[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8340 Engrossed in House (EH)]
<DOC>
119th CONGRESS
2d Session
H. R. 8340
_______________________________________________________________________
AN ACT
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 ``Taxpayer Funds Oversight and
Accountability 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, unless specified otherwise in
law, provide leadership in the areas of budget
formulation and execution, planning and performance,
risk management, internal controls, financial systems,
accounting, and other areas as designated by the Deputy
Director of Management under their authorities
described in section 503 of this title. 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 applicable
accounting standards;'';
(C) by redesignating paragraphs (5), (6), (7), and
(8) as paragraphs (7), (8), (9), and (11) respectively;
(D) by inserting after paragraph (4) the following:
``(5) oversee and provide leadership over the design,
implementation, and operation of the internal controls of the
agency over financial reporting and key financial management
information identified under section 3512(e)(1);
``(6) 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 120 days after the
issuance of a governmentwide plan under such section
3512(a)(2);
``(B) be revised as determined necessary by the
Chief Financial Officer and the Director of the Office
of Management and Budget;
``(C) include 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;'';
(E) in paragraph (7), 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;
(F) in paragraph (8), 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
1982 (Public Law 97-255); and'' and
inserting ``section 3512(d) of this
title; and''; and
(III) by adding at the end the
following:
``(ii) the reporting of the agency under
the Federal Financial Management Improvement
Act of 1996 (31 U.S.C. 3512 note); and'';
(G) in paragraph (9), 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;
(H) by inserting after paragraph (9), as so
redesignated, the following:
``(10) coordinating with the responsible agency official to
ensure performance and cost information are linked, including
in the preparation and submission to the head of the agency of
timely performance reports that incorporate cost
information;'';
(I) in paragraph (11), as so redesignated--
(i) by inserting ``inflation and'' before
``costs''; and
(ii) by striking the period at the end and
inserting ``; and''; and
(J) by adding at the end the following:
``(12) coordinate with senior agency personnel, including
but not limited to, those with statutory, regulatory, and
related policy responsibility which may include 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, to be
included within the Federal Government performance plan
described in section 1115, 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
redesignated, 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 shall also include
strategies for enabling data sharing in
accordance with applicable law and
joint fraud prevention initiatives with
State (meaning a State of the United
States, the District of Columbia, a
territory or possession of the United
States, or a federally recognized
Indian tribe) and local governments
that administer federally funded
programs or disburse Federal funds on
behalf of the Federal Government;
and''; and
(IV) by adding at the end the
following:
``(ii) be developed in consultation with the Chief
Financial Officers Council and, as appropriate, other councils
and financial management experts, including the Chief
Information Officers Council, the Chief Data Officer Council,
the Chief Acquisition Officers Council, and the Government
Accountability Office, as determined by the Director of the
Office of Management and Budget in consultation with the Chief
Financial Officers Council.''; 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) describe how performance and cost
information are linked in order 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 financial management metrics against which
the 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, and
the status of remaining challenges to implementing the
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 ``12 months
after the date of the enactment of the
Taxpayer Funds Oversight and
Accountability Act''; and
(II) by striking ``5-year'' and
inserting ``4-year'';
(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, which shall include a
consideration of--
``(A) the agency spending data required to be
published under the Federal Funding Accountability and
Transparency Act of 2006 (31 U.S.C. 6101 note); and
``(B) the information used by the agency to report
on improper payments under section 3352 of this title;
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) consistent with
guidance provided by the Director of the Office of Management
and Budget.''.
(c) 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).
Passed the House of Representatives June 10, 2026.
Attest:
Clerk.
119th CONGRESS
2d Session
H. R. 8340
_______________________________________________________________________
AN ACT
To modify the governmentwide financial management plan, and for other
purposes.