[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

[[Page 1743]]

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.