Chief Financial Officers Act of 1990
Encyclopedia
The Chief Financial Officer and Federal Financial Reform Act of 1990, or CFO Act, signed into law by President George H.W. Bush on November 15, 1990, is a United States federal law intended to improve the government's financial management
, outlining standards of financial performance and disclosure. Among other measures, the Office of Management and Budget (OMB) was given greater authority over federal financial management. For each of 24 federal departments and agencies, the position of chief financial officer was created. In accordance with the CFO Act, each agency or department vests its financial management functions in its chief financial officer.
The Act created a new position in the OMB, the Deputy Director for Management, who is the government's chief financial management official. It also created a new sub-division of the OMB, the Office of Federal Financial Management
(OFFM), to carry out governmentwide financial management responsibilities. The OFFM's chief officer was designated as the newly-created Controller position. Both the Deputy Director for Management and the Controller are appointed by the President with the advice and consent of the Senate.
The Committee on Government Reform oversees the management and infrastructure of the federal agencies, including those covered by the CFO Act.
The CFO Act also established the CFO Council, consisting of the CFOs and Deputy CFOs of the largest federal agencies and senior officials of OMB and Treasury.
For a discussion of the history and motivation underlying the CFO Act - with particular emphasis on the difficulties the U.S. Department of Defense has experienced attempting to comply with the financial-statement reporting requirements of the Act - see "Financial Accountability at the DOD: Reviewing the Bidding," published in the July 2009 issue of the Defense Acquisition Review Journal.
The original author of the legislation was Joseph J. DioGuardi
, the first certified public accountant elected to Congress, who served in the House of Representatives representing the 20th Congressional district of New York from 1985 to 1989.
Managerial finance
Managerial finance is the branch of finance that concerns itself with the managerial significance of finance techniques. It is focused on assessment rather than technique....
, outlining standards of financial performance and disclosure. Among other measures, the Office of Management and Budget (OMB) was given greater authority over federal financial management. For each of 24 federal departments and agencies, the position of chief financial officer was created. In accordance with the CFO Act, each agency or department vests its financial management functions in its chief financial officer.
The Act created a new position in the OMB, the Deputy Director for Management, who is the government's chief financial management official. It also created a new sub-division of the OMB, the Office of Federal Financial Management
Office of Federal Financial Management
The Office of Federal Financial Management is a sub-division the United States Office of Management and Budget.OFFM responsibilities include implementing the financial management improvement priorities of the President, establishing government-wide financial management policies of executive...
(OFFM), to carry out governmentwide financial management responsibilities. The OFFM's chief officer was designated as the newly-created Controller position. Both the Deputy Director for Management and the Controller are appointed by the President with the advice and consent of the Senate.
The Committee on Government Reform oversees the management and infrastructure of the federal agencies, including those covered by the CFO Act.
The CFO Act also established the CFO Council, consisting of the CFOs and Deputy CFOs of the largest federal agencies and senior officials of OMB and Treasury.
For a discussion of the history and motivation underlying the CFO Act - with particular emphasis on the difficulties the U.S. Department of Defense has experienced attempting to comply with the financial-statement reporting requirements of the Act - see "Financial Accountability at the DOD: Reviewing the Bidding," published in the July 2009 issue of the Defense Acquisition Review Journal.
The original author of the legislation was Joseph J. DioGuardi
Joseph J. DioGuardi
Joseph J. DioGuardi is a certified public accountant and a Republican politician. DioGuardi served in the House of Representatives representing the 20th Congressional district of New York from 1985 to 1989. He was also the Republican nominee for U.S...
, the first certified public accountant elected to Congress, who served in the House of Representatives representing the 20th Congressional district of New York from 1985 to 1989.
See also
- Federal Accounting Standards Advisory Board (FASAB)Federal Accounting Standards Advisory BoardThe Federal Accounting Standards Advisory Board is a United States federal advisory committee whose mission is to develop generally accepted accounting principles for federal financial reporting entities....
External links
- Guide to the CFO Act (U.S. General Accounting Office)
- Text of the CFO Act of 1990
- Where Is The Money FAQ: Who's In Charge