Money Matters - April 18, 2016

Making Financial Officer Turnover Less Taxing

Turnover of elected and appointed financial officers is an expected feature of local government. 

Many of these officials enter public service after — or in the midst of — a successful career in the private sector. After a tenure representing the people, many financial officers return to business; others run for another public office; and some retire. Of course, term limits can play a role in elevating turnover as well. 

Regardless of the reason for the exit, it’s important to keep disruption at a minimum. A handful of actions by the chief elected official or the current office holder can go a long way towards preparing for a smooth transition. 

Determine the experience gaps. Many elected and appointed financial positions do not require a minimum aptitude in financial management. As a result, the job title of incoming personnel may not reflect the development of that individual’s skill set. 

Do some background research on the new officer based on personal conversations or her resume to craft an awareness of particular strengths and weaknesses in budget construction, investment management and risk management. 

Alert the incoming officer to training resources. Fashion your advice based on the likely experience gaps. Keep in mind that the educational opportunities, which are well known to you, may be unheard of to the new official. Furthermore, sometimes the sheer volume of possible instruction can prove overwhelming. 

Your input on which materials are most relevant to the new role can save time and improve the functionality of the department after your departure. Of course, state law may mandate some training. But in short, do not presume knowledge of these distinctions by your replacement. 

Brief the incoming officer on peer organizations in your state, particularly those consisting of county treasurers and financial officers. The ability to network and learn from these groups of peers can provide your replacement much-appreciated camaraderie. Perhaps more importantly, this network can help a relatively new officer avoid costly financial pitfalls. 

Ensure that the new officer has access to and is aware of the requisite technology to accomplish her tasks. Budgeting processes, data gathering, revenue collection, payment functions and investment management have become technology-intensive. With lean staffing, neglecting to use all of the financial technology at one’s disposal can create needless financial snafus. 

Fortunately, many of the requisite tools are either free or low cost. In particular, fixed income securities quotes and data are available at no cost through      NACo’s partner eConnectDirect.

Recognize the efforts of new financial officers. Attempting to implement the budget decisions of elected officials can be a thankless job. In fact, community frustration over the choices of other officials is often misdirected towards the financial officers. 

Privately acknowledging these challenges and providing public praise for a job well done improves the relationship between the legislative and administrative teams, and it can also reduce turnover. 

These steps can ensure that when turnover affects your county financial team, the negative impacts will be minimized. In fact, on-boarding of new financial officers can actually be made enjoyable for the incoming officer and profitable for the county.