I 

113TH CONGRESS 

2D SESSION H. R. 4678 

To establish the Federal Accounting Standards Advisory Board as an independent establishment to develop Federal financial accounting concepts 

and standards and provide guidance to users of Federal financial information, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 20, 2014 

Mr. RENACCI (for himself, Mr. CARNEY, Mr. OWENS, Mr. KELLY of Pennsylvania, Mr. JOYCE, Mr. CAMPBELL, Mr. BUCSHON, Mr. WEBSTER of Florida, Mr. RIBBLE, Mr. KILMER, Mr. COOPER, Mr. CONAWAY, Mr. STIVERS, Mr. DELANEY, and Mr. WELCH) introduced the following bill; which 

was referred to the Committee on Oversight and Government Reform, 

and in addition to the Committee on Ways and Means, for a period to 

be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL 

To establish the Federal Accounting Standards Advisory 

Board as an independent establishment to develop Federal financial accounting concepts and standards and 

provide guidance to users of Federal financial information, 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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Federal Financial 

3 Statement Transparency Act of 2014’’. 

4 SEC. 2. FEDERAL ACCOUNTING STANDARDS ADVISORY 

5 BOARD. 

6 There is established in the executive branch of the 

7 Government an independent establishment to be known as 

8 the Federal Accounting Standards Advisory Board (in this 

9 Act referred to as the ‘‘Board’’). 

10 SEC. 3. MEMBERSHIP. 

11 (a) NUMBER AND APPOINTMENT.—The Board shall 

12 be composed of 10 members appointed as follows: 

13 (1) One member shall be an employee of the 

14 Government Accountability Office, appointed by the 

15 Comptroller General of the United States (in this 

16 Act referred to as the ‘‘Comptroller General’’). 

17 (2) One member shall be an employee of the 

18 Office of Management and Budget, appointed by the 

19 Director of the Office of Management and Budget 

20 (in this Act referred to as the ‘‘Director’’). 

21 (3) One member shall be an employee of the 

22 Department of the Treasury, appointed by the Sec23 retary of the Treasury (in this Act referred to as the 

24 ‘‘Secretary’’), who may not participate in any votes 

25 held pursuant to section 4(c)(1). 


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1 (4) Seven members shall be appointed from the 

2 general financial community, the accounting and au3 diting community, or academia by an appointment 

4 panel consistent with the requirements of subsection 

5 (d). 

6 (b) REQUIREMENTS FOR NON-FEDERAL MEM7 BERS.—Members appointed pursuant to subsection (a)(4) 

8 may not be selected from among Federal employees. 

9 (c) TERMS.— 

10 (1) FEDERAL MEMBERS.—A member appointed 

11 pursuant to paragraph (1), (2), or (3) of subsection 

12 (a) shall serve on the Board at the discretion of the 

13 head of each agency that appoints such a member. 

14 (2) NON-FEDERAL MEMBERS.—Members ap15 pointed pursuant to subsection (a)(4) shall serve for 

16 a term not to exceed 5 years and that, upon ap17 proval of an appointment panel described in sub18 section (d), may be renewed for an additional term 

19 not to exceed 5 years. 

20 (d) APPOINTMENT PANEL.— 

21 (1) INITIAL APPOINTMENT PANEL MEMBER22 SHIP.—Upon appointment, the member appointed by 

23 the Comptroller General pursuant to subsection 

24 (a)(1) shall convene an appointment panel consisting 

25 of not more than 6 individuals as follows: 


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1 (A) The member appointed by the Comp2 troller General pursuant to subsection (a)(1), 

3 who shall serve as chair of the initial appoint4 ment panel. 

5 (B) The members appointed by the Direc6 tor and the Secretary, respectively, pursuant to 

7 paragraphs (2) and (3) of subsection (a). 

8 (C) One representative from the Financial 

9 Accounting Foundation (or a successor organi10 zation). 

11 (D) Two representatives from an organiza12 tion that nationally represents the interests of 

13 the certified public accountant profession by— 

14 (i) serving as an advocate before legis15 lative and regulatory entities, public inter16 est organizations, and professional organi17 zations; 

18 (ii) developing standards for audits of 

19 nonpublic entities and guidelines for serv20 ices of certified public accountants; 

21 (iii) providing professional tools and 

22 training to certified public accountants; 

23 and 


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1 (iv) monitoring and enforcing compli2 ance with technical and ethical standards 

3 for certified public accountants. 

4 (2) DUTIES OF APPOINTMENT PANEL.—The ap5 pointment panel established under this subsection 

6 shall appoint members pursuant to subsection (a)(4) 

7 to serve on the Board. 

8 (3) EXPIRATION.—The chair shall dissolve the 

9 appointment panel upon completion of the duties de10 scribed in paragraph (2). 

11 (4) SELECTION OF CHAIR OF SUBSEQUENT AP12 POINTMENT PANEL.—The Secretary, the Director, 

13 and the Comptroller General shall select one member 

14 appointed pursuant to subsection (a)(4) to serve as 

15 the chair of the Board and the chair of a subsequent 

16 appointment panel. 

17 (5) SUBSEQUENT APPOINTMENT PANEL.—The 

18 chair selected pursuant to paragraph (4) shall con19 vene an appointment panel before the expiration of 

20 the term of the Board members appointed pursuant 

21 to subsection (a)(4). 

22 SEC. 4. DUTIES; CONCEPTS AND STANDARDS. 

23 (a) DUTIES OF FASAB.—The Board shall develop 

24 Federal financial accounting concepts or standards and 

25 give consideration to the budgetary information needs of 


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1 executive agencies and the needs of users of Federal finan2 cial information. 

3 (b) RESTRICTION ON DUTIES.—The Board may not 

4 set or propose budget concepts, standards, or principles. 

5 (c) CONCEPTS AND STANDARDS.— 

6 (1) FASAB VOTE.—The Board shall submit to 

7 the Director and the Comptroller General any Fed8 eral financial accounting concepts or standards de9 veloped under subsection (a) that receive a favorable 

vote by at least 2 10 ⁄3 of the Board members (except as 

11 provided in section 3(a)(3)). 

12 (2) OMB AND GAO REVIEW.— 

13 (A) AUTOMATIC ACCEPTANCE.—Except as 

14 provided in subparagraph (B), the concept or 

15 standard described in paragraph (1) shall be 

16 submitted to the Secretary at the end of the 90- 

17 day period beginning on the date the Director 

18 and the Comptroller General receive the concept 

19 or standard. 

20 (B) PROCESS FOR REJECTION.—If the Di21 rector or the Comptroller General disapproves 

22 of the concept or standard described in para23 graph (1), the Director or the Comptroller Gen24 eral shall, not later than 90 days after receiving 

25 such concept or standard, reject such concept 


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1 or standard and submit such concept or stand2 ard to the Board for reconsideration. 

3 (C) REPORT FOR REJECTION.—Not later 

4 than 5 days after submitting the concept or 

5 standard to the Board for reconsideration, the 

6 Director or the Comptroller General shall sub7 mit to Congress and the organization described 

8 in section 3(d)(1)(D) a report, which shall be 

9 made available to the public, describing the re10 jected concept or standard and the basis for the 

11 rejection. 

12 (3) FASAB PUBLICATION.—At the end of the 

13 period described in paragraph (2)(A), the Board 

14 shall publish the concept or standard submitted to 

15 the Secretary pursuant to such paragraph in the 

16 Federal Register. 

17 (4) TREASURY REVIEW.— 

18 (A) IN GENERAL.—Except as provided in 

19 subparagraph (B), if the Secretary decides not 

20 to adopt a concept or standard submitted pur21 suant to subsection (c)(2)(A), the Secretary 

22 shall submit, along with the annual report sub23 mitted pursuant to section 331(e)(1) of title 31, 

24 United States Code, a description of any reVerDate Mar 15 2010 01:34 May 28, 2014 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H4678.IH H4678

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1 jected concept or standard and the basis for the 

2 rejection. 

3 (B) EXCEPTION FOR IMMATERIAL DEVI4 ATIONS.—The requirements of subparagraph 

5 (A) do not apply if the Secretary determines 

6 that the application of the concept or standard 

7 would not have a material effect on the annual 

8 report submitted pursuant to section 331(e)(1) 

9 of title 31, United States Code. 

10 (d) GAO AUDIT.—If, in conducting an audit of the 

11 annual report submitted by the Secretary pursuant to sec12 tion 331(e)(1) of title 31, United States Code, the Comp13 troller General finds a material deviation from generally 

14 accepted accounting principles in such report, the Sec15 retary shall submit to the Comptroller General an expla16 nation for such deviation not later than 30 days after noti17 fication of such deviation. 

18 SEC. 5. FASAB OPERATIONS FUND. 

19 (a) ESTABLISHMENT.—The Secretary of the Treas20 ury shall establish a fund, to be available without fiscal 

21 year limitation, to provide funds to the Board for the pur22 pose of carrying out its duties under this Act. 

23 (b) AMOUNT.—The Board shall determine the annual 

24 cost of carrying out its duties. 


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1 (c) DEPOSITS.—Beginning on the first day of the 

2 first full fiscal year that begins after the date of enactment 

3 of this Act, the Secretary of the Treasury shall assess a 

4 fee on each sale of a security under chapter 31 of title 

5 31, United States Code, in an annual aggregate amount 

6 equal to the amount specified in subsection (b), and de7 posit such amount into the fund. 

8 (d) USE OF FUNDS.—Amounts in the fund may be 

9 used by the Board, for the purpose of carrying out the 

10 duties of the Board under this Act without further appro11 priation, beginning on the first day of the fiscal year be12 ginning after the fiscal year described in subsection (c). 

13 SEC. 6. EFFECTIVE DATE. 

14 Sections 3 and 4 of this Act shall take effect on the 

15 date that amounts in the fund described in section 5 are 

16 transferred to the Board. 

Æ 


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