Financial Management

While significant improvements have occurred, the federal government still has a long way to go to ensure that Congress and federal policymakers and management have reliable, useful, and timely financial and financial-related performance information. Given the fiscal challenges facing our government, the need for credible and timely financial management information to support well-informed decision-making is greater than ever.

• While many individual federal agencies can now produce reliable financial statements, for the 11th consecutive year, GAO was unable to render an opinion on the federal government's fiscal year 2007 accrual basis consolidated financial statements primarily as a result of continuing material internal control weaknesses.
• Internal control weaknesses continue to impede effective management across a variety of federal programs and operations, including undermining its ability to minimize improper payments and effectively manage its tax collection activities. 
• Financial management system deficiencies continue to hinder federal agency accountability and program performance measurement.
• A multipronged approach will be required to make greater progress and meet the financial management challenges of the 21st century, including

  • sustaining top-level commitment and leadership and building on progress made to date;

  •  focusing on (1) effectively managing and maintaining accountability over federal programs and resources, (2) minimizing improper payments, and (3) providing information needed to effectively deliberate strategies to address the nation's long-term fiscal challenge;

  • considering whether reporting enhancements are needed to most efficiently provide the kinds of financial information most useful to decision makers; and

  • recognizing that the longer actions to address these important issues are delayed, the greater the risk that the eventual required changes will be disruptive and destabilizing.

^ Back to topKey Reports

Fiscal Year 2007 U.S. Government Financial Statements: Sustained Improvement in Financial Management Is Crucial to Improving Accountability and Addressing the Long-Term Fiscal Challenge

GAO-08-926T, June 26, 2008

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 45 pages)   Accessible Text

Financial Audit: Material Weaknesses in Internal Control over the Processes Used to Prepare the Consolidated Financial Statements of the U.S. Government

GAO-08-748, June 17, 2008

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 50 pages)   Accessible Text   Recommendations (HTML)

Highlights of a Forum Convened by the Comptroller General of the United States: Improving the Federal Government's Financial Management Systems

GAO-08-447SP, April 16, 2008

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 56 pages)   Accessible Text

Improper Payments: Status of Agencies' Efforts to Address Improper Payment and Recovery Auditing Requirements

GAO-08-438T, January 31, 2008

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 37 pages)   Accessible Text

Financial Management: Persistent Financial Management Systems Issues Remain for Many CFO Act Agencies

GAO-08-1018, September 30, 2008

Summary (HTML)   Highlights Page (PDF)   Full Report (PDF, 54 pages)   Accessible Text