Timeline: The Evolution of Financial Management in the Federal Government

(This interactive timeline is part of Federal News Radio's special report, Rise of the Money People.)

The roots of today's federal financial systems oversight can be traced back to the Accounting and Auditing Act of 1950, which authorized the head of each federal agency to establish internal controls over its assets.

The act also tasked the Government Accountability Office with drawing up accounting standards for agencies and, through audits, ensuring that agency internal controls met those standards.

Over the last three decades, Congress has expanded the scope of financial oversight at agencies, and, with the help of new technology, provided for greater transparency in agencies' fiscal reporting.

This timeline provides an overview of the initiatives introduced by the White House and legislation enacted by Congress to establish greater oversight of government spending.

-Michael O'Connell, FederalNewsRadio.com
VIEW THE TIMELINE AND READ MORE...

Werfel: New laws could set back transparency efforts

Lawmakers should not pass new legislation that could upend the administration’s progress on making government spending more transparent, said Danny Werfel, controller at the Office of Management and Budget. Werfel told a Senate committee that lawmakers need to seriously think about the impact of new statutes on ongoing efforts to improve government accounting and tracking its money.

The administration has been implementing new laws, such as the Improper Payment Elimination and Recovery Act and another law that updates the Government Performance and Results Act, called the GPRA Modernization Act.

As Congress considers new transparency measures, Werfel offered a key question for senators to ask themselves when considering proposed legislation: Would the new law reinforce current objectives, or would it move the government in different directions?

Nevertheless, transparency legislation is moving through Congress. In April, the House passed by voice vote its Digital Accountability and Transparency Act, or the DATA Act (H.R. 2146). The bill would create the Federal Accountability and Spending Transparency Commission, which is to succeed the board that oversaw spending reports for the 2009 economic stimulus law. In addition, agencies would be required to submit their spending data to a new platform with consistent electronic identifiers and markup language.


-Mathew Weigelt, FCW.com
READ MORE...

Recent GAO Publications

Management Report: Improvements Needed in Controls over the Preparation of the U.S. Consolidated Financial Statements.
GAO-12-529, June 27.
http://www.gao.gov/products/GAO-12-529
Highlights - http://www.gao.gov/assets/600/591936.pdf


DOD Financial Management: Improvements Needed in Prompt Payment Monitoring and Reporting.
GAO-12-662R, June 26.
http://www.gao.gov/products/GAO-12-662R

Managing for Results: A Guide for Using the GPRA Modernization Act to Help Inform Congressional Decision Making.
GAO-12-621SP, June 15.
http://www.gao.gov/products/GAO-12-621SP

Recovery Act: Housing Programs Met Spending Milestones, but Asset Management Information Needs Evaluation.
GAO-12-634, June 18.
http://www.gao.gov/products/GAO-12-634
Highlights - http://www.gao.gov/assets/600/591681.pdf

Federal Real Property: National Strategy and Better Data Needed to Improve Management of Excess and Underutilized Property.
GAO-12-645, June 20.
http://www.gao.gov/products/GAO-12-645
Highlights - http://www.gao.gov/assets/600/591752.pdf

Health Center Program: Improved Oversight Needed to Ensure Grantee Compliance with Requirements.
GAO-12-546, May 29.
http://www.gao.gov/products/GAO-12-546
Highlights - http://www.gao.gov/assets/600/591178.pdf

Management Report: Improvements Are Needed to Enhance the Internal Revenue Service's Internal Controls and Operating Effectiveness.
GAO-12-683R, June 25.
http://www.gao.gov/products/GAO-12-683R

Today's GAO Publications

Inspectors General: HUD Office of Inspector General Resources and Results.
GAO-12-618, May 31.
http://www.gao.gov/products/GAO-12-618
Highlights - http://www.gao.gov/assets/600/591273.pdf

Managing for Results: GAO's Work Related to the Interim Crosscutting Priority Goals under the GPRA Modernization Act.
GAO-12-620R, May 31.
http://www.gao.gov/products/GAO-12-620R