[Senate Report 116-278]
[From the U.S. Government Publishing Office]


                                                  Calendar No. 572

116th Congress}                                           { Report
                                 SENATE
  2d Session  }                                           { 116-278

======================================================================
 
                         CFO VISION ACT OF 2020

                               __________

                              R E P O R T

                                 OF THE

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              to accompany

                                S. 3287

           TO MODIFY THE GOVERNMENTWIDE FINANCIAL MANAGEMENT
                      PLAN, AND FOR OTHER PURPOSES

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


                October 19, 2020.--Ordered to be printed
                
                
                              __________
               
               
                    U.S. GOVERNMENT PUBLISHING OFFICE                    
                           WASHINGTON : 2020                     
          
-----------------------------------------------------------------------------------                
               
                
                
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                    RON JOHNSON, Wisconsin, Chairman
ROB PORTMAN, Ohio                    GARY C. PETERS, Michigan
RAND PAUL, Kentucky                  THOMAS R. CARPER, Delaware
JAMES LANKFORD, Oklahoma             MAGGIE HASSAN, New Hampshire
MITT ROMNEY, Utah                    KAMALA D. HARRIS, California
RICK SCOTT, Florida                  KYRSTEN SINEMA, Arizona
MICHAEL B. ENZI, Wyoming             JACKY ROSEN, Nevada
JOSH HAWLEY, Missouri

                Gabrielle D'Adamo Singer, Staff Director
                   Joseph C. Folio III, Chief Counsel
               Daniel J. Spino, Professional Staff Member
               David M. Weinberg, Minority Staff Director
               Zachary I. Schram, Minority Chief Counsel
              Michelle M. Benecke, Minority Senior Counsel
                     Laura W. Kilbride, Chief Clerk
                     
                     
                     
                                                  Calendar No. 572

116th Congress}                                           { Report
                                 SENATE
  2d Session  }                                           { 116-278

======================================================================    
     
                          CFO VISION ACT OF 2020

                                _______
                                

                October 19, 2020.--Ordered to be printed

                                _______
                                

 Mr. Johnson, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 3287]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 3287) to modify the 
governmentwide financial management plan, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment (in the nature of a substitute) and 
recommends that the bill, as amended, do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................1
III. Legislative History..............................................2
 IV. Section-by-Section Analysis......................................2
  V. Evaluation of Regulatory Impact..................................3
 VI. Congressional Budget Office Cost Estimate........................3
VII. Changes in Existing Law Made by the Bill, as Reported............5

                         I. Purpose and Summary

    The purpose of S. 3287, the CFO Vision Act of 2020, is to 
update the CFO Act of 1990 by standardizing Chief Financial 
Officers' (CFO) responsibilities, expanding the authority of 
Deputy CFOs, establishing metrics based on financial 
performance, and strengthening internal controls.

              II. Background and the Need for Legislation

    On November 15, 1990, President George H.W. Bush signed 
into law the Chief Financial Officers Act of 1990, which 
established the position at 24 Federal agencies and vested 
financial management functions in that position.\1\ While there 
has been significant progress during the thirty years since the 
CFO Act's enactment, there are opportunities for improvement. 
The Federal Government spends substantial resources on audits 
of agencies' financial statements, financial management 
systems, and financial management personnel,\2\ yet cannot 
currently produce a government-wide clean audit of financial 
statements.\3\ The Federal Government cannot produce a clean 
audit due to the Department of Defense's inability to produce 
auditable financial statements, as well as the inability of the 
Office of Management and Budget (OMB) and the Department of 
Treasury to reconcile intergovernmental transactions and 
efficiently prepare government financial statements.\4\
---------------------------------------------------------------------------
    \1\The Chief Financial Officers Act of 1990, Pub. L. No. 101-576 
(1990).
    \2\Gov't Accountability Off., U.S. Government's 2017 and 2016 
Consolidated Statements, GAO-18-316R at 46, available at https://
www.gao.gov/assets/700/690123.pdf.
    \3\Gov't Accountability Off., Financial Audit: Fiscal Years 2018 
and 2017 Consolidated Financial Statements of the U.S. Government, GAO-
19-294R (Mar. 28, 2019), at highlights, available at https://
www.gao.gov/products/GAO-19-294R.
    \4\Id.
---------------------------------------------------------------------------
    On October 30, 2019, the U.S. Senate Committee on the 
Budget held a hearing on the Chief Financial Officers Act of 
1990.\5\ At the hearing, the Government Accountability Office 
(GAO) Comptroller General Gene Dodaro testified that uniform 
CFO responsibilities and government-wide and agency-level 
financial management plans would improve agency financial 
practices, while making government-wide financial reports more 
effective.\6\
---------------------------------------------------------------------------
    \5\Chief Financial Officers Act of 1990: Achieving the Vision: 
Hearing Before the S. Committee on the Budget, (Oct. 30, 2019), 
available at https://www.budget.senate.gov/chief-financial-officers-
act-of-1990-achieving-the-
vision#:∼:text=WASHINGTON%2C%20D.C.%20%E2%80%93%20The
%20Senate%20Budget,Comptroller%20General%2C%20Government%20Accountabilit
y%20Office.
    \6\Gov't Accountability Off., Federal Financial Management: 
Substantial Progress Made Since the CFO Act of 1990 and Preliminary 
Observations, GAO-20-203T (Oct. 30, 2019), at highlights, available at 
https://www.gao.gov/products/GAO-20-203T#summary.
---------------------------------------------------------------------------

                        III. Legislative History

    S. 3287 was introduced on February 12, 2020, by Senators 
Michael Enzi (R-WY), Mark Warner (D-VA), Chuck Grassley (R-IA), 
Ron Johnson (R-WI), David Purdue (R-GA), and James Lankford (R-
OK). The bill was referred to the Committee on Homeland 
Security and Governmental Affairs. The Committee considered S. 
3287 at a business meeting on July 22, 2020.
    During the business meeting, Senator Enzi offered a 
substitute amendment to include technical assistance provided 
by OMB that gives OMB more discretion in the oversight of 
agency CFO's financial practices. The amendment was adopted by 
voice vote en bloc with Senators Johnson, Portman, Paul, 
Lankford, Romney, Scott, Enzi, Hawley, Peters, Carper, Hassan, 
Harris, and Rosen present.
    The legislation as modified by the amendment was favorably 
reported by voice vote en bloc with Senators Johnson, Portman, 
Paul, Lankford, Romney, Scott, Enzi, Hawley, Peters, Carper, 
Hassan, Harris, and Rosen present.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Short title

    This section establishes the short title of the bill as the 
CFO Vision Act of 2020.

Section 2. Chief Financial Officers; government-wide financial 
        management plan

    This section updates CFO responsibilities, expands 
authorities of deputy CFOs, and clarifies agencies' financial 
management practices.
    Subsection (a) defines the duties and responsibilities for 
agency CFOs and deputy CFOs, including budget formulation, 
budget execution, risk management, and accounting. It also 
requires CFOs to provide annual agency financial statements and 
maintain a four-year financial management plan with 
performance-based financial metrics. This section also 
clarifies that in the event that an agency's CFO position is 
vacant, deputy CFOs are to serve as acting CFOs and carry out 
the same duties.
    Subsection (b) requires OMB, in consultation with the CFO 
Council, the Chief Information Officers Council, the Chief Data 
Officers Council, the Chief Acquisition Officers Council, the 
Council of the Inspectors General on Integrity and Efficiency, 
and GAO to develop a government-wide four-year financial 
management plan with annual status reports.
    Subsection (c) updates requirements for the information and 
internal controls for agencies' annual audits.
    Subsection (d) provides technical and conforming changes to 
title 5, to ensure it complies with the changes made in title 
31.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimates

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 22, 2020.
Hon. Ron Johnson,
Chairman, Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 3287, the CFO Vision 
Act of 2020.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Matthew 
Pickford.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    S. 3287 would revise requirements for the Office of 
Management and Budget (OMB) and federal agencies to prepare 
government-wide financial plans. Under current law, those plans 
cover five years; S. 3287 would replace those with four-year 
financial plans and would expand the information to be measured 
and reported. The bill also would broaden the requirements to 
audit each agency's internal controls.
    Under S. 3287, the duties of each agency's Chief Financial 
Officer (CFO) would be expanded to:
           Implement the new four-year financial 
        management plan,
           Evaluate the agency's performance against 
        the financial metrics established in the plan, and
           Prepare performance reports that link 
        performance and cost information.
    CBO is unaware of any comprehensive information on the 
costs associated with the activities of CFOs. Reports from the 
Government Accountability Office indicate that most agencies 
have devoted significant resources to improving their financial 
management systems. The federal government spends about $45 
billion annually on civilian information technology (IT) 
investments. The Federal Government's IT Dashboard indicates 
that 80 percent of that spending is for operations and 
maintenance and about 20 percent is for modernization and 
enhancement. CBO expects that S. 3287 would codify, re-
emphasize, and add to the financial management structure of the 
federal government. CBO estimates the new activities specified 
in S. 3287 would cost a total of $20 million annually (less 
than $1 million for each agency covered under the CFO Act of 
1990), on average, over the 2021-2025 period; that spending 
would be subject to the availability of appropriated funds. 
Those costs, which are higher in the first few years would 
primarily stem from the additional administrative costs for new 
reporting requirements and changes to existing financial 
management system. Those costs would primarily be borne by the 
24 agencies that are required to comply with the law.
    Enacting S. 3287 could affect direct spending by some 
agencies that are allowed to use fees, receipts from the sale 
of goods, and other collections to cover operating costs. CBO 
estimates that any net changes in direct spending by those 
agencies would be negligible because most of them can adjust 
amounts collected to reflect changes in operating costs.
    There are two areas of uncertainty in the bill. If 
implementing S. 3287 would require investments to significantly 
modernize existing financial management systems at federal 
agencies, costs could be higher. In contrast, potential 
improvements in financial reporting from implementing the bill 
could lead to decreased costs if agency operations became more 
efficient.

                TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 3287
----------------------------------------------------------------------------------------------------------------
                                                        By fiscal year, millions of dollars--
                                    ----------------------------------------------------------------------------
                                        2020       2021       2022       2023       2024       2025    2020-2025
----------------------------------------------------------------------------------------------------------------
Estimated Authorization............          0         25         25         20         15         15        100
Estimated Outlays..................          0         25         25         20         15         15        100
----------------------------------------------------------------------------------------------------------------

    The CBO staff contact for this estimate is Matthew 
Pickford. The estimate was reviewed by H. Samuel Papenfuss, 
Deputy Director of Budget Analysis.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows: (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman):

UNITED STATES CODE

           *       *       *       *       *       *       *


TITLE 5--MONEY AND FINANCE

           *       *       *       *       *       *       *


PART III--EMPLOYEES

           *       *       *       *       *       *       *


SUBPART B--EMPLOYMENT AND RETENTION

           *       *       *       *       *       *       *


CHAPTER 33--EXAMINATION, SELECTION, AND PLACEMENT

           *       *       *       *       *       *       *



SUBCHAPTER III--DETAILS, VACANCIES, AND APPOINTMENTS

           *       *       *       *       *       *       *



SEC. 3348. VACANT OFFICE.

    (a) * * *

           *       *       *       *       *       *       *

    (e) This section shall not apply to--
          (1) the General Counsel of the National Labor 
        Relations Board;
          (2) the General Counsel of the Federal Labor 
        Relations Authority;
          (3) any Inspector General appointed by the President, 
        by and with the advice and consent of the Senate; or
          [(4) any Chief Financial Officer appointed by the 
        President, by and with the advice and consent of the 
        Senate;]
          [(5)](4) an office of an Executive agency (including 
        the Executive Office of the President, and other than 
        the Government Accountability Office) if a statutory 
        provision expressly prohibits the head of the Executive 
        agency from performing the functions and duties of such 
        office.

           *       *       *       *       *       *       *


TITLE 31--MONEY AND FINANCE

           *       *       *       *       *       *       *


SUBTITLE I--GENERAL

           *       *       *       *       *       *       *


CHAPTER 9--AGENCY CHIEF FINANCIAL OFFICERS

           *       *       *       *       *       *       *



SEC. 902. AUTHORITY AND FUNCTIONS OF AGENCY CHIEF FINANCIAL OFFICERS.

    (a) [An] 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, and accounting. In carrying out the 
preceding sentence, each agency Chief Financial Officer shall--
          (1) * * *
          (2) * * *
          (3) develop and maintain an integrated agency 
        accounting and financial management system, including 
        financial reporting and internal controls, which--
                  (A) * * *
                  (B) * * *
                  (C) complies with any other requirements 
                applicable to such areas and systems; and
                  (D) provides for--
                          (i) complete, reliable, consistent, 
                        and timely information which is 
                        prepared on a uniform basis and which 
                        is responsive to the financial 
                        information needs of agency management;
                          (ii) the development and reporting of 
                        cost information;
                          (iii) the integration of accounting 
                        and budgeting information; [and]
                          (iv) the systematic measurement of 
                        [performance,] performance and 
                        integration of performance and cost 
                        information; and
                          (v) annual agency financial 
                        statements prepared in accordance with 
                        United States generally accepted 
                        accounting principles;
          (4) * * *
          (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 government wide 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;
          [(5)](6) direct, manage, and provide policy guidance 
        and oversight of agency financial management personnel, 
        activities, and operations, including--
                  [(A) the preparation and annual revision of 
                an agency plan to--
                          (i) implement the 5-year financial 
                        management plan prepared by the 
                        Director of the Office of Management 
                        and Budget under section 3512(a)(3) of 
                        this title; and
                          (ii) comply with the requirements 
                        established under sections 3515 and 
                        subsections (e) and (f) of section 3521 
                        of this title;]
                  [(B)](A) the development of agency financial 
                management budgets;
                  [(C)](B) the recruitment, selection, and 
                training of personnel to carry out agency 
                financial management functions;
                  [(D)](C) the approval and management of 
                agency financial management systems design or 
                enhancement projects; and
                  [(E)](D) the implementation of agency asset 
                management systems, including systems for cash 
                management, credit management, debt collection, 
                and property and inventory management and 
                control;
          [(6)](7) prepare and transmit, by not later than 60 
        days after the submission of the audit report required 
        by section 3521(f) of this title, an annual report to 
        the agency head [and the Director of the Office of 
        Management and Budget] the Director of the Office of 
        Management and Budget, the Comptroller General, and 
        appropriate committees of Congress, which shall be made 
        publicaly available and, which shall include--
                  (A) a description and analysis of the status 
                of financial management of the [agency] 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 government-wide 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;
                  (B) * * *
                  (C) * * *
                  (D) a summary [of the reports] of--
                          (i) the reports; on internal 
                        accounting and administrative control 
                        systems submitted to the President and 
                        the Congress under [the amendments made 
                        by the Federal Managers' Financial 
                        Integrity Act of 1982 (Public Law 97-
                        255); and] section 3512(d) of this 
                        title;
                          (ii) agency spending data published 
                        under the Federal Funding 
                        Accountability and Transparency Act of 
                        2006 (31 U.S.C. 6106 note); and
                          (iii) the reporting of the agency 
                        under the Federal Financial Management 
                        Improvement Act of 1996 (31 U.S.C. 3512 
                        note); and
          [(7)](8) * * *
          (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;
          [(8)](10) review, on a biennial basis, the fees, 
        royalties, rents, and other charges imposed by the 
        agency for services and things of value it provides, 
        and make recommendations on revising those charges to 
        reflect inflation and costs incurred by it in providing 
        those services and things of value[.]; and
          (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.

           *       *       *       *       *       *       *


SEC. 903. ESTABLISHMENT OF AGENCY DEPUTY CHIEF FINANCIAL OFFICERS.

    (a) There shall be within each agency described in section 
901(b) an agency Deputy Chief Financial Officer, who shall 
report directly to the agency Chief Financial Officer on 
financial management matters 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. The position of agency Deputy Chief Financial Officer 
shall be a career-reserved position in the Senior Executive 
Service.
    (b) * * *
    (c) Notwithstanding subchapter III of chapter 33 of title 
5, United States Code, 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.

           *       *       *       *       *       *       *


SUBTITLE III--FINANCIAL MANAGEMENT

           *       *       *       *       *       *       *


CHAPTER 35--ACCOUNTING AND COLLECTION

           *       *       *       *       *       *       *



SUBCHAPTER II--ACCOUNTING REQUIREMENTS, SYSTEMS, AND INFORMATION

           *       *       *       *       *       *       *



SEC. 3512. EXECUTIVE AGENCY ACCOUNTING AND OTHER FINANCIAL MANAGEMENT 
                    REPORTS AND PLANS.

    (a)
          (1) The Director of the Office of Management and 
        Budget shall prepare and submit to the appropriate 
        committees of the Congress and make available on the 
        website described under section 1122 [a financial 
        management status report and a government 5-year 
        financial management plan] a government wide 4-year 
        financial management plan and a financial management 
        status report.
          [(2) 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
                  (B) a summary of the most recently completed 
                financial statements--
                          (i) of Federal agencies under section 
                        3515 of this title; and
                          (ii) of Government corporations;
                  (C) a summary of the most recently completed 
                financial statement audits and reports--
                          (i) of Federal agencies under section 
                        3521 (e) and (f) of this title; and
                          (ii) of Government corporations;
                  (D) a summary of reports on internal 
                accounting and administrative control systems 
                submitted to the President and the Congress 
                under the amendments made by the Federal 
                Managers' Financial Integrity Act of 1982 
                (Public Law 97-255);
                  (E) a listing of agencies whose financial 
                management systems do not comply substantially 
                with requirements of Section 3(a) of the 
                Federal Financial Management Improvement Act of 
                1996, and a summary statement of the efforts 
                underway to remedy the noncompliance; and
                  (F) any other information the Director 
                considers appropriate to fully inform the 
                Congress regarding the financial management of 
                the Federal Government.]
          [(3)](2)
                  (A) A government-wide [5-year] 4-year 
                financial management plan under this subsection 
                [shall describe] shall--
                          (i) describe the activities the 
                        Director, the Deputy Director for 
                        Management, the Controller of the 
                        Office of Federal Financial Management, 
                        and agency Chief Financial Officers 
                        shall conduct over the next [5 fiscal 
                        years to improve the financial 
                        management of the Federal Government.] 
                        4 fiscal years to improve the financial 
                        management of the Federal Government in 
                        a manner that is strategic, 
                        comprehensive, and cost-effective; and
                          (ii) be developed in consultation 
                        with the Chief Financial Officers 
                        Council, the Chief Information Officers 
                        Council, Chief Data Officer Council, 
                        the Chief Acquisition Officers Council, 
                        the Council of the Inspectors General 
                        on Integrity and Efficiency, the 
                        Government Accountability Office, and 
                        other Appropriate financial management 
                        experts.
                  (B) Each government-wide [5-year] 4-year 
                financial management plan prepared under this 
                subsection shall--
                          (i) describe the existing financial 
                        management structure and any changes 
                        needed to establish an integrated 
                        financial management system;
                          (ii) be consistent with applicable 
                        accounting principles, standards, and 
                        requirements;
                          (iii) provide a strategy [for 
                        developing] for improving financial 
                        management systems, including--
                                  (I) developing and 
                                integrating individual agency 
                                accounting, financial 
                                information, and other 
                                financial management systems to 
                                ensure adequacy, consistency, 
                                and timeliness of financial 
                                information;
                                  (II) linking performance and 
                                cost information to facilitate 
                                effective and efficient 
                                decision making;
                                  (III) eliminating duplicative 
                                and unnecessary systems; and
                                  (IV) identifying 
                                opportunities for agencies to 
                                share systems and encouraging 
                                agencies to do so where 
                                practicable;
                          [(iv) identify and make proposals to 
                        eliminate duplicative and unnecessary 
                        systems, including encouraging agencies 
                        to share systems which have sufficient 
                        capacity to perform the functions 
                        needed;]
                          [(v)] (iv) identify projects to bring 
                        existing systems into compliance with 
                        the applicable standards and 
                        requirements;
                          (v) provide a strategy for reporting 
                        performance and cost information;
                          (vi) contain milestones for equipment 
                        acquisitions and other actions 
                        necessary to implement the [5-year] 4-
                        year plan consistent with the 
                        requirements of this section;
                          (vii) [identify] provide a strategy 
                        for strengthening the Federal financial 
                        management workforce, including 
                        identification of financial management 
                        personnel needs and actions to ensure 
                        those needs are met;
                          (viii) include a plan for ensuring 
                        the annual audit of financial 
                        statements of executive agencies 
                        pursuant to section 3521(h) of this 
                        title; [and]
                          (ix) include comprehensive financial 
                        management performance-based metrics 
                        against which the financial management 
                        performance of executive agencies can 
                        be assessed; and
                          [(ix)] (x)estimate the costs of 
                        implementing the government-wide [5-
                        year] 4-year plan.
          (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 government wide 4-year 
                financial management plan, the status of 
                remaining challenges, and cost estimates of 
                improvements to Federal financial management;
                  (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 government wide 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.
          (4)
                  (A) Not later than [15 months after the date 
                of the enactment of this subsection] January 31 
                after the date of enactment of the CFO Vision 
                Act of 2020, the Director of the Office of 
                Management and Budget shall submit the first 
                financial management status report and 
                government wide [5-year] 4-year financial 
                management plan under this subsection to the 
                appropriate committees of the Congress.
                  (B)
                          (i) [Not later than January 31 of 
                        each year thereafter] 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 2, the Director of the 
                        Office of Management and Budget shall 
                        submit to the appropriate committees of 
                        the Congress a [financial management 
                        status report and a revised government 
                        wide 5-year] government wide 4-year 
                        financial management plan to cover the 
                        succeeding [5 fiscal years] 4 fiscal 
                        years, including a report on the 
                        accomplishments of the executive branch 
                        in implementing the plan during the 
                        preceding fiscal year.
                          (ii) The Director shall include with 
                        each [revised government wide 5-year] 
                        government 4-year financial management 
                        plan a description of any substantive 
                        changes in the financial statement 
                        audit plan required by [paragraph 
                        (3)(B)(viii),] paragraph (2)(B)(viii) 
                        progress made by executive agencies in 
                        implementing the audit plan, and any 
                        improvements in Federal Government 
                        financial management related to 
                        preparation and audit of financial 
                        statements of executive agencies.
                  (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.
          [(5) Not later than 30 days after receiving each 
        annual report undersection 902(a)(6) of this title, the 
        Director shall transmit to the Chairman of the 
        Committee on Government Operations of the House of 
        Representatives and the Chairman of the Committee on 
        Governmental Affairs of the Senate a final copy of that 
        report and any comments on the report by the Director.]
    (b) * * *
    (c) * * *
    (d)
          (1) In consultation with the Comptroller General, the 
        Director of the Office of the Office of Management and 
        Budget--
                  (A) shall establish by December 31, 1982, 
                guidelines that the head of each executive 
                agency shall follow in evaluating the internal 
                accounting and administrative control systems 
                of the agency to decide whether the systems 
                comply with subsection (c) of this section; and 
                (B) may change a guideline when considered 
                necessary.
                  (B) may change a guideline when considered 
                necessary.
          (2) By December 31 of each year (beginning in 1983), 
        the head of each executive agency, based on an 
        evaluation conducted according to guidelines prescribed 
        under paragraph (1) of this subsection, shall prepare a 
        statement on whether the systems of the agency comply 
        with subsection (c) of this section, including--
                  (A) if the head of an executive agency 
                decides the systems do not comply with 
                subsection (c) of this section, a report 
                identifying any material weakness in the 
                systems and describing the plans and schedule 
                for correcting the weakness; [and]
                  (B) a separate report on whether the 
                accounting system of the agency conforms to the 
                principles, standards, and requirements the 
                Comptroller General prescribes undersection 
                3511(a) of this title.
                  (C) a separate report on the results of the 
                assessment required under subsection (e)(2).
          (3) * * *
    (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 decision making; and
          (2) annually assess the effectiveness of the internal 
        controls of the executive agency over financial 
        reporting and key financial management information 
        identified under paragraph (1).
    [(e)] (f) * * *
    [(f)] (g) * * *
    [(g)] (h) * * *

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SUBCHAPTER III--AUDITING AND SETTLING ACCOUNT

           *       *       *       *       *       *       *



SEC. 3521. AUDITS BY AGENCIES.

    (a) * * *

           *       *       *       *       *       *       *

    [(e) Each financial](e)
          (1) Each financial statement prepared under section 
        3515 by an agency shall be audited in accordance with 
        applicable generally accepted government auditing 
        [standards,]standards
          (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 and 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--
                [(1)](A) in the case of an agency having an 
                Inspector General appointed under the Inspector 
                General Act of 1978 (5 U.S.C. App.), by the 
                Inspector General or by an independent external 
                auditor, as determined by the Inspector General 
                of the agency; and
                [(2)](B) in any other case, by an independent 
                external auditor, as determined by the head of 
                the agency.
    (f) * * *
    (g) * * *
    (h) Each financial statement prepared by an executive 
agency for a fiscal year after fiscal year 1991 shall be 
audited in accordance with this section and the plan required 
by section [3512(a)(3)(B)(viii)] 3512(a)(2)(B)(viii) of this 
title.

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