Which act mandated the development of the FIAR Plan?

• A. 2010 National Defense Authorization Act.
• B. 1990 Chief Financial Officers Act.
• C. 1994 Government Management Reform Act.
• D. 2018 National Defense Authorization Act.

Answer: (A)

The FIAR Plan is a statutory requirement to fix financial management and move toward audit readiness. The 2010 National Defense Authorization Act specifically mandated that the Department of Defense develop and maintain a Financial Improvement and Audit Readiness Plan, with milestones and progress reports to Congress. This creates a formal, structured roadmap for remediating audit findings and tracking corrective actions across the department.

The other acts laid important groundwork for federal financial management—such as establishing CFO responsibilities (CFO Act), expanding annual financial reporting (GMRA), or adding various provisions in later NDAAs—but they did not mandate a FIAR Plan.