(a) shall be submitted not later than 180 days after 
the end of the fiscal year. 
(c) GENERALLY
ACCEPTED
ACCOUNTING
PRIN-
CIPLES AND FOOTNOTE DISCLOSURES.—Each statement 
described under subsection (a) shall be prepared in accord-
ance with generally accepted accounting principles applied 
on a consistent basis and include footnote disclosures. 
(d) WEB SITE.—Not later than 10 days after the 
submission of any financial statements to the Comptroller 
General under subsection (a), the Comptroller General 
shall publish all such statements on a single, searchable, 
downloadable, up-to-date Web site accessible by the public, 
that allows a user to search accounts and associated activi-
ties by an agency and by each office, bureau, and activity 
of an agency. 
(e) AGENCY DEFINED.—In this section, the term 
‘‘agency’’ has the meaning given that term in section 101 
of title 31, United States Code. 
(f) AUDITING OF FINANCIAL STATEMENTS.—Sub-
chapter II of chapter 7 of title 31, United States Code, 
is amended by adding at the end the following new section: 
‘‘§ 721. Audit of agency consolidated financial state-
ments 
‘‘(a) IN GENERAL.—Each year, the Comptroller Gen-
eral shall, in accordance with generally accepted auditing 
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standards, audit the consolidated financial statements pre-
pared by each agency for each fiscal year under section 
2(a) of the Truth in Government Accounting Act of 2011. 
‘‘(b) RECORDS AND PROPERTY.—To carry out this 
section, the head of each agency shall provide the Comp-
troller General with all records and property of or used 
by each such agency in the preparation of the consolidated 
financial statements under section 2(a) of the Truth in 
Government Accounting Act of 2011 that the Comptroller 
General determines to be statistically meaningful. The 
Comptroller General shall give the head of each agency 
a current list of officers and employees to whom, with 
proper identification, records and property may be made 
available, and who may make notes or copies necessary 
to carry out the audit. The head of each agency shall pro-
vide the Comptroller General with suitable facilities to 
carry out the audit.’’. 
SEC. 3. PREPARATION OF THE BUDGET. 
(a) THE PRESIDENT.—Section 1105(a) of title 31, 
United States Code, is amended— 
(1) by redesignating the second paragraph (37) 
as paragraph (39); and 
(2) by adding at the end the following new 
paragraph: 
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‘‘(40) A summary of how the use of accrual ac-
counting procedures would affect the estimated ex-
penditures, appropriations, and receipts of the Gov-
ernment in the fiscal year for which the budget is 
submitted.’’. 
(b) OFFICE OF MANAGEMENT AND BUDGET.—The 
Director of the Office of Management and Budget shall 
prepare all of the budgets submitted to the President ac-
cording to both accrual accounting procedures and the 
cash basis accounting method. 
SEC. 4. ZERO-BASELINE BUDGETING. 
(a) CHANGES IN THE BASELINE.—(1) Section 257(c) 
of the Balanced Budget and Emergency Deficit Control 
Act of 1985 is amended— 
(A) in the second sentence of paragraph (1), by 
striking everything that follows ‘‘current year,’’ and 
inserting ‘‘excluding resources designated as an 
emergency requirement and any resources provided 
in supplemental appropriation laws.’’; 
(B) by striking paragraphs (2), (3), (4), and 
(5); 
(C) by redesignating paragraph (6) as para-
graph (2); and 
(D) by inserting after paragraph (2) the fol-
lowing new paragraph: 
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‘‘(3) NO
ADJUSTMENT
FOR
INFLATION.—No 
adjustment shall be made for inflation or for any 
other factor.’’. 
(2) Section 257(b) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 is amended by 
adding at the end the following new paragraph: 
‘‘(4) NO
ADJUSTMENT
FOR
INFLATION.—No 
adjustment shall be made for inflation or for any 
other factor for any direct spending program.’’. 
(b) EXTENSION.—The second sentence of section 
275(b) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 is amended by inserting ‘‘other than 
subsections (a) through (d) of section 257’’ after ‘‘title’’. 
SEC. 5. EFFECTIVE DATE. 
This Act, and the amendments made by this Act, 
shall take effect on October 1, 2012. 
Æ 
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