Why GAO Did This Study
“Prior to the enactment of the CFO Act, government reports found that agencies lost billions of dollars through fraud, waste, abuse, and mismanagement. These reports painted the picture of a government unable to properly manage its programs, protect its assets, or provide taxpayers with the effective and economical services they expected.”
“The CFO Act was enacted to address these problems—calling for comprehensive federal financial management reform. Among other things, the act established CFO positions, provided for long-range planning, and began the process of auditing federal agency financial statements. The act also called for integrating accounting and financial management systems and systematic performance measurement and cost information.”
“This statement is based on preliminary observations from GAO’s ongoing review of the federal government’s efforts to meet the requirements of the CFO Act. GAO reviewed federal financial management legislation, guidance, and reports. GAO also conducted interviews and a panel discussion with experts in federal financial management, and surveyed federal CFOs, inspectors general, and independent public accountants.”
What GAO Found
“The federal government has made significant strides in improving financial management since enactment of the Chief Financial Officers Act of 1990 (CFO Act). Substantial progress has occurred in areas such as improved internal controls, reliable agency financial statements, and establishment of chief financial officer (CFO) positions. To help ensure that the CFO Act achieves its full potential, there are several opportunities for enhancement.”
- “Standardize CFO and deputy CFO responsibilities across government…”
- “Prepare government-wide and agency-level financial management plans…”
- “Better link performance and cost information for decision-making…”
- “Develop a broader set of key selected financial management performance-based metrics…”
- “Rectify internal control issues in certain areas…”
- “Improve financial management systems…”
- “Strengthen the federal financial management workforce…”
What GAO Recommends
“GAO obtained comments from OMB, the Department of the Treasury, and the Office of Personnel Management and has incorporated their comments as appropriate. As GAO finalizes its work for issuance next year, it will consider feedback on its work in making recommendations related to the opportunities for enhancement, as appropriate.” Read the full 35-page report here.
Source: Federal Financial Management: Substantial Progress Made since the CFO Act of 1990 and Preliminary Observations on Opportunities for Enhancement – October 30, 2019. GAO.
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