    [Public Papers of the Presidents of the United States: William J. Clinton (1994, Book II)]
    [October 13, 1994]
    [Pages 1742-1743]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement on Signing the Government Management Reform Act of 1994
    October 13, 1994

        Today I have signed into law S. 2170, the ``Government Management
    Reform Act of 1994.''
        In September of last year, Vice President Gore and his team at the
    National Performance Review (NPR) stated this simple fact in their
    report entitled, ``From Red Tape to Results'':
          ``Management isn't about guessing, it's about knowing. Those in
            positions of responsibility must have the information they need
            to make good decisions. Good managers have the right information
            at their fingertips. Poor managers don't.''
        By passing the Government Management Reform Act of 1994, which is
    largely based on ideas developed by the NPR, the Congress has helped
    ensure that the Federal Government's managers will have the financial
    information and flexibility they need to make sound policy decisions and
    manage resources.
        The Act expands the coverage initially mandated by the Chief
    Financial Officers Act so that 24 major Government departments and
    agencies will now provide annual audited financial reports of all their
    activities, spending, and revenues. Not later than 1998, the Federal
    Government will produce a consolidated financial statement covering
    virtually all of the $1.5 trillion annual budget authority of the
    Government and the revenues it receives.
        The NPR report also stated that ``we believe Americans deserve
    numbers they can trust'' and recommended that the Federal Government
    provide an annual accountability report to our citizens. This Act's
    requirement for an audited consolidated financial report is a step in
    achieving this goal. To advance the process of accountability, I have
    requested that the Secretary of the Treasury, with the Director of the
    Office of Management and Budget (OMB), also produce an Annual
    Accountability Report to the Citizens in 1995, as recommended by the
    Vice President in the NPR report. The Accountability Report will be a
    straightforward description of the money spent and its effects on
    achieving results.
        Measuring results is an important management goal of this
    Administration. The financial statements promise to be an excellent tool
    for providing agency performance and financial data, so we can have a
    closer look at results and whether Government indeed works better and
    costs less.
        S. 2170 contains a number of other significant provisions. These
    include: the establishment of pilot programs to create franchising
    operations that will consolidate administrative support services,
    improve competition, and cut costs; expansion of the use of electronic
    funds transfers for Federal payments; and authority for the OMB Director
    to streamline management reporting to the Congress.
        The Franchise Fund Pilot Program authorized by this Act will create
    internal markets through ``franchising'' common administrative support
    services to many agencies so the service providers may compete with one
    another. Injecting competition and market forces into the delivery of
    these services will reduce duplication, lower overhead costs, and better
    serve the American people.
        Starting on January 1, 1995, S. 2170 promotes the use of direct
    deposit through electronic funds transfer for Federal wages, salaries,
    and retirement payments. The costs of disbursing money electronically
    are considerably less than the costs of printing, mailing, and
    processing paper checks.
        The Act also provides tools to the OMB Director to consolidate and
    streamline management reporting processes. In particular, the Director
    will have the flexibility to determine the most meaningful timing and
    presentation of financial management reports from agencies to OMB and
    the Congress.
        By expanding the scope of the financial statement requirements, the
    Act ensures the American people will have financial information they can
    trust. We will be better able to show the

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    taxpayers what they are getting for their dollar. In short, this law
    means greater accountability. I commend the Congress for passing the
    Government Management Reform Act of 1994, and I am pleased to sign this
    legislation into law.

                                                          William J. Clinton

    The White House,
    October 13, 1994.

    Note: S. 2170, approved October 13, was assigned Public Law No. 103-356.