Taxpayer Funds Oversight and Accountability Act
Taxpayer Funds Oversight and Accountability Act would overhaul how the federal government manages and reports on financial management. The bill shifts the governmentwide financial management plan from a 5-year horizon to a 4-year horizon and empowers agency Chief Financial Officers (CFOs) to lead broader efforts—covering budget formulation, performance measurement, cost data, internal controls, and financial systems. It requires agency plans to implement the 4-year plan within 90 days of the governmentwide plan’s issuance, to include performance-based metrics, and to be publicly available. The act also imposes annual (and public) financial management status reporting aligned with the federal budget process, expands audit expectations to stress internal controls and cost-information, and strengthens transparency by requiring agencies to publish spending data and track compliance with key financial management laws. In short, the bill aims to raise accountability, link performance to costs, and provide more frequent, public-facing financial management information.
Key Points
- 1Expands the Chief Financial Officer’s duties to lead budget formulation, performance and cost integration, internal controls, financial systems, and other areas designated by OMB; requires CFOs to oversee internal controls and to prepare agency plans implementing the 4-year governmentwide plan.
- 2Replaces the 5-year governmentwide financial management plan with a 4-year plan, developed in consultation with cross-agency councils (CFO, CIO, Data Officer, Acquisition Officers, etc.) and public-facing; requires inclusion of performance-based metrics and a strategy for sharing systems and eliminating duplicative activities.
- 3Requires agency plans to be completed within 90 days of the governmentwide plan’s issuance and to be revised as needed; plans must be publicly available and submitted to agency heads, OMB, GAO, and Congress.
- 4Mandates an annual financial management status report, starting 6 months after enactment (and annually with the federal budget submission), detailing progress toward the 4-year plan, updated cost estimates, agency performance against metrics, recent financial statements and audits, internal control status, and compliance with major financial management laws; includes a public-facing component.
- 5Strengthens audit requirements: auditors must evaluate and test the design and operating effectiveness of internal controls over financial reporting and key financial information, and report any deficiencies; for agencies without an IG, an independent external auditor conducts the audit.
- 6Adds a Deputy Chief Financial Officer vacancy rule: if the CFO position is vacant, the Deputy CFO acts as CFO.
- 7Includes technical conforming changes to align with broader statutory frameworks (e.g., Federal Financial Management Improvement Act, reporting requirements, and cross-references to 5 U.S.C. provisions).