# Plain Language Summary: Improving Federal Financial Management Act

## What This Bill Does

This bill strengthens the financial management responsibilities of Chief Financial Officers (CFOs) at federal agencies. It requires CFOs to create detailed 4-year financial management plans that align with government-wide standards, establish performance metrics to measure financial health, and report their progress publicly. The bill also expands what CFOs must oversee—adding requirements to integrate performance data with cost information and prepare annual financial statements using standard accounting principles.

## Who Is Affected

**Primary Impact:**
- **Federal agency CFOs** will have expanded duties and must submit more detailed plans and reports
- **Federal agencies** will need to implement new financial management standards and track performance metrics
- **Congress and the public** will have access to more transparent financial reporting from federal agencies

**Secondary Impact:**
- Taxpayers benefit from improved oversight of how federal money is spent
- The Government Accountability Office (Comptroller General) gains additional reporting requirements to review

## Key Changes

- CFOs must create agency-specific financial management plans within 90 days of receiving government-wide guidance
- New requirement to link performance outcomes with spending data (showing what results the government got for its money)
- Financial reports must now be shared publicly and with Congress, not just internally
- CFOs must track and report on specific financial management metrics to measure agency performance
- Expanded coordination between CFOs, the Office of Management and Budget, Congress, and the Comptroller General

Improving Federal Financial Management Act

Lankford, James

Improving Federal Financial Management Act &nbsp; 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). &nbsp; 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.&nbsp; &nbsp; Each agency CFO is assigned new responsibilities, including<ul><li>preparing the agency plan to implement OMB's governmentwide financial management plan;</li><li>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;</li><li>coordinating with designated agency personnel on the strategic planning, performance measurement and reporting, and risk management functions of the agency;</li><li>managing the formulation and financial execution of the agency budget;</li><li>linking performance and cost information; and</li><li>preparing annual reports on progress in implementing the&nbsp;governmentwide financial management plan and transmitting such reports to the agency head, OMB, and Congress.</li></ul>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.