Improving Federal Financial Management Act · Introduced in Senate (2025-01-13)

SEC. 2. Chief financial officers; governmentwide financial management plan

Chief financial officers; governmentwide financial management plan

(a) Chief Financial Officer and Deputy Chief Financial Officer

of title 31, United States Code, is amended— Chapter 9
Chief Financial Officer and Deputy Chief Financial Officer
- in section 902(a)—
  - in the matter preceding paragraph (1), by striking Anand 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;
  - in paragraph (3)—
    - (i) in subparagraph (C), by inserting before ; and
    - (ii) in subparagraph (D)—
    - in clause (iii), by striking and at the end;
    - in clause (iv), by striking performance;and inserting performance and integration of performance and cost information; and; and
    - by adding at the end the following:
      - (v) annual agency financial statements prepared in accordance with United States generally accepted accounting principles;
  - by redesignating paragraph (8) as paragraph (10);
  - by redesignating paragraphs (5) through (7) as paragraphs (6) through (8), respectively;
  - by inserting after paragraph (4) the following:
    - 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—
      - be completed within 90 days of the issuance of a governmentwide plan under section 3512(a)(2) of this title;
      - be revised as determined necessary by the Chief Financial Officer;
      - include performance-based financial management metrics against which the financial management performance of the agency shall be assessed; and
      - 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;
  - 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 at the end; and
  - 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 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;
    - (iii) in subparagraph (D)—
    - by striking and inserting
      - of—
        
        (i) the reports
    - in clause (i), as so designated, by striking the amendments made by the Federal Managers' Financial Integrity Act of 1982 (Public law 97–255); andand inserting section 3512(d) of this title;; and
    - by adding at the end the following:
      - (ii) agency spending data published under the Federal Funding Accountability and Transparency Act of 2006 ( note); and 31 U.S.C. 6101
      - (iii) the reporting of the agency under the Federal Financial Management Improvement Act of 1996 ( note); and 31 U.S.C. 3512
  - in paragraph (8), as so redesignated—
    - (i) by striking and insert ; and
    - (ii) by striking and inserting a semicolon;
  - by inserting after paragraph (8), as so redesignated, the following:
    - 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;
  - in paragraph (10), as so redesignated—
    - (i) by inserting before ; and
    - (ii) by striking the period at the end and inserting ; and; and
  - by adding at the end the following:
    - 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—
      - the exercise of authorities under this subsection; and
      - the strategic planning, performance measurement and reporting, and risk management functions of the agency.
- in section 903—
  - in subsection (a), by inserting after ; and
  - by adding at the end the following:
    - Notwithstanding subchapter III of 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. chapter 33

(b) Governmentwide financial management plan

Section 3512 of title 31, United States Code, is amended—
Governmentwide financial management plan
- in subsection (a)—
  - in paragraph (1), by striking a financial management status report and a governmentwide 5-year financial management planand inserting a governmentwide 4-year financial management plan and a financial management status report;
  - by striking paragraph (2);
  - by redesignating paragraph (3) as paragraph (2);
  - in paragraph (2), as so redesignated—
    - (i) in subparagraph (A)—
    - by striking 5-yearand inserting 4-year;
    - by striking and inserting the following:
      - shall—
        
        (i) describe
    - 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
    - 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.
    - (ii) in subparagraph (B)—
    - in the matter preceding clause (i), by striking 5-yearand inserting 4-year;
    - in clause (iii)—
    - by striking and inserting
      - for improving financial management systems, including—
      - developing
    - by adding at the end the following:
      - linking performance and cost information to facilitate effective and efficient decision making;
      - eliminating duplicative and unnecessary systems and activities; and
      - identifying opportunities for agencies to share systems and services and encouraging agencies to do so where practicable;
    - by striking clause (iv);
    - by redesignating clause (v) as clause (iv);
    - by inserting after clause (iv), as so redesignated, the following:
      - (v) provide a strategy for reporting performance and cost information;
    - in clause (vi), by striking 5-yearand inserting 4-year;
    - in clause (vii), by striking identifyand inserting provide a strategy for strengthening the Federal financial management workforce, including identification of;

Section 3521 of title 31, United States Code, is amended—
Audits by agencies
- in subsection (e)—
  - by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and adjusting the margins accordingly;
  - by striking (e) Each financialand inserting (e)(1) Each financial;
  - in paragraph (1), as so designated, by striking standards—and inserting standards.; and
  - by inserting after paragraph (1), as so designated, the following:
    - As part of each audit under this subsection, the auditor shall—
      - 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;
      - determine whether those controls have been implemented;
      - 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
      - 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.
    - Audits under this subsection shall be conducted—
- in subsection (h), by striking section 3512(a)(3)(B)(viii)and inserting section 3512(a)(2)(B)(viii).

(d) Technical and conforming amendment

Section 3348(e) of title 5, United States Code, is amended—
Technical and conforming amendment
- in paragraph (3), by adding at the end; or
- by striking paragraph (4); and
- by redesignating paragraph (5) as paragraph (4).

S. 75

Table of contents

SEC. 1. Short title

SEC. 2. Chief financial officers; governmentwide financial management plan