[Congressional Record Volume 140, Number 138 (Wednesday, September 28, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: September 28, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
 GOVERNMENT MANAGEMENT REFORM ACT OF 1994 FEDERAL FINANCIAL MANAGEMENT 
                              ACT OF 1994

                                 ______


                  GLENN (AND ROTH) AMENDMENT NO. 2598

  Mr. BOREN (for Mr. Glenn, for himself, and Mr. Roth) proposed an 
amendment to the bill (S. 2170) to provide a more effective, efficient, 
and responsive Government; as follows:

       On page 1, line 3, strike out all through line 10 on page 
     32 and insert in lieu thereof the following:

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Government 
     Management Reform Act of 1994''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.

                       TITLE I--LIMITATION ON PAY

Sec. 101. Limitation on certain annual pay adjustments.

                  TITLE II--HUMAN RESOURCE MANAGEMENT

Sec. 201. SES annual leave accumulation.

               TITLE III--STREAMLINING MANAGEMENT CONTROL

Sec. 301. Authority to increase efficiency in reporting to Congress.

                     TITLE IV--FINANCIAL MANAGEMENT

Sec. 401. Short title.
Sec. 402. Electronic payments.
Sec. 403. Franchise fund pilot programs.
Sec. 404. Simplification of management reporting process.
Sec. 405. Annual financial reports.
                       TITLE I--LIMITATION ON PAY

     SEC. 101. LIMITATION ON CERTAIN ANNUAL PAY ADJUSTMENTS.

       Effective as of December 31, 1994--
       (1) section 601(a)(2) of the Legislative Reorganization Act 
     of 1946 (2 U.S.C. 31(2)) is amended--
       (A) by striking out ``(2) Effective'' and inserting in lieu 
     thereof ``(2)(A) Subject to subparagraph (B), effective''; 
     and
       (B) by adding at the end thereof the following:
       ``(B) In no event shall the percentage adjustment taking 
     effect under subparagraph (A) in any calendar year (before 
     rounding), in any rate of pay, exceed the percentage 
     adjustment taking effect in such calendar year under section 
     5303 of title 5, United States Code, in the rates of pay 
     under the General Schedule.'';
       (2) section 104 of title 3, United States Code, is 
     amended--
       (A) in the first sentence by inserting ``(a)'' before 
     ``The'';
       (B) in the second sentence by striking out ``Effective'' 
     and inserting in lieu thereof ``Subject to subsection (b), 
     effective''; and
       (C) by adding at the end thereof the following:
       ``(b) In no event shall the percentage adjustment taking 
     effect under the second and third sentences of subsection (a) 
     in any calendar year (before rounding) exceed the percentage 
     adjustment taking effect in such calendar year under section 
     5303 of title 5 in the rates of pay under the General 
     Schedule.'';
       (3) section 5318 of title 5, United States Code, is 
     amended--
       (A) in the first sentence by striking out ``Effective'' and 
     inserting in lieu thereof ``(a) Subject to subsection (b), 
     effective''; and
       (B) by adding at the end thereof the following:
       ``(b) In no event shall the percentage adjustment taking 
     effect under subsection (a) in any calendar year (before 
     rounding), in any rate of pay, exceed the percentage 
     adjustment taking effect in such calendar year under section 
     5303 in the rates of pay under the General Schedule.''; and
       (4) section 461(a) of title 28, United States Code, is 
     amended--
       (A) by striking out ``(a) Effective'' and inserting in lieu 
     thereof ``(a)(1) Subject to paragraph (2), effective''; and
       (B) by adding at the end thereof the following:
       ``(2) In no event shall the percentage adjustment taking 
     effect under paragraph (1) in any calendar year (before 
     rounding), in any salary rate, exceed the percentage 
     adjustment taking effect in such calendar year under section 
     5303 of title 5 in the rates of pay under the General 
     Schedule.''.
                  TITLE II--HUMAN RESOURCE MANAGEMENT

     SEC. 201. SES ANNUAL LEAVE ACCUMULATION.

       (a) In General.--Effective on the first day of the first 
     applicable pay period beginning after the date of the 
     enactment of this Act, subsection (f) of section 6304 of 
     title 5, United States Code, is amended to read as follows:
       ``(f)(1) This subsection applies with respect to annual 
     leave accrued by an individual while serving in a position 
     in--
       ``(A) the Senior Executive Service;
       ``(B) the Senior Foreign Service;
       ``(C) the Defense Intelligence Senior Executive Service;
       ``(D) the Senior Cryptologic Executive Service; or
       ``(E) the Federal Bureau of Investigation and Drug 
     Enforcement Administration Senior Executive Service.
       ``(2) For purposes of applying any limitation on 
     accumulation under this section with respect to any annual 
     leave described in paragraph (1)--
       ``(A) `30 days' in subsection (a) shall be deemed to read 
     `90 days'; and
       ``(B) `45 days' in subsection (b) shall be deemed to read 
     `90 days'.''.
       (b) Use of Excess Leave.--Notwithstanding the amendment 
     made by subsection (a), in the case of an employee who, on 
     the effective date of subsection (a), is subject to 
     subsection (f) of section 6304 of title 5, United States 
     Code, and who has to such employee's credit annual leave in 
     excess of the maximum accumulation otherwise permitted by 
     subsection (a) or (b) of section 6304 (determined applying 
     the amendment made by subsection (a)), such excess annual 
     leave shall remain to the credit of the employee and be 
     subject to reduction, in the same manner as provided in 
     subsection (c) of section 6304.
               TITLE III--STREAMLINING MANAGEMENT CONTROL

     SEC. 301. AUTHORITY TO INCREASE EFFICIENCY IN REPORTING TO 
                   CONGRESS.

       (a) Purpose.--The purpose of this title is to improve the 
     efficiency of executive branch performance in implementing 
     statutory requirements for reports to Congress and committees 
     of Congress such as the elimination or consolidation of 
     duplicative or obsolete reporting requirements and 
     adjustments to deadlines that shall provide for more 
     efficient workload distribution or improve the quality of 
     reports.
       (b) Authority of the Director.--The Director of the Office 
     of Management and Budget may publish annually in the budget 
     submitted by the President to the Congress, recommendations 
     for consolidation, elimination, or adjustments in frequency 
     and due dates of statutorily required periodic reports to the 
     Congress or committees of Congress. For each recommendation, 
     the Director shall provide an individualized statement of the 
     reasons that support the recommendation. In addition, for 
     each report for which a recommendation is made, the Director 
     shall state with specificity the exact consolidation, 
     elimination, or adjustment in frequency or due date that is 
     recommended.
       (c) Recommendations.--The Director's recommendations shall 
     be consistent with the purpose stated in subsection (a).
       (d) Consultation.--Before the publication of the 
     recommendations under subsection (b), the Director or his 
     designee shall consult with the appropriate congressional 
     committees concerning the recommendations.
                     TITLE IV--FINANCIAL MANAGEMENT

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``Federal Financial 
     Management Act of 1994''.

     SEC. 402. ELECTRONIC PAYMENTS.

       (a) In General.--Section 3332 of title 31, United States 
     Code, is amended to read as follows:

     ``Sec. 3332. Required direct deposit

       ``(a)(1) Notwithstanding any other provision of law, all 
     Federal wage, salary, and retirement payments shall be paid 
     to recipients of such payments by electronic funds transfer, 
     unless another method has been determined by the Secretary of 
     the Treasury to be appropriate.
       ``(2) Each recipient of Federal wage, salary, or retirement 
     payments shall designate one or more financial institutions 
     or other authorized payment agents and provide the payment 
     certifying or authorizing agency information necessary for 
     the recipient to receive electronic funds transfer payments 
     through each institution so designated.
       ``(b)(1) The head of each agency shall waive the 
     requirements of subsection (a) of this section for a 
     recipient of Federal wage, salary, or retirement payments 
     authorized or certified by the agency upon written request by 
     such recipient.
       ``(2) Federal wage, salary, or retirement payments shall be 
     paid to any recipient granted a waiver under paragraph (1) of 
     this subsection by any method determined appropriate by the 
     Secretary of the Treasury.
       ``(c)(1) The Secretary of the Treasury may waive the 
     requirements of subsection (a) of this section for any group 
     of recipients upon request by the head of an agency under 
     standards prescribed by the Secretary of the Treasury.
       ``(2) Federal wage, salary, or retirement payments shall be 
     paid to any member of a group granted a waiver under 
     paragraph (1) of this subsection by any method determined 
     appropriate by the Secretary of the Treasury.
       ``(d) This section shall apply only to recipients of 
     Federal wage or salary payments who begin to receive such 
     payments on or after January 1, 1995, and recipients of 
     Federal retirement payments who begin to receive such 
     payments on or after January 1, 1995.
       ``(e) The crediting of the amount of a payment to the 
     appropriate account on the books of a financial institution 
     or other authorized payment agent designated by a payment 
     recipient under this section shall constitute a full 
     acquittance to the United States for the amount of the 
     payment.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 33 of title 31, United States Code, is 
     amended by amending the item for section 3332 to read:

``3332. Required direct deposit.''.

     SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

       (a) Establishment.--There is authorized to be established 
     on a pilot program basis in each of six executive agencies a 
     franchise fund. The Director of the Office of Management and 
     Budget, after consultation with the chairman and ranking 
     members of the Committees on Appropriations and Governmental 
     Affairs of the Senate, and the Committees on Appropriations 
     and Government Operations of the House of Representatives, 
     shall designate the agencies.
       (b) Uses.--Each such fund may provide, consistent with 
     guidelines established by the Director of the Office of 
     Management and Budget, such common administrative support 
     services to the agency and to other agencies as the head of 
     such agency, with the concurrence of the Director, determines 
     can be provided more efficiently through such a fund than by 
     other means. To provide such services, each such fund is 
     authorized to acquire the capital equipment, automated data 
     processing systems, and financial management and management 
     information systems needed. Services shall be provided by 
     such funds on a competitive basis.
       (c) Funding.--(1) There are authorized to be appropriated 
     to the franchise fund of each agency designated under 
     subsection (a) such funds as are necessary to carry out the 
     purposes of the fund, to remain available until expended. To 
     the extent that unexpended balances remain available in other 
     accounts for the purposes to be carried out by the fund, the 
     head of the agency may transfer such balances to the fund.
       (2) Fees for services shall be established by the head of 
     the agency at a level to cover the total estimated costs of 
     providing such services. Such fees shall be deposited in the 
     agency's fund to remain available until expended, and may be 
     used to carry out the purposes of the fund.
       (3) Existing inventories, including inventories on order, 
     equipment, and other assets or liabilities pertaining to the 
     purposes of the fund may be transferred to the fund.
       (d) Report on Pilot Programs.--Within 6 months after the 
     end of fiscal year 1997, the Director of the Office of 
     Management and Budget shall forward a report on the results 
     of the pilot programs to the Committees on Appropriations of 
     the Senate and of the House of Representatives, and to the 
     Committee on Governmental Affairs of the Senate and the 
     Committee on Government Operations of the House of 
     Representatives. The report shall contain the financial and 
     program performance results of the pilot programs, including 
     recommendations for--
       (1) the structure of the fund;
       (2) the composition of the funding mechanism;
       (3) the capacity of the fund to promote competition; and
       (4) the desirability of extending the application and 
     implementation of franchise funds to other Federal agencies.
       (e) Procurement.--Nothing in this section shall be 
     construed as relieving any agency of any duty under 
     applicable procurement laws.
       (f) Termination.--The provisions of this section shall 
     expire on October 1, 1999.

     SEC. 404. SIMPLIFICATION OF MANAGEMENT REPORTING PROCESS.

       (a) In General.--To improve the efficiency of executive 
     branch performance in implementing statutory requirements for 
     financial management reporting to the Congress and its 
     committees, the Director of the Office of Management and 
     Budget may adjust the frequency and due dates of or 
     consolidate any statutorily required reports of agencies to 
     the Office of Management and Budget or the President and of 
     agencies or the Office of Management and Budget to the 
     Congress under any laws for which the Office of Management 
     and Budget has financial management responsibility, 
     including--
       (1) chapters 5, 9, 11, 33, 35, 37, 39, 75, and 91 of title 
     31, United States Code;
       (2) the Federal Civil Penalties Inflation Adjustment Act of 
     1990 (28 U.S.C. 2461 note; Public Law 101-410; 104 Stat. 
     890).
       (b) Application.--The authority provided in subsection (a) 
     shall apply only to reports of agencies to the Office of 
     Management and Budget or the President and of agencies or the 
     Office of Management and Budget to the Congress required by 
     statute to be submitted between January 1, 1995, and 
     September 30, 1997.
       (c) Adjustments in Reporting.--The Director may consolidate 
     or adjust the frequency and due dates of any statutorily 
     required reports under subsections (a) and (b) only after--
       (1) consultation with the Chairman of the Senate Committee 
     on Governmental Affairs and the Chairman of the House of 
     Representatives Committee on Government Operations; and
       (2) written notification to the Congress, no later than 
     February 8 of each fiscal year covered under subsection (b) 
     for those reports required to be submitted during that fiscal 
     year.

     SEC. 405. ANNUAL FINANCIAL REPORTS.

       (a) Financial Statements.--Section 3515 of title 31, United 
     States Code, is amended to read as follows:

     ``Sec. 3515. Financial statements of agencies

       ``(a) Not later than March 1 of 1997 and each year 
     thereafter, the head of each executive agency identified in 
     section 901(b) of this title shall prepare and submit to the 
     Director of the Office of Management and Budget an audited 
     financial statement for the preceding fiscal year, covering 
     all accounts and associated activities of each office, 
     bureau, and activity of the agency.
       ``(b) Each audited financial statement of an executive 
     agency under this section shall reflect--
       ``(1) the overall financial position of the offices, 
     bureaus, and activities covered by the statement, including 
     assets and liabilities thereof; and
       ``(2) results of operations of those offices, bureaus, and 
     activities.
       ``(c) The Director of the Office of Management and Budget 
     shall identify components of executive agencies that shall be 
     required to have audited financial statements meeting the 
     requirements of subsection (b).
       ``(d) The Director of the Office of Management and Budget 
     shall prescribe the form and content of the financial 
     statements of executive agencies under this section, 
     consistent with applicable accounting and financial reporting 
     principles, standards, and requirements.
       ``(e) The Director of the Office of Management and Budget 
     may waive the application of all or part of subsection (a) 
     for financial statements required for fiscal years 1996 and 
     1997.
       ``(f) Not later than March 1 of 1995 and 1996, the head of 
     each executive agency identified in section 901(b) of this 
     title and designated by the Director of the Office of 
     Management and Budget shall prepare and submit to the 
     Director of the Office of Management and Budget an audited 
     financial statement for the preceding fiscal year, covering 
     all accounts and associated activities of each office, 
     bureau, and activity of the agency.
       ``(g) Not later than March 31 of 1995 and 1996, for 
     executive agencies not designated by the Director of the 
     Office of Management and Budget under subsection (f), the 
     head of each executive agency identified in section 901(b) of 
     this title shall prepare and submit to the Director of the 
     Office of Management and Budget a financial statement for the 
     preceding fiscal year, covering--
       ``(1) each revolving fund and trust fund of the agency; and
       ``(2) to the extent practicable, the accounts of each 
     office, bureau, and activity of the agency which performed 
     substantial commercial functions during the preceding fiscal 
     year.
       ``(h) For purposes of subsection (g), the term `commercial 
     functions' includes buying and leasing of real estate, 
     providing insurance, making loans and loan guarantees, and 
     other credit programs and any activity involving the 
     provision of a service or thing for which a fee, royalty, 
     rent, or other charge is imposed by an agency for services 
     and things of value it provides.''.
       (b) Audits by Agencies.--Subsection 3521(f) of title 31, 
     United States Code, is amended to read as follows:
       ``(f)(1) For each audited financial statement required 
     under subsections (a) and (f) of section 3515 of this title, 
     the person who audits the statement for purpose of subsection 
     (e) of this section shall submit a report on the audit to the 
     head of the agency. A report under this subsection shall be 
     prepared in accordance with generally accepted government 
     auditing standards.
       ``(2) Not later than June 30 following the fiscal year for 
     which a financial statement is submitted under subsection (g) 
     of section 3515 of this title, the person who audits the 
     statement for purpose of subsection (e) of this section shall 
     submit a report on the audit to the head of the agency. A 
     report under this subsection shall be prepared in accordance 
     with generally accepted government auditing standards.''.
       (c) Governmentwide Financial Statement.--Section 331 of 
     title 31, United States Code, is amended by adding the 
     following new subsection:
       ``(e)(1) Not later than March 31 of 1998 and each year 
     thereafter, the Secretary of the Treasury, in coordination 
     with the Director of the Office of Management and Budget, 
     shall annually prepare and submit to the President and the 
     Congress an audited financial statement for the preceding 
     fiscal year, covering all accounts and associated activities 
     of the executive branch of the United States Government. The 
     financial statement shall reflect the overall financial 
     position, including assets and liabilities, and results of 
     operations of the executive branch of the United States 
     Government, and shall be prepared in accordance with the form 
     and content requirements set forth by the Director of the 
     Office of Management and Budget.
       ``(2) The Comptroller General of the United States shall 
     audit the financial statement required by this section.''.

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