Financial Management: Improvements Under Way but Serious Financial Systems Problems Persist

A letter report issued by the Government Accountability Office with an abstract that begins "The ability to produce the financial information needed to efficiently and effectively manage the day-today operations of the federal government and provide accountability to taxpayers continues to be a challenge for most federal agencies. To help address this challenge, the Federal Financial Management Improvement Act of 1996 (FFMIA) requires the Chief Financial Officers (CFO) Act agencies to implement and maintain financial management systems that comply substantially with (1) federal financial management systems requirements, (2) federal accounting standards, and (3) the U.S. Government Standard General Ledger at the transaction level. FFMIA also requires GAO to report annually on the implementation of the act.