Chief Financial Officers Act of 1990

The purpose of the Chief Financial Officers Act of 1990 (CFO Act of 1990) (Public Law 101-576), as stated in Section 102(b) is to


 * Bring more effective general and financial management practices to the Federal Government through statutory provisions which would establish in the Office of Management and Budget a Deputy Director for Management, establish an Office of Federal Financial Management headed by a Controller, and designate a Chief Financial Officer in each executive department and in each major executive agency in the Federal Government.


 * Provide for improvement, in each agency of the Federal Government, of systems of accounting, financial management, and internal controls to assure the issuance of reliable financial information and to deter fraud, waste, and abuse of Government resources.


 * Provide for the production of complete, reliable, timely, and consistent financial information for use by the executive branch of the Government and the Congress in the financing, management, and evaluation of Federal programs.

According to the September 1991 U.S. General Accounting Office (GAO) Preface to The Chief Financial Officers (CFO) Act of 1990 (Public Law 101-576), the Act "marks the beginning of what promises to be a new era not only in federal management and accountability, but also in efforts to gain financial control of government operations. [Note: Cache file document].


 * "The government has a responsibility to use timely, reliable, and comprehensive financial information when making decisions which have an impact on citizens' lives and livelihood. Despite good intentions and past efforts to improve financial management systems, this is still not done.


 * "The Congress mandated financial management reform by enacting the CFO Act, which was signed into law by President Bush is the most comprehensive and far-reaching financial management improvement legislation since the Budget and Accounting Procedures Act of 1950 was passed over 40 years ago. The CFO Act will lay a foundation for comprehensive reform of federal financial management. The act establishes a leadership structure, provides for long-range planning, requires audited financial statements, and strengthens accountability reporting.


 * "Federal financial managers, auditors, and program managers at all levels of government will be affected as agencies take actions required under the CFO Act to improve financial management systems and information. Therefore, it is essential that the CFO Act's provisions are fully understood.


 * "This booklet will help agency managers and other interested parties (1) become familiar with the CFO Act's principal features, (2)better understand the actions needed to successfully implement the act, and (3) identify the sources for additional information to assist in carrying out the act's provisions."

The Preface was signed by Charles A. Bowsher, Comptroller General of the United States. -

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