119-hr1558

[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) .
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