4334 Federal Register / Vol. 74, No. 14 / Friday, January 23, 2009 / Notices 

DEPARTMENT OF LABOR 

Office of the Secretary 

[Secretary’s Order 04–2009] 

Authority and Responsibilities for 

Implementation of the Chief Financial 

Officers Act of 1990 and Related 

Legislation 

1. Purpose 

To delegate authority and assign 

responsibilities for implementation of 

the Chief Financial Officers Act of 1990 

and related legislation. 

2. Authorities and Directives Affected 

A. Authorities 

1. Chief Financial Officers Act of 

1990, as amended (Pub. L. 101–576). 

2. Federal Managers’ Financial 

Integrity Act of 1982 (Pub. L. 97–255). 

3. Government Performance and 

Results Act of 1993 (Pub. L. 103–62). 

4. Government Management Reform 

Act of 1994 (Pub. L. 103–356). 

5. Clinger-Cohen Act of 1996 (Pub. L. 

104–106). 

6. Federal Financial Management 

Improvement Act of 1996 (Pub. L. 104– 

208). 

7. Reports Consolidation Act of 2000 

(Pub. L. 106–531). 

8. Improper Payments Information 

Act of 2002 (Pub. L. 107–300). 

9. Accountability of Tax Dollars Act 

of 2002 (Pub. L. 107–289). 

10. 29 U.S.C. 563, 563a, and 564, 

authorizing the Working Capital Fund at 

the Department of Labor. 

11. Office of Management and Budget 

(OMB) Circular No. A–11, Preparation, 

Submission and Execution of the Budget 

(June 26, 2008). 

12. OMB Circular No. A–123, 

Management’s Responsibility for 

Internal Control (December 21, 2004). 

13. OMB Circular No. A–127, 

Financial Management Systems (July 23, 

1993). 

14. OMB Circular No. A–134, 

Financial Accounting Principles and 

Standards (May 20, 1993). 

15. OMB Circular No. A–136, 

Financial Reporting Requirements (June 

3, 2008). 

B. Directives Affected 

1. Secretary’s Orders 01–1992 and 01– 

1997 are superseded and canceled. 

2. This Order does not affect 

Secretary’s Order 14–2006, Internal 

Control Program (June 20, 2006). 

3. All references to the Office of the 

Comptroller, Office of the Assistant 

Secretary for Administration and 

Management (OASAM), in Secretary’s 

Orders, DLMS Chapters, and other 

Departmental issuances shall be 

considered to refer to the Office of the 

Chief Financial Officer. 

4. Directives inconsistent with this 

Order are rescinded to the extent of the 

inconsistency. 

3. Background and Organization 

The Chief Financial Officers Act of 

1990, as part of overall Federal financial 

management reforms, mandated the 

establishment of a Chief Financial 

Officer (CFO) and Deputy Chief 

Financial Officer in all Cabinet-level 

Federal agencies, including the 

Department of Labor (DOL). The CFO is 

appointed by the President and 

confirmed by the Senate, and by statute 

reports directly to the Secretary. The 

Deputy CFO is a career-reserved 

position in the Senior Executive Service 

who reports directly to the CFO. The 

CFO heads the Office of the Chief 

Financial Officer (OCFO), which has 

such component organization units, 

staffing, and funding as are authorized. 

4. Delegation of Authority 

As specified in the CFO Act, at 31 

U.S.C. 902, and as detailed in Paragraph 

5 of this Order, the Chief Financial 

Officer is delegated authority to oversee 

the financial management functions of 

the Department. 

5. Assignment of Responsibilities to the 

Chief Financial Officer 

A. As required by the CFO Act, the 

CFO shall— 

1. Report directly to the Secretary and 

Deputy Secretary regarding financial 

management matters; 

2. Oversee all financial management 

activities relating to the programs and 

operations of the Department; 

3. Develop and maintain an integrated 

Departmental accounting and financial 

management system, including financial 

reporting and internal controls, which— 

a. Complies with applicable 

accounting principles, standards, and 

requirements, and internal control 

standards; 

b. Complies with such policies and 

requirements as may be prescribed by 

the Director of the Office of 

Management and Budget; 

c. Complies with any other 

requirements applicable to such 

systems; and 

d. Provides for— 

(1) Complete, reliable, consistent, and 

timely information which is prepared 

on a uniform basis and which is 

responsive to the financial information 

needs of Departmental management; 

(2) The development and reporting of 

cost information; 

(3) The integration of accounting and 

budgeting information; and 

(4) The systematic measurement of 

financial performance; 

4. Make recommendations to the 

Secretary regarding the selection of the 

Deputy Chief Financial Officer of the 

Department, who will have the 

qualifications outlined in the CFO Act 

at 31 U.S.C. 903; 

5. Direct, manage, and provide policy 

guidance and oversight of Departmental 

financial management personnel, 

activities, and operations, including— 

a. The preparation and annual 

revision of a Departmental plan to— 

(1) Implement the 5-year financial 

management plan prepared by the 

Director of the Office of Management 

and Budget under 31 U.S.C. 3512(a)(3); 

and 

(2) Comply with the requirements for 

financial statements and audits 

established under 31 U.S.C. 3515, 

3521(e), and 3521(f); 

b. The development of Departmental 

financial management budgets; 

c. The recruitment, selection, and 

training of personnel to carry out 

Departmental financial management 

functions; 

d. The approval and management of 

Departmental financial management 

systems design or enhancement 

projects; 

e. The implementation of 

Departmental asset management 

systems, including systems for cash 

management, credit management, debt 

collection, and property and inventory 

management and control; 

f. Prepare and transmit an annual 

report to the Secretary and the Director 

of the Office of Management and 

Budget, consistent with the 

requirements of OMB Circular No. A– 

136, which shall include— 

(1) A description and analysis of the 

status of financial management of the 

Department; 

(2) The annual financial statements 

prepared under 31 U.S.C. 3515; 

(3) The audit report transmitted to the 

Secretary under 31 U.S.C. 3521(f); 

(4) A summary of the reports on 

internal accounting and administrative 

control systems submitted to the 

President and the Congress under the 

amendments made by the Federal 

Managers’ Financial Integrity Act of 

1982 (Pub. L. 97–255); and 

(5) Other information the Secretary 

considers appropriate to fully inform 

the President and the Congress 

concerning the financial management of 

the Department; 

6. Monitor the financial execution of 

the budget of the Department in relation 

to actual expenditures in concert with 

the responsibilities of the Assistant 

Secretary for Administration and 


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Management (ASAM) outlined in 

Paragraph 6(B), and prepare and submit 

to the Secretary timely financial 

performance reports; and 

7. Review, on a biennial basis, the 

fees, royalties, rents, and other charges 

imposed by the Department for services 

and things of value it provides, and 

make recommendations on revising 

those charges to reflect costs incurred by 

it in providing those services and things 

of value. 

B. The CFO will have the following 

additional responsibilities: 

1. Policy Duties. 

a. Develop and promulgate accounting 

and financial management policies for 

DOL and its component agencies, and 

review and approve component agency 

financial policies, procedures, and 

structures for adherence to the policies 

of DOL and other Federal agencies. 

b. Ensure compliance throughout 

DOL, and its component agencies, with 

applicable accounting standards and 

principles, and financial information 

and system functional standards, 

including the standards promulgated by 

the Federal Accounting Systems 

Advisory Board, the Federal 

Government’s Standard General Ledger, 

the core requirements for financial 

systems, and the financial statement 

form and content guidance issued by 

OMB. 

c. Exercise overall responsibility for 

the Department’s compliance with 

FMFIA and for the Department’s fiscal 

integrity; serve on the Department’s 

Internal Control Board; report directly to 

the Secretary on internal control 

matters; carry out the responsibilities 

specified in Secretary’s Order 14–2006, 

Internal Control Program, for the CFO 

and the Internal Control Principal for 

financial systems and mixed systems 

that are significantly financial. 

d. Ensure adequate controls are in 

place over asset management, including 

cash management operations, credit 

management and debt collection 

operations, and real property, 

equipment, and inventories. 

e. Participate with Departmental 

Agency heads and other staff in the 

policy review of proposed legislative 

and program initiatives from a financial 

management perspective. 

f. Ensure that component agencies 

gather timely and accurate financial 

information to manage and oversee 

major procurements. 

g. Develop policies and procedures for 

investigating potential violations of the 

Anti-Deficiency Act; working under 

policies established by the CFO, and in 

cooperation with the ASAM and the 

Solicitor of Labor, notify the Secretary 

of Anti-Deficiency Act violations, and 

transmit agency reports of AntiDeficiency Act violations to the 

Secretary for transmittal to the 

President, Congress, OMB, and the 

Government Accountability Office, as 

applicable. 

2. Budget Duties. 

a. Monitor the financial execution of 

the budget of the Department in relation 

to actual expenditures, and prepare and 

submit to the Secretary timely financial 

performance reports. 

b. Provide leadership, direction, 

coordination, and related services 

concerning budget execution for the 

Department and its component agencies. 

c. Participate with Departmental 

Agency heads and other staff at a policy 

and decision-making level in the 

Departmental budget execution review 

process. 

d. Review the budget requests for all 

Departmental and component agency 

financial management functions; 

recommend to the Secretary their 

modification as necessary to ensure that 

appropriate resources are requested to 

effectively and efficiently perform 

necessary financial and related 

functions. 

e. Promote the development and 

reporting of cost information in support 

of the systematic measurement of 

performance in appropriate budget 

documents. 

f. Manage and oversee the 

Department’s administrative control of 

funds from the time funds are allotted 

to the DOL agencies. 

3. Financial Systems Duties. 

a. Review and approve the design and 

operation of component agency 

financial, accounting, and asset systems, 

specifically including the financial 

aspects of grant management systems, 

debt collection systems, and other 

systems defined by FFMIA. 

b. Provide oversight of, and issue core 

requirements and standards related to, 

component agency financial systems, 

activities, and operations, including 

preparation and revision of agency 

financial management plans and 

financial performance reports. 

c. In coordination with the ASAM, 

establish policies, procedures, and other 

guidelines to prescribe the form, 

content, and frequency of accounting 

information to be reported from 

component agency systems to meet DOL 

and central Federal agency information 

requirements. 

d. Participate in the review and 

approval process of information systems 

that provide, at least in part, financial 

and/or program performance data. 

e. In consultation with the Chief 

Information Officer (CIO), ensure that 

the accounting, financial, asset 

management, and other information 

systems of the Department are designed, 

developed, maintained, and used 

effectively to provide financial or 

program performance data for financial 

statements of the Department. 

f. Ensure, in consultation with the 

CIO, that program information systems 

provide financial, budget, and 

programmatic data on a reliable, 

consistent and timely basis to agency 

financial management systems. 

g. Recommend to the Secretary any 

information resource management and 

budget decisions affecting financial 

management processes, systems, and 

operations. 

h. Consult with the CIO to ensure 

sufficient oversight and security exist to 

maintain the integrity of information 

systems that affect the preparation and 

presentation of the Department’s 

financial statements. 

4. External Reporting Duties. 

a. Prepare the financial management 

components of the annual Performance 

and Accountability Report (PAR) for 

transmittal to the Secretary and the 

Director of OMB. The PAR will meet the 

requirements of OMB Circular No. 

A–136, and shall include, in part— 

(1) A description and analysis of the 

status of financial management of the 

Department; 

(2) The Department’s annual financial 

statements and accounting reports, 

including, where appropriate, pertinent 

performance measures; 

(3) The audit report transmitted to the 

Secretary; 

(4) The annual report required to be 

submitted to the President and the 

Congress under the FMFIA; 

(5) The report required by the 

Improper Payments Information Act; 

(6) The Management Assurance 

Statement required by OMB Circular 

No. A–123; 

(7) The annual financial management 

report required by the Chief Financial 

Officers Act; and 

(8) Other information the Secretary 

considers appropriate to fully inform 

the President and the Congress 

concerning the financial management of 

the Department. 

b. Prepare the semi-annual audit 

resolution reports required by the 

Amendments to the Inspector General 

Act. 

c. Coordinate and manage financial 

management reporting requirements as 

may be imposed by OMB, the 

Department of the Treasury, other 

central Federal agencies, and Congress. 

d. In coordination with the ASAM 

and Agency heads, develop reporting 

mechanisms that integrate program 

performance and financial data, and 


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facilitate the display of such data in 

budget documents, financial statements, 

and other pertinent communications. 

e. In consultation with the CIO, 

ensure financial statements support— 

(1) Assessments and revisions of 

mission-related and administrative 

processes of the Department; and 

(2) Measurement of the performance 

of investments made by the Department 

in information systems. 

5. Financial Management Personnel 

Duties. 

a. Provide oversight of, and issue core 

requirements and standards related to, 

component agency financial 

management personnel. 

b. Provide policy advice and 

assistance to DOL executives, including 

component agency heads, on all 

personnel matters affecting financial 

management personnel throughout the 

DOL and its component agencies, and 

on budget and staffing levels for 

component agency financial functions. 

c. Review all proposed personnel 

selections, skill requirements, 

performance standards, and position 

descriptions for financial management 

personnel at the GS–15 level and above 

throughout the DOL and its component 

agencies; discuss any problems with the 

component agency head and appeal any 

unresolved issue to the Secretary 

through the Deputy Secretary. 

d. Manage a comprehensive training 

and development program for budget 

analysts, accountants, financial 

managers, and financial technicians; 

ensure that staff skills are 

commensurate with requirements; and 

implement a Continuing Professional 

Education (or similar) program. 

6. Financial Programmatic Duties. 

a. Manage Departmental programs on 

audit resolution, travel management, 

cash management, debt collection, asset 

management, and financial management 

activities. 

b. Manage centralized Departmental 

accounting functions for fund and cost 

accounting, capitalized assets 

accounting, grant accounting, DOL 

employee compensation and benefits, 

and voucher, commercial bill, and other 

payments. 

c. Exercise Departmental approval 

authority over interagency transactions 

involving component agency program 

funds, such as for investment or 

transfer. 

d. Establish and chair a CFO Advisory 

Council within DOL to provide a forum 

for component organizations to advise 

and support the CFO in matters 

affecting the financial community. The 

Advisory Council will facilitate the 

dissemination of financial policies 

established by the CFO to component 

agencies. 

e. Maintain and operate a Working 

Capital Fund (WCF) and related 

accounts offering, as appropriate and 

advantageous to the Department, a 

comprehensive program of centralized 

services funded by customer agency 

reimbursements in advance that— 

(1) Ensures customer agencies access 

to meaningful information on the full 

costs of those centralized services, 

conditions for usage, and the cost 

allocation formulas employed in the 

lawful distribution of annual charges 

against the respective agency 

appropriation accounts; and 

(2) Ensures, through the creation and 

regular convening of a Working Capital 

Fund Committee, the opportunities for 

meaningful and informed customer 

agency participation or representation 

in reviewing WCF activities, costs, and 

charges, and in recommending changes 

or improvements to the CFO. 

(3) Is operated on the basis of agency 

reimbursement agreements between 

customers and service providers and 

timely cost assessments and related 

adjustments for services provided or 

offered. 

f. Provide technical reviews of finance 

offices in the DOL and its component 

agencies, and oversee component 

agency financial systems as defined in 

the FFMIA. 

g. Appraise centralized and 

decentralized operations and 

organizations to determine more 

effective and cost-efficient methods of 

performing required financial functions. 

h. Serve as the Department’s Improper 

Payment Reduction Coordinator, with 

responsibilities including, but not 

limited to: 

(1) Coordinating the establishment of 

policies and procedures for assessing 

Departmental, component agency, and 

program risks of improper payments; 

(2) Coordinating Departmental, 

component agency, and program 

management actions to reduce improper 

payments. These duties include: 

a. Assigning responsibility for specific 

areas of improper payment-related 

activities to appropriate component 

agency, program, or activity officials; 

b. Coordinating the development of 

detailed action plans to determine the 

nature and extent of possible improper 

payments for all DOL programs and 

activities spending Federal funds; 

c. Assisting component agency and 

program management in identifying 

cost-effective control activities to 

address identified risk areas; 

d. Assisting component agency and 

program management in establishing 

improper payment reduction goals or 

targets and measuring performance 

against those goals to determine 

progress made and areas needing 

additional action; 

e. Developing procedures for working 

with OMB and the Congress to address 

barriers encountered that inhibit actions 

to reduce improper payments; and 

f. Coordinating periodic reporting, 

through publicly available documents, 

to the Secretary, OMB, and the Congress 

on the progress made in achieving 

improper payment reduction targets and 

future action plans for controlling 

improper payments; and 

(3) Providing a quarterly status report 

to the Deputy Secretary on 

Departmental activities to identify and 

reduce improper payments. 

C. In addition to the authority 

otherwise provided in this Order, the 

CFO— 

1. Subject to Paragraph (7)(B), shall 

have access to all records, reports, 

audits, reviews, documents, papers, 

recommendations, or other material 

which are the property of the 

Department or which are available to 

the Department, and which relate to 

programs and operations with respect to 

which the CFO has responsibilities; 

2. May request such information or 

assistance as may be necessary for 

carrying out the duties and 

responsibilities provided by this Order 

from any Federal, State, or local 

governmental entity; and 

3. To the extent and in such amounts 

as may be provided in advance by 

appropriations Acts, may— 

a. Enter into contracts and other 

arrangements with public agencies and 

with private persons for the preparation 

of financial statements, studies, 

analyses, and other services; and 

b. Make such payments as may be 

necessary to carry out the provisions of 

this Order. 

6. Assignment of Responsibilities to 

Other Individuals 

A. Unless modified by this Order, the 

heads of component Agencies retain 

previously delegated responsibilities 

and authority. In the context of the 

Department’s financial management 

program, they are specifically charged 

with the responsibility to— 

1. In consultation with the CFO and 

the CIO, define program information 

needs and develop strategies, systems, 

and capabilities to meet those needs. 

2. Perform transaction and operational 

level financial functions in accordance 

with policies, requirements, and 

procedures established by the CFO. 

3. Direct financial staffs and functions 

in their respective component agencies 


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consistent with those policies and 

procedures established by the CFO. 

4. Facilitate the CFO’s oversight 

responsibilities with respect to financial 

operations and component agency 

program financial systems by providing 

and maintaining system documentation, 

audit trails, summary or detailed 

transaction data, and such other 

information as the CFO may require. 

5. Fully solicit, consider, and 

cooperate with the CFO in the review of 

proposed appointment, promotion, and 

other personnel actions affecting 

financial management staff at the GS–15 

level and above. 

6. Manage grants, procurement, 

property, debt management/accounts 

receivable, and other management 

systems for their respective component 

agencies, in a manner consistent with 

the CFO’s responsibilities prescribed in 

this Order. 

B. The ASAM’s budget execution 

responsibilities related to the 

implementation of the CFO Act are— 

1. Submitting requests to OMB for 

apportionments and reapportionments. 

2. Working under policies established 

by the CFO, administering allotments 

and interagency transactions, including 

reprogramming and transfer requests 

and notifications. 

3. Advising the CFO regarding 

management and oversight of the 

Department’s administrative control of 

funds, with emphasis on the 

apportionment and allotment processes. 

C. The Inspector General— 

1. Retains full responsibility for 

previously delegated budget and 

financial management activities 

pertaining to his or her own office, but 

will participate with the CFO in 

integrating such delegated assignments 

with the overall financial management 

program of the Department. 

2. Will participate, where appropriate, 

in joint reviews with the CFO of 

selected financial management 

functions, operations, and systems. 

3. Will participate with the CFO in 

the resolution of audit issues, findings, 

and recommendations, including those 

involved in the annual financial 

statements, consistent with its statutory 

responsibilities for managing an audit 

program. 

D. The Solicitor of Labor is 

responsible for providing legal advice 

and assistance to the Secretary, Deputy 

Secretary, CFO, Working Capital Fund 

Committee established pursuant to 

paragraph 5 above, and all other 

Department of Labor officials who are 

assigned responsibilities for 

implementation of this Order, except as 

provided in Secretary’s Order 4–2006 

with respect to the Office of Inspector 

General. 

7. Communications 

In consonance with the assignments 

of responsibility above, the Office of the 

Chief Financial Officer shall ensure that 

the Agency Administrative Officers are 

apprised of communications to 

component agency financial staff. 

Similarly, component agencies shall 

keep the Chief Financial Officer 

apprised of directives and other 

communications affecting their financial 

staff. 

8. Reservations of Authority 

A. Unless otherwise stated in this 

Order, the submission of reports and 

recommendations to the President and 

the Congress concerning the 

administration of statutory or 

administrative provisions is reserved to 

the Secretary. 

B. Except as provided in Paragraph 

(5)(D)(1), this Order does not provide to 

the CFO any access greater than 

permitted under any other law to 

records, reports, audits, reviews, 

documents, papers, recommendations, 

or other material of the Office of 

Inspector General. 

9. Redelegations and Transfers of 

Authority 

Unless provided otherwise in this or 

another Secretary’s Order, the authority 

delegated in this Order may be 

redelegated or transferred, as permitted 

by law or regulation. 

10. Effective Date 

This Order is effective immediately. 

Dated: January 15, 2009. 

Elaine L. Chao, 

Secretary of Labor. 

[FR Doc. E9–1440 Filed 1–22–09; 8:45 am] 

BILLING CODE 4510–23–P 


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