Certified Government Financial Manager (CGFM) 2026 – 400 Free Practice Questions to Pass the Exam

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What kind of program oversight was introduced by the Improper Payments Elimination and Recovery Improvement Act (2012)?

Monthly financial audits

Identification of high priority programs

The Improper Payments Elimination and Recovery Improvement Act of 2012 focused on enhancing the accountability and management of federal programs with respect to improper payments. One of the key provisions of this act was the identification of high-priority programs, which refers to the requirement for federal agencies to identify programs susceptible to significant improper payments. This identification allows for a more focused oversight approach, ensuring that efforts to mitigate improper payments are concentrated on those areas where they are most likely to occur and where they would have the largest financial impact. By prioritizing programs according to their risk for improper payments, the legislation aims to improve the integrity of federal spending and enhance overall program management.

The other options do not represent the essential focus of the act. Monthly financial audits, while beneficial for oversight, were not specifically mandated by this legislation. Mandated employee training and annual spending limits, while important in their own right, do not directly pertain to the primary objective of identifying programs vulnerable to improper payments. The central theme of the act was essentially to create a systematic approach to address and reduce improper payments through targeted oversight of high-priority programs.

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Mandated employee training

Annual spending limits

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