[Congressional Record (Bound Edition), Volume 158 (2012), Part 12]
[House]
[Pages 16976-16978]
[From the U.S. 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

[[Page 16977]]

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 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.
  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.

[[Page 16978]]

  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.
  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.
  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.
  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.

                          ____________________