Certified Government Financial Manager (CGFM) Practice Exam

The Cash Management Improvement Act (CMIA) primarily aims to enhance the efficiency of cash management practices for federal agencies. One of its focus areas is reducing the time between fund transfers and program payouts. This focus is crucial because delays in transferring funds can lead to inefficiencies and increased costs, negatively impacting the programs that rely on these timely payments. By streamlining this process, the CMIA helps ensure that funds are made available when needed, improving the overall cash management system for federal agencies.

Prioritizing the minimization of interest for federal agencies, enhancing international cash management practices, or increasing federal taxes do not align with the principal objectives of the CMIA. The act is centered on domestic cash management and does not specifically target international practices or tax policies, making the focus on reducing delays in fund transfers and payouts the most relevant and accurate response.