Federal Financial Statement Transparency Act of 2014

To establish the Federal Accounting Standards Advisory Board as an independent establishment to develop Federal financial accounting concepts and standards and provide guidance to users of Federal financial information, and for other purposes. 1. Short title This Act may be cited as the Federal Financial Statement Transparency Act of 2014 2. Federal Accounting Standards Advisory Board There is established in the executive branch of the Government an independent establishment to be known as the Federal Accounting Standards Advisory Board (in this Act referred to as the Board 3. Membership (a) Number and appointment The Board shall be composed of 10 members appointed as follows: (1) One member shall be an employee of the Government Accountability Office, appointed by the Comptroller General of the United States (in this Act referred to as the Comptroller General (2) One member shall be an employee of the Office of Management and Budget, appointed by the Director of the Office of Management and Budget (in this Act referred to as the Director (3) One member shall be an employee of the Department of the Treasury, appointed by the Secretary of the Treasury (in this Act referred to as the Secretary (4) Seven members shall be appointed from the general financial community, the accounting and auditing community, or academia by an appointment panel consistent with the requirements of subsection (d). (b) Requirements for non-Federal members Members appointed pursuant to subsection (a)(4) may not be selected from among Federal employees. (c) Terms (1) Federal members A member appointed pursuant to paragraph (1), (2), or (3) of subsection (a) shall serve on the Board at the discretion of the head of each agency that appoints such a member. (2) Non-Federal members Members appointed pursuant to subsection (a)(4) shall serve for a term not to exceed 5 years and that, upon approval of an appointment panel described in subsection (d), may be renewed for an additional term not to exceed 5 years. (d) Appointment panel (1) Initial appointment panel membership Upon appointment, the member appointed by the Comptroller General pursuant to subsection (a)(1) shall convene an appointment panel consisting of not more than 6 individuals as follows: (A) The member appointed by the Comptroller General pursuant to subsection (a)(1), who shall serve as chair of the initial appointment panel. (B) The members appointed by the Director and the Secretary, respectively, pursuant to paragraphs (2) and (3) of subsection (a). (C) One representative from the Financial Accounting Foundation (or a successor organization). (D) Two representatives from an organization that nationally represents the interests of the certified public accountant profession by— (i) serving as an advocate before legislative and regulatory entities, public interest organizations, and professional organizations; (ii) developing standards for audits of nonpublic entities and guidelines for services of certified public accountants; (iii) providing professional tools and training to certified public accountants; and (iv) monitoring and enforcing compliance with technical and ethical standards for certified public accountants. (2) Duties of appointment panel The appointment panel established under this subsection shall appoint members pursuant to subsection (a)(4) to serve on the Board. (3) Expiration The chair shall dissolve the appointment panel upon completion of the duties described in paragraph (2). (4) Selection of chair of subsequent appointment panel The Secretary, the Director, and the Comptroller General shall select one member appointed pursuant to subsection (a)(4) to serve as the chair of the Board and the chair of a subsequent appointment panel. (5) Subsequent appointment panel The chair selected pursuant to paragraph (4) shall convene an appointment panel before the expiration of the term of the Board members appointed pursuant to subsection (a)(4). 4. Duties; concepts and standards (a) Duties of FASAB The Board shall develop Federal financial accounting concepts or standards and give consideration to the budgetary information needs of executive agencies and the needs of users of Federal financial information. (b) Restriction on duties The Board may not set or propose budget concepts, standards, or principles. (c) Concepts and standards (1) FASAB vote The Board shall submit to the Director and the Comptroller General any Federal financial accounting concepts or standards developed under subsection (a) that receive a favorable vote by at least 2/3 (2) OMB and GAO review (A) Automatic acceptance Except as provided in subparagraph (B), the concept or standard described in paragraph (1) shall be submitted to the Secretary at the end of the 90-day period beginning on the date the Director and the Comptroller General receive the concept or standard. (B) Process for rejection If the Director or the Comptroller General disapproves of the concept or standard described in paragraph (1), the Director or the Comptroller General shall, not later than 90 days after receiving such concept or standard, reject such concept or standard and submit such concept or standard to the Board for reconsideration. (C) Report for rejection Not later than 5 days after submitting the concept or standard to the Board for reconsideration, the Director or the Comptroller General shall submit to Congress and the organization described in section 3(d)(1)(D) a report, which shall be made available to the public, describing the rejected concept or standard and the basis for the rejection. (3) FASAB publication At the end of the period described in paragraph (2)(A), the Board shall publish the concept or standard submitted to the Secretary pursuant to such paragraph in the Federal Register. (4) Treasury review (A) In general Except as provided in subparagraph (B), if the Secretary decides not to adopt a concept or standard submitted pursuant to subsection (c)(2)(A), the Secretary shall submit, along with the annual report submitted pursuant to section 331(e)(1) of title 31, United States Code, a description of any rejected concept or standard and the basis for the rejection. (B) Exception for immaterial deviations The requirements of subparagraph (A) do not apply if the Secretary determines that the application of the concept or standard would not have a material effect on the annual report submitted pursuant to section 331(e)(1) (d) GAO audit If, in conducting an audit of the annual report submitted by the Secretary pursuant to section 331(e)(1) of title 31, United States Code, the Comptroller General finds a material deviation from generally accepted accounting principles in such report, the Secretary shall submit to the Comptroller General an explanation for such deviation not later than 30 days after notification of such deviation. 5. FASAB operations fund (a) Establishment The Secretary of the Treasury shall establish a fund, to be available without fiscal year limitation, to provide funds to the Board for the purpose of carrying out its duties under this Act. (b) Amount The Board shall determine the annual cost of carrying out its duties. (c) Deposits Beginning on the first day of the first full fiscal year that begins after the date of enactment of this Act, the Secretary of the Treasury shall assess a fee on each sale of a security under chapter 31 (d) Use of funds Amounts in the fund may be used by the Board, for the purpose of carrying out the duties of the Board under this Act without further appropriation, beginning on the first day of the fiscal year beginning after the fiscal year described in subsection (c). 6. Effective date Sections 3 and 4 of this Act shall take effect on the date that amounts in the fund described in section 5 are transferred to the Board.

Summary: Federal Financial Statement Transparency Act of 2014 - Establishes in the executive branch an independent Federal Accounting Standards Advisory Board (FASAB) to develop federal financial accounting concepts or standards, giving consideration to the budgetary information needs of executive agencies and the needs of users of federal financial information. Directs the Secretary of the Treasury to establish a FASAB operations fund to enable the FASAB to carry out its duties. Requires the Secretary to assess a fee on each sale of a security for deposit into the fund.