House Oversight and Reform Committee Chairwoman Carolyn B. Maloney, D-NY., introduced legislation on March 18 that aims to modernize Federal agency financial management regulations.
The CFO Vision Act of 2022 would update and improve the CFO Act of 1990. The 1990 law envisioned a future where a governmentwide integrated system could provide decision-makers with financial and performance data that was complete, reliable, timely, and consistent.
More than 30 years have passed since the CFO Act of 1990 was signed into law, and technology has grown by leaps and bounds since then. While the government has made substantial progress on financial management issues since then, enhancements are needed to ensure sustained improvement, Rep. Maloney said.
“This is a commonsense modernization bill that will help ensure Federal agencies can make well-informed decisions about the financing, management, and evaluation of government programs and services,” she said in a statement.
The CFO Vision Act of 2022 would standardize Federal agency CFO responsibilities across the government to enhance strategic decision-making. It would also provide deputy CFOs with sufficient authority to ensure continuity in financial management and revise financial management planning by requiring the release of governmentwide and agency-level plans at least every four years.
Additionally, the measure would develop a broader set of financial management performance-based metrics to determine the status and progress agencies are making towards achieving cost-effective and efficient operations. It would also strengthen internal controls by requiring agencies to rigorously assess key financial information used in financial management and decision-making.
“In the three-plus decades since the CFO Act was signed into law, there has been a growing need to modernize these processes to meet the challenges of today,” said Sen. Mark Warner, D-Va., who plans on introducing companion legislation soon.
“The CFO Vision Act will encourage Federal agencies to improve their financial management and help renew Americans’ trust that their government is making smart, informed decisions about how we use taxpayer dollars. I look forward to introducing this legislation in the Senate in the coming weeks,” said Sen. Warner.