[Congressional Record Volume 171, Number 133 (Friday, August 1, 2025)]
[Senate]
[Pages S5243-S5244]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3472. Mr. LANKFORD submitted an amendment intended to be proposed
by him to the bill S. 2296, to authorize appropriations for fiscal year
2026 for military 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:
At the appropriate place, insert the following:
SEC. ___. CHIEF FINANCIAL OFFICERS; GOVERNMENTWIDE FINANCIAL
MANAGEMENT PLAN.
(a) Short Title.--This section may be cited as the
``Improving Federal Financial Management Act''
(b) Chief Financial Officer and Deputy Chief Financial
Officer.--Chapter 9 of title 31, United States Code, is
amended--
(1) in section 902(a)--
(A) in the matter preceding paragraph (1), by striking
``An'' and inserting ``It shall be the duty and
responsibility of each agency Chief Financial Officer to
oversee and provide leadership in the areas of budget
formulation and execution, planning and performance, risk
management, internal controls, financial systems, accounting,
and other areas as the Director of the Office of Management
and Budget may designate. In carrying out the preceding
sentence, each'';
(B) in paragraph (3)--
(i) in subparagraph (C), by inserting ``areas and'' before
``systems''; and
(ii) in subparagraph (D)--
(I) in clause (iii), by striking ``and'' at the end;
(II) in clause (iv), by striking ``performance;'' and
inserting ``performance and integration of performance and
cost information; and''; and
(III) by adding at the end the following:
``(v) annual agency financial statements prepared in
accordance with United States generally accepted accounting
principles;'';
(C) by redesignating paragraph (8) as paragraph (10);
(D) by redesignating paragraphs (5) through (7) as
paragraphs (6) through (8), respectively;
(E) by inserting after paragraph (4) the following:
``(5) prepare, in consultation with financial management
and other appropriate experts, an agency plan to implement
the 4-year financial management plan prepared by the Director
of the Office of Management and Budget under section
3512(a)(2) of this title and to achieve and sustain effective
financial management in the agency, which shall--
``(A) be completed within 90 days of the issuance of a
governmentwide plan under section 3512(a)(2) of this title;
``(B) be revised as determined necessary by the Chief
Financial Officer;
``(C) include performance-based financial management
metrics against which the financial management performance of
the agency shall be assessed; and
``(D) be submitted upon completion or revision to the head
of the agency, the Director of the Office of Management and
Budget, the Comptroller General, and appropriate committees
of Congress, and be made publicly available;'';
(F) in paragraph (6), as so redesignated--
(i) by striking subparagraph (A);
(ii) by redesignating subparagraphs (B) through (E) as
subparagraphs (A) through (D), respectively; and
(iii) in subparagraph (C), as so redesignated, by adding
``and'' at the end;
(G) in paragraph (7), as so redesignated--
(i) in the matter preceding subparagraph (A), by striking
``and the Director of the Office of Management and Budget,''
and inserting ``, the Director of the Office of Management
and Budget, the Comptroller General, and appropriate
committees of Congress, which shall be made publicly
available and'';
(ii) in subparagraph (A), by striking ``agency;'' and
inserting ``agency, including--
``(i) the progress of the agency in implementing the agency
plan described in paragraph (5);
``(ii) the progress of the agency in implementing the
governmentwide 4-year financial management plan prepared by
the Director of the Office of Management and Budget under
section 3512(a)(2) of this title; and
``(iii) the performance of the agency against financial
management metrics established by the Director of the Office
of Management and Budget;''; and
(iii) in subparagraph (D)--
(I) by striking ``of the reports'' and inserting ``of--
``(i) the reports'';
(II) in clause (i), as so designated, by striking ``the
amendments made by the Federal Managers' Financial Integrity
Act of 1982 (Public law 97-255); and'' and inserting
``section 3512(d) of this title;''; and
(III) by adding at the end the following:
``(ii) agency spending data published under the Federal
Funding Accountability and Transparency Act of 2006 (31
U.S.C. 6101 note); and
``(iii) the reporting of the agency under the Federal
Financial Management Improvement Act of 1996 (31 U.S.C. 3512
note); and'';
(H) in paragraph (8), as so redesignated--
(i) by striking ``monitor the'' and insert ``manage the
formulation and''; and
(ii) by striking ``, and prepare and submit to the head of
the agency timely performance reports; and'' and inserting a
semicolon;
(I) by inserting after paragraph (8), as so redesignated,
the following:
``(9) be responsible for linking performance and cost
information, including the preparation and submission to the
head of the agency of timely performance reports that
incorporate cost information;'';
(J) in paragraph (10), as so redesignated--
(i) by inserting ``inflation and'' before ``costs''; and
(ii) by striking the period at the end and inserting ``;
and''; and
(K) by adding at the end the following:
``(11) coordinate with senior agency personnel, including
the Chief Data Officer, Chief Information Officer, Chief
Performance Officer, Chief Acquisition Officer, Chief Risk
Officer, and Chief Evaluation Officer of the agency on--
``(A) the exercise of authorities under this subsection;
and
``(B) the strategic planning, performance measurement and
reporting, and risk management functions of the agency.'';
and
(2) in section 903--
(A) in subsection (a), by inserting ``and who shall assist
the agency Chief Financial Officer in the performance of each
of the duties of the agency Chief Financial Officer under
this chapter'' after ``matters''; and
(B) by adding at the end the following:
``(c) Notwithstanding subchapter III of chapter 33 of title
5, in the event of a vacancy in the position of Chief
Financial Officer of an agency, the Deputy Chief Financial
Officer of the agency shall serve as the acting Chief
Financial Officer.''.
(c) Governmentwide Financial Management Plan.--Section 3512
of title 31, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (1), by striking ``a financial management
status report and a governmentwide 5-year financial
management plan'' and inserting ``a governmentwide 4-year
financial management plan and a financial management status
report'';
(B) by striking paragraph (2);
(C) by redesignating paragraph (3) as paragraph (2);
(D) in paragraph (2), as so redesignated--
(i) in subparagraph (A)--
(I) by striking ``5-year'' and inserting ``4-year'';
(II) by striking ``shall describe'' and inserting the
following: ``shall--
``(i) describe'';
[[Page S5244]]
(III) in clause (i), as so designated, by striking ``5
fiscal years to improve the financial management of the
Federal Government.'' and inserting ``4 fiscal years to
improve the financial management of the Federal Government in
a manner that is strategic, comprehensive, and cost-
effective; and''; and
(IV) by adding at the end the following:
``(ii) be developed in consultation with the Chief
Financial Officers Council, the Chief Information Officers
Council, the Chief Data Officer Council, the Chief
Acquisition Officers Council, the Council of the Inspectors
General on Integrity and Efficiency, the Government
Accountability Office, and, as appropriate, other councils
and financial management experts.''; and
(ii) in subparagraph (B)--
(I) in the matter preceding clause (i), by striking ``5-
year'' and inserting ``4-year'';
(II) in clause (iii)--
(aa) by striking ``for developing'' and inserting ``for
improving financial management systems, including--
``(I) developing''; and
(bb) by adding at the end the following:
``(II) linking performance and cost information to
facilitate effective and efficient decision making;
``(III) eliminating duplicative and unnecessary systems and
activities; and
``(IV) identifying opportunities for agencies to share
systems and services and encouraging agencies to do so where
practicable;'';
(III) by striking clause (iv);
(IV) by redesignating clause (v) as clause (iv);
(V) by inserting after clause (iv), as so redesignated, the
following:
``(v) provide a strategy for reporting performance and cost
information;'';
(VI) in clause (vi), by striking ``5-year'' and inserting
``4-year'';
(VII) in clause (vii), by striking ``identify'' and
inserting ``provide a strategy for strengthening the Federal
financial management workforce, including identification
of'';
(VIII) in clause (viii), by striking ``and'' at the end;
(IX) by redesignating clause (ix) as clause (x);
(X) by inserting after clause (viii) the following:
``(ix) include comprehensive financial management
performance-based metrics against which the financial
management performance of executive agencies can be assessed;
and''; and
(XI) in clause (x), as so redesignated, by striking ``5-
year'' and inserting ``4-year'';
(E) by inserting after paragraph (2) the following:
``(3) A financial management status report under this
subsection shall include--
``(A) a description and analysis of the status of financial
management in the executive branch, including the progress
made towards implementing the governmentwide 4-year financial
management plan, the status of remaining challenges, and, as
necessary based on obligations or expenditures, any updates
or revisions to the cost estimates included in the most
recent governmentwide 4-year financial management plan;
``(B) a summary of the performance of agencies against the
metrics developed and identified by the Director of the
Office of Management and Budget in the governmentwide 4-year
financial management plan;
``(C) a summary of the most recently completed financial
statements--
``(i) of Federal agencies under section 3515 of this title;
and
``(ii) of Government corporations;
``(D) a summary of the most recently completed financial
statement audits and reports--
``(i) of Federal agencies under subsections (e) and (f) of
section 3521 of this title; and
``(ii) of Government corporations;
``(E) a summary of reports on internal accounting and
administrative control systems submitted to the President and
Congress under subsection (d);
``(F) a listing of agencies whose financial management
systems do not comply substantially with the requirements of
section 803(a) of the Federal Financial Management
Improvement Act of 1996 (31 U.S.C. 3512 note), and a summary
statement of the efforts underway to remedy the
noncompliance; and
``(G) any other information the Director considers
appropriate to fully inform Congress regarding the financial
management of the Federal Government.'';
(F) in paragraph (4)--
(i) in subparagraph (A)--
(I) by striking ``15 months after the date of the enactment
of this subsection'' and inserting ``6 months after the date
of enactment of the Improving Federal Financial Management
Act''; and
(II) by striking ``5-year'' and inserting ``4-year''; and
(ii) in subparagraph (B)--
(I) in clause (i)--
(aa) by striking ``Not later than January 31 of each year
thereafter'' and inserting ``At a minimum, concurrently with
the submission of the budget of the United States Government
under section 1105(a) of this title made in the first full
fiscal year following any year in which the term of the
President commences under section 101 of title 3'';
(bb) by striking ``financial management status report and a
revised governmentwide 5-year'' and inserting
``governmentwide 4-year''; and
(cc) by striking ``5 fiscal years'' and all that follows
through the period at the end and inserting ``4 fiscal
years.''; and
(II) in clause (ii)--
(aa) by striking ``revised governmentwide 5-year'' and
inserting ``governmentwide 4-year''; and
(bb) by striking ``paragraph (3)(B)(viii)'' and inserting
``paragraph (2)(B)(viii)''; and
(iii) by adding at the end the following:
``(C) Each year, concurrently with the submission of the
budget of the United States Government under section 1105(a)
of this title, the Director of the Office of Management and
Budget shall submit to the appropriate committees of Congress
and the Comptroller General a financial management status
report.''; and
(G) by striking paragraph (5);
(2) in subsection (d)(2)--
(A) in subparagraph (A), by striking ``and'' at the end;
(B) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(C) a separate report on the results of the assessment
and conclusion required under subsection (e)(2).'';
(3) by redesignating subsections (e), (f), and (g) as
subsections (f), (g), and (h), respectively; and
(4) by inserting after subsection (d) the following:
``(e) The head of each executive agency shall--
``(1) in establishing the internal accounting and
administrative controls under subsection (c), identify the
key financial management information needed for effective
financial management and decision making; and
``(2) annually assess and make a conclusion on the
effectiveness of the internal controls of the executive
agency over financial reporting and key financial management
information identified under paragraph (1).''.
(d) Audits by Agencies.--Section 3521 of title 31, United
States Code, is amended--
(1) in subsection (e)--
(A) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and adjusting the
margins accordingly;
(B) by striking ``(e) Each financial'' and inserting
``(e)(1) Each financial'';
(C) in paragraph (1), as so designated, by striking
``standards--'' and inserting ``standards.''; and
(D) by inserting after paragraph (1), as so designated, the
following:
``(2) As part of each audit under this subsection, the
auditor shall--
``(A) evaluate the design of the internal control of the
agency over financial reporting and key financial
information, as assessed and reported on by the head of the
agency under section 3512(d)(2)(C) of this title;
``(B) determine whether those controls have been
implemented;
``(C) for controls that are properly designed and
implemented, perform sufficient tests of those controls to
conclude whether the controls are operating effectively,
including sufficient tests to support a low level of assessed
control risk; and
``(D) communicate controls that the auditor concludes are
not suitably designed and implemented or are not operating
effectively, as appropriate under applicable generally
accepted government auditing standards.
``(3) Audits under this subsection shall be conducted--'';
and
(2) in subsection (h), by striking ``section
3512(a)(3)(B)(viii)'' and inserting ``section
3512(a)(2)(B)(viii)''.
(e) Technical and Conforming Amendment.--Section 3348(e) of
title 5, United States Code, is amended--
(1) in paragraph (3), by adding ``or'' at the end;
(2) by striking paragraph (4); and
(3) by redesignating paragraph (5) as paragraph (4).
______