[Congressional Record Volume 148, Number 132 (Wednesday, October 9, 2002)]
[Senate]
[Pages S10219-S10220]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             THE ACCOUNTABILITY OF TAX DOLLARS ACT OF 2002

  Mr. FITZGERALD. Mr. President, I rise today to urge my colleagues to 
support S. 2644, the Accountability of Tax Dollars Act, which was 
approved today by unanimous vote by the Governmental Affairs Committee. 
Earlier this week, the House of Representatives approved by voice vote 
the companion measure, H.R. 468, sponsored by Congressman Toomey of 
Pennsylvania.
  I thank Chairman, Lieberman and Ranking Member Thompson for their 
support of this legislation, and Congressman Toomey for his leadership 
in the House on this significant issue.
  This important legislation will increase the effectiveness of the 
Chief financial Officers' Act by expanding to all executive agencies 
the requirement that Federal agencies conduct independent financial 
audits. This bill will also subject agencies audited records to review 
by Congress and the administration.
  As my colleagues well know, fiscal mismanagement by Federal agencies 
costs taxpayers billions of dollars each year. The total amount of 
taxpayer losses is probably much greater than we know, however, because 
many agencies do not subject their budget reviews to the scrutiny of 
outside accountants. By requiring independent audits of all executive 
agencies, this bill will help make our Government more accountable to 
the taxpayers. The agencies covered by this bill have a combined annual 
budget of tens of billions of dollars--budgets that represent taxpayer 
dollars that should be accounted for more rigorously.
  I was dismayed to learn that under current law, only the 24 largest 
departments and agencies--and a few others specified by Congress--are 
required to

[[Page S10220]]

submit their books to outside auditors. The Accountability of Tax 
Dollars Act of 2002 would require all executive agencies to prepare 
audited financial statements and subject those statements to an 
independent audit.
  I was especially surprised to learn that current Federal law does not 
require the Securities and Exchange Commission--the entity with which 
publicly held companies are required to file their audited financial 
statements--to subject its own books to the scrutiny of outside 
auditors. Other Government agencies, including the Federal Trade 
Commission, the Consumer Product Safety Administration, the Federal 
Election Commission, the National Endowments for the Arts and 
Humanities, the National Labor Relations Board, and the Federal 
Communications Commission--agencies that spend billions of taxpayer 
dollars every year--have also been exempt from this legal requirement.
  I, along with many of my colleagues, have been very critical of the 
alleged accounting abuses by some of this Nation's largest corporations 
that have recently been brought to light. Particularly in light of 
these recent revelations, it is incumbent on Congress to ensure that 
the Federal Government, at the very least, meets the same standards 
that we set for the private sector.
  It is my hope that subjecting Federal agencies to congressional and 
executive oversight will provide an incentive for agencies to improve 
their financial performance or risk possible elimination. Independent 
audit opinions should contribute to increased Government efficiency by 
providing information that can be used to strengthen integral 
accountability, better monitor assets and liabilities, enhance cost 
controls, identify inefficiencies and weaknesses, and curb Government 
waste.
  S. 2644, the Accountability of Tax Dollars Act of 2002, would extend 
the Chief Financial Officers' Act requirements currently imposed on the 
major agencies to all executive branch agencies.
  The act gives the Office of Management and Budget the authority to 
waive the audit requirement for smaller agencies that have annual 
budgets of less than $25 million. In order to allow agencies some 
additional time to meet this new standard of accountability, the bill 
allows the OMB Director discretion during the first 2 years of the 
act's implementation to waive the application of the new requirements 
to any agency.
  This bill has bipartisan support as well as the support of the 
Government Accounting Office and the administration.
  Again, I urge my colleagues to support this important good Government 
legislation.

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