WASHINGTON - The United States Senate passed bipartisan legislation cosponsored by Senator Maggie Hassan to strengthen federal financial management. The CFO Vision Act of 2020, originally introduced by Senate Budget Committee Chairman Mike Enzi (R-WY) and Senator Mark Warner (D-VA), would update the Chief Financial Officers (CFO) Act of 1990. The law established a financial management leadership structure, provided for long-range planning, and required audited financial statements.
“The bipartisan CFO Vision Act will help modernize federal financial management, and ensure that financial information is consistent and reliable across federal agencies,” said Senator Hassan. “Passing this legislation is an important step to ensure that the federal government is making informed decisions about how to spend taxpayer dollars, and I will continue working with Republicans and Democrats to improve efficiency and promote fiscal responsibility within the federal government.”
The legislation would:
Standardize CFO responsibilities across government by helping to enhance strategic decision-making, and correct inconsistencies;
Provide deputy CFOs with sufficient authority to ensure continuity in agency financial management operations when CFO vacancies occur;
Revise government-wide and agency-level financial management planning requirements by requiring the White House Office of Management and Budget (OMB) to update the government’s financial plan every four years and provide annual status updates. Additionally, the bill would require the government-wide plan to include actions for improving financial management systems, strengthening the federal financial management workforce, and better linking performance and cost information for decision-making;
Develop a broader set of key selected financial management performance-based metrics by requiring OMB to develop a plan to determine the status and progress agencies are making towards achieving cost-effective and efficient government operations. The bill would also require that information be included in the government-wide and agency-level financial management plans and status reports; and
Strengthen internal controls by requiring agency management to identify key financial management information needed for effective financial management and decision making. The bill would also require agencies to annually assess and report on the effectiveness of internal controls over financial reporting and other key financial management information.