The CFO Act gave OMB new authority and responsibility for directing federal financial management, modernizing the government’s financial management systems, and strengthening financial reporting. (GAO. The Chief Financial Officers Act: a Mandate for Federal Financial Management Reform. September 1991) The act also created the new position of Deputy Director for Management at OMB, who is to be the government’s chief official responsible for financial management. While the CFO Act emphasizes improved financial management, it also charges OMB’s Deputy Director for Management with overseeing many of the federal government’s general management functions. These functions include information policy, procurement policy, property management, and productivity improvement.
The CFO Act also establishes a new Office of Federal Financial Management in OMB to carry out these governmentwide financial management responsibilities. To head this office, the act establishes the position of Controller, an individual who is to possess “demonstrated ability and practical experience in accounting, financial management, and financial systems.” This individual will handle day-to-day operations to ensure that financial operations are being properly carried out governmentwide.
The 24 CFO Act Agencies include: