I 

112TH CONGRESS 

1ST SESSION H. R. 3332 

To require each agency to prepare and make public quarterly and annual 

consolidated financial statements using the fair-value accrual accounting 

method, to require the Congressional Budget Office to use currentyear spending as the baseline for estimating future mandatory and discretionary changes, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 3, 2011 

Mr. DOLD (for himself and Mr. QUIGLEY) introduced the following bill; which 

was referred to the Committee on the Budget, and in addition to the 

Committee on Oversight and Government Reform, 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 require each agency to prepare and make public quarterly 

and annual consolidated financial statements using the 

fair-value accrual accounting method, to require the Congressional Budget Office to use current-year spending 

as the baseline for estimating future mandatory and 

discretionary changes, 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 ‘‘Truth in Government 

3 Accounting Act of 2011’’. 

4 SEC. 2. FINANCIAL STATEMENTS. 

5 (a) IN GENERAL.—With respect to a fiscal year, the 

6 head of each agency shall prepare and submit to the 

7 Comptroller General a quarterly consolidated financial 

8 statement for each of the first three quarters of such fiscal 

9 year and an annual consolidated financial statement for 

10 such fiscal year as a whole for such agency based on the 

11 fair-value accrual accounting method. Such statement 

12 shall include for such agency— 

13 (1) all future certain liabilities, including all 

14 contingent liabilities that can be reasonably esti15 mated; 

16 (2) all liabilities that may require future taxes 

17 for present liabilities; and 

18 (3) other expenditures and liabilities. 

19 (b) SUBMISSION DEADLINES.— 

20 (1) QUARTERLY FINANCIAL STATEMENTS.— 

21 Each quarterly financial statement required by sub22 section (a) shall be submitted not later than 90 days 

23 after the end of the fiscal quarter. 

24 (2) ANNUAL FINANCIAL STATEMENTS.—Each 

25 annual financial statement required by subsection 


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1 (a) shall be submitted not later than 180 days after 

2 the end of the fiscal year. 

3 (c) GENERALLY ACCEPTED ACCOUNTING PRIN4 CIPLES AND FOOTNOTE DISCLOSURES.—Each statement 

5 described under subsection (a) shall be prepared in accord6 ance with generally accepted accounting principles applied 

7 on a consistent basis and include footnote disclosures. 

8 (d) WEB SITE.—Not later than 10 days after the 

9 submission of any financial statements to the Comptroller 

10 General under subsection (a), the Comptroller General 

11 shall publish all such statements on a single, searchable, 

12 downloadable, up-to-date Web site accessible by the public, 

13 that allows a user to search accounts and associated activi14 ties by an agency and by each office, bureau, and activity 

15 of an agency. 

16 (e) AGENCY DEFINED.—In this section, the term 

17 ‘‘agency’’ has the meaning given that term in section 101 

18 of title 31, United States Code. 

19 (f) AUDITING OF FINANCIAL STATEMENTS.—Sub20 chapter II of chapter 7 of title 31, United States Code, 

21 is amended by adding at the end the following new section: 

22 ‘‘§ 721. Audit of agency consolidated financial state23 ments 

24 ‘‘(a) IN GENERAL.—Each year, the Comptroller Gen25 eral shall, in accordance with generally accepted auditing 


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1 standards, audit the consolidated financial statements pre2 pared by each agency for each fiscal year under section 

3 2(a) of the Truth in Government Accounting Act of 2011. 

4 ‘‘(b) RECORDS AND PROPERTY.—To carry out this 

5 section, the head of each agency shall provide the Comp6 troller General with all records and property of or used 

7 by each such agency in the preparation of the consolidated 

8 financial statements under section 2(a) of the Truth in 

9 Government Accounting Act of 2011 that the Comptroller 

10 General determines to be statistically meaningful. The 

11 Comptroller General shall give the head of each agency 

12 a current list of officers and employees to whom, with 

13 proper identification, records and property may be made 

14 available, and who may make notes or copies necessary 

15 to carry out the audit. The head of each agency shall pro16 vide the Comptroller General with suitable facilities to 

17 carry out the audit.’’. 

18 SEC. 3. PREPARATION OF THE BUDGET. 

19 (a) THE PRESIDENT.—Section 1105(a) of title 31, 

20 United States Code, is amended— 

21 (1) by redesignating the second paragraph (37) 

22 as paragraph (39); and 

23 (2) by adding at the end the following new 

24 paragraph: 


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1 ‘‘(40) A summary of how the use of accrual ac2 counting procedures would affect the estimated ex3 penditures, appropriations, and receipts of the Gov4 ernment in the fiscal year for which the budget is 

5 submitted.’’. 

6 (b) OFFICE OF MANAGEMENT AND BUDGET.—The 

7 Director of the Office of Management and Budget shall 

8 prepare all of the budgets submitted to the President ac9 cording to both accrual accounting procedures and the 

10 cash basis accounting method. 

11 SEC. 4. ZERO-BASELINE BUDGETING. 

12 (a) CHANGES IN THE BASELINE.—(1) Section 257(c) 

13 of the Balanced Budget and Emergency Deficit Control 

14 Act of 1985 is amended— 

15 (A) in the second sentence of paragraph (1), by 

16 striking everything that follows ‘‘current year,’’ and 

17 inserting ‘‘excluding resources designated as an 

18 emergency requirement and any resources provided 

19 in supplemental appropriation laws.’’; 

20 (B) by striking paragraphs (2), (3), (4), and 

21 (5); 

22 (C) by redesignating paragraph (6) as para23 graph (2); and 

24 (D) by inserting after paragraph (2) the fol25 lowing new paragraph: 


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1 ‘‘(3) NO ADJUSTMENT FOR INFLATION.—No 

2 adjustment shall be made for inflation or for any 

3 other factor.’’. 

4 (2) Section 257(b) of the Balanced Budget and 

5 Emergency Deficit Control Act of 1985 is amended by 

6 adding at the end the following new paragraph: 

7 ‘‘(4) NO ADJUSTMENT FOR INFLATION.—No 

8 adjustment shall be made for inflation or for any 

9 other factor for any direct spending program.’’. 

10 (b) EXTENSION.—The second sentence of section 

11 275(b) of the Balanced Budget and Emergency Deficit 

12 Control Act of 1985 is amended by inserting ‘‘other than 

13 subsections (a) through (d) of section 257’’ after ‘‘title’’. 

14 SEC. 5. EFFECTIVE DATE. 

15 This Act, and the amendments made by this Act, 

16 shall take effect on October 1, 2012. 

Æ 


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