Certified Government Financial Manager (CGFM) 2025 – 400 Free Practice Questions to Pass the Exam

The Federal Managers Financial Integrity Act of 1982 mandates that agency heads are responsible for evaluating internal controls within their organizations. This requirement ensures that federal agencies establish and maintain a system of internal controls that protects against fraud, waste, and abuse, while also promoting efficient and effective operations. The emphasis on internal control evaluation encourages agency heads to take accountability for financial management and the integrity of their financial reporting.

This act was designed to ensure that federal agencies implement sound financial practices and to provide mechanisms for oversight, reflecting a commitment to accountability within the federal government. The evaluation process involves assessing risk and determining whether existing controls are adequate to address those risks, leading to improved financial integrity across federal operations.

In contrast, while annual audits, financial disclosures, and the creation of integrity guidelines are important components of financial management, they are not the primary requirement established by this specific act. The focus of the act is distinctly on the responsibility of agency heads to evaluate and strengthen their internal control systems.