The "Improving Federal Financial Management Act" seeks to significantly enhance federal financial management practices by amending Chapter 9 of title 31, United States Code. It expands the duties and responsibilities of agency Chief Financial Officers (CFOs), requiring them to provide leadership in areas such as budget formulation, risk management, internal controls, and financial systems. A key new responsibility is overseeing the preparation of annual agency financial statements in accordance with generally accepted accounting principles.

Each CFO will now be required to prepare an agency plan to implement the governmentwide 4-year financial management plan, including performance-based metrics for assessment. These agency plans must be completed within 90 days of the governmentwide plan's issuance, revised as needed, and made publicly available. The bill also mandates that CFOs coordinate with other senior agency personnel, such as Chief Data Officers and Chief Information Officers, on strategic planning, performance measurement, and risk management functions.

The legislation revises the governmentwide financial management plan, changing it from a 5-year to a 4-year cycle. This plan must be developed in consultation with various councils and experts, focusing on strategic, comprehensive, and cost-effective improvements. It emphasizes linking performance and cost information, eliminating duplicative systems, and strengthening the federal financial management workforce.

Furthermore, the bill introduces a new requirement for the head of each executive agency to annually assess and conclude on the effectiveness of their internal controls over financial reporting and key financial management information. Auditors will now be required to evaluate the design and implementation of these internal controls as part of their audits, ensuring greater accountability and transparency in federal financial operations.