Certified Municipal Finance Officer

The Municipal Finance Officer Certification and Education Act of 2007 (TCA 6-56-400 et al.) requires certain municipalities to employ a chief financial officer who is either a Certified Municipal Finance Officer (CMFO) or exempt from the Act’s education requirements as specified in statute.

A municipality with $500,000 or less in gross revenues for all funds, including utilities but excluding one-time, non-recurring grants, and with debt totaling $500,000 or less in the immediately preceding fiscal year may designate a city employee as the individual who has financial oversight over city operations. That employee must earn at least sixteen (16) hours of financial continuing professional education which complies with CMFO guidelines each calendar year. The municipality should designate an employee who has knowledge of day to day operations or hire a CMFO or qualified individual who is exempt from CMFO education and certification.

MTAS, in conjunction with the Comptroller's office, develops the curriculum and provides the training and testing leading to the CMFO designation. The CMFO program consists of an eleven-course sequence designed as a practical resource for Tennessee municipal finance officers. Course guides address a broad range of municipal finance and compliance topics and include references for more detailed guidance. Each course is built around defined learning objectives, and each module exam is aligned to those objectives.

A candidate must be at least 18 years of age and a high school graduate or the equivalent to apply for the CMFO designation. A candidate must complete the online application provided by the Comptroller of the Treasury and agree to abide by the policies and procedures governing the CMFO program. A candidate shall not have been convicted of any felony or any lesser crime involving theft, fraud, or other crimes of dishonesty under the laws of this state, the United States, or any other state or county if the acts involved would have been considered a crime under Tennessee law. The candidate shall not have engaged previously, and shall not engage as a student or graduate, in any conduct reflecting adversely on the candidate's fitness to perform services as a CMFO, as determined by the Comptroller of the Treasury. Each candidate must demonstrate proficiency in the subject matter for each course to receive the designation. A candidate may choose to take the examination instead of attending a class except for the course on government environment, which is mandatory.

To maintain certification, a CMFO, must earn at least sixteen (16) financial continuing professional education (CPE) hours per year. CMFO's are required to maintain documentation of CPE hours obtained for a minimum of three years following each calendar reporting cycle. CMFO's are required to submit detailed information and documentation on CPE hours completed to the Comptroller's Certified Municipal Finance Officer Act System (CMFOAS) by December 31 of each calendar year reporting cycle. CPE hours in excess of sixteen (16) hours are not carried over to the next calendar year.

The following individuals are exempt from the requirements leading to the CMFO designation, but must comply with CPE requirements:

• An individual designated as a certified government finance manager (CGFM) by the Association of Government Accountants.
• An individual designated as a certified public finance officer (CPFO) by the Government Finance Officers Association.
• An individual licensed as a certified public accountant (CPA) by the state board of accountancy and in active status and who has a minimum of five years of primarily governmental experience with at least three of those years in Tennessee.

An individual working as a Municipal Finance Officer with financial oversight who is claiming exemption must establish an account in the Comptroller's CMFOAS, complete the exemption application, and provide proof of an active license each time it is renewed.

When a municipality must replace a CMFO, the person hired must be exempt or must achieve the designation within two (2) years of being hired. If the CMFO or exempted individual leaves employment with the municipality, the municipality has two (2) years from the date of the departing CMFO's last day of employment.

A municipality found by the Comptroller of the Treasury to be in violation of the CMFO requirement may be subject to a reduction of up to 15% of its annual state-distributed sales tax revenue. Amounts withheld will be held in reserve by the Department of Revenue. Upon compliance the funds will be returned to the municipality. T.C.A. §§ 6-56-407, et seq.