S. 2170

One Hundred Third Congress

of the

United States of America

AT THE SECOND SESSION

Begun and held at the City of Washington on Tuesday,

the twenty-fifth day of January, one thousand nine hundred and ninety-four

An Act

To provide a more effective, efficient, and responsive Government.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Government

Management Reform Act of 1994’’.

(b) TABLE OF CONTENTS.—The table of contents for this Act

is as follows:

Sec. 1. Short title and table of contents.

TITLE I—LIMITATION ON PAY

Sec. 101. Limitation on certain annual pay adjustments.

TITLE II—HUMAN RESOURCE MANAGEMENT

Sec. 201. SES annual leave accumulation.

TITLE III—STREAMLINING MANAGEMENT CONTROL

Sec. 301. Authority to increase efficiency in reporting to Congress.

TITLE IV—FINANCIAL MANAGEMENT

Sec. 401. Short title.

Sec. 402. Electronic payments.

Sec. 403. Franchise fund pilot programs.

Sec. 404. Simplification of management reporting process.

Sec. 405. Annual financial reports.

TITLE I—LIMITATION ON PAY

SEC. 101. LIMITATION ON CERTAIN ANNUAL PAY ADJUSTMENTS.

Effective as of December 31, 1994—

(1) section 601(a)(2) of the Legislative Reorganization Act

of 1946 (2 U.S.C. 31(2)) is amended—

(A) by striking out ‘‘(2) Effective’’ and inserting in

lieu thereof ‘‘(2)(A) Subject to subparagraph (B), effective’’;

and

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

‘‘(B) In no event shall the percentage adjustment taking effect

under subparagraph (A) in any calendar year (before rounding),

in any rate of pay, exceed the percentage adjustment taking effect

in such calendar year under section 5303 of title 5, United States

Code, in the rates of pay under the General Schedule.’’;

(2) section 104 of title 3, United States Code, is amended—

(A) in the first sentence by inserting ‘‘(a)’’ before ‘‘The’’;
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(B) in the second sentence by striking out ‘‘Effective’’ and inserting in lieu thereof ‘‘Subject to subsection (b),

effective’’; and

(C) by adding at the end thereof the following: ‘‘(b) In no event shall the percentage adjustment taking effect under the second and third sentences of subsection (a) in any

calendar year (before rounding) exceed the percentage adjustment

taking effect in such calendar year under section 5303 of title

5 in the rates of pay under the General Schedule.’’; (3) section 5318 of title 5, United States Code, is amended—

(A) in the first sentence by striking out ‘‘Effective’’ and inserting in lieu thereof ‘‘(a) Subject to subsection

(b), effective’’; and

(B) by adding at the end thereof the following: ‘‘(b) In no event shall the percentage adjustment taking effect under subsection (a) in any calendar year (before rounding), in

any rate of pay, exceed the percentage adjustment taking effect

in such calendar year under section 5303 in the rates of pay

under the General Schedule.’’; and

(4) section 461(a) of title 28, United States Code, is amended—

(A) by striking out ‘‘(a) Effective’’ and inserting in lieu thereof ‘‘(a)(1) Subject to paragraph (2), effective’’; and (B) by adding at the end thereof the following: ‘‘(2) In no event shall the percentage adjustment taking effect under paragraph (1) in any calendar year (before rounding), in

any salary rate, exceed the percentage adjustment taking effect

in such calendar year under section 5303 of title 5 in the rates

of pay under the General Schedule.’’.

TITLE II—HUMAN RESOURCE

MANAGEMENT

SEC. 201. SES ANNUAL LEAVE ACCUMULATION.

(a) IN GENERAL.—Effective on the first day of the first applicable pay period beginning after the date of the enactment

of this Act, subsection (f) of section 6304 of title 5, United States

Code, is amended to read as follows:

‘‘(f)(1) This subsection applies with respect to annual leave

accrued by an individual while serving in a position in— ‘‘(A) the Senior Executive Service;

‘‘(B) the Senior Foreign Service;

‘‘(C) the Defense Intelligence Senior Executive Service;

‘‘(D) the Senior Cryptologic Executive Service; or

‘‘(E) the Federal Bureau of Investigation and Drug Enforce- ment Administration Senior Executive Service.

‘‘(2) For purposes of applying any limitation on accumulation under this section with respect to any annual leave described in

paragraph (1)— ‘‘(A) ‘30 days’ in subsection (a) shall be deemed to read

‘90 days’; and ‘‘(B) ‘45 days’ in subsection (b) shall be deemed to read

‘90 days’.’’.

(b) USE OF EXCESS LEAVE.—Notwithstanding the amendment

made by subsection (a), in the case of an employee who, on the

effective date of subsection (a), is subject to subsection (f) of section
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6304 of title 5, United States Code, and who has to such employee’s

credit annual leave in excess of the maximum accumulation otherwise permitted by subsection (a) or (b) of section 6304 (determined

applying the amendment made by subsection (a)), such excess

annual leave shall remain to the credit of the employee and be

subject to reduction, in the same manner as provided in subsection

(c) of section 6304.

TITLE III—STREAMLINING

MANAGEMENT CONTROL

SEC. 301. AUTHORITY TO INCREASE EFFICIENCY IN REPORTING TO

CONGRESS.

(a) PURPOSE.—The purpose of this title is to improve the efficiency of executive branch performance in implementing statutory

requirements for reports to Congress and committees of Congress

such as the elimination or consolidation of duplicative or obsolete

reporting requirements and adjustments to deadlines that shall

provide for more efficient workload distribution or improve the

quality of reports.

(b) AUTHORITY OF THE DIRECTOR.—The Director of the Office

of Management and Budget may publish annually in the budget

submitted by the President to the Congress, recommendations for

consolidation, elimination, or adjustments in frequency and due

dates of statutorily required periodic reports to the Congress or

committees of Congress. For each recommendation, the Director

shall provide an individualized statement of the reasons that support the recommendation. In addition, for each report for which

a recommendation is made, the Director shall state with specificity

the exact consolidation, elimination, or adjustment in frequency

or due date that is recommended.

(c) RECOMMENDATIONS.—The Director’s recommendations shall

be consistent with the purpose stated in subsection (a).

(d) CONSULTATION.—Before the publication of the recommendations under subsection (b), the Director or his designee shall consult

with the appropriate congressional committees concerning the recommendations.

TITLE IV—FINANCIAL MANAGEMENT

SEC. 401. SHORT TITLE.

This title may be cited as the ‘‘Federal Financial Management

Act of 1994’’.

SEC. 402. ELECTRONIC PAYMENTS.

(a) IN GENERAL.—Section 3332 of title 31, United States Code,

is amended to read as follows:

‘‘§ 3332. Required direct deposit

‘‘(a)(1) Notwithstanding any other provision of law, all Federal

wage, salary, and retirement payments shall be paid to recipients

of such payments by electronic funds transfer, unless another

method has been determined by the Secretary of the Treasury

to be appropriate.
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‘‘(2) Each recipient of Federal wage, salary, or retirement payments shall designate one or more financial institutions or other

authorized payment agents and provide the payment certifying

or authorizing agency information necessary for the recipient to

receive electronic funds transfer payments through each institution

so designated.

‘‘(b)(1) The head of each agency shall waive the requirements

of subsection (a) of this section for a recipient of Federal wage,

salary, or retirement payments authorized or certified by the agency

upon written request by such recipient.

‘‘(2) Federal wage, salary, or retirement payments shall be

paid to any recipient granted a waiver under paragraph (1) of

this subsection by any method determined appropriate by the Secretary of the Treasury.

‘‘(c)(1) The Secretary of the Treasury may waive the requirements of subsection (a) of this section for any group of recipients

upon request by the head of an agency under standards prescribed

by the Secretary of the Treasury.

‘‘(2) Federal wage, salary, or retirement payments shall be

paid to any member of a group granted a waiver under paragraph

(1) of this subsection by any method determined appropriate by

the Secretary of the Treasury.

‘‘(d) This section shall apply only to recipients of Federal wage

or salary payments who begin to receive such payments on or

after January 1, 1995, and recipients of Federal retirement payments who begin to receive such payments on or after January

1, 1995.

‘‘(e) The crediting of the amount of a payment to the appropriate

account on the books of a financial institution or other authorized

payment agent designated by a payment recipient under this section

shall constitute a full acquittance to the United States for the

amount of the payment.’’.

(b) TECHNICAL AND CONFORMING AMENDMENT.—The table of

sections for chapter 33 of title 31, United States Code, is amended

by amending the item for section 3332 to read:

‘‘3332. Required direct deposit.’’.

SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

(a) ESTABLISHMENT.—There is authorized to be established on

a pilot program basis in each of six executive agencies a franchise

fund. The Director of the Office of Management and Budget, after

consultation with the chairman and ranking members of the

Committees on Appropriations and Governmental Affairs of the

Senate, and the Committees on Appropriations and Government

Operations of the House of Representatives, shall designate the

agencies. (b) USES.—Each such fund may provide, consistent with guidelines established by the Director of the Office of Management and

Budget, such common administrative support services to the agency

and to other agencies as the head of such agency, with the concurrence of the Director, determines can be provided more efficiently

through such a fund than by other means. To provide such services,

each such fund is authorized to acquire the capital equipment,

automated data processing systems, and financial management and

management information systems needed. Services shall be provided by such funds on a competitive basis.
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(c) FUNDING.—(1) There are authorized to be appropriated to

the franchise fund of each agency designated under subsection

(a) such funds as are necessary to carry out the purposes of the

fund, to remain available until expended. To the extent that unexpended balances remain available in other accounts for the purposes

to be carried out by the fund, the head of the agency may transfer

such balances to the fund.

(2) Fees for services shall be established by the head of the

agency at a level to cover the total estimated costs of providing

such services. Such fees shall be deposited in the agency’s fund

to remain available until expended, and may be used to carry

out the purposes of the fund.

(3) Existing inventories, including inventories on order, equipment, and other assets or liabilities pertaining to the purposes

of the fund may be transferred to the fund.

(d) REPORT ON PILOT PROGRAMS.—Within 6 months after the

end of fiscal year 1997, the Director of the Office of Management

and Budget shall forward a report on the results of the pilot

programs to the Committees on Appropriations of the Senate and

of the House of Representatives, and to the Committee on Governmental Affairs of the Senate and the Committee on Government

Operations of the House of Representatives. The report shall contain

the financial and program performance results of the pilot programs,

including recommendations for—

(1) the structure of the fund;

(2) the composition of the funding mechanism;

(3) the capacity of the fund to promote competition; and

(4) the desirability of extending the application and

implementation of franchise funds to other Federal agencies.

(e) PROCUREMENT.—Nothing in this section shall be construed

as relieving any agency of any duty under applicable procurement

laws.

(f) TERMINATION.—The provisions of this section shall expire

on October 1, 1999.

SEC. 404. SIMPLIFICATION OF MANAGEMENT REPORTING PROCESS.

(a) IN GENERAL.—To improve the efficiency of executive branch

performance in implementing statutory requirements for financial

management reporting to the Congress and its committees, the

Director of the Office of Management and Budget may adjust the

frequency and due dates of or consolidate any statutorily required

reports of agencies to the Office of Management and Budget or

the President and of agencies or the Office of Management and

Budget to the Congress under any laws for which the Office of

Management and Budget has financial management responsibility,

including—

(1) chapters 5, 9, 11, 33, 35, 37, 39, 75, and 91 of title

31, United States Code;

(2) the Federal Civil Penalties Inflation Adjustment Act

of 1990 (28 U.S.C. 2461 note; Public Law 101–410; 104 Stat.

890).

(b) APPLICATION.—The authority provided in subsection (a) shall

apply only to reports of agencies to the Office of Management

and Budget or the President and of agencies or the Office of Management and Budget to the Congress required by statute to be submitted between January 1, 1995, and September 30, 1997.
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(c) ADJUSTMENTS IN REPORTING.—The Director may consolidate

or adjust the frequency and due dates of any statutorily required

reports under subsections (a) and (b) only after—

(1) consultation with the Chairman of the Senate Committee on Governmental Affairs and the Chairman of the House

of Representatives Committee on Government Operations; and

(2) written notification to the Congress, no later than February 8 of each fiscal year covered under subsection (b) for

those reports required to be submitted during that fiscal year.

SEC. 405. ANNUAL FINANCIAL REPORTS.

(a) FINANCIAL STATEMENTS.—Section 3515 of title 31, United

States Code, is amended to read as follows:

‘‘§ 3515. Financial statements of agencies

‘‘(a) Not later than March 1 of 1997 and each year thereafter,

the head of each executive agency identified in section 901(b) of

this title shall prepare and submit to the Director of the Office

of Management and Budget an audited financial statement for

the preceding fiscal year, covering all accounts and associated activities of each office, bureau, and activity of the agency.

‘‘(b) Each audited financial statement of an executive agency

under this section shall reflect—

‘‘(1) the overall financial position of the offices, bureaus,

and activities covered by the statement, including assets and

liabilities thereof; and

‘‘(2) results of operations of those offices, bureaus, and

activities.

‘‘(c) The Director of the Office of Management and Budget

shall identify components of executive agencies that shall be

required to have audited financial statements meeting the requirements of subsection (b).

‘‘(d) The Director of the Office of Management and Budget

shall prescribe the form and content of the financial statements

of executive agencies under this section, consistent with applicable

accounting and financial reporting principles, standards, and

requirements.

‘‘(e) The Director of the Office of Management and Budget

may waive the application of all or part of subsection (a) for financial

statements required for fiscal years 1996 and 1997.

‘‘(f) Not later than March 1 of 1995 and 1996, the head of

each executive agency identified in section 901(b) of this title and

designated by the Director of the Office of Management and Budget

shall prepare and submit to the Director of the Office of Management and Budget an audited financial statement for the preceding

fiscal year, covering all accounts and associated activities of each

office, bureau, and activity of the agency.

‘‘(g) Not later than March 31 of 1995 and 1996, for executive

agencies not designated by the Director of the Office of Management

and Budget under subsection (f), the head of each executive agency

identified in section 901(b) of this title shall prepare and submit

to the Director of the Office of Management and Budget a financial

statement for the preceding fiscal year, covering—

‘‘(1) each revolving fund and trust fund of the agency;

and
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‘‘(2) to the extent practicable, the accounts of each office,

bureau, and activity of the agency which performed substantial

commercial functions during the preceding fiscal year.

‘‘(h) For purposes of subsection (g), the term ‘commercial functions’ includes buying and leasing of real estate, providing insurance, making loans and loan guarantees, and other credit programs

and any activity involving the provision of a service or thing for

which a fee, royalty, rent, or other charge is imposed by an agency

for services and things of value it provides.’’.

(b) AUDITS BY AGENCIES.—Subsection 3521(f) of title 31, United

States Code, is amended to read as follows:

‘‘(f)(1) For each audited financial statement required under

subsections (a) and (f) of section 3515 of this title, the person

who audits the statement for purpose of subsection (e) of this

section shall submit a report on the audit to the head of the

agency. A report under this subsection shall be prepared in accordance with generally accepted government auditing standards.

‘‘(2) Not later than June 30 following the fiscal year for which

a financial statement is submitted under subsection (g) of section

3515 of this title, the person who audits the statement for purpose

of subsection (e) of this section shall submit a report on the audit

to the head of the agency. A report under this subsection shall

be prepared in accordance with generally accepted government

auditing standards.’’.

(c) GOVERNMENTWIDE FINANCIAL STATEMENT.—Section 331 of

title 31, United States Code, is amended by adding the following

new subsection:

‘‘(e)(1) Not later than March 31 of 1998 and each year thereafter, the Secretary of the Treasury, in coordination with the Director of the Office of Management and Budget, shall annually prepare

and submit to the President and the Congress an audited financial

statement for the preceding fiscal year, covering all accounts and

associated activities of the executive branch of the United States

Government. The financial statement shall reflect the overall financial position, including assets and liabilities, and results of operations of the executive branch of the United States Government,

and shall be prepared in accordance with the form and content

requirements set forth by the Director of the Office of Management

and Budget.
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‘‘(2) The Comptroller General of the United States shall audit

the financial statement required by this section.’’.

Speaker of the House of Representatives.

Vice President of the United States and

President of the Senate.