Chapter 12: Contemporary Public Financial Management and Budget Reform in the U.S. Federal Government

Financial management reform in the United States federal government has been undertaken through passage by Congress of the Chief Financial Officers Act, the Government Performance and Results Act, and other legislation. The Executive branch under several Presidential administrations has attempted to implement reforms ranging from the production of auditable financial statements, establishment of cost accounting standards, and financial management information system reduction/redesign to the introduction of accrual accounting and performance measurement tied to strategic planning and budgeting. This chapter explores the origins and rationale for the various reforms initiated since 1990 and evaluates progress to date in implementation. Barriers to successful institutional reform are assessed and means for overcoming some of the problems evident in execution are analyzed.