Improving Federal Financial Management Act
Improving Federal Financial Management Act
Plain Language Summary
# Improving Federal Financial Management Act (S 75) **What It Would Do** This bill aims to modernize how the federal government manages its finances. If passed, it would require the Office of Management and Budget (OMB) to create and regularly update a four-year plan for improving financial systems across all federal agencies. The bill also expands the duties of Chief Financial Officers (CFOs) at each agency, requiring them to implement these improvements and oversee financial management upgrades within their organizations. **Key Provisions** The bill mandates that OMB submit detailed plans to Congress every four years, with annual progress reports, focusing on three main areas: modernizing outdated financial systems, building a stronger financial management workforce, and improving how agencies track and report their spending and performance.
Individual agency CFOs would be given new responsibilities to carry out these improvements at their organizations and ensure compliance with the government-wide strategy. **Who It Affects & Current Status** This bill would affect federal agencies and their financial operations, potentially leading to modernization of government computer systems and financial tracking. It's currently in committee and has not yet been voted on by Congress. The bill was introduced by Senator James Lankford (R-OK).
CRS Official Summary
Improving Federal Financial Management Act This bill requires the Office of Management and Budget (OMB) to take certain actions to improve financial management systems across the federal government and expands the responsibilities of federal agency Chief Financial Officers (CFOs). The bill requires OMB to submit a four-year governmentwide financial management plan to Congress within six months of enactment and thereafter with the budget submitted in the first full fiscal year following the start of a presidential term. Such plans must address certain topics, including strategies for (1) improving financial management systems; (2) strengthening the financial management workforce; and (3) reporting performance and cost information. OMB must annually submit related status reports to Congress and the Government Accountability Office. Each agency CFO is assigned new responsibilities, includingpreparing the agency plan to implement OMB's governmentwide financial management plan;overseeing and providing leadership in the areas of budget formulation and execution, planning and performance, risk management, internal controls, financial systems, accounting, and other areas designated by OMB;coordinating with designated agency personnel on the strategic planning, performance measurement and reporting, and risk management functions of the agency;managing the formulation and financial execution of the agency budget;linking performance and cost information; andpreparing annual reports on progress in implementing the governmentwide financial management plan and transmitting such reports to the agency head, OMB, and Congress.The bill establishes new requirements for audits of agency accounts, such as having auditors evaluate the design of the agency's internal controls over financial reporting.
Latest Action
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.