I 

115TH CONGRESS 

1ST SESSION H. R. 2040 

To impose consequences on the Department of Defense for any failure to 

meet statutory deadlines for validation of financial statements of the 

Department of Defense as ready for audit and for completion of a 

full audit on financial statements of the Department of Defense for 

fiscal year 2018. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 6, 2017 

Mr. LEWIS of Minnesota introduced the following bill; which was referred to 

the Committee on Armed Services 

A BILL 

To impose consequences on the Department of Defense for 

any failure to meet statutory deadlines for validation 

of financial statements of the Department of Defense 

as ready for audit and for completion of a full audit 

on financial statements of the Department of Defense 

for fiscal year 2018. 

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 ‘‘Defense Spending Ac5 countability Act’’. 


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1 SEC. 2. EFFECT OF FAILURE TO MEET DEADLINES FOR 

2 VALIDATION OF FINANCIAL STATEMENTS OF 

3 THE DEPARTMENT OF DEFENSE AS READY 

4 FOR AUDIT AND FOR SUBMISSION OF FULL 

5 AUDIT ON FINANCIAL STATEMENTS OF THE 

6 DEPARTMENT OF DEFENSE FOR FISCAL YEAR 

7 2018. 

8 (a) PAY REDUCTION FOR FAILURE TO MEET DEAD9 LINES.—Subject to subsection (b), but notwithstanding 

10 any other provision of law, the annual rate of pay for each 

11 Department of Defense position listed in subsection (c)— 

12 (1) beginning with the first pay period com13 mencing on or after the deadline specified in section 

14 1003(a)(2)(A)(ii) of the National Defense Authoriza15 tion Act for Fiscal Year 2010 (Public Law 111–84; 

16 10 U.S.C. 2222 note), and for each pay period 

17 thereafter, shall be reduced by 5 percent if the fi18 nancial statements of the Department of Defense 

19 are not validated as ready for audit by that deadline; 

20 and 

21 (2) beginning with the first pay period com22 mencing on or after the deadline specified in section 

23 1003(a)(2)(A)(iii) of the National Defense Author24 ization Act for Fiscal Year 2010 (Public Law 111– 

25 84; 10 U.S.C. 2222 note), as added by section 

26 1003(b) of the National Defense Authorization Act 


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1 for Fiscal Year 2014 (Public Law 113–66; 127 Stat. 

2 842), and for each pay period thereafter, shall be re3 duced by 10 percent if a full audit of the financial 

4 statements of the Department of Defense for fiscal 

5 year 2018 is not completed by that deadline. 

6 (b) DUE PROCESS PROTECTIONS.— 

7 (1) NOTICE AND OPPORTUNITY TO RESPOND.— 

8 At least 30 days before a reduction in pay takes ef9 fect under paragraph (1) or (2) of subsection (a) for 

10 a Department of Defense position listed in sub11 section (c), the Secretary of Defense shall— 

12 (A) notify the individual occupying the po13 sition of the imminent pay reduction; and 

14 (B) afford the individual an opportunity to 

15 prove that the requirement referred to in such 

16 paragraph has been satisfied. 

17 (2) APPEAL RIGHTS.—The Secretary of De18 fense also shall afford an individual occupying a po19 sition listed in subsection (c) an opportunity to ap20 peal an adverse decision under paragraph (1)(B) 

21 against the individual to another department or 

22 agency of the Federal Government. If a final deci23 sion on the appeal is not made by the applicable de24 partment or agency of the Federal Government with25 in 30 days after receiving the appeal, the order of 


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1 the Secretary imposing the pay reduction shall be 

2 final and not subject to further appeal. 

3 (c) COVERED DEPARTMENT OF DEFENSE POSI4 TIONS.—The Department of Defense positions subject to 

5 this section are the following: 

6 (1) The position of Deputy Secretary of De7 fense, who serves as the Chief Management Officer 

8 of the Department of Defense. 

9 (2) The position of Under Secretary of Defense 

10 (Comptroller). 

11 (3) The position of Chief Management Officer 

12 of each of the military departments. 

13 (d) LIFTING OF PAY REDUCTIONS.—A reduction in 

14 pay imposed under paragraph (1) or (2) of subsection (a) 

15 shall have no force or effect after the date on which the 

16 requirement referred to in such paragraph is satisfied. 

Æ 


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