The Value Added by Professional Certification of Municipal Finance Officers

Abstract

Many academics and practitioners value professional training and certification programs as important ways to improve management practice and organizational performance. However, these programs 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.