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

The Government Performance and Results Act Modernization Act is the correct choice because it establishes a comprehensive framework for performance reporting in the federal government. This act builds on the original Government Performance and Results Act (GPRA) of 1993, which aimed to improve federal agencies' focus on results and accountability, enhancing the link between funding and performance.

The Modernization Act emphasizes the importance of performance planning and reporting, mandating that federal agencies set strategic objectives, measure their performance outcomes, and report on their effectiveness in fulfilling these objectives. It also mandates the periodic review of performance results, which aids in making data-driven decisions and improving operational efficiency across government programs.

The other options referenced important legislation but do not specifically focus on performance reporting in the same comprehensive manner. The Government Accountability Office Act primarily governs the operations of the GAO itself, impacting audit practices. The CFO Act establishes the role of the Chief Financial Officer in federal agencies but does not directly address performance metrics. The Budget Control Act deals with budgetary constraints and fiscal management rather than performance measurement. Thus, the Modernization Act stands out as the key document for federal performance reporting.