[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4700 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 4700

 To modify the governmentwide financial management plan, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 11 (legislative day, July 10), 2024

 Mr. Lankford introduced the following bill; which was read twice and 
referred to the Committee on Homeland Security and Governmental Affairs

_______________________________________________________________________

                                 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 ``Improving Federal Financial 
Management 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 paragraph (8) as paragraph 
                (10);
                    (D) by redesignating paragraphs (5) through (7) as 
                paragraphs (6) through (8), respectively;
                    (E) by inserting after paragraph (4) the following:
    ``(5) 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 of the issuance of a 
        governmentwide plan under section 3512(a)(2) of this title;
            ``(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;'';
                    (F) in paragraph (6), 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;
                    (G) in paragraph (7), 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 
                                1987 (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'';
                    (H) in paragraph (8), 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;
                    (I) by inserting after paragraph (8), as so 
                redesignated, the following:
    ``(9) 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;'';
                    (J) in paragraph (10), as so redesignated--
                            (i) by inserting ``inflation and'' before 
                        ``costs''; and
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                    (K) by adding at the end the following:
            ``(11) 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 updates or 
        revisions 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 enactment of the 
                                Improving Federal Financial Management 
                                Act''; and
                                    (II) by striking ``5-year'' and 
                                inserting ``4-year''; and
                            (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; 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 redesignating paragraphs (1) and (2) as 
                subparagraphs (A) and (B), respectively, and adjusting 
                the margins accordingly;
                    (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 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--''; 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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