The Value Added by Professional Certification of Municipal Finance Officers

• Author: David H. Folz,Chris Shults
• DOI: 10.1177/0160323X18789535
• Date: 01 June 2018
• Published date: 01 June 2018
• Subject Matter: General Interests

General Interest
State and Local Government Review
2018, Vol. 50(2) 85-97
The Value Added by Professional ª The Author(s) 2018
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Certification of Municipal
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DOI: 10.1177/0160323X18789535
Finance Officers
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David H. Folz1 and Chris Shults1
Abstract
Many academics and practitioners value professional training and certification programs as impor-
tant ways to improve management practice and organizational performance. However, these pro-
grams often are among the first cutback targets in times of fiscal stress. Evidence that documents the
actual impacts of specialized training and certification on public organizational performance is sparse.
This longitudinal panel study examines the effects of a state-mandated Certified Municipal Finance
Officer program on cities’ financial management performance and finds that the program had a
statistically significant independent impact on the observed reduction in the number of annual
outside audit findings. The program’s impact on improved financial management performance
underscores the need for scholars to evaluate similar programs, the results from which may help to
alter public officials’ cutback calculus and restore public confidence in the public service.
Keywords
training and certification, financial management, performance, local government, state mandates
For those who work in or teach public adminis-
might help to restore trust and confidence in
tration, the merits of having a highly trained
government and promote broader recognition
public workforce populated by professionals
of the merits of retaining a highly trained corps
who understand their fiduciary responsibilities
of professionals? Performance information the-
are obvious. While the benefits of professional
ory suggests that there is great unexploited
training and certification regimes are clear to
potential in documenting and communicating
most practitioners and academics, they are
to stakeholders the findings from credible eva-
much less apparent to some elected officials
luations of government investments in training
and citizens. The consequences of this diver-
and certification programs for public-sector
gence are abundant and frequently translate
into reductions in or elimination of training and
professional development budgets especially
1 Department of Political Science, University of Tennessee,
during times of fiscal stress.
Knoxville, TN, USA
Bridging this perceptual gulf is especially
challenging in an era when popular trust in gov-
Corresponding Author:
David H. Folz, Department of Political Science, University
ernment and respect for those who toil in its
of Tennessee, 1001 McCLung Tower, Knoxville, TN 37996,
trenches are at historic lows (Pew Research
USA.
Center for the People and the Press 2017). What
Email: dfolz@utk.edu

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86
State and Local Government Review 50(2)
professionals (James and Moseley 2014). Evi-
would think that one solution would be providing
dence from carefully designed outcome evalua-
the legislature with clear evidence that the train-
tions of professional training and certification
ing has real value . . . . Unfortunately . . . we
programs may help to alter perceptions among
haven’t done the research to make state legisla-
both elected officials and citizens about the
tures hesitate to reduce training.
value of these investments for improving orga-
nizational performance (James 2011).
Specialized training can enhance the techni-
Scholars have long recognized the need for
cal competency of public managers and should
and inherent value of producing systematic
result in improved organizational performance.
evaluations of professional development and
That assertion is the central focus of the organi-
specialized certification programs (Mosher
zational capacity literature, particularly the
1968; Hays and Duke 1996; Ammons and
stream that views capacity as organizational
Newall 1989; Jones 1985; Clarke and Bland
ability to perform well on key success factors
1998; Hildreth 1998; McDonald 2010). Brint-
(Bryson 2004; Bryson, Ackermann, and Eden
nall (1998, 4) called for “practical ways to
2007; Wolf and Bryan 2009; Ingraham, Joyce,
improve evidence of quality in management,
and Donahue 2003; Andrews and Boyne
and to advertise it” as a strategy to help enhance
2010; Seidle, Fernandez, and Perry 2016). Sei-
“public trust in government and respect for its
dle, Fernandez, and Perry (2016), for instance,
servants.” During that era, Conant (1993, 173)
propose a general model of training and devel-
described the lack of research on the connec-
opmental intervention in which knowledge and
tion between management training and perfor-
self-awareness coupled with coaching, mentor-
mance results as a “dearth of systematic,
ing, classroom training, and feedback comprise
empirically based efforts to examine human
important causal mechanisms to enable a train-
capital investment.”
ing regime to enhance managerial competency
Unfortunately, little has changed in subse-
that in turn should improve organizational per-
quent decades. While scholars in education and
formance. Yet these authors observe that
public health investigated the benefits of some
“scholars have rarely explored whether [emp.
credential programs for professionals in those
added] leadership training and development
fields, few studies in public administration,
programs are effective” (Seidle, Fernandez, and
beyond the occasional case study or analysis
Perry 2016, 603–4).
of participant surveys, examined the impacts
Even the sizable literature on the presumed
of management training and certification pro-
performance benefits of professional managers
grams on valued organizational outcomes
and reformed government has yielded uneven
(Owens 2006; Bryson, Ackermann, and Eden
results (Clingermayer and Feiock 2001; Ha and
2007; Seidle, Fernandez, and Perry 2016). This
Feiock 2012; Folz and Abdelrazek 2009; Krebs
research gap seems to persist despite an abun-
and Pelissero 2010; Svara and Nelson 2008;
dance of models and methods that provide gui-
Newell and Ammons 1987). Carr (2015, 686)
dance for how to evaluate the potential impacts
synthesized relevant empirical studies and con-
of professional training and certification pro-
cluded that the evidence for improved perfor-
grams (Kirkpatrick and Kirkpatrick 2006; Phil-
mance of the council–manager form of
lips and Stone 2002; Ban and Faerman 1990).
government “is not as strong as many advocates
In summarizing the contemporary state of
likely expect . . . .” Consequently, evidence in
research on training and performance, Barrett
the discipline remains sparse to support the
and Greene (2015, 56) concluded that:
connection between training, improved man-
agerial competence, and better organizational
In human resources, it’s an article of faith that
performance.
training is valuable . . . [but] . . . there’s little ques-
The purpose of this study is to assess
tion that training budgets are one step from the
whether a state-mandated Certified Municipal
guillotine when states are under pressure. . . . You
Finance Officer (CMFO) training program for

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Folz and Shults
87
municipal finance officers had any impact on
(MTAS), a unit of the University of Tennessee
indicators of municipal financial management
Institute for Public Service, developed and
performance. We examine the panel data for
offered the curriculum for CMFO training pro-
sixty Tennessee cities over an eight-year period
gram. The curriculum consisted of eleven ses-
to determine whether significant differences
sions
that
covered
the
relevant
law,
occur in the mean number and severity of audit
procedures, and responsibilities related to the
findings recorded by outside independent audi-
fundamental aspects of municipal budgeting,
tors before and after municipal finance officers
accounting, financial management, and com-
completed CMFO training.
prehension of the information necessary to
Evidence that specialized training of munic-
understand and successfully perform the tasks
ipal finance officers helps to improve financial
and responsibilities of a municipal finance offi-
management performance will support theore-
cer. An MTAS personnel with expertise in
tical frameworks that link training, enhanced
municipal finance and accounting served as
management capacity, and improved organiza-
instructors for each eight-hour class held
tional outcomes. Credible evidence that profes-
monthly in different regions of the state over
sional certification of city finance officers leads
an eleven-month period. At the end of each
to better financial management may also have a
class session, participants tackled a closed
positive impact on citizen perceptions about the
book, fifty-question multiple-choice exam.
value of investing in similar training programs.
Correct answers to at least 74 percent of the
When replicated across time and organizations,
questions constituted a passing score. Partici-
such findings may enhance citizen satisfaction
pants received the CMFO credential only after
with and trust in government and the profes-
passing all eleven exams.
sionals who manage and provide public
State officials perceived the CMFO program
services.
as an effective means to embed sound munici-
pal financial practices and improve public
The Municipal Finance Officer
financial management (Durham 2015). A sur-
vey of program participants sponsored by the
Certification and Education Act
Tennessee...