Financial Management: Agencies Face Many Challenges in Meeting the Goals of the Federal Financial Management Improvement Act

Testimony issued by the General Accounting Office with an abstract that begins "Pursuant to a congressional request, GAO discussed the challenges most of the major federal department agencies face in meeting the basic expectations laid out in the Federal Financial Management Improvement Act of 1996 (FFMIA), focusing on: (1) problems with agencies' systems that prevent them from meeting the expectations of FFMIA; (2) how agencies are able to receive a "clean" audit opinion on their financial statements even though their financial systems do not comply with FFMIA's requirements; and (3) key elements in addressing these systems problems, including the importance of sound information technology investment and control processes.