II 

108TH CONGRESS 

2D SESSION S. 2680 

To provide for certain financial reporting requirements to apply to certain 

small executive branch agencies, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 16, 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 certain financial reporting requirements to 

apply to certain small executive branch agencies, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Financial Account5 ability Expansion Act of 2004’’. 

6 SEC. 2. FINANCIAL STATEMENT REQUIREMENT FOR CER7 TAIN SMALL AGENCIES. 

8 (a) IN GENERAL.—Section 3515 of title 31, United 

9 States Code, is amended— 

10 (1) in subsection (a), by striking ‘‘(1)’’; and 
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1 (2) by striking subsection (e) and inserting the 

2 following: 

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

4 Budget shall determine which covered executive agencies 

5 have size or budgetary limitations that do not support the 

6 internal preparation of a financial statement required 

7 under this section. The Director of the Office of Manage8 ment and Budget shall inform the Secretary of the Treas9 ury of such determination, and for such agencies, the Sec10 retary of the Treasury shall prepare the financial state11 ment, or enter into a contract for the preparation of such 

12 statement, and shall enter into a contract with 1 or more 

13 independent auditors to audit the financial statement re14 quired under this section. All requirements of this section 

15 shall apply with respect to audited financial statements 

16 prepared under this subsection.’’. 

17 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

18 Section 2 of the Accountability of Tax Dollars Act of 2002 

19 (31 U.S.C. 3515 note; Public Law 107–289) is amended 

20 by striking subsection (b). 

21 SEC. 3. CERTAIN FEDERAL ENTITIES WITHOUT ANNUAL AU22 DITED FINANCIAL STATEMENT REQUIRE23 MENTS. 

24 (a) DEFINITION.—In this section, the term ‘‘Federal 

25 entity’’ means any entity established in the executive 
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1 branch, including such an entity that administers a special 

2 purpose program or any other entity established by presi3 dential or departmental directive that is not required to 

4 prepare an annual audited financial statement. 

5 (b) ANNUALLY AUDITED FINANCIAL STATE6 MENTS.—The Office of Management and Budget shall re7 quire each Federal entity that is not statutorily required 

8 to prepare an annual financial statement and have the 

9 statement independently audited, to submit an annually 

10 audited financial statement prepared in accordance with 

11 United States generally accepted auditing principles to the 

12 Office of Management and Budget. 

13 (c) REPORT.— 

14 (1) IN GENERAL.—Not later than 90 days after 

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

16 the Office of Management and Budget shall submit 

17 a report described under paragraph (2) to the— 

18 (A) Committee on Governmental Affairs of 

19 the Senate; and 

20 (B) Committee on Government Reform of 

21 the House of Representatives. 

22 (2) CONTENT.—The report under paragraph 

23 (1) shall include— 

24 (A) a list of each Federal entity as defined 

25 under subsection (a); and 
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1 (B) actions taken by the Office of Manage2 ment and Budget to implement subsection (b). 

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 in fiscal year 

6 2005, and each fiscal year thereafter. 

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