I 
113TH CONGRESS 
2D SESSION 
H. R. 4678 
To establish the Federal Accounting Standards Advisory Board as an inde-
pendent establishment to develop Federal financial accounting concepts 
and standards and provide guidance to users of Federal financial infor-
mation, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 20, 2014 
Mr. RENACCI (for himself, Mr. CARNEY, Mr. OWENS, Mr. KELLY of Pennsyl-
vania, Mr. JOYCE, Mr. CAMPBELL, Mr. BUCSHON, Mr. WEBSTER of Flor-
ida, Mr. RIBBLE, Mr. KILMER, Mr. COOPER, Mr. CONAWAY, Mr. STIV-
ERS, Mr. DELANEY, and Mr. WELCH) introduced the following bill; which 
was referred to the Committee on Oversight and Government Reform, 
and in addition to the Committee on Ways and Means, for a period to 
be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To establish the Federal Accounting Standards Advisory 
Board as an independent establishment to develop Fed-
eral financial accounting concepts and standards and 
provide guidance to users of Federal financial informa-
tion, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Federal Financial 
Statement Transparency Act of 2014’’. 
SEC. 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’’). 
SEC. 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 Sec-
retary of the Treasury (in this Act referred to as the 
‘‘Secretary’’), who may not participate in any votes 
held pursuant to section 4(c)(1). 
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(4) Seven members shall be appointed from the 
general financial community, the accounting and au-
diting community, or academia by an appointment 
panel consistent with the requirements of subsection 
(d). 
(b) REQUIREMENTS
FOR
NON-FEDERAL
MEM-
BERS.—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 ap-
pointed pursuant to subsection (a)(4) shall serve for 
a term not to exceed 5 years and that, upon ap-
proval of an appointment panel described in sub-
section (d), may be renewed for an additional term 
not to exceed 5 years. 
(d) APPOINTMENT PANEL.— 
(1) INITIAL
APPOINTMENT
PANEL
MEMBER-
SHIP.—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: 
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(A) The member appointed by the Comp-
troller General pursuant to subsection (a)(1), 
who shall serve as chair of the initial appoint-
ment panel. 
(B) The members appointed by the Direc-
tor and the Secretary, respectively, pursuant to 
paragraphs (2) and (3) of subsection (a). 
(C) One representative from the Financial 
Accounting Foundation (or a successor organi-
zation). 
(D) Two representatives from an organiza-
tion that nationally represents the interests of 
the certified public accountant profession by— 
(i) serving as an advocate before legis-
lative and regulatory entities, public inter-
est organizations, and professional organi-
zations; 
(ii) developing standards for audits of 
nonpublic entities and guidelines for serv-
ices of certified public accountants; 
(iii) providing professional tools and 
training to certified public accountants; 
and 
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(iv) monitoring and enforcing compli-
ance with technical and ethical standards 
for certified public accountants. 
(2) DUTIES OF APPOINTMENT PANEL.—The ap-
pointment 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 de-
scribed in paragraph (2). 
(4) SELECTION OF CHAIR OF SUBSEQUENT AP-
POINTMENT 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 con-
vene an appointment panel before the expiration of 
the term of the Board members appointed pursuant 
to subsection (a)(4). 
SEC. 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 
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executive agencies and the needs of users of Federal finan-
cial 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 Fed-
eral financial accounting concepts or standards de-
veloped under subsection (a) that receive a favorable 
vote by at least 2⁄3 of the Board members (except as 
provided in section 3(a)(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 Di-
rector or the Comptroller General disapproves 
of the concept or standard described in para-
graph (1), the Director or the Comptroller Gen-
eral shall, not later than 90 days after receiving 
such concept or standard, reject such concept 
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or standard and submit such concept or stand-
ard 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 sub-
mit to Congress and the organization described 
in section 3(d)(1)(D) a report, which shall be 
made available to the public, describing the re-
jected 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 pur-
suant to subsection (c)(2)(A), the Secretary 
shall submit, along with the annual report sub-
mitted pursuant to section 331(e)(1) of title 31, 
United States Code, a description of any re-
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jected concept or standard and the basis for the 
rejection. 
(B) EXCEPTION
FOR
IMMATERIAL
DEVI-
ATIONS.—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) 
of title 31, United States Code. 
(d) GAO AUDIT.—If, in conducting an audit of the 
annual report submitted by the Secretary pursuant to sec-
tion 331(e)(1) of title 31, United States Code, the Comp-
troller General finds a material deviation from generally 
accepted accounting principles in such report, the Sec-
retary shall submit to the Comptroller General an expla-
nation for such deviation not later than 30 days after noti-
fication of such deviation. 
SEC. 5. FASAB OPERATIONS FUND. 
(a) ESTABLISHMENT.—The Secretary of the Treas-
ury shall establish a fund, to be available without fiscal 
year limitation, to provide funds to the Board for the pur-
pose of carrying out its duties under this Act. 
(b) AMOUNT.—The Board shall determine the annual 
cost of carrying out its duties. 
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(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 of title 
31, United States Code, in an annual aggregate amount 
equal to the amount specified in subsection (b), and de-
posit such amount into the fund. 
(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 appro-
priation, beginning on the first day of the fiscal year be-
ginning after the fiscal year described in subsection (c). 
SEC. 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. 
Æ 
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