[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4259 Enrolled Bill (ENR)]
H.R.4259
One Hundred Eighth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Tuesday,
the twentieth day of January, two thousand and four
An Act
To amend title 31, United States Code, to improve the financial
accountability requirements applicable to the Department of Homeland
Security, to establish requirements for the Future Years Homeland
Security Program of the Department, 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 ``Department of Homeland Security
Financial Accountability Act''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Influential financial management leadership is of vital
importance to the mission success of the Department of Homeland
Security. For this reason, the Chief Financial Officer of the
Department must be a key figure in the Department's management.
(2) To provide a sound financial leadership structure, the
provisions of law enacted by the Chief Financial Officers Act of
1990 (Public Law 101-576) provide that the Chief Financial Officer
of each of the Federal executive departments is to be a
Presidential appointee who reports directly to the Secretary of
that department on financial management matters. Because the
Department of Homeland Security was only recently created, the
provisions enacted by that Act must be amended to include the
Department within these provisions.
(3) The Department of Homeland Security was created by
consolidation of 22 separate Federal agencies, each with its own
accounting and financial management system. None of these systems
was developed with a view to executing the mission of the
Department of Homeland Security to prevent terrorist attacks within
the United States, reduce the Nation's vulnerability to terrorism,
and minimize the damage and assist in the recovery from terrorist
attacks. For these reasons, a strong Chief Financial Officer is
needed within the Department both to consolidate financial
management operations, and to insure that management control
systems are comprehensively designed to achieve the mission and
execute the strategy of the Department.
(4) The provisions of law enacted by the Chief Financial
Officers Act of 1990 require agency Chief Financial Officers to
improve the financial information available to agency managers and
the Congress. Those provisions also specify that agency financial
management systems must provide for the systematic measurement of
performance. In the case of the Department of Homeland Security,
therefore, it is vitally important that management control systems
be designed with a clear view of a homeland security strategy,
including the priorities of the Department in addressing those
risks of terrorism deemed most significant based upon a
comprehensive assessment of potential threats, vulnerabilities,
criticality, and consequences. For this reason, Federal law should
be amended to clearly state the responsibilities of the Chief
Financial Officer of the Department of Homeland Security to provide
management control information, for the benefit of managers within
the Department and to help inform the Congress, that permits an
assessment of the Department's performance in executing a homeland
security strategy.
SEC. 3. CHIEF FINANCIAL OFFICER OF THE DEPARTMENT OF HOMELAND SECURITY.
(a) In General.--Section 901(b)(1) of title 31, United States Code,
is amended--
(1) by redesignating subparagraphs (G) through (P) as
subparagraphs (H) through (Q), respectively; and
(2) by inserting after subparagraph (F) the following:
``(G) The Department of Homeland Security.''.
(b) Appointment or Designation of CFO.--The President shall appoint
or designate a Chief Financial Officer of the Department of Homeland
Security under the amendment made by subsection (a) by not later than
180 days after the date of the enactment of this Act.
(c) Continued Service of Current Official.--An individual serving
as Chief Financial Officer of the Department of Homeland Security
immediately before the enactment of this Act, or another person who is
appointed to replace such an individual in an acting capacity after the
enactment of this Act, may continue to serve in that position until the
date of the confirmation or designation, as applicable (under section
901(a)(1)(B) of title 31, United States Code), of a successor under the
amendment made by subsection (a).
(d) Conforming Amendments.--
(1) Homeland security act of 2002.--The Homeland Security Act
of 2002 (Public Law 107-296) is amended--
(A) in section 103 (6 U.S.C. 113)--
(i) in subsection (d) by striking paragraph (4), and
redesignating paragraph (5) as paragraph (4);
(ii) by redesignating subsection (e) as subsection (f);
and
(iii) by inserting after subsection (d) the following:
``(e) Chief Financial Officer.--There shall be in the Department a
Chief Financial Officer, as provided in chapter 9 of title 31, United
States Code.''; and
(B) in section 702 (6 U.S.C. 342) by striking ``shall
report'' and all that follows through the period and inserting
``shall perform functions as specified in chapter 9 of title
31, United States Code, and, with respect to all such functions
and other responsibilities that may be assigned to the Chief
Financial Officer from time to time, shall also report to the
Under Secretary for Management.''.
(2) FEMA.--Section 901(b)(2) of title 31, United States Code,
is amended by striking subparagraph (B), and by redesignating
subparagraphs (C) through (H) in order as subparagraphs (B) through
(G).
SEC. 4. FUNCTIONS OF CHIEF FINANCIAL OFFICER OF THE DEPARTMENT OF
HOMELAND SECURITY.
(a) Performance and Accountability Reports.--Section 3516 of title
31, United States Code, is amended by adding at the end the following:
``(f) The Secretary of Homeland Security--
``(1) shall for each fiscal year submit a performance and
accountability report under subsection (a) that incorporates the
program performance report under section 1116 of this title for the
Department of Homeland Security;
``(2) shall include in each performance and accountability
report an audit opinion of the Department's internal controls over
its financial reporting; and
``(3) shall design and implement Department-wide management
controls that--
``(A) reflect the most recent homeland security strategy
developed pursuant to section 874(b)(2) of the Homeland
Security Act of 2002; and
``(B) permit assessment, by the Congress and by managers
within the Department, of the Department's performance in
executing such strategy.''.
(b) Implementation of Audit Opinion Requirement.--The Secretary of
Homeland Security shall include audit opinions in performance and
accountability reports under section 3516(f) of title 31, United States
Code, as amended by subsection (a), only for fiscal years after fiscal
year 2005.
(c) Assertion of Internal Controls.--The Secretary of Homeland
Security shall include in the performance and accountability report for
fiscal year 2005 submitted by the Secretary under section 3516(f) of
title 31, United States Code, an assertion of the internal controls
that apply to financial reporting by the Department of Homeland
Security.
(d) Audit Opinions of Internal Controls Over Financial Reporting by
Chief Financial Officer Agencies.--
(1) In general.--Not later than 180 days after the date of the
enactment of this Act, the Chief Financial Officers Council and the
President's Council on Integrity and Efficiency established by
Executive Order 12805 of May 11, 1992, shall jointly conduct a
study of the potential costs and benefits of requiring the agencies
listed in section 901(b) of title 31, United States Code, to obtain
audit opinions of their internal controls over their financial
reporting.
(2) Report.--Upon completion of the study under paragraph (1),
the Chief Financial Officers Council and the President's Council on
Integrity and Efficiency shall promptly submit a report on the
results of the study to the Committee on Government Reform of the
House of Representatives, the Committee on Governmental Affairs of
the Senate, and the Comptroller General of the United States.
(3) General accounting office analysis.--Not later than 90 days
after receiving the report under paragraph (2), the Comptroller
General shall perform an analysis of the information provided in
the report and report the findings of the analysis to the
committees referred to in paragraph (2).
SEC. 5. FUTURE YEARS HOMELAND SECURITY PROGRAM AND HOMELAND SECURITY
STRATEGY.
Section 874 of the Homeland Security Act of 2002 (6 U.S.C. 112) is
amended by striking subsection (b) and inserting the following:
``(b) Contents.--The Future Years Homeland Security Program under
subsection (a) shall--
``(1) include the same type of information, organizational
structure, and level of detail as the future years defense program
submitted to Congress by the Secretary of Defense under section 221
of title 10, United States Code;
``(2) set forth the homeland security strategy of the
Department, which shall be developed and updated as appropriate
annually by the Secretary, that was used to develop program
planning guidance for the Future Years Homeland Security Program;
and
``(3) include an explanation of how the resource allocations
included in the Future Years Homeland Security Program correlate to
the homeland security strategy set forth under paragraph (2).''.
SEC. 6. ESTABLISHMENT OF OFFICE OF PROGRAM ANALYSIS AND EVALUATION.
Section 702 of the Homeland Security Act of 2002 (6 U.S.C. 342) is
amended by--
(1) inserting ``(a) In General.--'' before the first sentence;
and
(2) adding at the end the following:
``(b) Program Analysis and Evaluation Function.--
``(1) Establishment of office of program analysis and
evaluation.--Not later than 90 days after the date of enactment of
this subsection, the Secretary shall establish an Office of Program
Analysis and Evaluation within the Department (in this section
referred to as the `Office').
``(2) Responsibilities.--The Office shall perform the following
functions:
``(A) Analyze and evaluate plans, programs, and budgets of
the Department in relation to United States homeland security
objectives, projected threats, vulnerability assessments,
estimated costs, resource constraints, and the most recent
homeland security strategy developed pursuant to section
874(b)(2).
``(B) Develop and perform analyses and evaluations of
alternative plans, programs, personnel levels, and budget
submissions for the Department in relation to United States
homeland security objectives, projected threats, vulnerability
assessments, estimated costs, resource constraints, and the
most recent homeland security strategy developed pursuant to
section 874(b)(2).
``(C) Establish policies for, and oversee the integration
of, the planning, programming, and budgeting system of the
Department.
``(D) Review and ensure that the Department meets
performance-based budget requirements established by the Office
of Management and Budget.
``(E) Provide guidance for, and oversee the development of,
the Future Years Homeland Security Program of the Department,
as specified under section 874.
``(F) Ensure that the costs of Department programs,
including classified programs, are presented accurately and
completely.
``(G) Oversee the preparation of the annual performance
plan for the Department and the program and performance section
of the annual report on program performance for the Department,
consistent with sections 1115 and 1116, respectively, of title
31, United States Code.
``(H) Provide leadership in developing and promoting
improved analytical tools and methods for analyzing homeland
security planning and the allocation of resources.
``(I) Any other responsibilities delegated by the Secretary
consistent with an effective program analysis and evaluation
function.
``(3) Director of program analysis and evaluation.--There shall
be a Director of Program Analysis and Evaluation, who--
``(A) shall be a principal staff assistant to the Chief
Financial Officer of the Department for program analysis and
evaluation; and
``(B) shall report to an official no lower than the Chief
Financial Officer.
``(4) Reorganization.--
``(A) In general.--The Secretary may allocate or reallocate
the functions of the Office, or discontinue the Office, in
accordance with section 872(a).
``(B) Exemption from limitations.--Section 872(b) shall not
apply to any action by the Secretary under this paragraph.''.
SEC. 7. NOTIFICATION REGARDING TRANSFER OR REPROGRAMMING OF FUNDS FOR
DEPARTMENT OF HOMELAND SECURITY.
Section 702 of the Homeland Security Act of 2002 (6 U.S.C. 342) is
further amended by adding at the end the following:
``(c) Notification Regarding Transfer or Reprogramming of Funds.--
In any case in which appropriations available to the Department or any
officer of the Department are transferred or reprogrammed and notice of
such transfer or reprogramming is submitted to the Congress (including
any officer, office, or Committee of the Congress), the Chief Financial
Officer of the Department shall simultaneously submit such notice to
the Select Committee on Homeland Security (or any successor to the
jurisdiction of that committee) and the Committee on Government Reform
of the House of Representatives, and to the Committee on Governmental
Affairs of the Senate.''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.