipients of the scholarship, CSMFO would gain value from your experience if you would share your experience with the CPFO program through a co-written article for CSMFO News.

Should you have any questions on the program, please contact Dennis Kauffman at dkauffman@roseville.ca.us or Margaret Moggia at margaretmoggia@gmail.com. 

Why Policies Matter
Government agencies are subject to a variety of rules and regulations stemming from state law, local charter or code, and ordinances or resolutions adopted by the governing body. Financial policies provide a framework within which to ensure effective financial management and to provide continuity between administrations. As staff turnover occurs or elected officials change, the policy framework provides consistency and a roadmap to effective financial management. What if a new governing body wishes to spend into budget reserves? A well-constructed budget reserves policy will make this more challenging without public discussion. What if a new chief executive wishes to cut corners during procurements? A comprehensive procurement policy will prevent this from occurring without deliberate action of the governing body.  

Without a robust and current policy framework in place, there is an increased risk of critical tasks being overlooked, compliance failures with grant programs, state laws, or local charter or ordinance requirements, and/or misalignment of financial operations with the overall mission of the organization.  When things go wrong, the shortcomings of policy can become clear. The likelihood of this occurring is greatly diminished with proper attention to policy

Policy Framework and Hierarchy
A comprehensive policy library should be stratified into policies that are appropriate for approval by the governing body, policies of an administrative nature that are best updated without involving the governing body, and procedures outlining the execution of these policies rather than the content. The governing body should be asked to weigh in on the critical items that either merit their direction (e.g., when do they want to approve purchases or amendments to the budget) or for which staff would be uncomfortable making a decision (e.g., when to waive competitive bidding or when to write off a large receivable). The graphic below illustrates this hierarchy:

 

A good example is of policies and procedures governing fixed assets. The governing body may want to weigh in on the process for disposing of surplus assets or the appropriate replacement schedule for certain classes of assets. An administrative policy expanding on this direction might discuss specific dollar amounts that are appropriate for capitalization, further guidelines for determining assets appropriate for disposal, and approval guidelines for asset replacement. A related administrative procedure might discuss the actual processes for asset inventories and asset disposals, with appropriate forms or software instructions attached.  

The important thing to remember is that consistency matters. Determine what content is appropriate for each level in the hierarchy and strive for consistency across the different categories of policies and procedures to the extent practicable.  

Developing or Expanding a Policy Library
Whether you are starting a new policy library or reviewing your existing one to make sure that it is comprehensive, there are a few key steps to take during this process. First, ensure that the necessary categories of policy are included. Examples of these include budget administration, procurement, accounting operations, risk management, debt administration, investments, and other appropriate areas. The Government Finance Officers Association (GFOA) provides some helpful guidance in this area.  Peer jurisdictions and relevant consultants, such as your municipal advisor or investment advisor can also provide sample policies as a starting point.  There is no need to reinvent the wheel in your efforts but remember that every agency is different and so too should be the nuances of their policy choices.  

Once you know what lies ahead to complete your policy library, take measured steps to see it through to completion. Do not bite off too much initially – start with the critical policies and then fill in the gaps as time allows until you are satisfied with the content of your library. If your department staffing permits, consider delegating policy categories to staff for assistance that can then help with future updates.

Keeping Your Library Current
It is not enough to just have a solid policy library in place; you have to monitor and update it regularly. External requirements, policy goals of the governing body, and internal processes and practices change over time. Rather than trying to remember which policies and procedures are impacted by these changes, a regular schedule for updates can be helpful to initiate detailed review and identify any required revisions. This can be part of an overall strategy for cataloging and tracking policy updates. 

 

Consider:

With these practices in place, your policy library is much more likely to be meaningful, current, and comprehensive, and updates will be a regular part of your routine.  

Please join Scott and retired Finance Director and public finance adjunct professor David Cain for an upcoming CSMFO Webinar – Developing an Effective Financial Management Framework: How Fiscal Policies and Best Practices Can Ensure Your Success – on Thursday, August 15, 2024, at 10:00 AM to learn more about this important topic.

Scott Catlett is a Director in the Government Advisory Services Department at Eide Bailly LLP, where he assists state and local government clients throughout the United States with financial management and budgeting best practice implementation, complex accounting and financial reporting challenges, organizational assessments, and financial policy development. Prior to joining Eide Bailly, Scott worked directly for California cities for 17 years, after serving as a consultant to state and local governments earlier in his career. During his government service, Scott was the Assistant Finance Director for Riverside and the Finance Director for Yorba Linda and then Newport Beach.

Scott holds a bachelor’s degree in finance from Tulane University in New Orleans and a master’s degree in public administration from California State University, San Bernardino (CSUSB). Scott has taught graduate courses in public financial management and public budgeting at CSUSB since 2014 and is an instructor for the CSMFO Financial Management and Analysis core course.  He has been a volunteer leader for CSMFO for 15 years, serving successively as a Chapter Chair, Committee Chair, and elected statewide Board Member. In 2020, he was honored to be elected as the 2022 CSMFO President. He now serves as a Senior Advisor to the CSMFO Commercial Partner Committee.
 

A large part of the weight of the responsibility of being a Finance Director is that the one commonality across the diverse set of services that your agency provides is that they all require funding to operate. As such, when issues arise, they often revolve around money.  When this is the case, the Finance Director is often looked to for solutions, and the most successful Finance Directors are the ones who focus on getting problems solved. Those who lean on saying things like, “That’s not in the budget” or “We can’t afford that” are likely going to be cut out of the conversation over time, as City Managers/General Managers and your colleagues at the department head level are going to find a way with or without your input.

The best way not to lose your seat at the table is to be someone who can find creative solutions, even in the most difficult of budget times. Based on personal experience, consider the following:

When you focus on finding solutions, you are making yourself a valuable resource to your City Manager/General Manager, and you are also helping to ensure the solution is the best for the agency financially, which is a big part of your role. You are also putting your City Manager/General Manager in a position where they can fully evaluate the options, priorities, and tradeoffs and make the best decision for the agency. When your answer is simply ‘no,’ this evaluation is limited and may result in an outcome that is not in the agency’s best interests because you were left out of the rest of the conversation.

There is no question that the job of the Finance Director is a hard one, seemingly harder with each day that passes. The demands on your time and your agency’s resources are unrelenting. When financial needs arise that have not been budgeted, it is tempting to take the short-term approach of just saying no, but that approach can be costly for you and your department in the long term if you are no longer invited to the conversation when these issues arise. The better alternative is to be someone who can find solutions, identify tradeoffs, and help determine the most advantageous path forward.

Drew Corbett is the Principal of DKG Consultants, a firm he started in 2023 upon retirement after nearly 20 years in local government. Drew started his municipal government career in Sunnyvale in 2005 as a budget analyst, and later became the budget manager/assistant finance director.  In 2013, Drew was hired by the city of Menlo Park to be its finance director, and in 2015, Drew left Menlo Park to join the city of San Mateo as its finance director. In 2016, Drew retained his title of finance director while adding the title of assistant city manager. In his new capacity, Drew took on oversight of the information technology department and managed special projects on behalf of the city manager.

 

In late 2018, the San Mateo City Council appointed Drew as the city manager, where he served through June 2023. In this role, Drew led the operations of a full-service city with over 600 full-time equivalent employees and over 105,000 residents. During his time as city manager, Drew also served as the chief administrative officer of the San Mateo Consolidated Fire Department, a Joint Powers Authority that provides fire protection and prevention services to the cities of San Mateo, Belmont, and Foster City.

 

Drew earned his Master of Business Administration from the University of Wisconsin-Madison and has a bachelor’s degree in political science from the University of the South. Prior to entering the public sector, Drew spent two years as an elementary school teacher in Compton, CA as part of the Teach For America program, and five years as a senior analyst/project manager with the Intel Corporation in Santa Clara, CA.

 

Drew has served on the Board of Directors for the California Society of Municipal Finance Directors and was the organization’s President in 2017.

Chapter Meetings/Annual Conference Tips

My first experience interacting with commercial partners was at the CSMFO San Gabriel Valley Chapter luncheon meetings about 25 years ago, when I worked for City of Burbank handling budget and debt. These meetings were great networking opportunities and well attended by both municipal and commercial members. I will admit that seeing a table full of vendors sometimes was a bit daunting, as I saw it as a dreaded sales pitch. However, in most cases, the conversations turned out to be very informative, helping to educate me about a wide variety of topics. One commercial member assisted me with audit contract language to allow for special projects such or agreed upon procedures work, while another helped me learn about the RFP vs RFQ processes when I needed to replace our corporate trust provider.

What if a Chapter or Conference Session is not a topic that is relevant to your current job? Perhaps you tend to pass on a GASB session if you are not on the accounting side, but I encourage you to think bigger and broaden your knowledge. If your agency practices succession planning, or if you are a mid-level professional that wants to become a director, having familiarity with these topics could make a difference in an interview for those looking to level up. I can personally vouch for this, as one of my later positions as a Finance Manager had me writing the ACFR and approving accounting entries.

Even navigating an exhibit hall at the annual conference, I remember thinking so many of these booths are not relevant to me, i.e., my current city is satisfied with our software system, or we will never accept credit cards. But it never hurts to talk to practitioners who can provide you with information and new ideas that you can refer to if there comes a point in the future that you do need to explore these services.

My first Finance Director job was at a small city of only 50 employees, where I needed to roll up my sleeves and work in all aspects of finance. When I walked in the door, I found out the majority of our financial resources were frozen due to a lawsuit, and the city needed to pay employees, PERS, taxes, and vendors. Thankfully, my debt experience in Burbank had me reviewing bond documents and working with a team that had included a financial advisor and bond counsel, and I was able to lean on those relationships to reach out to find out my options.

From this and a future experience, I learned about private placement loans/bonds and developed a one-year cashflow to indicate the ability to repay a short-term loan. On another occasion, the city desired to conduct a transient occupancy tax (TOT) audit for our local motels. Again, I contacted a vendor I met at the CSMFO chapter meeting, and we had lunch to discuss an action plan and potential costs. In both examples, the ability to pick up the phone or email and get the assistance needed was based on having built those relationships in other settings.

Municipal finance professionals are always busy dealing with daily operations and staffing, no matter if you are working at a larger or smaller agency. We often rely on our commercial partners to fill specific roles, whether it be for the annual audit, temporary staffing, debt issuance, investment portfolio management/compliance, or technology needs. From this former Finance Director, it made my job easier relying on subject experts who had continuing education requirements and let me know when I needed to have Council adopt a debt policy to comply with a new state regulation. Now that I’m on the other side of that relationship, I encourage municipal members to build those connections with your commercial partners – you never know when you may need them.

Joan Michaels Aguilar currently works as a Principal at HdL on the sales tax team. Her previous work includes over 41 years in the public sector, most recently as the Deputy City Manager – Administrative Services mentoring staff, managing budget operations, debt administration and technology aspects. Joan began her career in Burbank working in a variety of departments in her 23 years with the city. She has also worked in King City, Azusa and Covina. Joan became active with CSMFO in 1981 while with the City of Burbank. Ms. Aguilar became a CSMFO Northern California Board Member and in 2019, she became CSMFO President. She remains active in CSMFO on the Commercial Partnership, Membership, and Communications Committees and has helped plan several annual conferences. She holds a Master of Public Administration from California State University, Northridge.