II
119THCONGRESS
1
STSESSION S. 75
To modify the governmentwide financial management plan, and for other
purposes.
IN THE SENATE OF THE UNITED STATES
JANUARY13, 2025
Mr. L
ANKFORDintroduced the following bill; which was read twice and
referred to the Committee on Homeland Security and Governmental Affairs
A BILL
To modify the governmentwide financial management plan,
and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Improving Federal Fi-4
nancial Management Act’’. 5
SEC. 2. CHIEF FINANCIAL OFFICERS; GOVERNMENTWIDE 6
FINANCIAL MANAGEMENT PLAN. 7
(a) C
HIEFFINANCIALOFFICER ANDDEPUTYCHIEF 8
F
INANCIALOFFICER.—Chapter 9 of title 31, United 9
States Code, is amended— 10
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(1) in section 902(a)— 1
(A) in the matter preceding paragraph (1), 2
by striking ‘‘An’’ and inserting ‘‘It shall be the 3
duty and responsibility of each agency Chief Fi-4
nancial Officer to oversee and provide leader-5
ship in the areas of budget formulation and 6
execution, planning and performance, risk man-7
agement, internal controls, financial systems, 8
accounting, and other areas as the Director of 9
the Office of Management and Budget may des-10
ignate. In carrying out the preceding sentence, 11
each’’; 12
(B) in paragraph (3)— 13
(i) in subparagraph (C), by inserting 14
‘‘areas and’’ before ‘‘systems’’; and 15
(ii) in subparagraph (D)— 16
(I) in clause (iii), by striking 17
‘‘and’’ at the end; 18
(II) in clause (iv), by striking 19
‘‘performance;’’ and inserting ‘‘per-20
formance and integration of perform-21
ance and cost information; and’’; and 22
(III) by adding at the end the 23
following: 24
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‘‘(v) annual agency financial state-1
ments prepared in accordance with United 2
States generally accepted accounting prin-3
ciples;’’; 4
(C) by redesignating paragraph (8) as 5
paragraph (10); 6
(D) by redesignating paragraphs (5) 7
through (7) as paragraphs (6) through (8), re-8
spectively; 9
(E) by inserting after paragraph (4) the 10
following: 11
‘‘(5) prepare, in consultation with financial manage-12
ment and other appropriate experts, an agency plan to im-13
plement the 4-year financial management plan prepared 14
by the Director of the Office of Management and Budget 15
under section 3512(a)(2) of this title and to achieve and 16
sustain effective financial management in the agency, 17
which shall— 18
‘‘(A) be completed within 90 days of the 19
issuance of a governmentwide plan under section 20
3512(a)(2) of this title; 21
‘‘(B) be revised as determined necessary by the 22
Chief Financial Officer; 23
‘‘(C) include performance-based financial man-24
agement metrics against which the financial man-25
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agement performance of the agency shall be as-1
sessed; and 2
‘‘(D) be submitted upon completion or revision 3
to the head of the agency, the Director of the Office 4
of Management and Budget, the Comptroller Gen-5
eral, and appropriate committees of Congress, and 6
be made publicly available;’’; 7
(F) in paragraph (6), as so redesignated— 8
(i) by striking subparagraph (A); 9
(ii) by redesignating subparagraphs 10
(B) through (E) as subparagraphs (A) 11
through (D), respectively; and 12
(iii) in subparagraph (C), as so redes-13
ignated, by adding ‘‘and’’ at the end; 14
(G) in paragraph (7), as so redesignated— 15
(i) in the matter preceding subpara-16
graph (A), by striking ‘‘and the Director of 17
the Office of Management and Budget,’’ 18
and inserting ‘‘, the Director of the Office 19
of Management and Budget, the Comp-20
troller General, and appropriate commit-21
tees of Congress, which shall be made pub-22
licly available and’’; 23
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(ii) in subparagraph (A), by striking 1
‘‘agency;’’ and inserting ‘‘agency, includ-2
ing— 3
‘‘(i) the progress of the agency in imple-4
menting the agency plan described in paragraph 5
(5); 6
‘‘(ii) the progress of the agency in imple-7
menting the governmentwide 4-year financial 8
management plan prepared by the Director of 9
the Office of Management and Budget under 10
section 3512(a)(2) of this title; and 11
‘‘(iii) the performance of the agency 12
against financial management metrics estab-13
lished by the Director of the Office of Manage-14
ment and Budget;’’; and 15
(iii) in subparagraph (D)— 16
(I) by striking ‘‘of the reports’’ 17
and inserting ‘‘of— 18
‘‘(i) the reports’’; 19
(II) in clause (i), as so des-20
ignated, by striking ‘‘the amendments 21
made by the Federal Managers’ Fi-22
nancial Integrity Act of 1982 (Public 23
law 97–255); and’’ and inserting ‘‘sec-24
tion 3512(d) of this title;’’; and 25
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(III) by adding at the end the 1
following: 2
‘‘(ii) agency spending data published under 3
the Federal Funding Accountability and Trans-4
parency Act of 2006 (31 U.S.C. 6101 note); 5
and 6
‘‘(iii) the reporting of the agency under the 7
Federal Financial Management Improvement 8
Act of 1996 (31 U.S.C. 3512 note); and’’; 9
(H) in paragraph (8), as so redesignated— 10
(i) by striking ‘‘monitor the’’ and in-11
sert ‘‘manage the formulation and’’; and 12
(ii) by striking ‘‘, and prepare and 13
submit to the head of the agency timely 14
performance reports; and’’ and inserting a 15
semicolon; 16
(I) by inserting after paragraph (8), as so 17
redesignated, the following: 18
‘‘(9) be responsible for linking performance and cost 19
information, including the preparation and submission to 20
the head of the agency of timely performance reports that 21
incorporate cost information;’’; 22
(J) in paragraph (10), as so redesig-23
nated— 24
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(i) by inserting ‘‘inflation and’’ before 1
‘‘costs’’; and 2
(ii) by striking the period at the end 3
and inserting ‘‘; and’’; and 4
(K) by adding at the end the following: 5
‘‘(11) coordinate with senior agency personnel, 6
including the Chief Data Officer, Chief Information 7
Officer, Chief Performance Officer, Chief Acquisition 8
Officer, Chief Risk Officer, and Chief Evaluation Of-9
ficer of the agency on— 10
‘‘(A) the exercise of authorities under this 11
subsection; and 12
‘‘(B) the strategic planning, performance 13
measurement and reporting, and risk manage-14
ment functions of the agency.’’; and 15
(2) in section 903— 16
(A) in subsection (a), by inserting ‘‘and 17
who shall assist the agency Chief Financial Of-18
ficer in the performance of each of the duties 19
of the agency Chief Financial Officer under this 20
chapter’’ after ‘‘matters’’; and 21
(B) by adding at the end the following: 22
‘‘(c) Notwithstanding subchapter III of chapter 33 of 23
title 5, in the event of a vacancy in the position of Chief 24
Financial Officer of an agency, the Deputy Chief Finan-25
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cial Officer of the agency shall serve as the acting Chief 1
Financial Officer.’’. 2
(b) G
OVERNMENTWIDE FINANCIALMANAGEMENT 3
P
LAN.—Section 3512 of title 31, United States Code, is 4
amended— 5
(1) in subsection (a)— 6
(A) in paragraph (1), by striking ‘‘a finan-7
cial management status report and a govern-8
mentwide 5-year financial management plan’’ 9
and inserting ‘‘a governmentwide 4-year finan-10
cial management plan and a financial manage-11
ment status report’’; 12
(B) by striking paragraph (2); 13
(C) by redesignating paragraph (3) as 14
paragraph (2); 15
(D) in paragraph (2), as so redesignated— 16
(i) in subparagraph (A)— 17
(I) by striking ‘‘5-year’’ and in-18
serting ‘‘4-year’’; 19
(II) by striking ‘‘shall describe’’ 20
and inserting the following: ‘‘shall— 21
‘‘(i) describe’’; 22
(III) in clause (i), as so des-23
ignated, by striking ‘‘5 fiscal years to 24
improve the financial management of 25
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the Federal Government.’’ and insert-1
ing ‘‘4 fiscal years to improve the fi-2
nancial management of the Federal 3
Government in a manner that is stra-4
tegic, comprehensive, and cost-effec-5
tive; and’’; and 6
(IV) by adding at the end the fol-7
lowing: 8
‘‘(ii) be developed in consultation with the 9
Chief Financial Officers Council, the Chief In-10
formation Officers Council, the Chief Data Offi-11
cer Council, the Chief Acquisition Officers 12
Council, the Council of the Inspectors General 13
on Integrity and Efficiency, the Government 14
Accountability Office, and, as appropriate, other 15
councils and financial management experts.’’; 16
and 17
(ii) in subparagraph (B)— 18
(I) in the matter preceding clause 19
(i), by striking ‘‘5-year’’ and inserting 20
‘‘4-year’’; 21
(II) in clause (iii)— 22
(aa) by striking ‘‘for devel-23
oping’’ and inserting ‘‘for im-24
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proving financial management 1
systems, including— 2
‘‘(I) developing’’; and 3
(bb) by adding at the end 4
the following: 5
‘‘(II) linking performance and cost in-6
formation to facilitate effective and effi-7
cient decision making; 8
‘‘(III) eliminating duplicative and un-9
necessary systems and activities; and 10
‘‘(IV) identifying opportunities for 11
agencies to share systems and services and 12
encouraging agencies to do so where prac-13
ticable;’’; 14
(III) by striking clause (iv); 15
(IV) by redesignating clause (v) 16
as clause (iv); 17
(V) by inserting after clause (iv), 18
as so redesignated, the following: 19
‘‘(v) provide a strategy for reporting per-20
formance and cost information;’’; 21
(VI) in clause (vi), by striking 22
‘‘5-year’’ and inserting ‘‘4-year’’; 23
(VII) in clause (vii), by striking 24
‘‘identify’’ and inserting ‘‘provide a 25
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strategy for strengthening the Federal 1
financial management workforce, in-2
cluding identification of’’; 3
(VIII) in clause (viii), by striking 4
‘‘and’’ at the end; 5
(IX) by redesignating clause (ix) 6
as clause (x); 7
(X) by inserting after clause 8
(viii) the following: 9
‘‘(ix) include comprehensive financial man-10
agement performance-based metrics against 11
which the financial management performance of 12
executive agencies can be assessed; and’’; and 13
(XI) in clause (x), as so redesig-14
nated, by striking ‘‘5-year’’ and in-15
serting ‘‘4-year’’; 16
(E) by inserting after paragraph (2) the 17
following: 18
‘‘(3) A financial management status report under this 19
subsection shall include— 20
‘‘(A) a description and analysis of the status of 21
financial management in the executive branch, in-22
cluding the progress made towards implementing the 23
governmentwide 4-year financial management plan, 24
the status of remaining challenges, and, as necessary 25
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based on obligations or expenditures, any updates or 1
revisions to the cost estimates included in the most 2
recent governmentwide 4-year financial management 3
plan; 4
‘‘(B) a summary of the performance of agencies 5
against the metrics developed and identified by the 6
Director of the Office of Management and Budget in 7
the governmentwide 4-year financial management 8
plan; 9
‘‘(C) a summary of the most recently completed 10
financial statements— 11
‘‘(i) of Federal agencies under section 12
3515 of this title; and 13
‘‘(ii) of Government corporations; 14
‘‘(D) a summary of the most recently completed 15
financial statement audits and reports— 16
‘‘(i) of Federal agencies under subsections 17
(e) and (f) of section 3521 of this title; and 18
‘‘(ii) of Government corporations; 19
‘‘(E) a summary of reports on internal account-20
ing and administrative control systems submitted to 21
the President and Congress under subsection (d); 22
‘‘(F) a listing of agencies whose financial man-23
agement systems do not comply substantially with 24
the requirements of section 803(a) of the Federal 25
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Financial Management Improvement Act of 1996 1
(31 U.S.C. 3512 note), and a summary statement of 2
the efforts underway to remedy the noncompliance; 3
and 4
‘‘(G) any other information the Director con-5
siders appropriate to fully inform Congress regard-6
ing the financial management of the Federal Gov-7
ernment.’’; 8
(F) in paragraph (4)— 9
(i) in subparagraph (A)— 10
(I) by striking ‘‘15 months after 11
the date of the enactment of this sub-12
section’’ and inserting ‘‘6 months 13
after the date of enactment of the Im-14
proving Federal Financial Manage-15
ment Act’’; and 16
(II) by striking ‘‘5-year’’ and in-17
serting ‘‘4-year’’; and 18
(ii) in subparagraph (B)— 19
(I) in clause (i)— 20
(aa) by striking ‘‘Not later 21
than January 31 of each year 22
thereafter’’ and inserting ‘‘At a 23
minimum, concurrently with the 24
submission of the budget of the 25
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United States Government under 1
section 1105(a) of this title made 2
in the first full fiscal year fol-3
lowing any year in which the 4
term of the President commences 5
under section 101 of title 3’’; 6
(bb) by striking ‘‘financial 7
management status report and a 8
revised governmentwide 5-year’’ 9
and inserting ‘‘governmentwide 10
4-year’’; and 11
(cc) by striking ‘‘5 fiscal 12
years’’ and all that follows 13
through the period at the end 14
and inserting ‘‘4 fiscal years.’’; 15
and 16
(II) in clause (ii)— 17
(aa) by striking ‘‘revised 18
governmentwide 5-year’’ and in-19
serting ‘‘governmentwide 4-year’’; 20
and 21
(bb) by striking ‘‘paragraph 22
(3)(B)(viii)’’ and inserting ‘‘para-23
graph (2)(B)(viii)’’; and 24
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(iii) by adding at the end the fol-1
lowing: 2
‘‘(C) Each year, concurrently with the submis-3
sion of the budget of the United States Government 4
under section 1105(a) of this title, the Director of 5
the Office of Management and Budget shall submit 6
to the appropriate committees of Congress and the 7
Comptroller General a financial management status 8
report.’’; and 9
(G) by striking paragraph (5); 10
(2) in subsection (d)(2)— 11
(A) in subparagraph (A), by striking 12
‘‘and’’ at the end; 13
(B) in subparagraph (B), by striking the 14
period at the end and inserting ‘‘; and’’; and 15
(C) by adding at the end the following: 16
‘‘(C) a separate report on the results of the as-17
sessment and conclusion required under subsection 18
(e)(2).’’; 19
(3) by redesignating subsections (e), (f), and 20
(g) as subsections (f), (g), and (h), respectively; and 21
(4) by inserting after subsection (d) the fol-22
lowing: 23
‘‘(e) The head of each executive agency shall— 24
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‘‘(1) in establishing the internal accounting and 1
administrative controls under subsection (c), identify 2
the key financial management information needed 3
for effective financial management and decision 4
making; and 5
‘‘(2) annually assess and make a conclusion on 6
the effectiveness of the internal controls of the exec-7
utive agency over financial reporting and key finan-8
cial management information identified under para-9
graph (1).’’. 10
(c) A
UDITS BYAGENCIES.—Section 3521 of title 31, 11
United States Code, is amended— 12
(1) in subsection (e)— 13
(A) by redesignating paragraphs (1) and 14
(2) as subparagraphs (A) and (B), respectively, 15
and adjusting the margins accordingly; 16
(B) by striking ‘‘(e) Each financial’’ and 17
inserting ‘‘(e)(1) Each financial’’; 18
(C) in paragraph (1), as so designated, by 19
striking ‘‘standards—’’ and inserting ‘‘stand-20
ards.’’; and 21
(D) by inserting after paragraph (1), as so 22
designated, the following: 23
‘‘(2) As part of each audit under this subsection, the 24
auditor shall— 25
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‘‘(A) evaluate the design of the internal control 1
of the agency over financial reporting and key finan-2
cial information, as assessed and reported on by the 3
head of the agency under section 3512(d)(2)(C) of 4
this title; 5
‘‘(B) determine whether those controls have 6
been implemented; 7
‘‘(C) for controls that are properly designed and 8
implemented, perform sufficient tests of those con-9
trols to conclude whether the controls are operating 10
effectively, including sufficient tests to support a low 11
level of assessed control risk; and 12
‘‘(D) communicate controls that the auditor 13
concludes are not suitably designed and implemented 14
or are not operating effectively, as appropriate under 15
applicable generally accepted government auditing 16
standards. 17
‘‘(3) Audits under this subsection shall be con-18
ducted—’’; and 19
(2) in subsection (h), by striking ‘‘section 20
3512(a)(3)(B)(viii)’’ and inserting ‘‘section 21
3512(a)(2)(B)(viii)’’. 22
(d) T
ECHNICAL AND CONFORMINGAMENDMENT.— 23
Section 3348(e) of title 5, United States Code, is amend-24
ed— 25
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(1) in paragraph (3), by adding ‘‘or’’ at the 1
end; 2
(2) by striking paragraph (4); and 3
(3) by redesignating paragraph (5) as para-4
graph (4). 5
Æ
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