The DoD is required to establish and maintain financial management systems that comply with federal standards by which act?

The DoD is required to establish and maintain financial management systems that comply with federal standards by which act?

• A. Federal Financial Management Improvement Act (FFMIA).
• B. Chief Financial Officers Act (CFO Act).
• C. Government Management Reform Act (GMRA).
• D. National Defense Authorization Act (NDAA) 2010.

Answer: (A)

The main idea here is recognizing which law sets the requirement for federal agencies, including DoD, to have financial management systems that meet government-wide standards. That requirement comes from the Federal Financial Management Improvement Act. It mandates that an agency’s financial management systems be in conformance with applicable federal requirements for accounting, budgeting, and reporting, so the information used to prepare, present, and audit financial statements is reliable and auditable. The other acts relate to organizational roles and broader management reforms or defense-specific authorizations, but they do not establish the primary obligation that DoD’s systems align with federal financial management standards.

The main idea here is recognizing which law sets the requirement for federal agencies, including DoD, to have financial management systems that meet government-wide standards. That requirement comes from the Federal Financial Management Improvement Act. It mandates that an agency’s financial management systems be in conformance with applicable federal requirements for accounting, budgeting, and reporting, so the information used to prepare, present, and audit financial statements is reliable and auditable. The other acts relate to organizational roles and broader management reforms or defense-specific authorizations, but they do not establish the primary obligation that DoD’s systems align with federal financial management standards.