Summary

The financial statement audits at the Treasury Department done in accordance with the Chief Financial Officers Act (CFO) of 1990 have identified serious problems with financial management systems and related internal controls at several of the Department's bureaus. The Treasury Department has forthrightly acknowledged these serious problems and has placed strong leadership in key financial management jobs. These persons have shown commitment to the Act and are trying to fix many of Treasury's long-standing problems. Although implementing its improvements will be a long-term endeavor, Treasury should continue to take steps to enhance the CFO structure and ensure that financial management staff are adequately trained. The five areas of the Act that this testimony discusses are CFO qualifications, CFO structure, training of financial management staff, financial management systems, and audited financial statements.