II 

118TH CONGRESS 

2D SESSION S. 4700 

To modify the governmentwide financial management plan, and for other 

purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 11 (legislative day, JULY 10), 2024 

Mr. LANKFORD introduced the following bill; which was read twice and 

referred to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To modify the governmentwide financial management plan, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Improving Federal Fi5 nancial Management Act’’. 

6 SEC. 2. CHIEF FINANCIAL OFFICERS; GOVERNMENTWIDE 

7 FINANCIAL MANAGEMENT PLAN. 

8 (a) CHIEF FINANCIAL OFFICER AND DEPUTY CHIEF

9 FINANCIAL OFFICER.—Chapter 9 of title 31, United 

10 States Code, is amended— 


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1 (1) in section 902(a)— 

2 (A) in the matter preceding paragraph (1), 

3 by striking ‘‘An’’ and inserting ‘‘It shall be the 

4 duty and responsibility of each agency Chief Fi5 nancial Officer to oversee and provide leader6 ship in the areas of budget formulation and 

7 execution, planning and performance, risk man8 agement, internal controls, financial systems, 

9 accounting, and other areas as the Director of 

10 the Office of Management and Budget may des11 ignate. In carrying out the preceding sentence, 

12 each’’; 

13 (B) in paragraph (3)— 

14 (i) in subparagraph (C), by inserting 

15 ‘‘areas and’’ before ‘‘systems’’; and 

16 (ii) in subparagraph (D)— 

17 (I) in clause (iii), by striking 

18 ‘‘and’’ at the end; 

19 (II) in clause (iv), by striking 

20 ‘‘performance;’’ and inserting ‘‘per21 formance and integration of perform22 ance and cost information; and’’; and 

23 (III) by adding at the end the 

24 following: 


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1 ‘‘(v) annual agency financial state2 ments prepared in accordance with United 

3 States generally accepted accounting prin4 ciples;’’. 

5 (C) by redesignating paragraph (8) as 

6 paragraph (10); 

7 (D) by redesignating paragraphs (5) 

8 through (7) as paragraphs (6) through (8), re9 spectively; 

10 (E) by inserting after paragraph (4) the 

11 following: 

12 ‘‘(5) prepare, in consultation with financial manage13 ment and other appropriate experts, an agency plan to im14 plement the 4-year financial management plan prepared 

15 by the Director of the Office of Management and Budget 

16 under section 3512(a)(2) of this title and to achieve and 

17 sustain effective financial management in the agency, 

18 which shall— 

19 ‘‘(A) be completed within 90 days of the 

20 issuance of a governmentwide plan under section 

21 3512(a)(2) of this title; 

22 ‘‘(B) be revised as determined necessary by the 

23 Chief Financial Officer; 

24 ‘‘(C) include performance-based financial man25 agement metrics against which the financial manVerDate Sep 11 2014 06:21 Jul 12, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4700.IS S4700

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1 agement performance of the agency shall be as2 sessed; and 

3 ‘‘(D) be submitted upon completion or revision 

4 to the head of the agency, the Director of the Office 

5 of Management and Budget, the Comptroller Gen6 eral, and appropriate committees of Congress, and 

7 be made publicly available;’’; 

8 (F) in paragraph (6), as so redesignated— 

9 (i) by striking subparagraph (A); 

10 (ii) by redesignating subparagraphs 

11 (B) through (E) as subparagraphs (A) 

12 through (D), respectively; and 

13 (iii) in subparagraph (C), as so redes14 ignated, by adding ‘‘and’’ at the end; 

15 (G) in paragraph (7), as so redesignated— 

16 (i) in the matter preceding subpara17 graph (A), by striking ‘‘and the Director of 

18 the Office of Management and Budget,’’ 

19 and inserting ‘‘, the Director of the Office 

20 of Management and Budget, the Comp21 troller General, and appropriate commit22 tees of Congress, which shall be made pub23 licly available and’’; 


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1 (ii) in subparagraph (A), by striking 

2 ‘‘agency;’’ and inserting ‘‘agency, includ3 ing— 

4 ‘‘(i) the progress of the agency in imple5 menting the agency plan described in paragraph 

6 (5); 

7 ‘‘(ii) the progress of the agency in imple8 menting the governmentwide 4-year financial 

9 management plan prepared by the Director of 

10 the Office of Management and Budget under 

11 section 3512(a)(2) of this title; and 

12 ‘‘(iii) the performance of the agency 

13 against financial management metrics estab14 lished by the Director of the Office of Manage15 ment and Budget;’’; and 

16 (iii) in subparagraph (D)— 

17 (I) by striking ‘‘of the reports’’ 

18 and inserting ‘‘of— 

19 ‘‘(i) the reports’’; 

20 (II) in clause (i), as so des21 ignated, by striking ‘‘the amendments 

22 made by the Federal Managers’ Fi23 nancial Integrity Act of 1987 (Public 

24 law 97–255); and’’ and inserting ‘‘sec25 tion 3512(d) of this title;’’; and 


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1 (III) by adding at the end the 

2 following: 

3 ‘‘(ii) agency spending data published under 

4 the Federal Funding Accountability and Trans5 parency Act of 2006 (31 U.S.C. 6101 note); 

6 and 

7 ‘‘(iii) the reporting of the agency under the 

8 Federal Financial Management Improvement 

9 Act of 1996 (31 U.S.C. 3512 note); and’’; 

10 (H) in paragraph (8), as so redesignated— 

11 (i) by striking ‘‘monitor the’’ and in12 sert ‘‘manage the formulation and’’; and 

13 (ii) by striking ‘‘, and prepare and 

14 submit to the head of the agency timely 

15 performance reports; and’’ and inserting a 

16 semicolon; 

17 (I) by inserting after paragraph (8), as so 

18 redesignated, the following: 

19 ‘‘(9) be responsible for linking performance and cost 

20 information, including the preparation and submission to 

21 the head of the agency of timely performance reports that 

22 incorporate cost information;’’; 

23 (J) in paragraph (10), as so redesig24 nated— 


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1 (i) by inserting ‘‘inflation and’’ before 

2 ‘‘costs’’; and 

3 (ii) by striking the period at the end 

4 and inserting ‘‘; and’’; and 

5 (K) by adding at the end the following: 

6 ‘‘(11) coordinate with senior agency personnel, 

7 including the Chief Data Officer, Chief Information 

8 Officer, Chief Performance Officer, Chief Acquisition 

9 Officer, Chief Risk Officer, and Chief Evaluation Of10 ficer of the agency on— 

11 ‘‘(A) the exercise of authorities under this 

12 subsection; and 

13 ‘‘(B) the strategic planning, performance 

14 measurement and reporting, and risk manage15 ment functions of the agency.’’; and 

16 (2) in section 903— 

17 (A) in subsection (a), by inserting ‘‘and 

18 who shall assist the agency Chief Financial Of19 ficer in the performance of each of the duties 

20 of the agency Chief Financial Officer under this 

21 chapter’’ after ‘‘matters’’; and 

22 (B) by adding at the end the following: 

23 ‘‘(c) Notwithstanding subchapter III of chapter 33 of 

24 title 5, in the event of a vacancy in the position of Chief 

25 Financial Officer of an agency, the Deputy Chief FinanVerDate Sep 11 2014 06:21 Jul 12, 2024 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S4700.IS S4700

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1 cial Officer of the agency shall serve as the acting Chief 

2 Financial Officer.’’. 

3 (b) GOVERNMENTWIDE FINANCIAL MANAGEMENT

4 PLAN.—Section 3512 of title 31, United States Code, is 

5 amended— 

6 (1) in subsection (a)— 

7 (A) in paragraph (1), by striking ‘‘a finan8 cial management status report and a govern9 mentwide 5-year financial management plan’’ 

10 and inserting ‘‘a governmentwide 4-year finan11 cial management plan and a financial manage12 ment status report’’; 

13 (B) by striking paragraph (2); 

14 (C) by redesignating paragraph (3) as 

15 paragraph (2); 

16 (D) in paragraph (2), as so redesignated— 

17 (i) in subparagraph (A)— 

18 (I) by striking ‘‘5-year’’ and in19 serting ‘‘4-year’’; 

20 (II) by striking ‘‘shall describe’’ 

21 and inserting the following: ‘‘shall— 

22 ‘‘(i) describe’’; 

23 (III) in clause (i), as so des24 ignated, by striking ‘‘5 fiscal years to 

25 improve the financial management of 


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1 the Federal Government.’’ and insert2 ing ‘‘4 fiscal years to improve the fi3 nancial management of the Federal 

4 Government in a manner that is stra5 tegic, comprehensive, and cost-effec6 tive; and’’; and 

7 (IV) by adding at the end the fol8 lowing: 

9 ‘‘(ii) be developed in consultation with the 

10 Chief Financial Officers Council, the Chief In11 formation Officers Council, the Chief Data Offi12 cer Council, the Chief Acquisition Officers 

13 Council, the Council of the Inspectors General 

14 on Integrity and Efficiency, the Government 

15 Accountability Office, and, as appropriate, other 

16 councils and financial management experts.’’; 

17 and 

18 (ii) in subparagraph (B)— 

19 (I) in the matter preceding clause 

20 (i), by striking ‘‘5-year’’ and inserting 

21 ‘‘4-year’’; 

22 (II) in clause (iii)— 

23 (aa) by striking ‘‘for devel24 oping’’ and inserting ‘‘for imVerDate Sep 11 2014 06:21 Jul 12, 2024 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S4700.IS S4700

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1 proving financial management 

2 systems, including— 

3 ‘‘(I) developing’’; and 

4 (bb) by adding at the end 

5 the following: 

6 ‘‘(II) linking performance and cost in7 formation to facilitate effective and effi8 cient decision making; 

9 ‘‘(III) eliminating duplicative and un10 necessary systems and activities; and 

11 ‘‘(IV) identifying opportunities for 

12 agencies to share systems and services and 

13 encouraging agencies to do so where prac14 ticable;’’; 

15 (III) by striking clause (iv); 

16 (IV) by redesignating clause (v) 

17 as clause (iv); 

18 (V) by inserting after clause (iv), 

19 as so redesignated, the following: 

20 ‘‘(v) provide a strategy for reporting per21 formance and cost information;’’; 

22 (VI) in clause (vi), by striking 

23 ‘‘5-year’’ and inserting ‘‘4-year’’; 

24 (VII) in clause (vii), by striking 

25 ‘‘identify’’ and inserting ‘‘provide a 


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1 strategy for strengthening the Federal 

2 financial management workforce, in3 cluding identification of’’; 

4 (VIII) in clause (viii), by striking 

5 ‘‘and’’ at the end; 

6 (IX) by redesignating clause (ix) 

7 as clause (x); 

8 (X) by inserting after clause 

9 (viii) the following: 

10 ‘‘(ix) include comprehensive financial man11 agement performance-based metrics against 

12 which the financial management performance of 

13 executive agencies can be assessed; and’’; and 

14 (XI) in clause (x), as so redesig15 nated, by striking ‘‘5-year’’ and in16 serting ‘‘4-year’’; 

17 (E) by inserting after paragraph (2) the 

18 following: 

19 ‘‘(3) A financial management status report under this 

20 subsection shall include— 

21 ‘‘(A) a description and analysis of the status of 

22 financial management in the executive branch, in23 cluding the progress made towards implementing the 

24 governmentwide 4-year financial management plan, 

25 the status of remaining challenges, and, as necessary 


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1 based on obligations or expenditures, any updates or 

2 revisions to the cost estimates included in the most 

3 recent governmentwide 4-year financial management 

4 plan; 

5 ‘‘(B) a summary of the performance of agencies 

6 against the metrics developed and identified by the 

7 Director of the Office of Management and Budget in 

8 the governmentwide 4-year financial management 

9 plan; 

10 ‘‘(C) a summary of the most recently completed 

11 financial statements— 

12 ‘‘(i) of Federal agencies under section 

13 3515 of this title; and 

14 ‘‘(ii) of Government corporations; 

15 ‘‘(D) a summary of the most recently completed 

16 financial statement audits and reports— 

17 ‘‘(i) of Federal agencies under subsections 

18 (e) and (f) of section 3521 of this title; and 

19 ‘‘(ii) of Government corporations; 

20 ‘‘(E) a summary of reports on internal account21 ing and administrative control systems submitted to 

22 the President and Congress under subsection (d); 

23 ‘‘(F) a listing of agencies whose financial man24 agement systems do not comply substantially with 

25 the requirements of section 803(a) of the Federal 


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1 Financial Management Improvement Act of 1996 

2 (31 U.S.C. 3512 note), and a summary statement of 

3 the efforts underway to remedy the noncompliance; 

4 and 

5 ‘‘(G) any other information the Director con6 siders appropriate to fully inform Congress regard7 ing the financial management of the Federal Gov8 ernment.’’; 

9 (F) in paragraph (4)— 

10 (i) in subparagraph (A)— 

11 (I) by striking ‘‘15 months after 

12 the date of the enactment of this sub13 section’’ and inserting ‘‘6 months 

14 after the date of enactment of the Im15 proving Federal Financial Manage16 ment Act’’; and 

17 (II) by striking ‘‘5-year’’ and in18 serting ‘‘4-year’’; and 

19 (ii) in subparagraph (B)— 

20 (I) in clause (i)— 

21 (aa) by striking ‘‘Not later 

22 than January 31 of each year 

23 thereafter’’ and inserting ‘‘At a 

24 minimum, concurrently with the 

25 submission of the budget of the 


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1 United States Government under 

2 section 1105(a) of this title made 

3 in the first full fiscal year fol4 lowing any year in which the 

5 term of the President commences 

6 under section 101 of title 3’’; 

7 (bb) by striking ‘‘financial 

8 management status report and a 

9 revised governmentwide 5-year’’ 

10 and inserting ‘‘governmentwide 

11 4-year’’; and 

12 (cc) by striking ‘‘5 fiscal 

13 years’’ and all that follows 

14 through the period at the end 

15 and inserting ‘‘4 fiscal years.’’; 

16 and 

17 (II) in clause (ii)— 

18 (aa) by striking ‘‘revised 

19 governmentwide 5-year’’ and in20 serting ‘‘governmentwide 4-year’’; 

21 and 

22 (bb) by striking ‘‘paragraph 

23 (3)(B)(viii)’’ and inserting ‘‘para24 graph (2)(B)(viii)’’; and 


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1 (iii) by adding at the end the fol2 lowing: 

3 ‘‘(C) Each year, concurrently with the submis4 sion of the budget of the United States Government 

5 under section 1105(a) of this title, the Director of 

6 the Office of Management and Budget shall submit 

7 to the appropriate committees of Congress and the 

8 Comptroller General a financial management status 

9 report.’’; and 

10 (G) by striking paragraph (5); 

11 (2) in subsection (d)(2)— 

12 (A) in subparagraph (A), by striking 

13 ‘‘and’’ at the end; 

14 (B) in subparagraph (B), by striking the 

15 period at the end and inserting ‘‘; and’’; and 

16 (C) by adding at the end the following: 

17 ‘‘(C) a separate report on the results of the as18 sessment and conclusion required under subsection 

19 (e)(2).’’; 

20 (3) by redesignating subsections (e), (f), and 

21 (g) as subsections (f), (g), and (h), respectively; and 

22 (4) by inserting after subsection (d) the fol23 lowing: 

24 ‘‘(e) The head of each executive agency shall— 


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1 ‘‘(1) in establishing the internal accounting and 

2 administrative controls under subsection (c), identify 

3 the key financial management information needed 

4 for effective financial management and decision 

5 making; and 

6 ‘‘(2) annually assess and make a conclusion on 

7 the effectiveness of the internal controls of the exec8 utive agency over financial reporting and key finan9 cial management information identified under para10 graph (1).’’. 

11 (c) AUDITS BY AGENCIES.—Section 3521 of title 31, 

12 United States Code, is amended— 

13 (1) in subsection (e)— 

14 (A) by redesignating paragraphs (1) and 

15 (2) as subparagraphs (A) and (B), respectively, 

16 and adjusting the margins accordingly; 

17 (B) by striking ‘‘(e) Each financial’’ and 

18 inserting ‘‘(e)(1) Each financial’’; 

19 (C) in paragraph (1), as so designated, by 

20 striking ‘‘standards—’’ and inserting ‘‘stand21 ards.’’; and 

22 (D) by inserting after paragraph (1), as so 

23 designated, the following: 

24 ‘‘(2) As part of each audit under this subsection, the 

25 auditor shall— 


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1 ‘‘(A) evaluate the design of the internal control 

2 of the agency over financial reporting and key finan3 cial information, as assessed and reported on by the 

4 head of the agency under section 3512(d)(2)(C) of 

5 this title; 

6 ‘‘(B) determine whether those controls have 

7 been implemented; 

8 ‘‘(C) for controls that are properly designed and 

9 implemented, perform sufficient tests of those con10 trols to conclude whether the controls are operating 

11 effectively, including sufficient tests to support a low 

12 level of assessed control risk; and 

13 ‘‘(D) communicate controls that the auditor 

14 concludes are not suitably designed and implemented 

15 or are not operating effectively, as appropriate under 

16 applicable generally accepted government auditing 

17 standards. 

18 ‘‘(3) Audits under this subsection shall be con19 ducted—’’; and 

20 (2) in subsection (h), by striking ‘‘section 

21 3512(a)(3)(B)(viii)’’ and inserting ‘‘section 

22 3512(a)(2)(B)(viii)’’. 

23 (d) TECHNICAL AND CONFORMING AMENDMENT.— 

24 Section 3348(e) of title 5, United States Code, is amend25 ed— 


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1 (1) in paragraph (3), by adding ‘‘or’’ at the 

2 end; 

3 (2) by striking paragraph (4); and 

4 (3) by redesignating paragraph (5) as para5 graph (4). 

Æ 


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