I 
119TH CONGRESS 
1ST SESSION H. R. 1558 
To modify the governmentwide financial management plan, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 25, 2025 
Mr. 
CONNOLLY
(for 
himself, 
Ms. 
NORTON, 
Mr. 
LYNCH, 
Mr. 
KRISHNAMOORTHI, Mr. KHANNA, Mr. MFUME, Ms. BROWN, Ms. 
STANSBURY, Mr. GARCIA of California, Mr. FROST, Ms. LEE of Pennsyl-
vania, Ms. CROCKETT, Ms. RANDALL, Mr. SUBRAMANYAM, Ms. ANSARI, 
Mr. BELL, Ms. SIMON, Mr. MIN, and Ms. TLAIB) introduced the fol-
lowing bill; which was referred to the Committee on Oversight and Gov-
ernment Reform 
A BILL 
To modify the governmentwide financial management plan, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Taxpayer Funds Over-
sight and Accountability Act’’. 
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SEC. 2. CHIEF FINANCIAL OFFICERS; GOVERNMENTWIDE 
FINANCIAL MANAGEMENT PLAN. 
(a) CHIEF FINANCIAL OFFICER AND DEPUTY CHIEF 
FINANCIAL OFFICER.—Chapter 9 of title 31, United 
States Code, is amended— 
(1) in section 902(a)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘An’’ and inserting ‘‘It shall be the 
duty and responsibility of each agency Chief Fi-
nancial Officer to oversee and provide leader-
ship in the areas of budget formulation and 
execution, planning and performance, risk man-
agement, internal controls, financial systems, 
accounting, and other areas as the Director of 
the Office of Management and Budget may des-
ignate. In carrying out the preceding sentence, 
each’’; 
(B) in paragraph (3)— 
(i) in subparagraph (C), by inserting 
‘‘areas and’’ before ‘‘systems’’; and 
(ii) in subparagraph (D)— 
(I) in clause (iii), by striking 
‘‘and’’ at the end; 
(II) in clause (iv), by striking 
‘‘performance;’’ and inserting ‘‘per-
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formance and integration of perform-
ance and cost information; and’’; and 
(III) by adding at the end the 
following: 
‘‘(v) annual agency financial state-
ments prepared in accordance with United 
States generally accepted accounting prin-
ciples;’’; 
(C) by redesignating paragraphs (5), (6), 
(7), and (8) as paragraphs (7), (8), (9), and 
(11) respectively; 
(D) by inserting after paragraph (4) the 
following: 
‘‘(5) oversee and provide leadership over the de-
sign, implementation, and operation of the internal 
controls of the agency over financial reporting and 
key financial management information identified 
under section 3512(e)(1); 
‘‘(6) prepare, in consultation with financial 
management and other appropriate experts, an 
agency plan to implement the 4-year financial man-
agement plan prepared by the Director of the Office 
of 
Management 
and 
Budget 
under 
section 
3512(a)(2) of this title and to achieve and sustain 
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Council, the Council of the Inspectors General 
on Integrity and Efficiency, the Government 
Accountability Office, and, as appropriate, other 
councils and financial management experts.’’; 
and 
(ii) in subparagraph (B)— 
(I) in the matter preceding clause 
(i), by striking ‘‘5-year’’ and inserting 
‘‘4-year’’; 
(II) in clause (iii)— 
(aa) by striking ‘‘for devel-
oping’’ and inserting ‘‘for im-
proving 
financial 
management 
systems, including— 
‘‘(I) developing’’; and 
(bb) by adding at the end 
the following: 
‘‘(II) linking performance and cost infor-
mation to facilitate effective and efficient deci-
sion making; 
‘‘(III) eliminating duplicative and unneces-
sary systems and activities; and 
‘‘(IV) identifying opportunities for agencies 
to share systems and services and encouraging 
agencies to do so where practicable;’’; 
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(III) by striking clause (iv); 
(IV) by redesignating clause (v) 
as clause (iv); 
(V) by inserting after clause (iv), 
as so redesignated, the following: 
‘‘(v) provide a strategy for reporting perform-
ance and cost information;’’; 
(VI) in clause (vi), by striking 
‘‘5-year’’ and inserting ‘‘4-year’’; 
(VII) in clause (vii), by striking 
‘‘identify’’ and inserting ‘‘provide a 
strategy for strengthening the Federal 
financial management workforce, in-
cluding identification of’’; 
(VIII) in clause (viii), by striking 
‘‘and’’ at the end; 
(IX) by redesignating clause (ix) 
as clause (x); 
(X) by inserting after clause 
(viii) the following: 
‘‘(ix) include comprehensive financial manage-
ment performance-based metrics against which the 
financial management performance of executive 
agencies can be assessed; and’’; and 
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(XI) in clause (x), as so redesig-
nated, by striking ‘‘5-year’’ and in-
serting ‘‘4-year’’; 
(E) by inserting after paragraph (2) the 
following: 
‘‘(3) A financial management status report under this 
subsection shall include— 
‘‘(A) a description and analysis of the status of 
financial management in the executive branch, in-
cluding the progress made towards implementing the 
governmentwide 4-year financial management plan, 
the status of remaining challenges, and, as necessary 
based on obligations or expenditures, any update or 
revision to the cost estimates included in the most 
recent governmentwide 4-year financial management 
plan; 
‘‘(B) a summary of the performance of agencies 
against the metrics developed and identified by the 
Director of the Office of Management and Budget in 
the governmentwide 4-year financial management 
plan; 
‘‘(C) a summary of the most recently completed 
financial statements— 
‘‘(i) of Federal agencies under section 
3515 of this title; and 
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‘‘(ii) of Government corporations; 
‘‘(D) a summary of the most recently completed 
financial statement audits and reports— 
‘‘(i) of Federal agencies under subsections 
(e) and (f) of section 3521 of this title; and 
‘‘(ii) of Government corporations; 
‘‘(E) a summary of reports on internal account-
ing and administrative control systems submitted to 
the President and Congress under subsection (d); 
‘‘(F) a listing of agencies whose financial man-
agement systems do not comply substantially with 
the requirements of section 803(a) of the Federal 
Financial Management Improvement Act of 1996 
(31 U.S.C. 3512 note), and a summary statement of 
the efforts underway to remedy the noncompliance; 
and 
‘‘(G) any other information the Director con-
siders appropriate to fully inform Congress regard-
ing the financial management of the Federal Gov-
ernment.’’; 
(F) in paragraph (4)— 
(i) in subparagraph (A)— 
(I) by striking ‘‘15 months after 
the date of the enactment of this sub-
section’’ and inserting ‘‘6 months 
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after the date of the enactment of the 
Taxpayer Funds Oversight and Ac-
countability Act’’; and 
(II) by striking ‘‘5-year’’ and in-
serting ‘‘4-year’’; 
(ii) in subparagraph (B)— 
(I) in clause (i)— 
(aa) by striking ‘‘Not later 
than January 31 of each year 
thereafter’’ and inserting ‘‘At a 
minimum, concurrently with the 
submission of the budget of the 
United States Government under 
section 1105(a) of this title made 
in the first full fiscal year fol-
lowing any year in which the 
term of the President commences 
under section 101 of title 3’’; 
(bb) by striking ‘‘financial 
management status report and a 
revised governmentwide 5-year’’ 
and inserting ‘‘governmentwide 
4-year’’; and 
(cc) by striking ‘‘5 fiscal 
years’’ 
and 
all 
that 
follows 
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through the period at the end 
and inserting ‘‘4 fiscal years.’’; 
and 
(II) in clause (ii)— 
(aa) by striking ‘‘revised 
governmentwide 5-year’’ and in-
serting ‘‘governmentwide 4-year’’; 
and 
(bb) by striking ‘‘paragraph 
(3)(B)(viii)’’ and inserting ‘‘para-
graph (2)(B)(viii)’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(C) Each year, concurrently with the submission of 
the budget of the United States Government under section 
1105(a) of this title, the Director of the Office of Manage-
ment and Budget shall submit to the appropriate commit-
tees of Congress and the Comptroller General a financial 
management status report.’’; and 
(G) by striking paragraph (5); 
(2) in subsection (d)(2)— 
(A) in subparagraph (A), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (B), by striking the 
period at the end and inserting ‘‘; and’’; and 
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(C) by adding at the end the following: 
‘‘(C) a separate report on the results of the as-
sessment and conclusion required under subsection 
(e)(2).’’; 
(3) by redesignating subsections (e), (f), and 
(g) as subsections (f), (g), and (h), respectively; and 
(4) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) The head of each executive agency shall— 
‘‘(1) in establishing the internal accounting and 
administrative controls under subsection (c), identify 
the key financial management information needed 
for effective financial management and decision 
making, which shall include— 
‘‘(A) the agency spending data required to 
be published under the Federal Funding Ac-
countability and Transparency Act of 2006 (31 
U.S.C. 6101 note); and 
‘‘(B) the information used by the agency to 
report on improper payments under section 
3352 of this title; and 
‘‘(2) annually assess and make a conclusion on 
the effectiveness of the internal controls of the exec-
utive agency over financial reporting and key finan-
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cial management information identified under para-
graph (1).’’. 
(c) AUDITS BY AGENCIES.—Section 3521 of title 31, 
United States Code, is amended— 
(1) in subsection (e)— 
(A) by striking paragraphs (1) and (2); 
(B) by striking ‘‘(e) Each financial’’ and 
inserting ‘‘(e)(1) Each financial’’; 
(C) in paragraph (1), as so designated, by 
striking ‘‘standards—’’ and inserting ‘‘stand-
ards.’’; and 
(D) by inserting after paragraph (1), as so 
designated, the following: 
‘‘(2) As part of each audit under this subsection, the 
auditor shall— 
‘‘(A) evaluate the design of the internal control 
of the agency over financial management reporting 
and key financial information, as assessed and re-
ported on by the head of the agency under section 
3512(d)(2)(C) of this title; 
‘‘(B) determine whether those controls have 
been implemented; 
‘‘(C) for controls that are properly designed and 
implemented, perform sufficient tests of those con-
trols to conclude whether the controls are operating 
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effectively, including sufficient tests to support a low 
level of assessed control risk; and 
‘‘(D) communicate controls that the auditor 
concludes are not suitably designed and implemented 
or are not operating effectively, as appropriate under 
applicable generally accepted government auditing 
standards. 
‘‘(3) Audits under this subsection shall be con-
ducted— 
‘‘(A) in the case of an agency having an Inspec-
tor General appointed under the Inspector General 
Act of 1978 (5 U.S.C. App.), by the Inspector Gen-
eral or by an independent external auditor, as deter-
mined by the Inspector General of the agency; and 
‘‘(B) in any other case, by an independent ex-
ternal auditor, as determined by the head of the 
agency.’’; and 
(2) in subsection (h), by striking ‘‘section 
3512(a)(3)(B)(viii)’’ 
and 
inserting 
‘‘section 
3512(a)(2)(B)(viii)’’. 
(d) TECHNICAL AND CONFORMING AMENDMENT.— 
Section 3348(e) of title 5, United States Code, is amend-
ed— 
(1) in paragraph (3), by adding ‘‘or’’ at the 
end; 
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(2) by striking paragraph (4); and 
(3) by redesignating paragraph (5) as para-
graph (4). 
Æ 
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