Improving Federal Financial Management Act

This bill would require the Office of Management and Budget to develop and submit a four-year governmentwide financial management plan to Congress, with annual status reports on its implementation. The proposal expands the responsibilities of federal agency Chief Financial Officers to include overseeing budget formulation, risk management, and internal controls while coordinating performance and cost reporting. Additionally, the legislation would establish new requirements for auditing agency accounts, including evaluations of internal controls over financial reporting.

This bill primarily affects the Office of Management and Budget (OMB) and Chief Financial Officers (CFOs) at federal agencies, who are assigned new strategic planning and reporting responsibilities. The legislation also impacts the Government Accountability Office and agency auditors, who must meet new requirements for evaluating internal financial controls. Additionally, the federal financial management workforce is affected by new governmentwide strategies intended to strengthen personnel in those roles.

• Governmentwide financial management plan. The Office of Management and Budget must submit a four-year plan to Congress every presidential term addressing strategies for improving financial systems, the workforce, and cost reporting.
• Expanded responsibilities for Chief Financial Officers. Agency CFOs are tasked with overseeing budget formulation and execution, risk management, and internal controls while coordinating strategic planning and performance measurement.
• Agency-level implementation and reporting. Each agency must develop a plan to implement the governmentwide financial strategy and provide annual progress reports to the agency head, the Office of Management and Budget, and Congress.
• Enhanced financial audit requirements. The bill establishes new standards for audits of agency accounts, including a requirement for auditors to evaluate the design of internal controls over financial reporting.

The Office of Management and Budget must submit the initial governmentwide financial management plan within six months of the bill's enactment. Subsequent plans are required to be submitted with the federal budget during the first full fiscal year following the start of a presidential term.

This bill expands the statutory responsibilities of federal agency Chief Financial Officers (CFOs) and modifies requirements for the Office of Management and Budget regarding governmentwide financial management planning and reporting. It also establishes new requirements for the scope of audits conducted on federal agency accounts, specifically regarding the evaluation of internal controls.

The bill aims to improve financial management systems across the federal government by requiring the Office of Management and Budget to develop a comprehensive four-year governmentwide financial management plan. It also seeks to strengthen fiscal oversight by expanding the responsibilities of agency Chief Financial Officers and establishing new requirements for auditing internal financial controls.