Office of Federal Financial Management

Office of Federal Financial Management
Name	Office of Federal Financial Management
Jurisdiction	United States
Headquarters	Washington, D.C.
Parent agency	Office of Management and Budget
Chief1 position	Administrator of the Office of Management and Budget

Office of Federal Financial Management is a component of the Office of Management and Budget that develops financial management policy across the Executive Office of the President of the United States. It provides direction on Chief Financial Officer responsibilities, supports implementation of the Federal Financial Management Improvement Act of 1996, and coordinates with Congressional oversight and Government Accountability Office reviews. The office interacts with federal entities such as the Department of the Treasury, Department of Defense, Department of Health and Human Services, Department of Veterans Affairs, and independent agencies including the Federal Reserve System and Securities and Exchange Commission.

History

The office traces its statutory roots to the Chief Financial Officers Act of 1990 and the Federal Financial Management Improvement Act of 1996, building on reforms initiated during the Reagan Administration and influenced by reports from the Grace Commission and the Commission on Federal Paperwork. During the Clinton Administration and George W. Bush Administration the office expanded policy work in coordination with the Treasury Department and the Government Accountability Office, responding to issues raised by the Enron scandal and recommendations from the President's Council on Integrity and Efficiency. Post-2008 financial crisis, the office increased emphasis on risk management in line with guidance from the Financial Crisis Inquiry Commission and adopted practices consistent with standards from the GASB and the FASB.

Mission and Responsibilities

The office's mission centers on improving financial reporting, internal controls, and stewardship across federal agencies, aligning with mandates from the Chief Financial Officers Act of 1990 and the Federal Managers' Financial Integrity Act of 1982. Responsibilities include setting policy for agency financial statement preparation, promoting internal control frameworks consistent with the COSO model, and coordinating implementation of FISMA-related financial controls with the Department of Homeland Security. It provides guidance on improper payments reduction as addressed by the Improper Payments Information Act of 2002 and integrates practices from the Payment Integrity Information Act of 2019 and directives influenced by the OMB Circular A-123 series.

Organizational Structure

Organizationally, the office operates within the Office of Management and Budget under the Director of the Office of Management and Budget, working alongside budget, regulatory, and Statistical Policy Branch components. It maintains divisions focused on financial reporting, accounting policy, payment integrity, and federal accounting standards, coordinating with agency Chief Financial Officers, Inspectors General, Chief Information Officers, and Chief Acquisition Officers to address cross-cutting issues. The office liaises with legislative committees such as the House Committee on Oversight and Reform and the Senate Committee on Homeland Security and Governmental Affairs, and participates in interagency councils including the Financial Management Line of Business and the Federal Accounting Standards Advisory Board.

Key Programs and Initiatives

Major initiatives include improving the timeliness and accuracy of agency financial statements, advancing adoption of standards set by GASB and FASB where applicable, and leading efforts to reduce improper payments and improve payment integrity. Programs target implementation of the Treasury's Financial Report of the United States Government, modernization of financial systems consistent with the FITARA principles advocated by the House Committee on Oversight and Government Reform, and adoption of data standards promoted by the U.S. Digital Service and the General Services Administration. The office supports agency efforts to address auditability issues identified by the Government Accountability Office and partners with the International Monetary Fund and the World Bank on cross-border financial management best practices.

Policy and Guidance

Policy instruments include issuance of memoranda, circulars, and implementation guidance aligned with OMB Circular A-123, OMB Circular A-11, and other directives that affect agency reporting, internal controls, and financial management systems. Guidance draws on standards promulgated by the Federal Accounting Standards Advisory Board and the Financial Accounting Standards Board, and responds to legislative mandates from Congress such as provisions in the Budget Control Act of 2011 and requirements stemming from the No Child Left Behind Act and Medicare Modernization Act where fiscal reporting intersects. The office consults with standards bodies including COSO and coordinates with auditing stakeholders such as the American Institute of Certified Public Accountants.

Oversight and Accountability

Oversight responsibilities require collaboration with the Government Accountability Office, agency Inspectors General, and Congressional Budget Office to address audit findings, material weaknesses, and recommendations for remedial actions. The office monitors agency compliance with Treasury reporting, the Financial Report of the United States, and requirements under the Federal Financial Management Improvement Act of 1996. Enforcement and accountability mechanisms involve performance metrics and corrective action plans, working with entities such as the Office of Personnel Management on staffing and competency issues, and coordinating with the Department of Justice when legal remedies or recoveries are necessary.

Partnerships and Coordination

The office partners with a wide range of federal and non-federal bodies including the Department of the Treasury, General Services Administration, Department of Veterans Affairs, Department of Health and Human Services, Department of Defense, Federal Reserve System, Securities and Exchange Commission, National Academy of Public Administration, American Institute of Certified Public Accountants, International Monetary Fund, and World Bank. It engages with congressional committees such as the House Committee on Appropriations and the Senate Committee on Finance, collaborates with professional organizations like the Association of Government Accountants, and participates in international fora including meetings of the Organisation for Economic Co-operation and Development. These partnerships support initiatives in financial reporting, payment integrity, shared services, and modernization of federal financial management systems.

Category:United States federal administrative agencies