[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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