Summary: This testimony discusses the steady progress being made to improve financial management in the federal government through implementation of the Chief Financial Officers Act of 1990. This landmark legislation was enacted five years ago, but a great deal more perseverance will be required to sustain the current momentum and successfully overcome decades of serious neglect in fundamental financial management operations and reporting methods. The Comptroller General focuses on the following four implementation challenges: (1) Successfully implementing the expanded requirements for audited financial statements to improve the reliability of data for decision-making and strengthen the efficiency of financial operations and controls. (2) Continuing to build stronger financial management organizations by upgrading skill levels, enhancing training, and ensuring that Chief Financial Officers have all the necessary authority to achieve change. (3) Devising and applying more effective solutions to overcome difficult problems plaguing agencies' financial systems. (4) Designing comprehensive accountability reports to allow more thorough and objective assessments of agencies' performance and financial contributions, as well as to enhance the budget preparation and deliberation process. The Comptroller General also comments on amendments to the Single Audit Act being considered by Congress.
