Taxpayer Funds Oversight and Accountability Act
This bill requires the Office of Management and Budget (OMB) to take certain actions to improve financial management systems across the federal government and expands the responsibilities of federal agency Chief Financial Officers (CFOs).
The bill requires OMB to submit a four-year governmentwide financial management plan to Congress within six months of enactment and thereafter with the budget submitted in the first full fiscal year following the start of a presidential term. Such plans must address certain topics, including strategies for (1) improving financial management systems; (2) strengthening the financial management workforce; and (3) reporting performance and cost information. OMB must annually submit related status reports to Congress and the Government Accountability Office.
Each agency CFO is assigned new responsibilities, including
The bill establishes new requirements for audits of agency accounts, such as having auditors evaluate the design of the agency's internal controls over financial reporting.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1558 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 1558
To modify the governmentwide financial management plan, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 25, 2025
Mr. Connolly (for himself, Ms. Norton, Mr. Lynch, Mr. Krishnamoorthi,
Mr. Khanna, Mr. Mfume, Ms. Brown, Ms. Stansbury, Mr. Garcia of
California, Mr. Frost, Ms. Lee of Pennsylvania, Ms. Crockett, Ms.
Randall, Mr. Subramanyam, Ms. Ansari, Mr. Bell, Ms. Simon, Mr. Min, and
Ms. Tlaib) introduced the following bill; which was referred to the
Committee on Oversight and Government Reform
_______________________________________________________________________
A BILL
To modify the governmentwide financial management plan, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Taxpayer Funds Oversight and
Accountability Act''.
SEC. 2. CHIEF FINANCIAL OFFICERS; GOVERNMENTWIDE FINANCIAL MANAGEMENT
PLAN.
(a) Chief Financial Officer and Deputy Chief Financial Officer.--
Chapter 9 of title 31, United States Code, is amended--
(1) in section 902(a)--
(A) in the matter preceding paragraph (1), by
striking ``An'' and inserting ``It shall be the duty
and responsibility of each agency Chief Financial
Officer to oversee and provide leadership in the areas
of budget formulation and execution, planning and
performance, risk management, internal controls,
financial systems, accounting, and other areas as the
Director of the Office of Management and Budget may
designate. In carrying out the preceding sentence,
each'';
(B) in paragraph (3)--
(i) in subparagraph (C), by inserting
``areas and'' before ``systems''; and
(ii) in subparagraph (D)--
(I) in clause (iii), by striking
``and'' at the end;
(II) in clause (iv), by striking
``performance;'' and inserting
``performance and integration of
performance and cost information;
and''; and
(III) by adding at the end the
following:
``(v) annual agency financial statements
prepared in accordance with United States
generally accepted accounting principles;'';
(C) by redesignating paragraphs (5), (6), (7), and
(8) as paragraphs (7), (8), (9), and (11) respectively;
(D) by inserting after paragraph (4) the following:
``(5) oversee and provide leadership over the design,
implementation, and operation of the internal controls of the
agency over financial reporting and key financial management
information identified under section 3512(e)(1);
``(6) prepare, in consultation with financial management
and other appropriate experts, an agency plan to implement the
4-year financial management plan prepared by the Director of
the Office of Management and Budget under section 3512(a)(2) of
this title and to achieve and sustain effective financial
management in the agency, which shall--
``(A) be completed within 90 days after the
issuance of a governmentwide plan under such section
3512(a)(2);
``(B) be revised as determined necessary by the
Chief Financial Officer;
``(C) include performance-based financial
management metrics against which the financial
management performance of the agency shall be assessed;
and
``(D) be submitted upon completion or revision to
the head of the agency, the Director of the Office of
Management and Budget, the Comptroller General, and
appropriate committees of Congress, and be made
publicly available;'';
(E) in paragraph (7), as so redesignated--
(i) by striking subparagraph (A);
(ii) by redesignating subparagraphs (B)
through (E) as subparagraphs (A) through (D),
respectively; and
(iii) in subparagraph (C), as so
redesignated, by adding ``and'' at the end;
(F) in paragraph (8), as so redesignated--
(i) in the matter preceding subparagraph
(A), by striking ``and the Director of the
Office of Management and Budget,'' and
inserting ``, the Director of the Office of
Management and Budget, the Comptroller General,
and appropriate committees of Congress, which
shall be made publicly available and'';
(ii) in subparagraph (A), by striking
``agency;'' and inserting ``agency, including--
``(i) the progress of the agency in
implementing the agency plan described in
paragraph (5);
``(ii) the progress of the agency in
implementing the governmentwide 4-year
financial management plan prepared by the
Director of the Office of Management and Budget
under section 3512(a)(2) of this title; and
``(iii) the performance of the agency
against financial management metrics
established by the Director of the Office of
Management and Budget;''; and
(iii) in subparagraph (D)--
(I) by striking ``of the reports''
and inserting ``of--
``(i) the reports'';
(II) in clause (i), as so
designated, by striking ``the
amendments made by the Federal
Managers' Financial Integrity Act of
1982 (Public law 97-255); and'' and
inserting ``section 3512(d) of this
title;''; and
(III) by adding at the end the
following:
``(ii) agency spending data published under
the Federal Funding Accountability and
Transparency Act of 2006 (31 U.S.C. 6101 note);
and
``(iii) the reporting of the agency under
the Federal Financial Management Improvement
Act of 1996 (31 U.S.C. 3512 note); and'';
(G) in paragraph (9), as so redesignated--
(i) by striking ``monitor the'' and insert
``manage the formulation and''; and
(ii) by striking ``, and prepare and submit
to the head of the agency timely performance
reports; and'' and inserting a semicolon;
(H) by inserting after paragraph (9), as so
redesignated, the following:
``(10) be responsible for linking performance and cost
information, including the preparation and submission to the
head of the agency of timely performance reports that
incorporate cost information;'';
(I) in paragraph (11), as so redesignated--
(i) by inserting ``inflation and'' before
``costs''; and
(ii) by striking the period at the end and
inserting ``; and''; and
(J) by adding at the end the following:
``(12) coordinate with senior agency personnel, including
the Chief Data Officer, Chief Information Officer, Chief
Performance Officer, Chief Acquisition Officer, Chief Risk
Officer, and Chief Evaluation Officer of the agency on--
``(A) the exercise of authorities under this
subsection; and
``(B) the strategic planning, performance
measurement and reporting, and risk management
functions of the agency.''; and
(2) in section 903--
(A) in subsection (a), by inserting ``and who shall
assist the agency Chief Financial Officer in the
performance of each of the duties of the agency Chief
Financial Officer under this chapter'' after
``matters''; and
(B) by adding at the end the following:
``(c) Notwithstanding subchapter III of chapter 33 of title 5, in
the event of a vacancy in the position of Chief Financial Officer of an
agency, the Deputy Chief Financial Officer of the agency shall serve as
the acting Chief Financial Officer.''.
(b) Governmentwide Financial Management Plan.--Section 3512 of
title 31, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``a financial
management status report and a governmentwide 5-year
financial management plan'' and inserting ``a
governmentwide 4-year financial management plan and a
financial management status report'';
(B) by striking paragraph (2);
(C) by redesignating paragraph (3) as paragraph
(2);
(D) in paragraph (2), as so redesignated--
(i) in subparagraph (A)--
(I) by striking ``5-year'' and
inserting ``4-year'';
(II) by striking ``shall describe''
and inserting the following: ``shall--
``(i) describe'';
(III) in clause (i), as so
designated, by striking ``5 fiscal
years to improve the financial
management of the Federal Government.''
and inserting ``4 fiscal years to
improve the financial management of the
Federal Government in a manner that is
strategic, comprehensive, and cost-
effective; and''; and
(IV) by adding at the end the
following:
``(ii) be developed in consultation with the Chief
Financial Officers Council, the Chief Information
Officers Council, the Chief Data Officer Council, the
Chief Acquisition Officers Council, the Council of the
Inspectors General on Integrity and Efficiency, the
Government Accountability Office, and, as appropriate,
other councils and financial management experts.''; and
(ii) in subparagraph (B)--
(I) in the matter preceding clause
(i), by striking ``5-year'' and
inserting ``4-year'';
(II) in clause (iii)--
(aa) by striking ``for
developing'' and inserting
``for improving financial
management systems, including--
``(I) developing''; and
(bb) by adding at the end
the following:
``(II) linking performance and cost information to
facilitate effective and efficient decision making;
``(III) eliminating duplicative and unnecessary
systems and activities; and
``(IV) identifying opportunities for agencies to
share systems and services and encouraging agencies to
do so where practicable;'';
(III) by striking clause (iv);
(IV) by redesignating clause (v) as
clause (iv);
(V) by inserting after clause (iv),
as so redesignated, the following:
``(v) provide a strategy for reporting performance and cost
information;'';
(VI) in clause (vi), by striking
``5-year'' and inserting ``4-year'';
(VII) in clause (vii), by striking
``identify'' and inserting ``provide a
strategy for strengthening the Federal
financial management workforce,
including identification of'';
(VIII) in clause (viii), by
striking ``and'' at the end;
(IX) by redesignating clause (ix)
as clause (x);
(X) by inserting after clause
(viii) the following:
``(ix) include comprehensive financial management
performance-based metrics against which the financial
management performance of executive agencies can be assessed;
and''; and
(XI) in clause (x), as so
redesignated, by striking ``5-year''
and inserting ``4-year'';
(E) by inserting after paragraph (2) the following:
``(3) A financial management status report under this subsection
shall include--
``(A) a description and analysis of the status of financial
management in the executive branch, including the progress made
towards implementing the governmentwide 4-year financial
management plan, the status of remaining challenges, and, as
necessary based on obligations or expenditures, any update or
revision to the cost estimates included in the most recent
governmentwide 4-year financial management plan;
``(B) a summary of the performance of agencies against the
metrics developed and identified by the Director of the Office
of Management and Budget in the governmentwide 4-year financial
management plan;
``(C) a summary of the most recently completed financial
statements--
``(i) of Federal agencies under section 3515 of
this title; and
``(ii) of Government corporations;
``(D) a summary of the most recently completed financial
statement audits and reports--
``(i) of Federal agencies under subsections (e) and
(f) of section 3521 of this title; and
``(ii) of Government corporations;
``(E) a summary of reports on internal accounting and
administrative control systems submitted to the President and
Congress under subsection (d);
``(F) a listing of agencies whose financial management
systems do not comply substantially with the requirements of
section 803(a) of the Federal Financial Management Improvement
Act of 1996 (31 U.S.C. 3512 note), and a summary statement of
the efforts underway to remedy the noncompliance; and
``(G) any other information the Director considers
appropriate to fully inform Congress regarding the financial
management of the Federal Government.'';
(F) in paragraph (4)--
(i) in subparagraph (A)--
(I) by striking ``15 months after
the date of the enactment of this
subsection'' and inserting ``6 months
after the date of the enactment of the
Taxpayer Funds Oversight and
Accountability Act''; and
(II) by striking ``5-year'' and
inserting ``4-year'';
(ii) in subparagraph (B)--
(I) in clause (i)--
(aa) by striking ``Not
later than January 31 of each
year thereafter'' and inserting
``At a minimum, concurrently
with the submission of the
budget of the United States
Government under section
1105(a) of this title made in
the first full fiscal year
following any year in which the
term of the President commences
under section 101 of title 3'';
(bb) by striking
``financial management status
report and a revised
governmentwide 5-year'' and
inserting ``governmentwide 4-
year''; and
(cc) by striking ``5 fiscal
years'' and all that follows
through the period at the end
and inserting ``4 fiscal
years.''; and
(II) in clause (ii)--
(aa) by striking ``revised
governmentwide 5-year'' and
inserting ``governmentwide 4-
year''; and
(bb) by striking
``paragraph (3)(B)(viii)'' and
inserting ``paragraph
(2)(B)(viii)''; and
(iii) by adding at the end the following:
``(C) Each year, concurrently with the submission of the budget of
the United States Government under section 1105(a) of this title, the
Director of the Office of Management and Budget shall submit to the
appropriate committees of Congress and the Comptroller General a
financial management status report.''; and
(G) by striking paragraph (5);
(2) in subsection (d)(2)--
(A) in subparagraph (A), by striking ``and'' at the
end;
(B) in subparagraph (B), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) a separate report on the results of the assessment
and conclusion required under subsection (e)(2).'';
(3) by redesignating subsections (e), (f), and (g) as
subsections (f), (g), and (h), respectively; and
(4) by inserting after subsection (d) the following:
``(e) The head of each executive agency shall--
``(1) in establishing the internal accounting and
administrative controls under subsection (c), identify the key
financial management information needed for effective financial
management and decision making, which shall include--
``(A) the agency spending data required to be
published under the Federal Funding Accountability and
Transparency Act of 2006 (31 U.S.C. 6101 note); and
``(B) the information used by the agency to report
on improper payments under section 3352 of this title;
and
``(2) annually assess and make a conclusion on the
effectiveness of the internal controls of the executive agency
over financial reporting and key financial management
information identified under paragraph (1).''.
(c) Audits by Agencies.--Section 3521 of title 31, United States
Code, is amended--
(1) in subsection (e)--
(A) by striking paragraphs (1) and (2);
(B) by striking ``(e) Each financial'' and
inserting ``(e)(1) Each financial'';
(C) in paragraph (1), as so designated, by striking
``standards--'' and inserting ``standards.''; and
(D) by inserting after paragraph (1), as so
designated, the following:
``(2) As part of each audit under this subsection, the auditor
shall--
``(A) evaluate the design of the internal control of the
agency over financial management reporting and key financial
information, as assessed and reported on by the head of the
agency under section 3512(d)(2)(C) of this title;
``(B) determine whether those controls have been
implemented;
``(C) for controls that are properly designed and
implemented, perform sufficient tests of those controls to
conclude whether the controls are operating effectively,
including sufficient tests to support a low level of assessed
control risk; and
``(D) communicate controls that the auditor concludes are
not suitably designed and implemented or are not operating
effectively, as appropriate under applicable generally accepted
government auditing standards.
``(3) Audits under this subsection shall be conducted--
``(A) 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
``(B) in any other case, by an independent external
auditor, as determined by the head of the agency.''; and
(2) in subsection (h), by striking ``section
3512(a)(3)(B)(viii)'' and inserting ``section
3512(a)(2)(B)(viii)''.
(d) Technical and Conforming Amendment.--Section 3348(e) of title
5, United States Code, is amended--
(1) in paragraph (3), by adding ``or'' at the end;
(2) by striking paragraph (4); and
(3) by redesignating paragraph (5) as paragraph (4).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Oversight and Government Reform.
ASSUMING FIRST SPONSORSHIP - Mr. Min asked unanimous consent that he may hereafter be considered as the first sponsor of H.R. 1558, a bill originally introduced by Representative Connolly, for the purpose of adding cosponsors and requesting reprintings pursuant to clause 7 of rule XII. Agreed to without objection.
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