II 

108TH CONGRESS 

2D SESSION S. 2688 

To provide for a report of Federal entities without annually audited financial 

statements. 

IN THE SENATE OF THE UNITED STATES 

JULY 19, 2004 

Mr. FITZGERALD (for himself and Mr. AKAKA) introduced the following bill; 

which was read twice and referred to the Committee on Governmental Affairs 

A BILL 

To provide for a report of Federal entities without annually 

audited financial statements. 

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 ‘‘Executive Branch Fi5 nancial Accountability Reporting Act of 2004’’. 

6 SEC. 2. DEFINITION. 

7 In this Act, the term ‘‘Federal entity’’ means any en8 tity established in the executive branch, including such an 

9 entity that administers a special purpose program or any 
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1 other entity established by presidential or departmental di2 rective. 

3 SEC. 3. REPORT OF FEDERAL ENTITIES WITHOUT ANNU4 ALLY AUDITED FINANCIAL STATEMENTS. 

5 (a) REPORT.— 

6 (1) IN GENERAL.—Not later than 60 days after 

7 the date of enactment of this Act, the Director of 

8 the Office of Management and Budget shall submit 

9 a report described under subsection (b) to— 

10 (A) the Committee on Governmental Af11 fairs of the Senate; and 

12 (B) the Committee on Government Reform 

13 of the House of Representatives. 

14 (b) CONTENT.—The report under paragraph (1) shall 

15 include— 

16 (1) a list of each Federal entity that receives an 

17 exemption or waiver from the requirement for an an18 nually audited financial statement under section 

19 3515 of title 31, United States Code, including the 

20 entity’s budget authority and outlays for the pre21 vious and current fiscal years, and the projected 

22 budget authority for the upcoming fiscal year; 

23 (2) a list of any other Federal entities, includ24 ing temporary commissions, task forces, advisory 

25 boards, and other special purpose entities, that do 
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1 not annually prepare financial statements and have 

2 such statements independently audited, including the 

3 entities’ budget authority and outlays for the pre4 vious and current fiscal years, and the projected 

5 budget authority for the upcoming fiscal year; 

6 (3) an assessment of the capability of the enti7 ties listed under paragraphs (1) and (2) to prepare 

8 annual financial statements and have such state9 ments independently audited, including the costs 

10 that would be incurred to do so; 

11 (4) an assessment of how to reduce the costs of 

12 preparing the financial statements and performing 

13 independent audits by grouping together smaller en14 tities listed under paragraphs (1) and (2), and other 

15 methods by which the preparation and independent 

16 audits of financial statements could be made cost-ef17 fective for those entities; and 

18 (5) an assessment of the benefits of improved 

19 financial oversight encompassing the entire executive 

20 branch, including the entities listed under para21 graphs (1) and (2), and recommendations for a plan 

22 to implement a requirement that the entire executive 

23 branch, including the entities listed under para24 graphs (1) and (2), prepare annual financial state-
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1 ments and have such statements independently au2 dited. 

3 SEC. 4. AUTHORIZATION OF APPROPRIATIONS. 

4 There are authorized to be appropriated such sums 

5 as may be necessary to carry out this Act. 

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