[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4259 Introduced in House (IH)]
108th CONGRESS
2d Session
H. R. 4259
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 4, 2004
Mr. Platts (for himself, Mr. Tom Davis of Virginia, Mr. Waxman, Mr.
Towns, Mrs. Blackburn, Mr. Cox, and Mr. Turner of Texas) introduced the
following bill; which was referred to the Committee on Government
Reform, and in addition to the Select Committee on Homeland Security,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
_______________________________________________________________________
A BILL
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 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.''.
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