What is the purpose of the Federal Financial Management Improvement Act (FFMIA)?

The Federal Financial Management Improvement Act (FFMIA) is designed to improve financial management practices in federal agencies by ensuring they comply with certain financial management systems and internal control standards. One key aspect of the FFMIA is that it builds on the foundation set by the Chief Financial Officers (CFO) Act, which requires federal agencies to provide accurate financial statements and adhere to specific standards in their financial management practices.

By extending the CFO Act requirements, the FFMIA seeks to enhance the reliability of financial reporting and ensure that federal entities are accountable for their financial operations. This includes measures to promote better integration of financial management systems and adherence to federal financial management policies.

The other options do not accurately address the primary purpose of the FFMIA. There are no temporary financial management policies associated with the FFMIA, nor does it aim to simplify financial reporting specifically for small businesses. Additionally, it does not seek to eliminate financial audits; rather, it emphasizes the importance of audits in assessing compliance and accountability in federal financial management.