The Chief Financial Officers Act of 1990 and subsequent legislation called for improved financial information and improved financial standards, including a managerial cost accounting standard that requires government agencies to develop the capability to look at the “full cost” of operations. Over the past two decades, significant reforms relating to financial and performance reporting have been made.
The mission of the Federal Accounting Standards Advisory Board (FASAB) is to serve the public interest by improving federal financial reporting. In doing so, FASAB established managerial cost accounting standards in 1995, yet continues to be advised of a need to improve the internal availability of cost information and its linkage to performance information.
FASAB requested that a three-member Panel of the National Academy of Public Administration, chaired by G. Edward DeSeve, determine how federal executives and senior managers currently use financial and related information, what gaps they see that impact their ability to manage effectively, and what opportunities exist to close those gaps.