[Congressional Record Volume 163, Number 127 (Thursday, July 27, 2017)]
[Senate]
[Pages S4570-S4571]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 636. Mr. PERDUE (for himself and Mr. Wyden) submitted an amendment 
intended to be proposed by him to the bill H.R. 2810, to authorize 
appropriations for fiscal year 2018 for military

[[Page S4571]]

activities of the Department of Defense, for military construction, and 
for defense activities of the Department of Energy, to prescribe 
military personnel strengths for such fiscal year, and for other 
purposes; which was ordered to lie on the table; as follows:

       Strike section 1003 and insert the following:

     SEC. ___. CERTIFICATIONS ON RELIABILITY OF THE FINANCIAL 
                   STATEMENTS OF THE DEPARTMENT OF DEFENSE AND THE 
                   MILITARY DEPARTMENTS, DEFENSE AGENCIES, AND 
                   OTHER ORGANIZATIONS AND ELEMENTS OF THE 
                   DEPARTMENT OF DEFENSE.

       (a) Department of Defense.--Not later than September 30, 
     2017, and each year thereafter, the Secretary of Defense 
     shall certify to the congressional defense committees whether 
     or not the full financial statements of the Department of 
     Defense are reliable as of the date of such certification.
       (b) Military Departments, Defense Agencies, and Other 
     Organizations and Elements.--
       (1) In general.--Not later than September 30, 2017, and 
     each year thereafter, each Secretary of a military 
     department, each head of a Defense Agency, and each head of 
     any other organization or element of the Department of 
     Defense designated by the Secretary of Defense for purposes 
     of this subsection shall certify to the congressional defense 
     committees whether or not the full financial statements of 
     the military department, the Defense Agency, or the 
     organization or element concerned became reliable during the 
     fiscal year in which such certification is to be submitted.
       (2) Transmittal through secretary of defense.--The 
     individual certifications required by this subsection shall 
     be transmitted to the congressional defense committees 
     collectively by the Secretary under procedures established by 
     the Secretary for purposes of this subsection.
       (c) Termination on Receipt of Unmodified Audit Opinion on 
     Full Financial Statements.--A certification is no longer 
     required under subsection (a) or (b) with respect to the 
     Department of Defense, or a military department, Defense 
     Agency, or organization or element of the Department, as 
     applicable, after the Department of Defense or such military 
     department, Defense Agency, or organization or element 
     receives an unmodified audit opinion on its full financial 
     statements.

     SEC. ___. STREAMLINING OF REQUIREMENTS IN CONNECTION WITH 
                   AUDITS AND THE RELIABILITY OF THE FINANCIAL 
                   STATEMENTS OF THE DEPARTMENT OF DEFENSE.

       (a) Repeal of Limitation on Inspector General Conduct of 
     Audit of Unreliable Financial Statements.--Section 1008 of 
     the National Defense Authorization Act for Fiscal Year 2002 
     (10 U.S.C. 113 note) is amended by striking subseciton (d).
       (b) Cessation of Applicability of Financial Improvement and 
     Audit Readiness Plan Requirements.--Section 1003 of the 
     National Defense Authorization Act for Fiscal Year 2010 (10 
     U.S.C. 2222 note) is amended by adding at the end the 
     following new subsection:
       ``(d) Cessation of Applicability.--This section and the 
     requirements of this section shall cease to be effective on 
     the date on which the Secretary of Defense submits to the 
     congressional defense committees a report setting forth a 
     certification that the financial statements of each 
     department, agency, activity, and other component of the 
     Department of Defense are under audit.''.

     SEC. ___. RANKINGS OF AUDITABILITY OF FINANCIAL STATEMENTS OF 
                   THE ORGANIZATIONS AND ELEMENTS OF THE 
                   DEPARTMENT OF DEFENSE.

       Not later than 30 days after the date of the enactment of 
     this Act, and annually thereafter, the Secretary of Defense 
     shall, in coordination with the Under Secretary of Defense 
     (Comptroller), submit to the congressional defense committees 
     a report setting forth a ranking of the auditability of the 
     financial statements of the departments, agencies, 
     organizations, and elements of the Department of Defense 
     according to the progress made toward achieving auditability 
     as required by law. The Under Secretary shall determine the 
     criteria to be used for purposes of the rankings.
                                 ______