II Calendar No. 535 112th CONGRESS 2d Session S. 1998 [Report No. 112–230] IN THE SENATE OF THE UNITED STATES December 15, 2012 Mr. Brown of Massachusetts (for himself, Mr. Carper, and Mr. Johnson of Wisconsin) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs November 2, 2012 Reported under authority of the order of the Senate of September 22 (legislative day, September 21), 2012, by Mr. Lieberman, with an amendment Strike out all after the enacting clause and insert the part printed in italic A BILL To obtain an unqualified audit opinion, and improve financial accountability and management at the Department of Homeland Security.

1.

Short title

This Act may be cited as the Department of Homeland Security Improved Financial Accountability Act of 2011.

2.

Improving financial accountability and management

(a)

Definitions

In this section— (1)the term Department means the Department of Homeland Security; (2)the terms qualified opinion and unqualified opinion mean a qualified opinion and an unqualified opinion, respectively, within the meanings given those terms under generally accepted government auditing standards; and (3)the term Secretary means the Secretary of Homeland Security. (b)

Reaching an unqualified audit opinion

In order to ensure compliance with the Department of Homeland Security Financial Accountability Act (Public Law 108–330; 118 Stat. 1275) and the amendments made by that Act, the Secretary shall— (1)take the necessary steps to ensure that the balance sheet of the Department and associated statement of custodial activity for the fiscal years ending September 30, 2012 and September 30, 2013 are ready in a timely manner and in preparation for an audit as part of preparing the performance and accountability reports required under section 3516(f) of title 31, United States Code, including submitting the reports not later than November 15, 2012 and November 15, 2013, respectively, in order to obtain a qualified or unqualified opinion; (2)take the necessary steps to ensure that the full set of consolidated financial statements of the Department for the fiscal years ending September 30, 2014 and September 30, 2015 are ready in a timely manner and in preparation for an audit as part of preparing the performance and accountability reports required under section 3516(f) of title 31, United States Code, including submitting the reports not later than November 15, 2014 and November 15, 2015, respectively, in order to obtain a qualified or unqualified opinion; and (3)take the necessary steps to ensure that the full set of consolidated financial statements of the Department for the fiscal year ending September 30, 2016, and each fiscal year thereafter, are ready in a timely manner and in preparation for an audit as part of preparing the performance and accountability reports required under section 3516(f) of title 31, United States Code, including submitting the reports not later than November 15, 2016, and each year thereafter, in order to obtain an unqualified opinion. (c)

Report to Congress on progress of meeting audit requirements

Not later than 270 days after the date of enactment of this Act, and annually thereafter until an unqualified opinion is submitted under paragraph (2) or (3) of subsection (b), and in order to ensure progress in implementing the Department of Homeland Security Financial Accountability Act (Public Law 108–330; 118 Stat. 1275) and the amendments made by that Act, the Chief Financial Officer of the Department shall submit to Congress a report on the plans to obtain an unqualified opinion, which shall discuss plans and resources needed to meet the deadlines under subsection (b). (d)

Report To Congress on plans To modernize financial systems

(1)

In general

Not later than 270 days after the date of enactment of this Act, and in order to improve financial management at the Department, the Chief Financial Officer of the Department shall submit to Congress and the Comptroller General of the United States a report on the plans of the Department and resources needed to modernize the financial systems of the Department. (2)

Contents

The report submitted under paragraph (1) shall discuss— (A)the challenges of and opportunities for using existing financial systems of the Department, including an assessment of the feasibility and cost of using an existing financial system; (B)the challenges and opportunities of implementing a new financial system and associated financial controls; and (C)the lessons learned from the prior attempts of the Department to develop a financial system that will be considered in implementing a new financial system. (3)

Review

Not later than 180 days after the date on which the Chief Financial Officer of the Department submits the report under paragraph (1), the Comptroller General of the United States shall review the report and submit to Congress a report that provides— (A)an assessment of the status of the financial system modernization by the Department; (B)an evaluation of the report; (C)an assessment of the plans to modernize, and developments at the Department relating to, the financial system of the Department; and (D)any recommendations for improving the plans for a new financial system at the Department.

1.

Short title

This Act may be cited as the DHS Audit Requirement Target Act of 2012 or the DART Act.

2.

Improving financial accountability and management

(a)

Definitions

In this section— (1)the term Department means the Department of Homeland Security; (2)the term financial management systems has the meaning given that term under section 806 of the Federal Financial Management Improvement Act of 1996 (31 U.S.C. 3512 note); (3)the term Secretary means the Secretary of Homeland Security; and (4)the term unqualified opinion mean an unqualified opinion within the meaning given that term under generally accepted auditing standards. (b)

Reaching an unqualified audit opinion

In order to ensure compliance with the Department of Homeland Security Financial Accountability Act (Public Law 108–330; 118 Stat. 1275) and the amendments made by that Act, the Secretary shall take the necessary steps to ensure that the full set of consolidated financial statements of the Department for the fiscal year ending September 30, 2013, and each fiscal year thereafter, are ready in a timely manner and in preparation for an audit as part of preparing the performance and accountability reports required under section 3516(f) of title 31, United States Code, (including submitting the reports not later than November 15, 2013, and each year thereafter) in order to obtain an unqualified opinion on the full set of financial statements for the fiscal year. (c)

Report to Congress on progress of meeting audit requirements

In order to ensure progress in implementing the Department of Homeland Security Financial Accountability Act (Public Law 108–330; 118 Stat. 1275), and the amendments made by that Act, during the period beginning on the date of enactment of this Act and ending on the date on which an unqualified opinion described in subsection (b) is submitted, each report submitted by the Chief Financial Officer of the Department under section 902(a)(6) of title 31, United States Code, shall include a plan— (1)to obtain an unqualified opinion on the full set of financial statements, which shall discuss plans and resources needed to meet the deadlines under subsection (b); (2)that addresses how the Department will eliminate material weaknesses and significant deficiencies in internal controls over financial reporting and provides deadlines for the elimination of such weaknesses and deficiencies; and (3)to modernize the financial management systems of the Department, including timelines, goals, alternatives, and costs of the plan, which shall include consideration of alternative approaches, including modernizing the existing financial management systems and associated financial controls of the Department and establishing new financial management systems and associated financial controls.

November 2, 2012 Reported under authority of the order of the Senate of September 22 (legislative day, September 21), 2012, by Mr. Lieberman, with an amendment