Which entity does the Government Management Reform Act of 1994 primarily affect?

The Government Management Reform Act of 1994 primarily affects federal agencies. This legislation was enacted to improve the accountability and management of federal government operations by establishing a framework for federal financial management. The Act requires federal agencies to prepare financial statements that comply with generally accepted accounting principles and to undergo independent audits of these financial statements.

This focus on improving financial management and accountability within federal agencies ensures that taxpayer dollars are managed properly and that the agencies are transparent in their financial reporting. Other entities like state governments, local municipalities, and private corporations may have their own management reforms and financial reporting requirements, but the specific provisions and consequences outlined in the Government Management Reform Act are aimed exclusively at federal agencies.