103D CONGRESS

2D SESSION S. 2170

AN ACT

To provide a more effective, efficient, and

responsive Government.
103D CONGRESS

2D SESSION S. 2170

AN ACT

To provide a more effective, efficient, and responsive

Government.

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 AND TABLE OF CONTENTS.

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

5 ‘‘Government Management Reform Act of 1994’’.
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1 (b) TABLE OF CONTENTS.—The table of contents for

2 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.

3 TITLE I—LIMITATION ON PAY

4 SEC. 101. LIMITATION ON CERTAIN ANNUAL PAY ADJUST5 MENTS.

6 Effective as of December 31, 1994—

7 (1) section 601(a)(2) of the Legislative Reorga8 nization Act of 1946 (2 U.S.C. 31(2)) is amended—

9 (A) by striking out ‘‘(2) Effective’’ and in10 serting in lieu thereof ‘‘(2)(A) Subject to sub11 paragraph (B), effective’’; and

12 (B) by adding at the end thereof the fol13 lowing:

14 ‘‘(B) In no event shall the percentage adjustment tak15 ing effect under subparagraph (A) in any calendar year

16 (before rounding), in any rate of pay, exceed the percent-
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1 age adjustment taking effect in such calendar year under

2 section 5303 of title 5, United States Code, in the rates

3 of pay under the General Schedule.’’;

4 (2) section 104 of title 3, United States Code,

5 is amended—

6 (A) in the first sentence by inserting ‘‘(a)’’

7 before ‘‘The’’;

8 (B) in the second sentence by striking out

9 ‘‘Effective’’ and inserting in lieu thereof ‘‘Sub10 ject to subsection (b), effective’’; and

11 (C) by adding at the end thereof the fol12 lowing:

13 ‘‘(b) In no event shall the percentage adjustment tak14 ing effect under the second and third sentences of sub15 section (a) in any calendar year (before rounding) exceed

16 the percentage adjustment taking effect in such calendar

17 year under section 5303 of title 5 in the rates of pay under

18 the General Schedule.’’;

19 (3) section 5318 of title 5, United States Code,

20 is amended—

21 (A) in the first sentence by striking out

22 ‘‘Effective’’ and inserting in lieu thereof ‘‘(a)

23 Subject to subsection (b), effective’’; and

24 (B) by adding at the end thereof the fol25 lowing:
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1 ‘‘(b) In no event shall the percentage adjustment tak2 ing effect under subsection (a) in any calendar year (be3 fore rounding), in any rate of pay, exceed the percentage

4 adjustment taking effect in such calendar year under sec5 tion 5303 in the rates of pay under the General Sched6 ule.’’; and

7 (4) section 461(a) of title 28, United States

8 Code, is amended—

9 (A) by striking out ‘‘(a) Effective’’ and in10 serting in lieu thereof ‘‘(a)(1) Subject to para11 graph (2), effective’’; and

12 (B) by adding at the end thereof the fol13 lowing:

14 ‘‘(2) In no event shall the percentage adjustment tak15 ing effect under paragraph (1) in any calendar year (be16 fore rounding), in any salary rate, exceed the percentage

17 adjustment taking effect in such calendar year under sec18 tion 5303 of title 5 in the rates of pay under the General

19 Schedule.’’.

20 TITLE II—HUMAN RESOURCE

21 MANAGEMENT

22 SEC. 201. SES ANNUAL LEAVE ACCUMULATION.

23 (a) IN GENERAL.—Effective on the first day of the

24 first applicable pay period beginning after the date of the
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1 enactment of this Act, subsection (f) of section 6304 of

2 title 5, United States Code, is amended to read as follows:

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

4 leave accrued by an individual while serving in a position

5 in—

6 ‘‘(A) the Senior Executive Service;

7 ‘‘(B) the Senior Foreign Service;

8 ‘‘(C) the Defense Intelligence Senior Executive

9 Service;

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

11 or

12 ‘‘(E) the Federal Bureau of Investigation and

13 Drug Enforcement Administration Senior Executive

14 Service.

15 ‘‘(2) For purposes of applying any limitation on accu16 mulation under this section with respect to any annual

17 leave described in paragraph (1)—

18 ‘‘(A) ‘30 days’ in subsection (a) shall be deemed

19 to read ‘90 days’; and

20 ‘‘(B) ‘45 days’ in subsection (b) shall be

21 deemed to read ‘90 days’.’’.

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

23 amendment made by subsection (a), in the case of an em24 ployee who, on the effective date of subsection (a), is sub25 ject to subsection (f) of section 6304 of title 5, United
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1 States Code, and who has to such employee’s credit annual

2 leave in excess of the maximum accumulation otherwise

3 permitted by subsection (a) or (b) of section 6304 (deter4 mined applying the amendment made by subsection (a)),

5 such excess annual leave shall remain to the credit of the

6 employee and be subject to reduction, in the same manner

7 as provided in subsection (c) of section 6304.

8 TITLE III—STREAMLINING

9 MANAGEMENT CONTROL

10 SEC. 301. AUTHORITY TO INCREASE EFFICIENCY IN RE11 PORTING TO CONGRESS.

12 (a) PURPOSE.—The purpose of this title is to improve

13 the efficiency of executive branch performance in imple14 menting statutory requirements for reports to Congress

15 and committees of Congress such as the elimination or

16 consolidation of duplicative or obsolete reporting require17 ments and adjustments to deadlines that shall provide for

18 more efficient workload distribution or improve the quality

19 of reports.

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

21 the Office of Management and Budget may publish annu22 ally in the budget submitted by the President to the Con23 gress, recommendations for consolidation, elimination, or

24 adjustments in frequency and due dates of statutorily re25 quired periodic reports to the Congress or committees of
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1 Congress. For each recommendation, the Director shall

2 provide an individualized statement of the reasons that

3 support the recommendation. In addition, for each report

4 for which a recommendation is made, the Director shall

5 state with specificity the exact consolidation, elimination,

6 or adjustment in frequency or due date that is rec7 ommended.

8 (c) RECOMMENDATIONS.—The Director’s rec9 ommendations shall be consistent with the purpose stated

10 in subsection (a).

11 (d) CONSULTATION.—Before the publication of the

12 recommendations under subsection (b), the Director or his

13 designee shall consult with the appropriate congressional

14 committees concerning the recommendations.

15 TITLE IV—FINANCIAL

16 MANAGEMENT

17 SEC. 401. SHORT TITLE.

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

19 Management Act of 1994’’.

20 SEC. 402. ELECTRONIC PAYMENTS.

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

22 States Code, is amended to read as follows:

23 ‘‘§ 3332. Required direct deposit

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

25 all Federal wage, salary, and retirement payments shall
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1 be paid to recipients of such payments by electronic funds

2 transfer, unless another method has been determined by

3 the Secretary of the Treasury to be appropriate.

4 ‘‘(2) Each recipient of Federal wage, salary, or retire5 ment payments shall designate one or more financial insti6 tutions or other authorized payment agents and provide

7 the payment certifying or authorizing agency information

8 necessary for the recipient to receive electronic funds

9 transfer payments through each institution so designated.

10 ‘‘(b)(1) The head of each agency shall waive the re11 quirements of subsection (a) of this section for a recipient

12 of Federal wage, salary, or retirement payments author13 ized or certified by the agency upon written request by

14 such recipient.

15 ‘‘(2) Federal wage, salary, or retirement payments

16 shall be paid to any recipient granted a waiver under para17 graph (1) of this subsection by any method determined

18 appropriate by the Secretary of the Treasury.

19 ‘‘(c)(1) The Secretary of the Treasury may waive the

20 requirements of subsection (a) of this section for any

21 group of recipients upon request by the head of an agency

22 under standards prescribed by the Secretary of the Treas23 ury.

24 ‘‘(2) Federal wage, salary, or retirement payments

25 shall be paid to any member of a group granted a waiver
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1 under paragraph (1) of this subsection by any method de2 termined appropriate by the Secretary of the Treasury.

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

4 Federal wage or salary payments who begin to receive

5 such payments on or after January 1, 1995, and recipients

6 of Federal retirement payments who begin to receive such

7 payments on or after January 1, 1995.

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

9 the appropriate account on the books of a financial institu10 tion or other authorized payment agent designated by a

11 payment recipient under this section shall constitute a full

12 acquittance to the United States for the amount of the

13 payment.’’.

14 (b) TECHNICAL AND CONFORMING AMENDMENT.—

15 The table of sections for chapter 33 of title 31, United

16 States Code, is amended by amending the item for section

17 3332 to read:

‘‘3332. Required direct deposit.’’.

18 SEC. 403. FRANCHISE FUND PILOT PROGRAMS.

19 (a) ESTABLISHMENT.—There is authorized to be es20 tablished on a pilot program basis in each of six executive

21 agencies a franchise fund. The Director of the Office of

22 Management and Budget, after consultation with the

23 chairman and ranking members of the Committees on Ap24 propriations and Governmental Affairs of the Senate, and

25 the Committees on Appropriations and Government Oper-
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1 ations of the House of Representatives, shall designate the

2 agencies.

3 (b) USES.—Each such fund may provide, consistent

4 with guidelines established by the Director of the Office

5 of Management and Budget, such common administrative

6 support services to the agency and to other agencies as

7 the head of such agency, with the concurrence of the Di8 rector, determines can be provided more efficiently

9 through such a fund than by other means. To provide such

10 services, each such fund is authorized to acquire the cap11 ital equipment, automated data processing systems, and

12 financial management and management information sys13 tems needed. Services shall be provided by such funds on

14 a competitive basis.

15 (c) FUNDING.—(1) There are authorized to be appro16 priated to the franchise fund of each agency designated

17 under subsection (a) such funds as are necessary to carry

18 out the purposes of the fund, to remain available until ex19 pended. To the extent that unexpended balances remain

20 available in other accounts for the purposes to be carried

21 out by the fund, the head of the agency may transfer such

22 balances to the fund.

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

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

25 of providing such services. Such fees shall be deposited
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1 in the agency’s fund to remain available until expended,

2 and may be used to carry out the purposes of the fund.

3 (3) Existing inventories, including inventories on

4 order, equipment, and other assets or liabilities pertaining

5 to the purposes of the fund may be transferred to the

6 fund.

7 (d) REPORT ON PILOT PROGRAMS.—Within 6

8 months after the end of fiscal year 1997, the Director of

9 the Office of Management and Budget shall forward a re10 port on the results of the pilot programs to the Commit11 tees on Appropriations of the Senate and of the House

12 of Representatives, and to the Committee on Govern13 mental Affairs of the Senate and the Committee on Gov14 ernment Operations of the House of Representatives. The

15 report shall contain the financial and program perform16 ance results of the pilot programs, including recommenda17 tions for—

18 (1) the structure of the fund;

19 (2) the composition of the funding mechanism;

20 (3) the capacity of the fund to promote com21 petition; and

22 (4) the desirability of extending the application

23 and implementation of franchise funds to other Fed24 eral agencies.
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1 (e) PROCUREMENT.—Nothing in this section shall be

2 construed as relieving any agency of any duty under appli3 cable procurement laws.

4 (f) TERMINATION.—The provisions of this section

5 shall expire on October 1, 1999.

6 SEC. 404. SIMPLIFICATION OF MANAGEMENT REPORTING

7 PROCESS.

8 (a) IN GENERAL.—To improve the efficiency of exec9 utive branch performance in implementing statutory re10 quirements for financial management reporting to the

11 Congress and its committees, the Director of the Office

12 of Management and Budget may adjust the frequency and

13 due dates of or consolidate any statutorily required reports

14 of agencies to the Office of Management and Budget or

15 the President and of agencies or the Office of Management

16 and Budget to the Congress under any laws for which the

17 Office of Management and Budget has financial manage18 ment responsibility, including—

19 (1) chapters 5, 9, 11, 33, 35, 37, 39, 75, and

20 91 of title 31, United States Code;

21 (2) the Federal Civil Penalties Inflation Adjust22 ment Act of 1990 (28 U.S.C. 2461 note; Public Law

23 101–410; 104 Stat. 890).

24 (b) APPLICATION.—The authority provided in sub25 section (a) shall apply only to reports of agencies to the
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1 Office of Management and Budget or the President and

2 of agencies or the Office of Management and Budget to

3 the Congress required by statute to be submitted between

4 January 1, 1995, and September 30, 1997.

5 (c) ADJUSTMENTS IN REPORTING.—The Director

6 may consolidate or adjust the frequency and due dates of

7 any statutorily required reports under subsections (a) and

8 (b) only after—

9 (1) consultation with the Chairman of the Sen10 ate Committee on Governmental Affairs and the

11 Chairman of the House of Representatives Commit12 tee on Government Operations; and

13 (2) written notification to the Congress, no

14 later than February 8 of each fiscal year covered

15 under subsection (b) for those reports required to be

16 submitted during that fiscal year.

17 SEC. 405. ANNUAL FINANCIAL REPORTS.

18 (a) FINANCIAL STATEMENTS.—Section 3515 of title

19 31, United States Code, is amended to read as follows:

20 ‘‘§ 3515. Financial statements of agencies

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

22 thereafter, the head of each executive agency identified in

23 section 901(b) of this title shall prepare and submit to

24 the Director of the Office of Management and Budget an

25 audited financial statement for the preceding fiscal year,
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1 covering all accounts and associated activities of each of2 fice, bureau, and activity of the agency.

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

4 agency under this section shall reflect—

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

6 bureaus, and activities covered by the statement, in7 cluding assets and liabilities thereof; and

8 ‘‘(2) results of operations of those offices, bu9 reaus, and activities.

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

11 Budget shall identify components of executive agencies

12 that shall be required to have audited financial statements

13 meeting the requirements of subsection (b).

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

15 Budget shall prescribe the form and content of the finan16 cial statements of executive agencies under this section,

17 consistent with applicable accounting and financial report18 ing principles, standards, and requirements.

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

20 Budget may waive the application of all or part of sub21 section (a) for financial statements required for fiscal

22 years 1996 and 1997.

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

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

25 of this title and designated by the Director of the Office
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1 of Management and Budget shall prepare and submit to

2 the Director of the Office of Management and Budget an

3 audited financial statement for the preceding fiscal year,

4 covering all accounts and associated activities of each of5 fice, bureau, and activity of the agency.

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

7 executive agencies not designated by the Director of the

8 Office of Management and Budget under subsection (f),

9 the head of each executive agency identified in section

10 901(b) of this title shall prepare and submit to the Direc11 tor of the Office of Management and Budget a financial

12 statement for the preceding fiscal year, covering—

13 ‘‘(1) each revolving fund and trust fund of the

14 agency; and

15 ‘‘(2) to the extent practicable, the accounts of

16 each office, bureau, and activity of the agency which

17 performed substantial commercial functions during

18 the preceding fiscal year.

19 ‘‘(h) For purposes of subsection (g), the term ‘com20 mercial functions’ includes buying and leasing of real es21 tate, providing insurance, making loans and loan guaran22 tees, and other credit programs and any activity involving

23 the provision of a service or thing for which a fee, royalty,

24 rent, or other charge is imposed by an agency for services

25 and things of value it provides.’’.
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1 (b) AUDITS BY AGENCIES.—Subsection 3521(f) of

2 title 31, United States Code, is amended to read as fol3 lows:

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

5 under subsections (a) and (f) of section 3515 of this title,

6 the person who audits the statement for purpose of sub7 section (e) of this section shall submit a report on the

8 audit to the head of the agency. A report under this sub9 section shall be prepared in accordance with generally ac10 cepted government auditing standards.

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

12 for which a financial statement is submitted under sub13 section (g) of section 3515 of this title, the person who

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

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

16 the agency. A report under this subsection shall be pre17 pared in accordance with generally accepted government

18 auditing standards.’’.

19 (c) GOVERNMENTWIDE FINANCIAL STATEMENT.—

20 Section 331 of title 31, United States Code, is amended

21 by adding the following new subsection:

22 ‘‘(e)(1) Not later than March 31 of 1998 and each

23 year thereafter, the Secretary of the Treasury, in coordi24 nation with the Director of the Office of Management and

25 Budget, shall annually prepare and submit to the Presi-
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1 dent and the Congress an audited financial statement for

2 the preceding fiscal year, covering all accounts and associ3 ated activities of the executive branch of the United States

4 Government. The financial statement shall reflect the

5 overall financial position, including assets and liabilities,

6 and results of operations of the executive branch of the

7 United States Government, and shall be prepared in ac8 cordance with the form and content requirements set forth

9 by the Director of the Office of Management and Budget.

10 ‘‘(2) The Comptroller General of the United States

11 shall audit the financial statement required by this sec12 tion.’’.

Passed the Senate September 28 (legislative day,

September 12), 1994.

Attest:

Secretary.
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