[Congressional Record Volume 158, Number 160 (Wednesday, December 12, 2012)]
[House]
[Pages H6731-H6733]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
DHS AUDIT REQUIREMENT TARGET ACT OF 2012
Mr. KING of New York. Madam Speaker, I move to suspend the rules and
pass the bill (S. 1998) to obtain an unqualified audit opinion, and
improve financial accountability and management at the Department of
Homeland Security.
The Clerk read the title of the bill.
The text of the bill is as follows:
S. 1998
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 ``DHS Audit Requirement
Target Act of 2012'' or the ``DART Act''.
SEC. 2. IMPROVING FINANCIAL ACCOUNTABILITY AND MANAGEMENT.
(a) Definitions.--In this section--
(1) the term ``Department'' means the Department of
Homeland Security;
(2) the term ``financial management systems'' has the
meaning given that term under section 806 of the Federal
Financial Management Improvement Act of 1996 (31 U.S.C. 3512
note);
(3) the term ``Secretary'' means the Secretary of Homeland
Security; and
(4) the term ``unqualified opinion'' mean an unqualified
opinion within the meaning given that term under generally
accepted auditing standards.
(b) Reaching an Unqualified Audit Opinion.--In order to
ensure compliance with the Department of Homeland Security
Financial Accountability Act (Public Law 108-330; 118 Stat.
1275) and the amendments made by that Act, the Secretary
shall take the necessary steps to ensure that the full set of
consolidated financial statements of the Department for the
fiscal year ending September 30, 2013, and each fiscal year
thereafter, are ready in a timely manner and in preparation
for an audit as part of preparing the performance and
accountability reports required under section 3516(f) of
title 31, United States Code, (including submitting the
reports not later than November 15, 2013, and each year
thereafter) in order to obtain an unqualified opinion on the
full set of financial statements for the fiscal year.
(c) Report to Congress on Progress of Meeting Audit
Requirements.--In order to ensure progress in implementing
the Department of Homeland Security Financial Accountability
Act (Public Law 108-330; 118 Stat. 1275), and the amendments
made by that Act, during the period beginning on the date of
enactment of this Act and ending on the date on which an
unqualified opinion described in subsection (b) is submitted,
each report submitted by the Chief Financial Officer of the
Department under section 902(a)(6) of title 31, United States
Code, shall include a plan--
(1) to obtain an unqualified opinion on the full set of
financial statements, which shall discuss plans and resources
needed to meet the deadlines under subsection (b);
(2) that addresses how the Department will eliminate
material weaknesses and significant deficiencies in internal
controls over financial reporting and provides deadlines for
the elimination of such weaknesses and deficiencies; and
(3) to modernize the financial management systems of the
Department, including timelines, goals, alternatives, and
costs of the plan, which shall include consideration of
alternative approaches, including modernizing the existing
financial management systems and associated financial
controls of the Department and establishing new financial
management systems and associated financial controls.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New
York (Mr. King) and the gentleman from Mississippi (Mr. Thompson) each
will control 20 minutes.
The Chair recognizes the gentleman from New York.
General Leave
Mr. KING of New York. Madam Speaker, I ask unanimous consent that all
Members have 5 legislative days within which to revise and extend their
remarks and include any extraneous material on the bill under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New York?
There was no objection.
Mr. KING of New York. Madam Speaker, I yield myself as much time as I
may consume.
Madam Speaker, I rise in support of S. 1998, the DART Act, introduced
by Senator Scott Brown of Massachusetts. This important legislation
will improve financial accountability and management at the Department
of Homeland Security.
Since the Department opened its doors on March 1, 2003, financial
management of all 22 merged agencies has
[[Page H6732]]
been one of the most significant challenges. Fiscal year 2012, over 9
years since DHS was created, was the first time the Department was able
to complete a financial audit and receive a qualified opinion on all
five financial statements covering the entire Department.
Unfortunately, DHS has been unable to get an unqualified, or clean,
opinion stating that there are no material weaknesses in its financial
systems. Until such time as there is confidence in the DHS financial
structure, questions will remain on how DHS accounts for taxpayer
money. This important legislation is needed because it will require the
Department to create a plan to meet the audit requirements to reach an
unqualified opinion.
Specifically, the bill requires the Secretary to take all necessary
steps to ensure that all financial statements of the Department are
consolidated and ready in a timely manner in preparation for an audit.
Second, the DHS CFO is to report to Congress on its efforts to reach
an unqualified opinion. This legislation requires this reporting
requirement until such time as the Department is able to reach an
unqualified opinion.
Also, DHS is to report to Congress on its progress, including
resources needed, plans to eliminate material weaknesses, deadlines for
addressing deficiencies, and efforts to modernize DHS' financial
management systems.
It is essential that DHS obtain control over its financial systems
and address the identified weaknesses. This legislation sets the
Department on the right path to obtain an unqualified opinion.
I would also like to thank Chairman Issa and the Committee on
Oversight and Government Reform for working with the Committee on
Homeland Security in getting this important legislation to the floor.
I urge my colleagues to support S. 1998 and reserve the balance of my
time.
House of Representatives, Committee on Oversight and
Government Reform,
Washington, DC, December 7, 2012.
Hon. Peter T. King,
Chairman, Committee on Homeland Security, House of
Representatives, Washington, DC.
Dear Mr. Chairman: On November 28, 2012, the Senate passed
S. 1998, the ``Department of Homeland Security Improved
Financial Accountability Act of 2011.'' Thank you for
consulting with the Committee on Oversight and Government
Reform with regard to S. 1998 on those matters within the
committee's jurisdiction. I am writing to confirm our mutual
understanding with respect to the consideration of S. 1998.
In the interest of expediting the House's consideration of
S. 1998, I will forego consideration of the bill. However, I
do so only with the understanding that this procedural route
will not be construed to prejudice the Committee on Oversight
and Government Reform's jurisdictional interest and
prerogatives on this bill or any other similar legislation
and will not be considered as precedent for consideration of
matters of jurisdictional interest to my Committee in the
future.
I respectfully request that you include our exchange of
letters on this matter in the Congressional Record during
consideration of this bill on the House floor. Thank you for
your attention to these matters.
Sincerely,
Darrell Issa,
Chairman.
____
House of Representatives,
Committee on Homeland Security,
Washington, DC, December 7, 2012.
Hon. Darrell Issa,
Chairman, Committee on Oversight and Government Reform, House
of Representatives, Washington, DC.
Dear Chairman Issa: Thank you for your letter regarding S.
1998, the ``DHS Audit Requirement Target Act of 2012.'' I
appreciate your willingness to support expediting floor
consideration of this legislation.
I agree that while you are waiving formal consideration of
this bill, the Committee on Oversight and Government Reform
is in no way diminishing its jurisdiction over the subject
matter contained in this measure or any other similar
legislation and will not be considered as precedent for
consideration of matters of jurisdictional interest to your
Committee in the future.
I will include our letter on S. 1998 in the Congressional
Record during House floor consideration of the bill. I
appreciate your cooperation regarding this legislation.
Sincerely,
Peter T. King,
Chairman.
Mr. THOMPSON of Mississippi. Madam Speaker, I rise in support of S.
1998, the DHS Audit Requirement Target Act of 2012 and yield myself
such time as I may consume.
Madam Speaker, since it was established nearly a decade ago, the
Department of Homeland Security has been unable to obtain a ``clean''
or unqualified audit of its financial statements. This is simply
unacceptable.
When I was chairman last Congress, the Committee on Homeland Security
conducted significant oversight of the deficiencies that have plagued
the Department's financial management efforts since its creation.
While we understand that DHS has taken many of the steps necessary to
obtain a clean audit, more remains to be done. S. 1998 would direct DHS
to take the necessary steps to obtain a clean audit by the end of
fiscal year 2013. It also requires DHS to report to Congress on its
plans to strengthen its financial controls and modernize its financial
management systems.
Madam Speaker, S. 1998 helps put DHS on a path toward sound financial
management, and for that reason, I plan to support the bill today.
With that, Madam Speaker, I reserve the balance of my time.
Mr. KING of New York. I continue to reserve the balance of my time.
Mr. THOMPSON of Mississippi. Madam Speaker, I yield 2 minutes to the
gentlelady from Texas (Ms. Jackson Lee).
Ms. JACKSON LEE of Texas. I thank the gentleman, and I rise to
support S. 1998 and commend the basis of this legislation, which will
look for a clean audit report and in particular as it relates to
Congress submit a report on the plan to obtain an unqualified opinion
annually until an unqualified opinion is submitted, and submit to
Congress and the Comptroller General a report on DHS' plans and
resources needed to modernize DHS' financial system.
Let me be clear that we know that it takes resources to secure the
homeland, but this is a Department that has $40 billion in the annual
budget and 200,000 employees. DHS is the Nation's third-largest Federal
Department. It demands a clean audit.
I would also indicate that one of the issues that we have continued
to work on in the committee is to ensure the access of small, minority,
and women-owned businesses to the vast contracting needs that DHS is
engaged in. In particular, when there are natural disasters, we are
often seeing where those who live in the area who would benefit from
being able to be the contractors or to be able to work on the
restoration and remove the debris cannot access DHS in a fair way to be
able to secure a contract to put people to work.
So even as we are talking about audits, I'm talking about management
processes, as well. And I would hope that this legislation, as it
begins to look at audits and making sure that we have an unqualified
audit, will also look at process as we go forward in the 113th
Congress, because as we secure the homeland, we want to make sure that
we have a Department of Homeland Security that has had very fine
leadership in Secretary Napolitano to be able to assure that the
infrastructure that runs this agency is parallel to the infrastructure
that is securing America. I think that will be a perfect system.
So I do support this legislation, and I hope the comments about
small, minority, and women-owned businesses are taken to heart and that
we will find a way to ensure that our resources, tax dollars, are
utilized by the American people in the right and appropriate way.
Mr. KING of New York. Madam Speaker, I have no further speakers. If
the gentleman from Mississippi has no further speakers, I am prepared
to close.
Mr. THOMPSON of Mississippi. Madam Speaker, I have no more speakers,
and I am prepared to close.
In summary, S. 1998 is another step in Congress' effort to put DHS on
a sound financial path.
Speaking of a path, Madam Speaker, this is probably the chair's last
official act on the floor, and I want to just say to him today that I
have enjoyed his chairmanship on the committee, and I'm certain
whatever the future holds in Congress, he will be a worthy participant
in the process.
I would like to personally say that I have enjoyed working with him.
Ms. JACKSON LEE of Texas. Will the gentleman yield?
Mr. THOMPSON of Mississippi. I yield to the gentlelady from Texas.
[[Page H6733]]
Ms. JACKSON LEE of Texas. I thank the gentleman.
Mr. Ranking Member, I knew that Mr. King would have other
opportunities to be on the floor. We are going to be here through
Christmas, but if that is not the case, then he has kind of a smile of
Santa Claus, but I just want to say to Chairman King, as well, just to
thank you for your service. There is no doubt of your commitment to
America's security, and I have enjoyed having the opportunity to work
with you on the committee.
{time} 1500
Mr. THOMPSON of Mississippi. Madam Speaker, reclaiming my time, I
urge my colleagues to support the bill and yield back the balance of my
time.
Mr. KING of New York. Madam Speaker, I yield myself such time as I
may consume.
I would like to thank Senator Brown for introducing this legislation
to address the ongoing DHS financial management challenges. Also, let
me thank the ranking member, Mr. Thompson, and the ranking member of
the subcommittee, Ms. Jackson Lee, for their kind words. This probably
will be my last appearance on the floor as chairman of the committee.
I want to thank the ranking member. It has now been over 7 years we
have worked together as chairman and ranking member. I enjoyed working
with you. I enjoyed it a lot more when I was chairman, and I'm sure you
enjoyed it a lot more when you were chairman. But no matter what our
capacities were, I always found it a privilege to be able to work with
you. When we could cooperate, we did. When we had honest differences, I
think we expressed them in a very gentlemanly way. I certainly know
that you did, and I want to thank you for that.
I want to also thank the committee staff, especially Mike Russell,
Mandy Bowers, and Kerry Ann Watkins, for the tremendous job they did,
and all the members of the staff of both the majority and the minority.
And, Madam Speaker, I would like to thank you for your years of service
in the House here as well.
Again, it's been a great privilege being chairman. I believe we
achieved a lot. I think most importantly what the ranking member has
tried to do and what I've tried to do is establish the significance of
this committee and to prove that on major issues affecting the country,
that both parties can work together in a bipartisan way. And I thank
the gentleman for his cooperation on that.
Going back to business, I urge support of the bill, and I yield back
the balance of my time.
Ms. JACKSON LEE of Texas. Madam Speaker, I rise today in support of
S. 1998, the ``DART Act,'' the purpose of which is to obtain an
unqualified audit opinion, and improve financial accountability and
management at the Department of Homeland Security.
The DART Act will permit Congress to effectively perform its
oversight duties with respect to the Department of Homeland Security.
As a Member of the Committee on Homeland Security and Ranking Member
of its Subcommittee on Transportation, tasked with oversight of the
Department, I am a strong supporter of the work that the Department
does on behalf of the American people.
It is important that the public understand the vital work that the
Department has done and continues to do to assess and counter threats
and to maintain the security of our homeland.
S. 1998 directs the Secretary of Homeland Security, in order to
comply with the Department of Homeland Security Financial
Accountability Act, to ensure that the balance sheet of the Department
of Homeland Security (DHS) and associated statement of custodial
activity for FY2012 and FY2013, and the full set of consolidated
financial statements of DHS for FY2014 through FY2016, are ready in a
timely manner and in preparation for an audit as part of preparing
required performance and accountability reports.
Furthermore, S. 1998 directs the Chief Financial Officer of DHS to:
(1) Submit a report on the plans to obtain an unqualified opinion
annually until an unqualified opinion is submitted, and
(2) Submit to Congress and the Comptroller General a report on DHS's
plans and resources needed to modernize DHS's financial systems.
The Department of Homeland Security (DHS) was created in 2003, with
the vital mission of ensuring that, in the wake of the September 11th,
2001 attacks, the American homeland is safe, secure, and protected
against terrorists who would do us harm.
Our domestic security is our nation's top priority; a mission that
includes terrorism prevention and security enhancements, border
management and security, immigration administration and enforcement,
cyberspace security, and disaster response.
With a $40 billion annual budget and more than 200,000 employees, DHS
is the nation's 3rd largest federal department.
Consequently, this Congress must pay close attention and give careful
consideration to the activities of the Department of Homeland Security
as we assist it in becoming a more sound, lower-risk, more efficient,
and more effective department.
Given the relatively new nature of the Department, along with the
fact that it originated as an amalgamation of 22 federal agencies, it
is no surprise that the Government Accountability Office (GAO) has
consistently designated--as recently as December 2011--the
implementation and transformation of the Department as high-risk with
respect to waste, fraud, abuse mismanagement, or needing reform.
Unfortunately, since its inception, the Department has been unable to
obtain what is known as a ``clean'' or ``unqualified'' audit of its
financial statements (i.e. a finding by an objective reviewer that the
Department's finances are in conformity with generally accepted
accounting standards). The DART Act seeks to address this issue by
directing the Department to take the steps necessary to obtain a clean
audit by the end of fiscal year 2013.
In order for Congress to be able to effectively monitor and oversee
DHS's efforts in this area, S. 1998 also requires DHS to provide
Congress with specific details on its plans to achieve a clean audit,
through eliminating material weaknesses in its internal financial
controls and by modernizing its financial management systems.
While DHS has previously stated that it can obtain an unqualified
opinion on all of its financial statements by the end of fiscal year
2013, the Government Accountability Office (GAO) has noted that ``there
is no clear plan for how auditability will be achieved'' by the end of
2013.
As we evaluate the progress of the Department, I want to ensure that
the Department has sufficient funding and its finances are managed and
structured properly such that our nation is safe and secure from all
threats.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from New York (Mr. King) that the House suspend the rules and
pass the bill, S. 1998.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________