I 

108TH CONGRESS 

2D SESSION H. R. 4259

To amend title 31, United States Code, to improve the financial accountability 

requirements applicable to the Department of Homeland Security, to 

establish requirements for the Future Years Homeland Security Program 

of the Department, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 4, 2004

Mr. PLATTS (for himself, Mr. TOM DAVIS of Virginia, Mr. WAXMAN, Mr. 

TOWNS, Mrs. BLACKBURN, Mr. COX, and Mr. TURNER of Texas) introduced the following bill; which was referred to the Committee on Government Reform, and in addition to the Select Committee on Homeland Security, 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 amend title 31, United States Code, to improve the 

financial accountability requirements applicable to the 

Department of Homeland Security, to establish requirements for the Future Years Homeland Security Program 

of the Department, 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 ‘‘Department of Homeland 

5 Security Financial Accountability Act’’. 
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1 SEC. 2. FINDINGS. 

2 The Congress finds the following: 

3 (1) Influential financial management leadership 

4 is of vital importance to the mission success of the 

5 Department of Homeland Security. For this reason, 

6 the Chief Financial Officer of the Department must 

7 be a key figure in the Department’s management. 

8 (2) To provide a sound financial leadership 

9 structure, the provisions of law enacted by the Chief 

10 Financial Officers Act of 1990 (Public Law 101–

11 576) provide that the Chief Financial Officer of each 

12 of the Federal executive departments is to be a Pres13 idential appointee who reports directly to the Sec14 retary of that department on financial management 

15 matters. Because the Department of Homeland Se16 curity was only recently created, the provisions en17 acted by that Act must be amended to include the 

18 Department within these provisions. 

19 (3) The Department of Homeland Security was 

20 created by consolidation of 22 separate Federal 

21 agencies, each with its own accounting and financial 

22 management system. None of these systems was de23 veloped with a view to executing the mission of the 

24 Department of Homeland Security to prevent ter25 rorist attacks within the United States, reduce the 

26 Nation’s vulnerability to terrorism, and minimize the 
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1 damage and assist in the recovery from terrorist at2 tacks. For these reasons, a strong Chief Financial 

3 Officer is needed within the Department both to 

4 consolidate financial management operations, and to 

5 insure that management control systems are com6 prehensively designed to achieve the mission and 

7 execute the strategy of the Department. 

8 (4) The provisions of law enacted by the Chief 

9 Financial Officers Act of 1990 require agency Chief 

10 Financial Officers to improve the financial informa11 tion available to agency managers and the Congress. 

12 Those provisions also specify that agency financial 

13 management systems must provide for the system14 atic measurement of performance. In the case of the 

15 Department of Homeland Security, therefore, it is 

16 vitally important that management control systems 

17 be designed with a clear view of a homeland security 

18 strategy, including the priorities of the Department 

19 in addressing those risks of terrorism deemed most 

20 significant based upon a comprehensive assessment 

21 of potential threats, vulnerabilities, criticality, and 

22 consequences. For this reason, Federal law should 

23 be amended to clearly state the responsibilities of 

24 the Chief Financial Officer of the Department of 

25 Homeland Security to provide management control 
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1 information, for the benefit of managers within the 

2 Department and to help inform the Congress, that 

3 permits an assessment of the Department’s perform4 ance in executing a homeland security strategy. 

5 SEC. 3. CHIEF FINANCIAL OFFICER OF THE DEPARTMENT 

6 OF HOMELAND SECURITY. 

7 (a) IN GENERAL.—Section 901(b)(1) of title 31, 

8 United States Code, is amended—

9 (1) by redesignating subparagraphs (G) 

10 through (P) as subparagraphs (H) through (Q), re11 spectively; and 

12 (2) by inserting after subparagraph (F) the fol13 lowing: 

14 ‘‘(G) The Department of Homeland Security.’’. 

15 (b) APPOINTMENT OR DESIGNATION OF CFO.—The 

16 President shall appoint or designate a Chief Financial Of17 ficer of the Department of Homeland Security under the 

18 amendment made by subsection (a) by not later than 180 

19 days after the date of the enactment of this Act. 

20 (c) CONTINUED SERVICE OF CURRENT OFFICIAL.—

21 An individual serving as Chief Financial Officer of the De22 partment of Homeland Security immediately before the 

23 enactment of this Act, or another person who is appointed 

24 to replace such an individual in an acting capacity after 

25 the enactment of this Act, may continue to serve in that 
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1 position until the date of the confirmation or designation, 

2 as applicable (under section 901(a)(1)(B) of title 31, 

3 United States Code), of a successor under the amendment 

4 made by subsection (a). 

5 (d) CONFORMING AMENDMENTS.—

6 (1) HOMELAND SECURITY ACT OF 2002.—The 

7 Homeland Security Act of 2002 (Public Law 107–

8 296) is amended—

9 (A) in section 103 (6 U.S.C. 113)—

10 (i) in subsection (d) by striking para11 graph (4), and redesignating paragraph 

12 (5) as paragraph (4); 

13 (ii) by redesignating subsection (e) as 

14 subsection (f); and 

15 (iii) by inserting after subsection (d) 

16 the following: 

17 ‘‘(e) CHIEF FINANCIAL OFFICER.—There shall be in 

18 the Department a Chief Financial Officer, as provided in 

19 chapter 9 of title 31, United States Code.’’; and 

20 (B) in section 702 (6 U.S.C. 342) by strik21 ing ‘‘shall report’’ and all that follows through 

22 the period and inserting ‘‘shall perform func23 tions as specified in chapter 9 of title 31, 

24 United States Code, and, with respect to all 

25 such functions and other responsibilities that 
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1 may be assigned to the Chief Financial Officer 

2 from time to time, shall also report to the 

3 Under Secretary for Management.’’. 

4 (2) FEMA.—Section 901(b)(2) of title 31, 

5 United States Code, is amended by striking subpara6 graph (B), and by redesignating subparagraphs (C) 

7 through (H) in order as subparagraphs (B) through 

8 (G). 

9 SEC. 4. FUNCTIONS OF CHIEF FINANCIAL OFFICER OF THE 

10 DEPARTMENT OF HOMELAND SECURITY. 

11 (a) PERFORMANCE AND ACCOUNTABILITY RE12 PORTS.—Section 3516 of title 31, United States Code, is 

13 amended by adding at the end the following: 

14 ‘‘(f) The Secretary of Homeland Security—

15 ‘‘(1) shall for each fiscal year submit a per16 formance and accountability report under subsection 

17 (a) that incorporates the program performance re18 port under section 1116 of this title for the Depart19 ment of Homeland Security; 

20 ‘‘(2) shall include in each performance and ac21 countability report an audit opinion of the Depart22 ment’s internal controls over its financial reporting; 

23 and 

24 ‘‘(3) shall design and implement Department25 wide management controls that—
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1 ‘‘(A) reflect the most recent homeland se2 curity strategy developed pursuant to section 

3 874(b)(2) of the Homeland Security Act of 

4 2002; and 

5 ‘‘(B) permit assessment, by the Congress 

6 and by managers within the Department, of the 

7 Department’s performance in executing such 

8 strategy.’’. 

9 (b) IMPLEMENTATION OF AUDIT OPINION REQUIRE10 MENT.—The Secretary of Homeland Security shall include 

11 audit opinions in performance and accountability reports 

12 under section 3516(f) of title 31, United States Code, as 

13 amended by subsection (a), only for fiscal years after fiscal 

14 year 2005. 

15 (c) ASSERTION OF INTERNAL CONTROLS.—The Sec16 retary of Homeland Security shall include in the perform17 ance and accountability report for fiscal year 2005 sub18 mitted by the Secretary under section 3516(f) of title 31, 

19 United States Code, an assertion of the internal controls 

20 that apply to financial reporting by the Department of 

21 Homeland Security. 

22 (d) AUDIT OPINIONS OF INTERNAL CONTROLS OVER

23 FINANCIAL REPORTING BY CHIEF FINANCIAL OFFICER

24 AGENCIES.—
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1 (1) IN GENERAL.—Not later than 180 days 

2 after the date of the enactment of this Act, the 

3 Chief Financial Officers Council and the President’s 

4 Council on Integrity and Efficiency established by 

5 Executive Order 12805 of May 11, 1992, shall joint6 ly conduct a study of the potential costs and benefits 

7 of requiring the agencies listed in section 901(b) of 

8 title 31, United States Code, to obtain audit opin9 ions of their internal controls over their financial re10 porting. 

11 (2) REPORT.—Upon completion of the study 

12 under paragraph (1), the Chief Financial Officers 

13 Council and the President’s Council on Integrity and 

14 Efficiency shall promptly submit a report on the re15 sults of the study to the Committee on Government 

16 Reform of the House of Representatives, the Com17 mittee on Governmental Affairs of the Senate, and 

18 the Comptroller General of the United States. 

19 (3) GENERAL ACCOUNTING OFFICE ANAL20 YSIS.—Not later than 90 days after receiving the re21 port under paragraph (2), the Comptroller General 

22 shall perform an analysis of the information pro23 vided in the report and report the findings of the 

24 analysis to the committees referred to in paragraph 

25 (2). 
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1 SEC. 5. FUTURE YEARS HOMELAND SECURITY PROGRAM 

2 AND HOMELAND SECURITY STRATEGY. 

3 Section 874 of the Homeland Security Act of 2002 

4 (6 U.S.C. 112) is amended by striking subsection (b) and 

5 inserting the following: 

6 ‘‘(b) CONTENTS.—The Future Years Homeland Se7 curity Program under subsection (a) shall—

8 ‘‘(1) include the same type of information, or9 ganizational structure, and level of detail as the fu10 ture years defense program submitted to Congress 

11 by the Secretary of Defense under section 221 of 

12 title 10, United States Code; 

13 ‘‘(2) set forth the homeland security strategy of 

14 the Department, which shall be developed and up15 dated as appropriate annually by the Secretary, that 

16 was used to develop program planning guidance for 

17 the Future Years Homeland Security Program; and 

18 ‘‘(3) include an explanation of how the resource 

19 allocations included in the Future Years Homeland 

20 Security Program correlate to the homeland security 

21 strategy set forth under paragraph (2).’’. 

22 SEC. 6. ESTABLISHMENT OF OFFICE OF PROGRAM ANAL23 YSIS AND EVALUATION. 

24 Section 702 of the Homeland Security Act of 2002 

25 (6 U.S.C. 342) is amended by—
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1 (1) inserting ‘‘(a) In General.—’’ before the 

2 first sentence; and 

3 (2) adding at the end the following: 

4 ‘‘(b) PROGRAM ANALYSIS AND EVALUATION FUNC5 TION.—

6 ‘‘(1) ESTABLISHMENT OF OFFICE OF PROGRAM

7 ANALYSIS AND EVALUATION.—Not later than 90 

8 days after the date of enactment of this subsection, 

9 the Secretary shall establish an Office of Program 

10 Analysis and Evaluation within the Department (in 

11 this section referred to as the ‘Office’). 

12 ‘‘(2) RESPONSIBILITIES.—The Office shall per13 form the following functions: 

14 ‘‘(A) Analyze and evaluate plans, pro15 grams, and budgets of the Department in rela16 tion to United States homeland security objec17 tives, projected threats, vulnerability assess18 ments, estimated costs, resource constraints, 

19 and the most recent homeland security strategy 

20 developed pursuant to section 874(b)(2). 

21 ‘‘(B) Develop and perform analyses and 

22 evaluations of alternative plans, programs, per23 sonnel levels, and budget submissions for the 

24 Department in relation to United States home25 land security objectives, projected threats, vul-
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1 nerability assessments, estimated costs, re2 source constraints, and the most recent home3 land security strategy developed pursuant to 

4 section 874(b)(2). 

5 ‘‘(C) Establish policies for, and oversee the 

6 integration of, the planning, programming, and 

7 budgeting system of the Department. 

8 ‘‘(D) Review and ensure that the Depart9 ment meets performance-based budget require10 ments established by the Office of Management 

11 and Budget. 

12 ‘‘(E) Provide guidance for, and oversee the 

13 development of, the Future Years Homeland 

14 Security Program of the Department, as speci15 fied under section 874. 

16 ‘‘(F) Ensure that the costs of Department 

17 programs, including classified programs, are 

18 presented accurately and completely. 

19 ‘‘(G) Oversee the preparation of the annual 

20 performance plan for the Department and the 

21 program and performance section of the annual 

22 report on program performance for the Depart23 ment, consistent with sections 1115 and 1116, 

24 respectively, of title 31, United States Code. 
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1 ‘‘(H) Provide leadership in developing and 

2 promoting improved analytical tools and meth3 ods for analyzing homeland security planning 

4 and the allocation of resources. 

5 ‘‘(I) Any other responsibilities delegated by 

6 the Secretary consistent with an effective pro7 gram analysis and evaluation function. 

8 ‘‘(3) DIRECTOR OF PROGRAM ANALYSIS AND

9 EVALUATION.—There shall be a Director of Program 

10 Analysis and Evaluation, who—

11 ‘‘(A) shall be a principal staff assistant to 

12 the Chief Financial Officer of the Department 

13 for program analysis and evaluation; and 

14 ‘‘(B) shall report to an official no lower 

15 than the Chief Financial Officer. 

16 ‘‘(4) REORGANIZATION.—

17 ‘‘(A) IN GENERAL.—The Secretary may al18 locate or reallocate the functions of the Office, 

19 or discontinue the Office, in accordance with 

20 section 872(a). 

21 ‘‘(B) EXEMPTION FROM LIMITATIONS.—

22 Section 872(b) shall not apply to any action by 

23 the Secretary under this paragraph.’’. 
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1 SEC. 7. NOTIFICATION REGARDING TRANSFER OR RE2 PROGRAMMING OF FUNDS FOR DEPARTMENT 

3 OF HOMELAND SECURITY. 

4 Section 702 of the Homeland Security Act of 2002 

5 (6 U.S.C. 342) is further amended by adding at end the 

6 following: 

7 ‘‘(c) NOTIFICATION REGARDING TRANSFER OR RE8 PROGRAMMING OF FUNDS.—In any case in which appro9 priations available to the Department or any officer of the 

10 Department are transferred or reprogrammed and notice 

11 of such transfer or reprogramming is submitted to the 

12 Congress (including any officer, office, or Committee of 

13 the Congress), the Chief Financial Officer of the Depart14 ment shall simultaneously submit such notice to the Select 

15 Committee on Homeland Security (or any successor to the 

16 jurisdiction of that committee) and the Committee on Gov17 ernment Reform of the House of Representatives, and to 

18 the Committee on Governmental Affairs of the Senate.’’.

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