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The Chief Financial Officer (CFO) position was established by the Chief Financial Officers Act (CFO Act) of 1990, which was designed to improve federal financial management. This act aimed to enhance the accountability and quality of financial information within federal agencies by requiring each agency to appoint a CFO, whose responsibilities include overseeing financial management systems, financial reporting, and long-term financial planning.

This act reflects a significant shift in federal financial management practices, emphasizing the need for experienced financial leaders in key roles. The creation of the CFO position signifies the importance of having a dedicated individual responsible for financial strategy, operation, and compliance in government agencies.

Understanding this context is vital when examining government structures and functions related to financial management. The role of the CFO is now fundamental in shaping the financial landscape of governmental entities, ensuring regulatory adherence, and facilitating sound fiscal policy decisions at the federal level.

In contrast, positions such as the Deputy Director of Management in the Office of Management and Budget (OMB), Financial Reporting Manager, and Budget Analyst, while relevant to government operations, were not specifically created by the CFO Act of 1990. Their functions are important, but they exist within a broader framework of financial management roles and responsibilities that have evolved independently of the specific