Certified Government Financial Manager (CGFM) Practice Exam 2026 – Your All-in-One Guide to Exam Success!

The Improper Payments Elimination and Recovery Act, enacted in 2010, was designed to enhance the government’s ability to detect and reduce improper payments. It established a framework for agencies to identify high-risk programs, implement corrective actions, and report their findings accurately. The act emphasized accountability for payment integrity, requiring federal agencies to review programs for improper payments and develop strategies to mitigate these issues.

This act plays a significant role in promoting transparency and scrutiny over federal spending, ultimately aiming to protect taxpayer funds. By making it mandatory for agencies to conduct audits and report irregularities, it encourages improved financial management practices and fosters a culture of responsibility within government operations.

The other options, while they may sound plausible, do not reflect the specific legislation enacted in 2010 aimed at this goal. The focus on both elimination and recovery of improper payments in the correct answer underscores the act's comprehensive approach to addressing this issue in federal agencies.