Federal Reserve Fiscal Responsibility Act of 1996

Summary: Federal Reserve Fiscal Responsibility Act of 1996 - Instructs the Comptroller General to specifically identify, and report to the Congress on, the functions and activities of the Board of Governors of the Federal Reserve System (the Board) and of each Federal reserve bank related to the establishment and conduct of Federal monetary policy. 
Sets a deadline by which all expenditures by the Board or any Federal reserve bank (except those related to monetary policy) shall be made only as provided in advance in an appropriations Act.  Directs the Comptroller General to report annually to the Congress on Board compliance. 
Amends the Federal Reserve Act to terminate the surplus account authorization. 
Sets a deadline by which each Federal reserve bank must transfer all funds held in its surplus account to the Board for deposit into the general fund of the Treasury.  Requires the Comptroller General to determine and report to the Congress on the percentage of Federal reserve banks' net earnings that should be transferred annually for deposit into the general fund of the Treasury. 
Requires each Federal reserve bank to:  (1) obtain an annual audit from an independent auditor using generally accepted auditing standards; and (2) submit a copy of such audit to the Board. 
Directs the Board annually to obtain from an independent auditor an audit of the combined financial statements of all Federal reserve banks using generally accepted accounting standards. 
Applies specified Federal property, procurement, and information technology management law to the Board and each Federal reserve bank as if they were executive agencies.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Reserve Fiscal 
Responsibility Act of 1996''.

SEC. 2. NON-MONETARY POLICY SPENDING SUBJECT TO CONGRESSIONAL 
              APPROPRIATIONS.

    (a) Determination by Comptroller General.--
            (1) In general.--The Comptroller General of the United 
        States, in consultation with the Board, shall specifically 
        identify the functions and activities of the Board and of each 
        Federal reserve bank that are related to the establishment and 
        conduct of the monetary policy of the United States.
            (2) Report.--Not later than April 30, 1997, the Comptroller 
        General of the United States shall submit a report to the 
        Congress containing the information referred to in paragraph 
        (1).
    (b) Certain Spending Subject to Appropriations.--After September 
30, 1997, all expenditures by the Board or any Federal reserve bank 
shall be made only as provided in advance in an appropriations Act, 
except that funds to pay expenditures related to the establishment and 
conduct of monetary policy, as identified under subsection (a), shall 
not be subject to appropriations in advance.
    (c) Annual Report.--The Comptroller General of the United States 
shall submit an annual report to the Congress on the compliance of the 
Federal Reserve System with the requirements of this section.

SEC. 3. TREATMENT OF SURPLUS ACCOUNT.

    (a) Termination of Surplus Account Authorization.--
            (1) Amendments to the federal reserve act.--Section 7(a) of 
        the Federal Reserve Act (12 U.S.C. 289) is amended--
                    (A) in the subsection heading, by striking ``and 
                Surplus Funds'';
                    (B) by striking paragraphs (2) and (3);
                    (C) in paragraph (1)--
                            (i) by striking ``(1) Stockholder 
                        dividends.--''; and
                            (ii) by redesignating subparagraphs (A) and 
                        (B) as paragraphs (1) and (2), respectively, 
                        and moving the margins 2 ems to the left; and
                    (D) in paragraph (2), as redesignated, by striking 
                ``subparagraph (A)'' and inserting ``paragraph (1)''.
            (2) Return of funds.--Not later than 30 days after the date 
        of enactment of this Act, each Federal reserve bank shall 
        transfer to the Board for transfer to the Secretary of the 
        Treasury for deposit in the general fund of the Treasury, all 
        funds held on the date of enactment of this Act by that Federal 
        reserve bank in a surplus account established under section 
        7(a) of the Federal Reserve Act (as that section existed on the 
        day before the date of enactment of this Act).
    (b) Determination by Comptroller General.--
            (1) In general.--The Comptroller General of the United 
        States shall determine what percentage, if any, of the net 
        earnings of the Federal reserve banks should be transferred on 
        an annual basis to the Secretary of the Treasury for deposit in 
        the general fund of the Treasury.
            (2) Report.--Not later than 6 months after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall report its determination under paragraph (1) to 
        the Congress, together with any recommendations for necessary 
        legislative action.

SEC. 4. ANNUAL INDEPENDENT AUDITS.

    (a) Audit Required.--Each Federal reserve bank shall annually 
obtain an audit from an independent auditor using generally accepted 
auditing standards.
    (b) Auditor's Qualifications.--The independent auditor referred to 
in subsection (a) shall--
            (1) be a certified public accountant who is independent of 
        the Federal reserve bank; and
            (2) meet any other qualifications that the Board may 
        establish.
    (c)  Certification Required.--In each audit required under 
subsection (a), the auditor shall certify, under penalty of perjury--
            (1) that the auditor is a certified public accountant and 
        is independent of the Federal Reserve System; and
            (2) that the auditor conducted the audit using generally 
        accepted auditing standards.
    (d) Certification by Federal Reserve Bank.--Not later than 30 days 
after the completion of each audit required under subsection (a), the 
Federal reserve bank shall provide to the Comptroller General of the 
United States--
            (1) a certification, under penalty of perjury, that--
                    (A) the Federal reserve bank has obtained the audit 
                required under subsection (c);
                    (B) the Federal reserve bank has received the 
                certifications of the auditor required under paragraph 
                (1); and
                    (C) the audit fully complies with subsection (a); 
                and
            (2) proof that the Federal reserve bank and the Board have 
        each received a copy of the audit report.
    (e) Report to Board.--Each Federal reserve bank shall submit a copy 
of the audit conducted under this section to the Board, or an 
independent auditor designated by the Board.
    (f) Audit of Federal Reserve System.--The Board, in consultation 
with the Comptroller General of the United States, shall annually 
obtain an audit of the combined financial statements of all Federal 
reserve banks from an independent auditor, using generally accepted 
accounting standards, based on reports of audits submitted to the Board 
under subsection (d).

SEC. 5. APPLICABILITY OF FEDERAL PROCUREMENT PROCEDURES.

    (a) Applicability.--The following provisions of law apply to the 
Board and to each Federal reserve bank as if the Board and such banks 
were executive agencies for the purposes of such provisions of law:
            (1) Title III of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 251 et seq.).
            (2) Title IX of the Federal Property and Administrative 
        Services Act of 1949 (40 U.S.C. 541 et seq.).
            (3) The Office of Federal Procurement Policy Act (41 U.S.C. 
        401 et seq.).
            (4) The Information Technology Management Reform Act of 
        1996 (division E of Public Law 104-106; 40 U.S.C. 1401 et 
        seq.).
    (b) Effective Date.--This section shall become effective on October 
1, 1996.

SEC. 6. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``Board'' means the Board of Governors of the 
        Federal Reserve System; and
            (2) the term ``Federal reserve bank'' has the same meaning 
        as in the third undesignated paragraph of section 1 of the 
        Federal Reserve Act.