The Federal Financial Management Reform Act of 1987
Gao ID: T-AFMD-87-18 July 23, 1987GAO discussed proposed legislation to improve federal financial management. GAO noted that the proposed legislation would: (1) establish a chief federal financial officer within the Department of the Treasury; (2) establish a central financial management office; (3) require the chief financial officer to submit a long-range financial management plan; and (4) provide a legislative mandate for independent or GAO audits of federal agency financial statements. GAO believes that: (1) financial management improvements are cost-beneficial and necessary in times of budget austerity; and (2) the central financial management office should be placed within the Treasury, rather than the Office of Management and Budget (OMB), since OMB has traditionally emphasized budgetary concerns over management concerns.