Improving Federal Financial Management 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]
[S. 75 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 75
To modify the governmentwide financial management plan, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 13, 2025
Mr. Lankford introduced 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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Improving Federal Financial
Management 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 paragraph (8) as paragraph
(10);
(D) by redesignating paragraphs (5) through (7) as
paragraphs (6) through (8), respectively;
(E) by inserting after paragraph (4) the following:
``(5) 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 of the issuance of a
governmentwide plan under section 3512(a)(2) of this title;
``(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;'';
(F) in paragraph (6), 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;
(G) in paragraph (7), 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'';
(H) in paragraph (8), 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;
(I) by inserting after paragraph (8), as so
redesignated, the following:
``(9) 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;'';
(J) in paragraph (10), as so redesignated--
(i) by inserting ``inflation and'' before
``costs''; and
(ii) by striking the period at the end and
inserting ``; and''; and
(K) by adding at the end the following:
``(11) 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 updates or
revisions 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 enactment of the
Improving Federal Financial Management
Act''; and
(II) by striking ``5-year'' and
inserting ``4-year''; and
(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; 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 redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and adjusting
the margins accordingly;
(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 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--''; 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 Senate
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
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