Text: H.R.5687 — 101st Congress (1989-1990)All Information (Except Text)

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--H.R.5687--
H.R.5687
One Hundred First Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday, the twenty-third day
of January,
one thousand nine hundred and ninety
An Act
To amend title 31, United States Code, to improve the general and financial
manage-
ment of the Federal Government.
 Be it enacted by the Senate and House of Representatives of the United
 States of America in Congress assembled,
TITLE I--GENERAL PROVISIONS
SEC. 101. SHORT TITLE.
 This Act may be cited as the `Chief Financial Officers Act of 1990'.
SEC. 102. FINDINGS AND PURPOSES.
 (a) FINDINGS- The Congress finds the following:
 (1) General management functions of the Office of Management and Budget need
 to be significantly enhanced to improve the efficiency and effectiveness
 of the Federal Government.
 (2) Financial management functions of the Office of Management and Budget
 need to be significantly enhanced to provide overall direction and leadership
 in the development of a modern Federal financial management structure and
 associated systems.
 (3) Billions of dollars are lost each year through fraud, waste, abuse,
 and mismanagement among the hundreds of programs in the Federal Government.
 (4) These losses could be significantly decreased by improved management,
 including improved central coordination of internal controls and financial
 accounting.
 (5) The Federal Government is in great need of fundamental reform in financial
 management requirements and practices as financial management systems are
 obsolete and inefficient, and do not provide complete, consistent, reliable,
 and timely information.
 (6) Current financial reporting practices of the Federal Government do not
 accurately disclose the current and probable future cost of operating and
 investment decisions, including the future need for cash or other resources,
 do not permit adequate comparison of actual costs among executive agencies,
 and do not provide the timely information required for efficient management
 of programs.
 (b) PURPOSES- The purposes of this Act are the following:
 (1) Bring more effective general and financial management practices to
 the Federal Government through statutory provisions which would establish
 in the Office of Management and Budget a Deputy Director for Management,
 establish an Office of Federal Financial Management headed by a Controller,
 and designate a Chief Financial Officer in each executive department and
 in each major executive agency in the Federal Government.
 (2) Provide for improvement, in each agency of the Federal Government,
 of systems of accounting, financial management, and internal controls to
 assure the issuance of reliable financial information and to deter fraud,
 waste, and abuse of Government resources.
 (3) Provide for the production of complete, reliable, timely, and consistent
 financial information for use by the executive branch of the Government and
 the Congress in the financing, management, and evaluation of Federal programs.
TITLE II--ESTABLISHMENT OF CHIEF FINANCIAL OFFICERS
SEC. 201. DEPUTY DIRECTOR FOR MANAGEMENT.
 Section 502 of title 31, United States Code, as amended by this Act,
 is amended--
 (1) by redesignating subsections (c), (d), and (e), as amended by this
 section, as subsections (d), (e), and (f); and
 (2) by inserting after subsection (b) the following:
 `(c) The Office has a Deputy Director for Management appointed by the
 President, by and with the advice and consent of the Senate. The Deputy
 Director for Management shall be the chief official responsible for financial
 management in the United States Government.'.
SEC. 202. FUNCTIONS OF DEPUTY DIRECTOR FOR MANAGEMENT.
 (a) CLERICAL AMENDMENTS- Sections 503 and 504 of title 31, United States
 Code, are redesignated in order as sections 505 and 506, respectively.
 (b) FUNCTIONS OF DEPUTY DIRECTOR FOR MANAGEMENT- Subchapter I of chapter
 5 of title 31, United States Code, is amended by inserting after section
 502 the following:
`Sec. 503. Functions of Deputy Director for Management
 `(a) Subject to the direction and approval of the Director, the Deputy
 Director for Management shall establish governmentwide financial management
 policies for executive agencies and shall perform the following financial
 management functions:
 `(1) Perform all functions of the Director, including all functions delegated
 by the President to the Director, relating to financial management.
 `(2) Provide overall direction and leadership to the executive branch on
 financial management matters by establishing financial management policies
 and requirements, and by monitoring the establishment and operation of
 Federal Government financial management systems.
 `(3) Review agency budget requests for financial management systems and
 operations, and advise the Director on the resources required to develop
 and effectively operate and maintain Federal Government financial management
 systems and to correct major deficiencies in such systems.
 `(4) Review and, where appropriate, recommend to the Director changes to
 the budget and legislative proposals of agencies to ensure that they are
 in accordance with financial management plans of the Office of Management
 and Budget.
 `(5) Monitor the financial execution of the budget in relation to actual
 expenditures, including timely performance reports.
 `(6) Oversee, periodically review, and make recommendations to heads of
 agencies on the administrative structure of agencies with respect to their
 financial management activities.
 `(7) Develop and maintain qualification standards for agency Chief Financial
 Officers and for agency Deputy Chief Financial Officers appointed under
 sections 901 and 903, respectively.
 `(8) Provide advice to agency heads with respect to the selection of agency
 Chief Financial Officers and Deputy Chief Financial Officers.
 `(9) Provide advice to agencies regarding the qualifications, recruitment,
 performance, and retention of other financial management personnel.
 `(10) Assess the overall adequacy of the professional qualifications and
 capabilities of financial management staffs throughout the Government and
 make recommendations on ways to correct problems which impair the capacity
 of those staffs.
 `(11) Settle differences that arise among agencies regarding the
 implementation of financial management policies.
 `(12) Chair the Chief Financial Officers Council established by section
 302 of the Chief Financial Officers Act of 1990.
 `(13) Communicate with the financial officers of State and local governments,
 and foster the exchange with those officers of information concerning
 financial management standards, techniques, and processes.
 `(14) Issue such other policies and directives as may be necessary to carry
 out this section, and perform any other function prescribed by the Director.
 `(b) Subject to the direction and approval of the Director, the Deputy
 Director for Management shall establish general management policies for
 executive agencies and perform the following general management functions:
 `(1) Coordinate and supervise the general management functions of the Office
 of Management and Budget.
 `(2) Perform all functions of the Director, including all functions delegated
 by the President to the Director, relating to--
 `(A) managerial systems, including the systematic measurement of performance;
 `(B) procurement policy;
 `(C) grant, cooperative agreement, and assistance management;
 `(D) information and statistical policy;
 `(E) property management;
 `(F) human resources management;
 `(G) regulatory affairs; and
 `(H) other management functions, including organizational studies, long-range
 planning, program evaluation, productivity improvement, and experimentation
 and demonstration programs.
 `(3) Provide complete, reliable, and timely information to the President,
 the Congress, and the public regarding the management activities of the
 executive branch.
 `(4) Facilitate actions by the Congress and the executive branch to improve
 the management of Federal Government operations and to remove impediments
 to effective administration.
 `(5) Provide leadership in management innovation, through--
 `(A) experimentation, testing, and demonstration programs; and
 `(B) the adoption of modern management concepts and technologies.
 `(6) Work with State and local governments to improve and strengthen
 intergovernmental relations, and provide assistance to such governments
 with respect to intergovernmental programs and cooperative arrangements.
 `(7) Review and, where appropriate, recommend to the Director changes to the
 budget and legislative proposals of agencies to ensure that they respond
 to program evaluations by, and are in accordance with general management
 plans of, the Office of Management and Budget.
 `(8) Provide advice to agencies on the qualification, recruitment,
 performance, and retention of managerial personnel.
 `(9) perform any other functions prescribed by the Director.'.
SEC. 203. OFFICE OF FEDERAL FINANCIAL MANAGEMENT.
 (a) ESTABLISHMENT- Subchapter I of chapter 5 of title 31, United States
 Code, as amended by this Act, is amended by inserting after section 503
 (as added by section 202 of this Act) the following:
` 504. Office of Federal Financial Management
 `(a) There is established in the Office of Management and Budget an office
 to be known as the `Office of Federal Financial Management'. The Office of
 Federal Financial Management, under the direction and control of the Deputy
 Director for Management of the Office of Management and Budget, shall carry
 out the financial management functions listed in section 503(a) of this title.
 `(b) There shall be at the head of the Office of Federal Financial Management
 a Controller, who shall be appointed by the President, by and with the
 advice and consent of the Senate. The Controller shall be appointed from
 among individuals who possess--
 `(1) demonstrated ability and practical experience in accounting, financial
 management, and financial systems; and
 `(2) extensive practical experience in financial management in large
 governmental or business entities.
 `(c) The Controller of the Office of Federal Financial Management shall be
 the deputy and principal advisor to the Deputy Director for Management in
 the performance by the Deputy Director for Management of functions described
 in section 503(a).'.
 (b) STATEMENT OF APPROPRIATIONS IN BUDGET- Section 1105(a) of title 31,
 United States Code, is amended by adding at the end the following:
 `(28) a separate statement of the amount of appropriations requested for
 the Office of Federal Financial Management.'.
 (c) CLERICAL AMENDMENT- The table of contents at the beginning of chapter 5
 of title 31, United States Code, is amended by striking the items relating
 to sections 503 and 504 and inserting the following:
`503. Functions of Deputy Director for Management.
`504. Office of Federal Financial Management.
`505. Office of Information and Regulatory Affairs.
`506. Office of Federal Procurement Policy.'.
SEC. 204. DUTIES AND FUNCTIONS OF THE DEPARTMENT OF THE TREASURY.
 Nothing in this Act shall be construed to interfere with the exercise of the
 functions, duties, and responsibilities of the Department of the Treasury,
 as in effect immediately before the enactment of this Act.
SEC. 205. AGENCY CHIEF FINANCIAL OFFICERS.
 (a) IN GENERAL- Subtitle I of title 31, United States Code, is amended by
 adding at the end the following new chapter:
`Chapter 9--Agency Chief Financial Officers
`Sec.
`901. Establishment of agency Chief Financial Officers.
`902. Authority and functions of agency Chief Financial Officers.
`903. Establishment of agency Deputy Chief Financial Officers.
` 901. Establishment of agency Chief Financial Officers
 `(a) There shall be within each agency described in subsection (b) an agency
 Chief Financial Officer. Each agency Chief Financial Officer shall--
 `(1) for those agencies described in subsection (b)(1)--
 `(A) be appointed by the President, by and with the advice and consent of
 the Senate; or
 `(B) be designated by the President, in consultation with the head of the
 agency, from among officials of the agency who are required by law to be
 so appointed;
 `(2) for those agencies described in subsection (b)(2)--
 `(A) be appointed by the head of the agency;
 `(B) be in the competitive service or the senior executive service; and
 `(C) be career appointees; and
 `(3) be appointed or designated, as applicable, from among individuals who
 possess demonstrated ability in general management of, and knowledge of and
 extensive practical experience in financial management practices in large
 governmental or business entities.
 `(b)(1) The agencies referred to in subsection (a)(1) are the following:
 `(A) The Department of Agriculture.
 `(B) The Department of Commerce.
 `(C) The Department of Defense.
 `(D) The Department of Education.
 `(E) The Department of Energy.
 `(F) The Department of Health and Human Services.
 `(G) The Department of Housing and Urban Development.
 `(H) The Department of the Interior.
 `(I) The Department of Justice.
 `(J) The Department of Labor.
 `(K) The Department of State.
 `(L) The Department of Transportation.
 `(M) The Department of the Treasury.
 `(N) The Department of Veterans Affairs.
 `(O) The Environmental Protection Agency.
 `(P) The National Aeronautics and Space Administration.
 `(2) The agencies referred to in subsection (a)(2) are the following:
 `(A) The Agency for International Development.
 `(B) The Federal Emergency Management Agency.
 `(C) The General Services Administration.
 `(D) The National Science Foundation.
 `(E) The Nuclear Regulatory Commission.
 `(F) The Office of Personnel Management.
 `(G) The Small Business Administration.
-`Sec. 902. Authority and functions of agency Chief Financial Officers
 `(a) An agency Chief Financial Officer shall--
 `(1) report directly to the head of the agency regarding financial management
 matters;
 `(2) oversee all financial management activities relating to the programs
 and operations of the agency;
 `(3) develop and maintain an integrated agency accounting and financial
 management system, including financial reporting and internal controls,
 which--
 `(A) complies with applicable accounting principles, standards, and
 requirements, and internal control standards;
 `(B) complies with such policies and requirements as may be prescribed by
 the Director of the Office of Management and Budget;
 `(C) complies with any other requirements applicable to such systems; and
 `(D) provides for--
 `(i) complete, reliable, consistent, and timely information which is prepared
 on a uniform basis and which is responsive to the financial information
 needs of agency management;
 `(ii) the development and reporting of cost information;
 `(iii) the integration of accounting and budgeting information; and
 `(iv) the systematic measurement of performance;
 `(4) make recommendations to the head of the agency regarding the selection
 of the Deputy Chief Financial Officer of the agency;
 `(5) direct, manage, and provide policy guidance and oversight of agency
 financial management personnel, activities, and operations, including--
 `(A) the preparation and annual revision of an agency plan to--
 `(i) implement the 5-year financial management plan prepared by the Director
 of the Office of Management and Budget under section 3512(a)(3) of this
 title; and
 `(ii) comply with the requirements established under sections 3515 and
 subsections (e) and (f) of section 3521 of this title;
 `(B) the development of agency financial management budgets;
 `(C) the recruitment, selection, and training of personnel to carry out
 agency financial management functions;
 `(D) the approval and management of agency financial management systems
 design or enhancement projects;
 `(E) the implementation of agency asset management systems, including systems
 for cash management, credit management, debt collection, and property and
 inventory management and control;
 `(6) prepare and transmit, by not later than 60 days after the submission
 of the audit report required by section 3521(f) of this title, an annual
 report to the agency head and the Director of the Office of Management and
 Budget, which shall include--
 `(A) a description and analysis of the status of financial management of
 the agency;
 `(B) the annual financial statements prepared under section 3515 of this
 title;
 `(C) the audit report transmitted to the head of the agency under section
 3521(f) of this title;
 `(D) a summary of the reports on internal accounting and administrative
 control systems submitted to the President and the Congress under the
 amendments made by the Federal Managers' Financial Integrity Act of 1982
 (Public Law 97-255); and
 `(E) other information the head of the agency considers appropriate to fully
 inform the President and the Congress concerning the financial management
 of the agency;
 `(7) monitor the financial execution of the budget of the agency in relation
 to actual expenditures, and prepare and submit to the head of the agency
 timely performance reports; and
 `(8) review, on a biennial basis, the fees, royalties, rents, and other
 charges imposed by the agency for services and things of value it provides,
 and make recommendations on revising those charges to reflect costs incurred
 by it in providing those services and things of value.
 `(b)(1) In addition to the authority otherwise provided by this section,
 each agency Chief Financial Officer--
 `(A) subject to paragraph (2), shall have access to all records, reports,
 audits, reviews, documents, papers, recommendations, or other material which
 are the property of the agency or which are available to the agency, and
 which relate to programs and operations with respect to which that agency
 Chief Financial Officer has responsibilities under this section;
 `(B) may request such information or assistance as may be necessary for
 carrying out the duties and responsibilities provided by this section from
 any Federal, State, or local governmental entity; and
 `(C) to the extent and in such amounts as may be provided in advance by
 appropriations Acts, may--
 `(i) enter into contracts and other arrangements with public agencies and
 with private persons for the preparation of financial statements, studies,
 analyses, and other services; and
 `(ii) make such payments as may be necessary to carry out the provisions
 of this section.
 `(2) Except as provided in paragraph (1)(B), this subsection does not provide
 to an agency Chief Financial Officer any access greater than permitted
 under any other law to records, reports, audits, reviews, documents,
 papers, recommendations, or other material of any Office of Inspector
 General established under the Inspector General Act of 1978 (5 U.S.C. App.).
-`Sec. 903. Establishment of agency Deputy Chief Financial Officers
 `(a) There shall be within each agency described in section 901(b) an agency
 Deputy Chief Financial Officer, who shall report directly to the agency
 Chief Financial Officer on financial management matters. The position of
 agency Deputy Chief Financial Officer shall be a career reserved position
 in the Senior Executive Service.
 `(b) Consistent with qualification standards developed by, and in consultation
 with, the agency Chief Financial Officer and the Director of the Office of
 Management and Budget, the head of each agency shall appoint as Deputy Chief
 Financial Officer an individual with demonstrated ability and experience
 in accounting, budget execution, financial and management analysis, and
 systems development, and not less than 6 years practical experience in
 financial management at large governmental entities.'.
 (b) CLERICAL AMENDMENT- The table of chapters at the beginning of subtitle
 I of title 31, United States Code, is amended by adding at the end the
 following:
901.'.
 (c) CHIEF FINANCIAL OFFICERS OF DEPARTMENT OF VETERANS AFFAIRS AND DEPARTMENT
 OF HOUSING AND URBAN DEVELOPMENT-
 (1) DESIGNATION- The Secretary of Veterans Affairs and the Secretary
 of Housing and Urban Development may each designate as the agency Chief
 Financial Officer of that department for purposes of section 901 of title
 31, United States Code, as amended by this section, the officer designated,
 respectively, under section 4(c) of the Department of Veterans Affairs Act
 (38 U.S.C. 201 note) and section 4(e) of the Department of Housing and Urban
 Development Act (42 U.S.C. 3533(e)), as in effect before the effective date
 of this Act.
 (2) CONFORMING AMENDMENT- Section 4(c) of the Department of Veterans Affairs
 Act (38 U.S.C. 201 note) and section 4(e) of the Department of Housing and
 Urban Development Act (42 U.S.C. 3533(e)), as added by section 121 of Public
 Law 101-235, are repealed.
SEC. 206. TRANSFER OF FUNCTIONS AND PERSONNEL OF AGENCY CHIEF FINANCIAL
OFFICERS.
 (a) AGENCY REVIEWS OF FINANCIAL MANAGEMENT ACTIVITIES- Not later than 120
 days after the date of the enactment of this Act, the Director of the Office
 of Management and Budget shall require each agency listed in subsection
 (b) of section 901 of title 31, United States Code, as amended by this Act,
 to conduct a review of its financial management activities for the purpose
 of consolidating its accounting, budgeting, and other financial management
 activities under the agency Chief Financial Officer appointed under subsection
 (a) of that section for the agency.
 (b) REORGANIZATION PROPOSAL- Not later than 120 days after the issuance of
 requirements under subsection (a) and subject to all laws vesting functions
 in particular officers and employees of the United States, the head of each
 agency shall submit to the Director of the Office of Management and Budget
 a proposal for reorganizing the agency for the purposes of this Act. Such
 proposal shall include--
 (1) a description of all functions, powers, duties, personnel, property,
 or records which the agency Chief Financial Officer is proposed to have
 authority over, including those relating to functions that are not related
 to financial management activities; and
 (2) a detailed outline of the administrative structure of the office of the
 agency Chief Financial Officer, including a description of the responsibility
 and authority of financial management personnel and resources in agencies
 or other subdivisions as appropriate to that agency.
 (c) REVIEW AND APPROVAL OF PROPOSAL- Not later than 60 days after receiving
 a proposal from the head of an agency under subsection (b), the Director of
 the Office of Management and Budget shall approve or disapprove the proposal
 and notify the head of the agency of that approval or disapproval. The
 Director shall approve each proposal which establishes an agency Chief
 Financial Officer in conformance with section 901 of title 31, United States
 Code, as added by this Act, and which establishes a financial management
 structure reasonably tailored to the functions of the agency. Upon approving
 or disapproving a proposal of an agency under this section, the Director
 shall transmit to the head of the agency a written notice of that approval
 or disapproval.
 (d) IMPLEMENTATION OF PROPOSAL- Upon receiving written notice of approval of
 a proposal under this section from the Director of the Office of Management
 and Budget, the head of an agency shall implement that proposal.
SEC. 207. COMPENSATION.
 (a) COMPENSATION, LEVEL II- Section 5313 of title 5, United States Code,
 is amended by adding at the end the following:
 `Deputy Director for Management, Office of Management and Budget.'.
 (b) COMPENSATION, LEVEL III- Section 5314 of title 5, United States Code,
 is amended by adding at the end the following:
 `Controller, Office of Federal Financial Management, Office of Management
 and Budget.'.
 (c) COMPENSATION, LEVEL IV- Section 5315 of title 5, United States Code,
 is amended by adding at the end the following:
 `Chief Financial Officer, Department of Agriculture.
 `Chief Financial Officer, Department of Commerce.
 `Chief Financial Officer, Department of Defense.
 `Chief Financial Officer, Department of Education.
 `Chief Financial Officer, Department of Energy.
 `Chief Financial Officer, Department of Health and Human Services.
 `Chief Financial Officer, Department of Housing and Urban Development.
 `Chief Financial Officer, Department of the Interior.
 `Chief Financial Officer, Department of Justice.
 `Chief Financial Officer, Department of Labor.
 `Chief Financial Officer, Department of State.
 `Chief Financial Officer, Department of Transportation.
 `Chief Financial Officer, Department of the Treasury.
 `Chief Financial Officer, Department of Veterans Affairs.
 `Chief Financial Officer, Environmental Protection Agency.
 `Chief Financial Officer, National Aeronautics and Space Administration.'.
TITLE III--ENHANCEMENT OF FEDERAL FINANCIAL MANAGEMENT ACTIVITIES
SEC. 301. FINANCIAL MANAGEMENT STATUS REPORT; 5-YEAR PLAN OF DIRECTOR OF
OFFICE OF MANAGEMENT AND BUDGET.
 (a) IN GENERAL- Section 3512 of title 31, United States Code, is amended
 by striking the heading thereof, redesignating subsections (a) through
 (f) in order as subsections (b) through (g), and by inserting before such
 subsection (b), as so redesignated, the following:
`Sec. 3512. Executive agency accounting and other financial management
reports and plans
 `(a)(1) The Director of the Office of Management and Budget shall prepare and
 submit to the appropriate committees of the Congress a financial management
 status report and a governmentwide 5-year financial management plan.
 `(2) A financial management status report under this subsection shall
 include--
 `(A) a description and analysis of the status of financial management in
 the executive branch;
 `(B) a summary of the most recently completed financial statements--
 `(i) of Federal agencies under section 3515 of this title; and
 `(ii) of Government corporations;
 `(C) a summary of the most recently completed financial statement audits
 and reports--
 `(i) of Federal agencies under section 3521 (e) and (f) of this title; and
 `(ii) of Government corporations;
 `(D) a summary of reports on internal accounting and administrative control
 systems submitted to the President and the Congress under the amendments
 made by the Federal Managers' Financial Integrity Act of 1982 (Public Law
 97-255); and
 `(E) any other information the Director considers appropriate to fully inform
 the Congress regarding the financial management of the Federal Government.
 `(3)(A) A governmentwide 5-year financial management plan under this
 subsection shall describe the activities the Director, the Deputy Director
 for Management, the Controller of the Office of Federal Financial Management,
 and agency Chief Financial Officers shall conduct over the next 5 fiscal
 years to improve the financial management of the Federal Government.
 `(B) Each governmentwide 5-year financial management plan prepared under
 this subsection shall--
 `(i) describe the existing financial management structure and any changes
 needed to establish an integrated financial management system;
 `(ii) be consistent with applicable accounting principles, standards,
 and requirements;
 `(iii) provide a strategy for developing and integrating individual agency
 accounting, financial information, and other financial management systems
 to ensure adequacy, consistency, and timeliness of financial information;
 `(iv) identify and make proposals to eliminate duplicative and unnecessary
 systems, including encouraging agencies to share systems which have sufficient
 capacity to perform the functions needed;
 `(v) identify projects to bring existing systems into compliance with the
 applicable standards and requirements;
 `(vi) contain milestones for equipment acquisitions and other actions
 necessary to implement the 5-year plan consistent with the requirements of
 this section;
 `(vii) identify financial management personnel needs and actions to ensure
 those needs are met;
 `(viii) include a plan for ensuring the annual audit of financial statements
 of executive agencies pursuant to section 3521(h) of this title; and
 `(ix) estimate the costs of implementing the governmentwide 5-year plan.
 `(4)(A) Not later than 15 months after the date of the enactment of this
 subsection, the Director of the Office of Management and Budget shall
 submit the first financial management status report and governmentwide
 5-year financial management plan under this subsection to the appropriate
 committees of the Congress.
 `(B)(i) Not later than January 31 of each year thereafter, the Director
 of the Office of Management and Budget shall submit to the appropriate
 committees of the Congress a financial management status report and a revised
 governmentwide 5-year financial management plan to cover the succeeding 5
 fiscal years, including a report on the accomplishments of the executive
 branch in implementing the plan during the preceding fiscal year.
 `(ii) The Director shall include with each revised governmentwide 5-year
 financial management plan a description of any substantive changes in
 the financial statement audit plan required by paragraph (3)(B)(viii),
 progress made by executive agencies in implementing the audit plan, and
 any improvements in Federal Government financial management related to
 preparation and audit of financial statements of executive agencies.
 `(5) Not later than 30 days after receiving each annual report under section
 902(a)(6) of this title, the Director shall transmit to the Chairman of
 the Committee on Government Operations of the House of Representatives and
 the Chairman of the Committee on Governmental Affairs of the Senate a final
 copy of that report and any comments on the report by the Director.'.
 (b) CLERICAL AMENDMENT- The table of contents at the beginning of chapter
 35 of title 31, United States Code, is amended by striking the item relating
 to section 3512 and inserting the following:
`3512. Executive agency accounting and other financial management reports
and plans.'.
SEC. 302. CHIEF FINANCIAL OFFICERS COUNCIL.
 (a) ESTABLISHMENT- There is established a Chief Financial Officers Council,
 consisting of--
 (1) the Deputy Director for Management of the Office of Management and
 Budget, who shall act as chairperson of the council;
 (2) the Controller of the Office of Federal Financial Management of the
 Office of Management and Budget;
 (3) the Fiscal Assistant Secretary of Treasury; and
 (4) each of the agency Chief Financial Officers appointed under section
 901 of title 31, United States Code, as amended by this Act.
 (b) FUNCTIONS- The Chief Financial Officers Council shall meet periodically
 to advise and coordinate the activities of the agencies of its members
 on such matters as consolidation and modernization of financial systems,
 improved quality of financial information, financial data and information
 standards, internal controls, legislation affecting financial operations
 and organizations, and any other financial management matter.
SEC. 303. FINANCIAL STATEMENTS OF AGENCIES.
 (a) PREPARATION OF FINANCIAL STATEMENTS-
 (1) IN GENERAL- Subchapter II of chapter 35 of title 31, United States Code,
 is amended by adding at the end the following:
` 3515. Financial statements of agencies
 `(a) Not later than March 31 of 1992 and each year thereafter, the head
 of each executive agency identified in section 901(b) of this title shall
 prepare and submit to the Director of the Office of Management and Budget
 a financial statement for the preceding fiscal year, covering--
 `(1) each revolving fund and trust fund of the agency; and
 `(2) to the extent practicable, the accounts of each office, bureau, and
 activity of the agency which performed substantial commercial functions
 during the preceding fiscal year.
 `(b) Each financial statement of an executive agency under this section
 shall reflect--
 `(1) the overall financial position of the revolving funds, trust funds,
 offices, bureaus, and activities covered by the statement, including assets
 and liabilities thereof;
 `(2) results of operations of those revolving funds, trust funds, offices,
 bureaus, and activities;
 `(3) cash flows or changes in financial position of those revolving funds,
 trust funds, offices, bureaus, and activities; and
 `(4) a reconciliation to budget reports of the executive agency for those
 revolving funds, trust funds, offices, bureaus, and activities.
 `(c) The Director of the Office of Management and Budget shall prescribe
 the form and content of the financial statements of executive agencies under
 this section, consistent with applicable accounting principles, standards,
 and requirements.
 `(d) For purposes of this section, the term `commercial functions' includes
 buying and leasing of real estate, providing insurance, making loans and
 loan guarantees, and other credit programs and any activity involving the
 provision of a service or thing of value for which a fee, royalty, rent,
 or other charge is imposed by an agency for services and things of value
 it provides.
 `(e) Not later than March 31 of each year, the head of each executive agency
 designated by the President may prepare and submit to the Director of the
 Office of Management and Budget a financial statement for the preceding
 fiscal year, covering accounts of offices, bureaus, and activities of the
 agency in addition to those described in subsection (a).'.
 (2) EFFECTIVE DATE OF SUBSECTION- Subsection (e) of section 3515 of title
 31, United States Code, as added by paragraph (1), shall take effect on the
 date on which a resolution described in subsection (b)(1) of this section
 is passed by the Congress and approved by the President.
 (3) WAIVER OF REQUIREMENT- The Director of the Office of Management and
 Budget may, for fiscal year 1991, waive the application of section 3515(a)
 of title 31, United States Code, as amended by this subsection, with respect
 to any revolving fund, trust fund, or account of an executive agency.
 (b) RESOLUTION APPROVING DESIGNATION OF AGENCIES-
 (1) RESOLUTION DESCRIBED- A resolution referred to in subsection (a)(2)
 is a joint resolution the matter after the resolving clause of which is as
 follows: `That the Congress approves the executive agencies designated by
 the President pursuant to section 3515(e) of title 31, United States Code.'.
 (2) INTRODUCTION OF RESOLUTION- No later than the first day of session
 following the day on which the President submits to the Congress a designation
 of executive agencies authorized to submit financial statements under
 section 3515(e) of title 31, United States Code, as added by subsection (a),
 a resolution as described in paragraph (1) shall be introduced (by request)
 in the House by the chairman of the Committee on Government Operations
 of the House of Representatives, or by a Member or Members of the House
 designated by such chairman; and shall be introduced (by request) in the
 Senate by the chairman of the Committee on Governmental Affairs of the
 Senate, or by a Member or Members of the Senate designated by such chairman.
 (3) REFERRAL- A resolution described in paragraph (1), shall be referred
 to the Committee on Governmental Affairs of the Senate and the Committee
 on Government Operations of the House (and all resolutions with respect
 to the same designation of executive agencies shall be referred to the
 same committee) by the President of the Senate or the Speaker of the
 House of Representatives, as the case may be. The committee shall make its
 recommendations to the House of Representatives or the Senate, respectively,
 within 60 calendar days of continuous session of the Congress following
 the date of such resolution's introduction.
 (4) DISCHARGE OF COMMITTEE- If the committee to which is referred a
 resolution introduced pursuant to paragraph (2) (or, in the absence of
 such a resolution, the first resolution introduced with respect to the
 same designation of executive agencies) has not reported such resolution or
 identical resolution at the end of 60 calendar days of continuous session
 of the Congress after its introduction, such committee shall be deemed
 to be discharged from further consideration of such resolution and such
 resolution shall be placed on the appropriate calendar of the House involved.
 (5) PROCEDURE AFTER REPORT OR DISCHARGE OF COMMITTEE; VOTE ON FINAL PASSAGE-
 (A) When the committee has reported, or has been deemed to be discharged
 (under paragraph (4)) from further consideration of, a resolution described
 in paragraph (1), it is at any time thereafter in order (even though a
 previous motion to the same effect has been disagreed to) for any Member
 of the respective House to move to proceed to the consideration of the
 resolution. The motion is highly privileged and is not debatable. The motion
 shall not be subject to amendment, or to a motion to postpone, or a motion
 to proceed to the consideration of other business. A motion to reconsider
 the vote by which the motion is agreed to or disagreed to shall not be
 in order. If a motion to proceed to the consideration of the resolution
 is agreed to, the resolution shall remain the unfinished business of the
 respective House until disposed of.
 (B) Debate on the resolution, and on all debatable motions and appeals in
 connection therewith, shall be limited to not more than 10 hours, which
 shall be divided equally between individuals favoring and individuals
 opposing the resolution. A motion further to limit debate is in order and
 not debatable. An amendment to, or a motion to postpone, or a motion to
 proceed to the consideration of other business, or a motion to recommit
 the resolution is not in order. A motion to reconsider the vote by which
 the resolution is passed or rejected shall not be in order.
 (C) Immediately following the conclusion of the debate on the resolution
 and a single quorum call at the conclusion of the debate if requested
 in accordance with the rules of the appropriate House, the vote on final
 passage of the resolution shall occur.
 (D) Appeals from the decisions of the Chair relating to the application of
 the rules of the Senate or the House of Representatives, as the case may
 be, to the procedure relating to a resolution described in paragraph (1),
 shall be decided without debate.
 (E) If, prior to the passage by one House of a resolution of that House,
 that House receives a resolution with respect to the same designation of
 executive agencies from the other House, then--
 (i) the procedure in that House shall be the same as if no resolution had
 been received from the other House; but
 (ii) the vote on final passage shall be on the resolution of the other House.
 (F) It shall not be in order in either the House of Representatives or the
 Senate to consider a resolution described in paragraph (1), or to consider any
 conference report on such a resolution, unless the Director of the Office of
 Management and Budget submits to the Congress a report under subsection (e).
 (c) REPORT ON SUBSTANTIAL COMMERCIAL FUNCTIONS- Not later than 180 days
 after the date of the enactment of this Act, the Director of the Office
 of Management and Budget shall determine and report to the Congress on
 which executive agencies or parts thereof perform substantial commercial
 functions for which financial statements can be prepared practicably under
 section 3515 of title 31, United States Code, as added by this section.
 (d) PILOT PROJECT- (1) Not later than March 31 of each of 1991, 1992,
 and 1993, the head of the Departments of Agriculture, Labor, and Veterans
 Affairs, the General Services Administration, and the Social Security
 Administration shall each prepare and submit to the Director of the Office
 of Management and Budget financial statements for the preceding fiscal
 year for the accounts of all of the offices, bureaus, and activities of
 that department or administration.
 (2) Not later than March 31 of each of 1992 and 1993, the head of the
 Departments of Housing and Urban Development and the Army shall prepare and
 submit to the Director of the Office of Management and Budget financial
 statements for the preceding fiscal year for the accounts of all of the
 offices, bureaus, and activities of that department.
 (3) Not later than March 31, 1993, the head of the Department of the Air
 Force, the Internal Revenue Service, and the United States Customs Service,
 shall each prepare and submit to the Director of the Office of Management and
 Budget financial statements for the preceding fiscal year for the accounts
 of all of the offices, bureaus, and activities of that department or service.
 (4) Each financial statement prepared under this subsection shall be audited
 in accordance with section 3521 (e), (f), (g), and (h) of title 31, United
 States Code.
 (e) REPORT ON INITIAL FINANCIAL STATEMENTS- Not later than June 30, 1993,
 the Director of the Office of Management and Budget shall report to the
 Congress on the financial statements prepared for fiscal years 1990, 1991,
 and 1992 under subsection (a) of section 3515 of title 31, United States
 Code (as added by subsection (a) of this section) and under subsection (d)
 of this section. The report shall include analysis of--
 (1) the accuracy of the data included in the financial statements;
 (2) the difficulties each department and agency encountered in preparing
 the data included in the financial statements;
 (3) the benefits derived from the preparation of the financial statements; and
 (4) the cost associated with preparing and auditing the financial statements,
 including a description of any activities that were foregone as a result
 of that preparation and auditing.
 (f) CLERICAL AMENDMENT- The table of sections at the beginning of chapter
 35 of title 31, United States Code, is amended by inserting after the item
 relating to section 3514 the following:
`3515. Financial statements of agencies.'.
SEC. 304. FINANCIAL AUDITS OF AGENCIES.
 (a) IN GENERAL- Section 3521 of title 31, United States Code, is amended
 by adding at the end the following new subsections:
 `(e) Each financial statement prepared under section 3515 by an agency
 shall be audited in accordance with applicable generally accepted government
 auditing standards--
 `(1) in the case of an agency having an Inspector General appointed under the
 Inspector General Act of 1978 (5 U.S.C. App.), by the Inspector General or
 by an independent external auditor, as determined by the Inspector General
 of the agency; and
 `(2) in any other case, by an independent external auditor, as determined
 by the head of the agency.
 `(f) Not later than June 30 following the fiscal year for which a financial
 statement is submitted under section 3515 of this title by an agency,
 the person who audits the statement for purpose of subsection (e) shall
 submit a report on the audit to the head of the agency. A report under
 this subsection shall be prepared in accordance with generally accepted
 government auditing standards.
 `(g) The Comptroller General of the United States--
 `(1) may review any audit of a financial statement conducted under this
 subsection by an Inspector General or an external auditor;
 `(2) shall report to the Congress, the Director of the Office of Management
 and Budget, and the head of the agency which prepared the statement,
 regarding the results of the review and make any recommendation the
 Comptroller General considers appropriate; and
 `(3) may audit a financial statement prepared under section 3515 of this
 title at the discretion of the Comptroller General or at the request of a
 committee of the Congress.
An audit the Comptroller General performs under this subsection shall be in
lieu of the audit otherwise required by subsection (e) of this section. Prior
to performing such audit, the Comptroller General shall consult with the
Inspector General of the agency which prepared the statement.
 `(h) Each financial statement prepared by an executive agency for a fiscal
 year after fiscal year 1991 shall be audited in accordance with this section
 and the plan required by section 3512(a)(3)(B)(viii) of this title.'.
 (b) WAIVER OF REQUIREMENTS- The Director of the Office of Management and
 Budget may waive application of subsections (e) and (f) of section 3521 of
 title 31, United States Code, as amended by this section, to a financial
 statement submitted by an agency for fiscal years 1990 and 1991.
SEC. 305. FINANCIAL AUDITS OF GOVERNMENT CORPORATIONS.
 Section 9105 of title 31, United States Code, is amended to read as follows:
`Sec. 9105. Audits
 `(a)(1) The financial statements of Government corporations shall be audited
 by the Inspector General of the corporation appointed under the Inspector
 General Act of 1978 (5 U.S.C. App.) or by an independent external auditor,
 as determined by the Inspector General or, if there is no Inspector General,
 by the head of the corporation.
 `(2) Audits under this section shall be conducted in accordance with
 applicable generally accepted government auditing standards.
 `(3) Upon completion of the audit required by this subsection, the person
 who audits the statement shall submit a report on the audit to the head of
 the Government corporation, to the Chairman of the Committee on Government
 Operations of the House of Representatives, and to the Chairman of the
 Committee on Governmental Affairs of the Senate.
 `(4) The Comptroller General of the United States--
 `(A) may review any audit of a financial statement conducted under this
 subsection by an Inspector General or an external auditor;
 `(B) shall report to the Congress, the Director of the Office of Management
 and Budget, and the head of the Government corporation which prepared the
 statement, regarding the results of the review and make any recommendation
 the Comptroller General of the United States considers appropriate; and
 `(C) may audit a financial statement of a Government corporation at the
 discretion of the Comptroller General or at the request of a committee of
 the Congress.
An audit the Comptroller General performs under this paragraph shall be in lieu
of the audit otherwise required by paragraph (1) of this subsection. Prior
to performing such audit, the Comptroller General shall consult with the
Inspector General of the agency which prepared the statement.
 `(5) A Government corporation shall reimburse the Comptroller General of the
 United States for the full cost of any audit conducted by the Comptroller
 General under this subsection, as determined by the Comptroller General. All
 reimbursements received under this paragraph by the Comptroller General of the
 United States shall be deposited in the Treasury as miscellaneous receipts.
 `(b) Upon request of the Comptroller General of the United States,
 a Government corporation shall provide to the Comptroller General of
 the United States all books, accounts, financial records, reports, files,
 workpapers, and property belonging to or in use by the Government corporation
 and its auditor that the Comptroller General of the United States considers
 necessary to the performance of any audit or review under this section.
 `(c) Activities of the Comptroller General of the United States under
 this section are in lieu of any audit of the financial transactions of a
 Government corporation that the Comptroller General is required to make
 under any other law.'.
SEC. 306. MANAGEMENT REPORTS OF GOVERNMENT CORPORATIONS.
 (a) IN GENERAL- Section 9106 of title 31, United States Code, is amended
 to read as follows:
` 9106. Management reports
 `(a)(1) A Government corporation shall submit an annual management report
 to the Congress not later than 180 days after the end of the Government
 corporation's fiscal year.
 `(2) A management report under this subsection shall include--
 `(A) a statement of financial position;
 `(B) a statement of operations;
 `(C) a statement of cash flows;
 `(D) a reconciliation to the budget report of the Government corporation,
 if applicable;
 `(E) a statement on internal accounting and administrative control systems
 by the head of the management of the corporation, consistent with the
 requirements for agency statements on internal accounting and administrative
 control systems under the amendments made by the Federal Managers' Financial
 Integrity Act of 1982 (Public Law 97-255);
 `(F) the report resulting from an audit of the financial statements of the
 corporation conducted under section 9105 of this title; and
 `(G) any other comments and information necessary to inform the Congress
 about the operations and financial condition of the corporation.
 `(b) A Government corporation shall provide the President, the Director of
 the Office of Management and Budget, and the Comptroller General of the United
 States a copy of the management report when it is submitted to Congress.'.
 (b) CLERICAL AMENDMENT- The table of sections for chapter 91 of title 31,
 United States Code, is amended by striking the item relating to section
 9106 and inserting the following:
`9106. Management reports.'.
SEC. 307. ADOPTION OF CAPITAL ACCOUNTING STANDARDS.
 No capital accounting standard or principle, including any human capital
 standard or principle, shall be adopted for use in an executive department
 or agency until such standard has been reported to the Congress and a period
 of 45 days of continuous session of the Congress has expired.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.

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