II 

Calendar No. 708 

118TH CONGRESS 

2D SESSION S. 4700 

[Report No. 118–302] 

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 (for himself and Ms. HASSAN) introduced the following bill; 

which was read twice and referred to the Committee on Homeland Security and Governmental Affairs 

DECEMBER 17 (legislative day, DECEMBER 16), 2024 

Reported by Mr. PETERS, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

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’’. 


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1 SEC. 2. CHIEF FINANCIAL OFFICERS; GOVERNMENTWIDE 

2 FINANCIAL MANAGEMENT PLAN. 

3 (a) CHIEF FINANCIAL OFFICER AND DEPUTY CHIEF

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

5 States Code, is amended— 

6 (1) in section 902(a)— 

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

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

9 duty and responsibility of each agency Chief Fi10 nancial Officer to oversee and provide leader11 ship in the areas of budget formulation and 

12 execution, planning and performance, risk man13 agement, internal controls, financial systems, 

14 accounting, and other areas as the Director of 

15 the Office of Management and Budget may des16 ignate. In carrying out the preceding sentence, 

17 each’’; 

18 (B) in paragraph (3)— 

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

20 ‘‘areas and’’ before ‘‘systems’’; and 

21 (ii) in subparagraph (D)— 

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

23 ‘‘and’’ at the end; 

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

25 ‘‘performance;’’ and inserting ‘‘perVerDate Sep 11 2014 07:17 Dec 18, 2024 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6401 E:\BILLS\S4700.RS S4700

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1 formance and integration of perform2 ance and cost information; and’’; and 

3 (III) by adding at the end the 

4 following: 

5 ‘‘(v) annual agency financial state6 ments prepared in accordance with United 

7 States generally accepted accounting prin8 ciples;’’. 

9 (C) by redesignating paragraph (8) as 

10 paragraph (10); 

11 (D) by redesignating paragraphs (5) 

12 through (7) as paragraphs (6) through (8), re13 spectively; 

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

15 following: 

16 ‘‘(5) prepare, in consultation with financial manage17 ment and other appropriate experts, an agency plan to im18 plement the 4-year financial management plan prepared 

19 by the Director of the Office of Management and Budget 

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

21 sustain effective financial management in the agency, 

22 which shall— 

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

24 issuance of a governmentwide plan under section 

25 3512(a)(2) of this title; 


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

2 Chief Financial Officer; 

3 ‘‘(C) include performance-based financial man4 agement metrics against which the financial man5 agement performance of the agency shall be as6 sessed; and 

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

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

9 of Management and Budget, the Comptroller Gen10 eral, and appropriate committees of Congress, and 

11 be made publicly available;’’; 

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

13 (i) by striking subparagraph (A); 

14 (ii) by redesignating subparagraphs 

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

16 through (D), respectively; and 

17 (iii) in subparagraph (C), as so redes18 ignated, by adding ‘‘and’’ at the end; 

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

20 (i) in the matter preceding subpara21 graph (A), by striking ‘‘and the Director of 

22 the Office of Management and Budget,’’ 

23 and inserting ‘‘, the Director of the Office 

24 of Management and Budget, the Comp25 troller General, and appropriate commitVerDate Sep 11 2014 07:17 Dec 18, 2024 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6401 E:\BILLS\S4700.RS S4700

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1 tees of Congress, which shall be made pub2 licly available and’’; 

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

4 ‘‘agency;’’ and inserting ‘‘agency, includ5 ing— 

6 ‘‘(i) the progress of the agency in imple7 menting the agency plan described in paragraph 

8 (5); 

9 ‘‘(ii) the progress of the agency in imple10 menting the governmentwide 4-year financial 

11 management plan prepared by the Director of 

12 the Office of Management and Budget under 

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

14 ‘‘(iii) the performance of the agency 

15 against financial management metrics estab16 lished by the Director of the Office of Manage17 ment and Budget;’’; and 

18 (iii) in subparagraph (D)— 

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

20 and inserting ‘‘of— 

21 ‘‘(i) the reports’’; 

22 (II) in clause (i), as so des23 ignated, by striking ‘‘the amendments 

24 made by the Federal Managers’ Fi25 nancial Integrity Act of 1987 (Public 


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1 law 97–255); and’’ and inserting ‘‘sec2 tion 3512(d) of this title;’’; and 

3 (III) by adding at the end the 

4 following: 

5 ‘‘(ii) agency spending data published under 

6 the Federal Funding Accountability and Trans7 parency Act of 2006 (31 U.S.C. 6101 note); 

8 and 

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

10 Federal Financial Management Improvement 

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

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

13 (i) by striking ‘‘monitor the’’ and in14 sert ‘‘manage the formulation and’’; and 

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

16 submit to the head of the agency timely 

17 performance reports; and’’ and inserting a 

18 semicolon; 

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

20 redesignated, the following: 

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

22 information, including the preparation and submission to 

23 the head of the agency of timely performance reports that 

24 incorporate cost information;’’; 


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1 (J) in paragraph (10), as so redesig2 nated— 

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

4 ‘‘costs’’; and 

5 (ii) by striking the period at the end 

6 and inserting ‘‘; and’’; and 

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

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

9 including the Chief Data Officer, Chief Information 

10 Officer, Chief Performance Officer, Chief Acquisition 

11 Officer, Chief Risk Officer, and Chief Evaluation Of12 ficer of the agency on— 

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

14 subsection; and 

15 ‘‘(B) the strategic planning, performance 

16 measurement and reporting, and risk manage17 ment functions of the agency.’’; and 

18 (2) in section 903— 

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

20 who shall assist the agency Chief Financial Of21 ficer in the performance of each of the duties 

22 of the agency Chief Financial Officer under this 

23 chapter’’ after ‘‘matters’’; and 

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


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

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

3 Financial Officer of an agency, the Deputy Chief Finan4 cial Officer of the agency shall serve as the acting Chief 

5 Financial Officer.’’. 

6 (b) GOVERNMENTWIDE FINANCIAL MANAGEMENT

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

8 amended— 

9 (1) in subsection (a)— 

10 (A) in paragraph (1), by striking ‘‘a finan11 cial management status report and a govern12 mentwide 5-year financial management plan’’ 

13 and inserting ‘‘a governmentwide 4-year finan14 cial management plan and a financial manage15 ment status report’’; 

16 (B) by striking paragraph (2); 

17 (C) by redesignating paragraph (3) as 

18 paragraph (2); 

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

20 (i) in subparagraph (A)— 

21 (I) by striking ‘‘5-year’’ and in22 serting ‘‘4-year’’; 

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

24 and inserting the following: ‘‘shall— 

25 ‘‘(i) describe’’; 


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1 (III) in clause (i), as so des2 ignated, by striking ‘‘5 fiscal years to 

3 improve the financial management of 

4 the Federal Government.’’ and insert5 ing ‘‘4 fiscal years to improve the fi6 nancial management of the Federal 

7 Government in a manner that is stra8 tegic, comprehensive, and cost-effec9 tive; and’’; and 

10 (IV) by adding at the end the fol11 lowing: 

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

13 Chief Financial Officers Council, the Chief In14 formation Officers Council, the Chief Data Offi15 cer Council, the Chief Acquisition Officers 

16 Council, the Council of the Inspectors General 

17 on Integrity and Efficiency, the Government 

18 Accountability Office, and, as appropriate, other 

19 councils and financial management experts.’’; 

20 and 

21 (ii) in subparagraph (B)— 

22 (I) in the matter preceding clause 

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

24 ‘‘4-year’’; 

25 (II) in clause (iii)— 


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1 (aa) by striking ‘‘for devel2 oping’’ and inserting ‘‘for im3 proving financial management 

4 systems, including— 

5 ‘‘(I) developing’’; and 

6 (bb) by adding at the end 

7 the following: 

8 ‘‘(II) linking performance and cost in9 formation to facilitate effective and effi10 cient decision making; 

11 ‘‘(III) eliminating duplicative and un12 necessary systems and activities; and 

13 ‘‘(IV) identifying opportunities for 

14 agencies to share systems and services and 

15 encouraging agencies to do so where prac16 ticable;’’; 

17 (III) by striking clause (iv); 

18 (IV) by redesignating clause (v) 

19 as clause (iv); 

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

21 as so redesignated, the following: 

22 ‘‘(v) provide a strategy for reporting per23 formance and cost information;’’; 

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

25 ‘‘5-year’’ and inserting ‘‘4-year’’; 


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

2 ‘‘identify’’ and inserting ‘‘provide a 

3 strategy for strengthening the Federal 

4 financial management workforce, in5 cluding identification of’’; 

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

7 ‘‘and’’ at the end; 

8 (IX) by redesignating clause (ix) 

9 as clause (x); 

10 (X) by inserting after clause 

11 (viii) the following: 

12 ‘‘(ix) include comprehensive financial man13 agement performance-based metrics against 

14 which the financial management performance of 

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

16 (XI) in clause (x), as so redesig17 nated, by striking ‘‘5-year’’ and in18 serting ‘‘4-year’’; 

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

20 following: 

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

22 subsection shall include— 

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

24 financial management in the executive branch, in25 cluding the progress made towards implementing the 


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1 governmentwide 4-year financial management plan, 

2 the status of remaining challenges, and, as necessary 

3 based on obligations or expenditures, any updates or 

4 revisions to the cost estimates included in the most 

5 recent governmentwide 4-year financial management 

6 plan; 

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

8 against the metrics developed and identified by the 

9 Director of the Office of Management and Budget in 

10 the governmentwide 4-year financial management 

11 plan; 

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

13 financial statements— 

14 ‘‘(i) of Federal agencies under section 

15 3515 of this title; and 

16 ‘‘(ii) of Government corporations; 

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

18 financial statement audits and reports— 

19 ‘‘(i) of Federal agencies under subsections 

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

21 ‘‘(ii) of Government corporations; 

22 ‘‘(E) a summary of reports on internal account23 ing and administrative control systems submitted to 

24 the President and Congress under subsection (d); 


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1 ‘‘(F) a listing of agencies whose financial man2 agement systems do not comply substantially with 

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

4 Financial Management Improvement Act of 1996 

5 (31 U.S.C. 3512 note), and a summary statement of 

6 the efforts underway to remedy the noncompliance; 

7 and 

8 ‘‘(G) any other information the Director con9 siders appropriate to fully inform Congress regard10 ing the financial management of the Federal Gov11 ernment.’’; 

12 (F) in paragraph (4)— 

13 (i) in subparagraph (A)— 

14 (I) by striking ‘‘15 months after 

15 the date of the enactment of this sub16 section’’ and inserting ‘‘6 months 

17 after the date of enactment of the Im18 proving Federal Financial Manage19 ment Act’’; and 

20 (II) by striking ‘‘5-year’’ and in21 serting ‘‘4-year’’; and 

22 (ii) in subparagraph (B)— 

23 (I) in clause (i)— 

24 (aa) by striking ‘‘Not later 

25 than January 31 of each year 


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1 thereafter’’ and inserting ‘‘At a 

2 minimum, concurrently with the 

3 submission of the budget of the 

4 United States Government under 

5 section 1105(a) of this title made 

6 in the first full fiscal year fol7 lowing any year in which the 

8 term of the President commences 

9 under section 101 of title 3’’; 

10 (bb) by striking ‘‘financial 

11 management status report and a 

12 revised governmentwide 5-year’’ 

13 and inserting ‘‘governmentwide 

14 4-year’’; and 

15 (cc) by striking ‘‘5 fiscal 

16 years’’ and all that follows 

17 through the period at the end 

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

19 and 

20 (II) in clause (ii)— 

21 (aa) by striking ‘‘revised 

22 governmentwide 5-year’’ and in23 serting ‘‘governmentwide 4-year’’; 

24 and 


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1 (bb) by striking ‘‘paragraph 

2 (3)(B)(viii)’’ and inserting ‘‘para3 graph (2)(B)(viii)’’; and 

4 (iii) by adding at the end the fol5 lowing: 

6 ‘‘(C) Each year, concurrently with the submis7 sion of the budget of the United States Government 

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

9 the Office of Management and Budget shall submit 

10 to the appropriate committees of Congress and the 

11 Comptroller General a financial management status 

12 report.’’; and 

13 (G) by striking paragraph (5); 

14 (2) in subsection (d)(2)— 

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

16 ‘‘and’’ at the end; 

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

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

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

20 ‘‘(C) a separate report on the results of the as21 sessment and conclusion required under subsection 

22 (e)(2).’’; 

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

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


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1 (4) by inserting after subsection (d) the fol2 lowing: 

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

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

5 administrative controls under subsection (c), identify 

6 the key financial management information needed 

7 for effective financial management and decision 

8 making; and 

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

10 the effectiveness of the internal controls of the exec11 utive agency over financial reporting and key finan12 cial management information identified under para13 graph (1).’’. 

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

15 United States Code, is amended— 

16 (1) in subsection (e)— 

17 (A) by redesignating paragraphs (1) and 

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

19 and adjusting the margins accordingly; 

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

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

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

23 striking ‘‘standards—’’ and inserting ‘‘stand24 ards.’’; and 


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

2 designated, the following: 

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

4 auditor shall— 

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

6 of the agency over financial reporting and key finan7 cial information, as assessed and reported on by the 

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

9 this title; 

10 ‘‘(B) determine whether those controls have 

11 been implemented; 

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

13 implemented, perform sufficient tests of those con14 trols to conclude whether the controls are operating 

15 effectively, including sufficient tests to support a low 

16 level of assessed control risk; and 

17 ‘‘(D) communicate controls that the auditor 

18 concludes are not suitably designed and implemented 

19 or are not operating effectively, as appropriate under 

20 applicable generally accepted government auditing 

21 standards. 

22 ‘‘(3) Audits under this subsection shall be con23 ducted—’’; and 


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

2 3512(a)(3)(B)(viii)’’ and inserting ‘‘section 

3 3512(a)(2)(B)(viii)’’. 

4 (d) TECHNICAL AND CONFORMING AMENDMENT.— 

5 Section 3348(e) of title 5, United States Code, is amend6 ed— 

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

8 end; 

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

10 (3) by redesignating paragraph (5) as para11 graph (4). 

12 SECTION 1. SHORT TITLE. 

13 This Act may be cited as the ‘‘Improving Federal Fi14 nancial Management Act’’. 

15 SEC. 2. CHIEF FINANCIAL OFFICERS; GOVERNMENTWIDE FI16 NANCIAL MANAGEMENT PLAN. 

17 (a) CHIEF FINANCIAL OFFICER AND DEPUTY CHIEF

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

19 Code, is amended— 

20 (1) in section 902(a)— 

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

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

23 duty and responsibility of each agency Chief Fi24 nancial Officer to oversee and provide leadership 

25 in the areas of budget formulation and execution, 


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1 planning and performance, risk management, 

2 internal controls, financial systems, accounting, 

3 and other areas as the Director of the Office of 

4 Management and Budget may designate. In car5 rying out the preceding sentence, each’’; 

6 (B) in paragraph (3)— 

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

8 ‘‘areas and’’ before ‘‘systems’’; and 

9 (ii) in subparagraph (D)— 

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

11 ‘‘and’’ at the end; 

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

13 ‘‘performance;’’ and inserting ‘‘per14 formance and integration of perform15 ance and cost information; and’’; and 

16 (III) by adding at the end the fol17 lowing: 

18 ‘‘(v) annual agency financial state19 ments prepared in accordance with United 

20 States generally accepted accounting prin21 ciples;’’; 

22 (C) by redesignating paragraph (8) as 

23 paragraph (10); 


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1 (D) by redesignating paragraphs (5) 

2 through (7) as paragraphs (6) through (8), re3 spectively; 

4 (E) by inserting after paragraph (4) the fol5 lowing: 

6 ‘‘(5) prepare, in consultation with financial manage7 ment and other appropriate experts, an agency plan to im8 plement the 4-year financial management plan prepared by 

9 the Director of the Office of Management and Budget under 

10 section 3512(a)(2) of this title and to achieve and sustain 

11 effective financial management in the agency, which shall— 

12 ‘‘(A) be completed within 90 days of the issuance 

13 of a governmentwide plan under section 3512(a)(2) of 

14 this title; 

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

16 Chief Financial Officer; 

17 ‘‘(C) include performance-based financial man18 agement metrics against which the financial manage19 ment performance of the agency shall be assessed; and 

20 ‘‘(D) be submitted upon completion or revision to 

21 the head of the agency, the Director of the Office of 

22 Management and Budget, the Comptroller General, 

23 and appropriate committees of Congress, and be made 

24 publicly available;’’; 

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


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1 (i) by striking subparagraph (A); 

2 (ii) by redesignating subparagraphs 

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

4 through (D), respectively; and 

5 (iii) in subparagraph (C), as so redes6 ignated, by adding ‘‘and’’ at the end; 

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

8 (i) in the matter preceding subpara9 graph (A), by striking ‘‘and the Director of 

10 the Office of Management and Budget,’’ and 

11 inserting ‘‘, the Director of the Office of 

12 Management and Budget, the Comptroller 

13 General, and appropriate committees of 

14 Congress, which shall be made publicly 

15 available and’’; 

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

17 ‘‘agency;’’ and inserting ‘‘agency, includ18 ing— 

19 ‘‘(i) the progress of the agency in imple20 menting the agency plan described in paragraph 

21 (5); 

22 ‘‘(ii) the progress of the agency in imple23 menting the governmentwide 4-year financial 

24 management plan prepared by the Director of 


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1 the Office of Management and Budget under sec2 tion 3512(a)(2) of this title; and 

3 ‘‘(iii) the performance of the agency against 

4 financial management metrics established by the 

5 Director of the Office of Management and Budg6 et;’’; and 

7 (iii) in subparagraph (D)— 

8 (I) by striking ‘‘of the reports’’ 

9 and inserting ‘‘of— 

10 ‘‘(i) the reports’’; 

11 (II) in clause (i), as so des12 ignated, by striking ‘‘the amendments 

13 made by the Federal Managers’ Finan14 cial Integrity Act of 1982 (Public law 

15 97–255); and’’ and inserting ‘‘section 

16 3512(d) of this title;’’; and 

17 (III) by adding at the end the fol18 lowing: 

19 ‘‘(ii) agency spending data published under 

20 the Federal Funding Accountability and Trans21 parency Act of 2006 (31 U.S.C. 6101 note); and 

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

23 Federal Financial Management Improvement 

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

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


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1 (i) by striking ‘‘monitor the’’ and in2 sert ‘‘manage the formulation and’’; and 

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

4 submit to the head of the agency timely per5 formance reports; and’’ and inserting a 

6 semicolon; 

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

8 redesignated, the following: 

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

10 information, including the preparation and submission to 

11 the head of the agency of timely performance reports that 

12 incorporate cost information;’’; 

13 (J) in paragraph (10), as so redesignated— 

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

15 ‘‘costs’’; and 

16 (ii) by striking the period at the end 

17 and inserting ‘‘; and’’; and 

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

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

20 including the Chief Data Officer, Chief Information 

21 Officer, Chief Performance Officer, Chief Acquisition 

22 Officer, Chief Risk Officer, and Chief Evaluation Offi23 cer of the agency on— 

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

25 subsection; and 


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1 ‘‘(B) the strategic planning, performance 

2 measurement and reporting, and risk manage3 ment functions of the agency.’’; and 

4 (2) in section 903— 

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

6 who shall assist the agency Chief Financial Offi7 cer in the performance of each of the duties of the 

8 agency Chief Financial Officer under this chap9 ter’’ after ‘‘matters’’; and 

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

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

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

13 Financial Officer of an agency, the Deputy Chief Financial 

14 Officer of the agency shall serve as the acting Chief Finan15 cial Officer.’’. 

16 (b) GOVERNMENTWIDE FINANCIAL MANAGEMENT

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

18 amended— 

19 (1) in subsection (a)— 

20 (A) in paragraph (1), by striking ‘‘a finan21 cial management status report and a govern22 mentwide 5-year financial management plan’’ 

23 and inserting ‘‘a governmentwide 4-year finan24 cial management plan and a financial manage25 ment status report’’; 


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1 (B) by striking paragraph (2); 

2 (C) by redesignating paragraph (3) as 

3 paragraph (2); 

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

5 (i) in subparagraph (A)— 

6 (I) by striking ‘‘5-year’’ and in7 serting ‘‘4-year’’; 

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

9 and inserting the following: ‘‘shall— 

10 ‘‘(i) describe’’; 

11 (III) in clause (i), as so des12 ignated, by striking ‘‘5 fiscal years to 

13 improve the financial management of 

14 the Federal Government.’’ and insert15 ing ‘‘4 fiscal years to improve the fi16 nancial management of the Federal 

17 Government in a manner that is stra18 tegic, comprehensive, and cost-effective; 

19 and’’; and 

20 (IV) by adding at the end the fol21 lowing: 

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

23 Chief Financial Officers Council, the Chief Infor24 mation Officers Council, the Chief Data Officer 

25 Council, the Chief Acquisition Officers Council, 


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1 the Council of the Inspectors General on Integ2 rity and Efficiency, the Government Account3 ability Office, and, as appropriate, other coun4 cils and financial management experts.’’; and 

5 (ii) in subparagraph (B)— 

6 (I) in the matter preceding clause 

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

8 ‘‘4-year’’; 

9 (II) in clause (iii)— 

10 (aa) by striking ‘‘for devel11 oping’’ and inserting ‘‘for improv12 ing financial management sys13 tems, including— 

14 ‘‘(I) developing’’; and 

15 (bb) by adding at the end the 

16 following: 

17 ‘‘(II) linking performance and cost in18 formation to facilitate effective and efficient 

19 decision making; 

20 ‘‘(III) eliminating duplicative and un21 necessary systems and activities; and 

22 ‘‘(IV) identifying opportunities for 

23 agencies to share systems and services and 

24 encouraging agencies to do so where prac25 ticable;’’; 


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1 (III) by striking clause (iv); 

2 (IV) by redesignating clause (v) 

3 as clause (iv); 

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

5 as so redesignated, the following: 

6 ‘‘(v) provide a strategy for reporting per7 formance and cost information;’’; 

8 (VI) in clause (vi), by striking ‘‘5- 

9 year’’ and inserting ‘‘4-year’’; 

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

11 ‘‘identify’’ and inserting ‘‘provide a 

12 strategy for strengthening the Federal 

13 financial management workforce, in14 cluding identification of’’; 

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

16 ‘‘and’’ at the end; 

17 (IX) by redesignating clause (ix) 

18 as clause (x); 

19 (X) by inserting after clause (viii) 

20 the following: 

21 ‘‘(ix) include comprehensive financial man22 agement performance-based metrics against 

23 which the financial management performance of 

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


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1 (XI) in clause (x), as so redesig2 nated, by striking ‘‘5-year’’ and insert3 ing ‘‘4-year’’; 

4 (E) by inserting after paragraph (2) the fol5 lowing: 

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

7 subsection shall include— 

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

9 financial management in the executive branch, in10 cluding the progress made towards implementing the 

11 governmentwide 4-year financial management plan, 

12 the status of remaining challenges, and, as necessary 

13 based on obligations or expenditures, any updates or 

14 revisions to the cost estimates included in the most re15 cent governmentwide 4-year financial management 

16 plan; 

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

18 against the metrics developed and identified by the 

19 Director of the Office of Management and Budget in 

20 the governmentwide 4-year financial management 

21 plan; 

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

23 financial statements— 

24 ‘‘(i) of Federal agencies under section 3515 

25 of this title; and 


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1 ‘‘(ii) of Government corporations; 

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

3 financial statement audits and reports— 

4 ‘‘(i) of Federal agencies under subsections 

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

6 ‘‘(ii) of Government corporations; 

7 ‘‘(E) a summary of reports on internal account8 ing and administrative control systems submitted to 

9 the President and Congress under subsection (d); 

10 ‘‘(F) a listing of agencies whose financial man11 agement systems do not comply substantially with the 

12 requirements of section 803(a) of the Federal Finan13 cial Management Improvement Act of 1996 (31 

14 U.S.C. 3512 note), and a summary statement of the 

15 efforts underway to remedy the noncompliance; and 

16 ‘‘(G) any other information the Director con17 siders appropriate to fully inform Congress regarding 

18 the financial management of the Federal Govern19 ment.’’; 

20 (F) in paragraph (4)— 

21 (i) in subparagraph (A)— 

22 (I) by striking ‘‘15 months after 

23 the date of the enactment of this sub24 section’’ and inserting ‘‘6 months after 

25 the date of enactment of the Improving 


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1 Federal Financial Management Act’’; 

2 and 

3 (II) by striking ‘‘5-year’’ and in4 serting ‘‘4-year’’; and 

5 (ii) in subparagraph (B)— 

6 (I) in clause (i)— 

7 (aa) by striking ‘‘Not later 

8 than January 31 of each year 

9 thereafter’’ and inserting ‘‘At a 

10 minimum, concurrently with the 

11 submission of the budget of the 

12 United States Government under 

13 section 1105(a) of this title made 

14 in the first full fiscal year fol15 lowing any year in which the 

16 term of the President commences 

17 under section 101 of title 3’’; 

18 (bb) by striking ‘‘financial 

19 management status report and a 

20 revised governmentwide 5-year’’ 

21 and inserting ‘‘governmentwide 4- 

22 year’’; and 

23 (cc) by striking ‘‘5 fiscal 

24 years’’ and all that follows 


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1 through the period at the end and 

2 inserting ‘‘4 fiscal years.’’; and 

3 (II) in clause (ii)— 

4 (aa) by striking ‘‘revised gov5 ernmentwide 5-year’’ and insert6 ing ‘‘governmentwide 4-year’’; 

7 and 

8 (bb) by striking ‘‘paragraph 

9 (3)(B)(viii)’’ and inserting ‘‘para10 graph (2)(B)(viii)’’; and 

11 (iii) by adding at the end the fol12 lowing: 

13 ‘‘(C) Each year, concurrently with the submis14 sion of the budget of the United States Government 

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

16 Office of Management and Budget shall submit to the 

17 appropriate committees of Congress and the Comp18 troller General a financial management status re19 port.’’; and 

20 (G) by striking paragraph (5); 

21 (2) in subsection (d)(2)— 

22 (A) in subparagraph (A), by striking ‘‘and’’ 

23 at the end; 

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

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


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

2 ‘‘(C) a separate report on the results of the as3 sessment and conclusion required under subsection 

4 (e)(2).’’; 

5 (3) by redesignating subsections (e), (f), and (g) 

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

7 (4) by inserting after subsection (d) the fol8 lowing: 

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

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

11 administrative controls under subsection (c), identify 

12 the key financial management information needed for 

13 effective financial management and decision making; 

14 and 

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

16 the effectiveness of the internal controls of the execu17 tive agency over financial reporting and key financial 

18 management information identified under paragraph 

19 (1).’’. 

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

21 United States Code, is amended— 

22 (1) in subsection (e)— 

23 (A) by redesignating paragraphs (1) and 

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

25 and adjusting the margins accordingly; 


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

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

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

4 striking ‘‘standards—’’ and inserting ‘‘stand5 ards.’’; and 

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

7 designated, the following: 

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

9 auditor shall— 

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

11 of the agency over financial reporting and key finan12 cial information, as assessed and reported on by the 

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

14 title; 

15 ‘‘(B) determine whether those controls have been 

16 implemented; 

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

18 implemented, perform sufficient tests of those controls 

19 to conclude whether the controls are operating effec20 tively, including sufficient tests to support a low level 

21 of assessed control risk; and 

22 ‘‘(D) communicate controls that the auditor con23 cludes are not suitably designed and implemented or 

24 are not operating effectively, as appropriate under 


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1 applicable generally accepted government auditing 

2 standards. 

3 ‘‘(3) Audits under this subsection shall be conducted— 

4 ’’; and 

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

6 3512(a)(3)(B)(viii)’’ and inserting ‘‘section 

7 3512(a)(2)(B)(viii)’’. 

8 (d) TECHNICAL AND CONFORMING AMENDMENT.—Sec9 tion 3348(e) of title 5, United States Code, is amended— 

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

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

12 (3) by redesignating paragraph (5) as para13 graph (4). 


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Calendar No. 708 

118TH CONGRESS 

2D SESSION S. 4700 

[Report No. 118–302] 

A BILL 

To modify the governmentwide financial 

management plan, and for other purposes. 

DECEMBER 17 (legislative day, DECEMBER 16), 2024 

Reported with an amendment 


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