| 1 | 1 | | II |
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| 2 | 2 | | 119THCONGRESS |
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| 3 | 3 | | 1 |
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| 4 | 4 | | STSESSION S. 75 |
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| 5 | 5 | | To modify the governmentwide financial management plan, and for other |
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| 6 | 6 | | purposes. |
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| 7 | 7 | | IN THE SENATE OF THE UNITED STATES |
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| 8 | 8 | | JANUARY13, 2025 |
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| 9 | 9 | | Mr. L |
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| 10 | 10 | | ANKFORDintroduced the following bill; which was read twice and |
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| 11 | 11 | | referred to the Committee on Homeland Security and Governmental Affairs |
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| 12 | 12 | | A BILL |
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| 13 | 13 | | To modify the governmentwide financial management plan, |
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| 14 | 14 | | and for other purposes. |
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| 15 | 15 | | Be it enacted by the Senate and House of Representa-1 |
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| 16 | 16 | | tives of the United States of America in Congress assembled, 2 |
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| 17 | 17 | | SECTION 1. SHORT TITLE. 3 |
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| 18 | 18 | | This Act may be cited as the ‘‘Improving Federal Fi-4 |
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| 19 | 19 | | nancial Management Act’’. 5 |
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| 20 | 20 | | SEC. 2. CHIEF FINANCIAL OFFICERS; GOVERNMENTWIDE 6 |
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| 21 | 21 | | FINANCIAL MANAGEMENT PLAN. 7 |
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| 22 | 22 | | (a) C |
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| 23 | 23 | | HIEFFINANCIALOFFICER ANDDEPUTYCHIEF 8 |
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| 24 | 24 | | F |
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| 25 | 25 | | INANCIALOFFICER.—Chapter 9 of title 31, United 9 |
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| 26 | 26 | | States Code, is amended— 10 |
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| 30 | 30 | | (1) in section 902(a)— 1 |
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| 31 | 31 | | (A) in the matter preceding paragraph (1), 2 |
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| 32 | 32 | | by striking ‘‘An’’ and inserting ‘‘It shall be the 3 |
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| 33 | 33 | | duty and responsibility of each agency Chief Fi-4 |
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| 34 | 34 | | nancial Officer to oversee and provide leader-5 |
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| 35 | 35 | | ship in the areas of budget formulation and 6 |
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| 36 | 36 | | execution, planning and performance, risk man-7 |
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| 37 | 37 | | agement, internal controls, financial systems, 8 |
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| 38 | 38 | | accounting, and other areas as the Director of 9 |
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| 39 | 39 | | the Office of Management and Budget may des-10 |
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| 40 | 40 | | ignate. In carrying out the preceding sentence, 11 |
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| 41 | 41 | | each’’; 12 |
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| 42 | 42 | | (B) in paragraph (3)— 13 |
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| 43 | 43 | | (i) in subparagraph (C), by inserting 14 |
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| 44 | 44 | | ‘‘areas and’’ before ‘‘systems’’; and 15 |
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| 45 | 45 | | (ii) in subparagraph (D)— 16 |
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| 46 | 46 | | (I) in clause (iii), by striking 17 |
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| 47 | 47 | | ‘‘and’’ at the end; 18 |
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| 48 | 48 | | (II) in clause (iv), by striking 19 |
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| 49 | 49 | | ‘‘performance;’’ and inserting ‘‘per-20 |
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| 50 | 50 | | formance and integration of perform-21 |
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| 51 | 51 | | ance and cost information; and’’; and 22 |
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| 52 | 52 | | (III) by adding at the end the 23 |
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| 53 | 53 | | following: 24 |
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| 57 | 57 | | ‘‘(v) annual agency financial state-1 |
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| 58 | 58 | | ments prepared in accordance with United 2 |
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| 59 | 59 | | States generally accepted accounting prin-3 |
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| 60 | 60 | | ciples;’’; 4 |
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| 61 | 61 | | (C) by redesignating paragraph (8) as 5 |
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| 62 | 62 | | paragraph (10); 6 |
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| 63 | 63 | | (D) by redesignating paragraphs (5) 7 |
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| 64 | 64 | | through (7) as paragraphs (6) through (8), re-8 |
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| 65 | 65 | | spectively; 9 |
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| 66 | 66 | | (E) by inserting after paragraph (4) the 10 |
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| 67 | 67 | | following: 11 |
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| 68 | 68 | | ‘‘(5) prepare, in consultation with financial manage-12 |
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| 69 | 69 | | ment and other appropriate experts, an agency plan to im-13 |
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| 70 | 70 | | plement the 4-year financial management plan prepared 14 |
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| 71 | 71 | | by the Director of the Office of Management and Budget 15 |
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| 72 | 72 | | under section 3512(a)(2) of this title and to achieve and 16 |
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| 73 | 73 | | sustain effective financial management in the agency, 17 |
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| 74 | 74 | | which shall— 18 |
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| 75 | 75 | | ‘‘(A) be completed within 90 days of the 19 |
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| 76 | 76 | | issuance of a governmentwide plan under section 20 |
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| 77 | 77 | | 3512(a)(2) of this title; 21 |
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| 78 | 78 | | ‘‘(B) be revised as determined necessary by the 22 |
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| 79 | 79 | | Chief Financial Officer; 23 |
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| 80 | 80 | | ‘‘(C) include performance-based financial man-24 |
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| 81 | 81 | | agement metrics against which the financial man-25 |
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| 84 | 84 | | •S 75 IS |
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| 85 | 85 | | agement performance of the agency shall be as-1 |
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| 86 | 86 | | sessed; and 2 |
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| 87 | 87 | | ‘‘(D) be submitted upon completion or revision 3 |
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| 88 | 88 | | to the head of the agency, the Director of the Office 4 |
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| 89 | 89 | | of Management and Budget, the Comptroller Gen-5 |
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| 90 | 90 | | eral, and appropriate committees of Congress, and 6 |
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| 91 | 91 | | be made publicly available;’’; 7 |
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| 92 | 92 | | (F) in paragraph (6), as so redesignated— 8 |
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| 93 | 93 | | (i) by striking subparagraph (A); 9 |
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| 94 | 94 | | (ii) by redesignating subparagraphs 10 |
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| 95 | 95 | | (B) through (E) as subparagraphs (A) 11 |
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| 96 | 96 | | through (D), respectively; and 12 |
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| 97 | 97 | | (iii) in subparagraph (C), as so redes-13 |
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| 98 | 98 | | ignated, by adding ‘‘and’’ at the end; 14 |
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| 99 | 99 | | (G) in paragraph (7), as so redesignated— 15 |
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| 100 | 100 | | (i) in the matter preceding subpara-16 |
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| 101 | 101 | | graph (A), by striking ‘‘and the Director of 17 |
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| 102 | 102 | | the Office of Management and Budget,’’ 18 |
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| 103 | 103 | | and inserting ‘‘, the Director of the Office 19 |
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| 104 | 104 | | of Management and Budget, the Comp-20 |
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| 105 | 105 | | troller General, and appropriate commit-21 |
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| 106 | 106 | | tees of Congress, which shall be made pub-22 |
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| 107 | 107 | | licly available and’’; 23 |
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| 111 | 111 | | (ii) in subparagraph (A), by striking 1 |
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| 112 | 112 | | ‘‘agency;’’ and inserting ‘‘agency, includ-2 |
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| 113 | 113 | | ing— 3 |
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| 114 | 114 | | ‘‘(i) the progress of the agency in imple-4 |
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| 115 | 115 | | menting the agency plan described in paragraph 5 |
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| 116 | 116 | | (5); 6 |
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| 117 | 117 | | ‘‘(ii) the progress of the agency in imple-7 |
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| 118 | 118 | | menting the governmentwide 4-year financial 8 |
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| 119 | 119 | | management plan prepared by the Director of 9 |
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| 120 | 120 | | the Office of Management and Budget under 10 |
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| 121 | 121 | | section 3512(a)(2) of this title; and 11 |
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| 122 | 122 | | ‘‘(iii) the performance of the agency 12 |
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| 123 | 123 | | against financial management metrics estab-13 |
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| 124 | 124 | | lished by the Director of the Office of Manage-14 |
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| 125 | 125 | | ment and Budget;’’; and 15 |
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| 126 | 126 | | (iii) in subparagraph (D)— 16 |
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| 127 | 127 | | (I) by striking ‘‘of the reports’’ 17 |
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| 128 | 128 | | and inserting ‘‘of— 18 |
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| 129 | 129 | | ‘‘(i) the reports’’; 19 |
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| 130 | 130 | | (II) in clause (i), as so des-20 |
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| 131 | 131 | | ignated, by striking ‘‘the amendments 21 |
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| 132 | 132 | | made by the Federal Managers’ Fi-22 |
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| 133 | 133 | | nancial Integrity Act of 1982 (Public 23 |
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| 134 | 134 | | law 97–255); and’’ and inserting ‘‘sec-24 |
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| 135 | 135 | | tion 3512(d) of this title;’’; and 25 |
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| 139 | 139 | | (III) by adding at the end the 1 |
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| 140 | 140 | | following: 2 |
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| 141 | 141 | | ‘‘(ii) agency spending data published under 3 |
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| 142 | 142 | | the Federal Funding Accountability and Trans-4 |
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| 143 | 143 | | parency Act of 2006 (31 U.S.C. 6101 note); 5 |
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| 144 | 144 | | and 6 |
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| 145 | 145 | | ‘‘(iii) the reporting of the agency under the 7 |
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| 146 | 146 | | Federal Financial Management Improvement 8 |
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| 147 | 147 | | Act of 1996 (31 U.S.C. 3512 note); and’’; 9 |
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| 148 | 148 | | (H) in paragraph (8), as so redesignated— 10 |
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| 149 | 149 | | (i) by striking ‘‘monitor the’’ and in-11 |
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| 150 | 150 | | sert ‘‘manage the formulation and’’; and 12 |
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| 151 | 151 | | (ii) by striking ‘‘, and prepare and 13 |
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| 152 | 152 | | submit to the head of the agency timely 14 |
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| 153 | 153 | | performance reports; and’’ and inserting a 15 |
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| 154 | 154 | | semicolon; 16 |
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| 155 | 155 | | (I) by inserting after paragraph (8), as so 17 |
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| 156 | 156 | | redesignated, the following: 18 |
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| 157 | 157 | | ‘‘(9) be responsible for linking performance and cost 19 |
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| 158 | 158 | | information, including the preparation and submission to 20 |
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| 159 | 159 | | the head of the agency of timely performance reports that 21 |
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| 160 | 160 | | incorporate cost information;’’; 22 |
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| 161 | 161 | | (J) in paragraph (10), as so redesig-23 |
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| 162 | 162 | | nated— 24 |
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| 165 | 165 | | •S 75 IS |
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| 166 | 166 | | (i) by inserting ‘‘inflation and’’ before 1 |
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| 167 | 167 | | ‘‘costs’’; and 2 |
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| 168 | 168 | | (ii) by striking the period at the end 3 |
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| 169 | 169 | | and inserting ‘‘; and’’; and 4 |
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| 170 | 170 | | (K) by adding at the end the following: 5 |
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| 171 | 171 | | ‘‘(11) coordinate with senior agency personnel, 6 |
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| 172 | 172 | | including the Chief Data Officer, Chief Information 7 |
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| 173 | 173 | | Officer, Chief Performance Officer, Chief Acquisition 8 |
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| 174 | 174 | | Officer, Chief Risk Officer, and Chief Evaluation Of-9 |
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| 175 | 175 | | ficer of the agency on— 10 |
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| 176 | 176 | | ‘‘(A) the exercise of authorities under this 11 |
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| 177 | 177 | | subsection; and 12 |
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| 178 | 178 | | ‘‘(B) the strategic planning, performance 13 |
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| 179 | 179 | | measurement and reporting, and risk manage-14 |
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| 180 | 180 | | ment functions of the agency.’’; and 15 |
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| 181 | 181 | | (2) in section 903— 16 |
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| 182 | 182 | | (A) in subsection (a), by inserting ‘‘and 17 |
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| 183 | 183 | | who shall assist the agency Chief Financial Of-18 |
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| 184 | 184 | | ficer in the performance of each of the duties 19 |
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| 185 | 185 | | of the agency Chief Financial Officer under this 20 |
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| 186 | 186 | | chapter’’ after ‘‘matters’’; and 21 |
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| 187 | 187 | | (B) by adding at the end the following: 22 |
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| 188 | 188 | | ‘‘(c) Notwithstanding subchapter III of chapter 33 of 23 |
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| 189 | 189 | | title 5, in the event of a vacancy in the position of Chief 24 |
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| 190 | 190 | | Financial Officer of an agency, the Deputy Chief Finan-25 |
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| 193 | 193 | | •S 75 IS |
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| 194 | 194 | | cial Officer of the agency shall serve as the acting Chief 1 |
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| 195 | 195 | | Financial Officer.’’. 2 |
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| 196 | 196 | | (b) G |
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| 197 | 197 | | OVERNMENTWIDE FINANCIALMANAGEMENT 3 |
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| 198 | 198 | | P |
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| 199 | 199 | | LAN.—Section 3512 of title 31, United States Code, is 4 |
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| 200 | 200 | | amended— 5 |
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| 201 | 201 | | (1) in subsection (a)— 6 |
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| 202 | 202 | | (A) in paragraph (1), by striking ‘‘a finan-7 |
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| 203 | 203 | | cial management status report and a govern-8 |
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| 204 | 204 | | mentwide 5-year financial management plan’’ 9 |
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| 205 | 205 | | and inserting ‘‘a governmentwide 4-year finan-10 |
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| 206 | 206 | | cial management plan and a financial manage-11 |
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| 207 | 207 | | ment status report’’; 12 |
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| 208 | 208 | | (B) by striking paragraph (2); 13 |
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| 209 | 209 | | (C) by redesignating paragraph (3) as 14 |
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| 210 | 210 | | paragraph (2); 15 |
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| 211 | 211 | | (D) in paragraph (2), as so redesignated— 16 |
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| 212 | 212 | | (i) in subparagraph (A)— 17 |
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| 213 | 213 | | (I) by striking ‘‘5-year’’ and in-18 |
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| 214 | 214 | | serting ‘‘4-year’’; 19 |
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| 215 | 215 | | (II) by striking ‘‘shall describe’’ 20 |
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| 216 | 216 | | and inserting the following: ‘‘shall— 21 |
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| 217 | 217 | | ‘‘(i) describe’’; 22 |
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| 218 | 218 | | (III) in clause (i), as so des-23 |
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| 219 | 219 | | ignated, by striking ‘‘5 fiscal years to 24 |
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| 220 | 220 | | improve the financial management of 25 |
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| 224 | 224 | | the Federal Government.’’ and insert-1 |
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| 225 | 225 | | ing ‘‘4 fiscal years to improve the fi-2 |
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| 226 | 226 | | nancial management of the Federal 3 |
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| 227 | 227 | | Government in a manner that is stra-4 |
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| 228 | 228 | | tegic, comprehensive, and cost-effec-5 |
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| 229 | 229 | | tive; and’’; and 6 |
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| 230 | 230 | | (IV) by adding at the end the fol-7 |
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| 231 | 231 | | lowing: 8 |
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| 232 | 232 | | ‘‘(ii) be developed in consultation with the 9 |
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| 233 | 233 | | Chief Financial Officers Council, the Chief In-10 |
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| 234 | 234 | | formation Officers Council, the Chief Data Offi-11 |
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| 235 | 235 | | cer Council, the Chief Acquisition Officers 12 |
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| 236 | 236 | | Council, the Council of the Inspectors General 13 |
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| 237 | 237 | | on Integrity and Efficiency, the Government 14 |
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| 238 | 238 | | Accountability Office, and, as appropriate, other 15 |
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| 239 | 239 | | councils and financial management experts.’’; 16 |
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| 240 | 240 | | and 17 |
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| 241 | 241 | | (ii) in subparagraph (B)— 18 |
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| 242 | 242 | | (I) in the matter preceding clause 19 |
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| 243 | 243 | | (i), by striking ‘‘5-year’’ and inserting 20 |
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| 244 | 244 | | ‘‘4-year’’; 21 |
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| 245 | 245 | | (II) in clause (iii)— 22 |
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| 246 | 246 | | (aa) by striking ‘‘for devel-23 |
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| 247 | 247 | | oping’’ and inserting ‘‘for im-24 |
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| 250 | 250 | | •S 75 IS |
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| 251 | 251 | | proving financial management 1 |
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| 252 | 252 | | systems, including— 2 |
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| 253 | 253 | | ‘‘(I) developing’’; and 3 |
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| 254 | 254 | | (bb) by adding at the end 4 |
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| 255 | 255 | | the following: 5 |
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| 256 | 256 | | ‘‘(II) linking performance and cost in-6 |
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| 257 | 257 | | formation to facilitate effective and effi-7 |
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| 258 | 258 | | cient decision making; 8 |
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| 259 | 259 | | ‘‘(III) eliminating duplicative and un-9 |
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| 260 | 260 | | necessary systems and activities; and 10 |
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| 261 | 261 | | ‘‘(IV) identifying opportunities for 11 |
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| 262 | 262 | | agencies to share systems and services and 12 |
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| 263 | 263 | | encouraging agencies to do so where prac-13 |
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| 264 | 264 | | ticable;’’; 14 |
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| 265 | 265 | | (III) by striking clause (iv); 15 |
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| 266 | 266 | | (IV) by redesignating clause (v) 16 |
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| 267 | 267 | | as clause (iv); 17 |
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| 268 | 268 | | (V) by inserting after clause (iv), 18 |
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| 269 | 269 | | as so redesignated, the following: 19 |
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| 270 | 270 | | ‘‘(v) provide a strategy for reporting per-20 |
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| 271 | 271 | | formance and cost information;’’; 21 |
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| 272 | 272 | | (VI) in clause (vi), by striking 22 |
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| 273 | 273 | | ‘‘5-year’’ and inserting ‘‘4-year’’; 23 |
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| 274 | 274 | | (VII) in clause (vii), by striking 24 |
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| 275 | 275 | | ‘‘identify’’ and inserting ‘‘provide a 25 |
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| 278 | 278 | | •S 75 IS |
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| 279 | 279 | | strategy for strengthening the Federal 1 |
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| 280 | 280 | | financial management workforce, in-2 |
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| 281 | 281 | | cluding identification of’’; 3 |
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| 282 | 282 | | (VIII) in clause (viii), by striking 4 |
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| 283 | 283 | | ‘‘and’’ at the end; 5 |
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| 284 | 284 | | (IX) by redesignating clause (ix) 6 |
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| 285 | 285 | | as clause (x); 7 |
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| 286 | 286 | | (X) by inserting after clause 8 |
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| 287 | 287 | | (viii) the following: 9 |
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| 288 | 288 | | ‘‘(ix) include comprehensive financial man-10 |
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| 289 | 289 | | agement performance-based metrics against 11 |
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| 290 | 290 | | which the financial management performance of 12 |
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| 291 | 291 | | executive agencies can be assessed; and’’; and 13 |
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| 292 | 292 | | (XI) in clause (x), as so redesig-14 |
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| 293 | 293 | | nated, by striking ‘‘5-year’’ and in-15 |
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| 294 | 294 | | serting ‘‘4-year’’; 16 |
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| 295 | 295 | | (E) by inserting after paragraph (2) the 17 |
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| 296 | 296 | | following: 18 |
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| 297 | 297 | | ‘‘(3) A financial management status report under this 19 |
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| 298 | 298 | | subsection shall include— 20 |
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| 299 | 299 | | ‘‘(A) a description and analysis of the status of 21 |
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| 300 | 300 | | financial management in the executive branch, in-22 |
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| 301 | 301 | | cluding the progress made towards implementing the 23 |
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| 302 | 302 | | governmentwide 4-year financial management plan, 24 |
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| 303 | 303 | | the status of remaining challenges, and, as necessary 25 |
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| 306 | 306 | | •S 75 IS |
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| 307 | 307 | | based on obligations or expenditures, any updates or 1 |
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| 308 | 308 | | revisions to the cost estimates included in the most 2 |
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| 309 | 309 | | recent governmentwide 4-year financial management 3 |
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| 310 | 310 | | plan; 4 |
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| 311 | 311 | | ‘‘(B) a summary of the performance of agencies 5 |
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| 312 | 312 | | against the metrics developed and identified by the 6 |
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| 313 | 313 | | Director of the Office of Management and Budget in 7 |
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| 314 | 314 | | the governmentwide 4-year financial management 8 |
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| 315 | 315 | | plan; 9 |
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| 316 | 316 | | ‘‘(C) a summary of the most recently completed 10 |
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| 317 | 317 | | financial statements— 11 |
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| 318 | 318 | | ‘‘(i) of Federal agencies under section 12 |
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| 319 | 319 | | 3515 of this title; and 13 |
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| 320 | 320 | | ‘‘(ii) of Government corporations; 14 |
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| 321 | 321 | | ‘‘(D) a summary of the most recently completed 15 |
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| 322 | 322 | | financial statement audits and reports— 16 |
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| 323 | 323 | | ‘‘(i) of Federal agencies under subsections 17 |
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| 324 | 324 | | (e) and (f) of section 3521 of this title; and 18 |
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| 325 | 325 | | ‘‘(ii) of Government corporations; 19 |
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| 326 | 326 | | ‘‘(E) a summary of reports on internal account-20 |
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| 327 | 327 | | ing and administrative control systems submitted to 21 |
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| 328 | 328 | | the President and Congress under subsection (d); 22 |
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| 329 | 329 | | ‘‘(F) a listing of agencies whose financial man-23 |
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| 330 | 330 | | agement systems do not comply substantially with 24 |
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| 331 | 331 | | the requirements of section 803(a) of the Federal 25 |
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| 334 | 334 | | •S 75 IS |
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| 335 | 335 | | Financial Management Improvement Act of 1996 1 |
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| 336 | 336 | | (31 U.S.C. 3512 note), and a summary statement of 2 |
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| 337 | 337 | | the efforts underway to remedy the noncompliance; 3 |
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| 338 | 338 | | and 4 |
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| 339 | 339 | | ‘‘(G) any other information the Director con-5 |
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| 340 | 340 | | siders appropriate to fully inform Congress regard-6 |
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| 341 | 341 | | ing the financial management of the Federal Gov-7 |
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| 342 | 342 | | ernment.’’; 8 |
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| 343 | 343 | | (F) in paragraph (4)— 9 |
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| 344 | 344 | | (i) in subparagraph (A)— 10 |
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| 345 | 345 | | (I) by striking ‘‘15 months after 11 |
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| 346 | 346 | | the date of the enactment of this sub-12 |
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| 347 | 347 | | section’’ and inserting ‘‘6 months 13 |
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| 348 | 348 | | after the date of enactment of the Im-14 |
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| 349 | 349 | | proving Federal Financial Manage-15 |
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| 350 | 350 | | ment Act’’; and 16 |
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| 351 | 351 | | (II) by striking ‘‘5-year’’ and in-17 |
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| 352 | 352 | | serting ‘‘4-year’’; and 18 |
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| 353 | 353 | | (ii) in subparagraph (B)— 19 |
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| 354 | 354 | | (I) in clause (i)— 20 |
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| 355 | 355 | | (aa) by striking ‘‘Not later 21 |
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| 356 | 356 | | than January 31 of each year 22 |
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| 357 | 357 | | thereafter’’ and inserting ‘‘At a 23 |
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| 358 | 358 | | minimum, concurrently with the 24 |
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| 359 | 359 | | submission of the budget of the 25 |
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| 362 | 362 | | •S 75 IS |
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| 363 | 363 | | United States Government under 1 |
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| 364 | 364 | | section 1105(a) of this title made 2 |
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| 365 | 365 | | in the first full fiscal year fol-3 |
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| 366 | 366 | | lowing any year in which the 4 |
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| 367 | 367 | | term of the President commences 5 |
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| 368 | 368 | | under section 101 of title 3’’; 6 |
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| 369 | 369 | | (bb) by striking ‘‘financial 7 |
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| 370 | 370 | | management status report and a 8 |
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| 371 | 371 | | revised governmentwide 5-year’’ 9 |
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| 372 | 372 | | and inserting ‘‘governmentwide 10 |
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| 373 | 373 | | 4-year’’; and 11 |
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| 374 | 374 | | (cc) by striking ‘‘5 fiscal 12 |
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| 375 | 375 | | years’’ and all that follows 13 |
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| 376 | 376 | | through the period at the end 14 |
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| 377 | 377 | | and inserting ‘‘4 fiscal years.’’; 15 |
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| 378 | 378 | | and 16 |
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| 379 | 379 | | (II) in clause (ii)— 17 |
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| 380 | 380 | | (aa) by striking ‘‘revised 18 |
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| 381 | 381 | | governmentwide 5-year’’ and in-19 |
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| 382 | 382 | | serting ‘‘governmentwide 4-year’’; 20 |
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| 383 | 383 | | and 21 |
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| 384 | 384 | | (bb) by striking ‘‘paragraph 22 |
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| 385 | 385 | | (3)(B)(viii)’’ and inserting ‘‘para-23 |
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| 386 | 386 | | graph (2)(B)(viii)’’; and 24 |
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| 389 | 389 | | •S 75 IS |
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| 390 | 390 | | (iii) by adding at the end the fol-1 |
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| 391 | 391 | | lowing: 2 |
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| 392 | 392 | | ‘‘(C) Each year, concurrently with the submis-3 |
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| 393 | 393 | | sion of the budget of the United States Government 4 |
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| 394 | 394 | | under section 1105(a) of this title, the Director of 5 |
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| 395 | 395 | | the Office of Management and Budget shall submit 6 |
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| 396 | 396 | | to the appropriate committees of Congress and the 7 |
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| 397 | 397 | | Comptroller General a financial management status 8 |
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| 398 | 398 | | report.’’; and 9 |
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| 399 | 399 | | (G) by striking paragraph (5); 10 |
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| 400 | 400 | | (2) in subsection (d)(2)— 11 |
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| 401 | 401 | | (A) in subparagraph (A), by striking 12 |
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| 402 | 402 | | ‘‘and’’ at the end; 13 |
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| 403 | 403 | | (B) in subparagraph (B), by striking the 14 |
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| 404 | 404 | | period at the end and inserting ‘‘; and’’; and 15 |
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| 405 | 405 | | (C) by adding at the end the following: 16 |
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| 406 | 406 | | ‘‘(C) a separate report on the results of the as-17 |
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| 407 | 407 | | sessment and conclusion required under subsection 18 |
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| 408 | 408 | | (e)(2).’’; 19 |
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| 409 | 409 | | (3) by redesignating subsections (e), (f), and 20 |
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| 410 | 410 | | (g) as subsections (f), (g), and (h), respectively; and 21 |
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| 411 | 411 | | (4) by inserting after subsection (d) the fol-22 |
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| 412 | 412 | | lowing: 23 |
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| 413 | 413 | | ‘‘(e) The head of each executive agency shall— 24 |
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| 417 | 417 | | ‘‘(1) in establishing the internal accounting and 1 |
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| 418 | 418 | | administrative controls under subsection (c), identify 2 |
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| 419 | 419 | | the key financial management information needed 3 |
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| 420 | 420 | | for effective financial management and decision 4 |
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| 421 | 421 | | making; and 5 |
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| 422 | 422 | | ‘‘(2) annually assess and make a conclusion on 6 |
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| 423 | 423 | | the effectiveness of the internal controls of the exec-7 |
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| 424 | 424 | | utive agency over financial reporting and key finan-8 |
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| 425 | 425 | | cial management information identified under para-9 |
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| 426 | 426 | | graph (1).’’. 10 |
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| 427 | 427 | | (c) A |
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| 428 | 428 | | UDITS BYAGENCIES.—Section 3521 of title 31, 11 |
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| 429 | 429 | | United States Code, is amended— 12 |
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| 430 | 430 | | (1) in subsection (e)— 13 |
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| 431 | 431 | | (A) by redesignating paragraphs (1) and 14 |
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| 432 | 432 | | (2) as subparagraphs (A) and (B), respectively, 15 |
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| 433 | 433 | | and adjusting the margins accordingly; 16 |
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| 434 | 434 | | (B) by striking ‘‘(e) Each financial’’ and 17 |
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| 435 | 435 | | inserting ‘‘(e)(1) Each financial’’; 18 |
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| 436 | 436 | | (C) in paragraph (1), as so designated, by 19 |
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| 437 | 437 | | striking ‘‘standards—’’ and inserting ‘‘stand-20 |
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| 438 | 438 | | ards.’’; and 21 |
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| 439 | 439 | | (D) by inserting after paragraph (1), as so 22 |
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| 440 | 440 | | designated, the following: 23 |
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| 441 | 441 | | ‘‘(2) As part of each audit under this subsection, the 24 |
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| 442 | 442 | | auditor shall— 25 |
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| 446 | 446 | | ‘‘(A) evaluate the design of the internal control 1 |
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| 447 | 447 | | of the agency over financial reporting and key finan-2 |
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| 448 | 448 | | cial information, as assessed and reported on by the 3 |
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| 449 | 449 | | head of the agency under section 3512(d)(2)(C) of 4 |
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| 450 | 450 | | this title; 5 |
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| 451 | 451 | | ‘‘(B) determine whether those controls have 6 |
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| 452 | 452 | | been implemented; 7 |
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| 453 | 453 | | ‘‘(C) for controls that are properly designed and 8 |
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| 454 | 454 | | implemented, perform sufficient tests of those con-9 |
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| 455 | 455 | | trols to conclude whether the controls are operating 10 |
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| 456 | 456 | | effectively, including sufficient tests to support a low 11 |
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| 457 | 457 | | level of assessed control risk; and 12 |
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| 458 | 458 | | ‘‘(D) communicate controls that the auditor 13 |
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| 459 | 459 | | concludes are not suitably designed and implemented 14 |
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| 460 | 460 | | or are not operating effectively, as appropriate under 15 |
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| 461 | 461 | | applicable generally accepted government auditing 16 |
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| 462 | 462 | | standards. 17 |
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| 463 | 463 | | ‘‘(3) Audits under this subsection shall be con-18 |
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| 464 | 464 | | ducted—’’; and 19 |
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| 465 | 465 | | (2) in subsection (h), by striking ‘‘section 20 |
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| 466 | 466 | | 3512(a)(3)(B)(viii)’’ and inserting ‘‘section 21 |
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| 467 | 467 | | 3512(a)(2)(B)(viii)’’. 22 |
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| 468 | 468 | | (d) T |
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| 469 | 469 | | ECHNICAL AND CONFORMINGAMENDMENT.— 23 |
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| 470 | 470 | | Section 3348(e) of title 5, United States Code, is amend-24 |
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| 471 | 471 | | ed— 25 |
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| 475 | 475 | | (1) in paragraph (3), by adding ‘‘or’’ at the 1 |
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| 476 | 476 | | end; 2 |
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| 477 | 477 | | (2) by striking paragraph (4); and 3 |
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| 478 | 478 | | (3) by redesignating paragraph (5) as para-4 |
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| 479 | 479 | | graph (4). 5 |
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| 480 | 480 | | Æ |
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