II 

Calendar No. 535 

112TH CONGRESS 

2D SESSION S. 1998 

[Report No. 112–230] 

To obtain an unqualified audit opinion, and improve financial accountability 

and management at the Department of Homeland Security. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 15, 2012 

Mr. BROWN of Massachusetts (for himself, Mr. CARPER, and Mr. JOHNSON

of Wisconsin) introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs 

NOVEMBER 2, 2012 

Reported under authority of the order of the Senate of September 22 (legislative day, September 21), 2012, by Mr. LIEBERMAN, with an amendment 

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

A BILL 

To obtain an unqualified audit opinion, and improve financial 

accountability and management at the Department of 

Homeland Security. 

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


tkelley on DSK3SPTVN1PROD with BILLS
2 

•S 1998 RS

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Department of Home3 land Security Improved Financial Accountability Act of 

4 2011’’. 

5 SEC. 2. IMPROVING FINANCIAL ACCOUNTABILITY AND 

6 MANAGEMENT. 

7 (a) DEFINITIONS.—In this section— 

8 (1) the term ‘‘Department’’ means the Depart9 ment of Homeland Security; 

10 (2) the terms ‘‘qualified opinion’’ and ‘‘unquali11 fied opinion’’ mean a qualified opinion and an un12 qualified opinion, respectively, within the meanings 

13 given those terms under generally accepted govern14 ment auditing standards; and 

15 (3) the term ‘‘Secretary’’ means the Secretary 

16 of Homeland Security. 

17 (b) REACHING AN UNQUALIFIED AUDIT OPINION.— 

18 In order to ensure compliance with the Department of 

19 Homeland Security Financial Accountability Act (Public 

20 Law 108–330; 118 Stat. 1275) and the amendments made 

21 by that Act, the Secretary shall— 

22 (1) take the necessary steps to ensure that the 

23 balance sheet of the Department and associated 

24 statement of custodial activity for the fiscal years 

25 ending September 30, 2012 and September 30, 2013 

26 are ready in a timely manner and in preparation for 


tkelley on DSK3SPTVN1PROD with BILLS
3 

•S 1998 RS

1 an audit as part of preparing the performance and 

2 accountability reports required under section 3516(f) 

3 of title 31, United States Code, including submitting 

4 the reports not later than November 15, 2012 and 

5 November 15, 2013, respectively, in order to obtain 

6 a qualified or unqualified opinion; 

7 (2) take the necessary steps to ensure that the 

8 full set of consolidated financial statements of the 

9 Department for the fiscal years ending September 

10 30, 2014 and September 30, 2015 are ready in a 

11 timely manner and in preparation for an audit as 

12 part of preparing the performance and account13 ability reports required under section 3516(f) of title 

14 31, United States Code, including submitting the re15 ports not later than November 15, 2014 and Novem16 ber 15, 2015, respectively, in order to obtain a quali17 fied or unqualified opinion; and 

18 (3) take the necessary steps to ensure that the 

19 full set of consolidated financial statements of the 

20 Department for the fiscal year ending September 30, 

21 2016, and each fiscal year thereafter, are ready in 

22 a timely manner and in preparation for an audit as 

23 part of preparing the performance and account24 ability reports required under section 3516(f) of title 

25 31, United States Code, including submitting the reVerDate Mar 15 2010 20:57 Nov 02, 2012 Jkt 029200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6401 E:\BILLS\S1998.RS S1998

tkelley on DSK3SPTVN1PROD with BILLS
4 

•S 1998 RS

1 ports not later than November 15, 2016, and each 

2 year thereafter, in order to obtain an unqualified 

3 opinion. 

4 (c) REPORT TO CONGRESS ON PROGRESS OF MEET5 ING AUDIT REQUIREMENTS.—Not later than 270 days 

6 after the date of enactment of this Act, and annually 

7 thereafter until an unqualified opinion is submitted under 

8 paragraph (2) or (3) of subsection (b), and in order to 

9 ensure progress in implementing the Department of 

10 Homeland Security Financial Accountability Act (Public 

11 Law 108–330; 118 Stat. 1275) and the amendments made 

12 by that Act, the Chief Financial Officer of the Department 

13 shall submit to Congress a report on the plans to obtain 

14 an unqualified opinion, which shall discuss plans and re15 sources needed to meet the deadlines under subsection (b). 

16 (d) REPORT TO CONGRESS ON PLANS TO MOD17 ERNIZE FINANCIAL SYSTEMS.— 

18 (1) IN GENERAL.—Not later than 270 days 

19 after the date of enactment of this Act, and in order 

20 to improve financial management at the Depart21 ment, the Chief Financial Officer of the Department 

22 shall submit to Congress and the Comptroller Gen23 eral of the United States a report on the plans of 

24 the Department and resources needed to modernize 

25 the financial systems of the Department. 


tkelley on DSK3SPTVN1PROD with BILLS
5 

•S 1998 RS

1 (2) CONTENTS.—The report submitted under 

2 paragraph (1) shall discuss— 

3 (A) the challenges of and opportunities for 

4 using existing financial systems of the Depart5 ment, including an assessment of the feasibility 

6 and cost of using an existing financial system; 

7 (B) the challenges and opportunities of im8 plementing a new financial system and associ9 ated financial controls; and 

10 (C) the lessons learned from the prior at11 tempts of the Department to develop a financial 

12 system that will be considered in implementing 

13 a new financial system. 

14 (3) REVIEW.—Not later than 180 days after 

15 the date on which the Chief Financial Officer of the 

16 Department submits the report under paragraph 

17 (1), the Comptroller General of the United States 

18 shall review the report and submit to Congress a re19 port that provides— 

20 (A) an assessment of the status of the fi21 nancial system modernization by the Depart22 ment; 

23 (B) an evaluation of the report; 

24 (C) an assessment of the plans to mod25 ernize, and developments at the Department reVerDate Mar 15 2010 20:57 Nov 02, 2012 Jkt 029200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6401 E:\BILLS\S1998.RS S1998

tkelley on DSK3SPTVN1PROD with BILLS
6 

•S 1998 RS

1 lating to, the financial system of the Depart2 ment; and 

3 (D) any recommendations for improving 

4 the plans for a new financial system at the De5 partment. 

6 SECTION 1. SHORT TITLE. 

7 This Act may be cited as the ‘‘DHS Audit Require8 ment Target Act of 2012’’ or the ‘‘DART Act’’. 

9 SEC. 2. IMPROVING FINANCIAL ACCOUNTABILITY AND MAN10 AGEMENT. 

11 (a) DEFINITIONS.—In this section— 

12 (1) the term ‘‘Department’’ means the Depart13 ment of Homeland Security; 

14 (2) the term ‘‘financial management systems’’ 

15 has the meaning given that term under section 806 of 

16 the Federal Financial Management Improvement Act 

17 of 1996 (31 U.S.C. 3512 note); 

18 (3) the term ‘‘Secretary’’ means the Secretary of 

19 Homeland Security; and 

20 (4) the term ‘‘unqualified opinion’’ mean an un21 qualified opinion within the meaning given that term 

22 under generally accepted auditing standards. 

23 (b) REACHING AN UNQUALIFIED AUDIT OPINION.—In 

24 order to ensure compliance with the Department of Home25 land Security Financial Accountability Act (Public Law 


tkelley on DSK3SPTVN1PROD with BILLS
7 

•S 1998 RS

1 108–330; 118 Stat. 1275) and the amendments made by 

2 that Act, the Secretary shall take the necessary steps to en3 sure that the full set of consolidated financial statements 

4 of the Department for the fiscal year ending September 30, 

5 2013, and each fiscal year thereafter, are ready in a timely 

6 manner and in preparation for an audit as part of pre7 paring the performance and accountability reports required 

8 under section 3516(f) of title 31, United States Code, (in9 cluding submitting the reports not later than November 15, 

10 2013, and each year thereafter) in order to obtain an un11 qualified opinion on the full set of financial statements for 

12 the fiscal year. 

13 (c) REPORT TO CONGRESS ON PROGRESS OF MEETING

14 AUDIT REQUIREMENTS.—In order to ensure progress in im15 plementing the Department of Homeland Security Finan16 cial Accountability Act (Public Law 108–330; 118 Stat. 

17 1275), and the amendments made by that Act, during the 

18 period beginning on the date of enactment of this Act and 

19 ending on the date on which an unqualified opinion de20 scribed in subsection (b) is submitted, each report submitted 

21 by the Chief Financial Officer of the Department under sec22 tion 902(a)(6) of title 31, United States Code, shall include 

23 a plan— 

24 (1) to obtain an unqualified opinion on the full 

25 set of financial statements, which shall discuss plans 


tkelley on DSK3SPTVN1PROD with BILLS
8 

•S 1998 RS

1 and resources needed to meet the deadlines under sub2 section (b); 

3 (2) that addresses how the Department will 

4 eliminate material weaknesses and significant defi5 ciencies in internal controls over financial reporting 

6 and provides deadlines for the elimination of such 

7 weaknesses and deficiencies; and 

8 (3) to modernize the financial management sys9 tems of the Department, including timelines, goals, 

10 alternatives, and costs of the plan, which shall include 

11 consideration of alternative approaches, including 

12 modernizing the existing financial management sys13 tems and associated financial controls of the Depart14 ment and establishing new financial management 

15 systems and associated financial controls. 


tkelley on DSK3SPTVN1PROD with BILLS

tkelley on DSK3SPTVN1PROD with BILLS
Calendar No. 535 

112TH CONGRESS 

2D SESSION S. 1998 

[Report No. 112–230] 

A BILL 

To obtain an unqualified audit opinion, and imat the Department of Homeland Security. prove financial accountability and management 

NOVEMBER 2, 2012 

Reported under authority of the order of the Senate of 

by Mr. Lieberman, with an amendment September 22 (legislative day, September 21), 2012, 


tkelley on DSK3SPTVN1PROD with BILLS