[Congressional Record Volume 143, Number 142 (Tuesday, October 21, 1997)]
[House]
[Pages H8872-H8874]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PRESIDENTIAL AND EXECUTIVE OFFICE FINANCIAL ACCOUNTABILITY ACT OF 1997
Mr. HORN. Madam Speaker, I move to suspend the rules and pass the
bill (H.R. 1962) to provide for the appointment of a chief financial
officer and deputy chief financial officer in the Executive Office of
the President, as amended.
The Clerk read as follows:
H.R. 1962
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 ``Presidential and Executive
Office Financial Accountability Act of 1997''.
SEC. 2. CHIEF FINANCIAL OFFICER IN THE EXECUTIVE OFFICE OF
THE PRESIDENT.
(a) In General.--Section 901 of title 31, United States
code, is amended by adding at the end the following:
``(c)(1) There shall be within the Executive Office of the
President a Chief Financial Officer, who shall be designated
or appointed by the President from among individuals meeting
the standards described in subsection (a)(3). The position of
Chief Financial Officer established under this paragraph may
be so established in any Office (including the Office of
Administration) of the Executive Office of the President.
``(2) The Chief Financial Officer designated or appointed
under this subsection shall, to the extent that the President
determines appropriate and in the interest of the United
States, have the same authority and perform the same
functions as apply in the case of a Chief Financial Officer
of an agency described in subsection (b).
``(3) The President shall submit to Congress notification
with respect to any provision of section 902 that the
President determines shall not apply to a Chief Financial
Officer designated or appointed under this subsection.
``(4) The President may designate an employee of the
Executive Office of the President (other than the Chief
Financial Officer), who shall be deemed `the head of the
agency' for purposes of carrying out section 902, with
respect to the Executive Office of the President.''.
(b) Plan for Implementation.--Not later than 90 days after
the date of the enactment of this Act, the President shall
communicate in writing to the Chairman of the Committee on
Government Reform and Oversight of the House of
Representatives and the Chairman of the Committee on
Governmental Affairs of the Senate a plan for implementation
of the provisions of, including the amendments made by, this
Act.
(c) Deadline for Appointment.--The Chief Financial Officer
designated or appointed under section 901(c) of title 31,
United States Code (as added by subsection (a)), shall be so
designated or appointed not later than 180 days after the
date of the enactment of this Act.
(d) Pay.--The Chief Financial Officer designated or
appointed under such section shall receive basic pay at the
rate payable for level IV of the Executive Schedule under
section 5315 of title 5, United States Code.
(e) Transfer of Functions.--(1) The President may transfer
such offices, functions, powers, or duties thereof, as the
President determines are properly related to the functions of
the Chief Financial Officer under section 901(c) of title 31,
United States Code (as added by subsection (a)).
(2) The personnel, assets, liabilities, contracts,
property, records, and unexpended
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balances of appropriations, authorizations, allocations, and
other funds employed, held, used, arising from, available or
to be made available, of any office the functions, powers, or
duties of which are transferred under paragraph (1) shall
also be so transferred.
(f) Separate Budget Request.--Section 1105(a) of title 31,
United States Code, is amended by inserting after paragraph
(3) the following new paragraph:
``(31) a separate statement of the amount of appropriations
requested to carry out the provisions of the Presidential and
Executive Office Financial Accountability Act of 1997.''.
(g) Technical and Conforming Amendments.--Section 503(a) of
title 31, United States Code, is amended--
(1) in paragraph (7) by striking ``respectively.'' and
inserting ``respectively (excluding any officer designated or
appointed under section 901(c)).''; and
(2) in paragraph (8) by striking ``Officers.'' and
inserting ``Officers (excluding any officer designated or
appointed under section 901(c)).''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
California [Mr. Horn], and the gentlewoman from New York [Mrs.
Maloney], each will control 20 minutes.
The Chair recognizes the gentleman from California [Mr. Horn].
Mr. HORN. Madam Speaker, I yield myself such time as I may consume.
H.R. 1962, the Presidential and Executive Office Financial
Accountability Act of 1997 will apply the Chief Financial Officers Act
of 1990 to the Executive Office of the President. The substance of H.R.
1962 passed the House of Representatives with overwhelming support last
fall. It was part of H.R. 3452, the Presidential and Executive Office
Accountability Act, which passed the House by a vote of 410 to 5 on
September 24, 1996.
That important measure was authored by the gentleman from Florida
[Mr. Mica], a distinguished Member of this House and chairman of the
Subcommittee on Civil Service. Unfortunately, as the 104th Congress
raced to a close, the chief financial officer provision did not make it
into law. We now have an opportunity to advance this important reform.
The Chief Financial Officers Act of 1990 was landmark legislation. It
was inspired by the realization that billions of dollars are lost
through waste, fraud, abuse and mismanagement throughout the Federal
Government. The waste stems in part from the obsolete and inefficient
financial management systems that fail to produce consistent and
reliable information. The Chief Financial Officers Act was designed to
improve management and to coordinate internal controls and financial
accounting.
The act installed a chief financial officer in every major department
and agency. Chief financial officers oversee all financial management
activities in their agencies and they report directly to the head of
the agency on financial matters. This high-level reporting is crucial
if financial management issues are going to have a voice at the
leadership table in Federal agencies.
Chief financial officers also develop and maintain an integrated
agency accounting and financial management system, including financial
reporting and internal controls. Furthermore, the chief financial
officers provide guidance and oversight of financial management
personnel activities and operations in these agencies. This ensures in-
house expertise on financial management.
It also establishes a point of responsibility for all financial
operations.
Given the importance of the Chief Financial Officers Act, it must
surprise some Members to learn that the law was never applied to the
Executive Office of the President. The Presidential and Executive
Office Financial Accountability Act of 1997 will do so in a way that
recognizes the unique circumstances of the Presidency. The chief
financial officer will review and audit financial systems and records
of the Executive Office of the President. This type of control has
worked well in other Federal agencies, including the Department of
Justice and the Central Intelligence Agency.
The Subcommittee on Government Management, Information and Technology
marked up H.R. 1962 on September 4, 1997. The subcommittee considered
an amendment in the nature of a substitute that was based on
negotiations with the Democratic minority on the subcommittee and with
the White House. The purpose of these changes is to provide the White
House with maximum flexibility in meeting the requirements of the Chief
Financial Officers Act due to its special circumstances. The
subcommittee voted unanimously to forward H.R. 1962 with the amendment
in the nature of a substitute to the full Committee on Government
Reform and Oversight for consideration.
The full Committee on Government Reform and Oversight marked up H.R.
1962 on September 30, 1997. The committee adopted the amendment in the
nature of a substitute reported by the subcommittee and voted
unanimously to report the bill, as amended, to the full House of
Representatives.
Madam Speaker, ``The Administration has no objection to House passage
of H.R. 1962.'' We have received today, a Statement of Administration
Policy which I include in the Record at this point.
Executive Office of the President, Office of Management
and Budget,
Washington, DC, October 21, 1997.
Statement of Administration Policy
(This statement has been coordinated by OMB with the concerned
agencies.)
H.R. 1962--Presidential and Executive Office Financial
Accountability Act of 1997
(Reps. Horn (R) CA and 7 others)
The Administration has no objection to House passage of
H.R. 1962.
I urge all of my colleagues to join in supporting this very important
reform. I thank the ranking Democrat on the Subcommittee on Government
Management, Information, and Technology, the gentlewoman from New York
[Mrs. Maloney], for the support that she has given us and the advice
she has given us on this legislation.
Madam Speaker, I reserve the balance of my time.
Mrs. MALONEY of New York. Madam Speaker, I yield myself such time as
I may consume.
H.R. 1962, the Presidential and Executive Office Financial
Accountability Act, was originally included as a provision of H.R.
3452, the Presidential and Executive Office Accountability Act, which
is now Public Law 104-331. The provision was deleted from H.R. 3452
prior to final passage by the other body.
{time} 1530
H.R. 3452 extended certain labor and civil rights laws to the White
House, much as the Congressional Accountability Act did for Congress.
H.R. 1962, the Presidential and Executive Office Financial
Accountability Act, as amended, would require the appointment of a
chief financial officer in the Executive Office of the President.
The Chief Financial Officers Act of 1990 was landmark legislation
which brought needed improvements to the executive branch by requiring
sound financial management practices, automated financial systems, and
annual reports to Congress. This law has resulted in substantial
savings, probably billions of dollars, by eliminating waste, fraud, and
abuse in the 24 major agencies in the executive branch.
Putting a chief financial officer in the Executive Office of the
President is an improvement, and one which the White House supports. As
was the case last year with H.R. 3452, the chairman has worked with the
minority and with the White House to improve this legislation.
I thank the gentleman from California [Mr. Horn] for the bipartisan
spirit with which he has approached this issue. The amendment in the
nature of a substitute adopted by our committee addressed our concerns
with the original bill. It eliminated the requirement for a deputy
chief financial officer for the Executive Office of the President as an
unnecessary provision given the small size of that office.
That amendment also provides the President significant discretion in
implementing the act required due to the special nature of that office.
In addition, that amendment provided for a separate budget request to
pay for implementation. Under this legislation, the President may
designate someone already employed in the Executive Office of the
President as the chief financial officer. The chief financial officer
may also be established in any office of the Executive Office of the
President, including the Office of Administration.
The most logical place for the Executive Office of the President's
chief financial officer is in the Office of Administration, since the
financial management division of that office already
[[Page H8874]]
performs 90 percent of the duties required by the Chief Financial
Officers Act.
The chairman has worked constructively with the minority and with the
administration to perfect this bill and has committed to continue
working in a bipartisan manner to address any remaining concerns in
report language. I support H.R. 1962 and urge my colleagues to vote for
this legislation.
Mr. Speaker, I reserve the balance of my time.
Mr. HORN. Mr. Speaker, I yield myself such time as I may consume to
thank the gentlewoman from New York for her helpful comments in
rounding out this legislation.
I might say, Mr. Speaker, this legislation, when we talk about the
Executive Office of the President, currently includes the White House
Office, the executive residence of the White House, the Office of the
Vice President, the Council of Economic Advisers, the Council on
Environmental Quality, the National Security Council, the Office of
Administration, the Office of Management and Budget, the Office of
National Drug Control Policy, the Office of Policy Development, the
Office of Science and Technology Policy, and the Office of United
States Trade Representative.
The current structure of the White House first began with Franklin
Roosevelt in 1939, after the Brownlow committee report, which gave the
President really the first staff and support system in this particular
century. Now, different Presidents, either by Executive order or
Congress, by statute on the recommendation of the President, has set up
various offices over time to help the Presidency in terms of
legislation, budget, policy development of one sort or the other, and
this chief financial officer would be available to the President for
various special assignments having to do with fiscal affairs, as it is
for the normal use that comes under the Chief Financial Officers Act.
And I believe that we have had very strong support from all people that
have looked at this from the standpoint of government organization.
Mr. Speaker, I provide for the Record a document from the
Congressional Budget Office on H.R. 1962.
congressional budget office cost estimate
H.R. 1962--Presidential and Executive Office Financial
Accountability Act of 1997
CBO estimates that, subject to the availability of
appropriated funds, enacting H.R. 1962 would increase cost of
the Office of Administration (OA) within the Executive Office
of the President (EOP) by no more than $250,000 a year. The
bill would not affect direct spending or receipts; therefore,
pay-as-you-go procedures would not apply. H.R. 1962 contains
no intergovernmental or private-sector mandates as defined in
the Unfunded Mandates Reform Act of 1995 and would not affect
the budgets of state, local, or tribal governments.
H.R. 1962 would require the President to appoint a chief
financial officer (CFO) for the 12 agencies and offices that
comprise the EOP. The bill would require the CFO to comply
with those provisions of the CFO Act that the President
determines to be appropriate and in the interest of the
United States. Based on information provided by the Office of
Management and Budget and the Office of Administration, CBO
expects that the President would appoint as CFO someone
within the OA, which already provides centralized financial
management and accounting services to the EOP. As a result of
enacting H.R. 1962, the OA might require an additional
employee or two to coordinate activities within the EOP. In
addition, the OA would need to contact with a private firm to
audit the consolidated annual financial statements of the
EOP. We estimate that the annual audit would cost around
$100,000.
In total, assuming no major problems exist in the financial
management and systems of the EOP, CBO estimates that
enacting H.R. 1962, would increase annual cost of the OA by
no more than $250,000. In addition, it is possible that by
improving financial systems and communication within the EOP,
the legislation could lead to a reduction in losses from
waste and abuse, buy CBO cannot estimate and amount of such
potential savings.
The CBO staff contact for this estimate is John R. Righter,
who can be reached at 226-2860. The estimate was approved by
Robert A. Sunshine, Deputy Assistant Director for Budget
Analysis.
Mr. HORN. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
Mrs. MALONEY of New York. Mr. Speaker, I have no further requests for
time, and I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Gilchrest). The question is on the
motion offered by the gentleman from California [Mr. Horn] that the
House suspend the rules and pass the bill, H.R. 1962, as amended.
The question was taken.
Mr. HORN. Mr. Speaker, I object to the vote on the ground that a
quorum is not present and make the point of order that a quorum is not
present.
The SPEAKER pro tempore. Pursuant to clause 5, rule I, and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
The point of no quorum is considered withdrawn.
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