[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

[[Page H8873]]

     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.

                          ____________________