The Taxpayer Funds Oversight and Accountability Act seeks to significantly improve federal financial management by strengthening the roles of agency Chief Financial Officers (CFOs) and updating governmentwide planning processes. It expands CFO duties to include leadership in budget formulation, risk management, internal controls, and financial systems, emphasizing the preparation of annual agency financial statements in accordance with generally accepted accounting principles. Furthermore, CFOs will now be responsible for overseeing the design and operation of internal controls over financial reporting and key financial management information.

A key provision requires each CFO to develop an agency-specific plan to implement the governmentwide financial management strategy, including performance-based metrics for assessment. Concurrently, the bill modifies the existing governmentwide financial management plan from a five-year to a four-year cycle, mandating that it be strategic, comprehensive, and cost-effective. This governmentwide plan must be developed in consultation with various councils and experts, and include strategies for linking performance and cost information, eliminating duplicative systems, and strengthening the financial management workforce.

The legislation also enhances financial management status reports, requiring them to detail progress on the governmentwide plan, agency performance against metrics, and summaries of financial statements and audits. Agencies must identify key financial management information, such as spending data and improper payments, and annually assess the effectiveness of their internal controls over this data. Finally, the bill strengthens audit requirements, mandating that auditors evaluate the design, implementation, and operating effectiveness of internal controls over financial reporting and key financial information.