Click HERE to return to Strategic Planning page.

Chief Financial Officers Act of 1990

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 management 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.

  1. Clerical Amendments.--Sections 503 and 504 of title 31, United States Code, are redesignated in order as sections 505 and 506, respectively.
  2. 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
  1. 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.
  2. 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--
      1. managerial systems, including the systematic measurement of performance;
      2. procurement policy;
      3. grant, cooperative agreement, and assistance management;
      4. information and statistical policy;
      5. property management;
      6. human resources management;
      7. regulatory affairs; and
      8. 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.

  1. 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: Sec. 504. Office of Federal Financial Management
    1. 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.
    2. 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.
    3. 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)..
  2. 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..
  3. 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.

Sec. 901. Establishment of agency Chief Financial Officers

  1. 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)--
      1. be appointed by the President, by and with the advice and consent of the Senate; or
      2. 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)--
      1. be appointed by the head of the agency;
      2. be in the competitive service or the senior executive service; and
      3. 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.
    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

  1. 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--
      1. complies with applicable accounting principles, standards, and requirements, and internal control standards;
      2. complies with such policies and requirements as may be prescribed by the Director of the Office of Management and Budget;
      3. complies with any other requirements applicable to such systems; and
      4. provides for--
        1. 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;
        2. the development and reporting of cost information;
        3. the integration of accounting and budgeting information; and
        4. 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--
      1. 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;
      2. the development of agency financial management budgets;
      3. the recruitment, selection, and training of personnel to carry out agency financial management functions;
      4. the approval and management of agency financial management systems design or enhancement projects;
      5. 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 afterthe 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--
      1. a description and analysis of the status of financial management of the agency;
      2. the annual financial statements prepared under section 3515 of this title;
      3. the audit report transmitted to the head of the agency under section 3521(f) of this title;
      4. 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
      5. 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.
    1. In addition to the authority otherwise provided by this section, each agency Chief Financial Officer--
      1. 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;
      2. 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
      3. to the extent and in such amounts as may be provided in advance by appropriations Acts, may--
        1. 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
        2. 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
  1. 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.
  2. 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: 9. Agency Chief Financial Officers............................... 901..
  3. 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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.

  1. 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..
  2. 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..
  3. 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:
* * * * *
    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--
      1. a description and analysis of the status of financial management in the executive branch;
      2. a summary of the most recently completed financial statements-- (i) of Federal agencies under section 3515 of this title; and (ii) of Government corporations;
      3. 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;
      4. 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
      5. any other information the Director considers appropriate to fully inform the Congress regarding the financial management of the Federal Government.
      1. 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.
      2. Each governmentwide 5-year financial management plan prepared under this subsection shall--
        1. describe the existing financial management structure and any changes needed to establish an integrated financial management system;
        2. be consistent with applicable accounting principles, standards, and requirements;
        3. 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;
        4. 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;
        5. identify projects to bring existing systems into compliance with the applicable standards and requirements;
        6. contain milestones for equipment acquisitions and other actions necessary to implement the 5- year plan consistent with the requirements of this section;
        7. identify financial management personnel needs and actions to ensure those needs are met;
        8. include a plan for ensuring the annual audit of financial statements of executive agencies pursuant to section 3521(h) of this title; and
        9. estimate the costs of implementing the governmentwide 5-year plan.
      1. 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.
      2. (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.
    3. 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.
  1. 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.

  1. 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.
  2. 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.

  1. 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: Sec. 3515. Financial statements of agencies
      1. 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.
      2. 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.
      3. 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.
      4. 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.
      5. 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.
  2. 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.--
      1. 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.
      2. 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.
      3. 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.
      4. 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.
      5. 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.
      6. 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).
  3. 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.
  4. 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.
  5. 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.
  6. 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.

  1. 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..
  2. 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
    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--
      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 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
      3. 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.
  1. 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, work papers, 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.
  2. 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.

  1. In General.--Section 9106 of title 31, United States Code, is amended to read as follows: Sec. 9106. Management reports
      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--
        1. a statement of financial position;
        2. a statement of operations;
        3. a statement of cash flows;
        4. a reconciliation to the budget report of the Government corporation, if applicable;
        5. 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);
        6. the report resulting from an audit of the financial statements of the corporation conducted under section 9105 of this title; and
        7. any other comments and information necessary to inform the Congress about the operations and financial condition of the corporation.
    1. 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..
  2. 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.