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Improving Federal Financial Management Act
2/11/2025, 5:53 AM
Summary of Bill S 75
One of the key provisions of the bill is the requirement for federal agencies to implement standardized financial management systems. This will help streamline financial reporting processes and make it easier to track and monitor government spending. The bill also calls for the establishment of a governmentwide financial management plan to guide agencies in their financial management practices.
Additionally, the bill includes measures to strengthen internal controls and improve financial oversight within federal agencies. This will help prevent fraud, waste, and abuse of taxpayer dollars, and ensure that government funds are being used efficiently and effectively. Overall, Bill 119 s 75 aims to modernize and improve the government's financial management practices to ensure greater accountability and transparency in how taxpayer dollars are being spent.
Congressional Summary of S 75
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, including
- preparing 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; and
- preparing 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.
